Dec. 15, 2000

United Microelectronics Corp. (UMC) will today announce during a press conference in Singapore to built a US$ 2 billion wafer plant in that city-state, according to advance information.

UMC, one of Taiwan's leading makers of microchips, expects the 12-inch wafter plant to start production in 2003. Analysts say, this schedule is in proper timing with industry trends from 8 to 12-inch wafers.

The UMC project will be the first 12-inch wafer project in Singapore. The project will be implemented with a foreign partner, with UMC holding the majority. At press time, the identity of this partner was not revealed.

AS UMC is the world's second largest microchip foundry behind Taiwan Semiconductor Manufacturing Co., the announcement came as a blow to Taiwan's hope to keep its leading Chipmakers on home turf.

Robert Tsao, the UMC group chairman claimed as one of the reasons that the Singapore government gives preferential treatment to the semiconductor industry. It provides an open and internationally - oriented business environment which enables companies to attract and keep talented foreign workers more easily. Also, while the Singapore government does not see the semiconductor industry as causing pollution the government of Taiwan, according to Tsao, treats the industry as a high-polluting one. He also critized the government's bureaucracy, which he sees as excessive.