UMC Unveils New Fab Expansion in Singapore in Grand Opening Ceremony

Rhea-AI Summary

UMC (United Microelectronics ) has officially unveiled its new semiconductor fab facility in Singapore's Pasir Ris Wafer Fab Park. The facility will commence volume production in 2026, featuring 22nm and 28nm manufacturing solutions - the most advanced foundry processes in Singapore's semiconductor sector.

The expansion represents a US$5 billion investment for the first phase, which will achieve a full capacity of 30,000 wafers per month. Combined with existing operations, UMC's total production capacity in Singapore will exceed 1 million wafers annually. The facility will manufacture semiconductors for communications, IoT, automotive, and AI applications.

The project will create approximately 700 new jobs over the next few years, including process, equipment, and R&D engineers. The facility features sustainable design elements, including 17,949 square meters of solar panels, aligning with UMC's goal of 100% renewable energy usage by 2050.

Positive

• Major capacity expansion with 30,000 wafers per month in first phase
• Strategic $5 billion investment strengthens market position
• Advanced 22nm/28nm process capability enhances competitive edge
• Creation of 700 high-skilled jobs indicates strong growth
• Geographic diversification improves supply chain resilience

Negative

• High capital expenditure of $5 billion may impact short-term financials
• Production start delayed until 2026 means delayed revenue generation
• Significant time gap before reaching return on investment

Insights

Semiconductor Industry Analyst

UMC's $5 billion investment in a new Singapore fab represents a significant strategic expansion that strengthens the company's competitive position in specialty foundry services. This facility will add 30,000 wafers per month in initial capacity, eventually boosting UMC's Singapore output to over 1 million wafers annually. The facility's focus on 22nm and 28nm nodes is particularly noteworthy - these mature process technologies are experiencing sustained demand driven by automotive, IoT, and display applications.

The timing is strategically sound amid the global push for semiconductor supply chain resilience. By expanding in Singapore rather than Taiwan (where most of UMC's advanced capacity is located), UMC mitigates geopolitical risks while positioning closer to key Southeast Asian markets. The 2026 production timeline aligns well with projected growth in next-generation connectivity and automotive semiconductors.

This expansion enhances UMC's ability to service specialty logic markets where 22/28nm nodes offer an optimal balance of performance and cost. The investment differentiates UMC from pure commodity players while avoiding direct competition with TSMC and Samsung in bleeding-edge nodes. Creating 700 new jobs will strengthen UMC's engineering capabilities while gaining political goodwill in Singapore, potentially securing preferential treatment for future expansions.

Supply Chain Strategist

UMC's fab expansion in Singapore represents a calculated diversification of manufacturing footprint that enhances supply chain resilience. By establishing advanced 22nm production outside Taiwan, UMC creates geographic redundancy for crucial semiconductor production capabilities - a strategic advantage that will appeal to customers concerned about concentration risk in the semiconductor supply chain.

The $5 billion commitment positions UMC to capitalize on the growing trend of semiconductor regionalization. Singapore offers an ideal balance of existing semiconductor ecosystem strength, political stability, and proximity to growing markets in Southeast Asia. The facility's 30,000 wafer monthly capacity targets the sweet spot of specialty process nodes (22/28nm) that remain in high demand for automotive applications, IoT devices, and display drivers - segments expected to experience steady growth through the 2026-2030 timeframe.

This expansion enables UMC to participate more meaningfully in government-backed supply chain resilience initiatives across multiple regions. The capacity addition also helps UMC respond to customers seeking 'China+1' manufacturing strategies by providing advanced production alternatives beyond mainland China or Taiwan. The investment demonstrates UMC's commitment to becoming a more geographically diversified foundry partner in an era where supply chain security has become a board-level concern for semiconductor customers.

New 22nm fab to be one of the most advanced semiconductor manufacturing facilities in Singapore and is set to create approximately 700 new jobs

SINGAPORE--(BUSINESS WIRE)-- United Microelectronics Corporation (UMC), a leading global semiconductor foundry, today officially unveiled its new fab facility in Singapore in a grand opening ceremony. The first phase of the new facility will start volume production in 2026, bringing UMC’s total production capacity in Singapore to more than 1 million wafers annually. It will also be one of the most advanced semiconductor foundries in Singapore, manufacturing semiconductors to enable communications, Internet of Things (IoT), automotive, and AI innovations.

