UMC Sets NT$4 Billion Convertible Bond Auction for Aug. 19
United Microelectronics Corp. is sharpening its focus on specialty processes and a more diversified manufacturing portfolio as demand from artificial intelligence and high-performance computing reshapes the chip industry. Silicon photonics, which uses light to move data faster and with lower power consumption, is emerging as a key technology for data centers. The fundraising gives UMC additional financial flexibility as it seeks a larger role in that supply chain.
Grand Fortune Securities is arranging an auction for NT$4 billion ($123 million) of unsecured convertible bonds issued by UMC, with bidding scheduled to begin on Aug. 19. The Taiwanese chipmaker has delivered its first batch of 12-inch silicon photonics wafers, marking a concrete step in its expansion beyond conventional mature-node production. UMC is also deepening its specialty-process capabilities to capture growing AI and high-performance computing demand.
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The history behind this eventUMC Targets $1 Billion in AI Revenue as Silicon Photonics Shipments Begin
United Microelectronics Corp. is expanding beyond its core mature-node foundry business into the artificial-intelligence infrastructure supply chain. Silicon photonics, which enables faster and more energy-efficient data transmission in data centers, and AI power-management chips could give UMC new growth engines while reducing its exposure to cyclical demand for consumer electronics.
UMC said alongside its second-quarter earnings that it had delivered its first batch of 12-inch silicon photonics chips to customers, marking a key step toward commercial-scale production. The company expects revenue from silicon photonics, AI power-management ICs and related products to reach as much as $300 million this year, with total AI-related sales projected to exceed $1 billion within three years.
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