Earnings release
Page 1
Page 1 of 12 UMC 3Q26 Contacts: Michael Lin / David Wong UMC, Investor Relations + 886-2-2658-9168, ext. 16900 jinhong_lin@umc.com david_wong@umc.com UMC Reports Third Quarter 2026 Results 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 2026 Overview1: • Revenue: NT$74.24 billion (US$2.32 billion) • Gross margin: 34.0%; Operating margin: 25.1% • Revenue from 22/28nm: 35% • Capacity utilization rate: 92% • Net income attributable to shareholders of the parent: NT$16.43 billion (US$514 million) • Earnings per share: NT$1.32; earnings per ADS: US$0.206 Taipei, Taiwan, ROC – October 28 , 2026 – United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the third quarter of 2026. Third quarter consolidated revenue was NT$74.24 billion, increasing 8.0% from NT$68.73 billion in 2Q26. Compared to a year ago, 3Q26 revenue increased 25.6%. Consolidated gross margin for 3Q26 was 34.0%. Net income attributable to the shareholders of the parent was NT$ 16.43 billion, with earnings per ordinary share of NT$1.32. Jason Wang, CEO of UMC, said, “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. Our overall fab utilization rate reached 92%, with several 1 2-inch fabs operating at full capacity while 8-inch operations also saw a strong recovery. By technology node, our 22/28nm business had another record -breaking quarter, with 22nm revenue now accounting for 18.3% of wafer sales as customers continue to tape out new products including display driver, 1 Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards B oard. They represent comparisons among the three -month period ending September 30, 2026, the three -month period ending June 30, 2026, and the equivalent three -month period that ended September 30, 2025. For all 3Q26 results, the U.S. dollar amounts have be en translated at the weighted - average exchange rate of NT$31.99 per U.S. dollar for the three-month period ended September 30, 2026.
Page 2
Page 2 of 12 UMC 3Q26 automotive radar, and Wi -Fi ICs. In new business areas, active customer engagement for advanced packaging and silicon photonics remain s robust. We expect these engagements to translate into accretive growth over the coming quarters as we ramp existing projects and support new product tape-outs.” CEO Wang added, “Looking ahead to the fourth quarter, we expect the positive demand momentum to sustain, supporting stable shipments and utilization rate. Revenue from our specialty technologies portfolio will continue to grow sequentially, driven in part by the ramp-up of our advanced packaging and silicon photonics businesses. We have seen a sig nificant increase in demand for these new business areas, and we are in the process of converting some existing capacity to address near-term unfulfilled demand. In the longer run, our dual track expansion plan in Singapore and Tainan will be crucial to ensure UMC’s capacity growth can keep pace with our customers’ needs. 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.” CEO Wang said, “In the third quarter, UMC received the honor of being named one of Asia’s top employers of choice in the HR Asia Best Companies to Work for in Asia Awards 2026. We are proud to win this award for the third time, recognizing the company’s ongoing effort to strengthen and expand our talent development programs, comprehensive employee benefits, and community engagement opportunities. Through these i nitiatives, we strive to create a more supportive workplace where our people can grow and thrive, while building a strong foundation for UMC’s long-term success.”
