Taiwanese semiconductor company United Microelectronics Corp (UMC) has announced its new fabrication (fab) facility in Singapore.

Located adjacent to the company’s existing fab facility in Pasir Ris Wafer Fab Park, this new site will be developed in two stages. In the initial phase, UMC will invest up to $5bn, with the possibility of further investment for a second phase expansion.

The initial phase of operations will commence volume production in 2026. Upon reaching full operational capacity, this phase will achieve a production output of up to 30,000 wafers monthly. Consequently, UMC’s aggregate annual wafer production capacity within Singapore will exceed one million units.

The new facility features UMC’s 22nm and 28nm processes offering advanced solutions. It will manufacture key components like premium smartphone display drivers, efficient IoT memory chips, and advanced connectivity chips.

UMC’s new site will reportedly create around 700 jobs. These include process and equipment engineers as well as research and development engineers.

SC Chien, president of UMC, stated that the new fab facility enhances the company’s ability to address future chip demands. He also thanked the Government of Singapore for their support.

“The unique geography of Singapore also makes the new facility well-placed to support our customers in strengthening supply chain resilience,” he added.

Headquartered in Hsinchu City, Taiwan, UMC operates across Taiwan, China, Japan, Korea, Singapore, Hong Kong, Europe, and the US. It has over 20,000 employees globally.