Taiwan Semiconductor foundry United Microelectronics Corp. reported second-quarter results that showed resilience against currency volatility, though profit growth came at the expense of margin compression. Net income attributable to shareholders rose 14.5% sequentially to NT$8.90 billion ($299 million), while earnings per share reached NT$0.71 ($0.024).
Revenue climbed 1.6% from the previous quarter to NT$58.76 billion ($1.98 billion), marking a 3.4% increase from the year-earlier period. The foundry’s capacity utilization improved to 76% as wafer shipments expanded 6.2% quarter-over-quarter, driven primarily by communications applications including image signal processors and WiFi controllers.
However, currency movements proved costly. The strengthening New Taiwan dollar against the US dollar reduced gross margins by approximately three percentage points, limiting the metric to 28.7% despite higher utilization rates. Co-President Jason Wang acknowledged that unfavorable foreign exchange movements capped profitability gains.
The company’s 22/28-nanometer technology portfolio emerged as a bright spot, achieving record revenue contribution of 40% of total sales. This older-generation technology has become increasingly attractive to customers seeking cost-effective solutions for communications and consumer applications.
UMC’s first-half performance reflects broader industry challenges, with net income declining 31.2% year-over-year to NT$166.79 billion ($5.6 billion) as demand normalization continues across semiconductor markets. The company expects wafer shipments to increase modestly in the third quarter, though currency headwinds may persist.
Looking ahead, UMC plans to bring its Singapore Fab12i Phase 3 expansion online in 2026, positioning itself to capture anticipated recovery in global chip demand while strengthening supply chain resilience for customers.
