Umc issued a 28nm chip facing overcapacity warning
According to media reports, fabs umc held a meeting yesterday and said it would spend $3 billion on capital expenditure this year, up 66% from last year.However, for the market to expand the capacity of 28 nanometers, UmC for the first time said that the 28-nanometer market may face oversupply after 2023.Umc spent about $1.8 billion on capital expenditures last year, with 90% of that going to 12-inch capacity and 10% to 8-inch capacity this year.Among them, nanke Fab 12A P5 plant expansion capacity of 10,000 pieces will be in place in the second quarter, Xiamen plant will also increase capacity of 10,000 pieces.However, Wang Shi, joint general manager of UMC, pointed out that the P6 plant expansion progress has been delayed, and efforts will continue to shorten the process. It is still expected to put into production in the second quarter of next year, and the capacity will be increased from the original plan of 27,500 pieces to 32,500 pieces.Major fabs have expanded their capacity by 28 nm, and foreign investors are concerned about umC’s view on the future supply and demand of the industry. Wang Shi said that the market leader is optimistic that the industry demand will continue to grow, and UMC also holds the same view.Umc moved into Tainan Science Park in November 1999 and established its first 12-inch Fab in Taiwan. Fab 12A currently has a capacity of about 90,000 12-inch wafers per month, and P5 will increase its capacity by 10,000 wafers when installed in 2021.After the installation of P6 expansion plan, Fab 12A will add another 27,500 full capacity, creating momentum for long-term profit growth of UMC;Umc also plans to hire about 1,000 workers at Fab 12A and other sites.