United Microelectronics (UMC) Q2 2025 earnings summary

Executive summary

• Q2 2025 consolidated revenue reached NT$58.76 billion, up 1.6% sequentially and 3.4% year-over-year, with net income at NT$8.90 billion and EPS of NT$0.71.

• Wafer shipments increased over 6% quarter-over-quarter to 967,000, driven by communications and image signal processors, with utilization rate rising to 76%.

• 22/28nm business hit a record, accounting for 40% of Q2 revenue.

• Foreign exchange headwinds limited gross margin by nearly 3 percentage points.

Financial highlights

• Gross margin was 28.7% (NT$16.88 billion), up from 26.7% in Q1, with operating income at NT$10.82 billion.

• Net income margin was 15.1% for Q2.

• First half 2025 revenue rose 4.7% year-over-year to NT$116.6 billion; gross margin for the period was 27.7%.

• Cash and cash equivalents as of June 30, 2025 were NT$112.0 billion; total equity at NT$337.0 billion.

Outlook and guidance

• Q3 2025 wafer shipments expected to increase by low single digits; NT dollar revenue to decline due to forex headwinds.

• Gross margin for Q3 projected to be similar to Q2, assuming stable forex rates.

• Capacity utilization to remain in the mid-70% range; 2025 CAPEX budget unchanged at US$1.8 billion, with 90% for 12-inch fabs.

• Mild growth expected in addressable market for 2025, with company outgrowing the market.