UMC Reports Fourth Quarter 2025 Results

Core Insights - United Microelectronics Corporation (UMC) reported a consolidated revenue of NT$61.81 billion (US$1.97 billion) for Q4 2025, marking a 4.5% increase from Q3 2025 and a 2.4% increase year-on-year [1] - The company's earnings per share (EPS) for Q4 2025 was NT$0.81 (US$0.129), with net income attributable to shareholders of NT$10.06 billion (US$320 million) [1] - UMC's 22/28nm technology revenue contributed 36% to wafer revenue, with a significant 31% quarter-on-quarter increase in 22nm revenue [1] Financial Performance - Q4 2025 operating revenues reached NT$61.81 billion, up from NT$59.13 billion in Q3 2025, and NT$60.39 billion in Q4 2024 [1] - Gross profit for Q4 2025 was NT$18.96 billion, representing a gross margin of 30.7% [1] - Operating income increased by 10.0% quarter-on-quarter to NT$12.23 billion [1] Capacity and Utilization - UMC's wafer shipments in Q4 2025 were 994K, a slight decrease of 0.6% from Q3 2025, with an overall capacity utilization rate of 78% [1] - Total capacity for Q4 2025 was 1,305K 12-inch equivalent wafers, expected to decrease to 1,283K in Q1 2026 due to annual maintenance [1] Strategic Initiatives - UMC is focusing on expanding its footprint in the U.S. through partnerships, including a collaboration with Intel on 12nm technology and a Memorandum of Understanding with Polar Semiconductor [1] - The company inaugurated a Circular Economy and Recycling Innovation Center aimed at reducing waste generated by its Taiwan fabs by up to one-third [2] Market Outlook - UMC anticipates firm wafer demand in Q1 2026, with expectations for continued growth in 2026 driven by advancements in 22nm platforms and new solutions [1] - The company aims to leverage advanced packaging and silicon photonics as new growth catalysts to meet the evolving needs of high-performance applications across various sectors [1]