Movement Alert|UMC Rises 6.92% Overnight, Q1 Net Profit Surges 108% Beating Expectations as Pricing Power and New Platform Launch Continue to Drive Momentum

Market Focus
May 26

On May 26, UMC rose 6.92% overnight, trading at $19.33/share, with trading volume of $65,500. The rally was driven by a combination of strong Q1 earnings, confirmed wafer price hikes, and a new technology platform launch.

The company reported Q1 net profit of NT$16.17 billion, a 108% year-over-year surge that significantly exceeded market expectations. Gross margin reached 29.2% while capacity utilization improved to 79%. The mature-node pricing trend remains firmly positive, with Q1 average selling price rising 8% year-over-year. Management guided for an additional 5%-7% ASP increase in Q2, with gross margin expected to recover above 30%. The company has also formally notified customers of wafer price adjustments for the second half, citing resilient demand and a tightening capacity environment rather than simple cost pass-through.

Additionally, UMC recently launched its 14nm eHV FinFET platform targeting next-generation OLED display driver ICs, delivering 40% power reduction and 35% chip area savings, further reinforcing its competitive positioning in specialty technologies.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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