Benzinga | Apr 28, 2021 06:04AM EDT

United Microelectronics Partners For Capacity Development At Tainan Science Park

* Semiconductor foundry United Microelectronics Corp (NYSE: UMC) has announced its plans to develop capacity at its 300mm Fab 12A Phase 6 (P6) in Taiwan's Tainan Science Park through a partnership with its multiple global customers.

* The customers will make a deposit to secure their long-term chip supply at P6 at pre-determined pricing to foster UMC's organic growth, accomplish long-term profitability and market relevance goals.

* The P6 expansion was scheduled for production in the second quarter of 2023, with a total investment of NT$100 billion (roughly $3.58 billion).

* UMC's total investment in the Tainan Science Park will reach NT$150 billion over the next three years, including UMC's previously announced 2021 capital expenditure (Capex) of $1.5 billion. The major chunk of the Capex was earmarked for equipment for the company's Fab 12A P5 site adjacent to the P6.

* Fab 12A is presently operating at a 90K 300mm wafers per month (wpm) capacity, with an additional 10K wpm installation at the P5 from 2021.

* The P6 project will add 27.5K more wpm production ability when fully equipped. UMC is also planning to hire an additional 1000 employees to support this and other operations.

* Price action: UMC shares traded lower by 2.40% at $10.56 in the premarket session on the last check Wednesday.