Qualcomm tipped to invest in UMC -

UMC, the foundry which nibbles at the knees of TSMC, is looking for a private equity placement for as much as 10 percent of the company, and the rumour is pointing towards Qualcomm.

It would be an interesting play for Qualcomm, which outsources its manufacturing. Earlier this year it warned that, because of capacity problems, TSMC would be unable to provide enough chips to meet demand. Qualcomm then signed up with UMC for 28nm 3G/4G baseband chips and Snapdragon S4 processors.

UMC's Shih-Wei Sun would not comment on the rumour, but he did tell EE Times that "the structure is changing" and that the "radical supply chain partnership is getting more and more important". 

UMC suggested it would remain open minded about potential investors, but insisted that they must be technologically or business beneficial to the company in the long run.