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UMC-Hitachi: end of the Trecenti Technologies joint venture
Today UMC and Hitachi announced the termination of the joint venture Trecenti Technologies, which owned a factory for the production of 300 mm silicon wafers in Japan.
The adopted agreement is based, according to the representatives of the companies, on the decision to engage in independent development in the future. Now, the factory, which was owned by UMC for 40%, will go to Hitachi, and the Taiwanese company will receive $ 80 million in compensation in April.
Despite the termination of joint work, representatives of the companies warmly commented on the ongoing cooperation. Funds raised by UMC will be used to accelerate the construction of its own 300mm Fab 12A in Taiwan. In addition, UMC intends to focus on the work of the Singapore-based UMCi venture with Infineon, as well as on the construction, also in Singapore, of a 300 mm factory under the flag of the AU Pte Ltd joint venture with AMD. Both joint ventures will require capex of about $ 3.5 billion. each, the design capacity of each is up to 40 thousand silicon wafers per month.
At the end of 2021, Fab 12A produced about 5 thousand. 300mm plates per month. According to preliminary plans, UMC planned to increase the capacity of this factory to 20 thousand wafers per month, however, due to a decrease in demand, the company may reduce the capacity of the factory to 7 thousand wafers per month. After exiting Trecenti, UMC loses about 3500 300 mm plates per month. Plus, quite recently the company sold several “old” 200 mm lines with a total production capacity of up to 30 thousand plates per month. Nevertheless, despite such a sharp decrease in production volumes, about half of the remaining UMC lines are currently idle.
The Japanese side was very pleased with the acquisition of full ownership of the Trecenti facilities. For Hitachi, the Trecenti factory has become one of the most advanced and modern. The company intends to use the power inherited to it to produce mainly system logic, flash memory and SRAM.