United Microelectronics Corporation (UMC) is doubling down on American semiconductor manufacturing. The Taiwanese chipmaker announced Thursday it signed a memorandum of understanding with Polar Semiconductor to explore collaboration on 8-inch wafer production in the U.S., the kind of partnership that's becoming increasingly common as companies rush to onshore chip manufacturing.
What They're Building
Here's the setup: Polar Semiconductor will manufacture selected devices at its expanded 8-inch facility in Minnesota, tapping into UMC's extensive technology portfolio and customer network. The chips coming out of this arrangement will serve critical industries including automotive, data centers, consumer electronics, and aerospace and defense—basically the sectors where supply chain disruptions are more than just inconvenient.
The partnership targets multiple goals at once. It's designed to drive growth, support customers looking to diversify their suppliers, and strengthen U.S. manufacturing capacity for 8-inch wafers. That last point matters for supply chain resilience, particularly for power semiconductors that keep electric vehicles running, power grids humming, robots moving, and data centers operational.
Ken Obuszewski, Vice President of Marketing at Polar, framed it as strategic alignment: "This partnership is aligned with Polar's strategy to meet the growing demand for domestic manufacturing, including the need to onshore semiconductor solutions from U.S. and global customers."
He added, "With deep foundry customer relationships and a robust portfolio of specialized technologies, partnership with UMC is proof of Polar's capability to be a value-added silicon foundry in specialized technologies focused on power and sensors."
The Numbers Behind UMC
Beyond the partnership news, UMC released its November sales figures: $21.2 million for the month, marking a 5.91% increase year-over-year. For the January through November period, net sales climbed 2.31% compared to the same stretch in 2024.
The company's recent earnings paint a solid picture too. Third-quarter revenue hit $1.94 billion, beating analyst expectations of $1.92 billion. Earnings per American Depositary Share came in at 19.7 cents, well ahead of the 12-cent consensus estimate.
Looking forward, UMC projects fourth-quarter wafer shipments to stay flat compared to the third quarter, with average selling prices in U.S. dollars expected to hold steady.
Price Action: UMC shares traded down 0.76% at $7.790 in premarket trading Thursday.