UMC raises capex to US$2B, eyes AI SiPh

United Microelectronics Corporation's capital expenditure increase to $2 billion signals a strategic push into the AI chip ecosystem. This move will accelerate upstream advancements in EUV equipment, materials, and packaging technologies, particularly in SiPh (silicon photonics). From a policy perspective, this reflects the growing fragmentation of global semiconductor supply chains, especially amid U.S.-China tech decoupling. Competitors like TSMC and GlobalFoundries may respond with accelerated investments in AI-specific process nodes. In the medium term, SiPh is poised to become a major growth driver post-2026, and if UMC achieves its $1 billion AI revenue target within three years, it could reshape the global AI chip manufacturing landscape.