UMC Net Income Doubles on Tech Demand, US Fab with Intel Looms

TAIPEI, Taiwan – April 29, 2026 – United Microelectronics Corporation (UMC) today announced stellar first-quarter financial results that saw its net income more than double from the previous year, signaling robust health and strategic momentum despite a complex global economic landscape. The world’s third-largest contract chipmaker reported a net profit of NT$16.17 billion (US$511 million), a staggering 107.9% increase year-over-year, a performance that surpassed analyst expectations and sent its stock surging in pre-market trading.

While consolidated revenue saw a slight sequential dip of 1.2% to NT$61.04 billion, it represented a healthy 5.5% increase compared to the same quarter last year. The company’s ability to maintain a firm gross margin of 29.2% and grow wafer shipments by 2.7% quarter-on-quarter underscores resilient demand and effective operational management. The strong results were bolstered by a surge in demand from the consumer electronics segment and continued strength in its specialty process technologies.

CEO Jason Wang commented on the quarter's success, stating, “In the first quarter, our wafer shipments increased 2.7% quarter-on-quarter on strong growth in the consumer segment, lifting overall utilization rate to 79%. Despite a decline in blended average selling price during the quarter, which partly reflected higher 8-inch wafer shipments, gross margin held firm at 29.2%.”

Advanced Technology Investments Yield Rich Dividends

A significant driver of UMC's strong performance is the accelerating adoption of its advanced and specialty process nodes. The company's 22nm platform was a standout, with revenue from the technology reaching another record high and now accounting for 14% of total first-quarter revenue. This platform is proving critical for a wide range of modern electronics.

“Demand for our 22nm logic and specialty processes continues to gain momentum,” Wang noted. “By the end of this year, over 50 customers will have completed tape-outs on our 22nm platforms for a diverse range of applications, including display driver ICs, networking chips, and microcontrollers.”

Looking further ahead, UMC is making substantial moves to secure its future in an increasingly competitive and geopolitically sensitive industry. The company highlighted its strategic collaboration with Intel to develop and manufacture a 12nm FinFET process. This long-term agreement will utilize Intel’s existing fabrication facilities in Chandler, Arizona, with production slated to begin in 2027. This partnership is a crucial step for UMC, providing its global customers with a U.S.-based manufacturing option and helping to build a more geographically diversified and resilient supply chain. The collaboration aims to serve high-growth markets such as mobile communications and networking.

Wang emphasized the strategic importance of these moves: “We continue to invest in next-generation technologies – beyond 22nm, our 12nm collaboration with Intel will provide customers with technology continuity as well as a U.S.-based manufacturing option.”

Pioneering AI Photonics and Strategic Partnerships

Beyond its core silicon logic business, UMC is venturing into cutting-edge technologies that will power the next wave of computing. The company recently announced a key strategic partnership to deploy Thin-Film Lithium Niobate (TFLN) photonics, a technology critical for building high-performance, energy-efficient AI infrastructure.

TFLN is an advanced optical material that offers ultra-high bandwidth and low power consumption, surpassing the capabilities of traditional silicon photonics. This makes it ideal for the demanding optical interconnects required in the massive data centers that train and run AI models. UMC, through its subsidiary Wavetek and in collaboration with innovators like HyperLight and manufacturing giant Jabil, is building an ecosystem to bring this technology to market at scale. This positions UMC at the forefront of the hardware revolution needed to sustain the explosive growth of artificial intelligence.

“UMC also recently announced important developments in emerging businesses, including a strategic partnership to deploy thin-film lithium niobate (TFLN) photonics for AI infrastructure,” Wang added, signaling the company's ambition to capture new, high-value markets.

A Leader in Sustainable Manufacturing

Amid its pursuit of technological and financial growth, UMC has also solidified its reputation as an industry leader in corporate sustainability. The company was recently awarded the “Top 1%” highest ranking within the Semiconductor and Semiconductor Equipment sector in S&P Global’s prestigious 2026 Sustainability Yearbook, an honor bestowed upon only 848 of over 9,200 corporations evaluated.

Further burnishing its green credentials, UMC announced a Memorandum of Understanding (MoU) with client and partner Infineon to collaboratively drive the reduction of greenhouse gas emissions across their shared supply chain. This initiative targets the complex challenge of Scope 3 emissions, which originate from a company’s value chain. By working together, UMC and Infineon aim to accelerate decarbonization among their common suppliers, a critical step toward UMC’s goal of achieving net-zero emissions by 2050.

“UMC’s long-term commitment to corporate sustainability was once again recognized,” Wang said. “We are pleased to join forces with Infineon to accelerate decarbonization action among our common suppliers.”

Strong Outlook Despite Global Headwinds

Looking ahead to the second quarter, UMC provided an optimistic forecast, projecting wafer shipments to increase by a high-single-digit percentage and average selling prices to rise by a low-single-digit percentage. The company expects its gross profit margin to hover around 30% with a capacity utilization rate in the low-80% range.

This positive outlook is supported by an anticipated rebound in the communications sector and continued healthy demand across computer, consumer, and industrial markets. However, the company remains cautious, acknowledging significant global challenges.

CEO Jason Wang noted that “the current memory supply shortage and the ongoing conflict in the Middle East are creating certain headwinds and market volatility.” The memory shortage, driven by a massive surge in demand for High-Bandwidth Memory (HBM) for AI servers, is tightening supply across the electronics industry. Simultaneously, geopolitical instability threatens to disrupt logistics and the supply of critical manufacturing materials like helium and bromine. Despite these risks, UMC's strong Q1 performance and strategic initiatives show a company confidently navigating the evolving semiconductor landscape.