Overview

The growth of Taiwan's semiconductor industry is not only built on continuous breakthroughs in advanced processes but is also driven by specialty processes used in diverse applications. Specialty processes focus on differentiated chip designs for specific functions, precisely meeting actual needs. With the rapid rise of smart IoT, automotive electronics, and edge computing, these technologies have been widely applied in areas such as power control, communication, memory, and sensing, becoming a crucial force supporting the diverse development of the industry. As the scope of applications continues to expand, specialty processes demonstrate long-term and significant growth potential.

Several years ago, UMC foresaw this trend and established specialty processes as a core development strategy. Today, UMC has established leadership positions in specialty IC markets, with revenue from specialty processes exceeding 50%. Building on this steady growth, UMC is also collaborating with Intel Foundry Services to pursue further advancements in our technology and to enable customers’ future growth.

In the recent SEMICON Taiwan 2025’s Tech Master Forum, UMC Senior Vice President G C Hung reflected on UMC’s journey and summarized the three major strategies driving UMC's growth.

Mr. Hung explained the logic behind UMC’s strategic decision to focus on developing specialty processes. Considering the high investment threshold of advanced processes and its " to the victor belong the spoils " market structure, UMC ultimately decided to focus its resources on specialty processes. UMC concentrated its R&D resources on optimizing special components and patent layout to establish technical barriers. UMC also reformed the allocation of R&D resources and organizational structure, bringing together R&D personnel who understand process development (logic processes) and industry needs (specialty processes) to accelerate the pace of development. At the same time, it categorized by product line, establishing a comprehensive technical layout for key processes, and increased customer adhesion and competitiveness through differentiation and customization.

These efforts maximized product differentiation while making the development process more efficient. For example, in the high-end mobile phone panel driver IC market, UMC holds the leading market share and was the first in the industry to launch a 22nm eHV platform, and is currently developing a more advanced solution on 14nm. With the expansion of 5G applications, the demand for RF components has increased significantly. Utilizing 3D stacking technology, UMC is enabling customers to more efficiently integrate RF components by reducing the area of RF chips by 45%.

During the SEMICON forum, Mr. Hung emphasized that technology is the foundation of semiconductor competitiveness, but aligning technology development direction with market demand is essential to success. Based on this concept, UMC adopts the "Where to Play, How to Win" strategy to drive company development. "Where to Play" refers to the study of market applications that may emerge over the next five years. "How to Win" focuses on how to establish a competitive advantage in the selected markets through close collaboration between our technical and marketing teams, as well as the CTO office which explores potential technologies that may appear over the next 3 to 5 years. Through continuous optimization of product performance in terms of power, performance, area, and cost according to market demand ensures that the company can maintain its leading position in the long term.

UMC's "Where to Play, How to Win" strategy is also reflected in our diversified manufacturing footprint. From Singapore and Japan to China, UMC's diversified manufacturing strategy was initially aimed at enhancing customer satisfaction and operational flexibility. Today, it has become the strategic foundation driving the company's continuous progress, making UMC one of the few companies capable of providing customers with truly diversified wafer manufacturing locations.

The third key point lies in driving growth through strategic collaboration. In recent years, UMC has expanded its role from a mere chip supplier to becoming a strategic partner that co-creates value with customers. Through close cooperation with leading global technology companies, UMC is gaining access to new markets to drive growth momentum.

One of the most iconic examples is the strategic collaboration with Intel on 12nm process technology. Mr. Hung believes this is truly a win-win cooperation model. For UMC, the company has robust technology foundation, and through this collaboration, UMC gains access to Intel's large-scale manufacturing capacity in the United States. This not only effectively reduces capital expenditure burdens but also provides customers with a “Made in USA” option.

For Intel, they benefit from the partnership in the form of knowledge transfer, with UMC sharing our expertise and know-how in wafer foundry management, such as cost control, process control, and how to respond to customer and market demands. As Intel transitions from an IDM to a foundry, they can leverage our collaboration to strengthen their competitive edge in foundry services.

Finally, based on UMC's transformation experience, Mr. Hung offers two pieces of advice to help individuals stand out in the workplace. G C Hung believes that a personal career journey is comparable to the development of a company; one needs to do some market research and identify the path that best leverages their strengths to remain competitive in a rapidly changing environment.

His first piece of advice for talent is to cultivate a macro perspective. As the saying goes, "The height of your vision determines the depth of your development." UMC was able to identify new growth opportunities by recognizing changes in the market landscape and daring to step out of the competitive framework of advanced processes. Similarly, young people must learn to "stand higher and see further" to better understand the direction they should focus on and plan for long-term career development.

Mr. Hung advised young people to step out their comfort zone and be unafraid to explore unfamiliar fields. Using his own experience as an example, Mr. Hung always strove to advance himself through challenges that were difficult or unfamiliar. However, as long as one maintains a curious mind and a willingness to learn, the unfamiliar can become familiar, allowing one to accumulate expertise and confidence. When a sense of achievement begins to emerge, passion and recognition for the work will naturally follow.

The second advice is to cultivate innovative capabilities. Mr. Hung told the forum that a good education is no longer a guarantee of a bright future in the AI era. While many of the skills learned through education are gradually replaced by AI, what makes humans unique is their ability to learn from experience and also to look forward and innovate. Just as UMC chose its own development direction, young people must also possess innovative and forward-thinking mindsets to go beyond AI. Only then can they truly harness tools and demonstrate the unique value of higher-level innovative thinking.