
The expansion will be executed in phases, leveraging a disciplined, ROI-driven strategy to balance rapid scalability with prudent capital allocation


United Microelectronics Corporation (NYSE:UMC, TWSE: 2303))

<p xmlns="http://www.w3.org/1999/xhtml" class="bwalignc">
<i xmlns="http://www.w3.org/1999/xhtml">The expansion will be executed in phases, leveraging a disciplined, ROI-driven strategy to balance rapid scalability with prudent capital allocation</i>

</p><p xmlns="http://www.w3.org/1999/xhtml">
United Microelectronics Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/UMC">UMC</a>, TWSE: 2303)) ("UMC"), a leading global semiconductor foundry, today announced that its Board of Directors has approved a phased expansion plan to meet growing customer demand. The company will immediately expand cleanroom capacity in Singapore and simultaneously begin construction of a new fab building shell at its flagship Tainan campus in Taiwan.

</p><p xmlns="http://www.w3.org/1999/xhtml">
This dual-track approach is designed to meet near-term customer demand while establishing the structural footprint required to capture future high-growth AI and edge-computing applications. The strategy dramatically reduces future capacity lead times while keeping near-term capital expenditure tightly aligned with secured, long-term customer commitments.

</p><p xmlns="http://www.w3.org/1999/xhtml">
Stan Hung, Chairman of UMC, said: "The rise of generative AI has fundamentally shifted the technology landscape, accelerating demand for technologies enabling higher performance, higher bandwidth, and greater system integration. Today’s announcement is to ensure UMC is positioned to meet this demand through a phased strategy that balances speed, flexibility, and capital discipline."

</p><p xmlns="http://www.w3.org/1999/xhtml">
Chairman Hung added: "In Singapore, we will invest in the cleanroom installation of the Phase 4 (P4) facility and tool purchases to expand our silicon photonics capacity. With the building shell already built, we can expand cleanroom capacity efficiently as customer demand ramps. In Taiwan, we will construct a new fab building which will house future Phase 7 (P7) and Phase 8 (P8) facilities, creating a robust foundation for UMC to scale new technologies alongside customers’ long-term product roadmaps. This phased strategy allows UMC to maintain exceptional capital discipline, minimizing upfront depreciation while securing our position at the forefront of the AI-driven future."

</p><p xmlns="http://www.w3.org/1999/xhtml">
The new Tainan fab will reinforce Taiwan as UMC’s global hub for world-class manufacturing and cutting-edge R&amp;D, while expanding UMC’s advanced packaging footprint. The P4 expansion will strengthen Singapore as UMC’s largest site outside of Taiwan, supporting geographic diversification for supply chain resilience, as well as advanced technology development, including silicon photonics. These complementary investments will enhance the company’s ability to provide scalable manufacturing of key technologies supporting next-generation cloud and edge AI applications.

</p><p xmlns="http://www.w3.org/1999/xhtml">
<b xmlns="http://www.w3.org/1999/xhtml">About UMC</b>

</p><p xmlns="http://www.w3.org/1999/xhtml">
UMC (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/UMC">UMC</a>, TWSE: 2303)) is a leading global semiconductor foundry company. The company provides high-quality IC fabrication services, focusing on logic and various specialty technologies to serve all major sectors of the electronics industry. UMC’s comprehensive IC processing technologies and manufacturing solutions include Logic/Mixed-Signal, embedded High-Voltage, embedded Non-Volatile-Memory, RFSOI, BCD etc. Most of UMC&#39;s 12-in and 8-in fabs with its core R&amp;D are located in Taiwan, with additional ones throughout Asia. UMC has a total of 12 fabs in production with combined capacity of more than 400,000 wafers per month (12-in equivalent), and all of them are certified with IATF 16949 automotive quality standard. UMC is headquartered in Hsinchu, Taiwan, plus local offices in United States, Europe, China, Japan, Korea &amp; Singapore, with a worldwide total of 20,000 employees. For more information, please visit: <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.umc.com&amp;esheet=54579155&amp;newsitemid=20260729677740&amp;lan=en-US&amp;anchor=http%3A%2F%2Fwww.umc.com&amp;index=1&amp;md5=48d51cc6f66049962f354b00f315d5af" shape="rect">http://www.umc.com</a>.

