UMC

Nova Ltd. NVMI delivered a strong performance in the second quarter of 2026, supported by healthy demand for advanced semiconductor process-control solutions. The company reported record revenues and earnings, while management’s upbeat third-quarter outlook highlighted continued momentum across advanced logic and packaging applications. Let us delve a little deeper into the stock’s key growth drivers. Nova reported second-quarter revenues of $255 million, up 16% year over year and 8% sequentially. The figure surpassed the Zacks Consensus Estimate by 0.9%. Non-GAAP earnings of $2.51 per share increased 14% from the year-ago quarter and beat the consensus mark of $2.41 by 4.2%. The company surpassed earnings expectations in each of the trailing four quarters.Growth was driven by record revenues from advanced logic devices as customers continued transitioning toward Gate-All-Around (GAA) architectures and advanced nodes. Nova also posted record revenues from advanced-packaging solutions, benefiting from capacity additions across logic and memory manufacturing.The momentum is likely to continue in the third quarter. Management expects revenues between $277 million and $287 million, implying growth of roughly 9-13% sequentially at the endpoints. Non-GAAP earnings are projected between $2.70 and $2.85 per share. The outlook suggests that investments tied to AI, high-performance computing and increasingly complex semiconductor architectures remain important demand catalysts for Nova’s metrology portfolio. Nova is well-positioned to benefit from rising process complexity in semiconductor manufacturing. As chipmakers move toward GAA transistors, advanced packaging, high-bandwidth memory and more complex device structures, the need for precise dimensional, materials and chemical metrology continues to increase.The company achieved record sales for its front-end chemical metrology solution and Sentronics dimensional metrology products used in advanced packaging. Broad-based demand, market share gains and deeper engagement with leading-edge customers also improved visibility into future opportunities.These trends strengthen Nova’s long-term investment case. Unlike semiconductor-equipment companies that rely mainly on wafer-fabrication capacity growth, Nova also benefits from increasing metrology intensity per wafer as manufacturing complexity rises. This gives the company an additional structural growth driver even when broader industry spending is uneven. Nova has gained 32.6% in the past year compared with the industry’s growth of 47.9%. It has lagged peers like FormFactor, Inc. FORM and United Microelectronics Corporation UMC. While UMC has gained 200.8%, FORM soared 248.4% over this period. One-Year NVMI Stock Price Performance Image Source: Zacks Investment Research Nova’s second-quarter performance reinforces the strength of its underlying business. Record revenues, continued earnings beats, growing exposure to GAA and advanced packaging and a strong third-quarter outlook support the bullish case. The recent share-price correction provides a more reasonable entry point for investors willing to tolerate volatility.Given its strong execution, expanding process-control opportunity and favorable earnings outlook, investors may consider betting on the stock for long-term growth.Nova currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nova Ltd. (NVMI) : Free Stock Analysis Report FormFactor, Inc. (FORM) : Free Stock Analysis Report United Microelectronics Corporation (UMC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

United Microelectronics Corporation UMC reported better-than-expected second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. The company reported earnings of 54 cents per ADS, up from 12 cents reported in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 237.5%. Revenues rose 8.4% year over year to $2.18 billion and surpassed the consensus mark by 5.4%. Higher wafer shipments, improved utilization and record 22/28-nanometer sales supported the quarter, while utilization reached 85%. Wafer shipments rose 10.6% from the prior quarter to 1.129 million 12-inch-equivalent wafers, reflecting stronger demand from the communication and consumer markets. The communication segment contributed 39% of wafer revenues, consumer accounted for 32%, computer represented 13% and other applications made up 16%. Asia remained the largest market at 66% of wafer sales, followed by North America at 22%, Europe at 8% and Japan at 4%. United Microelectronics Corporation price-consensus-eps-surprise-chart | United Microelectronics Corporation Quote In the second quarter of 2026, revenues from 22/28-nanometer technologies increased to 37% of wafer sales, up from 34% in the first quarter of 2026. The 22-nanometer business represented 17.5% of second-quarter sales and reached a record level. Technologies at 40 nanometers and below generated 52% of wafer revenues. The 40-nanometer node contributed 15%, while 65 nanometers accounted for 18%. Fabless customers represented 85% of wafer sales, with