United Microelectronics (UMC) experienced a significant pre-market surge of 5.46%, reflecting strong investor optimism toward the semiconductor foundry.
The movement is primarily driven by the company's announcement of selective price increases for the second half of the year, targeting new capacity, processes, and orders. This strategic move is further supported by exceptionally strong first-quarter financial results, where UMC reported a 108% year-over-year surge in net profit, significantly exceeding market expectations. Gross margins reached 29.2% with capacity utilization climbing, while average selling prices rose in the first quarter and are projected to increase further in the current quarter.
Additional positive factors underpinning the bullish sentiment include the company's key fabrication facilities operating near full capacity and ongoing capacity expansion initiatives, as highlighted by recent equipment acquisitions. These developments signal UMC's robust growth trajectory within the competitive semiconductor market.
Comments