United Microelectronics Corporation (UMC) looks to grow sales of chips from 65nm and more advanced technologies, according to UMC CEO Shih-Wei Sun speaking at the company's quarterly investors conference on Wednesday. Revenues from 65nm and 40/45nm are expected to account for 30-40% and 3%, respectively, of the foundry's total wafer sales during the second half of 2010, said Sun.

UMC revealed that sales generated from 65nm and below processes increased 1pp sequentially to 18% of its total revenues in the first quarter of 2010, when Taiwan Semiconductor Manufacturing Company (TSMC) saw its 40/65nm technology contribute 41% to its revenues.

Sun estimated UMC would see sales from its 65nm and below processes account for almost 25% in the second quarter. He indicated that UMC's 40nm logic process has demonstrated steadily higher yields for customers' products, and the company has also moved its 45nm low-power process to mass production.

Sun also pointed out that UMC's development of 28nm gate-last high-k/metal-gate (HK/MG) technology has been progressing well, with plans to achieve IP pilot capabilities at the end of 2010. He added that the company has begun working with customers on planning and initial development of advanced 20nm technology since early this year.

UMC will complete phase-three equipment installation at its 12-inch Fab 12A at the Southern Taiwan Science Park (STSP) in the third quarter, Sun said, adding that new capacity is expected to come on line in the fourth quarter. Production for 65/55nm products at its 12-inch Fab 12i in Singapore will also scale up substantially starting from the second quarter, Sun noted.

Sun also raised his projections for 2010 semiconductor and foundry market growth to 20% and 30%, respectively, from previous estimates of 13-15% and 25-28% growth.