UMC's 65nm Process Sees Widespread Acceptance; UMC's Design for Manufacturing (DFM) Resources Play Major Role in Facilitating Ease of Design-in for 65nm Customers.

SUNNYVALE, Calif. -- UMC (NYSE:UMC) (TSE:2303), a leading global semiconductor foundry, today reported the progress of its 65nm production ramp up. The leading-edge process is seeing strong demand and interest from a variety of customers whose products span a wide range of semiconductor applications. Two customers have already qualified their designs and are in production for various 65nm products at the foundry, with eight other customers engaged and 11 product tape-outs expected by the end of summer 2006. Designers are leveraging the foundry's established DFM solutions, most recently at 90nm (see http://www.umc.com/English/news/20060301.asp), to minimize design-in risk and uncertainty and realize the power and performance benefits offered by 65nm technology.

Patrick T. Lin, chief SoC architect, system architecture and support, said, "The widespread demand for our 65nm process illustrates that customers are eager to realize the performance advantages that this advanced process brings to their products, as well as the success of our DFM solutions in addressing design challenges at deep sub-micron technologies. DFM considerations have, in fact, existed since pre-90nm process generations, with the topic just recently gaining interest as a focal point of discussion. Over the years, UMC has been expanding its DFM solutions to address new manufacturing effects with minimum design flow intrusion, which have proven to be of particular value for designers using our 90nm process. We are pleased to extend this competitive advantage to our 65nm customers and beyond."

The DFM challenges faced by today's SoC designers can vary and are unique with every chip design. As such, instead of a single, generic DFM solution, UMC provides optimized DFM resources that customers can easily incorporate into their existing design environments. In addition to this customized approach, UMC's DFM solution includes DFM-compliant IP that embraces the intricacies of the fabrication process. The foundry also performs post-tapeout services for each customer, including OPC, LRC, dummy metal fill, slotting, and others.

UMC's robust DFM solution includes Lithography Process Check (LPC), Critical Area Analysis (CAA), Litho and Chemical Metal Polishing (CMP) variation aware extraction, Thermal impact analysis and Static Statistical Timing Analysis (SSTA), etc. To develop its comprehensive 65nm offering, UMC partnered with every major EDA vendors, and newer DFM companies that provide specialized DFM solutions.

Lin continued, "UMC's DFM package is being offered as a complete solution, as we expertly handle all key DFM considerations for our customers, allowing them instead to focus their efforts on developing their advanced 65nm SoC designs. UMC accomplishes this by providing 65nm technology files and other necessary information to EDA vendors so they may bring this capability to the designer."

UMC's 65nm process is currently ramping to volume production at its 300mm fabs in Taiwan and Singapore. UMC intends to exhibit details of its 65nm DFM offering at the Design Automation Conference, July 24-28, in booth 3339 in the North Hall at the Moscone Center in San Francisco.

Note From UMC Concerning Forward-Looking Statements

Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S. Federal Securities laws, including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks.

About UMC

UMC (NYSE:UMC) (TSE:2303) is a leading global semiconductor foundry that manufactures advanced process ICs for applications spanning every major sector of the semiconductor industry. UMC delivers cutting-edge foundry technologies that enable sophisticated system-on-chip (SoC) designs, including volume production 90nm, industry-leading 65nm, and mixed signal/RFCMOS. UMC's 10 wafer manufacturing facilities 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.