integrated device manufacturers contributing the remaining 15%. UMC’s gross margin was 25.3%, which expanded 380 basis points (bps) from the year-ago quarter and 330 bps sequentially, as improved factory loading and a low-single-digit increase in blended average selling prices supported profitability. UMC’s operating margin of 21.8% expanded 340 bps year over year and 330 bps sequentially. As of June 30, 2026, cash and cash equivalent balances were $3.92 billion, up from $3.41 billion as of March 31, 2026. Cash flow from operating activities was NT$33.70 billion in the second quarter. Capital expenditures totaled NT$9.73 billion, leading to free cash flow of NT$23.97 billion. UMC completed its first mass-production delivery of 12-inch photonic integrated circuits during the quarter. The milestone demonstrated its high-volume silicon photonics manufacturing capabilities ahead of the planned general availability of its platform in 2027. Management said AI-related products span power management, connectivity, field-programmable gate arrays, advanced packaging and silicon photonics. The company expects AI-related revenues to approach $300 million in 2026 and exceed $1 billion within three years. For the third quarter of 2026, management expects wafer shipments to increase by a high-single-digit percentage sequentially. U.S. dollar average selling prices are projected to remain firm, gross margin is expected in the mid-30% range, and capacity utilization should exceed 90%. The Zacks Consensus Estimate for third-quarter 2026 revenues and earnings is currently pegged at $2.21 billion and 18 cents per share, respectively. UMC raised its 2026 capital expenditure budget to $2 billion from $1.5 billion. The company plans phased investments in Singapore cleanroom capacity and a new fab in Tainan to support silicon photonics and advanced packaging opportunities. Third-quarter capacity is projected to increase to 1.325 million 12-inch-equivalent wafers. Currently, United Microelectronics sports a Zacks Rank #1 (Strong Buy). Some other top-ranked stocks in the broader Zacks Computer and Technology sector are AppFolio APPF, Amkor Technology AMKR and Amphenol APH, each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Shares of AppFolio have declined 19.6% year to date. The Zacks Consensus Estimate for APPF’s 2026 earnings is pegged at $6.90 per share, up by 2.2% over the past seven days, indicating an increase of 30.4% year over year. Shares of Amkor Technology have jumped 8.2% year to date. The Zacks Consensus Estimate for AMKR’s 2026 earnings is pegged at $2.08 per share, unchanged over the past 30 days, indicating a rise of 38.7% year over year. Amphenol shares have surged 11.3% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.87 per share, up by 7 cents over the past 30 days, indicating an increase of 45.8% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Microelectronics Corporation (UMC) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report Amkor Technology, Inc. (AMKR) : Free Stock Analysis Report AppFolio, Inc. (APPF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

United Microelectronics Corporation UMC used its second-quarter 2026 earnings call to emphasize AI-driven growth opportunities, capacity expansion and specialty semiconductor demand. Management highlighted plans to scale silicon photonics and advanced packaging while maintaining a phased investment approach tied to customer commitments. The company also raised its capital expenditure outlook as executives pointed to growing opportunities from AI infrastructure, connectivity and power-related semiconductor demand. UMC delivered second-quarter earnings of 54 cents per ADS, surpassing the Zacks Consensus Estimate of 16 cents. Revenues reached $2.18 billion, beating the Zacks Consensus Estimate of $2.06 billion. United Microelectronics Corporation price-consensus-eps-surprise-chart | United Microelectronics Corporation Quote The company reported consolidated revenues of NT$68.73 billion, up 12.6% sequentially and 17% year over year. Gross margin improved to 32.5%, while operating income increased 32.6% quarter over quarter to NT$14.95 billion. UMC’s wafer shipments increased 10.6% sequentially to 1.129 million 12-inch equivalent wafers, lifting utilization to 85% from 79% in the previous quarter. Revenues from 22nm and 28nm technologies reached a record level, representing 37% of wafer revenues. CEO Jason Wang said UMC expects AI-related business to expand through solutions including power management, connectivity, FPGA, advanced packaging and silicon photonics. He stated that AI-related revenues are projected to approach $300 million in 2026 and exceed $1 billion within three years. Wang noted that AI demand is broadening beyond computing into memory, connectivity and power requirements. He said UMC’s specialty semiconductor portfolio positions the company to participate in these emerging opportunities. UMC’s CEO also identified silicon photonics and advanced packaging as key long-term growth areas, with these businesses expected