Market Performance - The three major U.S. stock indices closed lower, with the Dow Jones down 0.84% at 46,912.3 points, the S&P 500 down 1.12% at 6,720.32 points, and the Nasdaq down 1.9% at 23,053.99 points [1] - Major tech stocks fell, with Nvidia and Tesla dropping over 3%, Intel, Amazon, and Meta down over 2%, and Microsoft down over 1% [1] - Popular Chinese concept stocks showed mixed results, with Xiaoma Zhixing down over 8%, Zai Ding Pharmaceutical down over 6%, and NIO down over 1%, while XPeng Motors rose over 9% and Baidu up over 3% [1] European Market - European stock indices also closed lower, with Germany's DAX down 1.29% at 23,740.38 points, France's CAC40 down 1.36% at 7,964.77 points, and the UK's FTSE 100 down 0.42% at 9,735.78 points [1] Commodity Prices - International precious metal futures generally declined, with COMEX gold futures down 0.20% at $3,984.80 per ounce and COMEX silver futures down 0.37% at $47.85 per ounce [1] - U.S. oil futures fell slightly, with the main contract down 0.12% at $59.53 per barrel and Brent crude down 0.08% at $63.47 per barrel [1] Currency and Bond Markets - The U.S. dollar index decreased by 0.45% to 99.70, while the offshore RMB appreciated against the dollar by 104 basis points to 7.1209 [1] - U.S. Treasury yields collectively fell, with the 2-year yield down 7.20 basis points to 3.553% and the 10-year yield down 7.60 basis points to 4.083% [1] - European bond yields also declined, with the UK 10-year yield down 2.9 basis points to 4.432% and Germany's 10-year yield down 2.3 basis points to 2.648% [1]

Core Viewpoint - United Microelectronics Corporation (UMC) reported a slight decline in net sales for October 2025 compared to the previous year, while year-to-date sales showed a modest increase [1][2]. Financial Performance - October 2025 net sales were NT$21,294.974 million, a decrease of NT$76.136 million or 0.36% year-over-year from NT$21,371.110 million in October 2024 [2]. - Year-to-date sales from January to October 2025 reached NT$197,038.628 million, reflecting an increase of NT$3,751.044 million or 1.94% compared to NT$193,287.584 million in the same period of 2024 [2]. Additional Information - UMC is a leading global semiconductor foundry, and further details about the company can be found on their official website [1].

Core Insights - United Microelectronics Corporation (UMC) reported a consolidated revenue of NT$59.13 billion for Q3 2025, reflecting a 0.6% increase from Q2 2025 but a 2.2% decrease year-over-year [2][5][6] - The company achieved a gross margin of 29.8% and a net income attributable to shareholders of NT$14.98 billion, translating to earnings per share of NT$1.20 [2][5][6] - UMC's 22nm technology platforms are gaining traction, contributing over 10% to total sales, with expectations for continued growth in 2026 [3][5] Financial Performance - Q3 2025 operating revenues were NT$59.13 billion, up from NT$58.76 billion in Q2 2025, but down from NT$60.485 billion in Q3 2024 [4][6] - Gross profit increased by 4.4% QoQ to NT$17.62 billion, while operating expenses rose by 7.8% to NT$6.97 billion [4][8] - Net income attributable to shareholders increased by 68.3% QoQ to NT$14.98 billion, with a net non-operating income of NT$3.53 billion [4][6][13] Operational Metrics - Wafer shipments increased by 3.4% QoQ to 1,000K, with a capacity utilization rate of 78% [24][25] - Revenue from 40nm and below technologies accounted for 52% of wafer revenue, while revenue from 22/28nm technologies represented 35% [5][19] - The company anticipates wafer shipments in Q4 2025 to remain flat compared to Q3 2025 [31] Regional and Customer Insights - Revenue from North America increased to 25%, while Asia Pacific decreased to 63% [17][18] - Fabless customers contributed 81% of total revenue, with the communication segment accounting for 42% of sales [21][22] Cash Flow and Capital Expenditure - Cash inflow from operating activities was NT$20.94 billion, while cash outflow from investing activities totaled NT$16.15 billion, resulting in free cash flow of NT$8.93 billion [11][12] - Capital expenditures in Q3 2025 amounted to US$399 million, with a total CAPEX budget of US$1.8 billion for 2025 [29][30] Environmental Commitment - UMC is committed to achieving net zero greenhouse gas emissions by 2050 and has received validation from the Science Based Targets initiative for its emissions reduction targets [3][37]

