Taiwan's UMC Begins Mass Production of Silicon Photonics Wafers in Singapore

SINGAPORE, July 14: Taiwan's United Microelectronics Corporation (UMC), the island's second-largest contract chipmaker, has begun mass production of silicon photonics wafers at its manufacturing facility in Singapore, marking a significant step in meeting growing demand for artificial intelligence and high-speed data infrastructure.

The company said Tuesday that its silicon photonics technology is designed to support high-speed optical interconnections used in AI systems and hyperscale data centers, where rapid and energy-efficient data transmission is increasingly critical.

UMC developed the platform in collaboration with Singapore-based fabless chip designer SILITH Technology, bringing the project from development to mass production within 18 months.

The chipmaker also announced plans to make its proprietary 12-inch silicon photonics platform available to customers for product development by 2027.

Silicon photonics combines optical communication components with semiconductor manufacturing processes, enabling faster data transfer while reducing power consumption. Demand for the technology has surged as AI applications and large-scale data centers require faster communication between processors, memory and networking equipment.

UMC reported June revenue of NT$23.12 billion (about $719 million), up 22.9% from a year earlier. Revenue for the first half of 2026 rose 11.3% year-on-year.

Despite the announcement, UMC shares fell nearly 5% in Taiwan trading on Tuesday before recovering some of the losses.

The move also highlights Singapore's growing role in the global semiconductor supply chain, with several Taiwanese chipmakers expanding operations in the city-state. Among them is Vanguard International Semiconductor Corp., backed by Taiwan Semiconductor Manufacturing Co. (TSMC), which is developing a $7.8 billion chip fabrication plant in Singapore with Dutch semiconductor company NXP Semiconductors.