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UMC expands AI manufacturing

Monday 3rd August 2026

News

The foundry will expand silicon photonics capacity in Singapore and strengthen its advanced packaging footprint with a new fab development in Taiwan to support growing AI demand.

United Microelectronics Corporation (UMC) has announced a phased expansion strategy that will increase manufacturing capacity in Singapore while laying the groundwork for future growth at its flagship Tainan campus in Taiwan.

The company's Board of Directors has approved the immediate expansion of cleanroom capacity at its Phase 4 (P4) facility in Singapore, alongside the construction of a new fab building shell in Tainan that will accommodate future Phase 7 (P7) and Phase 8 (P8) facilities.

According to UMC, the investments are designed to address growing customer demand driven by AI and edge computing while maintaining capital discipline.

The Singapore expansion will increase the company's silicon photonics manufacturing capacity, while the new Tainan facility will strengthen UMC's advanced packaging footprint and reinforce Taiwan as its global hub for manufacturing and R&D.

"The rise of generative AI has fundamentally shifted the technology landscape, accelerating demand for technologies enabling higher performance, higher bandwidth, and greater system integration," said Stan Hung, chairman of UMC.

"Today's announcement is to ensure UMC is positioned to meet this demand through a phased strategy that balances speed, flexibility, and capital discipline."

UMC said the complementary investments will enhance its ability to deliver scalable manufacturing for key technologies supporting next-generation cloud and edge AI applications while strengthening supply chain resilience through its expanded Singapore operations.