[News] UMC Reportedly Wins Qualcomm Advanced Packaging Deal, Breaking TSMC’s Monopoly

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United Microelectronics Corporation (UMC) is making significant strides in the advanced packaging sector, breaking new ground in a market traditionally dominated by TSMC. According to a report by Economic Daily News, UMC has secured a major advanced packaging order from Qualcomm for high-performance computing (HPC) applications. These chips are expected to be used in AI PCs, automotive electronics, and the rapidly growing AI server market, as well as in High Bandwidth Memory (HBM) integration.

UMC declined to comment on individual customers but emphasized that advanced packaging is a strategic focus for the company. UMC also highlighted its efforts to build an advanced packaging ecosystem in collaboration with its subsidiaries, such as Faraday Technology and Silicon Integrated Systems, and with memory partner Winbond.

The report noted that UMC’s current advanced packaging capabilities are limited to providing interposers for RFSOI processes, which contribute minimally to revenue. However, with Qualcomm’s decision to adopt UMC’s advanced packaging solutions for HPC chips, UMC is poised to expand its business in this field.

Citing industry insiders, Economic Daily News revealed that Qualcomm’s order involves the Oryon architecture, with chip production leveraging TSMC’s advanced process nodes, while UMC will handle advanced packaging using its WoW (Wafer-on-Wafer) hybrid bonding technology.

Industry sources cited by Economic Daily News believe Qualcomm’s decision to use UMC’s wafer-stacking technology, combined with PoP (Package-on-Package), marks a shift from traditional solder-ball connections. This approach reduces signal transmission distances between chips, enhancing computational performance without relying on further advancements in wafer fabrication processes. According to the report, Qualcomm’s new HPC chips featuring UMC’s advanced packaging are expected to enter trial production in the second half of 2025, with mass production slated for 2026.

(Photo credit: UMC)