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According to United Microelectronics Corporation (UMC), the Taiwan-based semiconductor foundry reported October 2026 consolidated revenue of NT$25.2 billion, representing an 18.33% increase year over year, despite a slight 0.59% decline from September's record high. The results highlight sustained demand for mature-node and specialty semiconductor processes. Looking ahead, UMC expects wafer shipments to increase in the fourth quarter and anticipates an approximately 10% rise in average selling prices (ASP) in 2027. Growing demand for AI-related power management ICs, advanced packaging, and silicon photonics is also expected to create new growth opportunities.

On November 5, UMC announced that its October consolidated revenue reached NT$25.2 billion. Revenue for the first ten months of 2026 totaled NT$229.207 billion, up 16.33% compared with the same period last year.

UMC CEO Wang Shi highlighted stable demand across end markets in the third quarter. Wafer shipments increased 7.3% quarter over quarter, exceeding 1.2 million 12-inch equivalent wafers and setting a new record. Overall capacity utilization reached 92%, with several 12-inch fabs operating at full capacity. Meanwhile, 8-inch fab utilization also improved significantly, reflecting tighter supply-demand conditions in mature process technologies.

In terms of technology mix, UMC's 22nm and 28nm businesses achieved record quarterly revenue, supported by new products such as display driver ICs, automotive radar chips, and Wi-Fi ICs entering production. The 22nm process accounted for 18.3% of total wafer sales. In addition, AI-related applications are driving stronger demand for power management ICs (PMICs), FPGAs, and other specialty technologies. Some 8-inch and 12-inch production lines are approaching or have already reached full capacity, while customer demand continues to exceed available production capacity in certain areas.

For the fourth quarter, UMC expects wafer shipments to grow by a low-single-digit percentage quarter over quarter, while its US dollar-denominated ASP is expected to remain stable. Gross margin is projected to stay close to the third-quarter level of 34%, with capacity utilization remaining slightly above 90%. These forecasts indicate that demand and production activity are expected to remain solid.

UMC also has a more positive pricing outlook for 2027. Wang Shi noted that tightening supply of certain specialty processes and rising demand for higher-value semiconductor technologies could make 2027 an important turning point for wafer pricing. The company expects its full-year product mix-adjusted ASP to increase by approximately 10% compared with 2026, with price improvements potentially taking effect from the first quarter. Both 8-inch and 12-inch wafer businesses are expected to have room for price adjustments.

Meanwhile, UMC is expanding its capabilities in advanced packaging and silicon photonics, with an increasing number of customer collaboration projects. Some existing production capacity has already been reassigned to support these technologies and address near-term supply constraints. As new products complete design wins and existing projects gradually ramp up, these businesses are expected to begin contributing to revenue over the coming quarters.