Infineon and UMC Announce Manufacturing Agreement for Automotive Applications

Companies will jointly bring Infineon’s Smart Power Technology to UMC’s 300mm manufacturing

Joint press release of Infineon Technologies and United Microelectronics Corporation

Munich, Germany and Hsinchu, Taiwan – December 15, 2014 – The semiconductor manufacturer Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) and United Microelectronics Corporation (NYSE: UMC; TSE: 2303), a leading global semiconductor foundry, today announced the extension of their manufacturing partnership into power semiconductors for automotive applications. Prior to this expanded partnership, the foundry had been producing Infineon’s logic chips for more than 15 years. Based on the recently signed agreement, both companies will jointly transfer Infineon’s automotive-qualified Smart Power Technology (SPT9) to UMC and extend its production to 300mm wafers. Production start of SPT9 products at UMC’s 300mm Fab in Taiwan is planned for early 2018.

SPT9 is a proprietary 130-nanometer (nm) process technology of Infineon that combines microcontroller intelligence and power technology on a single die.

“We are proud to announce this milestone in our partnership with Infineon to bring SPT9 into UMC’s technology roadmap,” said Po-Wen Yen, CEO of UMC. “Automotive applications are a key priority for our technology, capacity and customers, and we are pleased to extend our collaboration with Infineon into state-of-the-art power semiconductors for automotive applications. With our strong manufacturing excellence, UMC is capable of meeting the highest-rated Grade 0 automotive industry quality standards. We are fully committed to the stringent quality requirements of the automotive industry to meet the market requirements for automotive IC suppliers such as Infineon.”

“We trust in UMC to master the demanding automotive obligations of Infineon as an innovative and reliable source providing long-term and stable supply,”says Jochen Hanebeck, President Automotive division at Infineon Technologies AG. “We are a technology leader in automotive power applications with strong system expertise. With SPT9, Infineon enables power semiconductors of an unmatched level of integration.”

SPT9 ’ s highly integrated system solutions approach for automotive electronics

In order to satisfy the demands of  automotive applications for more functionality and safety as well as compact and cost-optimized solutions, an increasing amount of digital logic is required in power semiconductors. In 2009, Infineon was the world’s first semiconductor manufacturer to offer an automotive-qualified embedded power technology in 130nm technology node that combines complex digital logic circuits, sensor interfaces and power electronics. Combining building blocks that are actually manufactured in three different production process technologies enables  semiconductor devices that are highly integrated and take over many tasks of other system components. Since fewer components are required in the application, the vulnerability of automotive control systems to faults is reduced. With SPT9, even semiconductors offering massive functionality are very small in size. SPT9 applications are varied, ranging from intelligent control for small electric motors in vehicles, such as used for power window lifts, wipers, sun roofs, power seats and fan/blower control, oil and water pumps, to airbags, and audio amplifiers.

Market Positioning

UMC is a world leading semiconductor foundry, with annual revenues exceeding US-Dollar 4 billion. In the 2013 global automotive semiconductor market, worth US-Dollar 25.1 billion, Infineon is ranked number two with a 9.6 percent market share.

About UMC

UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing for applications spanning every major sector of the IC industry. UMC’s robust foundry solutions allow chip designers to leverage the company’s leading-edge processes, which include 28nm poly-SiON and gate-last High-K/Metal Gate technology, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i. Fab 12A consists of Phases 1-4 which are in production for customer products down to 28nm. Construction has been completed for Phases 5&6, with future plans for Phases 7&8. The company employs over 15,000 people worldwide and has offices in Taiwan, mainland China, Europe, Japan, Korea, Singapore, and the United States. UMC can be found on the web at www.umc.com.

Note from UMC Concerning Forward-Looking Statements

Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S. Federal Securities laws, including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks. Further information regarding these and other risks is included in UMC’s filings with the U.S. Securities and Exchange Commission, including its registration statements and reports on Forms F-1, F-3, F-6 and 20-F and 6-K, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: Energy efficiency, mobility, and security. In the 2014 fiscal year (ending September 30), the company reported sales of Euro 4.3 billion with close to 29,800 employees worldwide. Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY). Further information is available at www.infineon.com