UMC Announces Expanded Capex for AI Demand with Fab Expansions in Singapore and Taiwan
Taiwanese chipmaker United Microelectronics Corp (UMC) has approved a multi-phase expansion plan to meet growing demand driven by artificial intelligence applications. The company will expand cleanroom capacity at its Singapore facility, which supports silicon photonics production, as well as construct new fab buildings in Tainan for future facilities. The 2026 capital expenditure budget is being raised to $2 billion and the firm plans a total of around $5 billion in capex over both 2026 and 2027. UMC expects AI-related revenue to reach about $300 million this year, with projections exceeding $1 billion within three years. UMC's second-quarter results showed strong performance: revenue rose by 17% from a year ago to T$68.73 billion ($2.12 billion), and net income surged 374.7%. Despite these gains, UMC shares fell nearly 9.69% on Wednesday ahead of the earnings release.
Topics: AI demand capital expenditure chip manufacturing expansion semiconductor industry growth