United Microelectronics Corporation Q3 2026 Earnings Recap

UMC shares fell 7.2% after earnings, despite record wafer shipments and higher utilization. The likely concern is that Q4 guidance points to only low-single-digit shipment growth, with gross margin merely comparable to Q3, tempering the upbeat demand commentary.

Key Takeaways

• Q3 revenue rose 8% sequentially to TWD 74.24 billion; gross margin improved to 34% from 32.5%, and EPS was TWD 1.32.
• Wafer shipments increased 7.3% to more than 1.2 million 12-inch-equivalent wafers, a record; utilization climbed to 92% from 85%.
• Q4 guidance calls for low-single-digit shipment growth, firm U.S.-dollar ASP, gross margin comparable to Q3, and utilization in the low-90% range.
• 22/28 nm made up about 35% of revenue; 22 nm alone reached 18.3% of wafer sales. Management also cited growing advanced-packaging and silicon-photonics demand.
• The board approved approximately $3.2 billion in additional capital expenditure to accelerate expansion; UMC’s 2026 cash-based CapEx budget remains $2 billion.