Taiwan’s United Microelectronics Corporation posted NT$19.48 billion ($642 million) in May revenue, marking a 5% sequential decline that underscores persistent weakness in foundry demand despite relatively stable year-over-year performance.
The chipmaker’s May sales were essentially flat compared to the same month last year, reflecting broader industry challenges as customers remain cautious about inventory rebuilding. For the first five months of 2025, UMC generated NT$97.79 billion ($3.2 billion), representing a modest 4.17% increase from the prior year.
UMC executives have cited market volatility and policy changes linked to tariff impacts as key factors clouding near-term demand visibility. The company maintains a defensive stance, working closely with customers to monitor end-market trends rather than pushing for aggressive capacity expansion.
The foundry’s strategic focus remains anchored on its high-profile collaboration with Intel to develop 12-nanometer technology. Production at Intel’s Arizona facilities is scheduled to begin in 2027, with UMC positioning the partnership as a pathway to cost-efficient capacity growth while avoiding heavy capital investments.
UMC shareholders will receive a NT$2.85 ($0.094) per share dividend on July 16, yielding 6.29% based on current stock prices. The relatively generous payout reflects management’s confidence despite ongoing market headwinds facing the global semiconductor supply chain.