to expand its addressable market. UMC increased its 2026 capital expenditure budget to $2 billion from the previous $1.5 billion plan. The company said spending will support cleanroom expansion at its Singapore P4 facility and construction of a new fab foundation in Tainan, Taiwan. Wang explained that expansion will be executed in phases based on market validation and customer commitments. The approach is intended to provide capacity flexibility while maintaining capital discipline. CFO Chi-Tung Liu said the board approved nearly $5 billion of investment across 2026 and 2027, with additional phases dependent on customer demand and execution milestones. United Microelectronics expects third-quarter wafer shipments to rise by high single digits, with U.S. dollar ASP remaining firm. Management guided for capacity utilization above 90% and gross margin in the mid-30% range. Wang said demand strength is being supported by power management ICs, sensors and microcontrollers. He also noted that UMC’s 8-inch portfolio is seeing a strong rebound, while mature 12-inch capacity remains well utilized. CFO Liu said higher utilization is the primary driver behind expected gross margin improvement, although depreciation from new facilities will affect margin progression as expansion projects advance. During the Q&A, a JPMorgan analyst asked whether improving utilization could allow gross margins to exceed prior cycle highs. Liu said UMC expects EBITDA margins to improve steadily, while gross margins will depend on depreciation expenses from new capacity investments. A Morgan Stanley analyst questioned customer inventory levels amid uneven semiconductor demand. Wang said UMC remains cautious but does not view current inventory conditions as a level requiring concern. Management also said pricing discussions with customers have become more constructive as industry conditions improve, with stronger pricing trends expected in 2027. UMC highlighted silicon photonics as a differentiating technology, noting its 12-inch platform is designed to provide stronger process control and performance benefits. The company also discussed expanding advanced packaging capabilities across multiple applications. Management said advanced packaging engagement includes more than 10 active customers and more than 35 products under discussion. The company expects future capacity additions to support these opportunities as demand develops. UMC ended the quarter with cash and cash equivalents of NT$124.71 billion and generated NT$23.97 billion in free cash flow during the period. UMC currently sports a Zacks Rank #1 (Strong Buy), reflecting favorable earnings estimate revision trends under the Zacks Rank methodology. The Zacks Rank may change as analysts revise earnings expectations following new company results. You can see the complete list of today’s Zacks #1 Rank stocks here. The stock has a Value Score of C, Growth Score of C, Momentum Score of A and VGM Score of B. Zacks Style Scores range from A to F and evaluate value, growth and momentum characteristics, with stronger scores representing more favorable attributes in each category. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Microelectronics Corporation (UMC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in United Microelectronics Corporation? Here are five stocks we like better. Second-quarter performance improved: Revenue rose 12.6% sequentially to TWD 68.73 billion, while wafer shipments increased 10.6% and utilization climbed to 85%. UMC expects third-quarter shipments to grow at a high-single-digit rate, with utilization above 90% and gross margin in the mid-30% range. AI-related growth is expanding: UMC delivered its first mass-produced 12-inch silicon photonics chip and expects AI-related revenue to approach $300 million in 2026 and exceed $1 billion within three years. However, management cautioned that recovery remains uneven, with handset, PC and consumer demand still weak. Investment spending is rising: UMC increased its 2026 capital-expenditure budget to $2 billion, funding Singapore silicon-photonics expansion and a new Taiwan advanced-packaging facility. The projects could begin production in late 2027 or early 2028, while the Intel 12nm program is expected to enter pilot production in 2027 and become more meaningful in 2028. Global Value: 3 Stocks Under $10 Riding a Weak Dollar United Microelectronics (NYSE:UMC) reported higher second-quarter revenue, wafer shipments and utilization as demand strengthened in communications and consumer applications, while the company raised its 2026 capital-expenditure budget to support silicon photonics and advanced-packaging growth initiatives. Second-quarter revenue rose 12.6% sequentially to TWD 68.73 billion. Gross margin increased to 32.5% from the prior quarter, while utilization improved to 85% from 79%. Wafer shipments climbed 10.6% quarter over quarter to 1.13 million 12-inch wafer equivalents. