Latest news with #UnitedMicroelectronicsCorporation
Business Wire
11 hours ago
- Business
- Business Wire
UMC Reports Second Quarter 2025 Results
TAIPEI, Taiwan--(BUSINESS WIRE)-- United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ('UMC' or 'The Company'), a leading global semiconductor foundry, today announced its consolidated operating results for the second quarter of 2025. Second quarter consolidated revenue was NT$58.76 billion, increasing 1.6% from NT$57.86 billion in 1Q25. Compared to a year ago, 2Q25 revenue increased 3.4%. Consolidated gross margin for 2Q25 was 28.7%. Net income attributable to the shareholders of the parent was NT$8.90 billion, with earnings per ordinary share of NT$0.71. Jason Wang, co-president of UMC, said, 'In the second quarter, the utilization rate increased to 76%, as wafer shipments grew 6.2% QoQ, primarily driven by communications in imaging signal processors, NAND controllers, WiFi and LCD controllers. While we experienced an increase in the overall utilization and a growth of our 22/28nm portfolio, the unfavorable foreign exchange movement of the NT dollar capped our gross margin to 28.7% by nearly 3 percentage points. Revenue from our 22/28nm portfolio continued to grow sequentially, now accounting for 40% of total sales, a record high in both percentage and absolute dollar terms. Our industry-leading 22/28nm solutions continue to win adoption by customers, and we expect to see further market share gains in wireless communications over the coming quarters. We have always believed that, with the right differentiation, 22/28nm is a strong and long-lasting node with a robust product pipeline. In addition, the new Phase 3 facility at our Singapore Fab 12i, set to start production in 2026, will enable UMC to better serve customers seeking diversified manufacturing for enhanced supply chain resilience.' Co-president Wang added, 'Looking ahead to the third quarter, we expect a mild increase in wafer shipments. However, adverse foreign exchange movement will lead to a decline in NT dollar revenue. We are closely monitoring the near-term uncertainties and risks as the markets anticipate US tariff policies. To navigate macro and geopolitical headwinds, including foreign exchange risks, UMC will continue to actively manage our foreign exchange exposure and maintain financial flexibility to enhance our financial structure and business resilience.' Co-president Wang said, 'UMC was the recipient of two prestigious accolades at the 2025 Asia Responsible Enterprise Awards (AREA), organized by Enterprise Asia. Among the honors, UMC Co-President and Chief Sustainability Officer SC Chien received an award in the Responsible Business Leadership category, recognizing his leadership in advancing both business operations and sustainable development at UMC. In addition, UMC received the Corporate Sustainability Reporting Award for the company's longstanding commitment to transparency and integrity in ESG disclosures.' Second quarter operating revenues grew 1.6% sequentially to NT$58.76 billion. Revenue contribution from 40nm and below technologies represented 55% of wafer revenue. Gross profit increased 9.3% QoQ to NT$16.88 billion, or 28.7% of revenue. Operating expenses increased 5.6% to NT$6.47 billion. Net other operating income decreased 11.5% to NT$0.41 billion. Net non-operating expenses totaled NT$0.67 billion. Net income attributable to shareholders of the parent amounted to NT$8.90 billion. Earnings per ordinary share for the quarter was NT$0.71. Earnings per ADS was US$0.121. The basic weighted average number of shares outstanding in 2Q25 was 12,484,877,493, compared with 12,484,780,989 shares in 1Q25 and 12,414,189,313 shares in 2Q24. The diluted weighted average number of shares outstanding was 12,534,082,055 in 2Q25, compared with 12,579,207,466 shares in 1Q25 and 12,529,942,186 shares in 2Q24. The fully diluted shares counted on June 30, 2025 were approximately 12,534,367,000. Detailed Financials Section Operating revenues increased to NT$58.76 billion. COGS