UMC Reports Second Quarter 2025 Results
22/28nm business reaches record high, accounting for 40% of Q2 revenue
Second Quarter 2025 Overview1:
- Revenue: NT$58.76 billion (US$2.01 billion)
- Gross margin: 28.7%; Operating margin: 18.4%
- Revenue from 22/28nm: 40%
- Capacity utilization rate: 76%
- Net income attributable to shareholders of the parent: NT$8.90 billion (US$304 million)
- Earnings per share: NT$0.71; earnings per ADS: US$0.121
TAIPEI, Taiwan--(BUSINESS WIRE)-- United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the second quarter of 2025.
Second quarter consolidated revenue was NT$58.76 billion, increasing 1.6% from NT$57.86 billion in 1Q25. Compared to a year ago, 2Q25 revenue increased 3.4%. Consolidated gross margin for 2Q25 was 28.7%. Net income attributable to the shareholders of the parent was NT$8.90 billion, with earnings per ordinary share of NT$0.71.
Jason Wang, co-president of UMC, said, “In the second quarter, the utilization rate increased to 76%, as wafer shipments grew 6.2% QoQ, primarily driven by communications in imaging signal processors, NAND controllers, WiFi and LCD controllers. While we experienced an increase in the overall utilization and a growth of our 22/28nm portfolio, the unfavorable foreign exchange movement of the NT dollar capped our gross margin to 28.7% by nearly 3 percentage points. Revenue from our 22/28nm portfolio continued to grow sequentially, now accounting for 40% of total sales, a record high in both percentage and absolute dollar terms. Our industry-leading 22/28nm solutions continue to win adoption by customers, and we expect to see further market share gains in wireless communications over the coming quarters. We have always believed that, with the right differentiation, 22/28nm is a strong and long-lasting node with a robust product pipeline. In addition, the new Phase 3 facility at our Singapore Fab 12i, set to start production in 2026, will enable UMC to better serve customers seeking diversified manufacturing for enhanced supply chain resilience.”
Co-president Wang added, “Looking ahead to the third quarter, we expect a mild increase in wafer shipments. However, adverse foreign exchange movement will lead to a decline in NT dollar revenue. We are closely monitoring the near-term uncertainties and risks as the markets anticipate US tariff policies. To navigate macro and geopolitical headwinds, including foreign exchange risks, UMC will continue to actively manage our foreign exchange exposure and maintain financial flexibility to enhance our financial structure and business resilience.”
Co-president Wang said, “UMC was the recipient of two prestigious accolades at the 2025 Asia Responsible Enterprise Awards (AREA), organized by Enterprise Asia. Among the honors, UMC Co-President and Chief Sustainability Officer SC Chien received an award in the Responsible Business Leadership category, recognizing his leadership in advancing both business operations and sustainable development at UMC. In addition, UMC received the Corporate Sustainability Reporting Award for the company’s longstanding commitment to transparency and integrity in ESG disclosures.”
Summary of Operating Results
Operating Results |
||||||||||
(Amount: NT$ million) |
2Q25 |
1Q25 |
QoQ % change |
2Q24 |
YoY % change |
|||||
Operating Revenues |
58,758 |
|
57,859 |
|
1.6 |
|
56,799 |
|
3.4 |
|
Gross Profit |
16,878 |
|
15,447 |
|
9.3 |
|
19,983 |
|
(15.5 |
) |
Operating Expenses |
(6,467 |
) |
(6,123 |
) |
5.6 |
|
(6,311 |
) |
2.5 |
|
Net Other Operating Income and Expenses |
409 |
|
462 |
|
(11.5 |
) |
219 |
|
86.6 |
|
Operating Income |
10,820 |
|
9,786 |
|
10.6 |
|
13,891 |
|
(22.1 |
) |
Net Non-Operating Income and Expenses |
(666 |
) |
(439 |
) |
51.5 |
|
2,529 |
|
- |
|
Net Income Attributable to Shareholders of the Parent |
8,903 |
|
7,777 |
|
14.5 |
|
13,786 |
|
(35.4 |
) |
EPS (NT$ per share) |
0.71 |
|
0.62 |
|
|
1.11 |
|
|
||
EPS (US$ per ADS) |
0.121 |
|
0.093 |
|
|
0.171 |
|
|
||
Exchange rate (USD/NTD) |
29.28 |
|
33.18 |
|
|
32.43 |
|
|
||
Note：Sums may not equal totals due to rounding. |
||||||||||
Second quarter operating revenues grew 1.6% sequentially to NT$58.76 billion. Revenue contribution from 40nm and below technologies represented 55% of wafer revenue. Gross profit increased 9.3% QoQ to NT$16.88 billion, or 28.7% of revenue. Operating expenses increased 5.6% to NT$6.47 billion. Net other operating income decreased 11.5% to NT$0.41 billion. Net non-operating expenses totaled NT$0.67 billion. Net income attributable to shareholders of the parent amounted to NT$8.90 billion.
