UMC Estimates Q2 Shipments to Increase 9%, Product ASP to Rise 3%
Wafer foundry UMC announced that it expects wafer shipments to increase by 7% to 9% and average selling prices (ASP) to rise by 1% to 3% in the second quarter of 2025. Consequently, capacity utilization is projected to reach 81% to 83%, and gross profit margin is expected to remain close to 30%.
📋 Article Processing Timeline
- 📰 Published: April 29, 2026 at 19:44
- 🔍 Collected: April 29, 2026 at 20:01 (16 min after Published)
- 🤖 AI Analyzed: April 30, 2026 at 02:56 (6h 55m after Collected)
Central News Agency
(Central News Agency reporter Chang Chien-chung, Hsinchu 29th) Wafer foundry UMC expects second-quarter wafer shipments to increase by 7% to 9% quarter-on-quarter, with capacity utilization reaching 81% to 83%, product average selling prices rising by 1% to 3%, and gross profit margin approaching 30%.
UMC held an online investor conference to announce its first-quarter operating results. Benefiting from strong demand for consumer electronics, UMC's first-quarter capacity utilization increased to 79%, and wafer shipments grew by 2.7% quarter-on-quarter. Due to increased 8-inch wafer shipments, product average selling prices slightly decreased. First-quarter revenue was NT$61.04 billion, a 1.2% decrease quarter-on-quarter.
UMC's first-quarter gross profit margin was 29.2%, a 1.5 percentage point decrease from the fourth quarter of 2025. However, with increased non-operating investment income and reduced income tax expenses, UMC's first-quarter net profit attributable to the parent company rose to NT$16.17 billion, a 60.8% increase quarter-on-quarter, with earnings per share of NT$1.29.
UMC pointed out that as demand for 22nm logic and specialty processes continues to heat up, 22nm accounted for approximately 14% of total revenue, reaching a historical high. This includes 40nm, 28nm, and 22nm, which collectively accounted for about 52% of revenue.
Looking ahead, UMC CFO Liu Chih-tung said that benefiting from the stabilization of communication demand and steady demand from computers, consumer electronics, and industrial sectors, second-quarter wafer shipments are expected to increase by 7% to 9% quarter-on-quarter, with capacity utilization reaching 81% to 83%.
Liu Chih-tung stated that with product mix optimization, second-quarter product average selling prices will rise by 1% to 3%, and gross profit margin will approach 30%. To reflect UMC's value, the company has informed customers that foundry prices will be adjusted in the second half of the year.
Liu Chih-tung said that tight memory supply adds variables to the communication market, but the risk should be controllable. Regarding rumors that UMC might cooperate in memory production, he emphasized that UMC is committed to providing differentiated technologies to enhance its competitiveness in collaborating with customers and will continue to seek long-term business opportunities, such as high-voltage and embedded non-volatile memory, and will not change the current situation for short-term opportunities.
Regarding the collaboration with Intel, UMC stated that progress is smooth, and product designs are expected to be finalized in 2027, mainly for applications such as digital TVs, wireless networks, and high-speed transmission interfaces.
Institutional investors are concerned whether UMC and Intel will expand their collaboration on more advanced process technologies in the future. Liu Chih-tung said that the top priority is to ensure everything runs smoothly and stably, delivering the 12nm platform to customers. UMC will consider any measures that benefit partners and customers.
UMC's board of directors today approved a capital budget execution plan, investing NT$4.683 billion to build capacity. UMC's capital expenditure for this year remains at US$1.5 billion, with 90% allocated to 12-inch fabs and 10% to 8-inch fabs.
UMC's board of directors also approved the repurchase of 50,000 shares of treasury stock from the centralized trading market from April 30 to June 29, with a repurchase price range of NT$52.5 to NT$109.5. The repurchased treasury stock will be transferred to employees. (Editor: Yang Kai-hsiang) 1150429
Choose to stand with facts; your every sponsorship is a force for protecting press freedom.
Download the Central News Agency "First-Hand News" APP to stay updated with the latest news.
The text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted or used without authorization.
(Central News Agency reporter Chang Chien-chung, Hsinchu 29th) Wafer foundry UMC expects second-quarter wafer shipments to increase by 7% to 9% quarter-on-quarter, with capacity utilization reaching 81% to 83%, product average selling prices rising by 1% to 3%, and gross profit margin approaching 30%.
UMC held an online investor conference to announce its first-quarter operating results. Benefiting from strong demand for consumer electronics, UMC's first-quarter capacity utilization increased to 79%, and wafer shipments grew by 2.7% quarter-on-quarter. Due to increased 8-inch wafer shipments, product average selling prices slightly decreased. First-quarter revenue was NT$61.04 billion, a 1.2% decrease quarter-on-quarter.
UMC's first-quarter gross profit margin was 29.2%, a 1.5 percentage point decrease from the fourth quarter of 2025. However, with increased non-operating investment income and reduced income tax expenses, UMC's first-quarter net profit attributable to the parent company rose to NT$16.17 billion, a 60.8% increase quarter-on-quarter, with earnings per share of NT$1.29.
UMC pointed out that as demand for 22nm logic and specialty processes continues to heat up, 22nm accounted for approximately 14% of total revenue, reaching a historical high. This includes 40nm, 28nm, and 22nm, which collectively accounted for about 52% of revenue.
Looking ahead, UMC CFO Liu Chih-tung said that benefiting from the stabilization of communication demand and steady demand from computers, consumer electronics, and industrial sectors, second-quarter wafer shipments are expected to increase by 7% to 9% quarter-on-quarter, with capacity utilization reaching 81% to 83%.
Liu Chih-tung stated that with product mix optimization, second-quarter product average selling prices will rise by 1% to 3%, and gross profit margin will approach 30%. To reflect UMC's value, the company has informed customers that foundry prices will be adjusted in the second half of the year.
Liu Chih-tung said that tight memory supply adds variables to the communication market, but the risk should be controllable. Regarding rumors that UMC might cooperate in memory production, he emphasized that UMC is committed to providing differentiated technologies to enhance its competitiveness in collaborating with customers and will continue to seek long-term business opportunities, such as high-voltage and embedded non-volatile memory, and will not change the current situation for short-term opportunities.
Regarding the collaboration with Intel, UMC stated that progress is smooth, and product designs are expected to be finalized in 2027, mainly for applications such as digital TVs, wireless networks, and high-speed transmission interfaces.
Institutional investors are concerned whether UMC and Intel will expand their collaboration on more advanced process technologies in the future. Liu Chih-tung said that the top priority is to ensure everything runs smoothly and stably, delivering the 12nm platform to customers. UMC will consider any measures that benefit partners and customers.
UMC's board of directors today approved a capital budget execution plan, investing NT$4.683 billion to build capacity. UMC's capital expenditure for this year remains at US$1.5 billion, with 90% allocated to 12-inch fabs and 10% to 8-inch fabs.
UMC's board of directors also approved the repurchase of 50,000 shares of treasury stock from the centralized trading market from April 30 to June 29, with a repurchase price range of NT$52.5 to NT$109.5. The repurchased treasury stock will be transferred to employees. (Editor: Yang Kai-hsiang) 1150429
Choose to stand with facts; your every sponsorship is a force for protecting press freedom.
Download the Central News Agency "First-Hand News" APP to stay updated with the latest news.
The text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted or used without authorization.