Sources say UMC is expanding its business in Japan to build a new 12-inch wafer plant.

CTOnews.com, May 12, according to the Electronic Times, several people in the supply chain said that UMC is considering further expanding its semiconductor manufacturing business in Japan, a move at a time when the Japanese government is urging companies to expand their semiconductor production in Japan.

People in the supply chain say UMC is evaluating plans to build a new 12-inch fab in Mitsubishi prefecture in central Japan. UMC is the third largest foundry in the world and a major supplier to Denso and other Japanese chipmakers.

▲ UMC Triple Factory, photo: UMC official website this factory will become UMC's second chip manufacturing plant in Japan, and UMC's first plant in Japan is Fujitsu semiconductor triple plant. The construction of a new 12-inch fab in Japan represents a major shift in UMC's plant-building strategy. For decades, UMC has maintained most of its production in the region where it is headquartered, allowing nearly half of its 12-inch wafers to be produced in Japan.

According to CTOnews.com, UMC controls more than 20% of the global 45-90nm mature process foundry service market, and its customers include Samsung, Qualcomm, MediaTek and so on. In addition, UMC also provides contract manufacturing services for important automotive chip manufacturers such as Denso, NXP Semiconductor, Renesas Electronics and Infineon.