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United Microelectronics Corporation

United Microelectronics Corporation

United Microelectronics Corporation – Taiwan’s First Semiconductor Company.

United Microelectronics Corporation is a chipmaker based in Taiwan with around a $10 billion market capitalization. It sells CMOS wafers, memory chips, and high-voltage integrated circuits, among other things. UMC has offices in Taiwan, Japan, South Korea, China, Singapore, the United States, and Europe, with over 17,000 employees worldwide.

About United Microelectronics Corporation

The silicon foundry business was where United Microelectronics Corporation (UMC) established its niche. UMC is a leading silicon foundry, or contract semiconductor maker, trailing only archival Taiwan Semiconductor Manufacturing. Design, engineering, manufacturing, packing, sorting, and testing are among the company’s production services. It supplies complementary metal-oxide-semiconductor logic wafers, mixed-signal wafers, radiofrequency complementary metal-oxide-semiconductor wafers, embedded memory products, high voltage integrated circuits, and complementary metal-oxide-semiconductor image sensors through its semiconductor foundry. UMC has offices in Taiwan, Japan, Korea, China, Europe, the United States, and Singapore, and it continues to expand capacity and invest in sophisticated manufacturing technology. Taiwan is the company’s largest market, accounting for 33% of net sales. Singapore (24 percent), the United States (12 percent), and China are the other key markets (9 percent ).

United Microelectronics Corporation
Image source: www.taipeitimes.com

UMC is aggressively developing internationally. The corporation invested $48 million in a subsidiary of Fujitsu Semiconductor, which has a 12-inch wafer manufacturing facility in Japan. In Xiamen, UMC has formed a joint venture with the city government of Xiamen and the state-owned Fujian Electronics and Information Group to establish a semiconductor fabrication plant. Starting in 2015, UMC will invest $1.35 billion in the initiative over five years. In January 2015, the company bought a 33 percent share in Xiamen-based chipmaker United Semiconductor as part of the plan. Taiwan’s first semiconductor company, UMC, was formed in 1980. Since 2012, Yen Po-wen, who joined UMC in 1986, has served as CEO.

Manufacturing Diversification

With numerous modern 300mm fabs in operation, UMC is a foundry production leader. Since 2002, Fab 12A in Tainan, Taiwan, has been producing client products in volume and is currently producing 14 and 28nm products. Phases 1&2, 3&4, and 5&6 make up the multi-phase complex, which is essentially three independent fabs. The entire monthly production capacity of Fab 12A is currently above 87,000 wafers. Fab 12i, UMC’s second 300mm fab, is located in Pasir Ris Wafer Park in Singapore. With a monthly capacity of 50,000 wafers, this second-generation 300mm plant is also in volume production. United Semi, UMC’s third 300mm fab in Xiamen, China, began volume production in Q4 2016. When fully equipped, United Semi’s overall design capacity is 50,000 wafers per month. In October of this year, UMC bought USJC in Japan. This 300mm fab in Mie Prefecture has a monthly capacity of 33,000 wafers for logic and specialty processes down to 40nm. UMC provides reliable and diversified manufacturing with leading production efficiency, thanks to its seven 200mm fabs and one 150mm specialized fab.

John Hsuan and Robert Tsao

From 1979 to 1981, Mr. Tsao was appointed Vice Chairman of the Electronics Research & Service Organization (ERSO), where he played an important role. He was a driving force behind the establishment of the Industrial Technology Research Institute (ITRI), where he oversaw the development of Taiwan’s first integrated circuit manufacturing line, which later became the foundation for United Microelectronics Corporation (UMC), a semiconductor contract manufacturer that produced chips based on the designs of its customers.

John Hsuan, who is soft-spoken and aloof at times, has been a driving force behind UMC’s recent metamorphosis from a small Taiwanese chip producer to a major IC wafer foundry. UMC was one of the first foundries to implement a 0.25-micron process, is a pioneer in 0.18-micron technology, and aims to ship products with copper interconnects early next year. UMC is the world’s second-largest pure-play foundry, behind Taiwan Semiconductor Manufacturing Co. Ltd., with sales expected to increase from $1.3 billion in 1998 to $1.75 billion this year.

