UMC Wins Qualcomm HPC Packaging Deal, Challenging TSMC

According to a report from Taiwan's Economic Daily News, United Microelectronics Corporation (UMC) has successfully secured a major contract for advanced packaging of Qualcomm's high-performance computing (HPC) products. These advanced packaging technologies are expected to be applied in AI PCs, automotive systems, and the rapidly growing AI server market, including integration with high-bandwidth memory (HBM). This deal marks a significant shift in the advanced packaging industry, which has traditionally been dominated by a few key players, such as TSMC, Intel, and Samsung.

While UMC has not directly commented on the rumors surrounding this deal, the company emphasized that advanced packaging is a key focus of its growth strategy. UMC plans to collaborate with its subsidiaries, including Faraday Technology and Silicon Integrated Systems (SIS), as well as memory supply partner Winbond, to develop a comprehensive advanced packaging ecosystem.

Currently, UMC's involvement in advanced packaging primarily revolves around providing intermediate layers (Interposers) for RF-SOI processes, which contribute relatively little to its overall revenue. The global market for advanced packaging remains largely controlled by TSMC. However, with Qualcomm reportedly adopting UMC's advanced packaging processes for its HPC chips, this deal marks an important step for UMC, potentially disrupting the dominance of major players like TSMC in the market.

Sources close to the matter reveal that Qualcomm plans to use TSMC's advanced processes for mass production of its custom Oryon architecture cores and then entrust UMC with the advanced packaging of the wafers. The chips will likely use UMC's WoW Hybrid Bonding technology, signaling the company's full entry into the advanced packaging market.

Industry analysts suggest that Qualcomm's decision to use UMC's advanced packaging, particularly its wafer stacking technology combined with PoP (Package on Package) packaging, will help enhance signal transmission efficiency between chips. This approach is set to replace traditional solder ball packaging, reducing signal transmission distance and improving computational performance without requiring upgrades to the wafer manufacturing process.

A crucial element of advanced packaging is the intermediate layer, made using photolithography, and ultra-precise Through-Silicon Vias (TSV) that enable 2.5D or 3D chip stacking for inter-chip communication. UMC's capability to produce intermediate layers and its decade-long experience in TSV processing for AMD's GPU chips provide a strong foundation for the company's advanced packaging capabilities. These factors have likely contributed to UMC becoming Qualcomm's preferred partner in this area.

Industry expectations are that Qualcomm's new high-performance computing chips, built using UMC's advanced packaging processes, will enter trial production in the second half of 2025, with mass production slated for 2026.