Taiwan's UMC raises 2026 capex, expands Singapore and Taiwan fabs for AI demand


The logo of United Microelectronics Corporation (UMC) is seen at the company’s lobby at Hsinchu Science Park in Hsinchu, Taiwan, September 16, 2022. REUTERS/Ann Wang

TAIPEI, ⁠July 29 (Reuters) - Taiwanese chipmaker United Microelectronics Corp (UMC) ⁠said on Wednesday that its board approved ‌an expansion plan, including additional cleanroom capacity at its Singapore facility and a new fab building at its flagship ​Tainan campus in Taiwan, to ⁠meet growing AI-driven ⁠demand.

• “The plan will be executed in phases, enabling UMC ⁠to ‌remain ocused on capital discipline while flexibly deploying capacity to fulfill customer ⁠demand. As a result, 2026 capital expenditure ​budget will ‌be revised upward to US$2 billion,” said ⁠CEO Jason ​Wang.

• United Microelectronics focuses on more mature nodes, unlike Taiwan Semiconductor Manufacturing, the world's largest contract ⁠chipmaker, which is investing big in ​the most advanced 2 and 1 nanometre technology to power artificial intelligence applications.

• UMC reported second-quarter ⁠revenue of T$68.73 billion ($2.12 billion), up 17% from a year earlier, while net income was up 374.7% at T$42.26 billion.

• UMC's shares have ​risen 120% so far this ⁠year, outperforming a 38.24% gain in the broader ​market. The stock closed down ‌9.69% on Wednesday ahead of ​its earnings release.

($1 = 32.3980 Taiwan dollars)

(Reporting by Wen-Yee Lee, Editing by Louise Heavens)

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