Intel and United Microelectronics Corporation (UMC) are expanding their collaboration to develop a 3-nanometer chip manufacturing process. This agreement builds upon an existing partnership for 12nm technology.
Production for both processes will occur at Intel’s manufacturing facilities in Arizona. Intel aims to grow its foundry business and challenge TSMC’s market dominance through the alliance.
The deal provides UMC a path to the advanced chip market without the high costs of building new fabrication plants. Intel shares gained over 4% in premarket trading, while UMC surged more than 13%.