👀 Copy Legendary Investors' Portfolios in One ClickCopy For Free

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

Published 12/16/2024, 08:08 PM
© Reuters
QCOM
-
TSM
-
2303
-

Investing.com-- United Microelectronics Corporation (TW:2303) (UMC) has secured a major contract from Qualcomm Inc (NASDAQ:QCOM) for advanced packaging technology, 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:TSM) (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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.