Abstract

United Microelectronics will report quarterly results on July 29, 2026 before market open; this preview summarizes last quarter’s performance and outlines revenue, margin, and EPS expectations for the current quarter alongside recent analyst views.

Market Forecast

For the current quarter, the market’s baseline points to revenue of 2.04 billion US dollars, up 9.28% year over year, with adjusted EPS around 0.15, up 15.38% year over year; EBIT is projected at 406.70 million US dollars with a 12.75% year-over-year increase, and company commentary suggests a gross profit margin of about 30%. Management guidance indicates quarter-over-quarter growth in wafer shipments in the high single digits and low single-digit increases in average selling prices, with utilization expected in the low-80% range, implying steadier mix and operating leverage this quarter. The main business remains wafer manufacturing, where last quarter’s revenue was approximately 1.84 billion US dollars; leadership highlighted stronger shipment momentum and a supportive pricing backdrop. The most promising growth area, based on recent disclosures, is the 22nm logic and specialty platforms and the newly launched silicon photonics line in Singapore; while a precise revenue run-rate and year-over-year comparison are not disclosed for these subsegments, management noted 22nm reached a record and accounted for 14% of total revenue, with momentum expected to continue.

Last Quarter Review

United Microelectronics delivered revenue of 1.93 billion US dollars, a gross profit margin of 29.19%, GAAP net profit attributable to shareholders of approximately 0.51 billion US dollars (net profit margin 26.49%), and adjusted EPS of 0.20, with revenue up 9.68% year over year and adjusted EPS up 119.36% year over year. Quarter on quarter, net profit accelerated materially, with management data indicating a 60.83% sequential increase, supported by cost discipline and operating efficiency. On execution, wafer shipments climbed 2.7% quarter over quarter and capacity utilization improved to 79%, while operating margin rose to 18.50%; capex for the period was 416.00 million US dollars, aligning with the full-year plan. The core wafer business contributed about 1.84 billion US dollars (95.38% of revenue), underpinning the 9.68% year-over-year rise in consolidated revenue; within the node mix, 22nm and 28nm combined contributed 34% of wafer revenue (versus 37% a year earlier), 40nm increased to 18% from 16% a year ago, and 22nm alone reached a record at 14% of total revenue.

Current Quarter Outlook

Wafer manufacturing: shipment growth, pricing traction, and margin discipline

Management expects wafer shipments to grow by high single digits quarter over quarter, with average selling prices in US dollars up by low single digits quarter over quarter. Taken together, this guidance points to an expansion in top-line scale that should support the EBIT forecast of 406.70 million US dollars and the gross profit margin target around 30%. The utilization outlook in the low-80% range implies better absorption versus last year and should provide incremental margin support if the mix holds or improves. A key factor inside the quarter is the balance between higher 8-inch output and ramping 12-inch demand; even with some ASP pressure from a higher 8-inch mix in the past, management’s commentary suggests that pricing and mix are firm enough this quarter to keep margins steady to mildly higher. Operating leverage should remain constructive as volumes increase and as facilities keep run rates closer to plan, and opex discipline provides an additional underpinning for the EPS target. In this context, any deviation in the shipment cadence or pricing execution can translate quickly into EPS variance, given the relatively tight gross margin range the company is signaling. With capex tracking to a 1.50 billion US dollars full-year plan, the company appears to be pacing investments to demand, which can also temper depreciation pressure relative to revenue growth and help sustain the margin profile.

22nm specialty logic and silicon photonics: near-term mix gains and medium-term optionality

