UMC Starts Singapore Silicon Photonics Production For AI Networks
CNBC reported that United Microelectronics Corporation has started mass production of silicon photonics wafers in Singapore with SILITH Technology after an 18-month development push. The company plans a 12-inch platform for customer product development by 2027, while the report did not name first customers or supply commitments.
United Microelectronics Corporation has started mass production of silicon photonics wafers at its Singapore facility, CNBC reported.
The production line is aimed at optical interconnects used in AI and hyperscaler data centre networks.
UMC worked with SILITH Technology, a local fabless chip design company, to move the platform from development to production readiness in 18 months.
The 12-inch customer platform is scheduled for product-development availability in 2027.
UMC Begins Silicon Photonics Wafer Production In Singapore
UMC is Taiwan's second-largest contract chipmaker.
Its Singapore output covers silicon photonics wafers, a chip technology used to transmit and process data at high speed through optical communication links.
The AI infrastructure angle comes from the network bottleneck inside large compute systems.
As accelerators and servers exchange more data, optical interconnects are being pushed closer to the data-centre network and, in some designs, closer to compute packages themselves.
Silicon photonics gives chipmakers a manufacturing path for that shift.
UMC's statement indicates that the platform is meant to support next-generation AI infrastructure.
The first customer names, committed shipment volumes and commercial supply contracts were not disclosed.
Citi Forecasts A 13% Second-Quarter Sales Increase
Citi analysts forecast a 13% quarter-on-quarter sales increase for UMC in the second quarter of 2026 and a gross-margin recovery.
That outlook supported a more positive view for the company in the second half of the year.
Recent June sales totaled NT$23.12 billion, or $719.21 million, from UMC's update.
The sales release listed a 22.85% year-on-year increase for June sales and an 11.28% rise in first-half cumulative sales.
In Taiwan trading on Tuesday, UMC shares fell nearly 5% before paring losses to 1.6% lower.
The stock move sat alongside the production announcement rather than changing the disclosed production scope.
Singapore Adds Another Semiconductor Manufacturing Project
UMC is one of several Taiwanese semiconductor firms expanding manufacturing activity in Singapore.
King Yuan Electronics Corp and Vanguard International Semiconductor Corporation were also named as part of the city-state's chip ecosystem.
Vanguard, backed by TSMC, has partnered with NXP Semiconductors on a $7.8 billion manufacturing plant in Singapore.
Polaris Market Research data cited by CNBC estimated the silicon photonics market at $3.71 billion in 2026.
The Singapore production start gives UMC a position in an AI-networking supply chain that is still moving from market forecast to customer qualification.
UMC has not named first customers, disclosed supply commitments, published shipment volumes or set a commercial launch date for the 12-inch silicon photonics customer platform.
