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Taiwan's UMC opens $5 billion Singapore facility to make AI, automotive chips

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United Microelectronics Company (UMC) has built a new $5 billion premium manufacturing plant in Singapore as the spread of artificial intelligence applications enhances the demand for more complex chips.

Taiwan-based company said in a company statement Tuesday. It added that it will increase UMC's total production capacity in Singapore by 47%, exceeding 1 million Wafs per year.

“Singapore’s new state-of-the-art facility marks a new growth phase for UMC,” said Shan-Chieh Chien, CEO of the company, in a statement. “This enhances our ability to meet future chip demands driven by continuous innovation in connectivity, automotive and artificial intelligence.”

Singapore – Professional chip Manufacturing Center – In recent years, it has attracted new global investments Semiconductor companies. Last year, Vanguard International Semiconductor collaborated with NXP Semiconductor in the Netherlands to build a $7.8 billion wafer manufacturing facility in Lion City, and Globalfouldries opened a $4 billion factory in 2023.

UMC's new facility will be one of Singapore's most advanced semiconductor foundries. The company said it will manufacture semiconductors for innovations in communications, automobiles and AI.

“Singapore's unique geography also makes the new facilities fully utilized to support our customers to enhance the resilience of the supply chain,” Chien said.

UMC said the expansion will create about 700 local jobs in the coming years, including process and equipment engineers and R&D engineers.

“This new plant introduces new cutting-edge specialized semiconductor capabilities and production capacity, which will enhance Singapore's competitiveness as a key node in the global semiconductor supply chain,” said Jermaine Loy, managing director of the Singapore Economic Development Council.

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