According to reports, UMC, Taiwan's second-largest semiconductor foundry, is actively evaluating the feasibility of entering the advanced process manufacturing segment—currently dominated by TSMC, Samsung, and Intel.
According to sources familiar with the matter, UMC is considering the production of 6nm chips as a potential driver for future growth. The 6nm process is well-suited for manufacturing advanced connectivity chips, such as those used in Wi-Fi, RF, and Bluetooth, as well as AI accelerators and processors for automotive and television applications.
Industry insiders also revealed that UMC is exploring strategic partnerships, including potential expansion of its existing 12nm collaboration with Intel. The companies are reportedly planning to commence 6nm production in Arizona before 2027, signaling UMC's interest in deepening its role in leading-edge manufacturing through international cooperation.
UMC CFO Chi-tung Liu confirmed to Nikkei Asia that the company continues to explore more advanced technologies. However, he emphasized that meaningful progress would require strong partnerships to help offset the significant financial burden of entering such capital-intensive domains. Liu declined to comment on whether the company would broaden its cooperation with Intel beyond the 12nm process. Intel also refrained from commenting.
In addition to node advancements, UMC is said to be exploring growth opportunities in advanced packaging—an area increasingly vital for performance-driven chip solutions.
As the world's fourth-largest pure-play foundry, UMC faces growing competitive pressure amid escalating U.S.–China tech tensions. China's push for semiconductor self-sufficiency has significantly boosted the market share of local players like SMIC. SMIC has now overtaken UMC in global foundry revenue, backed by strong domestic demand and state investment—its market capitalization is reportedly three times that of UMC.
According to a senior executive in the supply chain, UMC recognizes the heightened competition in mature node manufacturing and urgently needs new growth catalysts to sustain its market position. As some customers shift orders to Chinese foundries due to localization efforts, UMC is compelled to seek diversification in both technology and geography.
However, industry leaders note that one of the biggest challenges for UMC in adopting 6nm production is the massive capital expenditure required, along with the need to secure sufficient customer demand to utilize the new capacity.
To mitigate these challenges, Liu mentioned that any move into advanced nodes would likely follow an "asset-light" strategy—leveraging collaborations rather than independently investing in costly equipment.
With the recovery in demand for mature-node chips slower than expected, UMC has reduced its capital expenditure to just $1.8 billion in 2025, while SMIC continues to spend over $7 billion annually.
Despite its focus on mature nodes, UMC remains a key manufacturing partner for major global chip developers, including Qualcomm, MediaTek, Realtek, Infineon, and Texas Instruments.