decreased 1.3% QoQ to NT$41.88 billion. Gross profit increased 9.3% to NT$16.88 billion. Operating expenses grew 5.6% QoQ to NT$6.47 billion, as G&A increased 9.1% to NT$1.68 billion, R&D increased 5.8% to NT$4.19 billion, while Sales & Marketing decreased 4.5% to NT$0.59 billion. Net other operating income was NT$0.41 billion. In 2Q25, operating income increased 10.6% QoQ to NT$10.82 billion. Net non-operating expenses in 2Q25 was NT$0.67 billion, primarily reflecting the NT$1.28 billion in exchange loss, offset by the NT$0.33 billion in net investment gain, and the NT$0.31 billion in net interest income. Non-Operating Income and Expenses (Amount: NT$ million) 2Q25 1Q25 2Q24 Non-Operating Income and Expenses (666 ) (439 ) 2,529 Net Interest Income and Expenses 309 219 701 Net Investment Gain and Loss 326 (769 ) 1,440 Exchange Gain and Loss (1,280 ) 115 407 Other Gain and Loss (20 ) (5 ) (19 ) Note：Sums may not equal totals due to rounding. Expand In 2Q25, cash inflow from operating activities was NT$22.10 billion. Cash outflow from investing activities totaled NT$9.44 billion, which included NT$8.37 billion in capital expenditures, resulting in free cash flow of NT$13.73 billion. Cash inflow from financing activities was NT$1.15 billion, primarily from NT$5.20 billion in bonds issued, offset by a NT$3.77 billion decreased in bank loans. Net cash flow in 2Q25 amounted to NT$5.64 billion. Over the next 12 months, the company expects to repay NT$3.72 billion in bank loans. Cash and cash equivalents increased to NT$111.99 billion. Days of inventory decreased 1 day to 76 days. Current Assets (Amount: NT$ billion) 2Q25 1Q25 2Q24 Cash and Cash Equivalents 111.99 106.35 121.23 Accounts Receivable 32.38 34.80 32.53 Days Sales Outstanding 52 54 51 Inventories, net 34.02 35.43 36.33 Days of Inventory 76 77 88 Total Current Assets 195.18 192.32 207.22 Expand Current liabilities increased to NT$110.39 billion due to dividends payable of NT$35.79 billion. Long-term credit/bonds decreased to NT$41.60 billion. Total liabilities increased to NT$211.10 billion, leading to a debt to equity ratio of 63%. Analysis of Revenue 2 Revenue from Asia Pacific increased to 67%, while business from North America was 20% of sales. Business from Europe increased to 8%, while contribution from Japan was 5%. Revenue contribution from 22/28nm increased to 40% of wafer revenue, while 40nm contribution slightly decreased to 15% of sales. Revenue Breakdown by Geometry Geometry 2Q25 1Q25 4Q24 3Q24 2Q24 14nm and below 0 % 0 % 0 % 0 % 0 % 14nm<x<=28nm 40 % 37 % 34 % 35 % 33 % 28nm<x<=40nm 15 % 16 % 16 % 13 % 12 % 40nm<x<=65nm 17 % 16 % 16 % 15 % 15 % 65nm<x<=90nm 7 % 8 % 11 % 10 % 12 % 90nm<x<=0.13um 7 % 7 % 10 % 10 % 11 % 0.13um<x<=0.18um 9 % 10 % 9 % 11 % 10 % 0.18um<x<=0.35um 4 % 5 % 4 % 5 % 5 % 0.5um and above 1 % 1 % 0 % 1 % 2 % Expand Revenue from fabless customers accounted for 81% of revenue. Revenue Breakdown by Customer Type Customer Type 2Q25 1Q25 4Q24 3Q24 2Q24 Fabless 81 % 82 % 84 % 85 % 87 % IDM 19 % 18 % 16 % 15 % 13 % Expand Revenue from the communication segment accounted for 41%, while business from computer applications was 11% of sales. Business from consumer applications accounted for 33%, while other segments was 15% of revenue. (1) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec, keyboard controller, monitor scaler, USB, I/O chipset, WLAN. Communication consists of handset components, broadband, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart cards, toys, etc. Blended ASP Trend Blended average selling price (ASP) remained firm in 2Q25. (To view blended ASP trend, please click here for 2Q25 ASP) Shipment and Utilization Rate 3 Wafer shipments increased 6.2% QoQ to 967K during the second quarter, while quarterly capacity was 1,290K. Overall utilization rate in 2Q25 grew to 76%. Capacity 4 Total capacity in the second quarter increased to 1,290K 12-inch equivalent wafers. Capacity will grow in the third quarter of 2025 to 1,305K 12-inch equivalent wafers. (1) One 6-inch wafer is converted into 0.25 (6 2 /12 2) 12-inch equivalent wafer; one 8-inch wafer is converted into 0.44 (8 2 /12 2) 12-inch equivalent wafers. Total capacity figures are expressed in 12-inch equivalent wafers. CAPEX CAPEX spending in 2Q25 totaled US$273 million. 