UNITED MICROELECTRONICS CORP (UMC): Financial results for Q3 2026
UNITED MICROELECTRONICS CORP (UMC) furnished an SEC Form 6-K — earnings release. www.umc.com Exhibit Exhibit Description 99.1 Announcement on 2026/10/28: Announcement of board meeting approved the consolidated financial statements for the third quarter of 2026 99.2 Announcement on 2026/10/28: The board meeting approved capital budget execution 99.3 Announceme
How this was made
The 30-second read
Why it matters
The earnings beat and stable guidance suggest continued demand for its specialty technologies, supporting the stock in the near term.
Market read
UMC's earnings and guidance are material for investors tracking the semiconductor manufacturing sector.
What to watch
Capital expenditure of $2.0B may strain cash flow if demand growth stalls.
Q3 operating income increased 24.7% QoQ as capacity utilization hit 92%; 22nm contribution reached a record high, accounting for 18.3% of Q3 wafer sales.
Third-quarter revenue increased 8.0% sequentially and 25.6% year over year, wafer shipments increased 7.3% sequentially to more than 1.2 million 12-inch equivalent wafers, utilization reached 92%, and fourth-quarter guidance calls for further shipment growth and low-90% utilization.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 consolidated revenueother | NT$74.24B | 8.0% | 25.6% |
| Q3 2026 consolidated revenueother | $2.32B | – | – |
| Q3 2026 gross marginother | 34.0% | – | – |
| Q3 2026 operating marginother | 25.1% | – | – |
| Q3 2026 operating incomeother | +24.7% QoQ | +24.7% QoQ | – |
| Q3 2026 net income attributable to shareholders of the parentother | NT$16.43B | – | – |
| Q3 2026 net income attributable to shareholders of the parentother | $514M | – | – |
| Q3 2026 earnings per ordinary shareother | NT$1.32 | – | – |
| Q3 2026 earnings per ADSother | US$0.206 | – | – |
| Q3 2026 wafer shipmentsother | more than 1.2 million 12-inch equivalent wafers | 7.3% | – |
| Q3 2026 capacity utilization rateother | 92% | – | – |
| Q3 2026 revenue from 22/28nmother | 35% | – | – |
| Q3 2026 22nm revenue contribution to wafer salesother | 18.3% | – | – |
| 2026/01/01~2026/09/30 operating revenue accumulated from 1/1 to end of the periodother | 204,009,681 thousand NTD | – | – |
| 2026/01/01~2026/09/30 gross profit from operations accumulated from 1/1 to end of the periodother | 65,345,803 thousand NTD | – | – |
| 2026/01/01~2026/09/30 net operating income accumulated from 1/1 to end of the periodother | 44,868,934 thousand NTD | – | – |
| 2026/01/01~2026/09/30 profit before tax accumulated from 1/1 to end of the periodother | 81,740,885 thousand NTD | – | – |
| 2026/01/01~2026/09/30 profit accumulated from 1/1 to end of the periodother | 74,729,928 thousand NTD | – | – |
| 2026/01/01~2026/09/30 profit during the period attributable to owners of parent accumulated from 1/1 to end of the periodother | 74,865,383 thousand NTD | – | – |
| 2026/01/01~2026/09/30 basic earnings per share accumulated from 1/1 to end of the periodother | 6.00 NTD | – | – |
Fourth Quarter 2026 outlook
- Gross marginComparable to the preceding quarter
- NoteWafer Shipments: Will increase by low-single digit
- NoteASP in USD: Will remain firm
- NoteCapacity Utilization: Low-90% range
- Note2026 CAPEX: US$2.0 billion
What drove it
- Healthy demand across all market segments drove wafer-shipment growth.
- Several 12-inch fabs operated at full capacity, while 8-inch operations saw a strong recovery.
- 22/28nm revenue was 35% of Q3 revenue, and 22nm revenue accounted for 18.3% of wafer sales.
- Customers continued new product tape-outs in display driver, automotive radar, and Wi-Fi ICs.
- The company cited active customer engagement for advanced packaging and silicon photonics and expects existing-project ramps and new product tape-outs to support growth.
Concerns
- Fourth-quarter gross profit margin is guided only as comparable to the preceding quarter, rather than an increase.
- The company is converting some existing capacity to address near-term unfulfilled demand.
- The release provides no fourth-quarter revenue, operating-expense, or tax-rate guidance.
- The filing states both 2026 CAPEX of US$2.0 billion and an additional capital expenditure budget of approximately US$3.2 billion without reconciling the two figures.
What to watch
- Whether wafer shipments increase by low-single digit in the fourth quarter.
- Whether ASP in USD remains firm and gross profit margin is comparable to the preceding quarter.
- Whether capacity utilization remains in the low-90% range.
- The ramp of advanced packaging and silicon photonics businesses and the conversion of existing capacity.
