United Microelectronics Corporation (UMC) reportedly will begin fabricating MediaTek's dual-core chips using its PolySiON 28nm process in June, according to industry sources.

　　Buoyed by an improvement in the yield rate of the 28nm process at UMC, MediaTek has placed orders for over 1,000 wafer starts at the foundry house, the sources indicated.

　　Additionally, Qualcomm reportedly has followed the steps of MediaTek and has also placed small-volume 28nm chip orders at UMC, the sources added.

　　UMC plans to migrate to a more high-end HKMG process for production of 28nm chips in the second half of 2014, the sources revealed.

　　UMC is likely to hike its capex budget for 2014 due to strong orders received at its 8- and 12-in fabs as well as the progress made in the 28nm process, said the sources, adding that UMC has seen its order visibility extend to the third quarter of 2014.