Taiwan's UMC posts higher Q4 revenue, profit on 22nm sales growth

Overview

• Taiwan semiconductor foundry's Q4 revenue rose 2.4% yr/yr, supported by 22/28nm business growth

• Earnings per share for Q4 were NT$0.81, with net income at NT$10.06 billion

• Company completed new Singapore facility, boosting capacity and technology investments

Outlook

• UMC expects firm wafer demand in Q1 2026

• Company anticipates growth from 22nm platforms and new solutions in 2026

• UMC sees advanced packaging and silicon photonics as growth catalysts

Result Drivers

• 22NM GROWTH - 22nm revenue increased 31% QoQ, reaching a record high and contributing over 13% to total Q4 revenue

• FAVORABLE FX - Revenue growth was aided by favorable foreign exchange movements

• INVESTMENTS AND PARTNERSHIPS - Strategic investments in new facilities and partnerships expected to support future growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "sell" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy."

• Wall Street's median 12-month price target for United Microelectronics Corp is $6.97, about 44.2% below its January 27 closing price of $12.48

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nBw953gLca

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)