UMC Reports Record Wafer Shipments and Announces Accelerated Capital Expansion for AI Infrastructure
United Microelectronics Corporation (UMC) reported strong third-quarter 2026 results, highlighted by record wafer shipments of 1.2 million 12-inch-equivalent wafers and an 8% sequential revenue growth to TWD 74.24 billion. Gross margins improved to 34.0% due to increased fab utilization, which reached 92%. The company is pivoting toward high-growth sectors, projecting that AI-driven applications will exceed 25% of total revenue by 2029. To meet rising demand for advanced packaging and silicon photonics, UMC's board approved an additional $3.2 billion in capital expenditure beyond its existing $2 billion budget. While management noted soft demand in certain computer and Wi-Fi segments, they provided optimistic pricing guidance for 2027, forecasting a 10% year-over-year increase in blended average selling prices (ASP), marking a shift away from historical price erosion.
Tickers: $UMC
Topics: AI Revenue Projection Capacity Utilization Capital Expenditure Gross Margin Improvement Revenue Growth Wafer Shipments