UMC Reports Third Quarter 2025 Results

22nm business traction remains robust and well positioned for future growth

Third Quarter 2025 Overview¹:

• Revenue: NT$59.13 billion (US$1.94 billion)
• Gross margin: 29.8%; Operating margin: 18.8%
• Revenue from 22/28nm: 35%
• Capacity utilization rate: 78%
• Net income attributable to shareholders of the parent: NT$14.98 billion (US$492 million)
• Earnings per share: NT$1.20; earnings per ADS: US$0.197

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 third quarter of 2025.

Third quarter consolidated revenue was NT$59.13 billion, increasing 0.6% from NT$58.76 billion in 2Q25. Compared to a year ago, 3Q25 revenue decreased 2.2%. Consolidated gross margin for 3Q25 was 29.8%. Net income attributable to the shareholders of the parent was NT$14.98 billion, with earnings per ordinary share of NT$1.20.

Jason Wang, co-president of UMC, said, “In the third quarter, we observed demand growth across most market segments, which drove a 3.4% increase in wafer shipments and improved utilization rate to 78%. In particular, we benefited from a pick-up in sales of smartphones and notebooks, driving replenishment orders from customers. Our 22nm technology platforms continue to provide us with differentiation in the market, with 22nm revenue now accounting for more than 10% of total sales. In 2025 alone, we are projecting over 50 product tape-outs and we expect 22nm contribution to continue increasing in 2026. Aligned with our strategy of providing customers with highly differentiated specialty technologies, we recently announced the readiness of our 55nm BCD platform. In addition to mobile and consumer applications, the new platform is also compliant with the most rigorous automotive standards for automotive and industrial uses.”

Co-president Wang added, “Looking ahead to the fourth quarter, we are anticipating wafer shipments to be comparable with third quarter’s volume, wrapping up 2025 with shipment growth in the low teens. UMC continues to deliver competitive process technologies that enable diverse applications, which positions the company to benefit from a broad-based market recovery, with 22nm logic and specialty platforms in particular expected to drive growth.”

Co-president Wang said, “UMC has been a pioneer in the industry for climate action as the first semiconductor foundry worldwide to pledge net zero greenhouse gas emissions. Demonstrating our commitment, UMC once again led the industry in receiving Science Based Targets initiative (SBTi) validation of our emissions reduction targets under the most stringent climate standard. In addition to executing on reduction programs within our own operations, we are also working closely with partners to address the carbon footprint of our upstream and downstream value chain as we progress towards net zero by 2050.”

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 September 30, 2025, the three-month period ending June 30, 2025, and the equivalent three-month period that ended September 30, 2024. For all 3Q25 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the September 30, 2025 exchange rate of NT$ 30.47 per U.S. Dollar.

Summary of Operating Results

Third quarter operating revenues grew 0.6% sequentially to NT$59.13 billion. Revenue contribution from 40nm and below technologies represented 52% of wafer revenue. Gross profit increased 4.4% QoQ to NT$17.62 billion, or 29.8% of revenue. Operating expenses increased 7.8% to NT$6.97 billion. Net other operating income increased 14.3% to NT$0.47 billion. Net non-operating income totaled NT$3.53 billion. Net income attributable to shareholders of the parent amounted to NT$14.98 billion.

Earnings per ordinary share for the quarter was NT$1.20. Earnings per ADS was US$0.197. The basic weighted average number of shares outstanding in 3Q25 was 12,485,162,809, compared with 12,484,877,493 shares in 2Q25 and 12,436,436,695 shares in 3Q24. The diluted weighted average number of shares outstanding was 12,556,345,829 in 3Q25, compared with 12,534,082,055 shares in 2Q25 and 12,559,358,115 shares in 3Q24. The fully diluted shares counted on September 30, 2025 were approximately 12,556,346,000.

Detailed Financials Section

Operating revenues increased to NT$59.13 billion. COGS decreased 0.9% QoQ to NT$41.50 billion. Gross profit increased 4.4% to NT$17.62 billion. Operating expenses grew 7.8% QoQ to NT$6.97 billion, as R&D increased 10.4% to NT$4.63 billion, Sales & Marketing increased 6.2% to NT$0.63 billion, and G&A also increased 1.9% to NT$1.72 billion. Net other operating income was NT$0.47 billion. In 3Q25, operating income increased 2.8% QoQ to NT$11.12 billion.

Net non-operating income in 3Q25 was NT$3.53 billion, primarily reflecting the NT$3.19 billion in net investment gain and the NT$0.25 billion in exchange gain.

In 3Q25, cash inflow from operating activities was NT$20.94 billion. Cash outflow from investing activities totaled NT$16.15 billion, including NT$12.01 billion in capital expenditures, resulting in free cash flow of NT$8.93 billion. Cash outflow from financing activities was NT$15.16 billion, primarily due to the NT$35.79 billion in dividend distribution, offset by the NT$15.87 billion increase in bank loans and NT$5.00 billion in bonds issued. Net cash outflow in 3Q25 amounted to NT$7.78 billion. Over the next 12 months, the company expects to repay NT$24.05 billion in bank loans.

Cash and cash equivalents decreased to NT$104.22 billion. Days of inventory was 76 days.

Current liabilities decreased to NT$82.28 billion. Long-term credit / bonds increased to NT$53.76 billion. Total liabilities decreased to NT$194.20 billion, leading to a debt to equity ratio of 54%.

Analysis of Revenue²

Revenue from Asia Pacific decreased to 63%, while business from North America increased to 25% of sales. Business from Europe remained unchanged at 8%, while contribution from Japan was 4%.

Revenue contribution from 22/28nm was 35% of wafer revenue, while 40nm contribution increased to 17% of sales.

Revenue from fabless customers accounted for 81% of revenue.

Revenue from the communication segment accounted for 42%, while business from computer applications was 12% of sales. Business from consumer applications accounted for 29%, while other segments was 17% 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.

² Revenue in this section represents wafer sales.

Blended ASP Trend

(To view blended ASP trend, please click here for 3Q25 ASP)

Shipment and Utilization Rate³

Wafer shipments increased 3.4% QoQ to 1,000K during the third quarter, while quarterly capacity was 1,305K. Overall utilization rate in 3Q25 grew to 78%.

³ Utilization Rate = Quarterly Wafer Out / Quarterly Capacity

Capacity⁴

Total capacity in the third quarter increased to 1,305K 12-inch equivalent wafers. Capacity will remain unchanged at 1,305K 12-inch equivalent wafers in the fourth quarter of 2025.

CAPEX

CAPEX spending in 3Q25 totaled US$399 million. 2025 cash-based CAPEX budget will be US$1.8 billion.

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.

Fourth Quarter 2025 Outlook & Guidance

Quarter-over-Quarter Guidance:

• Wafer Shipments: Will remain flat
• ASP in USD: Will remain firm
• Gross Profit Margin: Will be approximately in the high-20% range
• Capacity Utilization: mid-70% range
• 2025 CAPEX: US$1.8 billion

Recent Developments / Announcements

Conference Call / Webcast Announcement

Wednesday, October 29, 2025

Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 09:00 AM (London)

A live webcast and replay of the 3Q25 results announcement will be available at

www.umc.com 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: http://www.umc.com.

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 third 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 “Fourth 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 –

Contacts

Michael Lin / David Wong

UMC, Investor Relations
+ 886-2-2658-9168, ext. 16900

[email protected]
[email protected]

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