Taiwan’s UMC To Spend $3.59 Billion On Capacity Expansion To Meet Chip Demand

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This comes in light of various major chipmakers like TSMC and Intel also working on expanding their capacity to meet demand

Taiwanese chip manufacturer United Microelectronics Corp (UMC) is expanding its capacity, for which it will spend $3.59 billion over the next years, the company said. Amid a global chip crunch, UMC will guarantee supplies and prices to its clients as part of the plan. 

As per co-president Jason Wang, the expansion will take place at an existing UMC facility in the Tainan Science Park. Production is scheduled to start from the second quarter of 2023. UMC’s total investment in the science park will reach $T150 billion over the next three years, he added.

The global chip scarcity has halted the production of many auto manufacturers, smartphones and other electronics manufacturers alike. 

“Amid the semiconductor component shortage, we are working with our customers, suppliers and partners to alleviate the capacity tightness across the supply chain,” Wang said. He also added that the firm operated at full capacity in the first quarter and expects demand to surpass in the second quarter. 

The company, whose clients include the likes of Qualcomm and Infineon, added in a statement that customers will make a deposit that secures their long-term chip supply at the expanded plant using pre-determined pricing. It did not name the customers.

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