UMC: Q1 EPS NT$0.62, Cautiously Optimistic on Q2 Despite Tariff Concerns
26 April 2025 路 Uncategorized 路
Source: 路 https://finance.technews.tw/2025/04/23/umcs-first-quarter-eps-reached-nt0-62/
United Microelectronics Corporation (UMC) held its 2025 Q1 earnings conference on March 23 and announced its operational performance results. The company鈥檚 consolidated revenue for the first quarter totaled NT$578.6 billion, a 4.2% decrease from NT$603.9 billion in the previous quarter, but a 5.9% increase year-over-year. For Q1 2025, UMC reported a gross margin of 26.7%, with net income attributable to parent company shareholders reaching NT$77.8 billion, resulting in an earnings per share (EPS) of NT$0.62.
Co-CEO Wang Shi stated that the first quarter鈥檚 performance aligned with expectations, citing flat wafer shipments and one-time price adjustments reflective of current market conditions. Key highlights included record revenue from 22/28nm process technology, which accounted for 37% of total revenue. Specifically, Q1 2025 saw a 46% increase in 22nm revenue, driven by applications in OLED display drivers, image signal processors (ISPs), digital TV, WiFi, and audio codecs. With customers accelerating their transition to 22nm logic and specialty process platforms to support next-generation products, UMC anticipates further product introductions on this node in the coming quarters.
In March 2025, the third phase of fabrication facilities (P3) in Singapore was officially launched, adding new 22nm production capacity to support future growth. The plant has entered a trial production stage and is expected to commence full-scale mass production by early 2026. This expansion will further diversify UMC鈥檚 geographical footprint, assisting clients in strengthening their supply chain resilience.
In February 2025, the board approved a cash dividend distribution of NT$2.85 per share, pending approval at the upcoming annual shareholders' meeting. Wang Shi indicated that a moderate recovery is anticipated for Q2, based on confirmed market demand from customers across all product applications. However, UMC remains cautious regarding predicting wafer demand trends due to ongoing tariff impacts and uncertainties in both market conditions and policies.
Wang emphasized the company's focus on executing critical technology projects to strengthen its competitive edge, including collaborating with American partners on 12nm technology initiatives to diversify manufacturing base options. Additionally, UMC continues to implement cost reduction programs and accelerate the integration of artificial intelligence (AI) in smart manufacturing systems to enhance operational efficiency. Through these core strategies, confidence remains high that future financial and operational resilience will be sustained.
Furthermore, Wang noted that during Q1, UMC received exceptional ratings in two significant sustainability evaluations. In the 2025 Sustainability Yearbook published by S&P Global, UMC is recognized as the only semiconductor company globally achieving top 1% scores based on Corporate Sustainability Assessment (CSA) metrics. Additionally, among semiconductor firms evaluated by CDP, UMC is the sole entity to earn an A rating in both climate change and water security categories.
(Lead image source: Official website)
Co-CEO Wang Shi stated that the first quarter鈥檚 performance aligned with expectations, citing flat wafer shipments and one-time price adjustments reflective of current market conditions. Key highlights included record revenue from 22/28nm process technology, which accounted for 37% of total revenue. Specifically, Q1 2025 saw a 46% increase in 22nm revenue, driven by applications in OLED display drivers, image signal processors (ISPs), digital TV, WiFi, and audio codecs. With customers accelerating their transition to 22nm logic and specialty process platforms to support next-generation products, UMC anticipates further product introductions on this node in the coming quarters.
In March 2025, the third phase of fabrication facilities (P3) in Singapore was officially launched, adding new 22nm production capacity to support future growth. The plant has entered a trial production stage and is expected to commence full-scale mass production by early 2026. This expansion will further diversify UMC鈥檚 geographical footprint, assisting clients in strengthening their supply chain resilience.
In February 2025, the board approved a cash dividend distribution of NT$2.85 per share, pending approval at the upcoming annual shareholders' meeting. Wang Shi indicated that a moderate recovery is anticipated for Q2, based on confirmed market demand from customers across all product applications. However, UMC remains cautious regarding predicting wafer demand trends due to ongoing tariff impacts and uncertainties in both market conditions and policies.
Wang emphasized the company's focus on executing critical technology projects to strengthen its competitive edge, including collaborating with American partners on 12nm technology initiatives to diversify manufacturing base options. Additionally, UMC continues to implement cost reduction programs and accelerate the integration of artificial intelligence (AI) in smart manufacturing systems to enhance operational efficiency. Through these core strategies, confidence remains high that future financial and operational resilience will be sustained.
Furthermore, Wang noted that during Q1, UMC received exceptional ratings in two significant sustainability evaluations. In the 2025 Sustainability Yearbook published by S&P Global, UMC is recognized as the only semiconductor company globally achieving top 1% scores based on Corporate Sustainability Assessment (CSA) metrics. Additionally, among semiconductor firms evaluated by CDP, UMC is the sole entity to earn an A rating in both climate change and water security categories.
(Lead image source: Official website)