UMC to slash its spending

OTHER PURSUITS:UMC is to refocus on technology for the Internet of Things and emerging memory chips, which do not require advanced technologies

Taipei Times
Date: Jul 27, 2017
By: Lisa Wang / Staff reporter

United Microelectronics Corp (UMC, 聯電), the world’s No. 2 contract chipmaker, yesterday axed this year’s capital spending by 15 percent as it is taking a more realistic approach to boost equity returns rather than splurging on the most advanced technologies.

UMC plans to spend US$1.7 billion on new equipment this year, down from its earlier estimate of US$2 billion.

Although the chipmaker said the reduction would apply to all nodes, it is seen as an early indicator that the firm is abandoning its long-term pursuit of making ever smaller and advanced chips.

The strategy adjustment was announced by the company’s new copresident Jason Wang (王石) during his first appearance on the chipmaker’s quarterly investors’ teleconference yesterday.    [FULL  STORY]

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