[News] UMC May Net Profit Surges 203% YoY as Utilization Strength Drives Earnings Upside
Ahead of its planned second-half price increases, UMC is already riding a profit upswing fueled by robust utilization rates. The foundry posted May revenue of NT$22.94 billion, up 17.8% year-over-year, while net profit soared 203% to NT$8.45 billion, translating into EPS of NT$0.68, according to its latest unaudited earnings disclosure.
Notably, May EPS alone nearly matched the NT$0.71 generated in the whole second quarter of last year, and accounted for roughly 53% of the NT$1.29 earned in the first quarter of 2026, according to the Economic Daily News and MoneyDJ.
The strong momentum in May aligns with UMC’s Q2 guidance. According to Central News Agency, wafer shipments are expected to rise 7%–9% QoQ, with utilization reaching 81%–83%. ASPs are projected to increase 1%–3%, supporting gross margin close to 30%.
Industry sources cited by the Economic Daily News further indicate UMC’s overall capacity utilization averaged around 85% in the second quarter of 2026. The company’s 12-inch fab in Tainan has yet to reach full utilization, while its Singapore facility remains fully loaded and its Xiamen fab is operating near full capacity, the report suggests.
Meanwhile, demand for specialty 8-inch process technologies continues to strengthen, with product lines including PMICs maintaining stable order intake, as noted by the report.
UMC has further cemented its position in the mature-node foundry segment, with 22/28nm accounting for 34% of wafer revenue, followed by 40nm at 18%, according to its latest quarterly earnings. Geographically, Asia Pacific remained the largest market at 65% of sales, while North America contributed 21%.
Intel Collaboration Rumors
While market speculation around a potential UMC–Intel partnership on 3nm technologies has intensified, UMC said it does not comment on rumors or market speculation, as noted by TechNews.
More concretely, the 12nm collaboration between UMC and Intel is progressing smoothly. According to the report, the jointly developed 12nm FinFET platform is on track for mass production in 2027. The program is being advanced in close collaboration, with process validation expected to complete in 2026 before production is transferred to Intel’s Ocotillo fab in Arizona, the report adds.
Additionally, the Economic Daily News also notes that UMC is focusing on silicon photonics and advanced packaging. The company has secured silicon photonics process licensing and is leveraging its proprietary SOI process and 8-inch volume production experience to advance a 12-inch silicon photonics platform. Meanwhile, embedded deep trench capacitor products have entered mass production and begun shipment, and have been designed into international customers’ supply chains, according to the report.
Read more
- [News] UMC Reportedly to Raise Prices Selectively in 2H26, with Broader and Potentially Larger Increases in 2027
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(Photo credit: UMC)
