United Microelectronics Corporation (UMC) has initiated the equipment installation at the third expansion of its Fab 12i in Singapore. During a recent event held on May 21, the semiconductor company marked the notable progress of the new Phase 3 with the arrival of the first piece of equipment, signaling a key development in the facility’s construction. UMC, headquartered in Taiwan, commenced this expansion with an announcement in February 2022, aiming to create one of Singapore’s leading-edge semiconductor manufacturing plants.
Labelled as Fab 12i P3, the new arm of the facility has already secured multi-year supply commitments set to begin in 2024. In fact, UMC has reported during previous disclosures that these agreements have been put in place.
The latest investor conference revealed UMC’s expectations to complete the Phase 3 construction by the middle of this year, sticking to their original schedule. However, in response to alterations in customer orders, the company has rescheduled the equipment installation by six months. Consequently, the intended mass production has been shifted from mid-2025 to the early part of 2026.
UMC has also released guidance for the second quarter, which predicts a modest increase in wafer shipments and stable average selling prices (ASPs). The company anticipates a gross margin in the vicinity of 30% and plans to utilize 64-66% of its fab capacity. These projections are consistent with the first-quarter performance, where UMC recorded a 4.5% quarter-over-quarter increase in wafer shipments.
Furthermore, the firm has reiterated its capital expenditure budget of US$3.3 billion for the year 2024. With the movement of equipment into Fab 12i P3 and the continuation of construction and modernization, UMC is poised to strengthen its position in the competitive semiconductor manufacturing industry.
