GlobalFoundries, ASML linked to UMC fund raising
United Microelectronics Corporation (UMC) has revealed plans to raise new capital through a private placement with an aim to bring in a strategic partner. Market watchers have singled out Globalfoundries as a possible target. UMC’s board of directors earlier approved plans to issue up to 1.298 billion new shares at a unit value of NT$10 through private placement, which is subject to approval by its shareholders.
Market watchers speculate UMC is targeting Globalfoundries with the private placement. A strategic partnership between the two would allow them to better compete with market leader Taiwan Semiconductor Manufacturing Company (TSMC), the observers said. Earlier in 2010, market rumors circulated that UMC had being targeted by Advanced Technology Investment Company (ATIC), a major shareholder of Globalfoundries. The Taiwan foundry declined to comment on the speculation. A Chinese-language Economic Daily News (EDN) report has cited unnamed sources indicating Texas Instruments (TI), ASML and Globalfoundries are among potential investors for UMC’s private placement. In addition, Liu said UMC’s preparation for an application to take over a major stake in China-based Hejian Technology has entered the final stage. The application will soon be submitted to Taiwan’s Ministry of Economic Affairs (MOEA).
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