Taiwan's second-largest contract chipmaker United Microelectronics Corporation (UMC) announced Tuesday the mass production of silicon photonics wafers at its Singapore facility. The company aims to address growing demand for high-speed optical interconnects in AI and hyperscaler data center networks. UMC collaborated with SILITH Technology, a local fabless chip design company, achieving production readiness in 18 months. The announcement comes as Taiwanese chipmakers expand manufacturing operations in Singapore, positioning the city-state as a regional semiconductor hub.
UMC Collaborates with SILITH Technology on Silicon Photonics Platform
UMC and SILITH Technology brought the silicon photonics platform from development to production readiness in 18 months, securing the technology to support next-generation AI infrastructure, according to UMC's statement. UMC plans to make its own 12-inch silicon photonics platform available for customer product development by 2027.
Citi Forecasts Sales Jump and UMC Reports June 2026 Financial Performance
Analysts at Citi see an improving outlook for UMC in the second half of the year, forecasting a 13% quarter-on-quarter sales jump in the second quarter of 2026 and a gross margin recovery. UMC reported June sales of NT$23.12 billion ($719.21 million), jumping 22.85% year-on-year. First-half cumulative sales rose 11.28%.
UMC Stock Falls Nearly 5% in Taiwan Tuesday Session
UMC's stock fell nearly 5% in Taiwan during Tuesday's session, before paring losses to trade 1.6% lower.
Taiwanese Chipmakers Expand Singapore Manufacturing Footprint
UMC is part of a broader wave of Taiwanese tech firms expanding their manufacturing footprint in Singapore. This growing ecosystem includes King Yuan Electronics Corp and Vanguard International Semiconductor Corporation, a chipmaker backed by TSMC, which recently partnered with Netherlands-based NXP Semiconductors to build a $7.8 billion manufacturing plant in the city state.
Silicon Photonics Market Estimated at $3.71 Billion in 2026
Silicon photonics is an essential technology for transmitting and processing data at ultra-high speeds. Its market sees notable growth driven by rising data traffic and demand for faster optical communication, with its global size estimated at $3.71 billion in 2026 according to data from Polaris Market Research.
FAQ
What did UMC announce on Tuesday?
UMC announced Tuesday the mass production of silicon photonics wafers manufactured at its Singapore facility, aiming to address growing demand for high-speed optical interconnects in AI and hyperscaler data center networks.
What are UMC's June 2026 sales figures?
UMC reported June 2026 sales of NT$23.12 billion ($719.21 million), jumping 22.85% year-on-year, with first-half cumulative sales rising 11.28%.
Why are Taiwanese chipmakers expanding in Singapore?
Taiwanese chipmakers including UMC, King Yuan Electronics, and Vanguard International Semiconductor are expanding manufacturing operations in Singapore as the city-state grows into a major regional hub for the global semiconductor supply chain.
