SAN JOSE -- Alliance Semiconductor Corp. here is the latest chip company to announce a financial windfall from the merger of UMC Group with its subsidiaries.
Alliance's gain from its investment in United Silicon Inc. -- $908million pre-tax, or $532 million after-tax -- is also one of the largest. S3 Inc. reported today that it reaped $500 million after-tax from its United Semiconductor
Corp. (USC) stock (see today's story), while Xilinx, Trident Microsystems, and Lattice Semiconductor announced gains of lesser amounts on Tuesday (see Jan. 4 story).
Alliance will recognize the gain in its fiscal fourth quarter ending April 1, as well
as approximately $21 million additional gain related to the sale of the USC
shares in April 1998. As a result, the SRAM and embedded logic company will
own 283.3 million UMC shares, or approximately 3.2% of the combined UMC
Group. It will also maintain its capacity allocation rights in the former USC and USIC foundries, which amount to 25% and 3.71%, respectively.