United Microelectronics Corporation(UMC), the world’s second largest silicon wafer foundry, at its 2nd Board of Directors meeting yesterday, approved the establishment of New Business Development Center and its 100% owned subsidiary, UMC New Business Investment Corporation.

UMC established the center to capitalize in high growth and high profit potential industries through timely strategic investment. Capital for UMC New Business Investment Corporation is expected to reach NTD 1.5 billion. The company will invest based on the research and evaluation performed by UMC New Business Development Center.

According to UMC, the utilization of solar energy has high development potential in the renewable energy sector, while LED is a focus area for energy saving. UMC's knowledge and technologies are highly applicable to the fundamentals of these two industries; hence UMC New Business Development Center will focus on these two areas by utilizing UMC's existing expertise and technologies. In the short-to-mid term, UMC plans to complete the development of related technologies and establish a preliminary scale of operations. For the long term, as key proficiencies mature and resource integration is complete, the new energy business is expected to become another UMC core business with high competitive advantages.