UMC pays US$4 M. for stake in South Korea's Silicon7

Taipei, March 28, 2003 (CENS)--United Microelectronics Corp., the world's second largest dedicated chip foundry, said yesterday it paid US$4 million for a stake in South Korea's memory chip designer Silicon7 Inc.

According to a statement filed by UMC to the Taiwan Stock Exchange, an investment unit of the firm paid US$3.33 a share for 1.20 million preferred shares of Silicon7.

UMC said it had inked a strategic alliance agreement with Silicon7, in which UMC's Vice Chairman John Hsuan will take a seat on the board of the South Korea's chip designer.

Under the agreement, UMC will manufacture chips developed by Silicon7, whose chips are used in mobile phones.

The partnership is a continuation of UMC's new strategy to develop closer ties with firms that use its chip foundry services.

Earlier this year, UMC established a strategic partnership with Silicon Integrated Systems Corp., a leading maker of computer chipset in Taiwan, after it bought around 15% of SiS' shares.