Earnings per ordinary share for the quarter was NT$0.71. Earnings per ADS was US$0.121. The basic weighted average number of shares outstanding in 2Q25 was 12,484,877,493, compared with 12,484,780,989 shares in 1Q25 and 12,414,189,313 shares in 2Q24. The diluted weighted average number of shares outstanding was 12,534,082,055 in 2Q25, compared with 12,579,207,466 shares in 1Q25 and 12,529,942,186 shares in 2Q24. The fully diluted shares counted on June 30, 2025 were approximately 12,534,367,000.
Detailed Financials Section
Operating revenues increased to NT$58.76 billion. COGS decreased 1.3% QoQ to NT$41.88 billion. Gross profit increased 9.3% to NT$16.88 billion. Operating expenses grew 5.6% QoQ to NT$6.47 billion, as G&A increased 9.1% to NT$1.68 billion, R&D increased 5.8% to NT$4.19 billion, while Sales & Marketing decreased 4.5% to NT$0.59 billion. Net other operating income was NT$0.41 billion. In 2Q25, operating income increased 10.6% QoQ to NT$10.82 billion.
COGS & Expenses |
||||||||||
(Amount: NT$ million) |
2Q25 |
1Q25 |
QoQ % change |
2Q24 |
YoY % change |
|||||
Operating Revenues |
58,758 |
|
57,859 |
|
1.6 |
|
56,799 |
|
3.4 |
|
COGS |
(41,880 |
) |
(42,412 |
) |
(1.3 |
) |
(36,816 |
) |
13.8 |
|
Depreciation |
(12,317 |
) |
(12,321 |
) |
(0.0 |
) |
(9,460 |
) |
30.2 |
|
Other Mfg. Costs |
(29,563 |
) |
(30,091 |
) |
(1.8 |
) |
(27,356 |
) |
8.1 |
|
Gross Profit |
16,878 |
|
15,447 |
|
9.3 |
|
19,983 |
|
(15.5 |
) |
Gross Margin (%) |
28.7 |
% |
26.7 |
% |
|
35.2 |
% |
|
||
Operating Expenses |
(6,467 |
) |
(6,123 |
) |
5.6 |
|
(6,311 |
) |
2.5 |
|
Sales & Marketing |
(591 |
) |
(619 |
) |
(4.5 |
) |
(678 |
) |
(12.8 |
) |
G&A |
(1,682 |
) |
(1,542 |
) |
9.1 |
|
(1,804 |
) |
(6.8 |
) |
R&D |
(4,194 |
) |
(3,964 |
) |
5.8 |
|
(3,853 |
) |
8.9 |
|
Expected Credit Impairment Gain (Loss) |
(0 |
) |
2 |
|
- |
|
24 |
|
- |
|
Net Other Operating Income & Expenses |
409 |
|
462 |
|
(11.5 |
) |
219 |
|
86.6 |
|
Operating Income |
10,820 |
|
9,786 |
|
10.6 |
|
13,891 |
|
(22.1 |
) |
Note：Sums may not equal totals due to rounding. |
||||||||||
Net non-operating expenses in 2Q25 was NT$0.67 billion, primarily reflecting the NT$1.28 billion in exchange loss, offset by the NT$0.33 billion in net investment gain, and the NT$0.31 billion in net interest income.
| Non-Operating Income and Expenses | ||||||
(Amount: NT$ million) |
2Q25 |
1Q25 |
2Q24 |
|||
Non-Operating Income and Expenses |
(666 |
) |
(439 |
) |
2,529 |
|
Net Interest Income and Expenses |
309 |
|
219 |
|
701 |
|
Net Investment Gain and Loss |
326 |
|
(769 |
) |
1,440 |
|
Exchange Gain and Loss |
(1,280 |
) |
115 |
|
407 |
|
Other Gain and Loss |
(20 |
) |
(5 |
) |
(19 |
) |
Note：Sums may not equal totals due to rounding. |
||||||
In 2Q25, cash inflow from operating activities was NT$22.10 billion. Cash outflow from investing activities totaled NT$9.44 billion, which included NT$8.37 billion in capital expenditures, resulting in free cash flow of NT$13.73 billion. Cash inflow from financing activities was NT$1.15 billion, primarily from NT$5.20 billion in bonds issued, offset by a NT$3.77 billion decreased in bank loans. Net cash flow in 2Q25 amounted to NT$5.64 billion. Over the next 12 months, the company expects to repay NT$3.72 billion in bank loans.
