Chipmaker UMC approves $3.2 billion for Singapore and Tainan expansion

United Microelectronics Corporation (UMC), a Taiwanese chipmaker, said its board approved an additional budget of about $3.2 billion on October 28, 2026, to accelerate capacity expansion in Singapore and Tainan. This authorises capital spending on production facilities and equipment; it does not mean the money has already been spent or new capacity installed.

The additional budget builds on UMC’s existing expansion plans for both locations. The company’s separate capital-spending outlook for 2026 was $2 billion.

The demand behind the expansion

Semiconductor Engineering linked UMC’s accelerated expansion to growing demand for advanced packaging and silicon photonics. Packaging protects chips and provides electrical connections to circuit boards; silicon photonics uses silicon to carry light.

UMC CEO Jason Wang said the company was converting some existing capacity to meet near-term unfulfilled demand in those businesses. He said the longer-term Singapore and Tainan expansion would help capacity growth keep pace with customers’ needs, while UMC continued coordinating with customers on their product plans and requirements.

Operating position and timing

UMC reported third-quarter 2026 revenue of 74.24 billion New Taiwan dollars, up 25.6% from the same quarter a year earlier. Factory utilisation—the share of available production capacity in use—reached 92%.

UMC gave no timeline for the additional capital expenditure. The company said it was still working with suppliers to accelerate the schedule, Reuters said in its October 28, 2026, report.