UMC Stock Surges to 29-Year High on Intel Collaboration Rumors

United Microelectronics Corporation (UMC) shares soared to a 29-year peak, hitting NT$160 and marking a significant jump of NT$14.5. This surge followed foreign media reports suggesting a deep collaboration with semiconductor giant Intel on advanced process technologies, including 12nm and potentially 3nm. The news, coupled with rising demand for mature process nodes, propelled UMC's stock, with buy orders exceeding 260,000 shares by 9:05 AM.

However, the semiconductor industry remains cautious. Experts point to comments by TSMC Chairman C.C. Wei, who previously emphasized the immense capital and long production cycles involved in chip manufacturing, stating there are "no shortcuts." While TSMC acknowledges no competitor can be underestimated, it focuses on meeting customer needs to maintain its lead. UMC's current most advanced mass-produced processes are 28nm and 22nm. The 12nm FinFET platform, intended for collaboration with Intel, is still undergoing technical transfer and process verification at Intel's Arizona facility, with mass production slated for 2027.

Industry observers question the rapid progression from 12nm to 3nm, suggesting the stock rally might be driven by speculative trading. Intel CEO Pat Gelsinger has admitted that Intel Foundry Services lags significantly behind TSMC. He indicated that building customer trust, improving yield rates, and ensuring process stability for Intel's foundry business will take time, with substantial results not expected until 2030-2032. This timeline casts further doubt on the immediate feasibility of a 3nm collaboration.