22nm revenue surges 46% QoQ on display driver and networking chip demand

Inauguration of new Singapore fab to support future 22nm growth

First Quarter 2025 Overview1:

Revenue: NT$57.86 billion (US$1.74 billion) Gross margin: 26.7%; Operating margin: 16.9% Revenue from 22/28nm: 37% Capacity utilization rate: 69% Net income attributable to shareholders of the parent: NT$7.78 billion (US$234 million) Earnings per share: NT$0.62; earnings per ADS: US$0.093

TAIPEI, Taiwan, April 23, 2025--(BUSINESS WIRE)--United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the first quarter of 2025.

First quarter consolidated revenue was NT$57.86 billion, decreasing 4.2% from NT$60.39 billion in 4Q24. Compared to a year ago, 1Q25 revenue increased 5.9%. Consolidated gross margin for 1Q25 was 26.7%. Net income attributable to the shareholders of the parent was NT$7.78 billion, with earnings per ordinary share of NT$0.62.

Jason Wang, co-president of UMC, said, "Our results in the first quarter were in line with previous guidance, with flattish wafer shipments and the one-time pricing adjustment at the beginning of the year to reflect market conditions. First-quarter highlights include 22/28nm revenue hitting a record high, representing 37% of total sales. That was driven by a 46% quarter-over-quarter increase in 22nm revenue from products such as OLED display driver ICs, image signal processors as well as digital TV, WiFi and audio codec chips. We expect customers to tape-out additional 22nm products in the coming quarters as customers increasingly migrate to our 22nm logic and specialty platforms for next-generation applications. Earlier this month, we also officially inaugurated our new Singapore Phase 3 fab, which will provide additional 22nm capacity to support future growth. Pilot runs are underway and is on schedule to ramp up to volume production early 2026. The expansion in Singapore also further broadens our geographic diversification, enabling customers to strengthen their supply chain resilience. In February, our Board of Directors proposed a cash dividend of NT$2.85 per share, which is subject to approval from shareholders in the upcoming annual general meeting."

Co-president Wang added, "Looking ahead to the second quarter, we are expecting a moderate rebound in demand across all segments according to near-term alignment with customers. Beyond that, we are cautious about wafer demand projections as policies and markets are still adjusting to the recent tariff announcements. To navigate this challenging environment, we are working closely with customers to monitor trends in end market demand. We are also strengthening our competitive advantages by focusing on execution of key technology projects, such as the 12nm collaboration with U.S. partner, and ensuring our customers have access to geographically diverse manufacturing options. In addition, we are implementing cost reduction plans and accelerating AI and intelligent manufacturing systems to enhance operational efficiency. Through these key focuses, we are confident that UMC can maintain our financial and business resilience."

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Co-president Wang said, "In the first quarter, UMC was honored to receive high ratings in two key sustainability benchmarks. In the Sustainability Yearbook 2025 published by S&P Global, UMC is the only semiconductor company globally to earn the ‘Top 1%’ ranking based on the company’s Corporate Sustainability Assessment (CSA) score. UMC also stood out in the CDP’s annual assessment as the sole semiconductor company to be awarded the highest ‘A’ rating in both Climate Change and Water Security categories."

Summary of Operating Results

Operating Results (Amount: NT$ million)  1Q25  4Q24  QoQ %
change  1Q24  YoY %
change Operating Revenues  57,859   60,386   (4.2 )  54,632   5.9  Gross Profit  15,447   18,343   (15.8 )  16,899   (8.6 ) Operating Expenses  (6,123 )  (6,748 )  (9.3 )  (5,747 )  6.5  Net Other Operating Income and Expenses  462   362   27.6   513   (9.9 ) Operating Income  9,786   11,957   (18.2 )  11,665   (16.1 ) Net Non-Operating Income and Expenses  (439 )  (1,443 )  (69.5 )  1,056   -  Net Income Attributable to Shareholders of the Parent  7,777   8,497   (8.5 )  10,456   (25.6 ) EPS (NT$ per share)  0.62   0.68     0.84  EPS (US$ per ADS)  0.093   0.104     0.131  Exchange rate (USD/NTD)  33.18   32.78     31.99  Note：Sums may not equal totals due to rounding.

First quarter operating revenues declined 4.2% sequentially to NT$57.86 billion. Revenue contribution from 40nm and below technologies represented 53% of wafer revenue. Gross profit decreased 15.8% QoQ to NT$15.45 billion, or 26.7% of revenue. Operating expenses decreased 9.3% to NT$6.12 billion. Net other operating income increased 27.6% to NT$0.46 billion. Net non-operating expenses totaled NT$0.44 billion. Net income attributable to shareholders of the parent amounted to NT$7.78 billion.

Earnings per ordinary share for the quarter was NT$0.62. Earnings per ADS was US$0.093. The basic weighted average number of shares outstanding in 1Q25 was 12,484,780,989, compared with 12,481,192,676 shares in 4Q24 and 12,414,087,724 shares in 1Q24. The diluted weighted average number of shares outstanding was 12,579,207,466 in 1Q25, compared with 12,610,756,874 shares in 4Q24 and 12,577,525,057 shares in 1Q24. The fully diluted shares counted on March 31, 2025 were approximately 12,579,207,000.

Detailed Financials Section

Operating revenues decreased to NT$57.86 billion. COGS grew 0.9% to NT$42.41 billion, which included a 4.1% sequential increase in depreciation. Gross profit decreased 15.8% QoQ to NT$15.45 billion. Operating expenses decreased to NT$6.12 billion, as G&A declined 13.9% QoQ to NT$1.54 billion, R&D declined 8.5% to NT$3.96 billion, and Sales & Marketing also declined 0.7% to NT$0.62 billion. Net other operating income was NT$0.46 billion. In 1Q25, operating income declined 18.2% QoQ to NT$9.79 billion.

