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UMC Board of Directors Announces
Proposals for its
Annual Shareholders Meeting
Taipei, Taiwan, R.O.C. - March 12, 2004 - United
Microelectronics Corporation (TAIEX: 2303, NYSE: UMC), today held
a meeting of the Board of Directors and Supervisors, at which the
Board submitted proposals to be resolved at the Annual General Meeting
(AGM), approved the 2003 Business Report and Financial Statements,
and set the date for the AGM. A brief summary of the proposals to
be submitted at the AGM is as follows:
- Stock dividend payment of NT$ 0.75 per common share
- Issuance of employee bonus of 111,127,354 common shares
- Reduction of the number of board directors from twelve to nine,
with three of these board seats being held by elected independent
directors
UMC's Board of Directors will propose at the Annual
General Meeting to issue a stock dividend of 75 common shares for
every 1000 common shares held by shareholders. It also proposes
to issue 111,127,354 new shares to distribute as employee bonuses,
as part of its competitive compensation program aimed at attracting
and retaining the world’s best talent. UMC’s ability to
attract the best people in the semiconductor industry has been a
key factor in its success as a world-leading wafer foundry. The
estimated stock dilution effect of the employee bonus issuance is
about 0.62%.
As part of UMC's ongoing effort to enhance corporate
governance, UMC's Board of Directors plans to set up an audit committee.
The company also proposes to reduce the number of board directors
from twelve to nine, and plans to invite three independent directors
to sit on the restructured board. The election of independent board
members is a further step in UMC’s endeavor to meet or surpass
the highest benchmarks for corporate governance.
At the board meeting, UMC's Board of Directors approved
the 2003 Business Report and Financial Statements. The Company's
revenue for 2003 was NT$84,862 million, with an after tax income
of NT$14,020 million, or NT$0.92 per share.
Finally, the date for the 2004 Annual General Meeting
was set for Monday, June 1, 2004 at 9:00 AM.
About UMC
UMC (NYSE: UMC, TSE: 2303) is a leading global semiconductor foundry
that manufactures advanced process ICs for applications spanning
every major sector of the semiconductor industry. UMC delivers cutting-edge
foundry technologies that enable sophisticated system-on-chip (SOC)
designs, including 90nm copper, 0.13um copper, embedded DRAM, and
mixed signal/RFCMOS. UMC is also a leader in 300mm manufacturing;
Fab 12A in Taiwan is currently in volume production for a variety
of customer products, while Singapore-based UMCi has just entered
volume production. UMC employs over 8,500 people worldwide and has
offices in Taiwan, Japan, Singapore, Europe, and the United States.
UMC can be found on the web at http://www.umc.com
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