UMC - UMC approves new 22nm wafer fab in Singapore

United Microelectronics Corporation (NYSE:UMC) has approved a plan to build a new advanced manufacturing facility next to its existing 300mm fab (Fab12i) in Singapore. The investment for this project will be $5B and to account for this, the company’s 2022 capex budget will be revised upward to $3.6B. The first phase of this greenfield fab will have a monthly capacity of 30,000 wafers with production expected to commence in late 2024. The project is backed by customers who have signed multi-year supply agreements in order to secure capacity from 2024 and beyond, which points to robust demand outlook for UMC’s 22/28nm technologies for years to come, driven by 5G, IoT, and automotive mega-trends. Stock down 4% premarket.

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UMC approves new 22nm wafer fab in Singapore