Acer Semi to merge with TSMC?

Speculation is mounting that chip maker Acer Semiconductor and Taiwan Semiconductor Manufacturing Company (TSMC) -- the island's largest foundry -- are to merge. Back in June, TSMC revealed it would take a 30 per cent stake in Acer Semi, and now a full-blown merger is thought to be on the cards. Wire services have picked up on statements made by TSMC's chairman, Morris Chang, in the Taiwan-based Economic Daily News. Asked to comment on the likelihood of a merger between Vanguard and Powerchip, Chang said: "Mergers are a possibility. I'm not planning to do so, but I'm taking it one step at a time." Such speculation must be music to the ears of Acer chairman Stan Shih, who has expressed his desire to rid the Acer Group of its loss making chip division. Shih took over responsibility for running the chip division in late 1998 after it was identified as a black hole in the group's finances. ® Related Stories Acer attempting to sell semi division Acer-TSMC deal draws closer