Wafer foundry UMC (2303-TW)(UMC-US) announced today (27) that it will spendRMB 4.858 billion yuan (approximatelyNew Taiwan Dollar 21.4 billion yuan), buy back all the shares of Leadcore from the joint venture shareholders of Leadcore China in three years, making it a wholly-owned subsidiary of UMC.
Leadcore is a 12-inch factory jointly established by UMC, Xiamen Municipal Government and Fujian Electronic Information Group.RMB 4.116 billion yuan indirectly obtained all the shares of Lianxin from Xiamen Jinyuan Industrial Development Co., Ltd., and another subsidiary Hejian Yi.RMB 742 million yuan to invest in a venture capital cooperative enterprise in the electronic information industry in Fujian Province, and obtain all the shares of Leadcore.
UMC said that when it signed the contract with the investor, it was agreed that Leadcore would be included as a wholly-owned subsidiary seven years following its establishment. UMC’s repurchase will be carried out from July this year, with 60%, 20% and 20% ratios, three times in three consecutive years to complete the transaction.
Leadcore successfully turned profitable in a single quarter in the fourth quarter of last year, and made a profit in the first quarter of this yearNew Taiwan Dollar 644 million yuan, the current monthly production capacity is 27,500 pieces, and the production will be expanded to 32,000 pieces.
