Taiwan-based United Microelectronics Corp. (UMC) inaugurated a new 22-nanometre semiconductor fabrication facility in Singapore on 1 April, aiming to address rising global chip demand and enhance supply chain resilience.
The new fab, which is located adjacent to UMC’s existing plant in Pasir Ris Wafer Fab Park, has commenced pilot production, with full mass production scheduled to begin in 2026, according to UMC President S.C. Chien.
UMC announced it would invest up to US$5 billion in the facility’s first phase. This phase will increase the plant’s output to 30,000 wafers per month and create approximately 700 new jobs in Singapore’s semiconductor sector.
Once the expansion is complete, UMC’s total annual production capacity in Singapore will surpass 1 million wafers, significantly contributing to global demand for semiconductors used in smartphones, vehicles, and data centres.
Chien emphasised the importance of the site’s location, stating, “Singapore’s strategic location also strengthens supply chain resilience for our customers.”
He added that the new fab will be capable of handling 22 nm and 28 nm manufacturing processes, which are considered advanced nodes for a range of applications.
Chien explained that the 22 nm node, in particular, is currently the most sophisticated technology used for display driver chips, which are vital in enhancing screen quality and extending battery life in smartphones.
UMC’s expansion aligns with broader industry trends that favour mature node chips, which remain essential in automotive, industrial, and consumer electronics applications.
While the new facility signals a strong commitment to growth and global diversification, UMC on the same day denied media speculation about a potential merger with GlobalFoundries Inc., a U.S.-based semiconductor manufacturer.
The denial followed a report published by Nikkei Asia, which had suggested that merger talks were under consideration. UMC made it clear that no such discussions were taking place.
UMC, Taiwan’s second-largest contract chipmaker, has carved out a strong position in the global market by focusing on mature chip technologies rather than competing directly in cutting-edge nodes.
According to the market research firm TrendForce Corp., UMC accounted for 4.7 percent of the global pure-play wafer foundry market in 2024, placing it fourth worldwide.
Taiwan Semiconductor Manufacturing Co. (TSMC) led the market with a dominant 67.1 percent share as of the fourth quarter of 2024. Samsung Electronics Co. and China’s Semiconductor Manufacturing International Corp. followed with 8.1 percent and 5.5 percent shares, respectively.
UMC’s strategy to expand capacity in Southeast Asia also comes amid growing geopolitical tensions and efforts by tech firms to diversify their manufacturing bases beyond Taiwan and China.
Singapore, known for its political stability and pro-business environment, has increasingly become a preferred location for high-tech investments in recent years.
The country’s Economic Development Board has also actively supported semiconductor investments, offering incentives to global chipmakers to establish operations within its borders.
The post UMC opens new US$5 billion chip plant in Singapore to expand global capacity appeared first on The Online Citizen.
