United Microelectronics Announces $3.2 Billion CapEx Increase and AI Revenue Growth Projections
During its third-quarter 2026 earnings call, United Microelectronics (UMC) announced a significant $3.2 billion increase in capital expenditure to accelerate facility expansions in Singapore and Taiwan. This investment is driven by faster-than-expected progress in silicon photonics and advanced packaging technologies. The company aims to meet rising customer demand for specialized semiconductor nodes. Management expects a strategic shift in 2027, moving from price erosion toward a 10% year-over-year increase in blended average selling prices (ASP). Furthermore, UMC projects that artificial intelligence-related revenue will grow from its current $300 million base to exceed 25% of total sales within the next three years. While factory utilization remains high at 92%, the company noted potential margin pressures due to rising depreciation and raw material costs.
Tickers: $UMC
Topics: Artificial Intelligence Capital Expenditure Revenue Guidance Semiconductors