</p><p xmlns="http://www.w3.org/1999/xhtml">
<b xmlns="http://www.w3.org/1999/xhtml">Note from UMC Concerning Forward-Looking Statements</b>

</p><p xmlns="http://www.w3.org/1999/xhtml">
Some of the statements in the foregoing announcement are forward-looking within the meaning of the U.S. Federal Securities laws, including statements about introduction of new services and technologies, future outsourcing, competition, wafer capacity, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks. Further information regarding these and other risks is included in UMC’s filings with the U.S. Securities and Exchange Commission. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

</p><p xmlns="http://www.w3.org/1999/xhtml"><img xmlns="http://www.w3.org/1999/xhtml" alt="" src="https://cts.businesswire.com/ct/CT?id=bwnews&amp;sty=20260729677740r1&amp;sid=benz2&amp;distro=nx&amp;lang=en" style="width:0;height:0"></img><span xmlns="http://www.w3.org/1999/xhtml" class="bwct31415"></span></p><p xmlns="http://www.w3.org/1999/xhtml" id="mmgallerylink"><span xmlns="http://www.w3.org/1999/xhtml" id="mmgallerylink-phrase">View source version on businesswire.com: </span><span xmlns="http://www.w3.org/1999/xhtml" id="mmgallerylink-link"><a xmlns="http://www.w3.org/1999/xhtml" href="https://www.businesswire.com/news/home/20260729677740/en/" rel="nofollow">https://www.businesswire.com/news/home/20260729677740/en/</a></span></p><p xmlns="http://www.w3.org/1999/xhtml">
<span xmlns="http://www.w3.org/1999/xhtml" class="bwuline">Media contact 
</span><br xmlns="http://www.w3.org/1999/xhtml"></br>UMC Corporate Communications
<br xmlns="http://www.w3.org/1999/xhtml"></br>Michelle Yun
<br xmlns="http://www.w3.org/1999/xhtml"></br>886-3-578-2258 x16951
<br xmlns="http://www.w3.org/1999/xhtml"></br><a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:michelle_yun@umc.com" shape="rect">michelle_yun@umc.com</a>

</p>

UMC Announces Fab Expansion in Singapore and Construction of New Fab in Tainan to Meet Accelerating AI Demand

UMC launches phased expansion to meet AI demand with Singapore and Taiwan capacity

Taiwanese chipmaker United Microelectronics Corp (UMC) said on Wednesday that ​its board approved an...

Taiwan's UMC raises 2026 capex, expands Singapore and Taiwan fabs for AI demand

<section class="insight" data-version="1">
  <section data-block="information">
    <h3>Information</h3>
    <p>The expansion will be executed in phases, leveraging a disciplined, ROI-driven strategy to balance rapid scalability with prudent capital allocation


United Microelectronics Corporation (NYSE:UMC, TWSE: 2303))</p>
  </section>

  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>UMC announced a phased expansion to add Singapore cleanroom capacity and begin a new Taiwan fab shell at its Tainan campus, targeting AI and edge computing demand. By tying capex to secured orders, the plan aims to shorten lead times and preserve capital discipline while expanding geographic diversification. The 12-fab network with &gt;400k wafers/month capacity could lift utilization and longer-term margin potential as AI demand scales.</p>
  </section>

  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>UMC approves phased expansion plan. Singapore cleanroom; Taiwan fab shell begin.</li><li>P4 expands Singapore capacity; P7/P8 facilities planned at Tainan.</li><li>Strategy links capex to secured orders, reducing lead times and preserving capital discipline.</li><li>Taiwan and Singapore expansions diversify geography and bolster AI/edge computing capabilities.</li></ul>
  </section>

  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>United Microelectronics Corporation (UMC)</strong>: Announces phased expansion to expand Singapore cleanroom and build a new Taiwan fab shell; potential near-term capacity and long-term EBITDA impact.</li></ul>
  </section>

