Taipei, Aug. 28 (CNA) The board of directors of Taiwan's United

Microelectronics Corp. (UMC), the world's No. 3 contract chip maker, on Thursday approved a plan to form a chip production joint venture with Japan's Fujitsu Semiconductor Ltd.

UMC said it will invest 50 billion Japanese yen (US$480 million) to acquire a roughly 9.3 percent stake in the new joint venture, along with a seat on the board of directors.

The Hsinchu-based company also agreed to license its 40-nanometer low power technology to Fujitsu and will receive licensing fees equivalent to the amount of its investment.

Under the joint venture, a 12-inch wafer plant in Mie Prefecture in Japan will manufacture 28,000 wafers per month for use in image sensors and automobile electronics, according to UMC.

The company, which is paying about 500 yen per share for its stake in joint venture with Fujitsu Semiconductor, said it expects the investment to help expand its business presence in Japan.

UMC shares ended up 0.37 percent at NT$13.65 (US$0.46) Thursday in Taipei before the announcement of the joint venture.

By: DocMemory
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