Taiwanese industrial sources report that UMC is trying to Qualcomm’s participation in its upcoming private placement of securities to establish a strategic partnership with a developer of mobile processors. However, UMC denies interest in certain investors as part of its measures to increase cash flow.

UMC’s Board of Directors in April approved a plan to produce up to 1.292 billion new shares through private placement of securities. The purpose of this step – to attract new strategic partners and to increase capital. Resolution of the Board of Directors was also approved by shareholders.

The head of Qualcomm Paul Jacobs (Paul Jacobs) in a recent Bloomberg article said that the company does not exclude the possibility of acquiring manufacturing plant or the conclusion of large cash transactions with industrial partners to ensure delivery of sufficient quantities of chips. As you know, Qualcomm earlier in 2012 was faced with lack of supply of new 28-nanometer chips from TSMC. The result is reported, the company looks toward new contract manufacturers such as Globalfoundries, UMC and Samsung to provide additional output.

Meanwhile, TSMC reiterates that the proposed its capacity to produce 28-nm chips will come nearer to the demand in the last quarter of the year.