According to sources from IC design company, UMC is negotiating a contract for next year, and the company will once again increase the price of foundry. There is even more news that UMC's annual growth rate will be at least 10% to 20%. By then, the price of labor will officially exceed TSMC.

According to the digitimes report, sources said that UMC is considering increasing its quotations starting next year, especially the 28nm and 40nm process orders will increase by at least 40%. In addition, UMC’s 2022 price increase will also apply to UMC’s IC design company’s orders.

It is reported that since the fourth quarter of 2020, UMC has been increasing its foundry quotations, which has little impact on its IC design subsidiaries (such as MediaTek), because so far the increase in quotations is mainly for other non-productive companies. Orders from fab chip manufacturers. The source pointed out that, starting next year, MediaTek and other IC design companies under UMC will face rising quotations.

It is also reported that the power management chip factory and the Netcom chip factory are discussing next year’s production capacity plans with major foundries. They have received a price increase notice from UMC. The price increase next year will be at least 10% to 20%, and the price will be adjusted continuously. Under the circumstances, UMC’s foundry price will officially exceed TSMC next year.

UMC said that it will not respond to price issues, and the relevant industry trends will be explained to the outside world one by one at the legal meeting on the 28th.