United Microelectronics (UMC) Q2 2025 earnings summary

Executive summary

• Q2 2025 consolidated revenue reached NT$58.76 billion, up 1.6% sequentially and 3.4% year-over-year, with net income at NT$8.90 billion and EPS of NT$0.71.

• Wafer shipments increased over 6% quarter-over-quarter to 967,000, driven by communications and image signal processors.

• Utilization rate improved to 76% in Q2, with gross margin at 28.7%.

• 22/28nm portfolio revenue hit a record high, accounting for 40% of total sales.

• Net income rose 14.5% from Q1 but was down 35.4% year-over-year.

Financial highlights

• Gross margin was 28.7% (NT$16.88 billion), factoring in a nearly 3 percentage point forex impact.

• Operating income for Q2 was NT$10.82 billion, up 10.6% sequentially.

• First half 2025 revenue rose 4.7% year-over-year to NT$116.62 billion; gross margin for the period was 27.7% vs. 33.1% in 2024.

• Cash and cash equivalents at end of H1 2025 were NT$111.99 billion; total equity at NT$337.04 billion.

• Net income for H1 2025 was NT$16.59 billion, down 31.5% year-over-year.

Outlook and guidance

• Q3 2025 wafer shipments expected to increase by low single digits; NT dollar revenue to decline due to forex headwinds.

• Gross margin for Q3 projected to be similar to Q2, assuming stable forex rates.

• Capacity utilization to remain in the mid-70% range; total Q3 capacity projected at 1,305K 12" wafer equivalents.

• 2025 CAPEX budget unchanged at US$1.8 billion, with 90% for 12-inch fabs.

• Mild growth expected in addressable market for 2025, with company outgrowing the market.