  <section data-block="category">
    <h3>Corporate Developments</h3>
    <p>Corporate Developments: UMC&#039;s multi-site expansion reflects a strategic shift to scale AI/edge-ready capacity with disciplined capex and regional diversification, potentially enhancing long-run competitive positioning.</p>
  </section>

  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>Phased capex plan signals ramping capacity and potential utilization upside.</li><li>Singapore P4 and Taiwan P7/P8 timelines will shape near-term capex cadence.</li><li>AI/edge compute demand tailwinds support potential margin and share gains.</li></ul>
  </section>

  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>Board approved phased expansion: expand Singapore cleanroom (P4) and build Taiwan fab shell (P7/P8).</li><li>P4 in Singapore includes cleanroom installation and silicon photonics tooling.</li><li>New Taiwan fab shell will house future P7 and P8 facilities.</li><li>Total production: 12 fabs; capacity &gt;400,000 wafers per month (12-in equivalent).</li><li>All fabs certified to IATF 16949 automotive quality standard.</li><li>Employees: approximately 20,000 globally.</li><li>Announcement date: July 29, 2026.</li></ul>
  </section>

  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>Bullish over the next 12–18 months as capacity ramps align with AI/edge computing demand.</p>
  </section>
</section>


<p xmlns="http://www.w3.org/1999/xhtml" class="bwalignc">
<i xmlns="http://www.w3.org/1999/xhtml">The expansion will be executed in phases, leveraging a disciplined, ROI-driven strategy to balance rapid scalability with prudent capital allocation</i>

</p><p xmlns="http://www.w3.org/1999/xhtml">
United Microelectronics Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/UMC">UMC</a>, TWSE: 2303)) ("UMC"), a leading global semiconductor foundry, today announced that its Board of Directors has approved a phased expansion plan to meet growing customer demand. The company will immediately expand cleanroom capacity in Singapore and simultaneously begin construction of a new fab building shell at its flagship Tainan campus in Taiwan.

</p><p xmlns="http://www.w3.org/1999/xhtml">
This dual-track approach is designed to meet near-term customer demand while establishing the structural footprint required to capture future high-growth AI and edge-computing applications. The strategy dramatically reduces future capacity lead times while keeping near-term capital expenditure tightly aligned with secured, long-term customer commitments.

</p><p xmlns="http://www.w3.org/1999/xhtml">
Stan Hung, Chairman of UMC, said: "The rise of generative AI has fundamentally shifted the technology landscape, accelerating demand for technologies enabling higher performance, higher bandwidth, and greater system integration. Today’s announcement is to ensure UMC is positioned to meet this demand through a phased strategy that balances speed, flexibility, and capital discipline."

</p><p xmlns="http://www.w3.org/1999/xhtml">
Chairman Hung added: "In Singapore, we will invest in the cleanroom installation of the Phase 4 (P4) facility and tool purchases to expand our silicon photonics capacity. With the building shell already built, we can expand cleanroom capacity efficiently as customer demand ramps. In Taiwan, we will construct a new fab building which will house future Phase 7 (P7) and Phase 8 (P8) facilities, creating a robust foundation for UMC to scale new technologies alongside customers’ long-term product roadmaps. This phased strategy allows UMC to maintain exceptional capital discipline, minimizing upfront depreciation while securing our position at the forefront of the AI-driven future."

</p><p xmlns="http://www.w3.org/1999/xhtml">
The new Tainan fab will reinforce Taiwan as UMC’s global hub for world-class manufacturing and cutting-edge R&amp;D, while expanding UMC’s advanced packaging footprint. The P4 expansion will strengthen Singapore as UMC’s largest site outside of Taiwan, supporting geographic diversification for supply chain resilience, as well as advanced technology development, including silicon photonics. These complementary investments will enhance the company’s ability to provide scalable manufacturing of key technologies supporting next-generation cloud and edge AI applications.

