UMC Launches $5 Billion Singapore Facility to Meet Soaring Demand for AI and Automotive Chips
Taiwan-based semiconductor giant United Microelectronics Corp. (UMC) has inaugurated the first phase of its advanced manufacturing facility in Singapore, a project valued at $5 billion. The state-of-the-art facility in Pasir Ris is set to ramp up production capabilities, with plans to manufacture up to 30,000 wafers per month at full capacity by 2026.
In a statement released Tuesday, UMC announced that the new facility will boost its Singapore production capacity by 47%, reaching an annual output of more than 1 million wafers, and is designed to cater to the rising demand driven by innovations in connectivity, automotive technology, and artificial intelligence.
“This new state-of-the-art facility in Singapore signals a new phase of growth for UMC,” said company president Shan-Chieh Chien. “It enhances our ability to meet future chip demand, driven by continuous innovations in connectivity, automotive, and AI.”
Singapore has emerged as a pivotal hub for semiconductor manufacturing, attracting significant investments from global industry players. Recent ventures include a $7.8 billion wafer fabrication facility by Vanguard International Semiconductor in partnership with Netherland’s NXP Semiconductors, and a $4 billion plant opened by GlobalFoundries last year.
UMC’s facility is poised to be among the most advanced foundries in the region, specializing in the production of semiconductors for communications, automotive, and AI applications. Chien highlighted the strategic advantage of Singapore’s location, noting that it will help strengthen supply chain resilience for UMC’s global customer base.
In addition to bolstering production capacity, the expansion is expected to create around 700 new jobs in Singapore over the coming years, spanning roles from process and equipment engineers to research and development specialists.
Jermaine Loy, managing director of the Singapore Economic Development Board, emphasized the broader impact of the project on the local economy. “This new fab introduces new leading edge specialty semiconductor capabilities and production capacity that will enhance Singapore’s competitiveness as a critical node in the global semiconductor supply chain,” he said.
As the demand for more sophisticated chips continues to surge, driven by rapid advancements in AI and automotive technologies, UMC’s new facility marks a significant milestone in expanding the region’s semiconductor manufacturing footprint. The move not only reinforces Singapore’s status as a semiconductor powerhouse but also positions UMC to play a key role in the evolving global tech landscape.