United Microelectronics (UMC) Q1 2026 earnings summary

Executive summary

• Operating revenues for Q1 2026 reached NT$61,038 million, up 5.5% year-over-year and nearly flat sequentially, with net income surging to NT$16,171 million and EPS at NT$1.29, reflecting strong profitability and growth.

• Gross margin improved to 29.2% from 26.7% a year ago, and utilization rate rose to 79% from 69% year-over-year.

• Wafer shipments increased 2.7% sequentially, driven by robust consumer segment demand, and 22 nm logic and specialty process revenue reached a record high, accounting for 14% of total Q1 revenue.

• Strategic partnerships and investments in advanced technologies, including silicon photonics and 12 nm platforms, are underway.

• Consolidated financial statements for Q1 2026 and Q1 2025 were reviewed and found to fairly present the company's financial position and performance.

Financial highlights

• Operating income for Q1 2026 was NT$11,276 million, up 15.2% year-over-year but down 7.8% sequentially.

• Net non-operating income reached NT$5,367 million, a significant turnaround from a loss in Q1 2025.

• Total assets as of March 31, 2026 were NT$599,932 million, with total equity at NT$406,736 million.

• Cash and cash equivalents stood at NT$109,019 million at quarter-end.

• Basic and diluted EPS for Q1 2026 were both NT$1.29, up from NT$0.62 in Q1 2025.

Outlook and guidance

• Q2 2026 wafer shipments expected to increase by high single digits; ASP in USD to rise by low single digits.

• Gross margin projected at approximately 30%, with utilization in the low 80% range.

• Full-year 2026 outlook remains optimistic, with expectations to outperform addressable market growth.

• 2026 foundry capital expenditure plan set at $1.5 billion USD, with 90% allocated to 12" and 10% to 8".

• The company is evaluating the impact of new IFRS standards and expects higher effective tax rates due to the phase-out of Singapore tax incentives.