UMC Board Approves 100% Acquisition of MIFS Fab from Fujitsu as Part of Global Manufacturing
Strategy
UMC board also approves plans to list its China operations on Shanghai Stock Exchange
United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC"), a leading global semiconductor foundry, today announced
that its Board of Directors has approved for the company to fully acquire Mie Fujitsu Semiconductor Limited (MIFS), a 12-inch wafer
foundry based in Mie, Japan, from Fujitsu Semiconductor Limited (Fujitsu Semiconductor). Based on the net value of MIFS on March
31, 2018, the purchase value will be no more than ¥ JPN 57.63 billion. UMC currently owns 15.9% of MIFS shares. Under the terms of
the agreement, Fujitsu Semiconductor will transfer the remaining 84.1% of its shares in MIFS to UMC, making MIFS a wholly-owned
subsidiary.
UMC’s Board of Directors also approved plans for the company to apply with the China Securities Regulatory Commission for UMC’s
mainland operations to be listed on the Shanghai Stock Exchange as an A-list offering. HeJian Technology (Suzhou) Co. will
represent UMC’s China businesses, which include HeJian’s 8” fab, United Semi and its 12” fab in Xiamen and Shandong-based UDS,
which provides IC design support services.
Jason Wang, co-president of UMC said, “UMC is experiencing high demand from mature 12" processes. With new applications in 5G,
IoT, automotive and AI requiring these technologies, we anticipate the market conditions driving this demand to remain strong. With
existing 300mm fabs in Taiwan, China and Singapore, Japan-based MIFS will help customers further diversify their manufacturing risk
with a robust production base to ensure business continuity while enhancing UMC’s worldwide service quality. We are excited that
the strong partnership between UMC and Fujitsu Semiconductor will enable us to achieve further growth and provide customers with
higher value through the acquisition of MIFS.”
Co-president Wang continued, “An A-share listing on the Shanghai Stock Exchange for our HeJian-led China subsidiaries provides
an ideal path for UMC to quickly capitalize on the rapid growth of China’s semiconductor market and facilitate long-term
development. The raised capital would be allocated towards reinvestment in UMC’s successful China operations in order to provide
customers with a complete, integrated IC manufacturing solution from chip design to manufacturing, which will help expand our
market share and further increase production scale, technical quality, and overall competitiveness.”
Listing of A-shares to provide a more diversified source of local funds improves the company’s financial structure and
strengthens the company's asset and capital positions, while allowing more capital to remain in Taiwan. As part of the listing, UMC
can also attract and retain top local talent through implementation of an Employee Stock Ownership Program (ESOP).
The revenue of HeJian constitutes about 11% of UMC’s consolidated revenue, while the number of new shares planned for issue will
also be around 11% of the total shares outstanding. UMC will remain the majority shareholder possessing approximately 87% of
HeJian’s equity, with no meaningful dilution to the rights and interests of the parent company.
Co-president Wang added, “UMC has always been committed to expanding its operating scale, strengthening customer competitiveness
and enhancing shareholder value through globally diversified manufacturing. The Board of Directors’ approval to fully acquire MIFS
from Fujitsu and publicly listing our China operations on the local stock exchange will help drive UMC’s long-term development and
achieve global synergies that will strengthen the company's manufacturing competitiveness, while maintaining our established base
in Taiwan.”
About UMC
UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry that provides advanced IC production for applications
spanning every major sector of the electronics industry. UMC’s comprehensive foundry solutions enable chip designers to leverage
the company’s sophisticated technology and manufacturing, which include world-class 28nm High-K/Metal Gate technology, 14nm FinFET
volume production, specialty process platforms specifically developed for AI, 5G and IoT applications and the automotive industry’s
highest-rated AEC-Q100 Grade-0 manufacturing capabilities for the production of ICs found in vehicles. UMC’s 11 wafer fabs are
strategically located throughout Asia and are able to produce nearly 600,000 wafers per month. The company employs over 20,000
people worldwide, with offices in Taiwan, China, Europe, Japan, Korea, Singapore, and the United States. UMC can be found on the
web at http://www.umc.com.
Note from UMC Concerning Forward-Looking Statements
Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S. Federal Securities laws,
including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions.
Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of
factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and
technological and development risks. Further information regarding these and other risks is included in UMC’s filings with the U.S.
Securities and Exchange Commission, including its registration statements and reports on Forms F-1, F-3, F-6 and 20-F and 6-K, in
each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information,
future events or otherwise, except as required under applicable law.
UMC
Richard Yu, (886) 2-2658-9168 ext. 16951
richard_yu@umc.com
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