Taiwan-based chipmaker United Microelectronics Corporation (UMC) announced on Thursday that it has entered a memorandum of understanding (MoU) with U.S.-based Polar Semiconductor to explore collaborative manufacturing of 8-inch wafers in the United States. This move highlights growing efforts to expand domestic semiconductor production amid global supply chain shifts and geopolitical concerns.

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Collaboration to Expand U.S. 8-Inch Chip Manufacturing

According to a joint statement from UMC and Polar, the companies will work together to identify specific products to be produced at Polar Semiconductor’s recently expanded 8-inch fabrication facility in Minnesota. The partnership aims to meet demand from a variety of sectors, including:

• Automotive industry
• Data centers
• Consumer electronics
• Aerospace and defense

By combining Polar’s U.S. manufacturing capabilities with UMC’s advanced 8-inch technology portfolio, the collaboration seeks to enhance supply chain resilience and support customers’ multi-sourcing strategies.

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Strategic Benefits for U.S. Semiconductor Supply

Ken Obuszewski, Polar’s vice president of marketing, emphasized the strategic significance of the partnership:

“This partnership aligns with Polar’s strategy to meet the growing demand for domestic manufacturing.”

UMC’s senior vice president of global sales, Oliver Chang, added:

“It directly addresses our customers’ needs for more made-in-USA chips.”

This initiative reflects a broader trend among semiconductor companies to strengthen U.S. wafer production capacity, responding to both rising global chip demand and geopolitical uncertainties that have highlighted the importance of local manufacturing.

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UMC’s Global Presence

UMC is Taiwan’s second-largest contract chipmaker after TSMC. The company operates most of its fabrication facilities in Taiwan, with additional fabs located in Japan and Singapore. While UMC has historically focused on its Asian operations, the partnership with Polar represents a significant step toward expanding U.S.-based semiconductor production.

The collaboration is expected to bolster the competitiveness of U.S.-made chips while providing UMC with access to a growing market of domestic customers seeking reliable, locally manufactured semiconductor products.

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Market Outlook

Industry analysts view this partnership as a critical move to enhance the resilience of global semiconductor supply chains, particularly for 8-inch wafer production, which is widely used across multiple high-demand industries.

As U.S. policymakers encourage domestic semiconductor manufacturing through incentives and strategic initiatives, collaborations like UMC and Polar’s are likely to become increasingly important in shaping the future of chip supply in North America.