United Microelectronics Corp. this week disclosed its plans to start investing into promising startups with the help of its newly created investment subsidiary. The first investments set to be made by UMC New Business Investment Corp. will be into LED and solar power technologies. The subsidiary will operate New Business Development Center.

UMC established the center to capitalize in high growth and high profit potential industries through timely strategic investment. This will bring new momentum for UMC to further grow and enhance UMC's future asset turnover and profitability, according to the company. Capital for UMC's 100% owned subsidiary is expected to reach NTD 1.5 billion (about $45 million). The company will invest based on the research and evaluation performed by UMC New Business Development Center.

Recently, major developed and developing countries have listed energy saving and carbon reduction as primary administrative policies to face the challenge of potential energy shortages in the future. Technologies for renewable energy and energy saving will become the focus for future technology development; the growth of related industries is predictable. 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.

In the future, the company will acquire absolute majority of the investees' shares and aggressively participate in the decision-making process and operation of the invested companies.

Tags: UMC, Semiconductor, Business