Core Viewpoint - UMC (United Microelectronics Corporation) has established a unique development path in the global semiconductor foundry industry, leveraging strategic layout, pragmatic technology routes, and deep global operations to create irreplaceable industrial value amidst fierce competition [3][5]. Group 1: Global Capacity Distribution - UMC's global capacity layout is a well-thought-out strategic network, with production bases in Taiwan, mainland China, Singapore, and Japan, showcasing operational resilience and risk diversification [7]. - In Taiwan, UMC's 12-inch wafer production capacity is stable at 90,000 to 107,000 pieces per month, primarily for advanced processes like 28nm and 22nm, with a utilization rate above 90% [8]. - The Xiamen facility in mainland China is set to reach a total capacity of 30,000 pieces per month, focusing on 28nm and 22nm products, benefiting from the rapid growth of the local semiconductor market [9]. - UMC's Singapore facility has a combined monthly capacity of approximately 15,000 pieces for mature processes, with plans to expand to 45,000 pieces by 2025 [10]. - The Japanese factory, acquired by UMC, has a monthly capacity of 30,000 pieces, serving local markets with high reliability and quality requirements [12]. Group 2: Technology Node Choices - UMC has strategically focused on 28nm and 22nm nodes, avoiding costly competition in cutting-edge processes, which has proven to be a wise decision given market demands [14]. - The 28nm process is widely used in various applications, achieving a balance between performance, power consumption, and manufacturing costs, while the 22nm process offers a slight cost reduction without significant performance changes [16][17]. - UMC's experience with the 14nm process highlights the importance of timing in the semiconductor industry, as late entry resulted in limited market share [18]. - A partnership with Intel for 12nm technology represents a significant opportunity for UMC, although challenges remain in aligning production processes [19]. - UMC is also investing in compound semiconductors, with over 80% of its 6-inch wafer production dedicated to GaN and SiC, targeting high-frequency and high-power applications [20]. Group 3: Customer Ecosystem and Market Competition - UMC's customer base reflects its market positioning, with a strong presence in the display driver IC (DDIC) sector, primarily serving Taiwanese design companies [23]. - In the analog and mixed-signal chip markets, UMC has diversified its customer base, including major international players like NVIDIA and Qualcomm, indicating a shift towards complex products that integrate advanced digital logic [24][25]. - UMC faces significant competition from SMIC, which benefits from strong local support and cost advantages, while maintaining a strategic confidence against GlobalFoundries due to its technological stagnation [26][27]. Group 4: Supply Chain Strategy and Future Growth Engines - UMC's supply chain is composed of top global brands, ensuring product consistency and high yield, but also exposing the company to global supply chain fluctuations [30][31]. - The company adopts a cautious approach to equipment procurement, particularly from Chinese and Korean suppliers, to mitigate technology leakage and geopolitical risks [32]. - UMC plans to expand capacity primarily through acquisitions rather than new greenfield investments, targeting underperforming fabs in developed economies [33]. - The company is entering the advanced packaging market, aiming to capture opportunities arising from the AI boom, with plans to increase its silicon interposer production capacity significantly [34]. Conclusion - UMC's journey reflects strategic determination and pragmatism, focusing on mature nodes with substantial market demand while building a robust global presence and customer relationships, positioning itself as an indispensable player in the semiconductor industry [36].

Core Insights - TSMC has established itself as the leading player in the foundry industry, playing a crucial role in the semiconductor sector through decades of growth and innovation [2][7][45]. Phase 1 - Initiation - TSMC was founded in 1986 with an initial capital of $48 million, primarily funded by the Taiwanese government and Philips [2]. - The company began production in 1987 using 6-inch wafers and quickly advanced to 3.0-micron technology [2][7]. - By 1994, TSMC had developed a 0.6-micron process and had shipped 2.5 million wafers, with revenues growing from NT$2.2 billion to NT$19.3 billion from 1990 to 1994 [7]. Phase 2 - Expansion and Catch-Up - In 1995, TSMC launched its 8-inch Fab III and introduced tungsten plugs, enhancing its manufacturing capabilities [11]. - By 1998, TSMC's revenue reached NT$50 billion, despite a semiconductor downturn, and it began producing 0.22-micron nodes [15]. - The company achieved a compound annual growth rate of 50% from 1992 to 2000, with sales increasing by 127% in 2000 compared to 1999 [19][21]. Phase 3 - Leveling Up and Leading - TSMC's 180nm node was competitive with leading manufacturers, and it was the first to implement low-k dielectrics [25]. - In 2001, despite a 32% market decline, TSMC's 150nm products accounted for 21% of its sales [26]. - The company introduced 130nm technology in 2002, marking a significant milestone in its production capabilities [29]. Phase 4 - 300mm and Consolidation - TSMC's 90nm process was the first to achieve full-scale production on 300mm wafers, adopted by over 30 customers in its first year [37]. - By 2006, TSMC had become the largest foundry globally, with sales exceeding those of its nearest competitor by 2.5 times [45]. - The company expanded its production capacity significantly, with GigaFabs achieving near 100% automation [48]. Phase 5 - HKMG and Further Expansion - In 2010, TSMC announced the construction of its third 300mm fab, focusing on 40nm and 28nm processes [64]. - The introduction of high-k metal gate (HKMG) technology marked a significant advancement in TSMC's manufacturing processes [66]. - By 2012, TSMC's 28nm process accounted for 42% of its revenue, demonstrating its dominance in the market [88].