United Microelectronics Corp. surges on record trading volume

Taiwanese semiconductor manufacturer United Microelectronics Corporation (UMC) experienced a significant surge in its stock price on August 28, reaching its upper limit of NT$130. The stock's rebound followed a period of decline, breaking through its previous trading range. The dramatic price increase was accompanied by a massive surge in trading volume, with 290,000 shares traded by 10:25 AM, and a backlog of over 84,000 buy orders at the limit price.

This surge propelled UMC to the top of Taiwan's stock market in terms of trading value, with the day's transactions reaching NT$38.3 billion. Despite the strong performance, institutional investors showed mixed signals. Foreign investors continued a three-day selling streak, offloading over 60,000 shares, while investment trusts also sold shares. Only proprietary traders bought into the stock, acquiring 1,541 shares, resulting in a net sell-off of 48,000 shares by major institutional players on the previous day.

The company's recent financial activities suggest strategic preparation for future expansion. On August 26, UMC's board approved the issuance of up to $1.8 billion (approximately NT$57 billion) in overseas unsecured convertible bonds. This move, along with ongoing capacity expansion efforts, is interpreted by industry observers as preparation for the next wave of growth.

Furthermore, UMC is actively deepening its investments in emerging technologies such as silicon photonics and specialized manufacturing processes. These strategic initiatives, supported by the capital raised through convertible bonds, position the company to capitalize on future market opportunities and technological advancements in the semiconductor industry.