UMC Singapore expands 22/28nm, a milestone

Latest update time：2024-05-22

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Source: Content comes from United Daily News , thank you.

Today (21), the third phase of the new 12-inch fab Fab 12i of UMC in Singapore was launched, and the first batch of equipment has arrived. UMC said that the expansion in Singapore symbolizes that the company's expansion plan has entered an important milestone. The new fab is scheduled to start mass production in early 2026 and will become one of Singapore's most advanced fabs. It is also an important part of UMC's overseas layout in response to geopolitical risks.

The commissioning ceremony held today was attended by representatives from the Singapore Economic Development Board (EDB), Singapore's Jurong Corporation (JTC), the Institute of Microelectronics (IME), relevant factory partners, and key equipment and material suppliers.

UMC announced the investment plan in February 2022 when it launched the third phase of expansion in Singapore. UMC revealed earlier at the press conference that the hardware construction of the third phase of the new Fab 12i factory in Singapore will be completed in the middle of this year as planned. However, due to the semiconductor industry entering into inventory adjustment earlier, UMC cooperated with customer order adjustments and postponed the installation time by half a year, and the mass production time will be postponed from the original scheduled mid-2025 to early 2026.

As the inventory adjustment for the semiconductor boom comes to an end, there are clear signs of a recovery in the second half of the year. UMC is holding a machine installation ceremony at this time, which also means that UMC will start installing machines at Fab 12i in Singapore in response to the recovery in client demand, and usher in a clear recovery of the boom next year.

Singapore's Fab 12i planned a monthly production capacity of 30,000 pieces at that time, and would provide a 22/28 nanometer process with a total investment of US$5 billion. However, in the initial stage, production capacity will be gradually increased depending on market conditions.

UMC's new factory in Singapore is expected to be completed by the end of the second quarter of this year and mass production will begin in early 2025. The monthly production capacity in the first phase is expected to be 20,000 to 30,000 wafers. The company said that at the end of this month, Fashuo will announce the full-year capital expenditure scale. However, since the Singapore factory construction project will enter the payment peak, and other factories are also undergoing routine capacity expansion, this year's capital expenditure will definitely be higher than last year's. USD 3 billion scale.

According to legal estimates, UMC's capital expenditures have increased for four consecutive years, indicating that the company continues to expand its operational layout due to its optimistic outlook for semiconductors.

UMC has continued to expand production capacity and strengthen special processes in recent years, and annual capital expenditures have shown a triple jump trend. From 2020 to 2022, capital expenditures have rapidly increased from US$1 billion and US$1.5 billion to US$2.7 billion, and will continue to increase to US$30 in 2023. With the accelerated construction of the Singapore factory this year, the full-year capital expenditure is expected to continue to rise.

UMC will expand its P6 28/22nm process in Tainan in 2023, and its monthly production capacity is expected to reach 31,500 pieces in the third quarter of this year. As for the Singapore factory, it is expected to complete the construction of a clean room in the first half of this year and mass production in early 2025.

UMC said that although the global semiconductor market declined last year, its full-year capital expenditure plan of approximately US$3 billion remained unchanged, of which 90% was used for 12-inch production capacity and 100% for 8-inch production capacity.

UMC pointed out that the investment in the construction of the Singapore factory is expected to be about 3 billion to 4 billion US dollars. The first phase will plan a monthly production capacity of 20,000 pieces. It is expected that the construction payment of the factory will reach its peak this year. In addition, the company He also said that in addition to the Singapore factory, UMC's factories have also maintained certain production capacity expansion plans every year for a long time. In addition, equipment automation improvements, software and hardware updates and contract renewals have all pushed up UMC's capital expenditures. important reason.

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