To: Peter H. Mack who wrote (8861 ) 10/30/2000 12:06:06 PM From: DJBEINO Read Replies (1) | Respond to of 9582 UMC building 12-inch wafer plants in Tainan science park Taipei, Oct. 29, 2000 (CENS)--United Microelectronics Corp. (UMC), the second largest domestic provider of wafer foundry services, is constructing two 12-inch wafer plants in the Tainan Science-based Industrial Park (TSBIP) located in Tainan County, southern Taiwan. The two 12-inch wafer plants under construction are the No. 12A and the No. 12B. UMC held a ceremony to put on the main beam of the No. 12A and lay the foundation of the No. 12B on Oct. 27. Based on local custom, putting on the main beam of a building signifies the key step of completing the structure of the building. The UMC and Hitachi have established a joint venture 12-inch wafer plant, Trecenti, in Japan, with trial run to begin soon and commercial production scheduled for next quarter. The No. 12A is UMC's first 12-inch wafer plant in Taiwan. UMC plans to operate the No. 12A in two phases, with monthly capacity of 20,000 12-inch wafers for each. The No. 12A in the first phase is scheduled for trial production in the third quarter and commercial production in the fourth quarter of 2001, reaching monthly capacity of 10,000 12-inch wafers at the end of this year and of 20,000 wafers in 2002. Since UMC will introduce technological experience from Trecenti, the actual schedule of operating the No. 12A will depend on the operation of Trecenti. In addition to the Nos. 12A and 12B, UMC has planned setting up three more 12-inch wafer plants in the TSBIP. The company is well poised to construct the three plants, depending on market conditions of wafer foundry services. For the wafer foundry at the No. 12A, the UMC will use 0.18-micron CMOS (complementary metal oxide semiconductor) manufacturing process initially, and gradually replace it with 0.13-micron technology and then 0.10-micron technology eventually. Logic IC (integrated circuit) will be the main product line of the plant. As the output and price of wafers this quarter is expected to rise from last quarter, UMC hiked its 2000 projected revenue to NT$105.507 billion, gross operating profit to NT$53.151 billion, net operating profit to NT$43.16 billion, pretax profit to NT$49.795 billion, after-tax profit to NT$50.029 billion, and net earnings per share to NT$4.5.