Core Insights - UMC reported Q3 2025 revenue of $1.94 billion, a 1.6% year-over-year increase, exceeding expectations by $50 million [1] - The company achieved an earnings per ADS of $0.197, surpassing the forecast by $0.08 [1] - Net profit attributable to shareholders was NT$14.98 billion, with a consolidated gross margin of 29.8% and an operating profit margin of 18.8% [1] Revenue and Market Performance - The company observed a 3.4% increase in wafer shipments, driven by demand growth across most market sectors, particularly benefiting from a rebound in smartphone and laptop sales [1] - The 22nm technology platform accounted for over 10% of total sales, with expectations of over 50 product launches in 2025, and continued growth contribution anticipated in 2026 [1] - Revenue from 40nm and below technologies contributed 52% of wafer revenue, with 22/28nm revenue making up 35% [1] Future Outlook - UMC expects Q4 wafer shipments to remain consistent with Q3 levels, projecting low double-digit growth to conclude 2025 [2] - The company aims to maintain competitive process technologies to support diverse applications, particularly anticipating growth driven by the 22nm logic and specialty platforms [2]

Financial Data and Key Metrics Changes - In Q3 2025, consolidated revenue was NT$59.13 billion, with a gross margin of 29.8% and net income attributable to stockholders of NT$14.98 billion, resulting in earnings per share of NT$1.2 [4][5] - Revenue increased slightly by 0.02% compared to the previous quarter, primarily due to higher wafer shipments, despite a 3% unfavorable impact from the NT dollar exchange rate [5] - Year-over-year, revenue for the first three quarters grew by 2.2% to NT$175.7 billion, while net income per share decreased from NT$3.12 in 2024 to NT$2.54 in 2025 [5][6] Business Line Data and Key Metrics Changes - The communication and computer segments saw an increase in sales mix, while the consumer segment declined by nearly 4 percentage points to 29% in Q3 2025 [7] - The 22-nanometer and 28-nanometer technology nodes remained the main focus, with their combined revenue reaching about 35% [7] - Wafer shipments increased by 3.4% in Q3 2025, driven by demand growth in smartphones and notebooks [9] Market Data and Key Metrics Changes - North America accounted for approximately 25% of total revenue in Q3 2025, up from 20% in the previous quarter, while Asia's share declined to 63% [7] - The company expects wafer shipment growth in the low teens for 2025, supported by differentiated technology offerings [15] Company Strategy and Development Direction - UMC is focusing on enhancing its 22-nanometer technology platform, which is projected to contribute significantly to revenue growth in 2026 [9][15] - The company is expanding its addressable market into advanced packaging and 12-nanometer technology, aligning with customer needs for power efficiency and high bandwidth [17][45] - UMC aims to maintain a balanced capacity split between Taiwan and overseas locations to address geopolitical concerns and supply chain resilience [29] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the business outlook for 2026, despite ongoing global economic uncertainties [15][29] - The company anticipates that the demand for 22-nanometer technology will continue to drive growth, with expectations of double-digit year-over-year growth in 2026 [15][56] - Management highlighted the importance of technology differentiation and customer trust in navigating geopolitical risks [29] Other Important Information - UMC's annual capital expenditure (CapEx) budget is set at NT$1.8 billion, with 90% allocated to 12-inch and 8-inch technologies [8] - The company is actively monitoring supply chain dynamics, particularly concerning rare earth materials and their potential impact on operations [28][38] Q&A Session Summary Question: Near-term outlook and end market trends - Management indicated that Q4 wafer shipments are expected to remain flat, with growth driven by differentiated technology offerings [14][15] Question: Gross margin expectations - Management expects Q4 gross margin to remain in the high 20% range, influenced by depreciation and product mix [20][21] Question: Geopolitical uncertainties and tariffs - Management acknowledged potential risks from tariffs but emphasized a focus on technology differentiation and supply chain resilience [28][29] Question: Pricing trends for 22 and 28-nanometer technologies - Management stated that pricing strategies remain consistent, with a focus on protecting market share [61][62] Question: Update on U.S. collaboration and 12-nanometer technology - The collaboration with Intel is progressing well, with early product takeout expected in 2027 [77][87] Question: Advanced packaging and wafer-to-wafer technology - Management highlighted ongoing development in advanced packaging solutions, with a focus on deep trench capacitors and wafer-to-wafer stacking capabilities [45][92]

