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UMC Opens $5 Billion Singapore Chip Fab as Asia Expands Semiconductor Capacity

The Taiwanese foundry's new facility will produce advanced 22nm and 28nm chips for IoT, automotive and AI applications
Taiwan
u 2303.TW Blue Chip 150 OM 60 Semicon 75 Tech 350
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Taiwanese semiconductor foundry United Microelectronics Corp. officially unveiled its new fabrication facility in Singapore, marking a significant expansion of its manufacturing footprint in Southeast Asia.

The first phase of the new facility, representing an investment of up to $5 billion, will commence volume production in 2026 with a monthly capacity of 30,000 wafers. This will bring UMC’s total annual production capacity in Singapore to over 1 million wafers, strengthening the city-state’s position in the global semiconductor supply chain amid growing demand for chips used in communications, Internet of Things, automotive, and artificial intelligence applications.

The facility will manufacture chips using UMC’s 22nm and 28nm processes — the most advanced semiconductor technologies currently in Singapore’s chip sector. These specialized chips are critical for smartphones, smart home devices, and emerging electric vehicle applications.

“The unique geography of Singapore makes the new facility well placed to support our customers in strengthening supply chain resilience,” UMC President SC Chien said in a statement. The expansion aligns with Singapore’s ambition to become a leading advanced manufacturing hub.

Originally announced in 2022, the project experienced delays with production initially planned for late 2024. The greenfield expansion, built adjacent to UMC’s existing fab in Pasir Ris Wafer Fab Park, includes provisions for a second-phase expansion in the future.

The facility was constructed according to sustainability standards, obtaining Green Mark GoldPlus certification from Singapore’s Building and Construction Authority. It features 17,949 square meters of solar panels, supporting UMC’s goal to be powered entirely by renewable energy by 2050.

The expansion is expected to create approximately 700 jobs in Singapore over the next few years, including positions for process engineers, equipment engineers, and research and development specialists.

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