Dubbed as Fab12i P3, the new semiconductor factory of United Microelectronics is slated to begin production in late 2024 with its first phase to have a monthly capacity to produce 30,000 wafers
United Microelectronics will build the $5bn Fab12i P3 next to the Fab12i 300mm fab. (Credit: United Microelectronics Corporation)
United Microelectronics has announced an investment of $5bn to build a new semiconductor factory (fab) near the company’s Fab12i 300mm fab in Singapore.
According to the Taiwanese semiconductor foundry the new wafer fab dubbed as Fab12i P3 will use its 22/28nm technologies.
The first phase of the greenfield chip factory will have a monthly capacity of 30,000 wafers.
United Microelectronics expects to begin production from Fab12i P3 in late 2024.
To account for the expansion of Fab12i with the new facility, United Microelectronics has revised its capital expenditure (capex) budget for 2022 to $3.6bn.
According to the Taiwanese firm, the new fab in Singapore is underpinned by multi-year supply agreements signed with customers for securing capacity from 2024 and beyond.
United Microelectronics claimed that the demand for its 22/28nm semiconductor technologies are being driven by 5G, automotive mega-trends, and Internet of Things (IoT).
Fab12i P3 will manufacture specialty technologies like embedded high voltage, embedded non-volatile memory, radio frequency-Silicon on Insulator (RF-SOI), and mixed signal complementary metal–oxide–semiconductor (CMOS).
The technologies to be manufactured at the new fab are highly important for a wide variety of applications such as smartphones, emerging electric vehicle applications, and smart home devices, sad the Taiwanese firm. United Microelectronics expects Fab12i P3 to have a key role in meeting the increasing demand in these markets and help ease the structural shortage of foundry capacity, particularly on 22/28nm processes.
United Microelectronics chairman Stan Hung said: “Over the past two decades, UMC has benefited from Singapore’s vision to attract high tech firms through strong infrastructure, ecosystem, and talent pool.
“Our Singapore fab is UMC’s flagship innovation hub and numerous new R&D projects in collaboration with customers will enter production when the new facility comes online.
“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.”
The Taiwanese firm has been operating as a pure-play foundry supplier in Singapore for over two decades. The location of its existing fab in the country is also its designated research and development (R&D) centre for advanced specialty technologies.
Singapore Economic Development Board chairman Beh Swan Gin said: “UMC plays an important role in Singapore’s semiconductor manufacturing sector. We strongly welcome and are pleased to support UMC in the expansion of its wafer fabrication and R&D operations in Singapore.
“This is in line with Singapore’s vision to further grow and deepen Singapore’s role in the global supply chain for semiconductors.”
Currently, United Microelectronics has 12 fabs in production, which have a combined capacity of producing more than 800,000 wafers per month. The company’s revenue in 2021 was TWD213bn ($7.6bn).