UMC Expands 28nm Capacity and Participates in Fujitsu’s Tripartite Cash Increase.

On the 16th, UMC, a wafer foundry, held a board of directors meeting during which it approved a capital budget execution plan totaling NT$12.571 billion. This funding is expected to be used for expanding capacity in the 28-nanometer process technology. Additionally, the board approved UMC’s participation in a cash increase by Fujitsu Semiconductor Japan, with an investment amount of approximately NT$1.359 billion. Due to inventory adjustments by customers, UMC has adopted a more conservative outlook for the fourth quarter. However, wafer input for the 28-nanometer process has already begun to rebound, and internally, UMC anticipates starting shipments in the first quarter of next year. The UMC board of directors approved a capital expenditure budget of NT$12.571 billion, which will be used to continue expanding the 28-nanometer capacity at its 12-inch fab in Southern Science Park, in preparation for next year’s new customer demands.

On the 16th, UMC, a wafer foundry, held a board of directors meeting during which it approved a capital budget execution plan totaling NT$12.571 billion. The funds are expected to be used to expand capacity for the 28-nanometer process. Additionally, the board approved UMC’s participation in a cash increase by Fujitsu Semiconductor Japan in Mie, with an investment amount of approximately NT$1.359 billion.

Due to the impact of client inventory adjustments, UMC has adopted a more conservative outlook for the fourth quarter. However, wafer starts for the 28-nanometer process have already begun to rebound, and internally, we expect shipments to start in the first quarter of next year. UMC’s board of directors has approved a capital expenditure budget of NT$12.571 billion, which will be used to continue expanding the 28-nanometer capacity at its 12-inch fab in Southern Science Park, thereby meeting the anticipated increase in customer demand next year. Currently, UMC’s monthly production capacity for the 28-nanometer process is approximately over 20,000 wafers, and we expect this capacity to expand to nearly 30,000 wafers in the first half of next year.

In addition, the board of directors of UMC has also resolved that the company will participate in the cash-injection plan for the 12-inch wafer foundry joint venture between UMC and Japan’s Fujitsu, Santri Fujitsu. With a total investment amount equivalent to approximately NT$1.359 billion, UMC will acquire 8,446,616 shares in Santri Fujitsu, thereby increasing its equity stake in the company to 15.9%.

Key words: