UMC Commits $5 Billion to Advanced Semiconductor Hub in Singapore: 22nm Fab to Reshape Regional Manufacturing Landscape

United Microelectronics Corporation (UMC), one of the world’s leading semiconductor foundries, has officially launched its most ambitious regional expansion project with a groundbreaking ceremony for its new advanced fabrication facility in Singapore. The investment represents a strategic move to consolidate the company’s position in the Asia-Pacific semiconductor ecosystem.

Investment Scale and Production Capacity

The Singapore expansion marks a significant capital commitment, with UMC allocating up to US$5 billion to develop the facility in two distinct phases. The first phase is engineered to achieve monthly production capacity of 30,000 wafers, translating to over 1 million wafers annually when combined with UMC’s existing Singapore operations. Volume production is slated to commence in 2026, positioning the new fab among the most technologically advanced semiconductor manufacturing centers in the region.

The greenfield expansion is strategically positioned adjacent to UMC’s current facility in the Pasir Ris Wafer Fab Park, enabling seamless integration with existing operations while maintaining room for future second-phase growth.

Technological Capabilities and Market Applications

The newly established manufacturing center will be equipped with UMC’s cutting-edge 22nm and 28nm process technologies – representing the most advanced foundry solutions currently available in Singapore’s semiconductor sector. These capabilities unlock manufacturing possibilities across multiple high-growth verticals, including premium display processors for smartphones, power-optimized memory solutions for Internet of Things (IoT) applications, connectivity chips for next-generation networks, and semiconductor components for artificial intelligence systems.

The facility’s process technologies serve as a critical enabler for companies developing products in connectivity, automotive, and AI-driven applications – sectors experiencing accelerating demand for specialized chip solutions.

Economic and Employment Impact

Beyond manufacturing metrics, the expansion carries substantial local economic implications. UMC projects the creation of approximately 700 new positions within the coming years, encompassing process engineers, equipment specialists, research and development personnel, and related technical roles. This employment growth strengthens Singapore’s talent pipeline within the high-tech semiconductor sector.

The project underscores Singapore’s strategy to establish itself as a critical manufacturing hub within global semiconductor supply chains, with government leadership actively supporting the expansion. The ceremony drew prominent officials including Deputy Prime Minister Gan Kim Yong, Senior Minister Teo Chee Hean, Permanent Secretary Beh Swan Gin, Singapore Economic Development Board Managing Director Jermaine Loy, and other key stakeholders.

Sustainability and Infrastructure Development

The new facility integrates rigorous environmental standards, having achieved Green Mark GoldPlus certification from Singapore’s Building and Construction Authority. The design incorporates 17,949 square meters of rooftop solar capacity, aligning with UMC’s corporate commitment to transition toward 100% renewable energy operations by 2050.

The expansion extends beyond manufacturing infrastructure, incorporating a dedicated office complex, a full-scale multipurpose sports facility, and employee amenities, reflecting UMC’s commitment to creating a comprehensive operational ecosystem.

Strategic Significance for Supply Chain Resilience

UMC President SC Chien emphasized that the expansion signals a critical growth phase, enhancing the company’s ability to fulfill emerging global chip demand while strengthening supply chain resilience through geographic diversification. Singapore’s unique regional positioning provides strategic advantages for serving multinational customers across Asia and beyond.

The investment aligns with both UMC’s corporate growth trajectory and Singapore’s broader vision of establishing advanced manufacturing dominance, deepening the long-standing partnership between the semiconductor leader and the nation-state.