UMC Board Approves 100% Acquisition of MIFS Fab from Fujitsu as Part of Global Manufacturing Strategy
June 29 2018 - 5:00AM
Business Wire
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20180629005183/en/
UMCRichard Yu, (886) 2-2658-9168 ext.
16951richard_yu@umc.com
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