UMC Delivers One Millionth 90nm RV516 chip to ATI

Chip Brings High Performance Graphics Capabilities to Desktop Computers

HSINCHU, Taiwan-July 17, 2006-UMC (NYSE: UMC, TSE: 2303), a leading global semiconductor foundry, has delivered its one millionth RV516 chip to ATI Technologies Inc. (TSX: ATY, NASDAQ:ATYT). The high performance graphics system-on-chip (SoC) is currently in volume production using 90nm process technology at UMC's 300mm Fab 12A in Tainan, Taiwan. RV516 delivers leading-edge 3D capabilities to easily handle today's graphics-intensive games, digital entertainment and productivity software for desktop computers.

"UMC supplies one of three X1300 silicon variants which have been a great success for ATI," said Vijay Sharma, director, desktop products, ATI Technologies, Inc. "UMC has been hugely helpful getting X1300 to where it is today."

Fu Tai Liou, president of the America Business Group at UMC, said, " ATI and UMC have shared a long-term foundry relationship over the years resulting in many significant production milestones over several process generations. This latest achievement of one million chip deliveries for their RV516 on our 90nm process demonstrates the continued success between our two companies. We look forward to continuing this productive partnership for their upcoming products."

In October 2004, the companies announced a similar production milestone for UMC's delivery of 20 million RADEON 9200 graphics chips to ATI (see http://www.umc.com/english/news/20041027a.asp). In addition to this most recent accomplishment for the RV516, ATI is also cooperating with UMC to produce other graphics ICs using the foundry's 90nm and 80nm process technologies.

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 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.

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