The co-general manager of UMC, Jason Wang, said that the 28nm process segment may be oversupplied after 2023. " Based on the announced capacity expansion plans, we do believe that the 28nm oversupply situation will occur after 2023. But we still believe that the oversupply situation will be moderate," Wang Shi, co-general manager of UMC, said on the company's earnings call on January 25. of the question and answer session. "Demand will continue to grow given that 28nm will be the 'sweet spot' for many applications," said Wang Shi.
UMC said its planned capital expenditure of $3 billion this year includes its "fab 12A P6 expansion plan in partnership with customers," while revising the expanded fab's previous target of 27,500 wafers per month to 32,500 wafers. P6, the Phase 6 facility of UMC Fab 12A, will be equipped with flexible tools to produce 28nm or smaller nodes down to 14nm. Wang Shi said the expanded P6 plant is expected to start production in the second quarter of 2023.
Wang Shi also said that up to 80% of UMC's orders for 28nm process manufacturing are multi-year contracts.
TSMC is expected to begin offering 28nm manufacturing services at its Nanjing plant in the second half of 2022. TSMC has also reached an agreement with Sony to build a joint-venture factory in Kumamoto, Japan for 22nm and 28nm process manufacturing, with production scheduled to start by the end of 2024. TSMC also plans to build a new factory in Kaohsiung, Taiwan, where additional 7nm and 28nm chip production lines will be set up, with production scheduled to start in 2024.
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