December 27, 2024
Overview:
United Microelectronics Corp. (UMC), one of the world’s largest semiconductor manufacturers, has signed a 30-year corporate power purchase agreement with Copenhagen Infrastructure Partners. The agreement, tied to Taiwan’s Fengmiao I Offshore Wind Farm, commits UMC to purchasing over 30.000 GWh of renewable energy, marking a significant shift in how the company powers its operations.
The Fengmiao I project, developed under CIP’s flagship fund Copenhagen Infrastructure V (CI V), is set to become one of Taiwan’s major renewable energy assets. Located 35 kilometers off the coast of Taichung City, the 500 MW wind farm will feature 33 turbines and is expected to begin generating power in 2027. Construction is slated to start in 2025.
This deal is a cornerstone of UMC’s environmental strategy, which has seen the company step up its renewable energy targets. In 2023, UMC reported a 26% reduction in its scope 1 and scope 2 greenhouse gas emissions compared to 2020, achieving its original 2030 target seven years ahead of schedule. As a result, it has now raised its goal to a 42% reduction by 2030.
Stan Hung, Chairman of UMC, emphasized that securing long-term renewable energy supply is critical to maintaining the company’s competitive edge in a decarbonizing global economy. Co-Presidents SC Chien and Jason Wang underscored the operational and reputational advantages of the deal, noting that semiconductor clients are increasingly prioritizing supply chain sustainability.
On CIP’s side, Managing Partner Jakob Baruël Poulsen highlighted the scale of the Fengmiao I project as a demonstration of the growing demand for industrial-scale renewable energy solutions. Martin Neubert, Group CIO at CIP, noted that projects like Fengmiao I not only drive renewable energy adoption but also provide stable, long-term returns for institutional investors.