Page 3
Page 3 of 12 UMC 3Q26 Summary of Operating Results Third quarter operating revenues increased 8.0% sequentially to NT$74.24 billion. Revenue contribution from 40nm and below technologies represented 51% of wafer revenue. Gross profit increased 12.9% QoQ to NT$25.21 billion, or 34 .0% of revenue. Operating expenses decreased 8.0% to NT$7.27 billion. Net other operating income increased 33.2% to NT$0.71 billion. Net non- operating income totaled NT$1.27 billion. Net income attributable to shareholders of the parent amounted to NT$16.43 billion. Earnings per ordinary share for the quarter was NT$1.32. Earnings per ADS was US$0.206. The basic weighted average nu mber of shares outstanding in 3Q26 was 12,460,655,358, compared with 12,475,080,302 shares in 2Q26 and 12,485,162,809 shares in 3Q25. The diluted weighted average number of shares outstanding was 12,600,931,529 in 3Q26, compared with 12,541,653,000 shares in 2Q26 and 12,556,345,829 shares in 3Q25. The fully diluted shares counted on September 30, 2026 were approximately 12,600,932,000. Operating Results (Amount: NT$ million) 3Q26 2Q26 QoQ % change 3Q25 YoY % change Operating Revenues 74,239 68,733 8.0 59,127 25.6 Gross Profit 25,205 22,323 12.9 17,623 43.0 Operating Expenses (7,272) (7,906) (8.0) (6,973) 4.3 Net Other Operating Income and Expenses 710 533 33.2 467 51.8 Operating Income 18,643 14,950 24.7 11,118 67.7 Net Non-Operating Income and Expenses 1,268 30,236 (95.8) 3,526 (64.0) Net Income Attributable to Shareholders of the Parent 16,434 42,260 (61.1) 14,982 9.7 EPS (NT$ per share) 1.32 3.39 1.20 EPS (US$ per ADS) 0.206 0.537 0.197 Exchange rate (USD/NTD) 31.99 31.59 30.47 Note：Sums may not equal totals due to rounding.
Page 4
Page 4 of 12 UMC 3Q26 Detailed Financials Section Operating revenues increased to NT$74.24 billion. COGS increased 5.7% QoQ to NT$49.04 billion. Gross profit increased 12.9% QoQ to NT$25.21 billion. Operating expenses decreased 8.0% QoQ to NT$7.27 billion, as G&A decreased 16.2% to NT$2.03 billion, R&D decreased 4.7% to NT$4.52 billion and Sales & Marketing decreased 2.5% to NT$0.71 billion. Net other operating income was NT$0.71 billion. In 3Q26, operating income increased 24.7% QoQ to NT$18.64 billion. Net non -operating income in 3Q26 was NT$1.27 billion, primarily reflecting the NT$1.16 billion in net investment gain and the NT$ 0.13 billion in net interest income. COGS & Expenses (Amount: NT$ million) 3Q26 2Q26 QoQ % change 3Q25 YoY % change Operating Revenues 74,239 68,733 8.0 59,127 25.6 COGS (49,035) (46,410) 5.7 (41,504) 18.1 Depreciation (14,695) (14,649) 0.3 (12,635) 16.3 Other Mfg. Costs (34,340) (31,761) 8.1 (28,869) 19.0 Gross Profit 25,205 22,323 12.9 17,623 43.0 Gross Margin (%) 34.0% 32.5% 29.8% Operating Expenses (7,272) (7,906) (8.0) (6,973) 4.3 Sales & Marketing (714) (733) (2.5) (628) 13.7 G&A (2,034) (2,426) (16.2) (1,715) 18.6 R&D (4,524) (4,747) (4.7) (4,631) (2.3) Expected Credit Impairment Gain (Loss) 0 0 (86.9) 0 (99.6) Net Other Operating Income & Expenses 710 533 33.2 467 51.8 Operating Income 18,643 14,950 24.7 11,118 67.7 Note：Sums may not equal totals due to rounding. Non-Operating Income and Expenses (Amount: NT$ million) 3Q26 2Q26 3Q25 Non-Operating Income and Expenses 1,268 30,236 3,526 Net Interest Income and Expenses 130 218 88 Net Investment Gain and Loss 1,159 30,045 3,192 Exchange Gain and Loss 32 3 250 Other Gain and Loss (53) (29) (3) Note：Sums may not equal totals due to rounding.
