March 25, 2002
UMC JAPAN

UMC JAPAN Successfully Raises 17 Billion Yen Through
Zero Coupon Euro-Yen Convertible Bonds Due 2007


UMC JAPAN (the gCompanyh) today announced that it has successfully completed an offering of 17 billion Yen zero coupon euro-yen convertible bonds due 2007. The Companyfs Board of Directors resolved to approve the Companyfs first offering to overseas capital markets at a meeting held on February 25th, 2002.

The cash proceeds will be used mainly to finance capital investments made to increase the Companyfs production capacity using advanced process technologies at line widths of 0.18 micron and beyond. In order for the company to grow in the long term, starting mass production with advanced technologies early on is indispensable.

The Companyfs first offering to overseas markets was extremely well received by notable institutional investors. This illustrates that the global capital market has been keenly interested in the first and only dedicated wafer foundry in Japan. Furthermore, this offering has become the largest convertible bond issuance by principal amount ever by a JASDAQ listed company, and will therefore contribute to enhance the Companyfs reputation all the more globally.

[Offering Summary]
Issuer UMC JAPAN
Name of Issue Zero Coupon Convertible Bonds Due 2007
Face Value 10 million Yen
Issue Price 101.75“ of principal amount of the Bonds
Aggregate Principal Amount of the Bonds 17,000,000,000 Yen
Form of Bond 17,297,500,000 Yen
Rate of Interest Registered
Closing Date Zero
Maturity Date March 25, 2002
Redemption at Maturity March 26, 2007
Redemption at Maturity 100“ of principal amount of the Bonds
Method of Offering Offering to overseas mainly in Europe through underwriting of the Bonds by Lehman Brothers International (Europe) (Sole Bookrunner) and the other initial purchasers listed in the purchase agreement.
Listing Luxembourg Stock Exchange
Initial Conversion Price 1,600,000 Yen
Shares Issued on Conversion Common Stock of UMC JAPAN
Conversion Period May 3, 2002 through March 19, 2007
Collateral or Guarantees None



This press release is not an offer to sell or a solicitation of any offer to buy the securities of UMC JAPAN (gthe Companyh) in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an exemption from such registration requirement. If any public offering of securities is made in the United States, it will be by means of a prospectus that may be obtained from the Company or any selling security holder that will contain detailed information about the Company and management, as well as financial statements. No public offering of securities has been made in the United States in connection with the above-mentioned transactions.