United Microelectronics (UMC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached NT$57.86B (TWD 57.86 billion), up 5.9% year-over-year but down 4.2% sequentially; net income was NT$7.78B, with EPS at NT$0.62.

• Gross margin was 26.7%, with net income declining 25% year-over-year due to ASP decline and margin compression.

• Q1 results were in line with guidance, impacted by a one-time price adjustment and earthquake.

• 22/28nm revenue accounted for 37% of total sales, with 22nm up 46% quarter-over-quarter.

• Board proposed a cash dividend of NT$2.85 per share, pending shareholder approval.

Financial highlights

• Gross margin was 26.7% (NT$15.4B), operating margin 16.9%, and operating income NT$9.79B.

• Cash and cash equivalents stood at NT$106.35B as of March 31, 2025; total equity at NT$390.83B.

• Non-operating loss of NT$439M from mark-to-market investment valuation.

• Operating expenses were NT$6.12B, down 9.3% quarter-over-quarter.

• Debt to equity ratio improved to 47% from 51% in the prior quarter.

Outlook and guidance

• Q2 2025 wafer shipments expected to increase 5%-7% sequentially; ASP in USD to remain flat.

• Gross margin projected to recover to ~30%; capacity utilization to mid-70% range.

• 2025 CapEx remains at US$1.8B, with 90% allocated to 12" capacity.

• Moderate rebound in demand expected in Q2; management remains cautious due to macro and policy uncertainties.

• Full-year 2025 addressable market expected to grow low single digits; company aims to outgrow the market.