2025 cash-based CAPEX budget will be US$1.8 billion. 2025 CAPEX Plan 8" 12" Total 10 % 90 % US$1.8 billion Expand Third Quarter 2025 Outlook & Guidance Quarter-over-Quarter Guidance: Wafer Shipments: Will increase by low-single digit % ASP in USD: Will remain firm Gross Profit Margin: Will be approximately Q2 gross margin subject to FX effect Capacity Utilization: mid-70% range 2025 CAPEX: US$1.8 billion Recent Developments / Announcements Jun. 30, 2025 UMC Wins Two Honors at the 2025 Asia Responsible Enterprise Awards Expand Please visit UMC's website for further details regarding the above announcements Conference Call / Webcast Announcement Wednesday, July 30, 2025 Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM (London) A live webcast and replay of the 2Q25 results announcement will be available at under the 'Investors / Events' section. About UMC UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry company. The company provides high-quality IC fabrication services, focusing on logic and various specialty technologies to serve all major sectors of the electronics industry. UMC's comprehensive IC processing technologies and manufacturing solutions include Logic/Mixed-Signal, embedded High-Voltage, embedded Non-Volatile-Memory, RFSOI, BCD etc. Most of UMC's 12-in and 8-in fabs with its core R&D are in Taiwan, with additional ones throughout Asia. UMC has a total of 12 fabs in production with a combined capacity of more than 400,000 wafers per month (12-in equivalent), and all of them are certified with IATF 16949 automotive quality standards. UMC is headquartered in Hsinchu, Taiwan, plus local offices in the United States, Europe, China, Japan, Korea, and Singapore, with a worldwide total of 20,000 employees. For more information, please visit: Safe Harbor Statements This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding anticipated financial results for the second quarter of 2025; the expected wafer shipment and ASP; the anticipated annual budget; capex strategies; environmental protection goals and water management strategies; impact of foreign currency exchange rates; expected foundry capacities; the ability to obtain new business opportunities; and information under the heading 'Third Quarter 2025 Outlook and Guidance.' These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) dependence upon the frequent introduction of new services and technologies based on the latest developments in the industry in which UMC operates; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international business activities; (iv) dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including natural disasters, terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risk factors is included in UMC's filings with the United States Securities and Exchange Commission, including its Annual Report on Form 20-F. All information provided in this release is as of the date of this release and are based on assumptions that UMC believes to be reasonable as of this date, and UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. The financial statements included in this release are prepared and published in accordance with Taiwan International Financial Reporting Standards, or TIFRSs, recognized by the Financial Supervisory Commission in the ROC, which is different from International Financial Reporting Standards, or IFRSs, issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from generally accepted accounting principles in the ROC and generally accepted accounting principles in the United States. - FINANCIAL TABLES TO FOLLOW - As of June 30, 2025 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) US$ NT$ % Assets Current assets Cash and cash equivalents 3,825 111,994 20.4 % Accounts receivable, net 1,106 32,380 5.9 % Inventories, net 1,162 34,018 6.2 % Other current