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September 27, 2017

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UMC, Fujitsu to work on chip production together

TAIPEI -- The board of directors of Taiwan's United Microelectronics Corp. (UMC, 聯電), the world's No. 3 contract chipmaker, on Thursday approved a plan to form a chip production joint venture with Japan's Fujitsu Semiconductor Ltd.

UMC said it will invest 50 billion Japanese yen (US$480 million) to acquire a roughly 9.3 percent stake in the new joint venture, along with a seat on the board of directors.

The Hsinchu-based company also agreed to license its 40-nanometer low power technology to Fujitsu and will receive licensing fees equivalent to the amount of its investment.

Under the joint venture, a 12-inch wafer plant in Mie Prefecture in Japan will manufacture 28,000 wafers per month for use in image sensors and automobile electronics, according to UMC.

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