UMC Invests $5 Billion in New Singapore Fab Amid AI Demand

SINGAPORE – United Microelectronics Corporation (UMC), a leading Taiwanese semiconductor manufacturer, has announced the launch of a new fabrication plant in Singapore, marking a significant investment of approximately $5 billion (S$6.4 billion). This facility, located adjacent to UMC's existing fab in the Pasir Ris Wafer Fab Park, is scheduled to begin commercial production in early 2026 and will focus on advanced chip manufacturing essential for artificial intelligence (AI) applications.

The new plant will expand UMC’s annual production capacity of integrated circuit wafers to 1.3 million, making Singapore its largest production base outside of Taiwan. According to UMC's general manager, Thomas Tey, the company plans to double its workforce in Singapore from around 1,200 employees to support this expansion, which will also enhance its research and development capabilities focused on cutting-edge technologies for AI workloads.

“The new fab enhances the chipmaker’s ability to meet demand and enhance its supply chain resilience.”S.C. Chien, co-president of UMC

UMC’s investment comes at a time when the demand for semiconductors, particularly those used in AI data centers, is surging. The new facility will utilize mature 22-nanometer and 28-nanometer process technologies, producing chips for premium smartphone displays, power-efficient memory for Internet of Things (IoT) devices, and next-generation connectivity solutions. This strategic move is part of UMC's efforts to diversify its manufacturing footprint amid increasing geopolitical risks, as indicated by the Taipei Times.

“UMC will also double its number of skilled employees in Singapore from around 1,200 now to support the expansion.”Thomas Tey, general manager of UMC

The expansion is expected to create approximately 700 jobs, including roles for engineers focused on process and equipment as well as research and development specialists. UMC's co-president, S.C. Chien, emphasized that this new fab will enhance the company’s ability to meet global demand and strengthen its supply chain resilience.

Singapore has long been a critical hub in the semiconductor supply chain, benefiting from a stable political environment, robust infrastructure, and strategic geographic location. The Singapore government is actively promoting its 'Manufacturing 2030' initiative, which aims to bolster the local semiconductor ecosystem through policy support and talent development. UMC's expansion aligns with this vision, positioning Singapore as a key player in the semiconductor industry amidst rising global competition.