UMC stock: Record shipments underpin US$3.2 billion expansion

United Microelectronics Corporation delivered a stronger operating quarter on October 28, 2026, as record wafer shipments lifted utilization across its foundries. The company also approved an additional capital expenditure budget of approximately US$3.2 billion to accelerate expansion in Singapore and Tainan. The results were released by Business Wire.

Record volume lifts foundry operations

UMC said third-quarter wafer shipments rose 7.3 percent from the previous quarter to 1.212 million 12-inch-equivalent wafers, the highest level in the company's history. Quarterly capacity reached 1.325 million equivalent wafers, pushing overall utilization to 92 percent from 85 percent in the second quarter and 78 percent a year earlier.

Revenue increased 8.0 percent sequentially and 25.6 percent year over year to NT$74.24 billion. Gross margin reached 34.0 percent, while operating income rose 24.7 percent from the previous quarter to NT$18.64 billion. Net income attributable to shareholders was NT$16.43 billion, compared with NT$14.98 billion in the year-earlier quarter.

Specialty technologies provided an important part of the operating improvement. Revenue from 22nm represented 18.3 percent of wafer sales, a record contribution for the node, while revenue from 22nm and 28nm combined accounted for 35 percent of wafer revenue. UMC said demand was healthy across all major market segments, with several 12-inch fabs operating at full capacity and 8-inch operations recovering.

Expansion targets new growth areas

Chief Executive Jason Wang said customer engagement remained strong in advanced packaging and silicon photonics. UMC is converting some existing capacity to address near-term demand while pursuing a longer-term expansion plan in Singapore and Tainan.

The board's additional US$3.2 billion budget is separate from the company's US$2.0 billion cash-based capital expenditure plan for 2026. UMC said the extra spending will accelerate capacity deployment in line with customer product roadmaps. Capacity is expected to rise to 1.337 million 12-inch-equivalent wafers in the fourth quarter.

Fourth-quarter outlook stays constructive

For the fourth quarter, management expects wafer shipments to rise by a low-single-digit percentage from the preceding quarter. Average selling prices in US dollars are expected to remain firm, gross margin should be comparable with the third quarter, and utilization is projected to stay in the low-90 percent range.

UMC stock traded at 14.55 euros on Lang & Schwarz at 2:30 p.m. CET on Tuesday, November 3, 2026. Investors are likely to focus on whether strong utilization can translate into sustained margin performance as the company funds its expansion program. The real-time quote of UMC stock is available here.

Asian semiconductor shares remain sensitive to capacity plans, customer demand and the pace of investment in artificial-intelligence infrastructure; see current market reports.

Further earnings details and company developments are available in more news and analyses on UMC stock.