Stock Track | United Microelectronics Soars 5.14% Overnight on Price Hike Plans and Strong Q1 Earnings

Stock Track06-01 09:09

United Microelectronics Corporation (UMC) experienced a significant price increase of 5.14% during extended trading hours, reflecting continued investor optimism toward the semiconductor foundry.

The movement follows the company's announcement of selective price increases for the second half of the year, targeting new capacity, new processes, and new orders while maintaining existing long-term contracts. This strategic pricing decision is bolstered by exceptionally strong first-quarter financial results, where UMC reported a 108% year-over-year surge in net profit to NT$16.17 billion, far surpassing market expectations.

Further contributing to the positive sentiment are operational metrics showing robust performance, including gross margins reaching 29.2%, average selling prices rising 8% in Q1 with a projected 5%-7% increase in Q2, and key fabrication facilities operating near full capacity. The company's ongoing capacity expansion, highlighted by its acquisition of Tokyo Electron equipment, underscores its growth trajectory in the competitive semiconductor market.

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