</p><p xmlns="http://www.w3.org/1999/xhtml">
<b xmlns="http://www.w3.org/1999/xhtml">About UMC</b>

</p><p xmlns="http://www.w3.org/1999/xhtml">
UMC (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/UMC">UMC</a>, TWSE: 2303)) is a leading global semiconductor foundry company. The company provides high-quality IC fabrication services, focusing on logic and various specialty technologies to serve all major sectors of the electronics industry. UMC’s comprehensive IC processing technologies and manufacturing solutions include Logic/Mixed-Signal, embedded High-Voltage, embedded Non-Volatile-Memory, RFSOI, BCD etc. Most of UMC&#39;s 12-in and 8-in fabs with its core R&amp;D are located in Taiwan, with additional ones throughout Asia. UMC has a total of 12 fabs in production with combined capacity of more than 400,000 wafers per month (12-in equivalent), and all of them are certified with IATF 16949 automotive quality standard. UMC is headquartered in Hsinchu, Taiwan, plus local offices in United States, Europe, China, Japan, Korea &amp; Singapore, with a worldwide total of 20,000 employees. For more information, please visit: <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.umc.com&amp;esheet=54579155&amp;newsitemid=20260729677740&amp;lan=en-US&amp;anchor=http%3A%2F%2Fwww.umc.com&amp;index=1&amp;md5=48d51cc6f66049962f354b00f315d5af" shape="rect">http://www.umc.com</a>.

</p><p xmlns="http://www.w3.org/1999/xhtml">
<b xmlns="http://www.w3.org/1999/xhtml">Note from UMC Concerning Forward-Looking Statements</b>

</p><p xmlns="http://www.w3.org/1999/xhtml">
Some of the statements in the foregoing announcement are forward-looking within the meaning of the U.S. Federal Securities laws, including statements about introduction of new services and technologies, future outsourcing, competition, wafer capacity, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks. Further information regarding these and other risks is included in UMC’s filings with the U.S. Securities and Exchange Commission. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

</p><p xmlns="http://www.w3.org/1999/xhtml"><img xmlns="http://www.w3.org/1999/xhtml" alt="" src="https://cts.businesswire.com/ct/CT?id=bwnews&amp;sty=20260729677740r1&amp;sid=benz2&amp;distro=nx&amp;lang=en" style="width:0;height:0"></img><span xmlns="http://www.w3.org/1999/xhtml" class="bwct31415"></span></p><p xmlns="http://www.w3.org/1999/xhtml" id="mmgallerylink"><span xmlns="http://www.w3.org/1999/xhtml" id="mmgallerylink-phrase">View source version on businesswire.com: </span><span xmlns="http://www.w3.org/1999/xhtml" id="mmgallerylink-link"><a xmlns="http://www.w3.org/1999/xhtml" href="https://www.businesswire.com/news/home/20260729677740/en/" rel="nofollow">https://www.businesswire.com/news/home/20260729677740/en/</a></span></p><p xmlns="http://www.w3.org/1999/xhtml">
<span xmlns="http://www.w3.org/1999/xhtml" class="bwuline">Media contact 
</span><br xmlns="http://www.w3.org/1999/xhtml"></br>UMC Corporate Communications
<br xmlns="http://www.w3.org/1999/xhtml"></br>Michelle Yun
<br xmlns="http://www.w3.org/1999/xhtml"></br>886-3-578-2258 x16951
<br xmlns="http://www.w3.org/1999/xhtml"></br><a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:michelle_yun@umc.com" shape="rect">michelle_yun@umc.com</a>

</p>

UMC announced a phased expansion to add Singapore cleanroom capacity and begin a new Taiwan fab shell at its Tainan campus, targeting AI and edge computing demand. By tying capex to secured orders, the plan aims to shorten lead times and preserve capital discipline while expanding geographic diversification. The 12-fab network with >400k wafers/month capacity could lift utilization and longer-term margin potential as AI demand scales.

News insight

UMC Announces Fab Expansion in Singapore and Construction of New Fab in Tainan to Meet Accelerating AI Demand

AI summary

Sentiment rationale

Key facts

Corporate Developments