assets 573 16,783 3.1 % Total current assets 6,666 195,175 35.6 % Non-current assets Funds and investments 2,356 68,972 12.6 % Property, plant and equipment 8,833 258,627 47.2 % Right-of-use assets 249 7,291 1.3 % Other non-current assets 617 18,079 3.3 % Total non-current assets 12,055 352,969 64.4 % Total assets 18,721 548,144 100.0 % Liabilities Current liabilities Short-term loans 223 6,524 1.2 % Payables 1,470 43,035 7.9 % Dividends payable 1,222 35,788 6.5 % Current portion of long-term liabilities 505 14,778 2.7 % Other current liabilities 351 10,268 1.9 % Total current liabilities 3,770 110,393 20.1 % Non-current liabilities Bonds payable 829 24,283 4.4 % Long-term loans 591 17,318 3.2 % Lease liabilities, noncurrent 184 5,382 1.0 % Other non-current liabilities 1,835 53,723 9.8 % Total non-current liabilities 3,439 100,705 18.4 % Total liabilities 7,210 211,098 38.5 % Equity Equity attributable to the parent company Capital 4,288 125,565 22.9 % Additional paid-in capital 513 15,023 2.7 % Retained earnings and other components of equity 6,704 196,284 35.8 % Total equity attributable to the parent company 11,505 336,871 61.5 % Non-controlling interests 6 174 0.0 % Total equity 11,511 337,046 61.5 % Total liabilities and equity 18,721 548,144 100.0 % Notes: (1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2025 exchange rate of NT $29.28 per U.S. Dollar. (2) Sums may not equal totals due to rounding. Expand Year over Year Comparison Quarter over Quarter Comparison Three-Month Period Ended Three-Month Period Ended June 30, 2025 June 30, 2024 Chg. June 30, 2025 March 31, 2025 Chg. US$ NT$ NT$ % US$ NT$ NT$ % Operating revenues 2,007 58,758 56,799 3.4 % 2,007 58,758 57,859 1.6 % Operating costs (1,430 ) (41,880 ) (36,816 ) 13.8 % (1,430 ) (41,880 ) (42,412 ) (1.3 %) Gross profit 576 16,878 19,983 (15.5 %) 576 16,878 15,447 9.3 % 28.7 % 28.7 % 35.2 % 28.7 % 28.7 % 26.7 % Operating expenses - Sales and marketing expenses (20 ) (591 ) (678 ) (12.8 %) (20 ) (591 ) (619 ) (4.5 %) - General and administrative expenses (57 ) (1,682 ) (1,804 ) (6.8 %) (57 ) (1,682 ) (1,542 ) 9.1 % - Research and development expenses (143 ) (4,194 ) (3,853 ) 8.9 % (143 ) (4,194 ) (3,964 ) 5.8 % - Expected credit impairment gain (loss) (0 ) (0 ) 24 - (0 ) (0 ) 2 - Subtotal (221 ) (6,467 ) (6,311 ) 2.5 % (221 ) (6,467 ) (6,123 ) 5.6 % Net other operating income and expenses 14 409 219 86.6 % 14 409 462 (11.5 %) Operating income 370 10,820 13,891 (22.1 %) 370 10,820 9,786 10.6 % 18.4 % 18.4 % 24.5 % 18.4 % 18.4 % 16.9 % Net non-operating income and expenses (23 ) (666 ) 2,529 - (23 ) (666 ) (439 ) 51.5 % Income from continuing operations before income tax 347 10,154 16,420 (38.2 %) 347 10,154 9,347 8.6 % 17.3 % 17.3 % 28.9 % 17.3 % 17.3 % 16.2 % Income tax expense (45 ) (1,306 ) (2,645 ) (50.6 %) (45 ) (1,306 ) (1,603 ) (18.5 %) Net income 302 8,848 13,775 (35.8 %) 302 8,848 7,743 14.3 % 15.1 % 15.1 % 24.3 % 15.1 % 15.1 % 13.4 % Other comprehensive income (loss) (925 ) (27,075 ) 1,375 - (925 ) (27,075 ) 4,489 - Total comprehensive income (loss) (623 ) (18,227 ) 15,150 - (623 ) (18,227 ) 12,232 - Net income attributable to: Shareholders of the parent 304 8,903 13,786 (35.4 %) 304 8,903 7,777 14.5 % Non-controlling interests (2 ) (55 ) (11 ) 398.2 % (2 ) (55 ) (34 ) 62.8 % Comprehensive income (loss) attributable to: Shareholders of the parent (621 ) (18,172 ) 15,161 - (621 ) (18,172 ) 12,266 - Non-controlling interests (2 ) (55 ) (11 ) 401.2 % (2 ) (55 ) (33 ) 63.7 % Earnings per share-basic 0.024 0.71 1.11 0.024 0.71 0.62 Earnings per ADS (2) 0.121 3.55 5.55 0.121 3.55 3.10 Weighted average number of shares outstanding (in millions) 12,485 12,414 12,485 12,485 Notes: (1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2025 exchange rate of NT $29.28 per U.S. Dollar. (2) 1 ADS equals 5 common shares. (3) Sums may not equal totals due to rounding. Expand UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated Condensed Statements of Comprehensive Income Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) Except