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Missed Taiwan Semi’s Rise? Try United Microelectronics Net income attributable to shareholders reached TWD 42.26 billion, or TWD 3.39 per share. CFO Chitung Liu said non-operating income, including investment and dividend income, totaled TWD 30 billion during the quarter and contributed to the reported profit. For the first six months of 2026, UMC reported revenue of TWD 129.77 billion, up 11.3% from a year earlier. First-half net income was TWD 58.4 billion, or TWD 4.68 per share. The company ended the quarter with TWD 124.7 billion in cash and total equity of TWD 443.9 billion. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? 3 Large Semiconductor Makers Offering Dividends & Price Growth CEO Jason Wang said UMC expects demand momentum to remain stable across computer, communications and consumer markets in the third quarter. The company forecast high-single-digit growth in wafer shipments, firm U.S.-dollar-denominated average selling prices, gross margin in the mid-30% range and utilization above 90%. Wang said demand for power-management ICs, sensors and microcontrollers is expected to support third-quarter shipments. The company’s 8-inch portfolio is also experiencing a rebound, with 8-inch utilization expected to improve significantly and reach the mid-80% range. UMC’s 12-inch utilization remains above the corporate average, management said. → Innovative ETF Strategies That Are Paying Off This Summer Revenue from UMC’s 22-nanometer and 28-nanometer operations reached a record high in the second quarter. The 22nm business represented 17.5% of quarterly sales, while the combined 22nm/28nm category accounted for 37% of revenue. Technologies below 14nm represented about 52% of revenue. Management said Asia accounted for about 66% of revenue during the quarter, followed by North America at roughly 22%. Specialty offerings represented approximately half of UMC’s revenue, according to Wang. UMC said it made its first mass-production delivery of a 12-inch silicon photonics integrated circuit to a customer during the quarter. Wang described the delivery as a milestone demonstrating the company’s high-volume manufacturing capability, with a silicon photonics platform planned for broader customer availability in 2027. The company defines its AI-related exposure broadly, including power management, connectivity, field-programmable gate arrays, advanced packaging and silicon photonics. Wang said AI-related revenue is projected to approach $300 million in 2026 and could exceed $1 billion within three years. Management said near-term opportunities are emerging in silicon photonics, power and FPGA-related products, particularly on 40nm and 65nm technologies. Wang said the company sees its 12-inch silicon photonics offering as differentiated from 8-inch alternatives because of process-control, performance and yield advantages. UMC is also producing thin-film lithium niobate, or TFLN, modulators and is working on 400G-per-lane technology for 3.2T applications. Wang said AI remains the semiconductor industry’s primary growth driver, with demand extending beyond compute into memory, connectivity and power. However, he said the recovery is not yet broad based, noting that handsets, PCs and notebooks are expected to see year-over-year declines. Inventory levels in smartphones and consumer markets have risen alongside weak end-market demand, while automotive and industrial inventory days remain above historical averages, he said. UMC raised its 2026 capital-expenditure budget to $2 billion from $1.5 billion. The company’s board approved a plan to expand clean-room capacity at its Singapore P4 facility and construct a new fab in Tainan, Taiwan. Wang said the Singapore P4 expansion is intended for silicon photonics capacity, while the Tainan P7 facility will support advanced packaging. The company plans to execute the projects in phases based on market validation, customer alignment and customer commitments. In existing facilities, UMC plans to add power-management and silicon photonics capacity at Singapore P3, while Tainan’s 12A site will receive customized memory-stacking and discrete-through-silicon-via capacity. The company is also establishing TFLN capacity at an 8-inch facility. Management said construction lead times are currently more than 20 months, suggesting production ramps from the new projects could begin in late 2027 or early 2028. Liu said the board has approved nearly $5 billion in total spending to be deployed across 2026 and 2027, with future investment dependent on phased expansion decisions. Liu added that depreciation expense is expected to increase by low-teens percentages annually for at least the next two years as UMC expands facilities. While higher depreciation could affect gross margin, he said management expects the new silicon photonics and advanced-packaging projects to enhance EBITDA margins and support higher profitability over time. UMC said its 12nm cooperation project with Intel is progressing smoothly. Process design kits are expected to be ready in late 2026, with customer design activity and product tape-outs anticipated in 2027. Wang said 