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UMC Posts Revenue Growth Despite Taiwan Quake Disruption

Chipmaker's production recovery efforts limit earthquake damage as it bets on 22nm technology
Taiwan
u 2303.TW Blue Chip 150 OM 60 Semicon 75 Tech 350
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United Microelectronics Corp. reported NT$19.81 billion ($630 million) in January revenue, marking a 4.4% increase from December and 4.2% year-over-year growth, despite production disruptions from Taiwan’s recent earthquake.

The contract chipmaker said some wafers in production were damaged during the January 21 earthquake, but expects limited impact on overall shipments. Production is set to return to normal within four days, according to company statements.

Looking ahead to 2025, UMC projects its 22-nanometer technology will drive growth, though gross margins may dip below 30% in the first quarter due to earthquake impacts and an expected 4-6% decline in average selling prices in dollar terms.

The company is expanding capacity through its Phase 3 facility in Singapore to strengthen supply chain resilience. It’s also developing a 12nm process platform with U.S. partners to meet customer demand for sub-22nm technologies.

Co-President Jason Wang said semiconductor market growth in 2025 will likely be driven by strong AI server demand and increased chip content in smartphones, computers and other electronic devices. The company is focusing on specialty process solutions and advanced packaging capabilities to capture opportunities in AI applications.

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