The 28nm process market segment may experience an oversupply beyond 2023, according Jason Wang, president for pure-play foundry United Microelectronics (UMC).
"Based on the announced capacity expansion plans, we do see the oversupply situation at 28-nanometer to happen beyond 2023. But we still also believe the oversupply situation will be mild," said UMC president Jason Wang during a Q&A session of the company's earnings conference call yesterday (January 25)." "Given the 28-nanometer will be a sweet spot for many applications," Wang continued, "demand will continue to grow."
UMC's planned US$3 billion capex this year includes its "collaborative Fab 12A P6 expansion plan with customers," the foundry said, while it revised its previous 27,500-wafer monthly output target at the expanded facility to 32,500 wafers.
P6 is the phase-six facility of UMC's Fab 12A and will be equipped with flexible tools that can produce 28nm or smaller nodes down to 14nm. The expanded P6 facility is on track to be ready for production in the second quarter of 2023, Wang indicated.
Wang also claimed that up to 80% of the orders UMC has secured demanding 28nm process manufacturing are multi-year contracts.
TSMC, Globalfoundries, and China-based Semiconductor Manufacturing International (SMIC) have also disclosed plans to build additional 28nm fab capacities.
In particular, SMIC will be aggressively expanding its 28nm fab capacity as it puts increased focus on mature process manufacturing amid US sanctions. The China-based pure-play foundry has already initiated its capacity expansion projects in Beijing, Shanghai, and Shenzhen focusing on 28nm as well as other mature process manufacturing.
TSMC is on track to start providing 28nm fabrication services at its Nanjing fab in China in the second half of 2022. TSMC has also struck an agreement with Sony to set up a joint-venture fab for 22nm and 28nm process manufacturing in Kumamoto, Japan, with production scheduled to kick off by the end of 2024. In Taiwan, TSMC plans to build a new plant in Kaohsiung where additional fabrication lines for 7nm and 28nm chips will be set up with production slated for 2024.
Article translated by Jessie Shen