Per Share and Per ADS Data For the Three-Month Period Ended For the Six-Month Period Ended June 30, 2025 June 30, 2025 US$ NT$ % US$ NT$ % Operating revenues 2,007 58,758 100.0 % 3,983 116,617 100.0 % Operating costs (1,430 ) (41,880 ) (71.3 %) (2,879 ) (84,292 ) (72.3 %) Gross profit 576 16,878 28.7 % 1,104 32,325 27.7 % Operating expenses - Sales and marketing expenses (20 ) (591 ) (1.0 %) (41 ) (1,210 ) (1.0 %) - General and administrative expenses (57 ) (1,682 ) (2.9 %) (110 ) (3,225 ) (2.8 %) - Research and development expenses (143 ) (4,194 ) (7.1 %) (279 ) (8,157 ) (7.0 %) - Expected credit impairment gain (loss) (0 ) (0 ) (0.0 %) 0 2 0.0 % Subtotal (221 ) (6,467 ) (11.0 %) (430 ) (12,590 ) (10.8 %) Net other operating income and expenses 14 409 0.7 % 30 871 0.8 % Operating income 370 10,820 18.4 % 704 20,606 17.7 % Net non-operating income and expenses (23 ) (666 ) (1.1 %) (38 ) (1,105 ) (1.0 %) Income from continuing operations before income tax 347 10,154 17.3 % 666 19,501 16.7 % Income tax expense (45 ) (1,306 ) (2.2 %) (99 ) (2,909 ) (2.5 %) Net income 302 8,848 15.1 % 567 16,591 14.2 % Other comprehensive income (loss) (925 ) (27,075 ) (46.1 %) (771 ) (22,586 ) (19.4 %) Total comprehensive income (loss) (623 ) (18,227 ) (31.0 %) (205 ) (5,995 ) (5.1 %) Net income attributable to: Shareholders of the parent 304 8,903 15.2 % 570 16,679 14.3 % Non-controlling interests (2 ) (55 ) (0.1 %) (3 ) (88 ) (0.1 %) Comprehensive income (loss) attributable to: Shareholders of the parent (621 ) (18,172 ) (30.9 %) (202 ) (5,906 ) (5.1 %) Non-controlling interests (2 ) (55 ) (0.1 %) (3 ) (88 ) (0.1 %) Earnings per share-basic 0.024 0.71 0.046 1.34 Earnings per ADS (2) 0.121 3.55 0.229 6.70 Weighted average number of shares outstanding (in millions) 12,485 12,485 Notes: (1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2025 exchange rate of NT $29.28 per U.S. Dollar. (2) 1 ADS equals 5 common shares. (3) Sums may not equal totals due to rounding. Expand UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated Condensed Statement of Cash Flows For The Six-Month Period Ended June 30, 2025 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) US$ NT$ Cash flows from operating activities : Net income before tax 666 19,501 Depreciation & Amortization 978 28,634 Share of profit of associates and joint ventures (8 ) (238 ) Income tax paid (93 ) (2,719 ) Changes in working capital & others 26 747 Net cash provided by operating activities 1,568 45,924 Cash flows from investing activities : Increase in financial assets measured at amortized cost (39 ) (1,145 ) Acquisition of property, plant and equipment (741 ) (21,696 ) Acquisition of intangible assets (47 ) (1,374 ) Others 146 4,271 Net cash used in investing activities (681 ) (19,943 ) Cash flows from financing activities : Decrease in short-term loans (68 ) (1,991 ) Proceeds from bonds issued 178 5,200 Proceeds from long-term loans 96 2,800 Repayments of long-term loans (601 ) (17,594 ) Others (36 ) (1,043 ) Net cash used in financing activities (431 ) (12,627 ) Effect of exchange rate changes on cash and cash equivalents (217 ) (6,359 ) Net increase in cash and cash equivalents 239 6,994 Cash and cash equivalents at beginning of period 3,586 105,000 Cash and cash equivalents at end of period 3,825 111,994 Notes: (1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2025 exchange rate of NT $29.28 per U.S. Dollar. (2) Sums may not equal totals due to rounding. Expand 1 Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending June 30, 2025, the three-month period ending March 31, 2025, and the equivalent three-month period that ended June 30, 2024. For all 2Q25 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the June 30, 2025 exchange rate of NT$ 29.28 per U.S. Dollar. 2 Revenue in this section represents wafer sales. 3 Utilization Rate = Quarterly Wafer Out / Quarterly Capacity 4 Estimated capacity numbers are based on calculated maximum output rather than designed capacity. The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp-up.
