Intel Reportedly Cooperating with UMC on 3nm Process; Experts Say Win-Win Situation Expected

(CNA, reporter Chang Chien-chung, Hsinchu, June 22) US chipmaker Intel (Intel) is reportedly cooperating with wafer foundry UMC to develop 3nm process technology, with related chips expected to be produced at Intel's Arizona plant. Semiconductor industry experts stated that while it will be difficult to shake TSMC's leading position in the short term, the cooperation between Intel and UMC is expected to create a win-win situation.

According to a FundaAI report, UMC is cooperating with Intel to produce chips using 12nm and 3nm process technologies, with related chips expected to be manufactured at Intel's wafer fabrication plant in Arizona, USA.

Liu Pei-chen, Director of the Industrial Economics and Information Research Department at the Taiwan Institute of Economic Research, said that the reported cooperation between Intel and UMC, extending from 12nm to 3nm, is unlikely to challenge TSMC's leading position in the short term.

Liu Pei-chen stated that TSMC's 3nm process has already entered a mature mass production stage with high yields, and it firmly holds orders from top manufacturers like Apple and NVIDIA. The technological moat and customer trust assets built by TSMC are difficult to shake in a short period.

However, Liu Pei-chen believes this is undoubtedly a mutually beneficial move for both Intel and UMC. Intel can leverage this to supplement the customer service and customized R&D experience lacking in its foundry business model, effectively activating the idle capacity of its Arizona plant, and simultaneously attract more customers through UMC's foundry stickiness.

As for UMC, Liu Pei-chen said that without incurring astronomical capital expenditures for expensive equipment, UMC can overcome the bottleneck of mature processes, successfully seize opportunities in advanced processes, and align with the global supply chain's trend of diversifying geopolitical risks. By establishing strategically valuable advanced production capacity in the United States, the deepening cooperation is expected to bring substantial benefits to both parties' finances and long-term strategies. (Editor: Chang Chun-mao) 1150622

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