Qualcomm and UMC have reportedly reached a long-term agreement

The industry sources said that Qualcomm has reached a long-term agreement with UMC (UMC), which will provide Qualcomm with 6-year capacity support.

Established in 1980, UMC provides advanced process technology and wafer manufacturing services to produce chips for various major applications in the IC industry. Currently, the company has 12 wafer foundries, of which 4 are 12-inch wafer foundries, 7 are 8-inch wafer foundries, and one is 6-inch wafer foundries.

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According to reports, in order to meet strong customer demand, UMC’s capital expenditure in 2021 will reach US$1.5 billion, an increase of 50% from last year. Among them, 85% of capital expenditures will be invested in 12-inch factories, while the remaining 15% will be invested in 8-inch factories.

In early January this year, it was reported that due to the tight production capacity, UMC increased its foundry offer for 12-inch wafers, but the company did not disclose the extent of the increase.

In early May this year, industry sources revealed that the company plans to increase the foundry offer for 12-inch wafers by about 13% starting in July this year. In August last year, industry chain sources revealed that chip foundries, including TSMC and UMC, increased their 8-inch foundry quotations by 10%-20%.


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