UMC announced it's going to increase its capital expenditure by close to a third this year as the firm aims to grab more 28nm orders. The world's third-largest chip foundry has budgeted $1.8 billion for capex this year, up from $1.4 billion in 2014. The firm expects 28nm will account for 15 tp 20 percent of its total revenue towards the end of the year.
The Hsinchu, Taiwan company said it has earmarked $1.8 billion for capex this year compared with the $1.4 billion it spent during 2014. During the fourth quarter of last year, UMC increased its sales revenue from 28nm chips, the company’s most advanced technology node, to 7 percent, up from 3 percent during the third quarter of 2014. The doubling of 28nm revenue was in line with the company’s expectations three months ago.
“We are getting more traction on 28nm,” UMC CEO Po-Wen Yen said on a conference call, announcing results for the final quarter of last year. “More than five customers are in production on 28nm. We have over 20 customers engaged and more than sixty 28nm tapeouts.”