Page 5
Page 5 of 12 UMC 3Q26 In 3Q26, cash inflow from operating activities was NT$30.02 billion. Cash inflow from investing activities totaled NT$1.02 billion, including NT$13.55 billion decrease in financial assets measured at amortized cost . C apital expenditures were NT$11.93 billion , resulting in free cash flow of NT$18.09 billion. Cash outflow from financing activities was NT$14.54 billion, primarily due to NT$ 32.70 b illion in dividend distribution, offset by the NT$16.91 billion issuance of bonds . Net cash inflow in 3Q26 amounted to NT$17.91 billion. Over the next 12 months, the company expects to repay NT$8.97 billion in bank loans. ` Cash Flow Summary (Amount: NT$ million) For the 3-Month Period Ended Sep. 30, 2026 For the 3-Month Period Ended Jun. 30, 2026 Cash Flow from Operating Activities 30,016 33,698 Net income before tax 19,911 45,186 Depreciation & Amortization 16,692 16,238 Share of profit of associates and joint ventures (1,680) (23,606) Income tax paid (3,774) (2,173) Changes in working capital & others (1,133) (1,948) Cash Flow from Investing Activities 1,022 (7,427) Decrease (increase) in financial assets measured at amortized cost 13,554 (1,938) Acquisition of PP&E (11,260) (8,823) Acquisition of intangible assets (790) (658) Others (482) 3,991 Cash Flow from Financing Activities (14,541) (10,753) Bank loans 1,986 (1,894) Bonds issued 16,913 - Redemption of bonds (565) (5,500) Cash dividends (32,697) - Treasury stock acquired - (3,096) Others (177) (263) Effect of Exchange Rate 1,414 171 Net Cash Flow 17,911 15,687 Beginning balance 124,706 109,019 Ending balance 142,617 124,706 Note：Sums may not equal totals due to rounding.
Page 6
Page 6 of 12 UMC 3Q26 Cash and cash equivalents increased to NT$142.62 billion. Days sales outstanding increased 1 day to 50 days, while days of inventory decreased 4 days to 71 days. Current liabilities decreased to NT$72.97 billion. Long-term credit / bonds increased to NT$61.49 billion. Total liabilities decreased to NT$204.91 billion, while debt to equity ratio decreased to 44%. Current Assets (Amount: NT$ billion) 3Q26 2Q26 3Q25 Cash and Cash Equivalents 142.62 124.71 104.22 Accounts Receivable 42.63 38.65 32.25 Days Sales Outstanding 50 49 50 Inventories, net 38.37 37.92 35.18 Days of Inventory 71 75 76 Total Current Assets 238.90 230.26 192.85 Liabilities (Amount: NT$ billion) 3Q26 2Q26 3Q25 Total Current Liabilities 72.97 106.31 82.28 Accounts Payable 10.02 9.06 8.04 Short-Term Credit / Bonds 11.97 11.97 30.15 Payables on Equipment 5.81 7.16 11.57 Dividends Payable - 32.70 - Other 45.17 45.42 32.52 Long-Term Credit / Bonds 61.49 45.57 53.76 Total Liabilities 204.91 222.05 194.20 Debt to Equity 44% 50% 54%
Page 7
Page 7 of 12 UMC 3Q26 Analysis of Revenue Revenue from Asia Pacific increased to 67%, while business from North America remained at 22% of sales. Business from Europe remained at 8%, while contribution from Japan decreased to 3%. Revenue contribution from 22/28nm decreased to 35% of wafer revenue, while 40nm contribution increased to 16% of sales. Revenue from f abless customers accounted for 86% of revenue. Revenue from the communication segment accounted for 39%, while business from computer applications was 13% of sales. Business from consumer applications accounted for 32%, while other segments was 16% of revenue. Revenue Breakdown by Region Region 3Q26 2Q26 1Q26 4Q25 3Q25 North America 22% 22% 21% 21% 25% Asia Pacific 67% 66% 65% 64% 63% Europe 8% 8% 9% 11% 8% Japan 3% 4% 5% 4% 4% Revenue Breakdown by Geometry(1) Geometry 3Q26 2Q26 1Q26 4Q25 3Q25 14nm and below 0% 0% 0% 0% 0% 14nm<x<=28nm 35% 37% 34% 36% 35% 28nm<x<=40nm 16% 15% 18% 17% 17% 40nm<x<=65nm 19% 18% 18% 17% 18% 65nm<x<=90nm 6% 7% 8% 8% 8% 90nm<x<=0.13um 9% 8% 7% 7% 8% 0.13um<x<=0.18um 10% 10% 10% 10% 9% 0.18um<x<=0.35um 4% 4% 4% 4% 4% 0.5um and above 1% 1% 1% 1% 1% Revenue Breakdown by Customer Type(1) Customer Type 3Q26 2Q26 1Q26 4Q25 3Q25 Fabless 86% 85% 86% 80% 81% IDM 14% 15% 14% 20% 19% Revenue Breakdown by Application(1) (2) Application 3Q26 2Q26 1Q26 4Q25 3Q25 Computer 13% 13% 12% 12% 12% Communication 39% 39% 39% 42% 42% Consumer 32% 32% 32% 28% 29% Others 16% 16% 17% 18% 17% (1) Revenue in this section represents wafer sales. (2) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD -RW control ICs, PC chipset, audio codec, keyboard controller, monitor scaler, USB, I/O chipset, WLAN. Communication consists of handset components, broadband, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart cards, toys, etc.
