United Microelectronics Q4 Earnings Call Highlights

Core Insights - The company emphasized the importance of 22-nanometer technology as a key growth driver, with 22- and 28-nanometer revenue accounting for 36% of total revenue in Q4 2025 [1] - The company reported a revenue increase of 2.3% year-over-year for the full year 2025, with a gross margin of approximately 29% [3] - The company anticipates a favorable ASP environment in 2026, driven by disciplined pricing and product mix optimization [12] Financial Performance - For Q4 2025, consolidated revenue was TWD 61.81 billion, with a gross margin of about 30.7% and net income attributable to shareholders of TWD 10.06 billion [5][6] - Full-year 2025 net income attributable to shareholders was TWD 41.7 billion, representing a net income rate of 17.6% [3] - Revenue for Q4 2025 grew 4.5% quarter-over-quarter, with gross profit of TWD 18.95 billion [4] Geographic Revenue Mix - North America represented about 21% of Q4 2025 revenue, declining from 25% in 2024 to 22% in 2025 [2] - The company noted a shift in geographic revenue mix, indicating a reduced reliance on North American markets [2] Capacity and Utilization - Capacity utilization was reported at about 78%, unchanged from the previous quarter [5] - The company expects a slight decline in capacity by roughly 1% due to annual maintenance [7] Market Outlook - The semiconductor industry is projected to grow in the mid-teens in 2026, with the foundry market expected to grow in the low 20% range [11] - The company anticipates that AI-related segments will remain the primary growth driver in the semiconductor market [11] Strategic Initiatives - The company is expanding its U.S. footprint through partnerships, including a collaboration with Intel on a 12-nanometer project [14] - Advanced packaging and silicon photonics are identified as emerging growth areas, with expectations for significant revenue contributions in 2027 [16] Emerging Technologies - Specialty revenue represents about 50% of overall revenue, with high voltage making up approximately 30% of specialty revenue [16] - The company is working with over 10 advanced packaging customers and expects more than 20 new tape-outs in 2026 [16]