United Microelectronics Corporation (UMC) now expects the global semiconductor market to grow 30% in 2010, while the foundry sector will show over 30% growth, CEO Shih-Wei Sun said at a company investors conference on October 27.

UMC previously predicted the foundry and overall chip markets would rise 30% and 20%, respectively, for the year.

For 2011, UMC predicts global semiconductor production value will increase 5-10% over 2010, according to Sun. The foundry business is expected to see 10-15% growth in 2011, outperforming that of the semiconductor industry, Sun indicated.

UMC announced net income of NT$8.72 billion (US$279 million) on revenues of NT$32.65 billion for the third quarter of 2010, showing on-quarter growth of almost 10% in sales and 65% in profits. The results exceeded market expectations.

UMC expects wafer shipments to decline 5% sequentially but ASPs to rise 5% in the fourth quarter, giving a more positive outlook. Previous reports cited market watchers estimating that UMC might see revenues drop by 10% sequentially in the fourth quarter.