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2011/02/16 Taipei, Feb. 16, 2011 (CENS)--United Microelectronics Corp. (UMC) will set up a subsidiary for around NT$600 million (US$20.6 million at US$1:NT$29) to offer foundry service based on GaAs (gallium arsenide) process in anticipation of brisk demand for power amplifiers (PA) used in mobile gadgets. People familiar with the UMC plan pointed out that the company would retool its 150mm wafer fab for the production. They estimated Taiwan would emerge as the hub of GaAs-wafer foundry in light of increased outsourcing contracts from integrated device manufacturers (IDMs) for PA foundry. Global demand for PA is estimated at seven billion units throughout this year. Industry executives believe UMC`s entry into the segment would help boost the industry given its position as the world`s No.2 silicon foundry provider. The investment project is expected to inspire UMC to set up cooperation with two GaAs companies associated with it. UMC opened a factory to produce GaAs solar cells in October 2010 and its former vice chairman, John Hsuan, is a supervisor at Win Semiconductor Corp., reportedly the world`s No.1 GaAs foundry provider. (by Ken Liu)
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