Chip manufacturing giant Intel has partnered up with Taiwan's second-largest contract chip manufacturer, United Microelectronics Corporation (UMC), for advanced manufacturing process technology, suggests a report from FundaAI. Intel, under its CEO Lip-Bu Tan, is seeking to compete with Taiwan's TSMC in the contract chip manufacturing industry. According to the details, UMC is seeking to team up with Intel to gain a foothold in advanced chip manufacturing without having to expend significant amounts of capital for the machinery.
Intel & Taiwan's Second Largest Chip Manufacturer Team Up For 12nm & 3nm Nodes - Report
While most of the focus when it comes to Taiwan's contract chip manufacturer is on TSMC, the island's second-largest chip manufacturer, UMC, also plays a key role in the sector. Not only is UMC Taiwan's first contract chip manufacturing company, but it also manufactures products on mature process technology nodes. These products are used across a diverse set of industrial and other applications.
Now, it appears that UMC is interested in making inroads into leading-edge semiconductor fabrication. As per a report from FundaAI, the Taiwanese firm is cooperating with Intel to make chips on the 12-nanometer and 3-nanometer manufacturing process technologies. The production is expected to occur in Intel's Arizona plants.
Intel's UMC Collaboration For 3nm Will Take Aim At TSMC, Says Report
According to the details, the two companies' collaboration on the 12nm process node will lead to products used in the internet of things (IoT) industry, the WiFi sector and others. Additionally, the collaboration is moving fast, and the first design kits should be delivered to customers this year in order to facilitate tape-outs at the start of next year and production at the close of 2027.
In semiconductor fabrication, a process design kit, called a PDK, is a set of design rules that a foundry provides its customers. These rules facilitate the customer in designing their products, and the final design is sent back to the foundry as part of the tape-out process.
Crucially, the report also claims that Intel and UMC will collaborate on the 3nm manufacturing process node. The specifics of the deal will mimic the 12nm agreement and allow UMC to enter the leading-edge chip manufacturing space without having to aggressively invest in manufacturing equipment.
Crucially, the report also claims that the pair are aiming to collaborate to develop a 3nm node that is equivalent to TSMC's product to enable Intel to gain a greater piece of the global contract manufacturing market.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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