Taiwanese chipmaker United Microelectronics Corp (UMC) announced on Thursday that it has signed a memorandum of understanding with U.S.-based Polar Semiconductor to explore collaboration on 8-inch wafer production in the United States.

In a statement, UMC said the two companies will identify product categories to be manufactured at Polar Semiconductor’s recently expanded 8-inch wafer fab in Minnesota, catering to industries such as automotive, data centers, consumer electronics, aerospace, and defense.

As Taiwan’s second-largest foundry after TSMC, UMC primarily operates wafer fabs in Taiwan, with additional production facilities in Japan and Singapore. The partnership with Polar Semiconductor marks a strategic step in expanding UMC’s overseas production capacity, strengthening its global manufacturing network and reducing reliance on a single region.

Amid shifting geopolitical dynamics, the collaboration aims to enhance U.S. domestic manufacturing capabilities for 8-inch wafers and mitigate dependence on single-region chip supply. It also provides customers with diversified sourcing options, supporting multi-supplier strategies to improve supply chain resilience.

Industries such as automotive, data centers, consumer electronics, aerospace, and defense will directly benefit from the expanded 8-inch wafer capacity, easing supply chain constraints.

The partnership combines Polar Semiconductor’s U.S. manufacturing expertise with UMC’s 8-inch technology portfolio and global customer base, offering support for customers’ multi-sourcing strategies.

Ken Obuszewski, Vice President of Marketing at Polar Semiconductor, stated, "This collaboration aligns with our strategy to meet growing demand for domestic manufacturing."

Oliver Chang, Senior Vice President of Global Sales at UMC, added, "This partnership directly addresses customer demand for more U.S.-made chips."

UMC, Taiwan’s second-largest foundry, operates most of its wafer fabs in Taiwan, with additional production sites in Japan and Singapore.