On May 29, United Microelectronics (UMC) rose 3.04% overnight, trading at $22.96/share, with trading volume of approximately $796,600.
The stock continued its upward trajectory driven by multiple catalysts. At its recent annual shareholders meeting, CFO Chitung Liu confirmed that UMC will implement selective price increases in the second half of this year due to elevated costs associated with its Singapore fab expansion, with broader price negotiations planned for 2027. Reports indicate the initial hike could be approximately 10%, potentially effective as early as July. This follows the broader industry trend, as TSMC also announced up to 15% price increases on 3nm processes.
Fundamentally, UMC reported Q1 net profit surging 108% year-over-year to NT$16.17 billion, significantly exceeding expectations. Gross margin reached 29.2% with capacity utilization climbing to 79%. Q1 average selling prices rose 8% YoY, with Q2 ASPs expected to increase another 5-7%. Additionally, the company invested approximately NT$1.03 billion in Tokyo Electron equipment to support ongoing capacity expansion, reinforcing market confidence in its growth trajectory.
(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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