Financial Data and Key Metrics Changes - In Q3 2025, consolidated revenue was NT$59.13 billion, with a gross margin of 29.8% and net income attributable to stockholders of NT$14.98 billion, resulting in earnings per share of NT$1.2 [4][5] - Revenue increased slightly by 0.02% compared to the previous quarter, primarily due to higher wafer shipments, despite a 3% unfavorable impact from the NT dollar exchange rate [5] - Year-over-year, revenue for the first three quarters grew by 2.2% to NT$175.7 billion, while net income per share decreased from NT$3.12 in 2024 to NT$2.54 in 2025 [5][6] Business Line Data and Key Metrics Changes - The communication and computer segments saw an increase in sales mix, while the consumer segment declined by nearly 4 percentage points to 29% in Q3 2025 [7] - The 22-nanometer and 28-nanometer technology nodes remained the main focus, with their combined revenue reaching about 35% [7] - The capacity utilization rate improved to 78%, with wafer shipments reaching 1 million 12-inch equivalent wafers [4][9] Market Data and Key Metrics Changes - North America accounted for approximately 25% of total revenue in Q3 2025, up from 20% in the previous quarter, while Asia's share declined to 63% [7] - The company anticipates continued demand growth across most market segments, particularly in smartphones and notebooks [9] Company Strategy and Development Direction - UMC is focusing on differentiated specialty technologies, with the 22-nanometer technology platform expected to contribute significantly to revenue growth in 2026 [9][10] - The company plans to maintain a balanced capacity split between Taiwan and overseas locations to enhance supply chain resilience [29] - UMC is preparing for advanced packaging solutions to meet the growing demand in AI and HPC markets, with a focus on deep trench capacitor technology [44] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the business outlook for 2026, expecting continued growth driven by 22-nanometer and specialty process technologies [15][16] - The geopolitical landscape and potential tariffs were acknowledged as risks, but management emphasized a focus on technology differentiation and customer trust [28][29] - The company expects wafer shipments to remain flat in Q4 2025, with gross margins projected to be in the high 20% range [10][21] Other Important Information - Annual capital expenditures are projected to reach NT$1.8 billion, with 90% allocated to 12-inch and 8-inch technologies [8] - Cash reserves remain above NT$100 billion, and total equity is NT$361 billion at the end of Q3 2025 [6] Q&A Session Summary Question: Near-term outlook and end market trends - Management indicated that Q4 wafer shipments are expected to grow in the low teens, supported by differentiated technology and strong demand recovery [14][15] Question: Gross margin expectations - Management expects Q4 gross margins to remain in the high 20% range, influenced by depreciation and product mix [20][21] Question: Geopolitical uncertainties and tariffs - Management acknowledged potential tariff impacts but emphasized a focus on maintaining competitive positioning through geographic diversification [28][29] Question: Pricing trends for 22 and 28-nanometer technologies - Management stated that pricing strategies remain consistent, with expectations for firm pricing in the upcoming year [61][62] Question: Update on U.S. collaboration and 12-nanometer technology - The collaboration with Intel is progressing well, with early product takeout expected in 2027 [77][87] Question: Advanced packaging and market opportunities - UMC is developing advanced packaging solutions, including deep trench capacitors, to address future market demands [44][92]

