United Microelectronics (UMC) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached NT$61,810 million, up 4.5% sequentially and 2.4% year-over-year, with gross margin at 30.7%.

• Net income for Q4 2025 was NT$10,055 million, EPS NT$0.81; full-year 2025 net income was NT$41,716 million, EPS NT$3.34.

• 2025 saw shipment growth of 12.3% and revenue growth of 5.3% in USD terms, outperforming the addressable market.

• 22 nm and 28 nm technologies were key growth drivers, representing 35-36% of Q4 revenue.

• Net income for Q4 2025 was down 33% from Q3 2025 but up 18% year-over-year.

Financial highlights

• Full-year 2025 revenue was NT$237,553 million, up 2.3% year-over-year; gross margin rate was 29%.

• Q4 2025 gross margin improved to 30.7%, with gross profit of NT$18.95 billion.

• Cash and cash equivalents at year-end were NT$110,660 million; total equity was NT$379,855 million.

• Q4 utilization rate was stable at 78%.

• EBITDA margin in 2025 improved over 2024.

Outlook and guidance

• Q1 2026 wafer shipments expected to remain flat; ASP in USD to remain firm.

• Gross margin for Q1 2026 guided to high 20% range; utilization rate in mid-70%.

• 2026 CapEx budget set at $1.5 billion USD, with 90% allocated to 12" fabs and 10% to 8" fabs.

• Second half of 2026 expected to outperform the first half, deviating from traditional seasonality.

• Depreciation expenses to increase by low teens percent in 2026, peaking this year or next.