Alexa
  • Directory of Taiwan

UMC announces capital reduction of NT$57.39 billion

UMC announces capital reduction of NT$57.39 billion

UMC, one of the world's leading semiconductor foundries, recently announced that it will carry out a capital reduction of more than NT$57.39 billion with the cancellation of nearly 5.74 billion of its outstanding shares, following a resolution passed at a meeting of the Board of Directors.
Shareholders will receive approximately NT$3 for each of their shares held, UMC said in a news release.
Upon completion of the capital reduction, the outstanding capital of the company will be approximately NT$133.92 billion with the exact exchange ratio for shares and the amount of the capital reduction to be set on the record date for capital reduction.
Established in 1980, UMC is entering its 27th year of operations and the company has entered a stage of sustained growth, the company said.
"Going forward, cash flow will significantly increase as the company's six eight-inch fabs approach full depreciation. After careful calculation, the company has determined that cash flows generated from UMC's future operations will be sufficient for the research and development of advanced process technologies and the continued expansion of advanced manufacturing capacity, including the second 300mm fab in Taiwan's Tainan Science Park which is estimated to cost US$5 billion," UMC said.
"In order to avoid future cash levels becoming excessive and to better respond to the expectations of today's capital markets, the company has resolved to carry out this capital reduction and return cash to its investors."
According to UMC, this action is expected to make a positive contribution to shareholders' equity through the improvement of the company's capital structure. UMC will continue to pursue the maximum benefits for its shareholders, employees, and the many participants in the global and domestic semiconductor industry.
The board also announced that the company's shareholders' meeting will be held on June 11 at the UMC Recreation Center in Hsinchu Science Park. The period for suspension of share transfer is from April 13 to June 11, in accordance with government regulations.