COGS & Expenses (Amount: NT$ million)  1Q25  4Q24  QoQ %
change  1Q24  YoY %
change Operating Revenues  57,859   60,386   (4.2 )  54,632   5.9  COGS  (42,412 )  (42,043 )  0.9   (37,733 )  12.4  Depreciation  (12,321 )  (11,841 )  4.1   (9,335 )  32.0  Other Mfg. Costs  (30,091 )  (30,202 )  (0.4 )  (28,398 )  6.0  Gross Profit  15,447   18,343   (15.8 )  16,899   (8.6 ) Gross Margin (%)  26.7 %  30.4 %    30.9 %  Operating Expenses  (6,123 )  (6,748 )  (9.3 )  (5,747 )  6.5  Sales & Marketing  (619 )  (623 )  (0.7 )  (684 )  (9.5 ) G&A  (1,542 )  (1,791 )  (13.9 )  (1,702 )  (9.4 ) R&D  (3,964 )  (4,334 )  (8.5 )  (3,407 )  16.3  Expected Credit Impairment Gain  2      523.3   46   (94.7 ) Net Other Operating Income & Expenses  462   362   27.6   513   (9.9 ) Operating Income  9,786   11,957   (18.2 )  11,665   (16.1 ) Note：Sums may not equal totals due to rounding.

Net non-operating expenses in 1Q25 was NT$0.44 billion, primarily reflecting the NT$0.77 billion in net investment loss, offset by the NT$0.22 billion in net interest income, and the NT$0.12 billion in exchange gain.

Non-Operating Income and Expenses (Amount: NT$ million)  1Q25  4Q24  1Q24  Non-Operating Income and Expenses  (439 )  (1,443 )  1,056  Net Interest Income and Expenses  219   290   676  Net Investment Gain and Loss  (769 )  (2,614 )  (324 ) Exchange Gain and Loss  115   877   697  Other Gain and Loss  (5 )  4   7  Note：Sums may not equal totals due to rounding.

In 1Q25, cash inflow from operating activities was NT$23.83 billion. Cash outflow from investing activities totaled NT$10.51 billion, which included NT$14.57 billion in capital expenditure, resulting in free cash flow of NT$9.26 billion. Cash outflow from financing was NT$13.78 billion, primarily from NT$13.02 billion in bank loans. Net cash flow in 1Q25 amounted to NT$1.35 billion. Over the next 12 months, the company expects to repay NT$5.62 billion in bank loans.

Cash Flow Summary (Amount: NT$ million)  For the 3-Month Period Ended

Mar. 31, 2025  For the 3-Month Period Ended

Dec. 31, 2024 Cash Flow from Operating Activities  23,826   32,977  Net income before tax  9,347   10,514  Depreciation & Amortization  14,128   13,463  Share of loss of associates and

joint ventures  208   1,800  Income tax paid  (585 )  (137 ) Changes in working capital & others  728   7,337  Cash Flow from Investing Activities  (10,506 )  (16,968 ) Acquisition of PP&E  (14,153 )  (18,275 ) Acquisition of intangible assets  (329 )  (877 ) Others  3,976   2,184  Cash Flow from Financing Activities  (13,776 )  (14,305 ) Bank loans  (13,018 )  (10,495 ) Redemption of bonds  -   (3,400 ) Others  (758 )  (410 ) Effect of Exchange Rate  1,810   (111 ) Net Cash Flow  1,354   1,593  Beginning balance  105,000   103,407  Ending balance  106,354   105,000  Note：Sums may not equal totals due to rounding.

Cash and cash equivalents increased to NT$106.35 billion. Days of inventory decreased 3 days to 77 days.

Current Assets (Amount: NT$ billion)  1Q25  4Q24  1Q24 Cash and Cash Equivalents  106.35  105.00  119.43 Accounts Receivable  34.80  33.34  30.68 Days Sales Outstanding  54  51  50 Inventories, net  35.43  35.78  34.59 Days of Inventory  77  80  85 Total Current Assets  192.32  189.68  205.16

Current liabilities decreased to NT$72.87 billion. Long-term credit/bonds decreased to NT$44.63 billion. Total liabilities decreased to NT$182.13 billion, leading to a debt to equity ratio of 47%.

Liabilities (Amount: NT$ billion)  1Q25  4Q24  1Q24  Total Current Liabilities  72.87   75.26   88.40  Accounts Payable  9.27   7.63   7.46  Short-Term Credit / Bonds  17.63   19.51   25.60  Payables on Equipment  8.46   10.52   13.97  Other  37.51   37.60   41.37  Long-Term Credit / Bonds  44.63   55.53   43.45  Total Liabilities  182.13   192.02   188.85  Debt to Equity  47 %  51 %  50 %

Analysis of Revenue2

Revenue from Asia Pacific increased to 66%, while business from North America was 22% of sales. Business from Europe decreased to 7%, while contribution from Japan was 5%.

Revenue Breakdown by Region Region 1Q25 4Q24 3Q24 2Q24 1Q24 North America  22 %  25 %  26 %  25 %  25 % Asia Pacific  66 %  61 %  65 %  64 %  63 % Europe  7 %  11 %  5 %  7 %  8 % Japan  5 %  3 %  4 %  4 %  4 %

Revenue contribution from 22/28nm increased to 37% of wafer revenue, while 40nm contribution remained at 16% of sales.

Revenue Breakdown by Geometry Geometry 1Q25 4Q24 3Q24 2Q24 1Q24 14nm and below   %   %   %   %   % 14nm