Samsung plans to sell hundreds of fab equipment to UMC for P6 factory

Recently, Samsung Electronics signed an image sensor foundry agreement with UMC for the production of ISP and related panel driver ICs, countering Sony and TSMC. Moving forward, the company also plans to sell hundreds of fab equipment to UMC to support the construction of chip foundries.

According to the information, the South Korean tech giant plans to sell 400 sets of fab equipment to UMC that will be installed in UMC’s P6 factory. However, UMC’s P6 factory has not yet been put into production but the report suggests that it could start mass production in 2023 with an expected production capacity of 27,000 chips.

The same report further revealed that the UMC P6 factory will mainly use the 28nm process to produce chips for related customers including image sensors and display driver chips. However, Samsung and UMC had signed an image sensor foundry agreement, UMC’s P6 factory will also be mainly used for Samsung’s foundry-related chips.

Starting this year, UMC announced that they planned to invest US$1.5 billion in factory construction this year, and the 400 sets of equipment that Samsung plans to sell to them are not expected to be among the US$1.5 billion previously planned.

Though Samsung is an important chip foundry in the world, its holding market share is larger and technology is ahead of UMC. Their current process technology has reached 5nm, and the time for mass production is only slightly later than TSMC.

As per the reports, Samsung has handed over some of its image sensors to the foundry of UMC because the market has a strong demand for the company’s image sensors, but their own production capacity cannot meet the strong demand.

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