UMC : Taiwan Foundry, merger rumors with GF are being raised… how will it all end?

 



[Posting: April 21, 2025]

Apart from Taiwan’s leading foundry TSMC, UMC has consistently ranked 2nd or 3rd in the global foundry industry. The company specializes in legacy process nodes, especially around the 20nm range, and manufactures high-quality wafers used for display driver ICs and lower-tier logic for CMOS image sensors (CIS). Although its transition to FinFET was slower compared to TSMC and Samsung Foundry, similar to GlobalFoundries (GF), UMC has leveraged its legacy processes to cover a wide range of applications.

Amid the ongoing U.S.-China trade conflict, there is a growing demand from end-customers for NCNT (Non-China, Non-Taiwan) production. This has led to some demand being redirected to other sites such as Singapore and Korea. Moreover, there are emerging speculations about a potential merger between UMC and GlobalFoundries, raising questions about whether the two could achieve technological synergy through a strengthened portfolio.

🏢 UMC (United Microelectronics Corporation) Company Overview

🕰 Company History

UMC is a Taiwanese semiconductor foundry established in 1980. With a long history in semiconductor manufacturing, UMC has continuously invested in technological innovation and capacity expansion to become one of the world's leading foundry companies.

1. Founding and Early Growth (1980s–1990s)

  • 1980: UMC was founded in September as part of Taiwan’s strategy to develop a competitive semiconductor industry.

  • 1987: UMC launched its foundry business model, manufacturing chips designed by customers, securing competitiveness in the emerging foundry market.

2. Technological Innovation & Global Expansion (2000s)

  • Adopted 0.18μm and 0.13μm process technologies.

  • Advanced to 40nm and 28nm processes.

  • 2002: Expanded production and supply chains across Europe, Asia, and North America, strengthening global foundry service capabilities.

3. Mature Process Development & Strategic Partnerships (2010s)

  • Focused on 28nm, 20nm, and FinFET process development.

  • 2015: Adopted 14nm FinFET through partnerships, enhancing technical competitiveness.

  • 2017: Introduced 12-inch wafer production at its Taichung fab to support high-quality manufacturing.

4. Modern Innovation & Market Adaptation (2020s)

  • Expanded in 7nm and below nodes for next-gen applications such as 5G, EVs, and AI.

  • 2021: Built new fabs in Taiwan and overseas.

  • 2022: Focused on EV and autonomous vehicle semiconductors and eco-friendly manufacturing.

  • 2024: Continued strong performance in 22nm and 28nm nodes, with active talks about merging with GlobalFoundries.

📊 UMC's 2024 Performance, Technology Portfolio, and FAB Overview

1. 2024 Financial Performance

  • Q4 2024 Revenue: NT$60.39 billion (~USD 1.84 billion), a 9.9% YoY increase.

  • Operating Margin: 19.8%

  • Gross Margin: 30.4%

  • Net Income: NT$8.5 billion (~USD 259 million)

  • EPS: NT$0.68

  • Key revenue drivers: 22nm and 28nm processes

2. Revenue by Process Node (2024)



UMC is especially strong in 28nm and 22nm nodes, critical for high-demand markets such as display drivers and CIS logic.

3. Technology Portfolio

  • Competitive edge in 22nm and 28nm processes.

  • Strength in mature nodes below 40nm.

  • Focus areas: Next-gen networking and display driver ICs.

4. Applications by Process Node

▸ 22nm / 28nm

  • Mobile devices: Chips for smartphones and wearables

  • Advanced networking: 5G telecom infrastructure

  • Automotive electronics: EV and autonomous driving systems

▸ 40nm

  • Display Driver ICs: High-resolution panel drivers

  • Networking: Routers and switches

  • IoT: Smart home and industrial IoT devices

▸ 65nm / 90nm

  • Automotive control systems

  • Image sensors for digital cameras

  • Home appliances control chips

💼 Employee Salaries & Welfare

While specific salary figures were not disclosed, UMC is known for investing in employee welfare and sustainable workplace practices. The company also emphasizes eco-friendly initiatives and renewable energy agreements.

🔁 Merger with GlobalFoundries?

There have been recent discussions around a potential merger between UMC and GF (GlobalFoundries). If realized, the merger would:

  • Enhance economies of scale

  • Expand customer base and global market share

  • Strengthen mature node process competitiveness

However, approval from Chinese regulators may be a key hurdle, especially given geopolitical sensitivities.

🏭 UMC FAB Locations




📌 Conclusion

In 2024, UMC has maintained robust growth in mature process nodes, particularly in 22nm and 28nm technologies. With potential merger talks with GlobalFoundries gaining attention, UMC may further strengthen its presence in the global foundry landscape.

With multiple FABs and a solid legacy process strategy, UMC continues to innovate and enhance efficiency in semiconductor production. Its next steps are highly anticipated.

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