UMC's Singapore Expansion: Bolstering Taiwan's Chipmaking Powerhouse

Taiwan's UMC Opens New Semiconductor Fab in Singapore to Meet Global Demand

Taipei, April 1 – Taiwanese contract chipmaker United Microelectronics Corp. (UMC) inaugurated a new 22-nanometer semiconductor fab in Singapore, marking a significant step to meet escalating global demand and enhancing supply chain resilience.

The new facility, strategically located adjacent to UMC's existing fab in Singapore's Pasir Ris Wafer Fab Park, has initiated pilot production and is slated to reach mass production by 2026, as stated by UMC President S.C. Chien (簡山傑) during the opening ceremony.

UMC has allocated a substantial investment of up to US$5 billion for the first phase of its Singapore expansion. This investment will elevate the plant's capacity to 30,000 wafers per month, and generate 700 new employment opportunities.

This comprehensive expansion strategy will substantially increase UMC's Singapore production capacity, exceeding 1 million wafers annually, enabling the company to "meet growing demand for chips in everything from smartphones to cars to data centers," according to S.C. Chien.

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

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

The 22 nm node, for instance, represents the most advanced technology currently used for display driver chips, improving both visual clarity and battery life in smartphones, Chien explained.

In a separate statement on Tuesday, UMC refuted a report from Nikkei Asia concerning potential merger discussions with the U.S.-based company GlobalFoundries Inc.

UMC, a pivotal player in Taiwan's semiconductor landscape, ranks as the second-largest contract chipmaker. It specializes in the manufacturing of mature chip technologies.

According to market research firm TrendForce Corp., UMC held a 4.7 percent share of the global pure play wafer foundry market in 2024, securing the fourth position worldwide.

In comparison, Taiwan Semiconductor Manufacturing Co. (TSMC) dominated with a 67.1 percent share in the fourth quarter, followed by Samsung Electronics Co. at 8.1 percent and China's Semiconductor Manufacturing International Corp. at 5.5 percent.