2027 would likely represent an early pilot-stage ramp, with production becoming more meaningful in 2028. The company said the Intel-related 12nm business model is expected to be accretive to UMC’s financial model. Management said it remains focused on executing the 12nm program before considering expansion into more advanced process nodes. United Microelectronics Corporation (UMC) is a Taiwan-based semiconductor foundry that provides wafer fabrication and related manufacturing services to a global customer base. Founded in 1980, the company operates as a pure-play foundry, producing integrated circuits for a range of customers including fabless semiconductor companies and integrated device manufacturers. UMC is publicly listed (NYSE: UMC) and focuses on high-reliability manufacturing rather than branding consumer products. UMC's core services encompass wafer fabrication using a portfolio of process technologies, with particular emphasis on mature and specialty nodes that support analog, power-management, radio-frequency (RF), and mixed-signal applications. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "United Microelectronics Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

2026 CAPEX raised to US$2bn to support phased expansion plan Q2 2026 operating income increases 32.6% QoQ while Q3 utilization to exceed 90% Second Quarter 2026 Overview1: Revenue: NT$68.73 billion (US$2.18 billion) Gross margin: 32.5%; Operating margin: 21.8% Revenue from 22/28nm: 37% Capacity utilization rate: 85% Net income attributable to shareholders of the parent: NT$42.26 billion (US$1.34 billion) Earnings per share: NT$3.39; earnings per ADS: US$0.537 TAIPEI, Taiwan, July 29, 2026--(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 second quarter of 2026. Second quarter consolidated revenue was NT$68.73 billion, increasing 12.6% from NT$61.04 billion in 1Q26. Compared to a year ago, 2Q26 revenue increased 17.0%. Consolidated gross margin for 2Q26 was 32.5%. Net income attributable to the shareholders of the parent was NT$42.26 billion, with earnings per ordinary share of NT$3.39. Jason Wang, CEO of UMC, said, "In the second quarter, our wafer shipments increased 10.6% quarter-on-quarter, driven by strong demand in the communication and consumer segments, further improving utilization rate to 85%. Revenue from our 22/28nm business continues to set record highs, with 22nm revenue representing 17.5% of second-quarter sales. Earlier this month, we announced the company’s first mass-production delivery of 12-inch photonic ICs to a customer, a major milestone for UMC that demonstrates the company’s high-volume silicon photonics manufacturing capability on 12-inch wafers as we prepare to launch our silicon photonics platform available for general customer use in 2027." CEO Wang added, "Looking ahead to the third quarter, we expect demand momentum to remain stable across the computer, communication, and consumer segments, with shipments projected to increase by high-single digits. Driven by strong demand for power management ICs, sensors, and microcontrollers, our 8-inch portfolio is seeing a strong rebound, and utilization is expected to improve significantly in the third quarter. With our 12-inch capacity already at a healthy utilization rate supporting core businesses, we must also prepare in advance to ensure UMC is well positioned to capture future opportunities driven by AI. To ensure we are ready to scale rapidly to support our customers, we announced today that our Board of Directors has approved a plan to expand cleanroom capacity at our Singapore P4 facility and to construct a new fab in Tainan, Taiwan. The plan will be executed in phases, enabling UMC to remain focused on capital discipline while flexibly deploying capacity to fulfill customer demand. As a result, 2026 capital expenditure budget will be revised upward to US$2 billion." CEO Wang said, "In the second quarter, UMC was proud to be selected for inclusion in the FTSE4Good TIP Taiwan ESG Index, which evaluates top-performing Taiwan-listed companies based on international sustainability standards, for the tenth consecutive year. For investors interested in learning more about UMC’s sustainability targets and progress, the company’s 2025 Sustainability Report will be available on our website by the end of July." Summary of Operating Results Second quarter operating revenues increased 12.6% sequentially to NT$68.73 billion. Revenue contribution from 40nm and below technologies represented 52% of wafer revenue. Gross profit increased 25.3% QoQ to NT$22.32 billion, or 32.5% of revenue. Operating expenses increased 11.4% to NT$7.91 billion. Net other operating income decreased 4.3% to NT$0.53 billion. Net non-operating income totaled NT$30.24 billion. Net income attributable to shareholders of the parent amounted to NT$42.26 billion. Earnings per ordinary share for the quarter was NT$3.39. Earnings per ADS was US$0.537. The basic weighted average number of shares outstanding in 2Q26 was 12,475,080,302, compared with 12,491,206,358 shares in 1Q26 