The new facility would be built next to UMC’s other Singapore 12-inch fab, Fab12i
Taiwanese chipmaker United Microelectronics Corp is expanding its manufacturing poweress as it plans to invest US$5 billion in a new manufacturing facility in Singapore to make 22-nanometer chips.
UMC, which is the world’s third-largest contract chipmaker, said in a statement that the first phase of the investment would add 30,000 12-inch wafers per month to UMC’s capacity, with production expected to start in 2024.
The new facility would be built next to UMC’s other Singapore 12-inch fab, Fab12i. The expansion plan in Singapore will increase UMC’s capital expenditure for 2022 to $3.6 billion, from the previously planned $3 billion, the company said. It spent $1.8 billion on capex 2021.
“The new fab is backed by clients who have signed multiyear supply agreements to secure capacity from 2024, which points to a robust demand outlook for UMC’s 22-nanometer and 28-nanometer technologies for years to come,” the statement said.
UMC, whose clients include Samsung, MediaTek and Qualcomm, said that the clients are to pay a deposit to secure capacity, a new model implemented last year to cope with supply constraints amid the supply crisis.
Specialty technologies to be manufactured in the new facility — such as embedded high-voltage technology, embedded non-volatile memory, radio frequency silicon-on-insulator technology and mixed signal CMOS — are critical for a broad range of applications, including smartphones, smart home devices and electric vehicle applications, UMC said.
“The company expects the new fab to play an important role in satisfying growing demand in these markets and help alleviate the structural shortage of foundry capacity, especially on 22-nanometer and 28-nanometer processes,” it said.
“We are excited to expand our 300mm operations in Singapore, which would enable the company to further diversify our manufacturing footprint,” UMC chairman Stan Hung said. “We are committed to doing our part to restore balance in the industry value chain and aid the long-term success of our clients.”
