UMC Expands Its Advanced Technology Complex in Tainan Science Park.

300mm Fab Will Add 50,000 Wafer Capacity; New R&D Center Nearing Completion at UMC's Southern Taiwan Site

HSINCHU, Taiwan -- UMC (NYSE:UMC) (TSE:2303), a leading global semiconductor foundry, today announced that the construction for its second 300mm fab in Taiwan is now fully underway, as part of the next step in the company's continuing expansion of its manufacturing complex in southern Taiwan's Tainan Science Park. Total investment for the fab will be approximately US$5 billion, with a maximum designed monthly production capacity of approximately 50,000 wafers. The construction begins as UMC's new R&D center for nanometer technologies, the first of its kind in the Tainan Science Park, is entering its final stages of construction for its scheduled completion in March. The two new additions will join UMC's existing 300mm Fab 12A on the company's multi-structure site.

Dr. Jackson Hu, chairman and CEO of UMC, said, "UMC remains strongly committed to continuing its growth and development in Taiwan. The Tainan Science Park Fab 12A began production in 2000 as Taiwan's first 300mm fab, while the new fab's construction begins as our new R&D headquarters is being completed. The close proximity of the R&D center to the fabs will allow for the seamless integration of advanced process technologies from the R&D phase to manufacturing, such as the company's 45nm process technology that was recently used to fabricate working SRAM chips."

The fab will feature the industry's most advanced 300mm automation and manufacturing systems to support the next generations of process technologies. Construction is expected to be complete by the end of 2007 and will be ready for equipment move-in by the first quarter of 2008. The fab and new R&D center are being constructed strategically adjacent to UMC's Fab 12A to allow for the easy transfer of engineering resources, technology, and equipment among the facilities.

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.