United Micro Electronics - ADR

Fourth Quarter Performance: UMC reported Q4 2025 consolidated revenue of TWD 61.81 billion, a 4.5% quarter-over-quarter increase. Gross margin improved to 30.7%, with net income attributable to shareholders at TWD 10.06 billion and earnings per share (EPS) of TWD 0.81. For the full year, revenue grew 2.3% to TWD 237.5 billion, but full-year EPS declined from TWD 3.8 in 2024 to TWD 3.34 in 2025.

2026 Guidance: For Q1 2026, UMC forecasts flat wafer shipments with a gross margin in the high 20% range and capacity utilization in the mid-70% range. The cash-based CapEx budget for 2026 is set at USD 1.5 billion. President Jason Wang expressed confidence in continued growth in 2026, driven by demand for 22-nanometer technology and new application areas across AI and advanced packaging.

Market Outlook: The semiconductor industry is projected to grow by mid-teens in 2026, with the foundry market expected to experience low 20% growth. UMC anticipates outperforming its addressable market growth of low single digits, aided by robust AI-related demand and optimized product mix.