United Microelectronics Corporation

2Q 2026 consolidated revenue was TWD 68.73 billion, up 12.6% quarter over quarter; gross margin was 32.5%, up by more than 3 percentage points; net income attributable to parent shareholders was TWD 42.26 billion; and EPS was TWD 3.39. For 1H 2026, revenue was TWD 129.77 billion, up 11.3% year over year; gross margin was 30.9%; net income was TWD 58.4 billion; and EPS was TWD 4.68. Cash on hand was TWD 124.7 billion and total equity was TWD 443.9 billion at quarter end. For 3Q 2026, management guided wafer shipments up high single digits, ASP in U.S. dollars to remain firm, gross margin in the mid-30% range, and utilization above 90%; it also raised 2026 CapEx to USD 2 billion from USD 1.5 billion.

Jason Wang framed the quarter as evidence that UMC is gaining traction in communications, consumer, and specialty segments while also building a longer-term AI-related opportunity set. He highlighted record 22/28nm revenue, first mass production delivery of a 12-inch photonics IC, and the plan to scale silicon photonics and advanced packaging as future growth engines. His tone was constructive and forward-looking, but he repeatedly emphasized phased execution, customer commitment, and capital discipline.

Chi-Tung Liu reported the quarter’s hard numbers and pointed to stronger utilization, higher wafer shipments, and improved gross margin as the key operating drivers. He also noted strong nonoperating income tied to stock market performance, with investment and dividend income together reaching TWD 30 billion in the quarter and nonoperating income totaling TWD 35.6 billion in the first half. On capital allocation, he said cash on hand was TWD 124.7 billion, total equity was TWD 443.9 billion, and the Board approved about USD 5 billion of spending across 2026 and 2027; he also said depreciation will rise by low teens year over year for at least this year and 2027 because of the new cleanroom and fab plans.

Analysts pressed management on AI revenue, customer inventory, pricing power, CapEx intensity, and how far gross margins can run in this cycle. UMC said AI-related revenue is close to USD 300 million in 2026 and should exceed USD 1 billion in three years, while also saying inventories are being watched but are not at a level that causes worry. Management said the current environment is not a broad-based recovery, pricing should improve and could see more meaningful uplift in 2027, and gross margin upside is constrained by rising depreciation from new capacity.