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Unimicron to lease land for IC substrate capacity expansion

Taiwan's IC substrate maker Unimicron Technology has decided to lease a land lot in northern Taiwan to prepare for further capacity expansions beyond those already underway, expecting capacity demand from clients will continue to grow in the future, according to company sources.

The company said in a statement that it will spend NT$145 million (US$5.178 million) to obtain the right to use a 130,320-square feet plot owned by its subsidiary Subtron Technology in Hsinchu, northern Taiwan.

Unimicron said it will not determine how to use the rented site for production until its current expansion projects are completed and capacity demand from clients become clearer.

At its latest investors conference, Unimicron announced its capex for 2021 will reach a record high of NT$27 billion, mainly to support the ongoing construction of a new plant in northern Taiwan dedicated to producing ABF substrates (reportedly for Intel), to convert part of production lines at existing local plants to increase capacity for ABF substrates, and to incorporate production of lower-end ABF substrates at its plant in Suzhou, China.