The capital expenditure budget for 2009 increased to US$500 million. 82% of the budget is for expansion of 45/40nm and 65/55nm production capacity and to acquire the most advanced R&D equipment. As UMC's 1H09 CAPEX totaled US$86 million, most of the 2009 budget will be consumed in 2H09.
Recent Developments / Announcements Jul. 06, 2009 UMC's 2008 Corporate Social Responsibility (CSR) Report Verified by DNV Jun. 15, 2009 UMC Announces Retirement of Mr. Tony Yu as President of UMC-USA Office Jun. 10, 2009 UMC Shareholders Approve the Acquisition of He Jian Technology (Suzhou) Co., Ltd. and Elect 11th term of Directors at Annual Shareholders Meeting - Shareholders approved UMC's acquisition of the holding company of He Jian Technology (Suzhou) Co., Ltd. The completion of the acquisition is subject to approval from government authorities. The shareholders also approved the new share issuance for the merger with the holding companies of He Jian. - Four independent directors and one outside director were elected during the meeting for the Company's 11th term of Directors. Since the number of independent and outside directors will account for more than half of the 9 board seats, this action will significantly help to increase operating transparency as well as maintain the interaction and balance between the board and the management team. At the meeting, shareholders also approved: - The 2008 Business Report and Financial Statements. The Company's revenue for 2008 was NT$92.53 billion and net loss was NT$22.32 billion. - An appropriation of NT$26,748,416,346 to offset accumulated deficit at the end of 2008, which includes NT$19,711,864,516 from legal reserve and NT$7,036,551,830 from additional paid-in capital - Premium. May 08, 2009 UMC Files Form 20-F for 2008 with US Securities and Exchange Commission Apr. 29, 2009 UMC Board of Directors Important Announcement - Board approved to propose the acquisition by UMC of the holding company of He Jian Technology (Suzhou) Co., Ltd. for resolution at the annual shareholders meeting. Apr. 29, 2009 UMC 1Q 2009 Financial Results
Please visit UMC's website http://www.umc.com/english/news/index.asp for further details regarding the above announcements.
Third Quarter of 2009 Outlook & Guidance Quarter-over-quarter Guidance: -- Wafer shipments: to increase by approximately 8-10% -- Wafer ASP in US$: to rise by approximately 5% -- Capacity Utilization Rates: approximately 85% -- Profitability: modest increase from previous quarter -- The computer segment is expected to be the strongest, followed by the consumer and communication segments -- 2009 capex budget: US$500 million Conference Call / Webcast Announcement Wednesday, July 29, 2009 Time: 8:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM (London) Dial-in numbers and Access Codes: USA Toll Free: 1866 519 4004 UK Toll Free: 0808 234 6646 Singapore and Other Areas: +65 6735 7955 Access Code: UMC
A live webcast and replay of the 2Q09 results announcement will be available at http://www.umc.com under the "Investor Relations \ Investor Events" section.
UMC (NYSE: UMC) (TSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing services for applications spanning every major sector of the IC industry. UMC's customer-driven foundry solutions allow chip designers to leverage the strength of the company's leading-edge processes, which include production proven 65nm, 45/40nm, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i are both in volume production for a variety of customer products. The company employs approximately 12,000 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, and the United States. UMC can be found on the web at http://www.umc.com .
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This release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by use of words such as "strategy," "expects," "continues," "plans," "anticipates," "believes," "will," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts.
These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international global business activities; (iv) our dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. 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 on Form F-1, F-3, F-6 and 20-F, 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.