On June 1, UMC rose 3.34% overnight, trading at $22.92/share, with trading volume of approximately $42,600. The stock continued its upward trajectory fueled by multiple catalysts including confirmed pricing power and exceptional quarterly results.
On the news front, UMC recently held its annual shareholders meeting where CFO Liu Qidong announced that the company will initiate selective price increases in the second half of this year, targeting new capacity, new processes, and new orders, while maintaining existing long-term contract terms unchanged. In 2027, the company plans to conduct more comprehensive pricing negotiations with customers to reflect technology upgrades, overseas expansion costs, and rising raw material expenses.
The momentum is further underpinned by UMC's Q1 results, which showed net profit surging 108% year-over-year to NT$16.17 billion, significantly exceeding market expectations. Gross margin reached 29.2%, with average selling prices rising 8% YoY in Q1 and projected to increase another 5%-7% in Q2. The company's 12-inch fabs in Singapore and Xiamen are operating near full capacity, while the 22nm node hit a record 14% revenue share. Additionally, UMC's NT$1.03 billion acquisition of Tokyo Electron equipment signals continued capacity expansion.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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