UMC wins Qualcomm advanced packaging order, challenges TSMC's lead

-- United Microelectronics Corporation (TW:) (UMC) has secured a major contract from (NASDAQ:) for advanced packaging technology,fxtm official website customer service marking a significant breakthrough in the high-speed computing (HPC) segment, Economic Daily reported on Tuesday, citing sources.

The move positions UMC to play a central role in emerging markets such as artificial intelligence (AI) PCs, automotive applications, and the booming AI server market, with high-bandwidth memory (HBM) integration also in the pipeline, the report stated.

This development challenges the longstanding dominance of Taiwan Semiconductor Manufacturing (NYSE:) (TSMC) in the advanced packaging space, according the report.

The report said that Qualcomm will utilize TSMC’s advanced process for chip production but has chosen UMC for wafer-level advanced packaging using hybrid bonding technology. UMC’s wafer-on-wafer (WoW) hybrid bonding process provides chip-to-chip integration that reduces signal transmission distance, improving computing performance without upgrading the manufacturing process.

To strengthen its foothold, UMC is actively fostering an advanced packaging ecosystem, collaborating with subsidiaries Faraday Electronics and Silicon Systems, as well as memory partner Winbond. This latest order positions the company to gain substantial traction in a market that has long been controlled by TSMC, the report said.

UMC’s capabilities, including ultra-precision manufacturing for silicon through-holes and 2.5D/3D chip stack integration, align with Qualcomm’s requirements for advanced HPC applications.

Trial production of Qualcomm’s new high-speed computing chips utilizing UMC’s advanced packaging is expected to begin in the second half of 2025, with mass production scheduled for 2026, the Economic Daily report stated.

This major contract not only provides UMC with fresh growth momentum but also reshapes competition in the advanced packaging market, the report added.

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