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Chips & SemiconductorsNews|July 14, 2026, 03:49 PM
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UMC Starts Singapore Silicon Photonics Production For AI Networks

BySendTech Times Chips & Compute DeskNewsroom-edited, source-reviewed coverage|Source: CNBC
Newsroom brief

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.

Verified against source materialEdited by SendTech Times Chips & Compute Desk
UMC Starts Singapore Silicon Photonics Production For AI Networks
Image source: Bloomberg via Getty Images / CNBC

United Microelectronics Corporation has started mass production of silicon photonics wafers at its Singapore facility, CNBC reported.

The UMC Singapore silicon photonics production line is aimed at optical interconnects used in AI and hyperscaler data centre networks.

CNBC said 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, according to CNBC.

UMC Begins Silicon Photonics Wafer Production In Singapore

The CNBC report described UMC as Taiwan’s second-largest contract chipmaker.

The Singapore output covers silicon photonics wafers, a chip technology used to transmit and process data at high speed through optical communication links.

UMC said in a statement cited by CNBC that the platform is meant to support next-generation AI infrastructure.

The report did not name customers for the first mass-produced wafers or disclose committed shipment volumes.

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, according to CNBC.

The report said the forecast supported a more positive outlook for the company in the second half of the year.

CNBC said UMC recently reported June sales of NT$23.12 billion, or $719.21 million.

CNBC reported that UMC's sales update listed a 22.85% year-on-year increase for June sales and an 11.28% rise in first-half cumulative sales.

UMC shares fell nearly 5% in Taiwan trade on Tuesday before paring losses to 1.6% lower, CNBC reported.

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 in Singapore, according to CNBC.

The report named King Yuan Electronics Corp and Vanguard International Semiconductor Corporation as other companies in the city-state’s chip ecosystem.

Vanguard, which CNBC described as 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.

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.

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