UMC starts equipment move-in at new phase of Singapore fab

Jessie Shen, DIGITIMES Asia, Taipei 0


UMC has kicked off equipment move-in at the third phase (Phase 3) of its Fab 12i in Singapore, according to the pure-play foundry.

A ceremony was held at UMC's Fab 12i on May 21 to celebrate the arrival of the first tool for the new Phase 3, marking a major milestone in the construction of the facility. Phase 3 was first announced in February 2022 and is expected to be one of Singapore's most advanced semiconductor manufacturing facilities, said the Taiwan-based company.

Dubbed Fab 12i P3, the facility has already secured multi-year supply agreements from 2024, UMC was quoted as saying in previous reports.

At its most recent investors conference, UMC disclosed that the construction of the new Fab 12i P3 would be finalized by the middle of the year, as originally intended. Nevertheless, UMC collaborated with customer order adjustments and postponed equipment installation schedules by half a year. As a result, the mass manufacturing timeline has been delayed from mid-2025 to early 2026.

In addition, UMC's second-quarter guidance indicates a low single-digit increase in wafer shipments with flat ASP growth. The gross margin is projected to be approximately 30%, with the foundry expecting to use 64-66% of its fab capacity. The foundry saw its first-quarter wafer shipments and ASPs align with previously announced estimates, with wafer shipments up 4.5% quarter on quarter.

UMC reiterated previously its US$3.3 billion capital expenditure target for 2024.