United Microelectronics Corporation has landed a significant advanced packaging contract from Qualcomm, marking a notable shift in the semiconductor supply chain that could erode Taiwan Semiconductor Manufacturing Company’s longstanding dominance in the lucrative packaging market.
The deal centers on UMC’s interposer technology featuring 1500nF/mm² capacitors, which has passed Qualcomm’s electrical testing and moved into trial production. Mass production is targeted for the first quarter of 2026, according to industry sources cited in Taiwan’s Economic Daily News.
UMC’s packaging technology will support Qualcomm’s high-performance computing chips destined for AI personal computers, automotive systems, and AI servers. The collaboration represents a strategic diversification for Qualcomm, which has historically relied heavily on TSMC for both manufacturing and packaging services.
The partnership highlights UMC’s decade-long investment in Through Silicon Via technology, previously deployed for Advanced Micro Devices graphics processing units. This technical foundation, combined with competitive pricing, appears to have swayed Qualcomm’s decision.
For UMC, the contract offers a pathway beyond mature-node manufacturing where Chinese competitors have intensified pricing pressure. The company declined to comment on specific customers but emphasized advanced packaging as a strategic priority.
The deal underscores growing demand for sophisticated chip packaging solutions as artificial intelligence applications drive requirements for higher-bandwidth memory integration and reduced signal transmission distances between components.
