Taipei, April 10, 2008 (CENS)--United Microelectronics Corp. recently integrated four of its IC design affiliates-ITE Tech Inc., Afa Technologies Inc., Chip Advanced Technology Inc., and Smedia Technology Corp.-into one, a move viewed as the foundry`s attempt to outdo MediaTek Inc. in terms of integrated strength.

MediaTek is Taiwan`s No.1 design house by revenue and No.1 supplier of digital-TV chips. ITE is another UMC-held design house that is trying to move in on MediaTek`s turf.

To make its affiliate competitive in the combat, UMC decided to integrate the four affiliates` resources. Baseline date for the consolidation is set on January 1, 2009. The integration will see ITE become the only surviving company, whose paid-in capitalization will increase to NT$1.89 billion (US$63 million at US$1:NT$30) and whose annual revenue will likely surge at least 50%.

ITE was opened 12 years ago and made NT$4.8 after tax per share last year alone. The company recently diversified into digital-TV chip segment from computer-chip design.

Afa has recently branched out into TV-demodulator design after long involvement in Flash control ICs. Chip Advanced has been dedicated to power-management ICs while Smedia has specializing in video chips.

ITE executives pointed out these companies will integrate their specializations to focus on digital-TV chips. Industry watchers noted the combination represents UMC`s third bid to take on MediaTek in chip-design sector after its Silicon Integrated System (SiS) and Novatek Microelectronics shifted profession to TV chips from computer chips and mobile-phone chips.

The four-in-one combination is said to be UMC`s biggest case of this kind in recent years.

(by Ken Liu)