Core Viewpoint - UMC's stock fell over 6% pre-market, currently priced at $9.56, despite reporting a revenue increase for Q4 2025 that exceeded market expectations [1] Financial Performance - UMC's Q4 2025 revenue grew by 2.4% year-on-year to $1.97 billion, surpassing market expectations by $60 million [1] - Earnings per share were reported at $0.129, slightly below the market expectation of $0.01 [1] - Gross margin stood at 30.7% for the quarter [1] Production and Capacity - Wafer shipments decreased by 0.6% quarter-on-quarter to 994,000 pieces (approximately 12-inch wafers) [1] - Overall capacity utilization remained stable at 78% [1] Future Outlook - For Q1 of the current year, UMC expects wafer shipments to remain stable, with average selling prices expected to hold firm [1] - Gross margin is projected to decline to around 20% high range, with capacity utilization anticipated to be in the mid-70% range [1]

Investment Rating - The industry investment rating is "Recommended," indicating an expected increase in the industry index exceeding the benchmark index by more than 5% in the next 3-6 months [67]. Core Insights - The report highlights that UMC's revenue for CY25Q4 reached NT$61.81 billion, reflecting a year-on-year growth of 2.36% and a quarter-on-quarter growth of 4.50%. The gross margin was 30.7%, with a slight increase from the previous year [1][2]. - For the full year of 2025, UMC achieved a revenue of NT$237.55 billion, marking a 2.3% year-on-year increase, with a shipment volume growth of 12.3% [1][2]. - The growth in revenue for Q4 was primarily driven by demand from Asia and Europe, while North America's share decreased from 25% to 21% [2][10]. - The 22/28nm process technology remains a core growth driver, accounting for 36% of Q4 revenue, with a significant increase in 22nm revenue by 31% quarter-on-quarter [10][11]. Summary by Sections 1. UMC's Q4 2025 Performance - UMC's Q4 revenue was NT$61.81 billion, with a gross margin of 30.7%, and a quarter-on-quarter increase in operating profit margin to 19.8% [2][7]. - The annual revenue for 2025 was NT$237.55 billion, with a gross margin of 29.0%, reflecting a year-on-year decrease of 3.6 percentage points [2][9]. 2. Revenue Structure - In Q4, the revenue structure showed that 22/28nm processes contributed significantly, with 22nm becoming a key growth driver [10][11]. - By region, Asia accounted for 64% of revenue, while North America decreased to 21% [14][20]. 3. Company Guidance for Q1 2026 - UMC expects a 1% decline in capacity for Q1 2026 due to annual maintenance, with wafer shipments remaining stable [3][22]. - The company anticipates a gross margin in the high-20% range and a capital expenditure budget of approximately $1.5 billion for 2026 [3][24]. 4. Downstream Demand and Technology Outlook - UMC projects continued growth in 2026, driven by the acceleration of 22nm platform tape-outs and new process technology penetration [3][26]. - The company is expanding its global footprint with the completion of the Singapore Fab 12i Phase III factory, aimed at diversifying the supply chain for customers [3][26].

Investment Rating - The industry investment rating is "Recommended," indicating an expected increase in the industry index exceeding the benchmark index by more than 5% in the next 3-6 months [67]. Core Insights - The report highlights that UMC's revenue for CY25Q4 reached NT$61.81 billion, showing a year-on-year growth of 2.36% and a quarter-on-quarter growth of 4.50%. The gross margin was 30.7%, with a slight increase from the previous year [1][2]. - For the full year of 2025, UMC achieved a revenue of NT$237.55 billion, reflecting a year-on-year growth of 2.3% and a shipment volume increase of 12.3% [1][2]. - The growth in revenue for Q4 was primarily driven by demand from Asia and Europe, while North America's share decreased from 25% to 21% [2][10]. - The 22/28nm process technology remains a core growth driver, accounting for 36% of Q4 revenue, with a significant year-on-year increase [10][11]. Summary by Sections 1. UMC's Q4 2025 Performance - UMC's Q4 revenue was NT$61.81 billion, with a gross margin of 30.7%, and a slight increase in operating profit margin to 19.8% [2][7]. - The company maintained a capacity utilization rate of 78% with wafer shipments of approximately 994,000 pieces [7][8]. 2. Revenue Structure - The 22/28nm process accounted for 36% of total revenue in Q4, with a significant increase in 22nm revenue by 31% quarter-on-quarter [10][11]. - By region, Asia represented 64% of revenue, while North America decreased to 21% [14][20]. 3. Company Guidance for Q1 2026 - UMC expects a 1% decline in capacity for Q1 2026 due to annual maintenance, with wafer shipments remaining stable [22][23]. - The company projects a gross margin in the high-20% range and a capital expenditure budget of approximately $1.5 billion for 2026 [23][24]. 4. Downstream Demand and Technology Outlook - UMC anticipates continued growth in 2026, driven by the acceleration of 22nm platform tape-outs and new process technology penetration [26]. - The company is expanding its global footprint with the completion of the Singapore Fab 12i Phase III factory, aimed at diversifying the supply chain for customers [26].

