United Microelectronics Corporation Secures Contract with Qualcomm

United Microelectronics Corporation (TW:2303) (UMC) has secured a significant contract from Qualcomm Inc (NASDAQ:QCOM) for advanced packaging technology, marking a breakthrough in the high-speed computing (HPC) sector, as reported by Economic Daily.

This partnership positions UMC favorably in emerging markets, including artificial intelligence (AI) PCs, automotive applications, and the growing AI server market, with plans for high-bandwidth memory (HBM) integration.

This development challenges Taiwan Semiconductor Manufacturing (NYSE:TSM) (TSMC)’s long-standing dominance in advanced packaging.

According to the report, Qualcomm will continue using TSMC's advanced processes for chip production but opted for UMC for wafer-level advanced packaging utilizing hybrid bonding technology. UMC’s wafer-on-wafer (WoW) hybrid bonding method enhances chip-to-chip integration, minimizing signal transmission distance, which boosts computing performance without the need for a manufacturing process upgrade.

To solidify its market presence, UMC is building an advanced packaging ecosystem and collaborating with subsidiaries Faraday Electronics and Silicon Systems, along with memory partner Winbond. This recent order enables UMC to gain significant traction in a market traditionally dominated by TSMC.

UMC’s expertise, which includes ultra-precision manufacturing for silicon through-holes and 2.5D/3D chip stack integration, meets Qualcomm’s needs for advanced HPC applications.

Trial production of Qualcomm’s new high-speed computing chips using UMC’s advanced packaging technology is anticipated in the second half of 2025, with mass production slated for 2026.

This strategic contract not only brings growth opportunities for UMC but also alters the competitive landscape within the advanced packaging market.