What happened
Shares of United Microelectronics (UMC +2.10%) have skyrocketed today, up by 19% as of noon EDT, after the company made numerous investor disclosures in a regulatory filing. The tech specialist said it would be acquiring equipment from Applied Materials, among other news.
So what
United Microelectronics said it would be acquiring machinery and equipment from a Taiwanese subsidiary of Applied Materials for 1.02 billion New Taiwan dollars ($34.8 million). The purpose of the transaction is listed as production. The company's board also decided to increase capital at the United Semiconductor (Xiamen) subsidiary. The registered increase in capital is 3.5 billion yuan ($500 million).
Image source: Getty Images.
Now what
United Microelectronics also responded to a media report last week from United Daily News that speculated that the company had received wafer orders from large consumer electronics manufacturers and that additional production capacity was difficult to secure.
"UMC has a clear company policy about not commenting on customers or their order status and has not disclosed any of the business or operation details mentioned in the article," the company wrote in the filing. "The report is based on the speculation of the journalist."
UMC is scheduled to report second-quarter results on Wednesday.
