UMC, Intel 12nm Process Validation Due Next Year

United Microelectronics Corporation (UMC) has recently released its 2024 annual operational report, highlighting significant progress in its collaboration with Intel on the development of a 12nm FinFET process technology platform. This project is on track, with process development and validation expected to be completed by 2026. Additionally, UMC provided updates on advancements in the packaging sector, including successful development of wafer-level hybrid bonding technology and 3D IC heterogeneous integration, which will support both edge and cloud AI applications.

Despite challenges in the global semiconductor industry, UMC posted a solid performance for 2024, with earnings per share of NT$3.80. With increasing production capacity from competitors in mature process technologies, UMC is shifting its focus to special processes and differentiated applications, positioning itself for success in the growing AI market.

UMC emphasized that its 12nm FinFET process technology, developed in collaboration with Intel, is progressing smoothly and is expected to meet the company's target for mass production in 2027. This partnership is seen as a key strategy for expanding cost-effective production capacity and driving technological upgrades, with strong optimism about its commercial potential. Market observers have recognized the competitiveness of UMC's 12nm technology.

In the area of advanced packaging, UMC has successfully utilized wafer-level hybrid bonding (W2W) technology to achieve reduced product size. The technology has passed product validation and is expected to enter mass production later this year. The company has also established a W2W 3D IC project for edge AI applications, with ongoing validation for heterogeneous integration of logic chips and customized memory. Furthermore, UMC has successfully integrated Deep Trench Capacitors (DTC) into silicon interposers to ensure power integrity for 2.5D packaged chips, with product validation completed and trial production underway.

In 2024, UMC invested approximately US$2.9 billion in capital expenditures, primarily to expand capacity at its Tainan Fab 12A, Singapore Fab 12i, and China Fab 12X, while optimizing product portfolios across these facilities. UMC emphasized that its diverse manufacturing base, which includes operations in Taiwan, Singapore, Japan, and China, provides a competitive advantage by offering flexible supply chain options in a geopolitically complex environment.

The company's research and development spending in 2024 totaled NT$15.6 billion, enabling the successful development of technologies such as the 22nm image signal processor, the 28nm embedded high-voltage low-power process platform, and GaN (gallium nitride) component processes.

Notably, UMC's GaN RF switch process has entered mass production, while its GaN RF power amplifier (PA) process and 650V GaN power component process are currently undergoing customer product validation and trial production stages.