Taipei: United Microelectronics Corp. (UMC), Taiwan's second-largest contract chipmaker, announced that its collaboration with Intel Corp. on the 12 nanometer process is progressing as planned, with mass wafer production expected to commence in 2027. The announcement was made by UMC President Jason Wang during the company's annual general meeting.
According to Focus Taiwan, UMC's 12nm process is undergoing certification at Intel's Arizona campus. The certification process is anticipated to be completed by the end of this year, with mass production slated to begin next year. The partnership, originally announced in January 2024, involves the development and manufacturing of the new process node, equipped with Fin Field Effect Transistor (FinFET) capabilities, at Intel's Ocotillo Technology Fabrication site in Arizona.
The FinFET technology, which features a 3D transistor structure, is designed to enhance chip performance by enabling faster operation using the same amount of power or maintaining speed with reduced power consumption. This collaboration is poised to significantly impact the chip manufacturing industry, leveraging cutting-edge technology to improve efficiency.
In the context of UMC's standalone business operations, President Wang highlighted the company's resilience and ability to maintain long-term competitiveness despite challenges such as global demand fluctuations, geopolitical uncertainties, and currency volatility. UMC achieved record revenue from its 22nm and 28nm nodes and specialty processes in 2025, solidifying its position in the mature and specialty process sectors of the global market.
UMC reported consolidated sales of NT$237.6 billion (approximately US$7.57 billion) in 2025, marking a 2.3 percent increase from the previous year. However, net profit decreased by 11.6 percent to NT$41.7 billion, with earnings per share declining from NT$3.80 in 2024 to NT$3.34 in 2025.
Investments in research and development, totaling NT$17.7 billion, were directed toward 5G, the Internet of Things, automotive, and AI technologies. UMC plans to continue investing in value-added applications and next-generation technologies to sustain its competitive edge.
UMC's pursuit of AI-related applications has included collaborations with clients on certification, while the company has also introduced 2.5D assembly solutions featuring deep trench capacitor capabilities. Additionally, UMC's 12-inch silicon photonics platform has entered a trial phase, further expanding its technological offerings.
CFO Chitung Liu announced that UMC plans to raise product prices on select items in the latter half of 2026 due to rising production costs. This increase in costs is partly attributed to the high expenses associated with expanding capacity at UMC's Singapore manufacturing site. Current production at this location is between 12,000 and 13,000 wafers per month, with plans to expand to 18,000 units in the future.