UMC Opens New Fab in Singapore, Boosting Production Capacity

On April 1, Taiwan-based semiconductor foundry United Microelectronics Corporation (UMC) inaugurated an expanded facility at its Fab 12i plant in Singapore. The first phase of the new fab is set to begin mass production in 2026, increasing total capacity to over 1 million 12-inch wafers per year.

UMC's new Singapore facility will be one of the most advanced semiconductor fabs in the country, producing chips for communication, IoT, automotive, and AI applications. The expansion project is divided into two phases, with $5 billion allocated for the first phase, which aims to add 30,000 wafers per month while reserving space for a second phase of future expansion.

The new fab will focus on 22nm and 28nm process technologies, the most advanced semiconductor manufacturing capabilities in Singapore. These nodes will support high-performance memory chips for IoT devices, next-generation communication chips, and high-end smartphone display drivers. The expansion is expected to create around 700 new jobs in process engineering, equipment maintenance, and R&D.

“This new fab marks a major milestone for UMC,” said Stan Hung, President of UMC. “It will help us meet growing demand for connectivity, automotive, and AI-driven innovations. Singapore's strategic location also strengthens our customers' supply chain resilience.”

Singapore's Economic Development Board (EDB) welcomed the investment, emphasizing its role in reinforcing Singapore's position as a key player in the global semiconductor supply chain. “This fab brings in advanced process technologies and additional capacity, strengthening our long-standing partnership with UMC,” said EDB Chairman Beh Swan Gin.

UMC also highlighted its commitment to sustainability. The Fab 12i expansion received Singapore's Green Mark GoldPlus certification, and the facility will feature 17,949 square meters of rooftop solar panels as part of UMC's goal to transition to 100% renewable energy by 2050. The project also includes a new office building, a multi-purpose sports hall, and recreational facilities for employees and the local community.

Wistron Invests $50M to Build U.S. Facility Amid Tariff Pressure

On April 2, Wistron Corporation, a major Taiwanese electronics manufacturer, announced a $50 million investment to establish a new subsidiary and production facility in the United States. The newly formed company, Wistron InfoComm (USA) Corporation (WIUS), will have an initial registered capital of $45 million, with plans to acquire land and a factory within a $50 million budget.

The move is widely seen as a response to new U.S. tariff policies under former President Donald Trump, which include a proposed 25% tariff on goods imported from Mexico—a key manufacturing hub for Taiwanese server makers.

Taiwanese ODM (original design manufacturer) firms currently produce over 90% of the world's server motherboards and 80% of complete server systems, but less than 15% of their capacity is based in North America. The new tariffs are expected to increase production costs in Mexico, pushing more manufacturers to establish facilities directly in the U.S.

Wistron is following the lead of other Taiwanese server makers expanding into the U.S.:

 ● Foxconn (Hon Hai) announced a $33 million investment in Houston, Texas, to produce AI servers.

 ● Quanta is investing $230 million in its Tennessee subsidiary QMN, bringing its total U.S. investment to $1.23 billion in 2024.

With U.S. demand for locally produced servers growing, Wistron's new plant will likely focus on server manufacturing to serve its North American enterprise and cloud customers.