United Microelectronics Corp, Taiwan’s second-largest chipmaker is joining forces with Alliance Semiconductor Corp and S3 Inc to establish another $1,000m chip foundry in Taiwan, to fabricate 25,000 very advanced 0.25 micron wafers a month. S3 gets its multimedia chips, Alliance its memories, made in foundries. United Microelectronics will have a 50% stake in the venture, Alliance and S3 each take 20% to guarantee privileged access, and Taiwanese institutional investors get the other 10%. Shareholders will put up $500m, the other $500m will be in bank loans. United Microelectronics will also get 15% of the equity, 30% of its stake, in return for core technology rather than cash.
