Copyright Benzinga
Taiwan-based United Microelectronics Corporation (NYSE:UMC), a prominent global semiconductor foundry, reported fiscal third-quarter results on Wednesday. For the quarter, the company reported revenue of $1.94 billion (59.13 billion New Taiwanese dollars), marking a 2.2% decrease year-on-year. The figure topped the analyst consensus estimate of $1.92 billion. On a sequential basis, revenue saw a slight uptick of 0.6%. Earnings per American Depositary Share (ADS) came in at 19.7 cents, also topping the analyst consensus of 12 cents. Also Read: United Microelectronics Chief Cautions Currency, Trade Policy Could Dampen Gains Advanced Node Contribution and Margins The company reported solid progress in its advanced process nodes, with 22nm and 28nm technologies contributing 35% of wafer revenue, stable year over year but lower than 40% in the prior quarter. Revenue from 40nm technology climbed to 17% from 13% a year earlier, up from 15% in the second quarter of 2025. Capacity utilization also strengthened, improving to 78% from 71% a year ago and 76% in the previous quarter. However, the gross margin contracted to 29.8% from 33.8% in the same period last year. Capital expenditures for the quarter totaled $399 million. Management Commentary UMC co-president Jason Wang said the company saw stronger demand across most market segments in the third quarter, driving a 3.4% increase in wafer shipments and boosting utilization to 78%. Smartphone and notebook sales helped lift replenishment orders, while UMC’s 22nm technology continued to differentiate it in the market, accounting for over 10% of total revenue. Wang noted that UMC expects more than 50 product tape-outs on its 22nm platforms in 2025, with contributions projected to rise further in 2026. The company also launched its 55nm BCD platform, designed to meet rigorous automotive and industrial standards alongside mobile and consumer applications. Wang said wafer shipments in the fourth quarter should remain roughly in line with third-quarter levels, putting UMC on track to finish 2025 with low-teens shipment growth. Outlook For the fourth quarter, wafer shipments are projected to remain flat compared with third-quarter 2025 levels, while average selling prices in U.S. dollars are expected to stay firm. Gross profit margin is anticipated to hold in the high-20% range, reflecting stable pricing and efficiency levels. Capacity utilization is forecast to be in the mid-70% range, consistent with current production trends. The company’s capital expenditure for 2025 remains on track at $1.8 billion, supporting ongoing investments in advanced process technologies and capacity enhancement. Price Action: UMC stock was trading higher by 1.31% to $7.73 premarket at last check Wednesday. Read Next: The ‘Big 3’ Tech Playbook: Why Apple, Amazon And Microsoft Keep Winning Photo by Dr David Sing via Shutterstock
