UMC earnings call summary

Prepared Highlights

• Q3 2025 consolidated revenue was TWD 59.13 billion, gross margin 29.8%, net income attributable to parent TWD 14.98 billion, EPS TWD 1.2 (CFO)
• Capacity utilization rate climbed to 78% in Q3; wafer shipments were 1 million 12-inch equivalent wafers (CFO)
• Q3 revenue increased slightly sequentially due to higher wafer shipments, partially offset by ~3% unfavorable NT dollar exchange rate (CFO)
• First 3 quarters 2025 revenue grew 2.2% YoY to TWD 175.7 billion; gross margin ~28.4%; EPS TWD 2.54 vs TWD 3.12 in prior-year period (CFO)
• Cash above TWD 100 billion; total equity TWD 361 billion at end of Q3 2025 (CFO)
• Revenue breakdown: North America 25% (up 5pp QoQ), Asia 63% (down ~4pp QoQ); communication and computers edged up, consumer declined ~4pp to 29% (CFO)
• 22nm and 28nm combined revenue reached ~35% of total; 22nm continued to climb; 40nm ~17%, 65nm ~18% (CFO)
• 22nm revenue accounted for >10% of total sales in 2025; projecting over 50 product tape-outs; contribution expected to increase in 2026 (President)
• Annual CapEx heading to budget of USD 1.8 billion, with 90% in 12-inch and 10% in 8-inch (CFO)
• Q3 2025 wafer shipments increased 3.4% QoQ; full-year 2025 wafer shipment growth expected in low teens (President)
• 12-inch wafer shipment will outpace addressable market; 8-inch expected high single-digit growth in 2025 led by PMIC and LDDI (President)

Official Guidance (Q4 2025):

• Wafer shipment: flat vs Q3
• ASP in USD: remain firm
• Gross margin: approximately high 20% range
• Capacity utilization rate: mid-70% range
• 2025 cash-based CapEx budget unchanged at USD 1.8 billion (President)

Mgmt Quotes:

• "Our 22-nanometer technology platform continues to provide us with the differentiation in the market, with 22-nanometer revenue now accounting for more than 10% of the total sales in 2025 alone." (President)
• "We are anticipating wafer shipment to be comparable with third quarter's volumes, wrapping up 2025 with shipment growth in the low teens." (President)
• "Despite the ongoing global economic geopolitical uncertainty, we believe our 2025 business growth momentum will continue into 2026, where we expect the wafer shipment will increase year-over-year." (President)
• "We expect the overall 22- and 28-nanometer revenue to achieve double-digit year-over-year growth in 2026." (President)
• "Gross margin in third quarter is actually, in fact, slightly higher than that of the previous quarter... we do expect the Q4 '25 gross margin still will remain in the bandwidth of high 20 percentage range." (CFO)

Prepared Metrics