Core Viewpoint - The performance of Chinese concept stocks varied on January 30, with the Nasdaq China Golden Dragon Index (HXC) rising by 0.35% [1][7]. Group 1: Stock Performance - Among the rising stocks, Beike increased by 3.45%, Li Auto by 0.64%, ZTO Express by 1.32%, Huazhu Group by 0.29%, China New Town by 2.12%, NIO by 3.92%, Manbang by 1.30%, New Oriental by 0.87%, and BOSS Zhipin by 0.37% [1][7]. - Among the declining stocks, TSMC fell by 1.00%, Alibaba by 0.77%, Pinduoduo by 0.11%, NetEase by 1.26%, Baidu by 0.09%, ASE Technology by 2.42%, JD.com by 0.55%, Ctrip by 0.61%, Chunghwa Telecom by 0.16%, Tencent Music by 0.35%, UMC by 7.16%, Futu Holdings by 2.04%, Xpeng by 0.35%, Bilibili by 1.34%, and GDS by 1.51% [1][7]. Group 2: Market Overview - The US stock market closed mixed on Thursday, with the Dow Jones Industrial Average dropping by 55.96 points (0.11%) to 49,071.56 points, the Nasdaq falling by 172.33 points (0.72%) to 23,685.12 points, and the S&P 500 decreasing by 9.02 points (0.13%) to 6,969.01 points [2][7]. - Microsoft experienced a significant drop of approximately 10%, leading to a general decline in software stocks and putting pressure on technology stocks [1][7].

Group 1: Company Overview - United Microelectronics Corporation (UMC) is a significant player in the semiconductor industry, providing integrated circuit manufacturing services and competing with major foundries like TSMC and GlobalFoundries [1] - UMC's operations are vital in the tech supply chain, affecting sectors from consumer electronics to automotive [1] Group 2: Financial Performance and Market Position - UMC's recent Q4 2025 earnings call provided insights into its financial health, focusing on key metrics such as revenue and profit margins, which are essential for assessing the company's market position [3][6] - UMC's current stock price is $11.40, reflecting a decrease of approximately 8.62%, with fluctuations between $11.23 and $11.86 during the trading day [4] - Over the past year, UMC's stock has experienced significant volatility, with a high of $12.68 and a low of $5.66 [4] - UMC's market capitalization is approximately $28.44 billion, indicating its substantial presence in the semiconductor industry [5] Group 3: Analyst Ratings and Price Target - BNP Paribas set a price target of $8.60 for UMC, suggesting a potential decrease of approximately -24.50% from its current stock price of $11.39 [2][6] - The downgrade to "Underperform" from "Neutral" reflects a cautious outlook on UMC's future performance in the semiconductor industry [2][6]

盘前市场动向 1. 1月28日(周三)美股盘前，美股三大股指期货齐涨。截至发稿，道指期货涨0.04%，标普500指数期货涨0.37%，纳指期货涨 0.95%。 | = US 30 | 49,020.90 | 49,079.60 | 48,972.10 | +17.50 | +0.04% | | --- | --- | --- | --- | --- | --- | | = US 500 | 7,004.30 | 7.014.80 | 6,983.30 | +25.70 | +0.37% | | 트 US Tech 100 | 26,185.00 | 26,224.70 | 26,003.30 | +245.30 | +0.95% | 2. 截至发稿，德国DAX指数跌0.10%，英国富时100指数跌0.44%，法国CAC40指数跌0.96%，欧洲斯托克50指数涨0.03%。 | 德国DAX30 | 24,882.14 | 24,929.93 | 24,795.48 | -26.09 | -0.10% | | --- | --- | --- | --- | --- | --- | | 英国富时100 | 10,1 ...

