Jiwei.com reported that on March 8, according to Taiwanese media DIGITIMES, sources at IC design companies said that UMC has made a higher offer for the negotiations on a new long-term agreement (LTA) with Samsung Electronics.
Sources pointed out that UMC signed a contract with Samsung to manufacture image signal processors and OLED display driver ICs. These products require a 28nm process manufacturing.
Photo source: DIGITIMES
Source said that Samsung is one of UMC's main customers. Long-term order commitments from such large customers drive foundries to build additional 28nm wafer fab capacity. Currently, the new LTA obtained by UMC from Samsung replaces the old LTA that has expired and will officially take effect in the second quarter of 2022.
Sources added that UMC has seen the "visibility" of Samsung orders extend to 2025 and beyond.
Sources also said that UMC has raised its offer significantly in the first five quarters. But UMC raised its non-LTA contract offer at a slower pace in the first quarter of 2022. So far, the foundry's offer in the second quarter has remained flat.
UMC is expanding its fab in southern Taiwan to increase the 28nm process capacity, including the launch of an expansion project at its Phase 6 plant at its Fab 12A. Recently, the foundry also disclosed plans to establish a new fab near Fab12i in Singapore to increase process capacity of 28nm and 22nm.
Source: DIGITIMES
In related news, UMC's monthly revenue in February exceeded NT$20 billion (US$705.95 million) for the third consecutive month. UMC reported that revenue in February 2022 increased by 1.65% month-on-month and 39.2% year-on-year to NT$20.81 billion. (Proofreading/Stan)
