UMC announces plan to establish the world's most advanced 300-mm semiconductor foundry in Singapore

Singapore, December 15, 2000 – Taiwan's United Microelectronics Corporation (NYSE: UMC) today announced plans to establish the world's most advanced 300-mm wafer foundry company in Singapore's Pasir Ris Wafer Fab Park. Infineon Technologies AG signed a memorandum of understanding, planning to take a minority stake in this company. The company will operate as a subsidiary of UMC with a planned investment for the project of US$3.6 billion. In a press conference hosted by Bob Tsao, Chairman of UMC Group, and Loh Kin Wah, President of Infineon Technologies Asia Pacific, the company announced the details of the plan to establish the independent wafer foundry. Philip Yeo, Chairman of Singapore's Economic Development Board, the country's lead government agency for economic development, was also present.

The 300-mm fab will be built in two phases, with a total planned capacity of 40,000 wafers per month. The company will focus on System-on-Chip (SOC) products utilizing advanced Worldlogic™ 0.13-um and 0.10-um copper/low k process technologies jointly developed by UMC, Infineon and IBM. Groundbreaking for the fab is scheduled for Q1 2001 with equipment move-in for the first phase (Module A) scheduled for Q3 2002.

"UMC is very excited about expanding our operations into Singapore. The local government has shown tremendous vision in its commitment to attracting world leading high technology companies, and we believe that Singapore provides a viable location for wafer foundry services. Following the success of NFI, our joint venture foundry in Japan, the establishment of this company will further diversify our manufacturing operations, enhancing our ability to serve our rapidly growing customer base," said Chairman John Hsuan of UMC.

UMC and Infineon are both pioneers in the implementation of 300-mm wafer production. Infineon was the first company to ship products from a 300-mm facility, and UMC's joint venture with Hitachi, Trecenti Technologies, was the first pure-play foundry to achieve working silicon for 300-mm wafers, and operates the world's first 300-mm production fab to manufacture functional ICs.

"Our successful development partnership with UMC is being expanded into a manufacturing alliance to produce advanced wireline and wireless communications ICs using 300-mm technology. This means that this strategic Infineon business will benefit from the significant cost advantages of 300-mm manufacturing. Teaming up with a world-class foundry like UMC will also allow for more flexible capacity utilization," commented Dr. Andreas von Zitzewitz, Chief Operating Officer of Infineon Technologies.

"This is an important milestone in Infineon's 30-year history in Singapore. This facility will complement our full-fledged sales, marketing, production, logistics, design and research activities in the Asia Pacific region. We're committed to Singapore, and are delighted to be playing a role in the development of Singapore's flourishing semiconductor industry," said Loh Kin Wah, President, Infineon Technologies Asia Pacific Pte Ltd.

The decision to locate the joint venture in Singapore demonstrates the growing importance of the country as a center for high value-added manufacturing. Singapore is home to numerous advanced wafer fabs and test and assembly facilities. This is the first announcement for a state-of-the-art 300-mm fab on the island and represents the largest investment in the history of its semiconductor industry.

"This joint venture is a very strategic project which will enhance Singapore's semiconductor industry. In line with EDB's cluster development program, we have several manpower programs in place to meet the industry's demand for skilled manpower. These programs, which tap on the potential talent pool from the universities, will be augmented by the use of foreign talent to help seize the new opportunities for growth in the industry, " said Philip Yeo, Chairman of Singapore's EDB.

About UMC​

UMC, a world leading semiconductor foundry, operates seven wafer fabs in Taiwan's Hsinchu Science Park. UMC's Japanese subsidiary, Nippon Foundry Inc., has one fab in Japan and UMC's joint venture with Hitachi, Trecenti Technologies, is readying to ramp production in its 300-mm fab in Japan. UMC has also started construction on a 300-mm facility in Taiwan's Tainan Science Park, with pilot production scheduled to start by third quarter 2001. UMC is a leader in foundry technology, with facilities ramping to reach an annual output of 2.4 million eight-inch equivalent wafers per year in 2000. UMC's joint development program with IBM and Infineon Technologies schedules introduction of the Worldlogic standard 0.13-micron technology this year. UMC serves customers around the world through sales and marketing offices located in the United States, Japan, and the Netherlands. UMC can be found on the web at http://www.umc.com

About Infineon​

Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for applications in the wired and wireless communications markets, for security systems and smartcards, for the automotive and industrial sectors, as well as memory products. With a global presence, Infineon operates in the US from San Jose, CA, in the Asia-Pacific region from Singapore and in Japan from Tokyo. In the fiscal year 2000 (ending September), the company achieved sales of Euro 7.28 billion with about 29,000 employees worldwide. Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at www.infineon.com.

Safe Harbor Statements are omitted