公司第四季度经营活动现金流入达330亿新台币，现金及等价物增至1106.6亿新台币。应收账款周转天 数缩短3天至47天，库存天数增加1天至77天。 第四季度总产能为130.5万片(约当12英寸晶圆)。因进行8英寸及12英寸厂年度维护，预计2026年第一季 度总产能将小幅降至128.3万片(约当12英寸)。 资本开支与产能规划方面，公司第四季度资本支出为5.01亿美元，2025年全年资本支出达16亿美元。 2026年现金资本支出预算设定为15亿美元。 一季度业绩指引趋于保守。晶圆出货量预计将保持平稳，平均销售单价(美元计)将保持坚挺，毛利率预 计回落至约20%高位区间，产能利用率预计处于70%中段范围。 智通财经APP获悉，晶圆代工大厂联电(UMC.US)公布2025年第四季度业绩。财报显示，公司营收达 19.7亿美元，同比增长2.4%，较市场预期高出6000万美元;但GAAP每股收益为0.129美元，略低于市场 预期0.01美元。 关键财务与运营指标显示结构性调整。盈利水平方面，第四季度毛利率为30.7%，营业利润率为 19.8%。技术节点贡献上，22/28纳米制程营收占比达36%。 产能与效率上，联电当季晶 ...

Core Insights - The company emphasized the importance of 22-nanometer technology as a key growth driver, with 22- and 28-nanometer revenue accounting for 36% of total revenue in Q4 2025 [1] - The company reported a revenue increase of 2.3% year-over-year for the full year 2025, with a gross margin of approximately 29% [3] - The company anticipates a favorable ASP environment in 2026, driven by disciplined pricing and product mix optimization [12] Financial Performance - For Q4 2025, consolidated revenue was TWD 61.81 billion, with a gross margin of about 30.7% and net income attributable to shareholders of TWD 10.06 billion [5][6] - Full-year 2025 net income attributable to shareholders was TWD 41.7 billion, representing a net income rate of 17.6% [3] - Revenue for Q4 2025 grew 4.5% quarter-over-quarter, with gross profit of TWD 18.95 billion [4] Geographic Revenue Mix - North America represented about 21% of Q4 2025 revenue, declining from 25% in 2024 to 22% in 2025 [2] - The company noted a shift in geographic revenue mix, indicating a reduced reliance on North American markets [2] Capacity and Utilization - Capacity utilization was reported at about 78%, unchanged from the previous quarter [5] - The company expects a slight decline in capacity by roughly 1% due to annual maintenance [7] Market Outlook - The semiconductor industry is projected to grow in the mid-teens in 2026, with the foundry market expected to grow in the low 20% range [11] - The company anticipates that AI-related segments will remain the primary growth driver in the semiconductor market [11] Strategic Initiatives - The company is expanding its U.S. footprint through partnerships, including a collaboration with Intel on a 12-nanometer project [14] - Advanced packaging and silicon photonics are identified as emerging growth areas, with expectations for significant revenue contributions in 2027 [16] Emerging Technologies - Specialty revenue represents about 50% of overall revenue, with high voltage making up approximately 30% of specialty revenue [16] - The company is working with over 10 advanced packaging customers and expects more than 20 new tape-outs in 2026 [16]

