United Microelectronics (UMC) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 8.0% QoQ and 25.6% YoY to NT$74,239M; operating income increased 24.7% QoQ and 67.7% YoY to NT$18,643M.

• Record wafer shipments reached 1.212M 12-inch-equivalent wafers, up 7.3% QoQ; utilization rose to 92% from 85%.

• Q3 parent-attributable net income was NT$16,434M, down 61.1% QoQ as Q2 non-operating income was exceptionally high.

• Nine-month revenue reached NT$204,010M, up 16.1% YoY; parent-attributable net income rose 136.5% to NT$74,865M.

• 2027 growth is expected to shift toward richer product mix and pricing, with shipment growth constrained by manufacturing capacity.

Financial highlights

• Q3 gross profit was NT$25,205M, up 12.9% QoQ and 43.0% YoY; gross margin was 34.0%, versus 32.5% in Q2 and 29.8% in Q3 2025.

• Q3 operating expenses were NT$7,272M, down 8.0% QoQ; operating margin rose to 25.1% from 21.8%.

• Q3 net income was NT$16,389M, down 61.2% QoQ and up 9.7% YoY; EPS was NT$1.32 and EPADS was US$0.206.

• Q3 net non-operating income was NT$1,268M, versus NT$30,236M in Q2, including NT$1,160M net investment gain and NT$130M net interest income.

• Nine-month gross profit was NT$65.3B and gross margin 32.0%; operating income rose 41.4% to NT$44,869M, and EPS was NT$6.00.

Outlook and guidance

• Q4 wafer shipments are expected to rise at a low-single-digit rate QoQ; USD ASP is expected to remain firm, gross margin comparable to Q3, and utilization in the low-90% range.

• Q4 2026 capacity is forecast at 1.337M 12-inch-equivalent wafers, versus 1.325M in Q3; 12i capacity is projected at 204,000 wafers, up from 192,000.

• 2027 blended ASP is expected to increase 10% YoY for the full year, with pricing improvements and richer product mix; uplift is expected to begin in Q1.

• 2027 demand momentum is expected to continue, but shipment growth will be constrained by available manufacturing capacity; capacity growth is expected to be minimal.

• Depreciation is expected to grow at a low-single-digit rate in 2027 and potentially faster in 2028.