- Execution of the dual track expansion plan in Singapore and Tainan.
Balance sheet and cash flow
- Total assets end of the period: 675,785,677 thousand NTD
- Total liabilities end of the period: 204,905,665 thousand NTD
- Equity attributable to owners of parent end of the period: 470,916,768 thousand NTD
- Projected monetary amount of the investment for capital budget execution: NT$ 102,781 million
- Source of capital funds for capital budget execution: working capital
- Board-approved additional capital expenditure budget: approximately US$3.2 billion
- Amount of capital reduction: NT$5,734,190
- Cancelled shares: 573,419 shares
- Capital reduction percentage: 0.0046%
- Share capital after capital reduction: NT$ 125,695,204,800
Analysis
UMC reported third-quarter consolidated revenue of NT$74.24 billion, increasing 8.0% from NT$68.73 billion in 2Q26 and 25.6% from a year ago. Gross margin was 34.0% and operating margin was 25.1%. Operating income increased 24.7% QoQ. Net income attributable to shareholders of the parent was NT$16.43 billion, while earnings per ordinary share were NT$1.32 and earnings per ADS were US$0.206.
Demand and factory loading were the principal reported drivers. Wafer shipments increased 7.3% sequentially to more than 1.2 million 12-inch equivalent wafers, described as a record high, and capacity utilization reached 92%. Several 12-inch fabs operated at full capacity and 8-inch operations experienced a strong recovery. Revenue from 22/28nm was 35%, while 22nm revenue reached a record and accounted for 18.3% of Q3 wafer sales.
For the 2026/01/01~2026/09/30 period, operating revenue accumulated from 1/1 to end of the period was 204,009,681 thousand NTD. Gross profit from operations was 65,345,803 thousand NTD, net operating income was 44,868,934 thousand NTD, and profit during the period attributable to owners of parent was 74,865,383 thousand NTD. End-period total assets were 675,785,677 thousand NTD, total liabilities were 204,905,665 thousand NTD, and equity attributable to owners of parent was 470,916,768 thousand NTD.
Fourth-quarter guidance calls for wafer shipments to increase by low-single digit, USD ASP to remain firm, gross profit margin to be comparable to the preceding quarter, and capacity utilization in the low-90% range. Management expects specialty-technologies revenue to continue growing sequentially, including from advanced packaging and silicon photonics. The company also said it is converting some existing capacity to address near-term unfulfilled demand.
Capital deployment is a central focus. The board approved capital budget execution with a projected monetary amount of NT$ 102,781 million for capacity deployment, funded by working capital. Management also announced an additional capital expenditure budget of approximately US$3.2 billion, while the outlook lists 2026 CAPEX of US$2.0 billion. The release does not provide a reconciliation between these capital-spending figures.
Management, verbatim
In the third quarter, we saw healthy demand across all market segments, driving a 7.3% growth in wafer shipments to more than 1.2 million 12-inch equivalent wafers, a record high.
Jason Wang, CEO of UMC
Looking ahead to the fourth quarter, we expect the positive demand momentum to sustain, supporting stable shipments and utilization rate.
Jason Wang, CEO of UMC
We are pleased to announce our Board of Directors today approved an additional capital expenditure budget of approximately US$3.2 billion, which will enable us to accelerate our expansion schedule as we continue to align with customers on their product roadmaps and requirements.
Jason Wang, CEO of UMC
Not in the filing
stated, not guessed- Accounting framework explicitly stated in the filing
- Q3 2026 gross profit amount
- Q3 2026 operating income amount
- Q3 2026 consolidated net income amount
- Q3 2026 total operating expenses
- Q3 2026 tax rate
- Prior-year and prior-quarter gross margin
- Prior-year and prior-quarter operating margin
- Prior-year and prior-quarter net income attributable to shareholders of the parent
- Prior-year and prior-quarter earnings per ordinary share
- Operating cash flow
- Free cash flow
- Cash and cash equivalents
- Debt
- Dividend declaration or payment
- Share repurchases
- Revenue by reportable segment
- Prior outlook for comparison
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
UMC is a leading global semiconductor foundry listed on NYSE, reporting its Q3 2026 results via a Form 6‑K filing.
Ticker impact
UMC reported Q3 2026 revenue of $2.32B, net income $514M and issued guidance for Q4, marking a fresh earnings disclosure.
likely support as investors price in strong earnings and stable outlook
The earnings release provides new financial metrics and forward guidance, which are material for a mid‑cap semiconductor foundry.
Market effects
Positive earnings may lift broader semiconductor foundry sector, especially peers focused on 22/28nm technology.
Reinforces Taiwan's semiconductor export momentum.
Adds to global chip supply confidence amid ongoing capacity constraints.
Counterpoint
If macro demand softens, the capacity expansion could lead to over‑supply and pressure on margins.
Key entities
- ExecutiveJason Wang
CEO of UMC who provided the earnings commentary.
