Taiwan's 'Other' Chip Giant Clocks Strong Performance As Consumer Demand Roars Back

Taiwan-based United Microelectronics Corp, a salient global semiconductor foundry, reported fiscal first-quarter results connected Wednesday.

For the quarter, the institution reported revenue of $1.93 cardinal (61.04 cardinal New Taiwanese dollars), up 5.5% year-on-year.

The fig marginally missed the analyst statement estimation of $1.97 billion. On a sequential basis, gross declined by 1.2%.

Earnings per American Depositary Share (ADS) came successful astatine 20.4 cents, besides topping the analyst statement of 12 cents.

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Advanced Node Contribution and Margins

The institution reported coagulated advancement successful its precocious process nodes, with 22nm and 28nm technologies contributing 34% of wafer revenue, down from 37% year-over-year and 36% successful the anterior quarter.

Revenue from 40nm exertion roseate to 18% from 16% a twelvemonth earlier, and 17% successful the 4th fourth of 2025.

Capacity utilization besides strengthened, improving to 79% from 69% a twelvemonth agone and 78% successful the erstwhile quarter.

The gross borderline roseate to 29.2% from 26.7% successful the aforesaid play past year. The operating borderline for the 4th was 18.50%, up from 16.90% successful the anterior twelvemonth quarter.

Capital expenditures for the 4th totaled $416 million.

Executive Commentary

UMC CEO Jason Wang said first-quarter wafer shipments roseate 2.7% quarter-on-quarter, driven by beardown user demand, which lifted utilization to 79%.

He noted that, contempt a diminution successful mean selling prices, driven successful portion by higher 8-inch shipments, gross borderline remained dependable astatine 29.2%.

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Wang added that request for 22nm logic and specialty processes continued to build, with 22nm gross reaching a grounds and accounting for 14% of full revenue. He said much than 50 customers are expected to implicit tape-outs connected 22nm platforms by year-end crossed applications specified arsenic show drivers, networking chips, and microcontrollers.

He besides highlighted ongoing investments beyond 22nm, including a 12nm collaboration with Intel to support exertion continuity and U.S.-based manufacturing, arsenic good arsenic caller initiatives specified arsenic a concern to deploy thin-film lithium niobate photonics for AI infrastructure.

Looking ahead, Wang said UMC expects beardown shipment maturation successful the 2nd 4th crossed some 8-inch and 12-inch wafers, supported by a rebound successful the communications marketplace and dependable request from the computer, consumer, and concern markets.