Page 8
Page 8 of 12 UMC 3Q26 Blended ASP Trend Blended average selling price (ASP) remained firm in 3Q26. Shipment and Utilization Rate2 Wafer shipments increased 7.3% QoQ to 1,212K during the third quarter, while quarterly capacity was 1,325K. Overall utilization rate in 3Q26 was 92%. 2 Utilization Rate = Quarterly Wafer Out / Quarterly Capacity Wafer Shipments 3Q26 2Q26 1Q26 4Q25 3Q25 Wafer Shipments (12” K equivalents) 1,212 1,129 1,021 994 1,000 Quarterly Capacity Utilization Rate 3Q26 2Q26 1Q26 4Q25 3Q25 Utilization Rate 92% 85% 79% 78% 78% Total Capacity (12” K equivalents) 1,325 1,305 1,283 1,305 1,305 Unit: USD
Page 9
Page 9 of 12 UMC 3Q26 Capacity3 Total capacity in the third quarter was 1,325K 12-inch equivalent wafers. Capacity will increase to 1,337K 12-inch equivalent wafers in the fourth quarter of 2026. Annual Capacity in thousands of wafers Quarterly Capacity in thousands of wafers FAB Geometry (um) 2025 2024 2023 2022 FAB 4Q26E 3Q26 2Q26 1Q26 WTK 6" 5 – 0.15 317 331 328 335 WTK 6" 80 80 80 78 8A 8" 3 – 0.11 857 829 811 765 8A 8" 215 215 215 212 8C 8" 0.35 – 0.11 500 477 473 459 8C 8" 125 125 125 123 8D 8" 0.18 – 0.11 471 473 440 410 8D 8" 118 118 118 116 8E 8" 0.6 – 0.11 522 524 490 469 8E 8" 131 131 131 129 8F 8" 0.18 – 0.11 583 578 570 550 8F 8" 146 146 146 144 8S 8" 0.18 – 0.11 466 455 447 443 8S 8" 117 117 117 115 8N 8" 0.5 – 0.11 996 1,013 996 952 8N 8" 250 250 250 246 12A 12" 0.13 – 0.014 1,629 1,556 1,305 1,170 12A 12" 409 409 409 402 12i 12" 0.13 – 0.040 684 678 655 655 12i 12" 204 192 172 169 12X 12" 0.080 – 0.022 347 318 317 314 12X 12" 95 95 95 93 12M 12" 0.13 – 0.040 471 455 438 436 12M 12" 119 119 119 117 Total(1) 5,163 5,022 4,674 4,458 Total 1,337 1,325 1,305 1,283 YoY Growth Rate 3% 7% 5% 6% (1) One 6-inch wafer is converted into 0.25 (62/122) 12-inch equivalent wafer; one 8-inch wafer is converted into 0.44 (82/122) 12-inch equivalent wafers. Total capacity figures are expressed in 12-inch equivalent wafers. CAPEX CAPEX spending in 3Q26 totaled US$373 million. 2026 cash-based CAPEX budget will be US$2.0 billion. 3 Estimated capacity numbers are based on calculated maximum output rather than designed capacity . The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp -up. Capital Expenditure by Year - in US$ billion Year 2025 2024 2023 2022 2021 CAPEX $ 1.6 $ 2.9 $ 3.0 $ 2.7 $ 1.8 2026 CAPEX Plan 8" 12" Total 10% 90% US$2.0 billion
Page 10
Page 10 of 12 UMC 3Q26 Fourth Quarter 2026 Outlook & Guidance Quarter-over-Quarter Guidance: ⚫ Wafer Shipments: Will increase by low-single digit ⚫ ASP in USD: Will remain firm ⚫ Gross Profit Margin: Comparable to the preceding quarter ⚫ Capacity Utilization: Low-90% range ⚫ 2026 CAPEX: US$2.0 billion Recent Developments / Announcements Aug. 17, 2026 UMC Named Among HR Asia Best Companies to Work for in Asia for the Third Time Oct. 22, 2026 UMC and AP Memory Collaborate to Enable Advanced Power Delivery Solutions for AI and HPC Systems Please visit UMC’s website for further details regarding the above announcements
Page 11
