Fri, Jul 16, 2010 - Page 12 News List

UMC to purchase equipment from TI

By Lisa Wang  /  STAFF REPORTER

United Microelectronics Corp (UMC, 聯電), the world’s second-largest contract chipmaker, yesterday said it planned to buy a batch of advanced equipment from customer Texas Instruments Inc (TI) for NT$1.29 billion (US$40.1 million) in order to boost production capacity to meet customer demand.

UMC said customer demand has greatly exceeded what it could supply on the back of faster-than-expected recovery in the global economy, which has led to rising electronics spending from consumers and corporations.

UMC chief executive Sun Shih-wei (孫世偉) said in a press release that the company would obtain the leading-edge 300mm fab equipment at a lower cost and with faster delivery times, compared with placing orders for new equipment, thanks to its strong relationship with TI.

“These significant advantages will help us better address our customers’ advanced production needs as demand for our foundry services continues to be strong,” Sun said.

“UMC is an important foundry partner to us and we are pleased that we can support them and work closely with them in adding new capacity for customers,” TI senior vice president Kevin Ritchie said in the joint statement.

UMC chief financial executive Liu Chi-tung (劉啓東) said by telephone yesterday the company would make no changes on its new equipment spending, which is between US$1.2 billion and US$1.5 billion this year.

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