UMC Becomes Exclusive Supplier of Kindle Fire's Processors

Taipei, Nov. 10, 2011 (CENS)--Benefitting from the launch of Amazon's tablet PC Kindle Fire, Taiwan-based United Microelectronics Corp. (UMC), one of world's largest semiconductor foundries, has landed orders from Texas Instruments to exclusively supply ARM processors for the devices, becoming part of Amazon's supply chain.

With some 215,000 Kindle Fire tablets sold in the first week of launch, the device, ranked in the top-10 gifts for Christmas, is regarded the biggest challenger to the Apple iPad. Optimistic about its constantly growing popularity, market researchers have also raised fourth-quarter sales projections for the Kindle Fire to 5 million units.

Hot sales of Kindle Fire bodes well for UMC as the Taiwanese company is to exclusively supply Texas Instruments OMAP4430 through the 45-nano process. The OMAP4430 is a dual-core 1GHz processor based on ARM architecture, and is widely adopted in a variety of smartphones and tablet PCs, including Motorola's Droid 3 and Droid RAZR, Fujitsu-Toshiba's Arrows Z, Panasonic's Lumix and Toshiba's Regza.

UMC's business ties with Texas Instruments have increasingly grown recently, reflected in the influx of orders for the new OMAP4 series processors, contrasted against TI's erstwhile reliance on mainly Korea's Samsung Electronics for its older OMAP3 series processors.

Industry insiders indicated that UMC's capacity utilization rate at the 12-inch wafer foundry will improve significantly in the fourth quarter, thanks to TI's increasing orders.