Associated Press
11 hours ago
- Business
- Associated Press
UMC Reports Second Quarter 2025 Results
TAIPEI, Taiwan--(BUSINESS WIRE)--Jul 30, 2025-- United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ('UMC' or 'The Company'), a leading global semiconductor foundry, today announced its consolidated operating results for the second quarter of 2025. Second quarter consolidated revenue was NT$58.76 billion, increasing 1.6% from NT$57.86 billion in 1Q25. Compared to a year ago, 2Q25 revenue increased 3.4%. Consolidated gross margin for 2Q25 was 28.7%. Net income attributable to the shareholders of the parent was NT$8.90 billion, with earnings per ordinary share of NT$0.71. Jason Wang, co-president of UMC, said, 'In the second quarter, the utilization rate increased to 76%, as wafer shipments grew 6.2% QoQ, primarily driven by communications in imaging signal processors, NAND controllers, WiFi and LCD controllers. While we experienced an increase in the overall utilization and a growth of our 22/28nm portfolio, the unfavorable foreign exchange movement of the NT dollar capped our gross margin to 28.7% by nearly 3 percentage points. Revenue from our 22/28nm portfolio continued to grow sequentially, now accounting for 40% of total sales, a record high in both percentage and absolute dollar terms. Our industry-leading 22/28nm solutions continue to win adoption by customers, and we expect to see further market share gains in wireless communications over the coming quarters. We have always believed that, with the right differentiation, 22/28nm is a strong and long-lasting node with a robust product pipeline. In addition, the new Phase 3 facility at our Singapore Fab 12i, set to start production in 2026, will enable UMC to better serve customers seeking diversified manufacturing for enhanced supply chain resilience.' Co-president Wang added, 'Looking ahead to the third quarter, we expect a mild increase in wafer shipments. However, adverse foreign exchange movement will lead to a decline in NT dollar revenue. We are closely monitoring the near-term uncertainties and risks as the markets anticipate US tariff policies. To navigate macro and geopolitical headwinds, including foreign exchange risks, UMC will continue to actively manage our foreign exchange exposure and maintain financial flexibility to enhance our financial structure and business resilience.' Co-president Wang said, 'UMC was the recipient of two prestigious accolades at the 2025 Asia Responsible Enterprise Awards (AREA), organized by Enterprise Asia. Among the honors, UMC Co-President and Chief Sustainability Officer SC Chien received an award in the Responsible Business Leadership category, recognizing his leadership in advancing both business operations and sustainable development at UMC. In addition, UMC received the Corporate Sustainability Reporting Award for the company's longstanding commitment to transparency and integrity in ESG disclosures.' Summary of Operating Results Second quarter operating revenues grew 1.6% sequentially to NT$58.76 billion. Revenue contribution from 40nm and below technologies represented 55% of wafer revenue. Gross profit increased 9.3% QoQ to NT$16.88 billion, or 28.7% of revenue. Operating expenses increased 5.6% to NT$6.47 billion. Net other operating income decreased 11.5% to NT$0.41 billion. Net non-operating expenses totaled NT$0.67 billion. Net income attributable to shareholders of the parent amounted to NT$8.90 billion. Earnings per ordinary share for the quarter was NT$0.71. Earnings per ADS was US$0.121. The basic weighted average number of shares outstanding in 2Q25 was 12,484,877,493, compared with 12,484,780,989 shares in 1Q25 and 12,414,189,313 shares in 2Q24. The diluted weighted average number of shares outstanding was 12,534,082,055 in 2Q25, compared with 12,579,207,466 shares in 1Q25 and 12,529,942,186 shares in 2Q24. The fully diluted shares counted on June 30, 2025 were approximately 12,534,367,000. Detailed Financials Section Operating revenues increased to NT$58.76 billion. COGS decreased 1.3% QoQ to NT$41.88 billion. Gross profit increased 9.3% to NT$16.88 billion. Operating expenses grew 5.6% QoQ to NT$6.47 billion, as G&A increased 9.1% to NT$1.68 billion, R&D increased 5.8% to NT$4.19 billion, while Sales & Marketing decreased 4.5% to NT$0.59 billion. Net other operating income was NT$0.41 billion. In 2Q25, operating income increased 10.6% QoQ to NT$10.82 billion. Net non-operating expenses in 2Q25 was NT$0.67 billion, primarily reflecting the NT$1.28 billion in exchange loss, offset by the NT$0.33 billion in net investment gain, and the NT$0.31 billion in net interest income. In 2Q25, cash inflow from operating activities was NT$22.10 billion. Cash outflow from investing activities totaled NT$9.44 billion, which included NT$8.37 billion in capital expenditures, resulting in free cash flow of NT$13.73 billion. Cash inflow from financing activities was NT$1.15 billion, primarily from NT$5.20 billion in bonds issued, offset by a NT$3.77 billion decreased in bank loans. Net cash flow in 2Q25 amounted to NT$5.64 billion. Over the next 12 months, the company expects to repay NT$3.72 billion in bank loans. Cash and cash equivalents increased to NT$111.99 billion. Days of inventory decreased 1 day to 76 days. Current liabilities increased to NT$110.39 billion due to dividends payable of