United Microelectronics Corp. (UMC) opened the first phase of its newly-built $5 billion advanced manufacturing facility in Singapore as the proliferation of artificial intelligence applications boosts demand for more complex chips.
The facility in the eastern Singapore town of Pasir Ris can produce up to 30,000 wafers per month when full production starts in 2026, Hsinchu, Taiwan-based company said in a statement on Tuesday. It will boost UMC’s total production capacity in Singapore by 47% to more than 1 million wafers annually, with room for further expansion, it added.
“This new state-of-the-art facility in Singapore signals a new phase of growth for UMC,” company president Shan-Chieh Chien said in the statement. “It enhances our ability to meet future chip demand, driven by continuous innovations in connectivity, automotive and AI.”
Singapore—a major chip manufacturing hub—has in recent years been attracting new investments from global semiconductor companies. Last year, Vanguard International Semiconductor partnered with Netherland’s NXP Semiconductors to build a $7.8 billion wafer fabrication facility in the Lion City, while GlobalFoundries opened a $4 billion plant in 2023.
UMC’s new facility will be one of the most advanced semiconductor foundries in Singapore. The company said it will manufacture semiconductors for communications, automotive, and AI innovations.
“The unique geography of Singapore also makes the new facility well placed to support our customers in strengthening supply chain resilience,” Chien said.
The expansion will create about 700 jobs locally over the next few years, including process and equipment engineers as well as research and development engineers, UMC said.
“This new fab introduces new leading edge specialty semiconductor capabilities and production capacity that will enhance Singapore’s competitiveness as a critical node in the global semiconductor supply chain,” Jermaine Loy, Singapore Economic Development Board’s managing director, said.
