United Microelectronics (UMC) Q3 FY2025 Earnings Call Transcript

Date: October 29, 2025 | Source: GuruFocus / Yahoo Finance / Seeking Alpha (real transcript; full verbatim behind paywall — compiled)

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NOTE:The full verbatim UMC Q3 2025 earnings-call transcript is behind paywalls (Seeking Alpha / GuruFocus / Yahoo Finance). Per repo convention (cf. TSM 2026-04-16), this file compiles the verbatim opening remarks plus a structured, content-accurate summary of the call drawn from transcript-derived sources (GuruFocus / Yahoo Finance / Seeking Alpha, October 29, 2025).

Verbatim Opening Remarks:

Operator (Conference Moderator, UMC): Welcome, everyone, to UMC's 2025 third quarter earnings conference call. All lines have been placed on mute to prevent background noise. After the presentation, there will be a question-and-answer session. Please follow the instructions given at the time if you would like to ask a question. For your information, this conference call is now being broadcast live over the Internet. Webcast replay will be available within two hours after the conference has finished. Please visit our website, www.umc.com, under the Investor Relations, Investors, Events section. Now, I would like to introduce Mr. Michael Lin, Head of Investor Relations at UMC. Mr. Lin, please begin.

Michael Lin (Head of Investor Relations, UMC): Thank you, and welcome to UMC's conference call for the third quarter of 2025. I'm joined by Mr. Jason Wang, President of UMC; and Mr. Chitung Liu, the CFO of UMC. In a moment, we will hear our CFO present the third quarter financial results, followed by our President's key message to address UMC's focus and fourth quarter 2025 guidance. Once our President and CFO complete their remarks, there will be a Q&A session. UMC's quarterly financial reports are available at our website, www.umc.com, under the Investors, Financial section. During this conference, we may make forward-looking statements based on management's current expectations and beliefs. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially, including the risks that may be beyond the company's control. For a more detailed description of these risks and uncertainties, please refer to our recent and subsequent filings with the SEC and the ROC securities authorities. During this conference, you may view our financial presentation material, which is being broadcast live through the Internet. Now, I would like to introduce UMC's CFO, Mr. Chitung Liu, to discuss UMC's third quarter 2025 financial results.

Structured Call Summary (from transcript-derived sources)

Financial Results (Q3 2025, per Chitung Liu / CFO)

• Consolidated revenue: TWD 59.13 billion (NT$59.1B; 9M25 revenue TWD 175.7B, +2.2% YoY)
• Gross margin: 29.8%
• Net income attributable to stockholders of the parent: TWD 14.98 billion
• Earnings per ordinary share: TWD 1.2 (US$0.19 per ADS — beat of $0.08 vs consensus); revenue $1.93B beat by $39.34M
• Capacity utilization: 78%
• Wafer shipments: ~1.0 million 12-inch-equivalent wafers
• Cash position: above TWD 100 billion at end of Q3 2025
• Total equity: TWD 361 billion at end of Q3 2025
• Revenue by region: North America ~25%, Asia ~63%
• Technology mix: 22nm and 28nm accounted for ~35% of total revenue; 22nm continues to be the key growth driver
• 2025 CapEx budget: US$1.8 billion (90% for 12-inch, 10% for 8-inch)

Key Messages & Guidance (per Jason Wang, President)

• Q3 results were driven by higher wafer shipments; the 22nm platform continues to differentiate UMC and contributed meaningfully to revenue.
• Q4 2025 guidance: wafer shipments roughly flat quarter-over-quarter, with firm ASP; gross margin expected in the high-20% range; capacity utilization in the mid-70% range.
• For 2025: shipment growth expected in the low teens; for 2026, UMC anticipates continued growth momentum, particularly in 22nm/28nm with double-digit year-over-year growth, supported by differentiated specialty technologies and geographic expansion.
• Technology/strategy: 25nm BCD platform ready for automotive and industrial applications; developing 2.5D interposer and wafer-to-wafer stacking for AI/HPC/PC/smartphone power-efficiency requirements (no current plan to expand advanced-packaging capacity, but significant customer interest).
• Geopolitics: cautious on potential tariff impacts; UMC's geo-diversified manufacturing (including capacity buildup in Singapore and the US) is designed to support customers across regions and mitigate risk.
• FX: the NT dollar exchange rate was an unfavorable factor, impacting revenue by ~3%.
• Gross margin: constrained to the high-20% range by rising depreciation, utilization, ASP, product mix, and FX; 2025 ASP performance has remained firm and is expected to remain stable in Q4 2025, with more detail on 2026 ASP to be provided on the January 2026 conference call.

Questions & Answers (selected, real)

• Q (End-market trends into Q4 and 1H26): A (Jason Wang): Expect wafer shipment growth in the low teens for 2025, driven by differentiated 22nm technology and specialty offerings; for 2026, continued growth momentum, especially 22nm/28nm with double-digit YoY growth.
• Q (Why gross margin doesn't improve despite favorable conditions): A (Chitung Liu): Gross margin depends on utilization, ASP, product mix, depreciation and FX; depreciation expenses are increasing, keeping GM in the high-20% range.
• Q (Impact of tariffs/geopolitics): A (Jason Wang): UMC remains cautious; focused on technology differentiation and manufacturing excellence; geo-diversified sites (Singapore, US) support customers across regions.
• Q (2026 pricing/ASP outlook): A (Jason Wang): 2025 ASP has been firm and is expected to remain stable in Q4; more detail on 2026 ASP will be provided at the January 2026 call.
• Q (Advanced packaging / interposer & wafer-to-wafer): A (Jason Wang): Developing 2.5D interposer and wafer-to-wafer stacking to address AI/HPC/PC/smartphone power efficiency; significant customer interest but no current capacity-expansion plan.

*Compiled from GuruFocus / Yahoo Finance earnings-call highlights and Seeking Alpha transcript data (Oct 29, 2025). ADR closed -3.2% on the print day ($7.39) before recovering +1.9% and +2.4% over the next two sessions.*