NT$35.79 billion. Long-term credit/bonds decreased to NT$41.60 billion. Total liabilities increased to NT$211.10 billion, leading to a debt to equity ratio of 63%. Analysis of Revenue 2 Revenue from Asia Pacific increased to 67%, while business from North America was 20% of sales. Business from Europe increased to 8%, while contribution from Japan was 5%. Revenue contribution from 22/28nm increased to 40% of wafer revenue, while 40nm contribution slightly decreased to 15% of sales. Revenue from fabless customers accounted for 81% of revenue. Revenue from the communication segment accounted for 41%, while business from computer applications was 11% of sales. Business from consumer applications accounted for 33%, while other segments was 15% of revenue. (1) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec, keyboard controller, monitor scaler, USB, I/O chipset, WLAN. Communication consists of handset components, broadband, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart cards, toys, etc. Blended ASP Trend Blended average selling price (ASP) remained firm in 2Q25. ( To view blended ASP trend, please click here for 2Q25 ASP ) Shipment and Utilization Rate 3 Wafer shipments increased 6.2% QoQ to 967K during the second quarter, while quarterly capacity was 1,290K. Overall utilization rate in 2Q25 grew to 76%. Capacity 4 Total capacity in the second quarter increased to 1,290K 12-inch equivalent wafers. Capacity will grow in the third quarter of 2025 to 1,305K 12-inch equivalent wafers. (1) One 6-inch wafer is converted into 0.25 (6 2 /12 2 ) 12-inch equivalent wafer; one 8-inch wafer is converted into 0.44 (8 2 /12 2 ) 12-inch equivalent wafers. Total capacity figures are expressed in 12-inch equivalent wafers. CAPEX CAPEX spending in 2Q25 totaled US$273 million. 2025 cash-based CAPEX budget will be US$1.8 billion. Third Quarter 2025 Outlook & Guidance Quarter-over-Quarter Guidance: Recent Developments / Announcements Please visit UMC's website for further details regarding the above announcements Conference Call / Webcast Announcement Wednesday, July 30, 2025 Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM (London) A live webcast and replay of the 2Q25 results announcement will be available at under the 'Investors / Events' section. About UMC UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry company. The company provides high-quality IC fabrication services, focusing on logic and various specialty technologies to serve all major sectors of the electronics industry. UMC's comprehensive IC processing technologies and manufacturing solutions include Logic/Mixed-Signal, embedded High-Voltage, embedded Non-Volatile-Memory, RFSOI, BCD etc. Most of UMC's 12-in and 8-in fabs with its core R&D are in Taiwan, with additional ones throughout Asia. UMC has a total of 12 fabs in production with a combined capacity of more than 400,000 wafers per month (12-in equivalent), and all of them are certified with IATF 16949 automotive quality standards. UMC is headquartered in Hsinchu, Taiwan, plus local offices in the United States, Europe, China, Japan, Korea, and Singapore, with a worldwide total of 20,000 employees. For more information, please visit: Safe Harbor Statements This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding anticipated financial results for the second quarter of 2025; the expected wafer shipment and ASP; the anticipated annual budget; capex strategies; environmental protection goals and water management strategies; impact of foreign currency exchange rates; expected foundry capacities; the ability to obtain new business opportunities; and information under the heading 'Third Quarter 2025 Outlook and Guidance.' These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) dependence upon the frequent introduction of new services and technologies based on the latest developments in the industry in which UMC operates; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international business activities; (iv) dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including natural disasters, terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risk factors is included in UMC's filings with the United States Securities and Exchange Commission, including its Annual Report on Form 20-F. All information provided in this release is as of the date of this release and are based on assumptions that UMC believes to be reasonable as of this date, and UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. The financial statements included in this release are prepared and published in accordance with Taiwan International Financial Reporting Standards, or TIFRSs, recognized by the Financial Supervisory Commission in the ROC, which is different from International Financial Reporting Standards, or IFRSs, issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from generally accepted accounting principles in the ROC and generally accepted accounting principles in the United States. - FINANCIAL TABLES TO FOLLOW - 1 Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending June 30, 2025, the three-month period ending March 31, 2025, and the equivalent three-month period that ended June 30, 2024. For all 2Q25 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the June 30, 2025 exchange rate of NT$ 29.28 per U.S. Dollar. 2 Revenue in this section represents wafer sales. 3 Utilization Rate = Quarterly Wafer Out / Quarterly Capacity 4 Estimated capacity numbers are based on calculated maximum output rather than designed capacity. The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp-up. View source version on CONTACT: Michael Lin / David Wong UMC, Investor Relations + 886-2-2658-9168, ext. 16900 [email protected] [email protected] KEYWORD: TAIWAN ASIA PACIFIC INDUSTRY KEYWORD: SEMICONDUCTOR TECHNOLOGY MANUFACTURING TELECOMMUNICATIONS MOBILE/WIRELESS OTHER MANUFACTURING HARDWARE SOURCE: United Microelectronics Corporation Copyright Business Wire 2025. PUB: 07/30/2025 08:36 AM/DISC: 07/30/2025 08:36 AM
