Taipei, Taiwan, October 19, 2006 - National Nano Device Laboratories (NDL), a research affiliate of Taiwan's National Applied Research Laboratories (NARL) and UMC (NYSE: UMC; TSE: 2303), a world leading semiconductor foundry, today announced that they have signed a collaborative agreement to cultivate researchers in Taiwan's nanotechnology field. The agreement establishes the "UMC-NDL Scholar Sponsorship Program," which will offer financial assistance to qualified young talent conducting studies in the nanotechnology field. The program will also help with the early identification and development of emerging technologies that may play prominent industry roles in the future, thus further enhancing Taiwan's competitiveness in nanotechnology and the semiconductor industry.

Jackson Hu, chairman and CEO of UMC, said, "Throughout its history, UMC has been active in the development of new talent in Taiwan's high-tech industry. This agreement with NDL will help facilitate research and development efforts that enhance Taiwan's position in the global technology sector. We are happy to collaborate with NDL for this scholarship program."

Zhe-Nan Zhuang, president of NARL, noted, "The 21st century is defined by globalization, which relies on the cultivation of talent in order to attain industrial prosperity, economic development and regional competitiveness. UMC's collaboration with NDL to support local research scholars will enhance Taiwan's technological innovation and help transform Taiwan from being a technology follower to a technology leader."

Wei-Hsin Ni, director of NDL, added, "NDL is currently working on the development platform for nanometer manufacturing and system integrating technologies to support high quality research programs for Taiwan's academic and research institutes and industries. Combining the youthful talent and creativity of researchers with NDL's excellent resources and platforms will result in a globally influential research program. This effort will also result in establishing Taiwan's basic infrastructure for emerging nanotechnology industries."

The program will focus on semiconductor and nanotechnology research areas expected to gain importance in the next 3-5 years. The agreement was signed today by Wei-Hsin Ni, director of NDL, and Dr. Jackson Hu, chairman and CEO of UMC at a signing ceremony held in Taipei, Taiwan.