Financial Data and Key Metrics Changes - In Q3 2025, consolidated revenue was NT$59.13 billion, with a gross margin of 29.8% and net income attributable to stockholders of NT$14.98 billion, resulting in earnings per share of NT$1.2 [4][5] - Revenue increased slightly by 0.02% compared to the previous quarter, primarily due to higher wafer shipments, despite a 3% unfavorable impact from the NT dollar exchange rate [5] - Year-over-year, revenue for the first three quarters grew by 2.2% to NT$175.7 billion, while net income per share decreased from NT$3.12 in 2024 to NT$2.54 in 2025 [5][6] Business Line Data and Key Metrics Changes - The communication and computer segments saw an increase in sales mix, while the consumer segment declined by nearly 4 percentage points to 29% in Q3 2025 [6] - The 22-nanometer and 28-nanometer technology nodes remained the main focus, with their combined revenue reaching about 35% [6] Market Data and Key Metrics Changes - North America accounted for approximately 25% of total revenue in Q3 2025, up from 20% in the previous quarter, while Asia's share declined to 63% [6] - The company observed demand growth across most market segments, particularly benefiting from increased sales of smartphones and notebooks [9] Company Strategy and Development Direction - The company is focusing on providing differentiated specialty technologies, with the 22-nanometer technology platform expected to drive growth and account for over 10% of total sales in 2025 [9][10] - UMC plans to maintain a cash-based CAPEX budget of $1.8 billion for 2025, with 90% allocated to 12-inch and 8-inch technologies [8] Management's Comments on Operating Environment and Future Outlook - Management anticipates wafer shipments to remain flat in Q4 2025, with a projected low teens growth for the full year [10][15] - Despite geopolitical uncertainties, the company remains confident in its growth momentum, particularly in the 22-nanometer and specialty process technologies [17][18] Other Important Information - The company is expanding its addressable market into advanced packaging and 12-nanometer technology, with a focus on AI and high-bandwidth applications [40][41] - The 12-nanometer collaboration with Intel is progressing well, with early product takeout expected in 2027 [67] Q&A Session Summary Question: Near-term outlook and end market trends - Management indicated that Q4 wafer shipments are expected to be flat, with growth driven by differentiated technologies and strong customer demand [14][15] Question: Gross margin sustainability - Management explained that gross margin is influenced by various factors, including product mix and depreciation, and expects Q4 gross margin to remain in the high 20% range [21][22] Question: Geopolitical uncertainties and tariffs - Management acknowledged potential risks from tariffs but emphasized a focus on technology differentiation and geographic diversification to mitigate impacts [27][28] Question: Pricing strategy and ASP outlook - Management stated that ASP has remained firm and will provide more details in the upcoming January 2026 conference call [31][32] Question: Advanced packaging and interposer strategy - The company is developing advanced packaging solutions, including 2.5D interposer technology, to meet the growing demand in AI and HPC markets [40][41] Question: Collaboration with Intel on 12-nanometer technology - The collaboration is on track, with early PDK ready for customers in January 2026, and potential for future opportunities beyond 12-nanometer technology [67][68]

Group 1 - UMC's stock price increased by 1.44% to $7.74 in pre-market trading [1] - In Q3, UMC reported revenue of NT$ 591.3 billion, slightly below the estimate of NT$ 592.7 billion [1] - The net profit for Q3 was NT$ 149.8 billion, significantly higher than the estimated NT$ 98.8 billion [1] Group 2 - UMC expects Q4 wafer shipments to remain flat quarter-over-quarter, with average selling prices stable [1] - The gross margin is projected to stay in the high 20% range, and capacity utilization is expected to maintain at around 70% [1] - UMC reaffirmed its capital expenditure for 2025 at $1.8 billion [1]

Financial Performance (3Q25) - Operating Revenues reached NT$59,127 million[7], a 0.6% increase QoQ[8] - Net Income Attributable to Shareholders of the Parent was NT$14,982 million[7], with EPS (NTD) at 1.20[7], a 68.3% increase QoQ[8] - Gross Profit was NT$17,623 million[8], representing a gross margin of 29.8%[8], a 4.4% increase QoQ[8] - Net Income was NT$14,944 million[8], a 68.9% increase QoQ[8] Financial Performance (Year-to-Date) - Operating Revenues for Jan-Sep 2025 were NT$175,744 million[10], a 2.2% increase YoY[10] - Net Income Attributable to Shareholders of the Parent was NT$31,661 million[10], an 18.2% decrease YoY[10] - Gross Profit was NT$49,948 million[10], representing a gross margin of 28.4%[10], a 12.8% decrease YoY[10] - Net Income was NT$31,535 million[10], an 18.4% decrease YoY[10] Foundry Segment - Wafer Shipments were 1,000 thousand (12" wafer eq)[7] - Utilization rate was 78%[7] - Capital Expenditure plan for 2025 is $1.8 billion USD, with 90% allocated to 12" and 10% to 8"[26]

Regulatory Compliance - United Microelectronics Corporation filed a Form 6-K on October 28, 2025, as per the Securities Exchange Act of 1934[1] - The report was signed by CFO Chitung Liu, indicating the company's compliance with regulatory requirements[5] Financial Performance - The filing does not contain specific financial performance data or future outlook details[1]