Taiwan chipmaker United Microelectronics will spend T$100 billion ($3.59 billion) over the next three years to expand capacity and will guarantee supplies and prices to its clients as part of the plan, amid a global chip shortage.
Co-president Jason Wang told an earnings call the expansion will take place at an existing UMC facility in the Tainan Science Park, with production scheduled to start from the second quarter of 2023, Reuters reported.
UMC’s total investment in the science park will reach $T150 billion over the next three years.
UMC operated at full capacity in the first quarter and demand will outpace supply in the second quarter.
UMC said the expansion of its capacity is supported by a multi-year product alignment with its unidentified customers.
Customers will make a deposit that secures their long-term chip supply at the expanded plant using pre-determined pricing. It did not name the customers.
UMC’s clients include Qualcomm and Germany’s Infineon.
Taiwan Semiconductor Manufacturing (TSMC), the world’s largest contract chipmaker, plans to invest $100 billion over the next three years to increase capacity at its plants.
Intel announced a $20 billion plan to expand its capacity.
