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- **Q3 2025 Strong Performance**: Revenue TWD 59.13 billion (+2.2% YoY), gross margin 29.8%, North America share +5ppt to 25%. 22nm/28nm revenue 35%.
- **2026 Growth Drivers**: 22nm/28nm +double digits, 8-inch PMIC high single-digit growth, 12nm U.S. fab ramping Q1 2026.
- **Geopolitical Mitigation**: Diversified fabs (Taiwan/Singapore/U.S.), customer LTA commitments, 2026 CapEx $1.8 billion.
- **Margin Stability**: High 20% gross margin target, mid-70% utilization, 2026 depreciation growth slowing.

**【CFO Financial Commentary】**
- Q3 2025 revenue: TWD 59.13 billion (78% wafer shipment utilization), gross margin 29.8%, net income TWD 14.98 billion (EPS TWD 1.2). Year-over-year, first 3Q revenue +2.2% to TWD 175.7 billion, net income EPS -26% YoY.
- Key trends: North America revenue share +5ppt to 25%, 22nm/28nm revenue 35%, 40nm/65nm stable at 17%/18%. Cash >TWD 100 billion, 2025 CapEx $1.8 billion (90% 12-inch).

**【CEO Strategic Update】**
- Q3 wafer shipment growth 3.4%, 22nm revenue >10% of total, 55nm BCD platform launched for automotive/industrial. Q4 2025 shipment flat, 2025 shipment growth low teens.
- 2026 outlook: 22nm/28nm revenue +double digits, 8-inch PMIC growth high single-digit, 12nm FinFET collaboration with Intel in U.S. (tape-out 2027). Gross margin high 20% range, utilization mid-70%.

**【Q&A Highlights】**
- **Demand & Pricing**: ASP firm, 22nm/28nm growth drivers, 8-inch PMIC recovery. Q4 2025 shipment flat, 2026 shipment growth cautious due to geopolitical risks.
- **Cost & Margin**: Depreciation +20% YoY, but ASP resilience offsets FX headwinds. 2026 depreciation growth slows, supporting margin stability.
- **Geopolitical Risks**: U.S. tariff uncertainty, but UMC's diversified fabs (Taiwan/Singapore/U.S.) and customer engagement mitigate risks. 12nm U.S. fab ramping Q1 2026.
- **Advanced Packaging**: 2.5D Interposer (6K wafers) transitioning to DTC for AI/HPC, 2026-2027 ramp. Wafer-to-wafer stacking in RFIC mass production.

United Microelectronics Corporation (UMC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

UMC

UMC fundamentals

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