UMC sets a budget of $2.1 billion to buy new fab equipment this year, a 186 percent increase over its 2003 budget.

UMC said it will spend $1.15 billion on its Taiwan-based fabs, $850 million on UMCi, its 12-inch wafer fab in Singapore and $120 million for UMCJ, its 8-inch wafer fab in Japan.

“By the end of 2004, we plan to triple our 300-mm manufacturing capacity to 30,000 12-inch wafers per month. Planned total capacity, including UMCi, will increase16 percent year-over-year, with over half of our total capacity capable of manufacturing chips using 0.18 micron and below technologies,” said UMC chief executive Jackson Hu, in a statement.

UMC said 50 percent of wafer sales would come from 0.18 micron and below technologies this year. Overall utilization hit 96 percent, up from 84 percent in the third quarter. Its average selling price was flat but is expected to inch up a few percentage points this quarter as utilization hits 100 percent, the company said.

By: DocMemory
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