28nm Contracts Inundating UMC Production Lines Amid Supply Shortage

Taipei, May 17, 2012 (CENS)--Industry executives pointed out that United Microelectronics Corp. (UMC) has won 80 28nm tapeouts, making it the foremost beneficiary amid the severe supply shortage of the leading-edge process capacity at Taiwan Semiconductor Manufacturing Co. (TSMC).

UMC, the world's No.2 pure silicon foundry supplier, entered general production based on 28nm process technology in the first quarter, lagging behind No.1 player TSMC. However, tight supply of the process at TSMC has inspired 28nm process buyers to turn to UMC and other suppliers, such as GlobalFoundries and Samsung.

To keep up with robust demand for 28nm process capacity, UMC has begun adjusting process-capacity portfolios to make room for 28nm process foundry.

This year, primary buyers of UMC's 28nm process capacity would be Texas Instruments (TI) and Qualcomm. TI's ARM-based multi-core processor OMAP 5 is a 28nm process product while Qualcomm has contracted UMC to make its integrated baseband chips in the pilot stage.

UMC will start another expansion plan to boost output capacity at its Fab 12A in the Southern Taiwan Science Park to cope with flooding orders. The expansion plan is estimated to add 50,000-60,000 wafers a month at the factory when it is completed.

TSMC will budget US$8-8.5 billion for expansion this year, with 28nm process capacity being the primary expansion item. Its Fab 15's first-phase project has entered volume production and is planned to rise output to 50,000 wafers of 28nm chips by the end of this year.

Buyers of TSMC's 28nm process capacity include Qualcomm, Broadcom, Nvidia and AMD.