United Microelectronics Partners For Capacity Development At Tainan Science Park - United Microelectronics (NYSE:UMC)

Semiconductor foundry United Microelectronics Corp UMC has announced its plans to develop capacity at its 300mm Fab 12A Phase 6 (P6) in Taiwan’s Tainan Science Park through a partnership with its multiple global customers.
The customers will make a deposit to secure their long-term chip supply at P6 at pre-determined pricing to foster UMC’s organic growth, accomplish long-term profitability and market relevance goals.
The P6 expansion was scheduled for production in the second quarter of 2023, with a total investment of NT$100 billion (roughly $3.58 billion).
UMC’s total investment in the Tainan Science Park will reach NT$150 billion over the next three years, including UMC’s previously announced 2021 capital expenditure (Capex) of $1.5 billion. The major chunk of the Capex was earmarked for equipment for the company’s Fab 12A P5 site adjacent to the P6.
Fab 12A is presently operating at a 90K 300mm wafers per month (wpm) capacity, with an additional 10K wpm installation at the P5 from 2021.
The P6 project will add 27.5K more wpm production ability when fully equipped. UMC is also planning to hire an additional 1000 employees to support this and other operations.
Price action: UMC shares traded lower by 2.40% at $10.56 in the premarket session on the last check Wednesday.