United Microelectronics Corp (UMC, 聯電), the world’s third-largest contract chipmaker, is to invest US$5 billion in a new manufacturing facility in Singapore to make 22-nanometer chips, it said yesterday.
The first phase of the investment would add 30,000 12-inch wafers per month to UMC’s capacity, with production expected to start in 2024, the Hsinchu-based chipmaker said in a statement.
The new facility would be built next to UMC’s other Singapore 12-inch fab, Fab12i. The new plant comes as chip supply remains tight due to demand from 5G applications, Internet-of-Things devices and vehicles.
Photo: Grace Hung, Taipei Times
“The new fab is backed by clients who have signed multiyear supply agreements to secure capacity from 2024, which points to a robust demand outlook for UMC’s 22-nanometer and 28-nanometer technologies for years to come,” the statement said.
Clients are to pay a deposit to secure capacity, a new model implemented last year to cope with supply constraints, it said.
Specialty technologies to be manufactured in the new facility — such as embedded high-voltage technology, embedded non-volatile memory, radio frequency silicon-on-insulator technology and mixed signal CMOS — are critical for a broad range of applications, including smartphones, smart home devices and electric vehicle applications, UMC said.
“The company expects the new fab to play an important role in satisfying growing demand in these markets and help alleviate the structural shortage of foundry capacity, especially on 22-nanometer and 28-nanometer processes,” it said.
To account for the expansion, the chipmaker would increase its capital spending budget to US$3.6 billion this year from a previous estimate of US$3 billion.
“We are excited to expand our 300mm operations in Singapore, which would enable the company to further diversify our manufacturing footprint,” UMC chairman Stan Hung (洪嘉聰) said. “We are committed to doing our part to restore balance in the industry value chain and aid the long-term success of our clients.”
The Singaporean government supports UMC’s expansion.
“We strongly welcome and are pleased to support UMC in the expansion of its wafer fabrication and research and development operations in Singapore,” Singapore Economic Development Board Chairman Beh Swan Gin (馬宣仁) said. “This is in line with Singapore’s vision to further grow and deepen Singapore’s role in the global supply chain for semiconductors.”
In a separate statement submitted to the Taiwan Stock Exchange, UMC said that its board of directors yesterday approved a proposal to distribute a cash dividend of NT$3 per share, the highest level in about 25 years.
That represented a payout ratio of 65.65 percent based on the chipmaker’s earnings of NT$4.57 per share.
Ryanair, Transavia, Volotea and other low-cost airlines are feeling the financial pain from high jet fuel prices as a result of the Middle East war and are cutting flights. The closure of the Strait of Hormuz has taken a huge chunk of oil supplies off the market, sending the price of jet fuel soaring and triggering fears of shortages that could force airlines to cancel flights. Airlines are not waiting for a lack of supplies to react. “Travel alert: Airlines are cutting thousands of flights right now,” Travel Therapy host Karen Schaler said in an Instagram reel this past weekend.
MANAGING RISKS: Taiwan has secured LNG sufficient to cover 95 percent of electricity demand for next month, UBS said, describing the government’s approach as proactive UBS Group AG has raised its forecast for Taiwan’s economic growth this year to 8 percent, up from 6.9 percent previously, and said expansion could reach as high as 8.6 percent if external energy shocks are avoided. The upgrade reflects a stronger-than-expected first-quarter performance and sustained momentum in artificial intelligence (AI)-driven exports, which UBS said are providing a firm foundation for growth despite geopolitical and energy risks. Taiwan’s GDP expanded 13.69 percent year-on-year in the first quarter, the fastest growth since the second quarter of 1987, the Directorate-General of Budget, Accounting and Statistics (DGBAS) reported on Thursday. On a seasonally
The Fair Trade Commission’s (FTC) ongoing review of Grab Holdings Ltd’s US$600 million acquisition of Foodpanda Taiwan’s operations, announced on March 23, has taken on fresh urgency as industry experts warn that the transaction could embed significant Chinese cybersecurity vulnerabilities into Taiwan’s digital infrastructure through Grab’s deep ties to autonomous-driving firm WeRide (文遠知行). Less than 16 months after the FTC blocked Uber Eats’ direct attempt to acquire Foodpanda Taiwan — citing potential combined market shares of 80 to 90 percent — the emergence of Grab as the buyer has prompted questions about whether the same competitive harm is simply being rerouted
The list of Asian stocks that benefit from business partnership with Nvidia Corp is getting longer, as the region further integrates into the artificial intelligence (AI) chip giant’s business ecosystem. Just in the past week, South Korea’s LG Electronics Inc, Taiwan’s Nanya Technology Corp (南亞科技), as well as China’s Huizhou Desay SV Automotive Co (德賽西威) and Pateo Connect Technology Shanghai Corp (博泰車聯) have become the latest to rally on news of tie-ups, supply-chain participation or product collaboration with the US chip designer. Asian suppliers account for about 90 percent of Nvidia’s production costs, up from about 65 percent last year, data compiled
RSS