UMC Reports 4.1% Y/Y Sales Decline in July 2025

United Microelectronics Corporation (UMC) reported a 4.10% year-on-year decline in sales for July 2025, reaching NT$20.04 billion. However, sales for the first seven months of the year increased by 3.27% to NT$136.66 billion compared to the same period in 2024. The decline in July sales was attributed to market fluctuations and changes in customer demand.

United Microelectronics Corporation (UMC) reported a 4.10% year-on-year decline in sales for July 2025, reaching NT$20.04 billion. However, sales for the first seven months of the year increased by 3.27% to NT$136.66 billion compared to the same period in 2024. The decline in July sales was attributed to market fluctuations and changes in customer demand.

The company's cumulative sales for the January-July period reached NT$136.66 billion, marking a 3.3% increase compared to NT$132.33 billion during the same seven-month period in 2024. The monthly decline of NT$856.8 million contrasts with the year-to-date performance, which showed growth of NT$4.33 billion over the comparable 2024 period.

Despite the July sales decline, UMC's strategic focus on mature-node technologies, such as 22/28nm, has positioned it to capture significant market share in the foundry sector. The company's 22nm embedded high-voltage (eHV) platform has secured over 90% of the small-panel AMOLED market since 2020, reducing power consumption by 30% and shrinking die area by 10% compared to 28nm alternatives. This innovation has been a key driver of UMC's growth in the mature-node segment.

UMC's utilization rates for 22/28nm processes hit 76% in Q2 2025, outpacing the industry average of 65%. This resilience is driven by strong demand in communications, imaging, and IoT applications. The company's focus on high-growth subsegments within mature nodes, such as NAND controllers and WiFi 6E, has transformed what was once a commodity business into a durable cash flow generator.

Geographically, UMC is diversifying its production to mitigate geopolitical risks. The company's 66% revenue concentration in Asia Pacific is balanced by 22% in North America and 7% in Europe. This diversification is not just strategic—it's financial. UMC's $106.35 billion in cash reserves and $1.8 billion CAPEX plan (90% allocated to 12-inch wafer fabrication) demonstrate its ability to fund expansion while maintaining financial flexibility.

For investors, UMC represents a compelling case of strategic agility. Its 2025 CAPEX reduction and AI-driven manufacturing initiatives signal a focus on capital efficiency, while its 12.3% market share in 28nm positions it to benefit from the $50 billion foundry market for mature nodes. With a forward P/E of 12.5x and a dividend yield of 3.2%, UMC offers both growth and income potential in a sector prone to volatility.

References:
[1] https://www.streetinsider.com/Corporate+News/UMC+reports+4.1%25+decline+in+July+sales+to+NT%2420.04+billion/25153477.html
[2] https://www.ainvest.com/news/umc-strategic-mastery-22-28nm-blueprint-resilient-growth-fragmented-semiconductor-landscape-2508/
[3] https://www.barchart.com/story/news/33909988/umc-reports-sales-for-july-2025
[4] https://www.theglobeandmail.com/investing/markets/stocks/UMC/pressreleases/33772474/umc-reports-strong-q2-2025-results-and-strategic-developments/