Company - OpenAI will begin testing advertisements in ChatGPT to seek new revenue sources [5] - Google has requested a U.S. judge to postpone the order to share data during its appeal [5] - JPMorgan has surpassed Dimensional to become the world's largest active ETF company [6] - Fannie Mae and Freddie Mac continue to decline, raising concerns about their IPO prospects [6] - Spotify plans to generate significant profits through another price increase [6] Industry - The U.S. housing builder confidence index has dropped to 37 in January, marking the first decline in five months and falling below all estimates [5] - The U.S. manufacturing output is expected to grow in the last few months of 2025 [5] - The job market remains a concern, with the Federal Reserve advised to prepare for potential rate cuts [6] - The artificial intelligence sector is accelerating job reductions in key global industries [6] - Oil prices have slightly recovered, but traders remain cautious about risks related to Iran [6]

Core Viewpoint - UMC (United Microelectronics Corporation) has seen a stock increase of over 5%, reaching $9.27, following a strategic partnership with Unimicron Technology Corporation focused on high-end manufacturing needs in the AI era [1] Group 1: Partnership Details - UMC plans to invest NT$700 million in Unimicron's cash capital increase [1] - Unimicron intends to issue unsecured corporate bonds not exceeding NT$15 billion [1] Group 2: Strategic Implications - The collaboration aims to integrate Unimicron into UMC's advanced semiconductor packaging supply chain [1] - This partnership is designed to address TSMC's CoWoS capacity bottleneck by enhancing the "wafer manufacturing + PCB/substrate + packaging testing" ecosystem [1]

Group 1 - The semiconductor sector in the US stock market experienced a collective increase on Friday, with notable gains among several companies [1] - Astera Labs (ALAB.US) saw a rise of over 6%, while United Microelectronics (UMC.US) increased by more than 5.8% [1] - Advanced Micro Devices (AMD.US) and Marvell Technology (MRVL.US) both rose by 1.9%, Broadcom (AVGO.US) increased by 0.9%, and Nvidia (NVDA.US) saw a gain of 0.48% [1]

Core Viewpoint - UMC (United Microelectronics Corporation) shares rose by 5.7% to $9.27 following a strategic partnership with leading substrate manufacturer, Unimicron Technology, focusing on high-end manufacturing needs in the AI era [1] Group 1: Partnership Details - UMC plans to invest NT$700 million in Unimicron's cash capital increase [1] - Unimicron intends to issue unsecured corporate bonds not exceeding NT$15 billion [1] Group 2: Strategic Implications - The collaboration aims to integrate UMC into the advanced packaging core industry chain of semiconductors [1] - This partnership is designed to enhance the ecosystem of "wafer manufacturing + PCB/substrate + packaging testing" to address TSMC's CoWoS capacity bottleneck [1]

Core Viewpoint - SST and UMC have successfully qualified and released the embedded SuperFlash Gen 4 (ESF4) with full automotive grade 1 (AG1) capability on UMC's 28HPC+ process platform, addressing the automotive industry's demand for high-performance vehicle controllers while reducing manufacturing complexity and costs [1][2][4]. Company and Industry Developments - SST developed the ESF4 in collaboration with UMC to enhance embedded non-volatile memory (eNVM) performance and reliability for automotive controllers, significantly reducing additional masking steps compared to other foundries' offerings [2][4]. - The automotive controller shipment volumes are rapidly increasing, necessitating innovative solutions for various vehicle applications, with the ESF4 designed to support high-capacity firmware and over-the-air (OTA) update flexibility [5]. - UMC's 28HPC+ ESF4 AG1 platform features key performance metrics, including read access time of less than 12.5ns, over 100,000 endurance cycles, and data retention exceeding 10 years at 125°C, with zero bit failures during qualification [7].

