Chinese semiconductor foundry UMC has appointed Po-Wen Yen as its new CEO, the company announced Monday.

UMC's former CEO Shih-Wei Sun was promoted to the position of UMC Vice Chairman. The company said the move is intended to strengthen UMC's competitiveness, as Yen has manufacturing experience and the company just expanded its production capacity.

Yen joined the company in 1986 and worked most recently as its senior vice president.

UMC is the world's second-largest contract chip maker by revenue after Taiwan Semiconductor Manufacturing Co.