BusinessUMC opens new US$5 billion chip plant in Singapore to expand global capacity.

Taiwan-based United Microelectronics Corp. (UMC) inaugurated a new 22-nanometre semiconductor fabrication facility in Singapore on 1 April, aiming to address rising global chip demand and enhance supply chain resilience.

The new fab, which is located adjacent to UMC’s existing plant in Pasir Ris Wafer Fab Park, has commenced pilot production, with full mass production scheduled to begin in 2026, according to UMC President S.C. Chien.

UMC announced it would invest up to US$5 billion in the facility’s first phase. This phase will increase the plant’s output to 30,000 wafers per month and create approximately 700 new jobs in Singapore’s semiconductor sector.

Once the expansion is complete, UMC’s total annual production capacity in Singapore will surpass 1 million wafers, significantly contributing to global demand for semiconductors used in smartphones, vehicles, and data centres.

Taiwan Semiconductor Manufacturing Co. (TSMC) led the market with a dominant 67.1 percent share as of the fourth quarter of 2024. Samsung Electronics Co. and China’s Semiconductor Manufacturing International Corp. followed with 8.1 percent and 5.5 percent shares, respectively.

UMC’s strategy to expand capacity in Southeast Asia also comes amid growing geopolitical tensions and efforts by tech firms to diversify their manufacturing bases beyond Taiwan and China.

Singapore, known for its political stability and pro-business environment, has increasingly become a preferred location for high-tech investments in recent years. The country’s Economic Development Board has also actively supported semiconductor investments, offering incentives to global chipmakers to establish operations within its borders.

Source: Theonlinecitizen