United Microelectronics Board Approved $606M in Additional Capex

United Microelectronics Corporation's UMC board of directors approved an additional capital expenditure budget of US$606 million to expand the foundry's 28nm manufacturing capacity.

United Microelectronics reported that their manufacturing capacity for 28nm processes has reached 10,000 wafers, and the company expects monthly demand to expand with customer demand. DigiTimes reporter Josephine Lien noted market watchers are commenting that the company's 28nm technology revenue is rather insignificant to overall company revenues, with technology sales accounting for 1-2% of 2013 revenue.

Lien added that United Microelectronics has been cautious about capex, with annual capex within the US$1.5-2 billion range. Taiwan Semiconductor Manufacturing Company reported 2013 capex of US$9.5-10 billion. United Microelectronics estimated its 2013 capital expenditure at US$1.5 billion.

United Microelectronics closed at $1.98 on Thursday.