UMC Joins Fujitsu's New Foundry Company

Hsinchu, Taiwan and Yokohama, Kanagawa, Japan August 29, 2014 - United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC”) and Fujitsu Semiconductor Limited (“Fujitsu Semiconductor”) today announced an agreement for UMC to become a minority shareholder of a newly formed subsidiary of Fujitsu Semiconductor that will include its 300mm wafer manufacturing facility located in Kuwana, Mie, Japan (“the Company”). UMC’s advanced 40nm technology will be also licensed to Fujitsu Semiconductor. The Company will provide high quality foundry services to customers by combining Fujitsu Semiconductor’s low power process and embedded-memory technology with UMC’s foundry expertise and advanced process technology. Under the terms of the agreement, UMC will invest JPY 5 billion as an initial investment by which UMC will subscribe for approximately 9.3% of the Company’s shares.

Po Wen Yen, CEO of UMC, said, “We are continuously exploring ways to expand our operations to increase our customers’ competitiveness while also delivering maximum value to our stakeholders. Partnering with a leading Japanese semiconductor company like Fujitsu Semiconductor for a local joint venture will not only offset the time, risk and cost of building a new fab, but also provide access to another 300mm manufacturing source in addition to UMC’s own 300mm operations in Taiwan and Singapore. With three 300mm operations in different regions throughout Asia, both parties will hold unique positions to be able to serve customers looking to mitigate manufacturing risk, such as Japan’s automotive chip makers, who vigorously seek suppliers that implement robust business continuity plans (BCP). UMC will also be able to leverage this strategic partnership to gain new foundry business within the Japanese market.”

Haruki Okada, President of Fujitsu Semiconductor, said, “Fujitsu has been in search of a partner with whom to jointly operate a new foundry company based on its Mie 300mm wafer fab. I am pleased to announce that Fujitsu Semiconductor and UMC, a leading global semiconductor foundry, have entered into the joint venture agreement. Since Fujitsu Semiconductor and UMC have built up a good relationship while Fujitsu Semiconductor has outsourced its products to UMC for years, I am confident that the joint venture will succeed. The joint venture will provide excellent foundry services to customers, based on a wide variety of CMOS technologies with highly-skilled process developing and porting ability, the 40nm process technology licensed by UMC and high quality manufacturing system certified by automotive customers. I am expecting that the joint venture will be not only one of the best foundry companies in the world, but also a bridge between Taiwan and Japan.”

UMC will license its 40LP (Low Power) process technology to Fujitsu Semiconductor as an expanded process offering for the Company and contribute capital to expand the Company’s 40nm manufacturing capacity. The products currently manufactured by Fujitsu Semiconductor at Mie Fab will be manufactured and delivered by the Company to customers including Fujitsu Semiconductor.

Through this partnership, the new Japan-based joint venture will aim to expand its business globally as a pure-play foundry company by strengthening its production and development capability as well as cost competitiveness.

About UMC

UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing for applications spanning every major sector of the IC industry. UMC’s robust foundry solutions allow chip designers to leverage the company’s leading-edge processes, which include 28nm poly-SiON and gate-last High-K/Metal Gate technology, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i. Fab 12A consists of Phases 1-4 which are in production for customer products down to 28nm. Construction has been completed for Phases 5&6, with future plans for Phases 7&8. The company employs over 15,000 people worldwide and has offices in Taiwan, mainland China, Europe, Japan, Korea, Singapore, and the United States. UMC can be found on the web at http://www.umc.com.

About Fujitsu Semiconductor

Fujitsu Semiconductor Limited designs and manufactures semiconductors, providing highly reliable, optimal solutions and support to meet the varying needs of its customers. Products and services include Customized SoCs (ASICs), Foundry Service, ASSPs, and Ferroelectric RAMs (FRAMs), with wide-ranging expertise focusing on mobile, imaging, automotive and high performance applications. Fujitsu Semiconductor also drives power efficiency and environmental initiatives. Headquartered in Yokohama, it was established as a subsidiary of Fujitsu Limited on March 21, 2008. Through its global sales and development network, with sites in Japan and throughout Asia, Europe, and the Americas, Fujitsu Semiconductor offers semiconductor solutions to the global marketplace.

For more information, please see: http://jp.fujitsu.com/fsl/en/