Q2 2025 United Microelectronics Corp Earnings Call Transcript

Jul 30, 2025 / 09:00AM GMT

Release Date Price: $7.1 (-0.28%)

Transcript

Key Points

Positve

United Microelectronics Corp (UMC) reported a 6.3% increase in wafer shipments quarter-over-quarter, indicating strong demand in the second quarter of 2025.
The company's revenue from 22 and 28-nanometer technologies reached a record high, accounting for 40% of total sales, showcasing their competitive edge in advanced technology.
UMC's cash reserves remained robust, with over TWD111 billion at the end of the first half of 2025, providing financial flexibility.
The company maintained a stable ASP (Average Selling Price) due to a better product mix, particularly in the 22 and 28-nanometer nodes.
UMC's new Phase II facility at the Singapore Fab 12i is set to start production in 2026, enhancing their capacity to meet future demand and improve supply chain resilience.

Negative

The appreciation of the NT dollar negatively impacted UMC's gross margin by nearly 3 percentage points, highlighting foreign exchange risks.
UMC's gross margin decreased to 28.7% from 33.1% in the same period of 2024, indicating pressure on profitability.
The company faces ongoing geopolitical and macroeconomic uncertainties, including potential impacts from US tariff policies.
UMC's capacity utilization rate, although improved, remains in the mid-70% range, which is not optimal for maximizing profitability.
The semiconductor industry is experiencing lower visibility and atypical seasonality, making it challenging for UMC to predict future demand accurately.

Operator

Welcome, everyone, to UMC's 2025 second quarter earnings conference call. (Operator Instructions) And for your information, this conference call is now being broadcasted live over the Internet. Webcast replay will be available within two hours after the conference is finished. Please visit our website, www.umc.com, under the Investor Relations, Investors Events section.

Now, I would like to introduce Mr. Michael Lin, Head of Investor Relations at UMC. Mr. Lin, please begin.

Michael Lin

United Microelectronics Corp - Head of Investor Relations

Thank you and welcome to UMC's conference call for the second quarter of 2025. I'm joined by Mr. Jason Wang, President of UMC; and Mr. Chi-Tung Liu, the CFO of UMC. In a moment, we will hear our CFO present the second quarter financial results, followed by our President's key message to address UMC's focus and third quarter 2025 guidance. Once our President and CFO complete their remarks, there will be a Q&A session. UMC's quarterly financial reports

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