Taiwanese semiconductor foundry giant UMC announced plans to build a new fab in Tainan and expand its Singapore fab. It raised its 2026 capital investment plan to $2 billion and identified growing demand for AI and the expansion of the silicon photonics sector as future growth drivers.
UMC announced plans to expand its Singapore fab and build a new fab in Tainan, Taiwan, to meet strong demand. The company focuses primarily on semiconductors manufactured on mature nodes, with communications and consumer electronics products accounting for the bulk of its business, but it expects AI demand to drive performance going forward.
The Singapore fab (P4) is expanding its cleanroom and strengthening its capabilities in advanced fields, including silicon photonics products. The fab made its first shipment of silicon photonics products using 300mm SOI wafers in July, and CEO Wang Shi (王石) said the company intends to focus on strengthening the platform in 2027.
The Tainan fab aims to become a global hub and will address customers’ long-term roadmaps by advancing its advanced packaging business. Against this backdrop, the company raised its 2026 capital investment plan from $1.5 billion to $2 billion.
Second-quarter revenue for April–June rose 12.6% year on year to $6.873 billion, while revenue from advanced nodes reached a record high. 22nm products accounted for 17.5% of revenue, wafer shipments increased 10.6% from the previous quarter, and the utilization rate reached 85%. Demand is expected to remain solid in the July–September quarter, including for power management ICs made using 200mm wafers, with utilization expected to rise to 90%. Collaboration with Intel is progressing smoothly, with the PDK expected to be completed by the second half of 2026, tape-out during 2027, and volume production expected to begin in 2028.