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Technology Stocks : S3 (Multimedia semi's place 2be)
SIII 0.00010000.0%May 12 5:00 PM EST

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To: Norrin Radd who wrote (7788)2/10/1997 2:42:00 PM
From: nan-xiang chen   of 9477
 
Monday February 10 12:55 PM EDT

UMC begins volume production at 0.35 micron

SUNNYVALE, Calif.--(BUSINESS WIRE)--Feb. 10, 1997--

UMC One of a Select Few Foundries Offering Advanced Technology

United Semiconductor Corp. (USC), a joint venture between United Microelectronics Corp. (UMC), Alliance Semiconductor Corp and
S3 Inc , is one of a select number of foundries operating at 0.35 micron.

UMC was one of the first dedicated foundries to the market with 0.35 micron and by the third quarter of 1997 it plans to be the first
dedicated foundry to offer 0.25 micron to its customers.

The partnership between UMC, Alliance and S3 is part of a growing trend between foundries and fabless companies, whereby
fabless companies contribute financially to ensure a percentage of capacity.

These types of business arrangements have become common in the fabless segment in order to ensure that companies have
leading-edge technology in the quantity they need to remain competitive and grow in the double-digits.

By partnering with the very customers it serves, UMC is fulfilling its goal of making the customer part of the company. As was
announced in October 1996, UMC is spinning off its standard product divisions in order to concentrate its efforts on becoming a
dedicated foundry.

"Our goal is to ensure that our customers' innovative designs are matched with the best process technology the industry has to
offer," said John Hsuan, UMC's president. "That will in turn mean a competitive and successful customer, and one that will return
again and again to UMC."

Since beginning production at 2,000 wafers per month in May 1996, USC has increased production to 17,000 wafers per month with
volume expected to increase to 30,000 wafers by the end of 1997.

"Our goal as a company is to access leading-edge technology without the burden of exclusively owning and operating a
leading-edge facility," said Dan Reddy, president and CEO, Alliance Semiconductor.

"With this arrangement we have access to 0.35 micron technology and in the future we will be one of the first companies to have
access to wafers produced at 0.25 micron."

Dedicated to ensuring its customers high levels of quality and reliability, USC has a class 0.1 cleanroom that occupies 56,000 square
feet. UMC is implementing the most advanced computer operation and automation possible in its fab to guarantee yields and fast
time-to-market.

For example, through the use of automatic track rails and automatic guided vehicles (AGV), contamination and human error is
minimized when moving in-process products through the production process.

Providing its customers with unparalleled levels of quality and reliability is one of the key elements of USC's foundry services. Other
services offered at this full-service foundry include mask tooling, circuit probe, assembly, final test and packaging and shipment.

"By partnering with UMC, S3 has access to a leading-edge manufacturing facility that offers high-performance processes at low
cost," said Paul Franklin, senior vice president of operations at S3.

"This fab has come on-line in record time, enabling S3 to meet the increased demand for its high-performance multimedia
accelerators. We look forward to our continued partnership with UMC, and are confident in moving into the next generation of
submicron technology in this world-class wafer fabrication facility."

With UMC's number of manufacturing facilities growing, the company is able to serve as a multiple supplier for companies.
Companies that split their orders between two or more facilities as a safety measure can find assurance in the fact that they will
receive the same level of service at all UMC fabs and its joint venture fabs.

Based in Hsinchu City, Taiwan, UMC is Taiwan's first private sector manufacturer of integrated circuits. UMC operates two wafer
fabs in the Science-Based Industrial Park in Hsinchu, Taiwan.

Its newest 8-inch fab, Fab III, produces 20,000 wafers per month. Currently producing at 0.35 micron, Fab III will utilize 0.25 micron
when fully ramped. United Integrated Circuits Corp. (UICC), another UMC joint venture fab, will enter the market at 0.35 micron in
April 1997.
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