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]

Group 1 - Wang Yi, the Foreign Minister, communicated with U.S. Secretary of State Rubio, expressing hope for mutual efforts to prepare for high-level interactions and create conditions for the development of China-U.S. relations [2] - The People's Bank of China will maintain a supportive monetary policy stance, resume open market operations for government bonds, and explore measures to support personal credit repair [2][3] - The National Bureau of Statistics reported that profits of industrial enterprises above designated size increased by 21.6% year-on-year in September, with high-tech manufacturing and equipment manufacturing showing rapid growth [3] Group 2 - The State Administration of Foreign Exchange will introduce nine new policy measures focusing on trade facilitation, including expanding cross-border trade pilot programs and optimizing foreign exchange fund settlement for new trade entities [3] - The Ministry of Finance reported that in September, central government revenue was 691.3 billion yuan, while expenditure was 1.5844 trillion yuan [4] - The 138th Canton Fair saw participation from nearly 240,000 overseas buyers from 223 countries and regions, marking a 6.8% increase compared to the previous session [4] Group 3 - The China Securities Regulatory Commission (CSRC) released a plan to optimize the Qualified Foreign Institutional Investor (QFII) system, enhancing its attractiveness to long-term foreign capital [5] - The CSRC also issued opinions on strengthening the protection of small and medium investors in the capital market, proposing 23 specific measures across various aspects [5] - A-share market saw significant gains, with the Shanghai Composite Index approaching the 4000-point mark, driven by strong performance in technology stocks [5][6] Group 4 - The Hong Kong Hang Seng Index closed up 1.05%, with notable gains in pharmaceutical and materials sectors, while Southbound funds recorded a net purchase of 2.873 billion HKD [6] - The Shanghai Stock Exchange announced the third advisory committee member list, including founders from various tech companies [6] - New listings on the STAR Market include He Yuan Bio, Xi'an Yicai, and Bibet, with a total of 758,000 investor accounts opening trading permissions for the STAR Growth Layer [6] Group 5 - QFII holdings in A-shares reached 1.018 billion shares, valued at approximately 21.283 billion yuan, with a focus on cyclical sectors like non-ferrous metals and electricity [7] - Five listed securities firms have disclosed their Q3 reports, showing growth in both revenue and net profit, indicating a recovery in brokerage and asset management businesses [7] Group 6 - The central bank's market operations led to a significant drop in bond yields, with the 30-year special government bond yield falling by 5.75 basis points [18] - The trading association emphasized the need for stricter supervision of funds raised through debt financing tools [18] - Hebei Province disclosed special bond issuance information, with 4.738 billion yuan allocated for land storage, marking a pilot area for non-self-examination [18] Group 7 - The U.S. stock market saw all three major indices rise, with the Dow Jones up 0.71% and the Nasdaq up 1.86%, driven by easing international trade tensions [16] - European stock indices also experienced slight increases, reflecting improved market sentiment following U.S.-China trade discussions [16] - The Nikkei 225 index in Japan closed above 50,000 points for the first time, indicating strong market performance [16] Group 8 - The international gold futures market saw a decline, with COMEX gold futures dropping by 3.40% [20] - Brent crude oil futures experienced a slight decrease, while U.S. oil futures rose marginally [20] - The OPEC+ group is expected to discuss a slight increase in oil production at their upcoming meeting [21]

Core Viewpoint - The article discusses the increasing pressure on wafer foundries, particularly UMC and World Advanced, as they negotiate pricing for 2026 amid rising costs and competitive pressures from mainland China and Southeast Asia [2][5][6]. Group 1: Pricing Strategies - UMC has initiated negotiations by requesting upstream suppliers to propose at least a 15% price reduction starting in 2026 to mitigate rising costs and pricing pressures [2]. - The 15% cost reduction request will affect various supply chain components, including chemicals, specialty gases, substrate materials, consumables, and maintenance services [2]. - The strategy aims to stabilize average selling prices (ASP) and cash flow by negotiating better terms with upstream suppliers before addressing downstream customers [2][3]. Group 2: Market Dynamics - IC design clients are adopting a conservative outlook for 2026, preferring flexible pricing and avoiding long-term contracts, which has led to a passive bargaining position for foundries and reduced order visibility [2][3]. - The competitive landscape has shifted, with increased production capacity in mainland China and Southeast Asia, leading to ongoing pricing pressures and the need for Taiwanese foundries to enhance their pricing strategies and customer relationships [5][6]. Group 3: Future Outlook - The next two years are expected to see a peak in global supply for mature nodes (28nm and above), with price competition becoming a norm, necessitating Taiwanese foundries to leverage technical services and customer loyalty to maintain market share and profitability [6][7]. - The International Semiconductor Industry Association (SEMI) projects a 15% increase in mainland China's chip manufacturing capacity by 2024, further intensifying competition for Taiwanese foundries [6]. - The article emphasizes that maintaining price stability and customer relationships will be critical for UMC and World Advanced during the economic adjustment period [3][7].

Semiconductor Sector Dynamics - TI's low-power Bluetooth® 6.0 wireless MCU has received Bluetooth SIG certification, marking it as the industry's first automotive-grade product series to achieve this milestone[5] - Jiangbolong has launched the industry's first integrated packaging mSSD, enhancing SSD application flexibility and user experience[7] - United Microelectronics Corporation (UMC) has introduced a 55nm BCD platform aimed at improving power efficiency and system integration for next-generation mobile devices and automotive applications[11] Automotive Electronics Sector Dynamics - LoBot has partnered with Swiss PostBus to launch the autonomous driving service "AmiGo" in Switzerland, with initial fleet testing planned for December 2025[14] - Pony.ai and BAIC New Energy have rolled out the 300th unit of the Alpha T5 Robotaxi, showcasing significant advancements in autonomous driving technology[16] - General Motors plans to introduce a "hands-free" autonomous driving system in the Cadillac Escalade IQ by 2028, utilizing a multi-sensor approach for enhanced safety[19] AI Sector Dynamics - Baichuan has released the M2 Plus medical model, significantly reducing the hallucination rate compared to general models, achieving a credibility level comparable to experienced clinicians[21] - RoboSense and ASENSING have formed a strategic partnership to develop multi-modal sensor fusion solutions for robotics, enhancing performance in complex environments[24] - Shengshu Technology has announced the open access of the Vidu Q2 API, enabling high-quality video content creation with emotional expressiveness for advertising and e-commerce[28] Metaverse Sector Dynamics - Samsung has officially launched the Galaxy XR headset, optimized for multi-modal AI, marking a significant step in its XR strategy[32] - Amazon is developing AI smart glasses for delivery drivers to enhance route planning and risk identification, improving service quality[35] - Unity has announced full support for Android XR development in Unity 6, facilitating the creation of immersive applications for the Galaxy XR headset[37] Risk Warnings - There are risks related to market competition in semiconductor, automotive electronics, AI, and metaverse sectors due to rapid growth and increased investment[38] - Potential technological advancements may not meet expectations, impacting overall sector development[39] - Market demand growth may fall short of expectations, affecting the expansion of emerging sectors[40]

Core Viewpoint - United Microelectronics Corporation (UMC) has launched its 55nm Bipolar-CMOS-DMOS (BCD) platform, which enhances performance and power efficiency for various applications including mobile devices, consumer electronics, automotive, and industrial sectors [1] Group 1: Product Launch - The new 55nm BCD platform is designed to meet the increasing complexity of power management in electronic devices [1] - This platform aims to deliver smaller and more efficient solutions for next-generation applications [1]