Core Insights - United Microelectronics Corporation (UMC) reported a consolidated revenue of NT$61.81 billion (US$1.97 billion) for Q4 2025, marking a 4.5% increase from Q3 2025 and a 2.4% increase year-on-year [1] - The company's earnings per share (EPS) for Q4 2025 was NT$0.81 (US$0.129), with net income attributable to shareholders of NT$10.06 billion (US$320 million) [1] - UMC's 22/28nm technology revenue contributed 36% to wafer revenue, with a significant 31% quarter-on-quarter increase in 22nm revenue [1] Financial Performance - Q4 2025 operating revenues reached NT$61.81 billion, up from NT$59.13 billion in Q3 2025, and NT$60.39 billion in Q4 2024 [1] - Gross profit for Q4 2025 was NT$18.96 billion, representing a gross margin of 30.7% [1] - Operating income increased by 10.0% quarter-on-quarter to NT$12.23 billion [1] Capacity and Utilization - UMC's wafer shipments in Q4 2025 were 994K, a slight decrease of 0.6% from Q3 2025, with an overall capacity utilization rate of 78% [1] - Total capacity for Q4 2025 was 1,305K 12-inch equivalent wafers, expected to decrease to 1,283K in Q1 2026 due to annual maintenance [1] Strategic Initiatives - UMC is focusing on expanding its footprint in the U.S. through partnerships, including a collaboration with Intel on 12nm technology and a Memorandum of Understanding with Polar Semiconductor [1] - The company inaugurated a Circular Economy and Recycling Innovation Center aimed at reducing waste generated by its Taiwan fabs by up to one-third [2] Market Outlook - UMC anticipates firm wafer demand in Q1 2026, with expectations for continued growth in 2026 driven by advancements in 22nm platforms and new solutions [1] - The company aims to leverage advanced packaging and silicon photonics as new growth catalysts to meet the evolving needs of high-performance applications across various sectors [1]

Financial Data and Key Metrics Changes - Consolidated revenue for Q4 2025 was TWD 61.81 billion, with a gross margin of approximately 30.7% [4] - Net income attributable to shareholders was TWD 10.06 billion, resulting in earnings per share (EPS) of 0.81 NT dollars [4] - Revenue grew 4.5% quarter-over-quarter and 2.3% year-over-year, reaching TWD 237.5 billion for the full year of 2025 [6][7] - Gross margin improved to 30.7%, with net income for 2025 at TWD 41.7 billion, representing a net income rate of 17.6% [6][7] Business Line Data and Key Metrics Changes - Revenue from the IDM segment remained stable at about 20% for Q4, while it increased to 19% for the full year, up 3 percentage points from the previous year [8] - The consumer application segment increased by 3 percentage points to 31% of total revenue for the year [9] - The 22 and 28-nanometer revenue segments accounted for 36% of total revenue in Q4 2025, with 22-nanometer revenue increasing to 31% quarter-on-quarter [11] Market Data and Key Metrics Changes - North America represented about 21% of revenue in Q4 2025, down from 25% in 2024 [8] - The company expects wafer demand to remain firm in 2026, with a projected growth rate for the semiconductor industry in the mid-teens [17] - The foundry market is projected to grow in the low 20% range, despite potential pressures from memory pricing [18] Company Strategy and Development Direction - UMC is focusing on expanding its 22-nanometer platform and investing in capacity and technology for future growth [12] - The company aims to enhance its footprint in the U.S. through partnerships, such as the collaboration with Intel on the 12-nanometer project [12] - Advanced packaging and silicon photonics are expected to serve as new growth catalysts, addressing high-performance applications across various sectors [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in 2026 being another growth year, driven by the 22-nanometer platform and new solutions gaining traction [12] - The leadership in specialty technologies is expected to sustain business growth, with a focus on optimizing product mix and improving ASP [13] - The company anticipates a more favorable pricing environment in 2026 compared to 2025, supported by disciplined pricing strategies and product mix optimization [19] Other Important Information - The cash-based capital expenditure (CapEx) budget for 2026 is projected at $1.5 billion, slightly down from $1.6 billion in 2025 [10] - The company expects a low teens annual increase in depreciation expenses for 2026 [24] Q&A Session Summary Question: Overall market outlook for 2026 - Management expects AI-related segments to drive growth in the semiconductor industry, with a projected mid-teens growth rate [17] Question: Pricing outlook for mature foundry - A more favorable ASP environment is anticipated in 2026, reflecting a disciplined pricing strategy and improved product mix [19] Question: Capacity ramp in Singapore - Capacity increase for 2026 is expected to be around 1.2% year-over-year, with expansion starting in the second half of 2026 [23] Question: Impact of memory price hikes on demand - Management has not observed significant demand impact from memory price hikes, with expectations for revenue contributions from consumer segments to increase [31] Question: Revenue contribution from advanced packaging - Advanced packaging revenue is expected to grow significantly in 2027, with more than 20 new tape outs anticipated in 2026 [81] Question: Competitive advantage in silicon photonics - UMC's collaboration with imec is expected to deliver industry-standard PDKs by 2027, with a focus on 12-inch technology [94]