UMC seeks funds

Once the number 2 pure-play foundry in the world, UMC now lags behind TSMC, Samsung and GlobalFoundries in process technology.

The Taiwanese foundry is open to involvement from any strategic partner through private placement of 10% of its total shares or about $400 million for capacity expansion.. TI, ASML and GlobalFoundries are among the potential investors for the placement. GlobalFoundries has a major fab under construction in NY and is eager to add capacity; which can be achieved if it taps UMC. In fact, earlier in the year, it was rumored that ATIC approached UMC with a view to take a stake in it and secure additional production capacity.  A strategic partnership between the two would allow them to better compete with market leader TSMC.
 

Only the big can survive in this foundry biz. Consolidation will happen. The question is when and who will be the last few standing.

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