United Microelectronics Corp. Sponsored ADR (UMC.US)The first batch of silicon photonics wafers in Singapore has achieved mass production, with Citigroup optimistic about performance in the second half of the year and expecting a 13% increase in sales in the second quarter.

The second largest wafer foundry in Taiwan, United Microelectronics Corp. Sponsored ADR (UMC.US), announced on Tuesday that its wafer fab in Singapore has successfully mass-produced the first batch of silicon photonics wafers. United Microelectronics Corp. Sponsored ADR aims to meet the increasing demand for high-speed optical interconnections in artificial intelligence (AI) and ultra-large-scale data center networks. In a statement, United Microelectronics Corp. Sponsored ADR stated that through collaboration with local semiconductor design company SILITH Technology, the joint team has successfully transitioned the silicon photonics platform from the development stage to production readiness within 18 months, thereby obtaining the technology to support next-generation AI infrastructure. United Microelectronics Corp. Sponsored ADR also plans to open its proprietary 12-inch silicon photonics platform to customers for product development by 2027. Prior to this, Citigroup analysts expressed optimism about the chip manufacturer's prospects in the second half of the year and predicted a 13% increase in sales in the second quarter of 2026, with a slight improvement in gross margin. To support Wall Street's upbeat sentiment, United Microelectronics Corp. Sponsored ADR recently announced strong financial performance: sales in June increased by 22.85% year-on-year to NT$23.12 billion (approximately $7.1921 billion), with a cumulative sales increase of 11.28% in the first half of the year. However, in Tuesday's trading, the company's stock price in Taiwan fell nearly 5% at one point, before regaining some lost ground and closing down 1.6%. Currently, as Singapore gradually develops into an important hub for the global semiconductor supply chain, United Microelectronics Corp. Sponsored ADR is one of many Taiwanese technology companies expanding their manufacturing footprint in Singapore. This growing ecosystem also includes Vanguard International Semiconductor Corporation, a wafer foundry with a background in Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSMC), which recently partnered with NXP Semiconductors NV to build a $7.8 billion manufacturing plant in Singapore. Silicon photonics is a key technology for transmitting and processing data at extremely high speeds. With the growth in data traffic and the push for faster optical communication, the market is experiencing significant growth. According to data from Polaris Market Research, the global market size is expected to reach approximately $3.71 billion by 2026.