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Friday, March 31, 2023

United Microelectronics (NYSE: UMC) Join Hands with Customers for Capacity Expansion

United Microelectronics Corporation (NYSE: UMC) disclosed Wednesday that it has partnered with several of its leading global consumers to extend capacity at its 300mm Fab 12A Phase 6 (P6) in Taiwan’s Tainan Science Park. As per the agreement, these consumers will make a deposit that assures their long-term chip supply at P6 using pre-decided pricing that will allow UMC to expand naturally and fulfill its target of long-term profitability and market significance.

Furthermore, the P6 growth is planned for manufacturing in the Q2 of 2023, with total financing for the project allocated at NT$100 billion. Additionally, UMC has earlier disclosed 2021 CAPEX of US$1.5 billion, the vast majority of which is earmarked towards equipment for the firm’s Fab 12A P5 site adjoining to P6, total UMC investment in the Tainan Science Park will achieve nearly NT$150 billion over the next three years.

Shares of United Microelectronics went down 3.31% as it lost -0.37 during the trading session of Tuesday. Looking at its profitability, it has Return on Assets, Equity, and Investment of 7.90%, 13.30%, and 7.00%, respectively. Focusing on its liquidity, it has a current ratio and quick ratio of 2.10 and 1.80, respectively. UMC has a total market capitalization of $24.69 billion at the time of writing.

This P6 collaboration model is intended to serve as a strategic collaboration with its clients that seeks to ensure mutual dedication and healthy collective expansion for all firms participating. UMC has worked in the Tainan Science Park since November 1999, when Fab 12A was founded as Taiwan’s first 300mm fab.

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