United Microelectronics (UMC) Q2 2025 earnings summary

Executive summary

• Q2 2025 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, a 14.5% increase from Q1 but down from NT$1.11 in Q2 2024.

• Wafer shipments increased 6.2% quarter-over-quarter to 967,000, with utilization rate rising from 69% to 76%.

• 22/28nm nodes reached a record 40% of Q2 revenue, with advanced technology (≤40nm) at 55%.

• Growth was driven by communications, especially in image signal processors, NAND controllers, Wi-Fi, and LCD controllers.

Financial highlights

• Gross margin for Q2 2025 was 28.7%, with gross profit at NT$16.88 billion and operating income at NT$10.82 billion.

• Net income for Q2 was NT$8.90 billion, with a net income margin of 15.1%.

• H1 2025 revenue rose 4.7% year-over-year to NT$116.6 billion; net income for H1 was NT$16.6 billion, down 31.5% year-over-year.

• Cash and cash equivalents at June 30, 2025 were NT$111.99 billion; total equity stood at NT$337.04 billion.

Outlook and guidance

• Q3 wafer shipments expected to increase by low single digits; utilization rate to remain in mid-70% range.

• Q3 gross margin projected to be similar to Q2, subject to FX fluctuations; ASP in USD expected to remain firm.

• 2025 CapEx budget set at US$1.8 billion, with 90% allocated to 12-inch capacity.

• Full-year 2025 outlook unchanged, with addressable market expected to grow low single digits and company to outgrow the market.