UMC, the world’s third-largest chip foundry, said Wednesday, Oct 29, that it has grabbed a larger piece of the 28 nanometer business that is dominated by Taiwan Semiconductor Manufacturing Company Ltd (TSMC). UMC reiterated its capital expenditure for this year at about US$1.3 billion.

Twenty-eight nanometer has been the sweet spot for foundry leader TSMC for nearly two years, virtually the sole supplier in that technology node to customers such as Qualcomm and Apple in communications products including smartphones and tablets. During the third quarter this year, 28nm accounted for 34 percent of TSMC’s total wafer revenues, while 20nm reached 9 percent.

UMC said that 28nm products accounted for 3 percent of its foundry revenue during the third quarter this year, up from 1 percent during the previous quarter. The company expects continuing increases from the process technology during the rest of the year.

“Twenty-eight nanometer revenue will more than double during the fourth quarter compared with the third quarter,” UMC CEO Po-Wen Yen said during a conference call to announce the company’s third-quarter financial results. “We have more than 20 customers engaged, more than 15 in tape-out, and five in production.”

UMC has “turned a corner in volume,” Bank of America Merrill Lynch analyst Daniel Heyler said.

UMC said its 28nm yield progress for poly-SiON and gate-last, high-K metal gate products has continued to improve, helping to attract new customers and diversify the company’s customer base in advanced nodes.

The company’s 14nm FinFET process technology is on track and will be available for customer tape-outs during the first half of 2015, CEO Yen said.

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