United Microelectronics Board OKs $3.2 Billion Capex for Capacity Expansion; Shares Down 9%

MT Newswires Live10-29 10:31

United Microelectronics (TPE:2303) has received board approval for $3.2 billion in capital expenditure to be used for ​capacity expansion, according to a Wednesday statement by the chipmaker.

The company's shares were down nearly 9% in Thursday's morning trade.

While the company did not specify the timeline for the capex to be spent, the approved amount is double the $1.6 billion capex spent in 2025. For the current year, planned capex is $2.0 billion, and third-quarter spending was $373 million.

The company said in the longer run, its dual-track expansion plan in Singapore and Tainan will be crucial to its capacity growth. The approved capex plan will enable United Microelectronics to accelerate the expansion schedule, for which it is in discussions with customers on their product roadmaps and requirements.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment