[News] UMC Reportedly Mulls Rejoining Advanced Node Race via Rumored Intel 6nm Tie-Up

After announcing its exit from 10nm and more advanced nodes back in 2017, Taiwan’s second-largest foundry, UMC, may be preparing an unexpected return to the cutting-edge arena it once abandoned. According to Nikkei, the company is now eyeing 6nm production, with a focus on chips for Wi-Fi, RF, Bluetooth, AI accelerators, and processors used in TVs and vehicles.

While such a move typically requires massive capital outlay, Nikkei reports that UMC is considering expanding its partnership with Intel to help offset costs—potentially adding 6nm chips to their planned 12nm collaboration in Arizona, set to begin by 2027.

Notably, UMC previously announced that its 2025 capital expenditure will drop to around $1.8 billion—a sharp 37.93% decline from the previous year, as reported by MoneyDJ. This cautious approach to spending could significantly hinder its push into 6nm production, since building a line capable of producing 20,000 wafers would require at least $5 billion, according to Nikkei.

UMC’s key rival, SMIC, boldly claims it can produce 7nm-class chips without relying on costly EUV machines—each worth around $180 million, Nikkei suggests. Still, the Chinese foundry giant’s 2025 capex is set at a hefty $7 billion, far surpassing UMC’s $1.8 billion, Wccftech reports.

Citing UMC CFO Liu Chitung, Nikkei adds that the company would likely adopt an “asset-light” approach, relying on partners to share the financial burden rather than making heavy equipment investments alone.

UMC is also looking to grow its advanced chip packaging business, according to Nikkei. Commercial Times previously reported that the company is considering acquiring the facility of TFT-LCD panel maker HannStar in the Southern Taiwan Science Park, which could be used to develop future advanced packaging capacity. UMC has already established 2.5D advanced packaging capacity in Singapore and has moved part of its process back to Taiwan, the company said.

Oversupply Risk Rises for Mature Chip Nodes

According to TrendForce, UMC holds the fourth spot in the foundry market by revenue. In Q1 2025, it captured 4.7% of the global market—well behind TSMC’s dominant 67.6%, Samsung’s 7.7%, and SMIC’s 6.0%, but just edging out GlobalFoundries at 4.2%, as per TrendForce.

Meanwhile, UMC’s latest earnings report suggested that 22/28nm made up 37% of Q1 sales, while 40nm and 65nm each contributed 16%. Sub-14nm nodes had no contribution. However, the market remains stagnant, with sub-40nm nodes consistently accounting for about half of UMC’s revenue in recent quarters.

SMIC, which also focuses on mature node chip production, flagged two key challenges in the second half of 2025. Citing Co-CEO Zhao Haijun, Reuters noted that order volumes are expected to decline, as demand was pulled forward into the first half of the year. In addition, new production capacity across the industry could lead to intensified price competition as manufacturers fight for limited orders, the report added.

Read more

• [News] UMC Reportedly Eyes Southern Taiwan Facility for Advanced Packaging Expansion Beyond Singapore
• [News] UMC Shrugs Off Middle East Expansion; Calls Intel’s 12nm Project a Must-Win with More Details
• [News] UMC Reportedly Wins Qualcomm Advanced Packaging Deal, Breaking TSMC’s Monopoly

(Photo credit: UMC)