UMC Invests $5B On New Chip Plant In Singapore: All You Need To Know - United Microelectronics (NYSE:UMC)

United Microelectronics Corp's UMC board approved a plan to build a new advanced manufacturing facility next to its existing 300mm fab (Fab12i) in Singapore.
The first phase of this greenfield fab will have a monthly capacity of 30,000 wafers, with production likely to commence in late 2024.
The new fab (Fab12i P3) will be one of Singapore's most advanced semiconductor foundries, providing UMC's 22/28nm processes.
UMC has a planned investment for this project of $5 billion. It will increase the 2022 Capex budget to $3.6 billion to account for the Fab12i expansion.
Stan Hung, Chairman of UMC, said: "The semiconductor undersupply has crystallized the need for greater visibility and mutual risk mitigation within the industry. This investment is the result of the shared vision and close collaborations with our key customers."
The new fab has backing from customers who have signed multi-year supply agreements to secure capacity from 2024 and beyond.
Price Action: UMC shares traded lower by 3.19% at $9.11 in the premarket on the last check Thursday.