UMC announced that the demand is rapidly growing for chips to be used in simulators, LCD drive IC, sensors, power source management and microelectromechanical systems (MEMS) related to wearable devices and IoT.

This is increasing the demand for 8-inch manufacturing processes and is driving 8-inch OEMs’ production capacities and utilization to continue to reach the point of being full to capacity.

Besides increasing Taiwan’s 8-inch production efficiency, UMC is also expanding its Mainland China, Suzhou, Hejian factory’s 8-inch production capacities, and the monthly investment yield for next year is expected to increase from 50,000 chips to 60,000 chips.

Observing chip business opportunities, UMC is also increasing its 28nm production capacities. UMC has announced that because UMC fell behind in its rate of progress for 28nm, it missed the opportunity to increase growth in mobile chips.

However, this year because of a significant breakthrough in in-process yield enhancement for HKMG, UMC is currently actively consulting with clients and expanding its production capacities.

Analysts believe that UMC is the second OEM wafer manufacturer in the world to supply 28nm after gate last and high-k metal-gate (HKMG) wafers. Furthermore, it has yielded a key breakthrough and become the second OEM source for the production of 28nm wafers.

In addition to this, with TSMC, Samsung, and Intel intensifying the competition to advance their manufacturing processes, UMC has the opportunity to become the beneficiary in this battle for market space.