United Microelectronics stock gains from stronger Q3 operations

United Microelectronics reported stronger third-quarter operating performance on October 28, with higher revenue, expanding margins and record wafer shipments. The Taiwanese semiconductor foundry said demand remained healthy across market segments, while management pointed to continued momentum in the fourth quarter.

According to the Morningstar report carrying the Business Wire release, third-quarter revenue reached NT$74.24 billion, up 8.0% from the second quarter and 25.6% from the year-earlier period. Gross margin increased to 34.0% from 32.5% in the prior quarter, while operating margin reached 25.1%.

Utilization lifts foundry profitability

Operating income rose 24.7% sequentially to NT$18.64 billion and 67.7% year over year. Net income attributable to shareholders of the parent was NT$16.43 billion, compared with NT$14.98 billion a year earlier. Earnings per ordinary share came to NT$1.32, while earnings per ADS were US$0.206.

Wafer shipments increased 7.3% from the second quarter to more than 1.2 million 12-inch-equivalent wafers, a record for UMC. Overall capacity utilization reached 92%, up from 85% in the second quarter, with several 12-inch facilities operating at full capacity and 8-inch operations recovering.

Specialty technologies remained an important growth area. Revenue from 22nm accounted for 18.3% of wafer sales, while 22nm and 28nm together contributed 35%. UMC said customer activity in advanced packaging and silicon photonics remained strong and that some capacity was being converted to address near-term demand.

Q4 outlook remains constructive

For the fourth quarter, management expects wafer shipments to rise by a low-single-digit percentage from the preceding quarter. U.S. dollar average selling prices are expected to remain firm, gross margin should be comparable with the third quarter and capacity utilization is projected to stay in the low-90% range. Total capacity is expected to increase to 1.337 million 12-inch-equivalent wafers.

UMC's board also approved an additional capital expenditure budget of approximately US$3.2 billion on October 28. Chief Executive Jason Wang said the expansion would accelerate the company's schedule in Singapore and Tainan and align capacity with customer product roadmaps.

UMC stock remains tied to execution

United Microelectronics stock traded at 15.25 euros on Lang & Schwarz at 11:47 CET on Friday, October 30, 2026. Investors can follow the real-time quote of United Microelectronics stock.

The broader US market backdrop is covered in the current S&P 500 market reports.

For investors, the next focus is whether higher utilization, specialty technology demand and planned capacity additions can offset rising depreciation and expansion costs. See more news and analyses on United Microelectronics stock.