United Microelectronics reported that 22nm revenue reached a record and accounted for 14% of total revenue last quarter, while 22nm and 28nm combined represented 34% of wafer revenue. The company expects more than 50 customers to complete tape-outs on its 22nm platforms by year-end across display drivers, networking chips, and microcontrollers, which indicates healthy design-in activity that should translate into smoother loading and higher mix quality over time. This design momentum—in combination with rising 40nm contribution—provides a pathway for maintaining or modestly improving average selling prices as mainstream applications move to more power-efficient nodes. Beyond 22nm, the company announced the start of silicon photonics production in Singapore to serve accelerating demand for high-speed AI connectivity and co-packaged optics. Early activity includes a lead customer and collaboration with a research institution to broaden platform capabilities, aiming at more comprehensive offerings by 2027. While near-term revenue from photonics is likely modest, initial production marks meaningful strategic progress, opening a lane for the company to participate in higher bandwidth, optical interconnect workflows increasingly used in data centers. The shift of relevant workflows to 12-inch wafers in Singapore should also support better performance, power efficiency, and yield learning curves that are favorable to margins as volumes mature. These developments add optionality to the company’s revenue mix in upcoming quarters and strengthen its ability to capture specialized demand alongside mainstream logic nodes.

What may move the stock this quarter: delivery versus margin targets and execution on mix

Three elements stand out as potential share-price catalysts when the company reports: top-line delivery relative to the 2.04 billion US dollars revenue expectation, gross profit margin versus the ~30% guidance, and visibility into the second-half pricing and shipment trajectory. Since last quarter’s gross margin printed 29.19%, investors will watch whether the mix of 22nm/28nm and 40nm helps lift margins toward 30% despite potential ASP variability tied to 8-inch volumes. If the company demonstrates that shipments grew in the high single digits quarter over quarter and ASPs improved in the low single digits, the combination should be consistent with the EBIT and EPS estimates for this quarter. Monthly sales disclosure has also been constructive: reported revenue growth in May and June was robust on a year-over-year basis, suggesting a favorable run-rate entering the quarter. Management has, however, flagged external considerations such as component supply tightness and geopolitical uncertainties; any commentary that these issues are manageable or easing may further support sentiment. On the technology roadmap, investors are likely to look for incremental updates on the 12nm collaboration and the photonics ramp, even if the near-term earnings contribution is small; clarity on timing and customer engagement can shape medium-term expectations. Finally, capital allocation within the 1.50 billion US dollars capex plan and any updates on second-half pricing measures will influence forecasts for utilization and gross margin resilience into the back half of 2026.

Analyst Opinions

Across the views gathered, the stance is predominantly bullish: among the recent opinion-bearing items located in the review period, the balance tilts to bullish with no identified bearish calls. A notable example is Masterlink Securities, which upgraded United Microelectronics to Buy from Hold and set a price target of NT$135, while the broader analyst community average remains closer to a Hold with a mean target of NT$90.67, indicating a divergence toward a more constructive stance by at least one institution. Commentary supporting the upgrade highlights expectations for margin stabilization around the 30% level, sustained shipment growth through the quarter, and incremental pricing power that should help maintain EBIT and EPS momentum relative to the prior period. Analysts and market commentaries also point to last quarter’s execution as a positive signal for the current print: adjusted EPS of 0.20 beat expectations and rose 119.36% year over year, utilization improved to 79%, and management called out healthy demand that spans communications, computer, consumer, and industrial markets. The follow-through of monthly revenue strength—May up by high teens year over year and June up by the low-20s percentage range—strengthens the case that the 2.04 billion US dollars revenue estimate is achievable. In addition, the reported record for 22nm revenue and the plan for more than 50 customer tape-outs by year-end underpin a view that mix can contribute positively to price and margins even if mature nodes remain a large base of shipments. Where opinions coalesce is on the importance of this quarter’s margin print. The difference between 29% and 30% gross margin is meaningful for EPS given the company’s operating leverage and shipment step-up; institutions emphasizing a Buy case tend to argue that utilization in the low-80% range and a better node mix can keep gross margin near the 30% mark. They also note that the silicon photonics production start in Singapore, though likely small in near-term revenue, adds an additional lever for medium-term differentiation and mix enhancement. Upgrades and favorable previews generally frame risks—such as component availability or geopolitics—as manageable within the quarter, while acknowledging that visibility into the second half will matter for sustaining momentum. On balance, the weight of commentary remains aligned with a positive view into this print, prioritizing shipment execution, gross margin trajectory, and validation of the EPS estimate as the focal points for the stock reaction.