Pure-play foundry United Microelectronics (UMC) will be stepping up its efforts to enhance operating profitability, according to company CFO Chi Tung Liu.

UMC's shareholders have approved the company's plans to have subsidiary Hejian Technology (Suzhou) apply for listing on the Shanghai Stock Exchange (SSE). An application will be submitted to China's authorities as soon as possible, UMC said.

UMC expects to raise new capital through Hejian's A-shares IPO on the SSE, said Liu, adding that the funds raised will be used to enhance and optimize UMC's existing fabrication lines as well as to purchase new equipment and head hunt R&D talent.

Having Hejian debut A-shares on the Shanghai stock market will also help UMC attract diverse capital resources, Liu indicated. UMC will be strengthening further its capital structure, and is committed to pursuing a path that is in the best interests of all its shareholders, Liu said.

Hejian plans to issue up to 400 million new shares after being listed on the SSE. UMC will see its stake in Hejian slide to 87% from 98%, but still remain a controlling shareholder, Liu disclosed.

UMC has in recent years been improving its profitability, company chairman Stan Hung also noted at the recent shareholders meeting. UMC has put less focus on joining TSMC and others in the advanced-node chip race, but has moved to enhance its existing process portfolios particularly specialty process technologies.

By: DocMemory
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