UMC Q1 Revenue Up 5.5%, Capacity Utilization Rises to 79%

According to United Microelectronics Corporation (UMC), a leading semiconductor foundry, the company announced its financial results for the first quarter of 2026 on April 29, reporting stable performance driven by strong demand in consumer electronics and advanced process technologies.

In Q1 2026, UMC recorded consolidated revenue of NT$61.04 billion, a slight sequential decline of 1.2% but a year-on-year increase of 5.5%. Net profit attributable to shareholders reached NT$16.17 billion, with earnings per share (EPS) of NT$1.29, marking a more than one-year high. Gross margin remained solid at 29.2%, while operating margin stood at 18.5%.

UMC CEO Jason Wang noted that wafer shipments increased by 2.7% quarter-over-quarter, supported by robust demand in the consumer electronics segment. This helped lift overall capacity utilization to 79%. Although the average selling price (ASP) saw a mild decline due to a higher proportion of 8-inch wafer shipments, overall profitability remained stable.

In advanced and specialty process technologies, momentum continued to strengthen. Demand for 22nm logic and specialty processes expanded further, contributing to a record-high 14% share of quarterly revenue. Combined 22nm/28nm processes accounted for 34% of total wafer revenue. Looking ahead to the end of 2026, UMC expects more than 50 customers to complete tape-out on its 22nm platform, supporting applications across display driver ICs, networking chips, and microcontrollers.

On technology development and strategic collaboration, UMC continues to invest in next-generation solutions. The company is jointly developing a 12nm process platform with Intel, aimed at ensuring technology continuity beyond 22nm and providing additional U.S.-based manufacturing options for customers. In parallel, UMC has made progress in emerging technologies through collaboration on thin-film lithium niobate (TFLN) photonics, targeting applications in AI infrastructure.

For the second quarter of 2026, CEO Jason Wang expects continued momentum across end markets. Demand recovery in communications, along with steady growth in computing, consumer electronics, and industrial sectors, is expected to drive strong wafer shipment growth for both 8-inch and 12-inch fabs. Total wafer shipments are projected to increase by a high-single-digit percentage quarter-over-quarter.

Average selling prices in U.S. dollar terms are expected to rise slightly by a low-single-digit percentage, while gross margin is forecast to remain around 30%. Capacity utilization is anticipated to increase further to the high-80% range.

Despite ongoing uncertainties such as memory supply constraints and geopolitical volatility in the Middle East, UMC maintains a positive outlook on overall demand resilience. The company also confirmed that its 2026 capital expenditure budget will remain at approximately US$1.5 billion.