United Microelectronics Q2 revenue up 3.4%, sees mild rise in wafer shipments in Q3

Overview

• UMC Q2 revenue rises 3.4% yr/yr to $58.76 bln New Taiwan Dollars (NT$)

• Net income for Q2 declines 35.4% yr/yr to NT$8.90 bln

• Revenue from 22/28nm business reaches record high, accounting for 40% of sales

Outlook

• UMC expects mild increase in wafer shipments in Q3 2025

• Company anticipates decline in NT$ revenue due to forex movement

• Singapore Fab 12i Phase 3 to start production in 2026

Result Drivers

• 22/28NM BUSINESS - Record high revenue contribution from 22/28nm technologies, accounting for 40% of total sales

• UTILIZATION RATE - Increased to 76%, driven by demand in communications and imaging signal processors, NAND controllers, WiFi, and LCD controllers

• FOREIGN EXCHANGE IMPACT - Unfavorable NT dollar movements reduced gross margin by nearly 3 percentage points

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy."

• Wall Street's median 12-month price target for United Microelectronics Corp is $7.09, about 0.4% below its July 29 closing price of $7.12

Press Release: ID:nBwgN6Lla