UMC will add capacity if customers pay for it

UMC will add capacity if customers pay for it

The addition would be made at UMC’s Tainan fab.

The cost would lift UMC’s 2021 capex by 53% to $2.3 billion.

Calling  it an “innovative, win-win” arrangement, UMC CEO Jason Wang said: “This will strengthen our financial position to capture the market opportunity.”

UMC had 100% capacity utilisation in Q1 and expects it to stay there. It expects its ASPs to rise 10% this year.

“There is a supply-demand imbalance in mature nodes,” says Liu Chi-tung, UMC CFO, “we have seen lots of capacity expansion in advanced nodes, but companies have not addressed the mature nodes. There are lots of critical components on those nodes.”