UMC Singapore's new 12-inch plant to achieve profitability in first year of operation

UMC's new 12-inch fab Fab12i P3 in Singapore is expected to be profitable in its first year of operation, industry sources said. The fab is adjacent to UMC's existing Singapore Fab12i fab, using 22nm and 28nm processes. According to a report by Digitimes on the 1st, the above-mentioned people said that strong demand coupled with local government subsidies is encouraging UMC to expand its wafer fab in Singapore, which has received long-term orders from major customers such as MediaTek and Realtek. promise.

UMC previously revealed that it plans to start the first phase of Fab12i P3 production by the end of 2024, with a production capacity of 30,000 pieces per month. The total investment in the new fab is estimated at $5 billion.

The addition of Fab12i P3 may mean that UMC's expanded fab in southern Taiwan still cannot meet all customer needs. But some market watchers have expressed concerns about an oversupply in the market, which could challenge mature process fabs after 2023.

In late January this year, UMC co-president Jason Wang said that after 2023, the 28nm process market may experience an oversupply. But given that 28nm will be the best choice for many applications, Wang Shi believes the oversupply situation will be moderate.

UMC will also carry out a NT$100 billion (US$3.58 billion) expansion project at its Fab 12A Phase 6 facility in southern Taiwan, which will be equipped with 28nm process equipment with the flexibility to extend to 14nm process. The expanded P6 fab will start production in the second quarter of 2023, adding 27,500 wafers per month.

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