Taiwan’s United Microelectronics Corp. faces speculation about acquiring a HannStar Display facility in Southern Taiwan Science Park, signaling the foundry’s broader shift toward advanced packaging technologies.
Industry sources suggest UMC is negotiating to purchase the facility across from its existing Fab 12A plant, potentially converting it for advanced packaging operations. The company declined to comment on the acquisition rumors but acknowledged continuing efforts to identify profitable expansion opportunities.
UMC has already established 2.5D advanced packaging capacity in Singapore and moved portions of its process back to Taiwan. Chief Financial Officer Chi-Tung Liu emphasized the company’s strategic pivot beyond traditional foundry services toward higher value-added areas.
The Hsinchu-based company currently operates silicon interposer production at approximately 6,000 wafers monthly with no immediate expansion plans. Instead, UMC is developing wafer-to-wafer bonding technology for 3D integrated circuit manufacturing, positioning itself to offer comprehensive system-level solutions.
UMC reported net profit of NT$47.21 billion ($1.47 billion) in 2024, down 22.6 percent from the previous year. The company expects its addressable market to grow just 3 percent this year, lagging the broader foundry industry’s projected 15 percent expansion.
Taiwan remains central to UMC’s expansion strategy, leveraging the island’s talent pool and supply chain advantages for research and development initiatives.