Page 11 of 12 UMC 3Q26 Conference Call / Webcast Announcement Wednesday, October 28, 2026 Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 09:00 AM (London) Dial-in numbers and Access Codes: Taiwan Number: 02 3396 1191 Taiwan Toll Free: 0080 119 6666 US Toll Free: +1 877 301 4670 Other Areas: +886 2 3396 1191 Access Code: 1402028# A live webcast and replay of the 3Q26 results announcement will be available at www.umc.com under the “Investors / Events” section. About UMC UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry company. The company provides high-quality IC fabrication services, focusing on logic and various specialty technologies to serve all major sectors of the electronics industry. UMC ’s com prehensive IC processing technologies and manufacturing solutions include Logic/Mixed -Signal, embedded High -Voltage, embedded Non -Volatile- Memory, RFSOI, BCD etc. Most of UMC ’s 12 -in and 8 -in fabs with its core R&D are in Taiwan, with additional ones throughout Asia. UMC has a total of 12 fabs in production with a combined capacity of more than 400,000 wafers per month (12-in equivalent), and all of them are certified with IATF 16949 automotive quality standards. UMC is headquartered in Hsinchu, Taiwan, plus local offices in the United States, Europe, China, Japan, Korea, and Singapore, with a worldwide total of 20,000 employees. For more information, please visit: http://www.umc.com.
Page 12
Page 12 of 12 UMC 3Q26 Safe Harbor Notice and Disclaimer This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. The words “may,” “will,” “is/are likely to,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan” and similar expressions are intended to identify a number of these forward -looking statements. These forward -looking statements include, but are not limited to, statements relating to anticipated quarterly Fab capacity, foundry capital expenditure plan and other statements that are not historical information. These forward -looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) dependence upon the frequent introduction of new services and technologies based on the latest developments in the industry in which UMC operates; (ii) the intensely competitive semiconductor, co mmunications, consumer electronics and computer industries and markets; (iii) risks associated with international business activities; (iv) dependence upon key personnel; (v) general economic conditions, including those related to the semiconductor, communications, consumer electronics and computer industries; (vi) possible disruptions in commercial activities caused by natural and human -induced events and disasters, and outbreaks of contagious diseases; (vii) fluctuations in foreign currency exchange rates; and (viii) geopolitical conflicts, including political relationships between U.S., China and Taiwan. Further information regarding these and other risks is included in UMC ’s filings with the United States Securities and Exchange Commission, including but not limited to UMC ’s Annual Report on Form 20-F for the fiscal year ended December 31, 2025. All information provided in this release is as of the date of this release and is based on assumptions that UMC believes to be reasonable as of this date, and UMC does not undertake any obligation to update any forward - looking statement as a result of new information, future events or otherwise, except as required under applicable law. The financial statements included in this release are prepared and published in accordance with Taiwan International Financial Reporting Standards, or TIFRSs, recognized by the Financial Supervisory Commission in the Republic of China, or the ROC, which is different from International Financial Reporting Standards, or IFRSs, issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from generally ac cepted accounting principles in the ROC and generally accepted accounting principles in the United States. - FINANCIAL TABLES TO FOLLOW -