A fundamental counterexample amid the semiconductor crash! UMC (UMC.US) posts explosive results and raises capital expenditures as AI orders spread from GPU to mature process nodes.

Zhihu Finance APP reported that the Taiwanese chip manufacturing giant UMC (UMC.US) announced in its earnings report on Wednesday that its board has approved an expansion plan. This plan includes increasing cleanroom production capacity at its large wafer fabrication facilities in Singapore, as well as constructing a new fab building at its flagship Tainan Industrial Park in Taiwan, aiming to fully meet the ever-growing semiconductor capacity demand driven by the rise in AI computing power requirements. UMC’s latest performance and future outlook are considered a significant fundamental boon for the recently battered AI computing power supply chain, as it strongly weakens the pessimistic assumption that AI infrastructure demand has peaked. UMC’s robust performance shows that orders are now spreading from the most advanced process AI computing chips to mature process node peripheral chips, such as those in the power supply chain.