12nm program with Intel on schedule, production slated for 2027: UMC

Taipei, May 27 (CNA) United Microelectronics Corp. (UMC), Taiwan's No. 2 contract chipmaker, said on Wednesday that its collaboration with American counterpart Intel Corp. on the 12 nanometer process was on course, expecting mass wafer production to start in 2027.

Speaking at its annual general meeting, UMC President Jason Wang (王石) said production of the 12nm process is in the process of being certified at Intel's campus in Arizona, with certification expected to be completed by the end of this year and mass production to begin next year.

UMC and Intel announced their partnership on the 12nm process with Fin Field Effect Transistor (FinFET) capabilities in January 2024, saying the new process node would be developed and manufactured in Fabs 12, 22 and 32 at Intel's Ocotillo Technology Fabrication site in Arizona.

The FinFET technology is a 3D transistor structure that allows a chip to run faster using the same amount of power or to run at the same speed on reduced power.

As for UMC's own business, Wang said it was able to maintain its long-term competitiveness and stable operations in 2025 despite a slowdown in global demand growth, an increase in geopolitical uncertainty, and exchange rate volatility.

Revenue generated from its 22nm and 28nm nodes and specialty process set records in 2025, Wang said, helping UMC cement its status in the mature and specialty process development niches in the global market.

Overall in 2025, UMC posted consolidated sales of NT$237.6 billion (US$7.57 billion), up 2.3 percent from a year earlier, while its net profit totaled NT$41.7 billion, down 11.6 percent from a year earlier. Earnings per share came in at NT$3.34, down from NT$3.80 in 2024.

After investing NT$17.7 billion in R&D focused on 5G, the Internet of the Things, automotive, and AI technologies, UMC will continue to invest in value-added and critical applications along with the next generation of technologies, Wang said.

In terms of advanced IC assembly, Wang said UMC has pursued AI-related applications and worked with clients on certification.

UMC has also started to provide 2.5D assembly solutions with deep trench capacitor capability (building passive components directly into a silicon substrate) to its major clients, while its 12-inch silicon photonics platform has entered a trial run, Wang said.

UMC's chief financial officer Chitung Liu (劉啟東) said the company will raise product prices on select items in the second half of 2026 due to rising production costs.

The higher costs partly reflect the very high expense of expanding capacity at its Singapore manufacturing location, where 12,000 to 13,000 wafers are produced every month, Liu said, adding that capacity will grow to 18,000 units in the future.