Taiwan’s UMC to spend $5 bln on new chip plant in Singapore

Taiwan’s United Microelectronics Corp (UMC) will make investments $5 billion on a new microchip manufacturing unit in Singapore, with manufacturing anticipated to begin in 2024 to help the increase in 5G and auto electronics, it stated on Thursday.

UMC, which has already been producing semiconductors in the nation for greater than 20 years, stated the new manufacturing unit would produce 22 and 28 nanometre chips.

“The new fab is backed by clients who’ve signed multi-year provide agreements in order to safe capability from 2024 and past, which factors to sturdy demand outlook for UMC’s 22/28nm applied sciences for years to come, pushed by 5G, IoT (web of issues), and automotive mega-trends,” it stated in a press release.

The new fab shall be subsequent to an present one, and may have a month-to-month capability of 30,000 wafers, UMC added.

The firm stated in 2021 it could spend T$100 billion ($3.57 billion) over the following three years to develop capability and would assure provides and costs to its purchasers as a part of the plan, amid a world chip scarcity that has hit automakers particularly arduous.

UMC Chairman Stan Hung stated in the assertion the semiconductor “undersupply” had crystallised the necessity for “larger visibility and mutual threat mitigation inside the trade”.

“We are dedicated to doing our half to restore steadiness in the trade worth chain and to the long-term success of our clients.”
The firm’s purchasers embrace Qualcomm Inc and Germany’s Infineon.

The international chip scarcity initially pressured automakers to minimize manufacturing however is now additionally hurting producers of smartphones, laptops and even family home equipment. Chip companies are racing to add capability to sustain.

TSMC, Asia’s most useful listed agency and globally the biggest contract chipmaker, stated final month it anticipated to elevate capital spending to between $40 billion and $44 billion this yr. Last yr it spent $30 billion. myWinet