Taiwan's UMC opens new semiconductor fab in Singapore

Taipei, April 1 (CNA) Taiwanese contract chipmaker United Microelectronics Corp. (UMC) opened a new 22-nanometer semiconductor fab in Singapore on Tuesday to satisfy growing demand and providing greater supply chain resilience.

The new facility, located next to UMC's existing fab in Singapore's Pasir Ris Wafer Fab Park, has begun pilot production and will ramp up to mass production in 2026, UMC President S.C. Chien (簡山傑) said at an opening ceremony.

UMC said it planned to invest up to US$5 billion in the first phase of its expansion in Singapore, raising the plant's capacity to 30,000 wafers per month and creating 700 new jobs.

In total, the expansion will boost UMC's Singapore production capacity to over 1 million wafers per year, helping it "meet growing demand for chips in everything from smartphones to cars to data centers," Chien said.

"Singapore's strategic location also strengthens supply chain resilience for our customers," Chien said.

Chien noted that the new fab is equipped for the 22 nm and 28 nm processes, which are "cutting edge for many applications."

For example, the 22 nm is the most advanced node currently used for display driver chips, which enhance visual quality and battery life in smart phones, he said.

Separately on Tuesday, UMC denied a report in Nikkei Asia that it was exploring a merger with U.S.-headquartered counterpart GlobalFoundries Inc.

UMC is Taiwan's second-largest contract chipmaker, and specializes in mature chip production.

According to the market research firm TrendForce Corp., UMC had a 4.7 percent share of the global pure play wafer foundry market in 2024, ranking fourth in the world.

In comparison, Taiwan Semiconductor Manufacturing Co. had a 67.1 percent share in the fourth quarter, followed by 8.1 percent for the second-ranked Samsung Electronics Co. and 5.5 percent for China's Semiconductor Manufacturing International Corp.