Core Insights - The recent changes in the 8-inch wafer supply-demand landscape are driven by TSMC and Samsung's gradual production cuts, alongside robust growth in AI-related power IC demand and preemptive inventory stocking by customers due to concerns over rising IC costs in the second half of the year [1][2] Group 1: Supply and Demand Dynamics - TSMC has officially begun to reduce its 8-inch capacity starting in 2025, with plans for some facilities to cease operations by 2027, while Samsung is also adopting a more aggressive reduction strategy [1] - TrendForce forecasts a 0.3% decline in global 8-inch capacity in 2025, entering a negative growth phase, with a further expected reduction of 2.4% in 2026 despite minor expansions from companies like SMIC and Vanguard [1] - The demand side is bolstered by increased orders for AI server power ICs and a trend towards localizing IC production in China, leading to higher capacity utilization rates among Chinese wafer foundries [1] Group 2: Price Adjustments and Market Outlook - In 2026, the demand for power-related ICs driven by AI applications is expected to support an increase in global 8-inch average capacity utilization rates to 85-90%, significantly higher than the 75-80% in 2025 [2] - Some wafer foundries anticipate a tightening of 8-inch capacity in 2026 and have notified customers of planned price increases ranging from 5% to 20% across all customer segments and process platforms [2] - The actual price increase for 8-inch wafers may be moderated due to concerns in consumer electronics and rising costs from memory and advanced process technologies [2] Group 3: TSMC's Capacity Reallocation - TSMC is adjusting its mature process capacity configuration, which reflects a shift towards advanced processes and packaging resources, benefiting 8-inch platforms and long-term customers in automotive and industrial control sectors [4] - The company has begun transferring equipment to its subsidiary, World Advanced, in preparation for the anticipated demand shift in mature processes, with a transaction value of approximately $20-23 million [5] - TSMC's exit from the high-voltage GaN foundry market has released capacity and customer demand, allowing other companies like Powertech to step in and capitalize on the AI power supply chain [6]

Group 1 - United Microelectronics Corp. (UMC) reached a new three-year high, with stock prices peaking at $9.11 before closing at $8.93, reflecting a 9.98% increase [1] - The company's net sales for the full year 2025 rose by 2.26% to NT$237 million compared to NT$232 million in the previous year [2] - December 2025 net sales increased by 1.66% to NT$19.28 million from NT$18.96 million in December 2024 [2] Group 2 - UMC anticipates flat wafer shipments on a quarter-on-quarter basis for the fourth quarter, while gross profit margin is expected to rise to the high-20-percent range [3] - UMC is recognized as one of the leading semiconductor companies globally [3]

Market Overview - U.S. stocks showed mixed performance, with the Dow Jones index declining approximately 0.2% on Wednesday [1] Company Highlights - Monte Rosa Therapeutics Inc (NASDAQ:GLUE) experienced a significant increase in share price, rising 45.2% to $23.25 after announcing interim data from a Phase 1 clinical study for MRT-8102 [1] - Ventyx Biosciences Inc (NASDAQ:VTYX) shares surged 37.5% to $13.82 following reports of advanced acquisition talks with Eli Lilly & Co. (NYSE:LLY) for over $1 billion [2] - Neumora Therapeutics Inc (NASDAQ:NMRA) saw a rise of 24.7% to $2.27 [2] - Regencell Bioscience Holdings Ltd (NASDAQ:RGC) increased by 21.1% to $40.00 [2] - Erasca Inc (NASDAQ:ERAS) rose 17.1% to $4.25, with Piper Sandler initiating coverage with an Overweight rating and a price target of $5 [2] - Anywhere Real Estate Inc (NYSE:HOUS) gained 15.6% to $16.71 [2] - AXT Inc (NASDAQ:AXTI) increased by 13.8% to $22.96 [2] - Immuneering Corp (NASDAQ:IMRX) rose 13.1% to $7.60 [2] - Compass Therapeutics Inc. (NASDAQ:CMPX) gained 13.1% to $5.56 [2] - MBX Biosciences Inc (NASDAQ:MBX) rose 11.2% to $31.90 [2] - Rezolve AI PLC (NASDAQ:RZLV) increased by 10.8% to $3.36 [2] - United Microelectronics Corp (NYSE:UMC) gained 10.4% to $8.96 after reporting sales growth for December and the full year [2] - PBF Energy Inc (NYSE:PBF) rose 9.2% to $29.73 [2] - Navan Inc (NASDAQ:NAVN) increased by 8.3% to $18.42 [2] - Ascentage Pharma Group International (NASDAQ:AAPG) gained 8.3% to $28.17 after announcing IND clearance for BTK Degrader APG-3288 by the U.S. FDA [2] - Intel Corp (NASDAQ:INTC) rose 6.4% to $42.60 as the company is enhancing its gaming strategy by developing a new chip for handheld gaming devices [2]