United Microelectronics Corporation

United Microelectronics Corporation – Taiwan’s First Semiconductor Company.

Taiwan is the manufacturing hub for most of the world’s biggest electronics and IT companies. Apart from providing land for manufacturing and labor for work, Taiwan has also given some big-name companies that are leaders of their respective fields. UMC, aka United Microelectronics Corporation, is one such Taiwanese company that has made its mark on the international level. In fact, it is the first semiconductor company in Taiwan.

UMC was founded in 1980, and its headquarter is based in Hsinchu Science Park Hsinchu, Taiwan. The founding of the company is a result of the spinning off of the government-sponsored organization, the Industrial Technology Research Institute (ITRI).

About United Microelectronics Corporation

As said earlier UMC is a spin-off company of a state-owned institution. The company is the first semiconductor company in Taiwan, and it is known to manufacture integrated circuit wafers for other companies which produce fabless semiconductor. Though the company is based in Taiwan, it does most of its business outside the country, TSMC and GlobalFoundries being its major competitors and the automotive industry being its major area of service. The company operates through its four different fabs (300 mm), based in Japan, Taiwan, Singapore, and China, to provide better service to its customers.

United Microelectronics Corporation
Image Source: tradingview.com

UMC incorporates the latest technologies and innovative techniques to manufacture and process IC manufacturing. Logic/Mixed-Signal, embedded High-Voltage, embedded Non-Volatile-Memory, RFSOI, and BCD, etc., are some of the techniques used by the company. The company has over 12 fab productions and produces about 800,000 wafers every month.

UMC trades as a public company and has listed on New York Stock Exchange as well as Taiwan Stock Exchange. The company employs over 19,500 people worldwide, and as per 2019 records, the company made annual revenues worth US$5 billion.

The Founding and Growth

UMC became the first Taiwanese semiconductor company when it got spun off from the state-owned ITRI. It became the pioneer of the commercial semiconductor industry for Taiwan. In 1985, UMC listed on  Taiwan Stock Exchange. The company ran on the IDM model for about fifteen years from its inception, and then in 1995, the company switched to the pure-play foundry model and started to manufacture its own products.

The next year, UMC spun off multiple design units, resulting in the formation of AMIC Technology, MediaTek, ITE Technology,  Novatek, Faraday Technology, and Davicom. In 1999, the company established its first 12A, Taiwan’s first 12-inch wafer fab in Tainan Science Park. The next year, UMC became Taiwan’s first-ever semiconductor company to list on the New York Stock Exchange. The same year, the company started to manufacture the chips using copper process technology. It also brought the first 0.13-micron ICs to the industry.

In 2024, the Singapore-based wafer fab of the UMC started mass production, and in 2008, UMC listed some of its stocks on the Dow Jones Sustainability Index (DJSI). The company also made some acquisitions like Hejian Technology Wafer Fab of China in 2013 and  Japan-based Mie Fujitsu Semiconductor in 2019. In 2015, UMC entered China by establishing a 12-inch wafer fab in Xiamen, Fujian Province, China, where the company started the 28 nm mass production in 2017.

Stan Hung: The Chairman at UMC

Stan Hung is the Chairman of the Board and Chief Strategy Officer in United Microelectronics Corporation. He joined the company in 1991 and became the chairman in 2008. Hung is a native of Taiwan. He completed his school education from a local high school and earned a bachelor’s degree in accounting from Tamkang University, Taiwan.

Other than being the chairman of UMC, Hung also holds a prime position in some prominent companies. He has been appointed as the chairman of the board in Fortune Venture Capital Corp., TLC Capital Co., Ltd., and Faraday Technology Corporation. Hung also serves Triknight Capital Corporation and UnitedDS Semiconductor (Shandong) Co., Ltd. as the director.