(From Left to Right) Michael Hsu, UMC Vice President; Jermaine Loy, EDB Managing Director; Dr Beh Swan Gin, MTI Permanent Secretary; Gan Kim Yong, Deputy Prime Minister; SC Chien, UMC President; Teo Chee Hean, Senior Minister; Christine Wong, JTC Assistant Chief Executive Officer; Yao Chu Shiang, L&K Chairman

The ceremony was attended by Deputy Prime Minister and Minister for Trade and Industry of Singapore Gan Kim Yong, Senior Minister and Coordinating Minister for National Security of Singapore Teo Chee Hean, Permanent Secretary of Singapore’s Ministry of Trade and Industry Beh Swan Gin, Managing Director of the Singapore Economic Development Board (EDB) Jermaine Loy, and JTC Assistant Chief Executive Officer Christine Wong.

The facility, a greenfield expansion adjacent to UMC’s existing fab in the Pasir Ris Wafer Fab Park, spans two phases. Up to US$5 billion will be invested to bring the first phase to full capacity of 30,000 wafers per month, with room for further investment in a second phase expansion in the future. The new facility is equipped for manufacturing with UMC’s industry-leading 22nm and 28nm solutions – the most advanced foundry processes currently in Singapore’s semiconductor sector – for global customers’ products including premium smartphone display chips, power-efficient memory chips for IoT devices, and next-generation connectivity chips. The expansion is expected to create approximately 700 jobs locally over the next few years, including process and equipment engineers as well as research and development engineers.

“This new state-of-the-art facility in Singapore signals a new phase of growth for UMC. It enhances our ability to meet future chip demand, driven by continuous innovations in connectivity, automotive, and AI,” said SC Chien, President of UMC. “The unique geography of Singapore also makes the new facility well placed to support our customers in strengthening supply chain resilience. This fab expansion closely aligns with the Singapore government’s vision to become a leading advanced manufacturing hub, and we are deeply grateful for their support.”

“We welcome UMC’s expansion in Singapore. This new fab introduces new leading edge specialty semiconductor capabilities and production capacity that will enhance Singapore’s competitiveness as a critical node in the global semiconductor supply chain. This significant investment underscores our long-standing partnership with UMC, and we look forward to deepening our collaboration to strengthen Singapore’s semiconductor ecosystem,” said Jermaine Loy, Managing Director of the Singapore Economic Development Board.

The new facility was built according to rigorous sustainability standards, and has obtained the Green Mark GoldPlus certification from Singapore’s Building and Construction Authority. A standard part of all UMC’s new fab designs to align with UMC’s goal to be 100% powered by renewable energy by 2050, the new facility will be installed with 17,949 square meters of solar panels on its rooftop. In addition to the manufacturing site, the expansion also includes a brand-new office building, a full-sized multipurpose sports hall, and other amenities for employees and community members to enjoy.

About UMC

UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry company. The company provides high-quality IC fabrication services, focusing on logic and various specialty technologies to serve all major sectors of the electronics industry. UMC’s comprehensive IC processing technologies and manufacturing solutions include Logic/Mixed-Signal, embedded High-Voltage, embedded Non-Volatile-Memory, RFSOI, BCD etc. Most of UMC's 12-in & 8-in fabs with its core R&D are located in Taiwan, with additional ones throughout Asia. UMC has a total of 12 fabs in production with combined capacity of more than 400,000 wafers per month (12-in equivalent), and all of them are certified with IATF 16949 automotive quality standard. UMC is headquartered in Hsinchu, Taiwan, plus local offices in United States, Europe, China, Japan, Korea & Singapore, with a worldwide total of 20,000 employees. For more information, please visit: http://www.umc.com.

Note from UMC Concerning Forward-Looking Statements

Some of the statements in the foregoing announcement are forward-looking within the meaning of the U.S. Federal Securities laws, including statements about introduction of new services and technologies, future outsourcing, competition, wafer capacity, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks. Further information regarding these and other risks is included in UMC’s filings with the U.S. Securities and Exchange Commission. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250331014808/en/

Media contact

UMC Corporate Communications

Michelle Yun

886-3-578-2258 x16951

michelle_yun@umc.com

Source: United Microelectronics Corporation

FAQ

What is the production capacity of UMC's new Singapore fab facility?

The first phase will have a capacity of 30,000 wafers per month, bringing UMC's total Singapore production to over 1 million wafers annually.

How much is UMC investing in the new Singapore semiconductor facility?

UMC is investing US$5 billion to bring the first phase to full capacity, with potential for further investment in a second phase expansion.

When will UMC's new Singapore fab start production?

The facility will begin volume production in 2026.

What manufacturing processes will UMC's new Singapore fab utilize?

The facility will use 22nm and 28nm solutions, the most advanced foundry processes currently in Singapore's semiconductor sector.

How many jobs will UMC's new Singapore fab create?

The expansion will create approximately 700 new jobs over the next few years, including process, equipment, and R&D engineers.