UMC, one of the largest contract manufacturers of semiconductor products, announced plans to invest $ 3.6 billion to expand its 28-nanometer production capacity.
The decision to increase production was made against the background of a shortage of semiconductor products all over the world. The source notes that this is not the first time that a manufacturer has “shaken off dust” from old manufacturing processes in order to mitigate the situation caused by a lack of capacity to produce products according to advanced standards.
In this case, UMC plans to increase production at its Fab 12A plant located in Taiwan and designed for wafers with a diameter of 300.
The company is said to have entered into agreements with some of its clients. These agreements provide for prepayment for the release of microcircuits in the future. In return, customers receive fixed prices, protecting them from the risk of their potential growth if the imbalance between supply and demand worsens. In addition, they receive UMC guarantees for the allocation of a certain volume of production in accordance with their needs.
Fab 12A now produces 90,000 wafers per month. This year, capacity will be increased by 10,000 wafers per month, and later by another 27,500. The 28nm process equipment will be installed in workshops designed for future upgrades to 14nm process equipment. As part of the expansion, UMC plans to increase its staff by about 1000 employees.