UMC will start a new wave of price hikes up to 12

The demand for foundry capacity continues to be in short supply. UMC will initiate a new wave of price increases measures, mainly for the three major US companies that account for more than 30% of revenue. For customers, the increase is about 8% to 12%, effective from January 2022.

At present, UMC's major customers in the US include AMD, Qualcomm, Texas Instruments, Nvidia and other major manufacturers, as well as orders from major European manufacturers such as Infineon and STMicroelectronics.

In response to the increase in the long-term contract offer, UMC confirmed yesterday that it will adjust the long-term contract of some customers. "This time it is true that some customers will sign a new annual long-term contract, and the price will be adjusted based on the current market conditions."

According to reports, UMC’s current price increase is mainly targeted at 12-inch fab customers with 28 and 40nm manufacturing processes. According to the industry, even if the foundry prices of foundries increase quarterly, UMC's production capacity will basically be "completely sold out" before 2022.

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