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 -- 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 12-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, automotive radar, and Wi-Fi ICs. In new business areas, active customer engagement for advanced packaging and silicon photonics remains 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 significant 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 initiatives, 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.”

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 Board. 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 been translated at the weighted-average exchange rate of NT$31.99 per U.S. dollar for the three-month period ended September 30, 2026.

Summary of Operating Results

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
(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.

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 number 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.

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.

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.

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.

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.

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. Capital 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 billion 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.

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 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

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%.

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%

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 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 contribution from 22/28nm decreased to 35% of wafer revenue, while 40nm contribution increased to 16% of sales.

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 from fabless customers accounted for 86% of revenue.

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 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 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.

Blended ASP Trend

(To view blended ASP trend, please click here for 3Q26 ASP)

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%.

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

² Utilization Rate = Quarterly Wafer Out / Quarterly Capacity

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.

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.

CAPEX

CAPEX spending in 3Q26 totaled US$373 million. 2026 cash-based CAPEX budget will be US$2.0 billion.

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

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

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 comprehensive 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.