United Microelectronics Corporation (UMC) reported first‑quarter 2026 revenue of NT$61.04 billion, a 1.2% decline from the fourth quarter of 2025 but a 5.5% increase from the same period a year earlier. Gross margin fell to 29.2% from 29.8% in Q3 2025, while net income attributable to shareholders rose to NT$16.17 billion and earnings per share reached NT$1.29, a substantial beat over the consensus estimate of $0.12–$0.13 per share.
The company’s mature‑node and specialty‑technology segments continued to show resilience, with the 22 nm platform generating a record high of 14% of total revenue. CFO Chitung Liu noted that “our first‑quarter results reflect resilient demand across consumer and communication segments, and our 22 nm platform achieved another record high, accounting for 14% of revenue.”
Gross‑margin compression was driven by modest pricing pressure and higher depreciation costs associated with the ramp‑up of the Singapore fab. The depreciation expense increase reflects the capital investment required to expand capacity in Singapore, while pricing pressure reflects competitive dynamics in the mature‑node market.
The earnings per share beat was driven by a combination of cost control and a favorable product mix. Strict cost discipline allowed UMC to maintain margins despite the depreciation hit, while the strong demand for 22 nm logic and specialty processes lifted revenue and offset the pricing pressure in older nodes. The result was an EPS of NT$1.29, well above the $0.12–$0.13 consensus.
Management guided for high single‑digit growth in wafer shipments for the second quarter, a low single‑digit increase in average selling price in USD, and a gross margin around 30%. The company also indicated a price‑adjustment letter to customers for the second half of 2026 to offset rising costs, and it expects capacity utilization to remain in the low 80% range. These guidance figures signal confidence in continued demand and pricing power.
Strategic initiatives highlighted in the release include the expansion of UMC’s Singapore facility, which began volume production in 2026, and the company’s advanced‑packaging program, which secured a major contract with Qualcomm for high‑performance computing chips. UMC also announced a collaboration with Intel on 12 nm technology, providing a U.S.‑based manufacturing option for customers. These moves position UMC to capture growth in AI, high‑performance computing, and advanced packaging markets.
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