UMC reports Q2 EPS 12c, consensus 14c

Reports Q2 revenue $2.01B. Jason Wang, co-president of UMC (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.”