United Microelectronics (UMC) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached NT$59.13 billion (US$1.94 billion), up 0.6% sequentially but down 2.2% year-over-year; net income was NT$14.98 billion, a 68.3% increase from Q2 and 3.5% higher year-over-year; EPS was NT$1.20.

• Wafer shipments increased 3.4% sequentially, with capacity utilization rising to 78%.

• 22/28nm technologies contributed 35% of wafer revenue, with 22nm alone exceeding 10% of total sales and further growth expected in 2026.

• Demand growth was seen across most market segments, especially smartphones and notebooks.

• 55nm BCD platform launched for automotive, industrial, and consumer applications.

Financial highlights

• Gross margin for Q3 2025 was 29.8%, up from 28.7% in Q2; net income for the quarter was NT$14.98 billion.

• Operating income for Q3 2025 was NT$11.12 billion, a 2.8% increase sequentially.

• Year-to-date revenue grew 2.2% year-over-year to NT$175.74 billion; gross margin for the first three quarters was 28.4%.

• Net income for the nine months ended September 30, 2025 was NT$31.66 billion, down 18.2% year-over-year; EPS for the period was NT$2.54, down from NT$3.12.

• Cash and cash equivalents as of September 30, 2025 stood at NT$104.22 billion; total equity was NT$361.20 billion.

Outlook and guidance

• Q4 2025 wafer shipments expected to remain flat; ASP in USD to stay firm.

• Gross margin projected in the high 20% range; utilization rate in the mid-70% range.

• 2025 shipment growth expected in the low teens, driven by 22nm and specialty technologies.

• Double-digit year-over-year growth in 22/28nm revenue anticipated for 2026.

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