UMC Wins Qualcomm's 28nm Node Contract

Taipei, April 20, 2012 (CENS)--United Microelectronics Corp. (UMC) has recently secured 28nm node contracts with Qualcomm, which is foraging around for available capacity of the leading-edge process given strained capacity at Taiwan Semiconductor Manufacturing Co. (TSMC).

Industry executives estimated the world's No. 1 wireless chip vendor to see revenue for fiscal third quarter, which ends on June 30, slip from a quarter earlier due to scant 28nm process supply from TSMC and insignificant growth of its sales of 40nm and 65nm chips. Tight supply of 28nm process capacity has affected Qualcomm's shipments to HTC Corp., currently Taiwan's No.1 mobile phone maker, Samsung, LG, and Nokia.

However, they felt that Qualcomm's shipments will turn strong in next fiscal quarter, which begins in July, mostly thanks to early robust demands from customers.

Qualcomm estimated tight supply of 28nm process will become relieved in Oct.-Dec. this year at the earliest and its additional investment in the foundry capacity will produce effect next year, suggesting its cooperation with UMC over 28nm process.

MediaTek, Taiwan's No.1 fabless chip company, is estimated to see better market share growth than Qualcomm thanks to its dedication to low-end and middle-range market for wireless chips.