Taiwan's UMC to raise prices by up to 15 percent: report

TAIPEI Sun Jul 20, 2014 10:28pm EDT

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TAIPEI (Reuters) - Taiwan's United Microelectronics Corp (UMC), the world's third-largest contract microchip manufacturer, will raise the prices it charges some clients by 5 to 15 percent amid heated demand, the Commercial Times reported.

Clients who order less than 5,000 foundries monthly from UMC will see their prices rise by as much as 15 percent, the report said.

UMC will demand that larger clients fill an entire season's worth of orders, according to the report, while previous price discounts of up to 5 percent will be rescinded.

The move comes amid strained capacity at chip players across the industry, according to the report, with larger domestic rival Taiwan Semiconductor Manufacturing Co Ltd (TSMC) unable to step in to meet the additional demand.

A separate report in Taiwan's Economic Daily News said that UMC and TSMC's clients are offering to pay between 3 and 5 percent more for the chips, also due to strained capacity and fierce industry demand.

The reports did not say specifically which clients would be affected.

Representatives for UMC and TSMC would not comment on the reports.

UMC shares were up about 3 percent at T$15.70 at 0223 GMT.

(Reporting by Michael Gold; Editing by Gopakumar Warrier)

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