and 12,484,877,493 shares in 2Q25. The diluted weighted average number of shares outstanding was 12,541,653,000 in 2Q26, compared with 12,583,475,228 shares in 1Q26 and 12,534,082,055 shares in 2Q25. The fully diluted shares counted on June 30, 2026 were approximately 12,527,228,000. Detailed Financials Section Operating revenues increased to NT$68.73 billion. COGS increased 7.4% QoQ to NT$46.41 billion. Gross profit increased 25.3% QoQ to NT$22.32 billion. Operating expenses increased 11.4% QoQ to NT$7.91 billion, as G&A increased 32.2% to NT$2.43 billion, R&D increased 3.8% to NT$4.75 billion and Sales & Marketing increased 6.3% to NT$0.73 billion. Net other operating income was NT$0.53 billion. In 2Q26, operating income increased 32.6% QoQ to NT$14.95 billion. Net non-operating income in 2Q26 was NT$30.24 billion, primarily reflecting the NT$30.05 billion in net investment gain and the NT$0.22 billion in net interest income. In 2Q26, cash inflow from operating activities was NT$33.70 billion. Cash outflow from investing activities totaled NT$7.43 billion, including NT$9.73 billion in capital expenditures, resulting in free cash flow of NT$23.97 billion. Cash outflow from financing activities was NT$10.75 billion, primarily due to NT$5.50 billion redemption of bonds, NT$3.10 billion treasury stock acquired and NT$1.89 billion repayment of bank loans. Net cash inflow in 2Q26 amounted to NT$15.69 billion. Over the next 12 months, the company expects to repay NT$6.40 billion in bank loans. Cash and cash equivalents increased to NT$124.71 billion. Days sales outstanding decreased 1 day to 49 days, while days of inventory decreased 5 days to 75 days. Current liabilities increased to NT$106.31 billion. Long-term credit / bonds decreased to NT$45.57 billion. Total liabilities increased to NT$222.05 billion, while debt to equity ratio increased to 50%. Analysis of Revenue Revenue from Asia Pacific increased to 66%, while business from North America increased to 22% of sales. Business from Europe decreased to 8%, while contribution from Japan decreased to 4%. Revenue contribution from 22/28nm increased to 37% of wafer revenue, while 40nm contribution decreased to 15% of sales. Revenue from fabless customers accounted for 85% of revenue. Revenue from the communication segment accounted for 39%, while business from computer applications was 13% of sales. Business from consumer applications accounted for 32%, while other segments was 16% of revenue. Blended ASP Trend (To view blended ASP trend, please click here for 2Q26 ASP) Shipment and Utilization Rate2 Wafer shipments increased 10.6% QoQ to 1,129K during the second quarter, while quarterly capacity was 1,305K. Overall utilization rate in 2Q26 was 85%. Capacity3 Total capacity in the second quarter was 1,305K 12-inch equivalent wafers. Capacity will increase to 1,325K 12-inch equivalent wafers in the third quarter of 2026. CAPEX CAPEX spending in 2Q26 totaled US$308 million. 2026 cash-based CAPEX budget will be US$2.0 billion. Third Quarter 2026 Outlook & Guidance Quarter-over-Quarter Guidance: Wafer Shipments: Will increase by high-single digit ASP in USD: Remain firm Gross Profit Margin: Mid-30% range Capacity Utilization: 90%+ 2026 CAPEX: US$2.0 billion Recent Developments / Announcements Please visit UMC’s website for further details regarding the above announcements Conference Call / Webcast Announcement Wednesday, July 29, 2026 Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM (London) A live webcast and replay of the 2Q26 results announcement will be available atwww.umc.com under the "Investors / Events" section. About UMC UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry company. The company provides high-quality IC fabrication services, focusing on logic and various specialty technologies to serve all major sectors of the electronics industry. UMC’s comprehensive IC processing technologies and manufacturing solutions include Logic/Mixed-Signal, embedded High-Voltage, embedded Non-Volatile-Memory, RFSOI, BCD etc. Most of UMC’s 12-in and 8-in fabs with its core R&D are in Taiwan, with additional ones throughout Asia. UMC has a total of 12 fabs in production with a combined capacity of more than 400,000 wafers per month (12-in equivalent), and all of them are certified with IATF 16949 automotive quality standards. UMC is headquartered in Hsinchu, Taiwan, plus local offices in the United States, Europe, China, Japan, Korea, and Singapore, with a worldwide total of 20,000 employees. For more information, please visit: http://www.umc.com. Safe Harbor Notice and Disclaimer This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. The words "may," "will," "is/are likely to," "anticipate," "believe," "estimate," "expect," "intend," "plan" and similar expressions are intended to identify a number of these forward-looking statements. These forward-looking statements include, but are not limited to, statements relating to anticipated quarterly Fab capacity, foundry capital expenditure plan and other statements that are not historical information. