HSINCHU, Taiwan – United Microelectronics Corporation (NYSE:UMC; TWSE:2303), a leading global semiconductor foundry with strong financial metrics according to InvestingPro data, has entered into a significant renewable energy agreement with Fengmiao I Offshore Wind Farm, which is developed by Copenhagen Infrastructure Partners (CIP) through its flagship fund, CI V. The company, which maintains an impressive 67% gross profit margin and has demonstrated robust financial health, continues to strengthen its market position. The deal, announced today, involves UMC purchasing over 30 billion kilowatt-hours of power from Fengmiao I over a period of at least 30 years, marking the largest renewable energy purchase in the company’s history.
This landmark agreement is a strategic move for UMC as it works towards its goal of utilizing 50% renewable energy by 2030, with an overarching ambition to achieve net zero emissions and 100% renewable energy by 2050. The company’s strong financial position, evidenced by a healthy current ratio of 9.4 and an 18% return on equity, provides solid backing for these environmental initiatives. InvestingPro analysis reveals 8 additional key insights about UMC’s financial strength and market position. The company has already made significant strides in reducing its carbon footprint, achieving a 26% reduction in scope 1 and scope 2 greenhouse gas emissions from 2020 levels this year, surpassing its 2030 target ahead of time. Consequently, UMC has revised its 2030 emissions reduction goal from 25% to 42% to further accelerate its net zero transition.
Vice President of UMC, TS Wu, highlighted the importance of the agreement, stating that it represents UMC’s largest renewable energy deal to date and signifies a major step in the company’s journey towards net zero emissions. Wu emphasized UMC’s commitment to sustainable development and the company’s continuous efforts to reduce emissions and energy consumption, including the installation of high-efficiency greenhouse gas abatement equipment and enhancing the energy efficiency of their manufacturing processes. The company’s net zero roadmap is guided by science-based targets and includes a focus on proactive carbon emission reduction, complete reliance on renewable energy, and investment in net-zero technologies.
Thomas Wibe Poulsen, APAC Regional Partner for CIP’s Flagship Funds and Chairman of Fengmiao Offshore Wind Farm, expressed confidence in the partnership, noting that UMC’s decision to collaborate with Fengmiao I reflects the market’s trust in CIP’s ability to deliver offshore wind projects.
UMC operates 12 fabs with a combined capacity of more than 400,000 wafers per month (12-in equivalent), all certified with the IATF 16949 automotive quality standard. The company’s focus on logic and various specialty technologies caters to all major sectors of the electronics industry. This operational excellence has contributed to UMC’s impressive 33.7% year-to-date stock performance, with InvestingPro data showing the stock trading near its 52-week high, reflecting strong market confidence in the company’s strategy and execution.
The information in this article is based on a press release statement.
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