UMC expands with new 22nm wafer fab in Singapore

The new manufacturing facility, named Fab12i P3, will be built next to its existing 300mm fab (Fab12i) in Singapore, providing UMC’s 22/28nm processes, a company press release reads.

UMC says that the new fab is backed by customers who have signed multi-year supply agreements in order to secure capacity from 2024 and beyond, which points to ”robust demand outlook” for UMC’s 22/28nm technologies for years to come, driven by 5G, IoT, and automotive mega-trends.

Specialty technologies to be manufactured in the new facility are embedded high voltage, embedded non-volatile memory, RF-SOI, and mixed signal CMOS.

The semiconductor undersupply has crystallized the need for greater visibility and mutual risk mitigation within the industry. This investment is the result of the shared vision and close collaborations with our key customers. We are committed to doing our part to restore balance in the industry value chain and to the long-term success of our customers, says Stan Hung, Chairman of UMC, in the press release.

The planned investment for this project will be USD 5 billion. To account for the Fab12i expansion, the company says that its 2022 capex budget will be revised upward to USD 3.6 billion.

The first phase of this greenfield fab will have a monthly capacity of 30,000 wafers with production expected to commence in late 2024.