On Tuesday, Taiwan-based contract chipmaker United Microelectronics Corp. (UMC) held a ceremony to mark the arrival of the first equipment tools for the phase 3 expansion of its Fab12i facility in Singapore.

UMC, Taiwan’s second-largest pure-play wafer foundry operator, celebrated this milestone in its Singapore production efforts. The event was attended by representatives from Singapore’s Economic Development Board (EDB), Jurong Town Council (JTC), the Institute of Microelectronics (IME), as well as its construction partners and key equipment and material vendors.

In February 2022, UMC announced a US$5 billion investment in the phase 3 expansion of its Fab12i, also known as Fab12i P3, in Singapore. This new facility is poised to become one of the most advanced semiconductor fabs in the country, producing chips using 22-nanometer and 28nm processes.

UMC stated on Tuesday that construction of the new 12-inch wafer facility is expected to be completed by mid-2024.

The Fab12i expansion aims to meet the growing demand for 5G, automotive, and Internet of Things applications, according to UMC.

UMC has operated pure-play semiconductor foundries in Singapore for over 20 years, utilizing Fab12i as a center for advanced specialty technology research and development.

In the first quarter, UMC reported a net profit of NT$10.46 billion (US$324 million), down about 20 percent from the previous quarter, due to seasonal slowdowns, with earnings per share at NT$0.84, compared to NT$1.06 a quarter earlier.

However, the company anticipates growth momentum to increase in the second quarter as inventories in PCs, consumer electronic devices, and communication gadgets return to healthy levels.

According to the Taipei-based market information advisory firm TrendForce Corp., UMC was the fourth-largest contract chipmaker globally in the fourth quarter of last year.