Semiconductor maker seeks partner

 Semiconductor Manufacturing Equipment Semiconductor Manufacturing International Corp. Chief Executive Officer Richard Chang said China's biggest chipmaker is talking to as many as fourinvestors about a partnership. The unprofitable company prefers to sell a stake to a strategicpartner such as a customer, rather than a financial institution,Chang said. Semiconductor Manufacturing said in March it was in``advanced'' talks with an unidentified investor after receivingproposals from private equity firms last year. ``When this deal was very close, a few others came in,'' Chang, 60,said in an interview at his headquarters in Shanghai on June 2.``We are very cautious and carefully evaluating all thepossibilities so this is why it takes a long time.'' Chang declined to identify the companies SemiconductorManufacturing is talking with or say when he expects to reach anagreement. Separately, the company is considering raising prices of some chipsto reflect higher costs and a weaker dollar, Theresa Tang, head offinance and investor relations said. Taiwan Semiconductor said lastmonth it may raise prices because of higher costs. Delaying the sale may hinder Semiconductor Manufacturing's abilityto invest in new equipment and technology to compete against Taiwan Semiconductor Manufacturing Co. , according to UBS AG analyst William Dong . Before today, the company's shares had plunged 51 percent in thepast year after a glut of computer memory chips forced price cutsand four quarters of losses. The stock rose 3.9 percent to 54 H.K. cents at 10:34 a.m. in HongKong trading today. 

2008-06-05 16:35:13