UMC has paid $48 million for a 9.3% stake in a newly formed foundry company which is a subsidiary of Fujitsu Semiconductor including its 300mm wafer manufacturing facility located in Kuwana, Mie, Japan.
UMC’s 40nm technology will be licensed to Fujitsu.
“Partnering with a leading Japanese semiconductor company like Fujitsu Semiconductor for a local joint venture will not only offset the time, risk and cost of building a new fab, but also provide access to another 300mm manufacturing source in addition to UMC’s own 300mm operations in Taiwan and Singapore,” says UMC CEO Po Wen Yen, “with three 300mm operations in different regions throughout Asia, both parties will hold unique positions to be able to serve customers looking to mitigate manufacturing risk, such as Japan’s automotive chip makers, who vigorously seek suppliers that implement robust business continuity plans. UMC will also be able to leverage this strategic partnership to gain new foundry business within the Japanese market.”
“Fujitsu has been in search of a partner with whom to jointly operate a new foundry company based on its Mie 300mm wafer fab,” says Haruki Okada, President of Fujitsu Semiconductor, “Fujitsu Semiconductor and UMC have built up a good relationship while Fujitsu Semiconductor has outsourced its products to UMC for years. The joint venture will provide foundry services to customers, based on a wide variety of CMOS technologies, the 40nm process technology licensed by UMC and high quality manufacturing system certified by automotive customers.”
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