Yahoo
12 hours ago
- Business
- Yahoo
United Microelectronics Chief Cautions Currency, Trade Policy Could Dampen Gains
Taiwan-based United Microelectronics Corporation (NYSE:UMC), a prominent global semiconductor foundry, saw its stock price fall on Wednesday after reporting fiscal second-quarter results that largely disappointed market expectations. For the quarter, the company reported revenue of $2.01 billion (58.76 billion New Taiwanese dollars), marking a modest 3.4% increase year-on-year. However, this figure missed the analyst consensus estimate of $2.05 billion. On a sequential basis, revenue saw a slight uptick of 1.6%. Earnings per American Depositary Share (ADS) came in at 12 cents, also missing the analyst consensus of 14 the overall miss, the company showcased progress in its advanced process nodes. Revenue derived from 22nm and 28nm technologies accounted for a record 40% of wafer revenue, a significant increase from 33% reported a year ago. The contribution from 40nm technology experienced a marginal sequential decline, even as its share of total sales modestly increased to 15% from 12% in the prior year. Capacity utilization showed improvement, rising to 76% from 68% year-over-year. However, the gross margin contracted to 28.7% from 35.2% in the same period last year. Capital expenditures for the quarter totaled $273 million. United Microelectronics Co-President Jason Wang provided a detailed overview of the quarter's performance and strategic initiatives. He noted that the company's utilization rate improved to 76% in the second quarter, driven by a 6.2% quarter-over-quarter increase in wafer shipments. View more earnings on UMC This growth was primarily fueled by robust demand in the communications sector for imaging signal processors, NAND controllers, WiFi, and LCD controllers. Wang acknowledged that while overall utilization increased and the 22/28nm portfolio expanded, an unfavorable New Taiwanese dollar exchange rate impacted profitability, reducing the gross margin by nearly three percentage points to 28.7%. He emphasized the continued sequential growth of revenue from the 22/28nm portfolio, which reached a record 40% of total sales in both percentage and absolute dollar terms. Wang asserted that 'the company's industry-leading 22/28nm solutions gained further customer adoption,' and the company anticipates gaining market share in wireless communications in the upcoming quarters. Reaffirming confidence in the long-term strength and differentiation of the 22/28nm node, he highlighted that the new Phase 3 facility at Singapore's Fab 12i, slated for production in 2026, will play a crucial role in supporting customers seeking diversified manufacturing options for enhanced supply chain resilience. Looking ahead to the third quarter, Wang cautioned that while the company anticipates a modest increase in wafer shipments, adverse foreign exchange trends are expected to reduce revenue when denominated in New Taiwanese dollars. The company remains vigilant in monitoring short-term uncertainties, including potential shifts in U.S. tariff policies. Outlook For the third quarter, United Microelectronics projects wafer shipments to increase by a low-single-digit percentage, with the average selling price (ASP) expected to remain flat. The company anticipates a quarterly gross margin of approximately 28.7% and capacity utilization in the mid-70% range. United Microelectronics reiterated its capital expenditure target of $1.8 billion for 2025. Price Action: UMC stock is trading lower by 4.21% to $6.82 premarket at last check Wednesday. Photo by Dr David Sing via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? UNITED MICROELECTRONICS (UMC): Free Stock Analysis Report This article United Microelectronics Chief Cautions Currency, Trade Policy Could Dampen Gains originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
04-07-2025
- Business
- Business Wire
UMC Reports Sales for June 2025
TAIPEI, Taiwan--(BUSINESS WIRE)--United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ('UMC'), today reported unaudited net sales for the month of June 2025. Additional information about UMC is available on the web at
Business Wire
05-06-2025
- Business
- Business Wire
UMC Reports Sales for May 2025
TAIPEI, Taiwan--(BUSINESS WIRE)--United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ('UMC'), today reported unaudited net sales for the month of May 2025. Revenues for May 2025 Period 2025 2024 Y/Y Change Y/Y (%) May 19,480,057 19,509,486 -29,429 -0.15% Jan.-May 97,793,544 93,882,976 3,910,568 4.17% Expand (*) All figures in thousands of New Taiwan Dollars (NT$), except for percentages (**) All figures are consolidated Additional information about UMC is available on the web at