| Cash Flow Summary | ||||
(Amount: NT$ million) |
For the 3-Month Period Ended Jun. 30, 2025 |
For the 3-Month Period Ended Mar. 31, 2025 |
||
Cash Flow from Operating Activities |
22,098 |
|
23,826 |
|
Net income before tax |
10,154 |
|
9,347 |
|
Depreciation & Amortization |
14,506 |
|
14,128 |
|
Share of loss (profit) of associates and joint ventures |
(446 |
) |
208 |
|
Income tax paid |
(2,135 |
) |
(585 |
) |
Changes in working capital & others |
19 |
|
728 |
|
Cash Flow from Investing Activities |
(9,438 |
) |
(10,506 |
) |
Decrease (increase) in financial assets measured at amortized cost |
(1,397 |
) |
252 |
|
Acquisition of PP&E |
(7,543 |
) |
(14,153 |
) |
Acquisition of intangible assets |
(1,045 |
) |
(329 |
) |
Others |
547 |
|
3,724 |
|
Cash Flow from Financing Activities |
1,149 |
|
(13,776 |
) |
Bank loans |
(3,767 |
) |
(13,018 |
) |
Bonds issued |
5,200 |
|
- |
|
Others |
(284 |
) |
(758 |
) |
Effect of Exchange Rate |
(8,169 |
) |
1,810 |
|
Net Cash Flow |
5,640 |
|
1,354 |
|
Beginning balance |
106,354 |
|
105,000 |
|
Ending balance |
111,994 |
|
106,354 |
|
Note：Sums may not equal totals due to rounding. |
||||
Cash and cash equivalents increased to NT$111.99 billion. Days of inventory decreased 1 day to 76 days.
| Current Assets | |||
(Amount: NT$ billion) |
2Q25 |
1Q25 |
2Q24 |
Cash and Cash Equivalents |
111.99 |
106.35 |
121.23 |
Accounts Receivable |
32.38 |
34.80 |
32.53 |
Days Sales Outstanding |
52 |
54 |
51 |
Inventories, net |
34.02 |
35.43 |
36.33 |
Days of Inventory |
76 |
77 |
88 |
Total Current Assets |
195.18 |
192.32 |
207.22 |
Current liabilities increased to NT$110.39 billion due to dividends payable of NT$35.79 billion. Long-term credit/bonds decreased to NT$41.60 billion. Total liabilities increased to NT$211.10 billion, leading to a debt to equity ratio of 63%.
| Liabilities | ||||||
(Amount: NT$ billion) |
2Q25 |
1Q25 |
2Q24 |
|||
Total Current Liabilities |
110.39 |
|
72.87 |
|
124.97 |
|
Accounts Payable |
8.54 |
|
9.27 |
|
8.18 |
|
Short-Term Credit / Bonds |
21.30 |
|
17.63 |
|
16.21 |
|
Payables on Equipment |
8.35 |
|
8.46 |
|
22.36 |
|
Dividends Payable |
35.79 |
|
- |
|
37.59 |
|
Other |
36.41 |
|
37.51 |
|
40.63 |
|
Long-Term Credit / Bonds |
41.60 |
|
44.63 |
|
47.48 |
|
Total Liabilities |
211.10 |
|
182.13 |
|
230.87 |
|
Debt to Equity |
63 |
% |
47 |
% |
65 |
% |
Analysis of Revenue2
Revenue from Asia Pacific increased to 67%, while business from North America was 20% of sales. Business from Europe increased to 8%, while contribution from Japan was 5%.
Revenue Breakdown by Region |
||||||||||
Region |
2Q25 |
1Q25 |
4Q24 |
3Q24 |
2Q24 |
|||||
North America |
20 |
% |
22 |
% |
25 |
% |
26 |
% |
25 |
% |
Asia Pacific |
67 |
% |
66 |
% |
61 |
% |
65 |
% |
64 |
% |
Europe |
8 |
% |
7 |
% |
11 |
% |
5 |
% |
7 |
% |
Japan |
5 |
% |
5 |
% |
3 |
% |
4 |
% |
4 |
% |
Revenue contribution from 22/28nm increased to 40% of wafer revenue, while 40nm contribution slightly decreased to 15% of sales.
Revenue Breakdown by Geometry |
||||||||||
Geometry |
2Q25 |
1Q25 |
4Q24 |
3Q24 |
2Q24 |
|||||
14nm and below |
0 |
% |
0 |
% |
0 |
% |
0 |
% |
0 |
% |
14nm The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In This StoryUMC
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