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UMC: 28nm chips may oversupply after 2023

SemiMediaEdit
February 2, 2022

Jason Wang, co-president of UMC, said in an interview with the media recently that the 28nm market may be oversupplied after 2023.

"Based on the capacity expansion plans announced by various manufacturers, we do believe that the oversupply of 28nm will occur after 2023. Given that 28nm will be a sweet spot for many applications, demand will continue to grow," Jason Wang said.

UMC said its planned capital expenditure of $3 billion this year includes its Fab 12A P6 expansion plan in partnership with customers, which will target a monthly output of 32,500 wafers.

P6, the Phase 6 facility at UMC Fab 12A, will be equipped with flexible tools to produce 28nm or smaller nodes down to 14nm. Jason Wang said the expanded P6 plant is expected to start production in the second quarter of 2023.

Jason Wang also revealed that up to 80% of UMC's orders for 28nm manufacturing are multi-year contracts.

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