UMC Advances Its High-k/Metal-Gate Process Solution; SRAM With HK/MG Process Has Yielded, Complements Foundry's 32/28nm Technology

UMC (NYSE:UMC)(TSE:2303), a leading global semiconductor foundry, today announced a significant milestone for its high-k/metal-gate (HK/MG) technology with validation of the process through 45nm SRAM product yield. This achievement is a first key-step in demonstrating technology performance and process reliability for HK/MG technology, which will be used for UMC's next generation 32/28nm process.

"UMC is making steady progress in bringing our HK/MG process towards 32/28nm pilot production so that our customers can benefit from the performance advantages of this technology," said Mr. S.C. Chien, vice president of Advanced Technology Development at UMC. "Despite the global economic uncertainties, UMC continues to move full speed ahead with our advanced technology R&D efforts. With our recent achievement of working 28nm SRAM, coupled with this latest HK/MG process material validation, we are well positioned to offer customers a strong technology platform solution when our 32/28nm technology becomes available in 2010."

In October 2008, UMC produced the foundry industry's first 28nm SRAM chips based on its low-leakage (LL) process, which utilized advanced double-patterning immersion lithography and strained silicon technology. UMC's dual approach for its 32/28nm technology addresses different market applications. The foundry uses conventional silicon gate/silicon-oxy-nitride gate oxide technology for its LL process, which is ideal for portable applications such as mobile phone ICs, while the HK/MG stack is primarily aimed at speed-intensive products such as graphic, application processor, and high-speed communication ICs. The HK/MG option can also be customized for 32/28nm low power applications to address individual customer requirements.

Note From UMC Concerning Forward-Looking Statements

Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S. Federal Securities laws, including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks.

About UMC

UMC (NYSE: UMC, TSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing services for applications spanning every major sector of the IC industry. UMC's customer-driven foundry solutions allow chip designers to leverage the strength of the company's leading-edge processes, which include production proven 65nm, 45/40nm, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i are both in volume production for a variety of customer products. The company employs approximately 13,000 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, and the United States. UMC can be found on the web at http://www.umc.com .