UMC to Invest Over NT$146 Billion in Singapore Expansion and New Taiwan Factory
Semiconductor manufacturer UMC announced a significant capital expenditure plan totaling NT$146.86 billion, including expanding its Singapore facility and building a new plant in Taiwan.
United Microelectronics Corporation (UMC), a leading global semiconductor foundry, has announced plans for a substantial investment of NT$146.86 billion (approximately $4.8 billion USD). The investment will be deployed in two key phases: expanding production capacity at its existing Singapore fab and constructing a new fabrication plant in Taiwan.
The Singapore expansion will focus on completing and equipping the previously idled P4 facility to meet growing customer demand for silicon photonics (SiPh) components. These are crucial for advanced applications in artificial intelligence and high-speed data communication.
Concurrently, UMC will build a new manufacturing facility in the Tainan Science Park, Taiwan. This site will serve as the foundation for future P7 and P8 phases, significantly boosting UMC's overall production capabilities. The company aims to address the rapidly evolving market demands, particularly those driven by generative AI.
UMC Chairman Hong Chia-chang stated that the expansion is a strategic response to the reshaping of the tech industry by generative AI, which is accelerating demand for high-performance, high-bandwidth, and integrated technologies. The phased approach is designed to ensure UMC can meet market needs while maintaining speed, flexibility, and financial discipline.