United Microelectronics’ Third-Quarter 2026 Results Miss Expectations Amid Weak Phone Demand
Key Facts
Wafer shipments reached a record after growing 7.3%, while capacity utilization hit 92%. The chief executive said end-market demand remained stable, in results that contrast with the earlier draft’s description of performance as declining because of weak demand for budget phones.
The company shipped more than 1.2 million 12-inch-equivalent wafers during the quarter, its highest quarterly level, according to the statement. The increase in shipments was accompanied by full capacity at several 12-inch wafer fabs, alongside a strong recovery in 8-inch fab utilization, the chief executive said. The company said end markets maintained resilient demand during the period. Gross margin was 34.0%, while operating margin reached 25.1%. These indicators show an expansion in operating activity alongside revenue growth, rather than the overall decline described in the earlier draft.
22-nanometer and 28-nanometer wafers accounted for 35% of wafer revenue in the third quarter, while 22-nanometer products made up 18.3% of wafer sales, their highest quarterly share. This share highlights the role of specialized technologies in the company’s business mix, alongside higher overall shipments. UMC’s statement did not link the quarter’s performance to weak demand for budget phones, but described end-market demand as stable. The company also said revenue from specialty operations is expected to grow in the fourth quarter. This places the performance of these categories among the company’s operating indicators for the coming period.
In its fourth-quarter outlook, UMC said it expects demand momentum to continue, with wafer shipments and capacity utilization remaining at stable levels and revenue from specialty operations growing. It added that its advanced packaging and silicon photonics collaborations could contribute to business growth in coming quarters. The company said existing projects will expand gradually, while final designs for new products are being completed. This guidance links continued demand with a growing contribution from projects and specialized technologies. The company did not provide a quantitative figure for its quarterly outlook in its statement.
On investment, UMC’s board approved adding about $3.2 billion to its capital expenditure budget on October 28. The company said the increase will accelerate expansion in Singapore and Tainan, as it expects shipments and capacity utilization to remain stable in the fourth quarter. The decision comes alongside expectations that collaborations in advanced packaging and silicon photonics will contribute to business growth in coming quarters. The company’s shares closed at $19.45 on October 27, according to EL7 daily data. UMC is scheduled to announce its monthly October sales on November 5, 2026, though the date is subject to change.