Winbond: Customer Long‑Term Agreements Stretching to 2030, Kaohsiung New Fab Expansion Launched

Existing Capacity Nearing Limits, Expansion Becomes Imperative

Winbond's existing Module A in Kaohsiung currently has a monthly production capacity of approximately 15,000 wafers, which is expected to rise to 24,000 wafers by the end of the year. At present, 16nm monthly capacity stands at only about 2,000 wafers. The company's ideal target is to lift 16nm output to 16,000 wafers per month going forward, yet the conversion pace hinges on customer demand for 20nm products. 

Prior to Module B's mass‑production launch, Winbond will also maximise effective output from its existing site through process miniaturisation, yield improvement and product‑mix adjustments.

Winbond expects total 2026 capital expenditure of around NT$39.5 billion. Approximately NT$7.5 billion has already been deployed in the first half of the year, mainly for equipment expansion and process upgrades at the Kaohsiung fab.

Customer Long‑Term Agreements Stretching to 2030, Kaohsiung Module B Initiated

Chen Pei‑Ming, President of Winbond Electronics, stated that memory supply tightness is clear. Many customers are not satisfied with their existing long‑term agreements and wish to extend them to 2029 or even 2030, while locking in capacity from the upcoming Kaohsiung Module B new fab in advance.

Nevertheless, upon completion of Module A expansion, nearly all on‑site factory space will be exhausted. To address strong customer demand for post‑2029 capacity, the company has officially kicked off Module B construction. Groundbreaking is scheduled for January 2027. If construction progresses smoothly, equipment installation may start in January 2029. Equipment will be delivered and ramped in phases. Large‑scale mass production is targeted for Q4 2029, whereas tangible output and revenue contributions will mostly come through in 2030.

In capacity terms, the new fab features a cleanroom area of roughly 30,000m², nearly twice that of the current Kaohsiung site. When fully tooled, it can support a monthly capacity of 50,000‑60,000 wafers. Winbond will pursue a phased‑expansion strategy, with the first phase likely building 10,000, 15,000 or 20,000 wafers of capacity. Further capacity additions will follow based on customer demand, product mix and long‑term supply agreements. Future offerings will include standard DRAM, CUBE, Wafer‑on‑Wafer, customised ASIC memory chips and silicon capacitors. Exact equipment configurations will be adjusted according to customer forecasts and commitments.

In terms of manufacturing processes, Module B will support next‑generation 14nm and future 12nm DRAM nodes, with EUV equipment planned for introduction. Winbond will first develop a non‑EUV variant of the 14nm process, and later deploy EUV technologies to prepare for 12nm mass production.

Additionally, Winbond stressed that future long‑term agreement signings will not prioritise order volume alone. Instead, the firm will favour strategic customers with 5‑10‑year long‑term competitiveness, stable demand, and willingness to share capacity‑investment costs. This ensures the substantial capital outlay for Module B aligns with long‑term order commitments.