Producers continue to make new investments during the pandemic period when chip production cannot keep up with the demand. UMC will try to solve the stock shortage by producing at the old production node.
The demand, which has increased with the pandemic, is well above the dice supply in the market. Manufacturers are pushing the limits of their production capacity while also developing new strategies.
Old nodes back to work
With its announcement, UMC announced that it will invest $ 3.6 billion in its new facilities that will produce at 28 nm. The company, which will wipe the dust on the old production node and use it again, aims to keep up with the demand in the market.
On the other hand, the method of reproducing in old nodes is not the first. In this way, the burden on the total capacity of the equipment that does not need the latest production technology will be alleviated.
The company, which produces 90,000 membranes in Fab 12A, which currently produces 300 mm dice, will gain an additional 10 000 dice capacity with its facilities to be established this year. When the 6th phase passes, an additional 27 500 wpm (monthly membrane production capacity) capacity will be added to the total capacity.
UMC has already agreed with the customer. Accordingly, customers who purchased capacity in advance are secured against price fluctuations in the future. In addition, UMC estimates that the investment will create 1000 jobs.