Movement Alert|UMC Rises 3.58% in Pre-Market Trading, Singapore Silicon Photonics Wafer Mass Production Launched as Citi Sees Strong H2 Outlook

Market Focus07-14 20:31

On July 14, UMC rose 3.58% in pre-market trading, trading at $24.45/share, with turnover of $3.26 million. The stock rebounded from prior sessions of sector-driven weakness on multiple positive catalysts.

On the news front, UMC announced that its Singapore fab has completed mass production of its first batch of silicon photonics wafers. In partnership with Singapore-based fabless chip design firm Silith Technology, the joint team took only 18 months to advance the silicon photonic chip platform from development to production-ready status, targeting next-generation AI infrastructure high-speed interconnect demand. UMC Senior Vice President G.C. Hung stated that silicon photonics and co-packaged optics will drive growth over the coming years, with the company shifting production to 12-inch wafers. UMC plans to open its proprietary 12-inch silicon photonics platform to customers by 2027, with IMEC assisting in developing a broader manufacturing platform.

Additionally, Citi analysts expressed optimism on UMC's second-half prospects, forecasting Q2 sales to grow 13% sequentially with gross margin recovery. Fundamentally, UMC's Q2 revenue rose nearly 17% YoY to a 15-quarter high, with June revenue up 23% YoY. The next earnings report is scheduled for July 29.

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