EL7.AI
StocksMedium•28 October 2026•
3 min read

UMC revenue rises 25.6% to NT$742.4 billion in third quarter

Key Facts

1Consolidated revenue was NT$742.4 billion in the third quarter of 2026, up 8.0% quarter over quarter and 25.6% year over year.
2Chip shipments rose 7.3% to more than 1.2 million 12-inch equivalent wafers, with capacity utilization at 92%.
3Net income attributable to the parent company was NT$164.3 billion, and earnings per ordinary share were NT$1.32.
4The board approved an additional capital expenditure budget of about US$3.2 billion on October 28, 2026.

UMC reported consolidated revenue of NT$742.4 billion in the third quarter of 2026, up 8.0% from the second quarter and 25.6% from the same period a year earlier. Revenue rose from NT$687.3 billion in the previous quarter. Sales growth was accompanied by a 7.3% increase in chip shipments to more than 1.2 million 12-inch equivalent wafers, a company record. The company said demand remained stable across end markets during the quarter. Capacity utilization also reached 92%, reflecting higher operating levels at its fabs alongside increased shipments.

Improved activity translated into stronger operating profitability, with operating income up 24.7% from the second quarter. The company posted a gross margin of 34.0% and an operating margin of 25.1% in the third quarter. Net income attributable to the parent company was NT$164.3 billion. Earnings per ordinary share were NT$1.32, while earnings per American depositary receipt were US$0.206. The results put revenue and shipment growth alongside improved operating income, while capacity utilization remained at 92%.

Technologies at 22 and 28 nanometers accounted for 35% of wafer revenue during the quarter, while 22-nanometer technology alone represented 18.3% of wafer sales. These shares show the weight of the two technologies in the company's sales mix. UMC said stable demand in end markets supported the increase in chip shipments. It said new design wins included display chips, automotive radar and Wi-Fi. These applications added to the demand base that helped shipments reach a record during the period.

For the fourth quarter, the company forecast continued demand momentum, with wafer shipments and capacity utilization expected to remain stable. It said customers are expanding their collaboration with UMC in advanced packaging and silicon photonics. The company said current projects and new products could contribute to business growth in coming quarters. It added that these partnerships "will contribute to business growth in coming quarters." The company thus ties its outlook to the development of collaboration in these areas and continued demand for its chips.

On expansion, UMC's board approved an additional capital expenditure budget of about US$3.2 billion on October 28, 2026, to accelerate capacity expansion. The decision follows capacity utilization of 92% and record chip shipments in the third quarter. The company did not specify how the additional budget would be allocated in its statement. UMC is scheduled to announce monthly October sales on November 5, 2026, although the date is subject to change. The upcoming announcement will provide a further indication of sales momentum after quarterly revenue growth.