Market Overview - As of January 7, U.S. stock index futures showed mixed results, with Dow futures up by 0.04%, S&P 500 futures down by 0.08%, and Nasdaq futures down by 0.24% [1] - European indices also displayed varied performance, with Germany's DAX up by 0.55%, the UK's FTSE 100 down by 0.65%, and France's CAC40 down by 0.15% [2][3] - WTI crude oil prices fell by 0.37% to $56.92 per barrel, while Brent crude oil decreased by 0.10% to $60.64 per barrel [3][4] Economic Data and Predictions - The U.S. is set to release key employment data, including the December ADP employment report, which is expected to show an increase of 47,000 jobs, rebounding from a previous negative forecast of 32,000 jobs [5] - The JOLTs report is anticipated to show a slight decline in job openings to 7.6 million for November [5] - In the options market, traders are increasingly betting that the 10-year U.S. Treasury yield will drop below 4% in the coming weeks, reflecting a bullish sentiment [6] Company News - Warner Bros. rejected a revised acquisition proposal from Paramount, reaffirming its support for a merger with Netflix, which it believes is a superior option [9] - United Microelectronics Corporation (UMC) reported a 2.26% year-over-year revenue growth for 2025, reaching NT$237.55 billion, marking the second-highest revenue in its history [9] - Meta announced a significant demand for its AI smart glasses in the U.S., leading to a delay in its global expansion plans due to inventory constraints [10] - NVIDIA's CFO indicated that the company's revenue will likely exceed the previously projected $500 billion by the end of 2026, driven by strong demand in the data center business [11] - Ventyx Biosciences shares surged by 56.22% following reports of a potential $1 billion acquisition by Eli Lilly, aimed at expanding its immunology portfolio [12] - Chevron is reportedly collaborating with Quantum Energy Partners to acquire international assets from Lukoil, valued at $22 billion [13]

Core Insights - United Microelectronics Corporation (UMC) reported a consolidated revenue of NT$19.28 billion for December 2025, a decrease of 9.2% compared to November, but an increase of 1.66% year-over-year [1] - The consolidated revenue for Q4 2025 reached NT$61.8 billion, reflecting a quarter-over-quarter growth of 4.5%, outperforming expectations [1] - For the full year 2025, UMC's total revenue amounted to NT$237.55 billion, representing a year-over-year growth of 2.26%, marking the second-highest annual revenue after 2022 [1] Revenue and Forecasts - UMC forecasts that the wafer shipment volume in Q4 2025 will remain stable compared to Q3, with the average selling price (ASP) expected to hold steady [1] - The gross margin is anticipated to reach 28.92%, although capacity utilization is projected to slightly decline to a range of 74% - 76% [1] - The gross margin is expected to decrease slightly, falling within the range of 27% - 29% [1] - Capital expenditures for 2025 are projected to remain at US$1.8 billion, with an expected low double-digit percentage growth in shipment volume for the year [1] Currency Impact - UMC's CFO noted that despite a potentially favorable currency forecast, the US dollar is expected to appreciate, which could negatively impact revenue by approximately 3% due to various factors including exchange rates and depreciation [1]