Taiwan-based pure-play foundry UMC plans to invest a total of US$1.25 billion in its China-based plants where production capacity will be expanded to meet local demand, said company co-president SC Chien at a recent event in Shanghai.

UMC's 12-inch fab in Xiamen named United Semi and Hejian Technology, its 8-inch fab in Suzhou, as well as United DS Semiconductor, a Shandong-based subsidiary of it specializing in IC design services, will assist UMC in building its local presence in China, said Chien.

At United Semi, 28nm and 40nm production yield rates have both reached mature levels, Chien indicated. The 12-inch foundry will enhance its offering to include 22nm process, as well as specific process variants for 28nm and 22nm.

Both 28nm and 22nm process technologies will be the future focus of United Semi, said Chien, adding that the 12-inch foundry is looking to expand its client portfolio and deliver economies of scale as soon as possible.

Monthly production capacity at United Semi is set to reach 25,000 wafers for its first phase of expansion, Chien disclosed. United Semi will break even when its monthly production reaches the 25,000 units level, Chien said.

United Semi will build additional production capacity according to customer demand, and will not "blindly" expand capacity, Chien noted.

UMC expects to see its overall revenues generated from the China market grow at a CAGR of 15% from 2018 to 2020, according to Chien.

By: DocMemory
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