All data are based on the daily closing price as of December 24, 2024

UMC Dismisses Speculation Over US Plant Construction Plans

Taiwan Chipmaker Focuses on Intel Partnership as Rival TSMC Builds Arizona Facility
Taiwan
u 2303.TW Blue Chip 150 OM 60 Semicon 75 Tech 350
Share this on

United Microelectronics Corp. rebuffed speculation about plans to build a semiconductor plant in the United States, choosing instead to concentrate on its technology partnership with Intel Corp. The company’s stance emerges as its larger rival Taiwan Semiconductor Manufacturing Co. prepares to start production at its Arizona facility next year.

The Taiwanese chipmaker addressed rumors that surfaced after Raymond Greene, director of the American Institute in Taiwan, visited UMC’s facilities. The company characterized the meeting as routine, declining to elaborate on discussions.

Rather than building its own US facility, UMC is pursuing a collaboration with Intel to develop a 12-nanometer process platform. The partnership, announced in January, aims to serve growing markets in mobile devices, communication infrastructure, and networking sectors.

The joint technology development will utilize Intel’s existing Ocotillo fabrication facilities in Arizona, with production scheduled to begin in 2027. This approach allows UMC to establish a US presence without the substantial capital investment required for new plant construction.

The strategy marks a different path from TSMC, which is investing heavily in US manufacturing capacity. Industry analysts note that UMC’s decision reflects its focus on mature process nodes rather than leading-edge technology, where domestic production has become a priority for US policymakers.

Share this on
Jakota Newsletter

Stay ahead in the JAKOTA stock markets with our roundup of vital insights

Icon scroll to top