TAIPEI (Taiwan News) — Taiwanese contract chipmaker United Microelectronics Corp. (UMC) announced on Thursday (Feb. 24) it intends to build a new chip fab in Singapore.

UMC said in a statement cited by CNA it is planning on building a fab that will produce 22 and 28 nanometer process chips. The company said it plans to invest US$5 billion (NT$140 billion) in the project, according to the report.

After the first phase is complete, the facility will have a monthly capacity of 30,000 wafers, with commercial production slated to begin in late 2024, UMC said. The plant will be one of the most advanced chip plants in Singapore once complete, the company said.

The Taiwanese chipmaker said it sees strong demand for 22/28nm chips driven by 5G, Internet of Things devices, and automotive electronics. It added that technologies to be made at the new facility include embedded high voltage and non-volatile memory, which are vital for a wide range of applications, from smartphones to electric vehicles.

The company said its new fab will play an important role in meeting growing demand in these markets and help alleviate the structural shortages in 22 and 28nm wafer capacity.

UMC Chairman Stan Huang (洪嘉聰) said the new plant will allow the company to further diversify its manufacturing output.