Financial Data and Key Metrics Changes - Consolidated revenue for Q4 2025 was TWD 61.81 billion, with a gross margin of approximately 30.7% [4] - Net income attributable to shareholders was TWD 10.06 billion, resulting in earnings per share (EPS) of TWD 0.81 [4][6] - Year-over-year revenue growth for 2025 was 2.3%, totaling TWD 237.5 billion, while gross margin for the year was around 29% [6][7] - Cash reserves exceeded TWD 110 billion, with total equity at TWD 379.8 billion at the end of 2025 [7] Business Line Data and Key Metrics Changes - Revenue from the IDM segment remained stable at about 20% for Q4, while it increased to 19% for the full year [8] - The consumer application segment grew from 28% to 31% year-over-year, indicating a strong demand for 22 nm technology [9] - Revenue from 22 nm and 28 nm technologies represented 36% of total revenue in Q4 2025, with 22 nm revenue increasing by 31% quarter-on-quarter [11] Market Data and Key Metrics Changes - North America represented 21% of revenue in Q4 2025, down from 25% in 2024 [8] - The company noted a decline in capacity utilization by roughly 1% due to annual maintenance schedules [9] - The forecast for 2026 CapEx is around $1.5 billion, slightly down from $1.6 billion in 2025 [10] Company Strategy and Development Direction - UMC aims to expand its footprint in the U.S. through partnerships, including a collaboration with Intel on 12 nm technology [12] - Advanced packaging and silicon photonics are expected to serve as new growth catalysts, addressing high-performance applications across various sectors [13] - The company is focused on optimizing its product mix and gradually improving ASP and margins in response to market dynamics [22][23] Management's Comments on Operating Environment and Future Outlook - Management expects wafer demand to remain firm in 2026, with AI-related segments as primary growth drivers [17] - The semiconductor industry is projected to grow by mid-teens in 2026, with UMC expected to outperform its addressable market [18] - Management acknowledged potential pressures from memory supply imbalances but remains optimistic about overall demand [22] Other Important Information - The company is working on enhancing its advanced packaging capabilities, with expectations for significant revenue growth in 2027 [81] - UMC's specialty technology revenue currently represents about 50% of overall revenue, with high voltage making up 30% of that [74] Q&A Session Summary Question: Overall market outlook for 2026 - Management expects AI-related segments to drive growth, with the semiconductor industry projected to grow by mid-teens [17][18] Question: Pricing outlook for mature foundry - A more favorable ASP environment is anticipated in 2026, supported by disciplined pricing strategies and product mix optimization [19][20] Question: Capacity ramp in Singapore - Capacity increase for 2026 is expected to be around 1.2% year-over-year, with expansion starting in the second half of 2026 [23] Question: Revenue contribution from advanced packaging - Advanced packaging revenue is expected to grow significantly in 2027, with more than 20 new tape outs anticipated [81] Question: Impact of memory price inflation on demand - Management has not observed significant demand impacts from memory price inflation, focusing on high-end market segments [62] Question: Competitive advantage in silicon photonics - UMC's collaboration with imec is expected to deliver industry-standard PDKs, with a focus on 12-inch technology [95][96]