UMC believes that market demand growth is far greater than the rate of increase in production capacity. This structural problem is difficult to solve in the short term, and the shortage of semiconductor production capacity may continue until 2023.

According to Taiwan Media Economic Daily, UMC held a regular shareholder meeting today. UMC’s co-general manager Jian Shanjie said that the epidemic has impacted the global economy, but the semiconductor market has accelerated its digital transformation due to the epidemic. On the contrary, it has grown substantially. Semiconductor production capacity is in short supply. The tight production capacity of inch factories and mature processes is even more serious.

Jian Shanjie said that the growth rate of market demand is far greater than the rate of increase in production capacity. This structural problem is difficult to solve in the short term, and the shortage of semiconductor production capacity may continue until 2023.

He said that from the perspective of demand trends, the demand for 5G mobile phones, notebook computers, and automotive electronics will continue not only this year, but also beyond 2022.

Jian Shanjie believes that the solution to the shortfall in demand is to increase production capacity. He said that from the perspective of supply, it may already be 2023 from investment and construction to production capacity.

When it comes to capacity expansion, UMC said in the morning that Lianxin, a 12-inch factory in mainland China, will reach its first-stage full-load target in the middle of this year as scheduled, with a monthly production capacity of 25,000 pieces. The P5 monthly production capacity of Nanke Wafer 12A fab will increase by 10,000 pieces, and the new production capacity will be launched next year. P6 will also be built to achieve a monthly production capacity of 27,500 pieces, which is expected to be produced in the second quarter of 2023.

In addition, UMC expects that under the dual benefit fermentation of product price increases and optimization, the average selling price of this year's products will rise as expected by about 10% from last year.