Industry sources told DigiTimes that production capacity at Chinese and Taiwanese 200mm wafer plans is expected to remain tight through the end of 2018. With an expected increase in demand for chips for Internet of Things (IoT) devices, the production capacity is expected to fall short of demand by 2020. DigiTimes notes the uptick in 200mm wafer demand will be a boon to UMC:
Sources from Taiwan's IC design sector said that compared with TSMC, VIS and China foundry houses, UMC is in a better position to stand out in 8-inch wafer foundry business as it has fully depreciated the related equipment and can readily make profits for many years after landing orders. They indicated that UMC has a chance to see its market value expand 10-fold in three years, just as experienced by Yageo, as long as the company can dispose of its stakes in reinvested IC design houses and enforce an appropriate capital reduction.