SANTA CLARA, Calif. and HSINCHU, Taiwan, November 27, 2006 - Clear Shape Technologies, Inc., a leader in variability-aware analysis and optimization solutions, and UMC (NYSE: UMC; TSE: 2303), a leading global semiconductor foundry, announced today that their 18 month DFM collaboration efforts have resulted in the availability of DFM-aware IC design flows. The relationship has been focused on enabling designers to quickly and accurately control and optimize the impact of systematic variations on design parameters and yield.

The DFM-driven nanometer IC design flow enables designers to perform yield and parametric hotspot detection and repair by utilizing Clear Shape's flagship product InShapeTM, a fast full-chip design manufacturability checker, and OutPerform^TM, a fast full-chip parametric variation analysis and optimization tool. These tools, combined with certified UMC technology files with encrypted DFM data, will result in a fast, accurate, model-based analysis and optimization approach.

"Clear Shape's InShape design manufacturability checker, along with its OutPerform electrical DFM analysis and optimization product, are welcome additions to our comprehensive DFM yield optimization offerings that now target 65nm designs," said Patrick Lin, Chief SoC Architect, system & architecture support at UMC. "We are collaborating with best-in-class DFM providers to deliver standard-cell libraries, SPICE models and design flows to provide users with yield-enhancing knowledge throughout the design and manufacturing stages."

UMC's initial collaboration with Clear Shape has demonstrated very accurate results -that are fast enough to be used during place and route. These solutions are slated to be available to UMC's customers later this year.

"Clear Shape and UMC have been working closely together to address the uncertainties introduced by systematic variability on IC design," said Atul Sharan, President and CEO of Clear Shape. "It is our privilege to work with UMC to develop a closed-loop electrical DFM solution where fabless semiconductor companies can predict and address potential parametric and yield issues through access to UMC's manufacturing information in a fast, accurate model-based format."

InShape^TM is the first model-based full-chip Design Manufacturability Checker which allows designers to improve yield during physical design implementation by quickly and accurately accounting for systematic manufacturing variations. InShape provides designers with DFM hotspot detection and enables repair based on fast, silicon-accurate contour shape prediction across the process window.

OutPerform^TM is the first electrical DFM analysis and optimization product to control and optimize the impact of systematic variability on designers' chip parameters using fab manufacturing data, capturing the effects of RET, OPC, CMP, mask, etch and lithography on both device and interconnect. OutPerform takes in designers' physical design and timing data, along with encrypted fab technology files and critical dimension (CD) data from silicon contour shapes predicted by InShape across the process window, and automatically produces a DFM electrical hotspot report for timing and leakage power. OutPerform also creates optimization directives for timing that can be input to the designers' place and route or layout tool.

Clear Shape Technologies, Inc. is focused on delivering a complete Variability Platform that allows designers to control and optimize the parametric and catastrophic impact of systematic manufacturing variations. Clear Shape's products are based on patent-pending technologies enabling designers to efficiently achieve entitled performance and yield. Clear Shape's flagship product InShape^TM is in the DFM qualification program of all the major pure-play foundries and has been silicon-correlated at several IDMs. OutPerform, industry's first eDFM product has also been silicon validated. Clear Shape is backed by top-tier venture investors that include USVP, Intel Capital and KT Ventures (KLA Tencor). The company is headquartered at 3255-3 Scott Blvd, Suite 102 Santa Clara, Calif. 95054. For more information, visit www.clearshape.com or call +1 (408) 833-7130.

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 volume production 90nm, industry-leading 65nm, and mixed signal/RFCMOS. UMC's 10 wafer manufacturing facilities include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i are both in volume production for a variety of customer products. The company employs approximately 12,000 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.

InShape and OutPerform are trademarks of Clear Shape. All other legal marks are the property of UMC.

Note From UMC Concerning Forward-Looking Statements
Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S. Federal Securities laws, including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks.