United Microelectronics Corporation's Q2 2025: Navigating Contradictions in Intel Partnerships and Production Expectations

Intel cooperation and 12-nanometer production, Intel partnership expectations, depreciation growth expectations, demand outlook and inventory management, and 22-nanometer and high-voltage solutions are the key contradictions discussed in United Microelectronics Corporation's latest 2025Q2 earnings call.



Revenue and Earnings Performance:
- United Microelectronics Corporation reported consolidated revenue of TWD 58.8 billion for Q2 2025, with a gross margin of 28.7%.
- The company's net income was TWD 8.9 billion, and earnings per ordinary shares were TWD 0.71.
- The growth was driven by increased wafer shipments and favorable product mix, despite currency fluctuations.

Wafer Shipments and Market Demand:
- Wafer shipments increased to 967,000 in Q2, up 6.3% quarter-over-quarter.
- This increase was primarily driven by the demand for communication and imaging signal processors, NAND controllers, WiFi, and LCD controllers.

Currency Impact and Financial Strategy:
- The NT dollar appreciated by a similar magnitude from Q1 to Q2, affecting the gross margin by nearly 3 percentage points.
- UMC is actively managing foreign exchange exposure and maintaining financial flexibility to mitigate macroeconomic risks.

Capacity Expansion and Technology Outlook:
- The company is expanding its capacity, particularly for 12X facilities in Xiamen, to support expected demand growth.
- UMC continues to invest in new technology nodes, such as 12-nanometer, to enhance its competitive position and market relevance.