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: [(i) dependence upon the frequent introduction of new services and technologies based on the latest developments in the industry in which UMC operates; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) risks associated with international business activities; (iv) dependence upon key personnel; (v) general economic conditions, including those related to the semiconductor, communications, consumer electronics and computer industries; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, and outbreaks of contagious diseases; (vii) fluctuations in foreign currency exchange rates; and (viii) geopolitical conflicts, including political relationships between U.S., China and Taiwan.] Further information regarding these and other risks is included in UMC’s filings with the United States Securities and Exchange Commission, including but not limited to UMC’s Annual Report on Form 20-F for the fiscal year ended December 31, 2025. All information provided in this presentation is as of the date of this presentation and is based on assumptions that UMC believes to be reasonable as of this date, and UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. The financial statements included in this presentation are prepared and published in accordance with Taiwan International Financial Reporting Standards, or TIFRSs, recognized by the Financial Supervisory Commission in the Republic of China, or the ROC, which is different from International Financial Reporting Standards, or IFRSs, issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from generally accepted accounting principles in the ROC and generally accepted accounting principles in the United States. - FINANCIAL TABLES TO FOLLOW - View source version on businesswire.com: https://www.businesswire.com/news/home/20260729828497/en/ Contacts Michael Lin / David WongUMC, Investor Relations + 886-2-2658-9168, ext. [email protected] [email protected]

This article first appeared on GuruFocus. Consolidated Revenue: RMB68.73 billion for Q2 2026. Gross Margin: 32.5% for Q2 2026. Net Income: NT$42.26 billion attributable to shareholders for Q2 2026. Earnings Per Share (EPS): NT$3.39 for Q2 2026. Utilization Rate: Increased to 85% in Q2 2026. Total Wafer Shipment: 1.13 million 12-inch wafer equivalents in Q2 2026. Revenue Growth: 12.6% quarter over quarter to NT$68.7 billion. Cash on Hand: NT$124.7 billion at the end of Q2 2026. Total Equity: NT$443.9 billion at the end of Q2 2026. Revenue from 22-nanometer Business: 17.5% of Q2 2026 sales. Capital Expenditure Budget: Increased to US$2 billion for 2026. Warning! GuruFocus has detected 4 Warning Signs with UMC. Is UMC fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. UMC reported a 12.6% quarter-over-quarter revenue growth, reaching 68.7 billion NT. The company's gross margin increased by over 3 percentage points to 32.5%. UMC's wafer shipments increased by 10.6% quarter-on-quarter, driven by strong demand in communications and consumer segments. The company achieved a significant milestone with the first mass production delivery of a 12-inch photonics IC. UMC's 22-nanometer business continues to set record highs, representing 17.5% of second-quarter sales. UMC's gross margin, while improved, is still impacted by higher depreciation expenses due to new facility investments. The consumer electronics demand remains weak, affecting the overall market outlook. UMC's AI-related revenue is projected to be only $300 million in 2026, indicating a slow ramp-up in this segment. The company's expansion plans will lead to increased capital expenditure, raising the 2026 CapEx budget to US $2 billion. There is cautiousness around inventory levels, particularly in the smartphone and consumer segments, which remain higher than historical averages. Q: Can you provide an outlook on UMC's AI-related revenue and the products you are targeting? A: Our AI-related business is driven by specialty semiconductor solutions, including power management, connectivity, FPGA, advanced packaging, and silicon photonics. We expect AI-related revenue to reach approximately $300 million in 2026 and exceed $1 billion in three years. - Jason Wang, CEO Q: What is UMC's view on the overall demand outlook, especially for consumer electronics? A: While consumer electronics demand remains weak, AI is driving broader market momentum. We expect wafer shipments to grow year-on-year, driven by AI and non-AI markets. However, the consumer segment, including handsets and PCs, will see a year-over-year decline. - Jason Wang, CEO Q: Could you elaborate on UMC's capacity expansion plans in Singapore and Tainan? A: We plan to expand cleanroom capacity at our Singapore P4 facility and construct a new fab in Tainan, Taiwan. This phased approach will align with market validation and customer commitments, ensuring long-term capacity assurance and flexibility. - Jason Wang, CEO Q: How will the collaboration with Intel on 12-nanometer technology impact UMC's financials? A: The 12-nanometer cooperation with Intel is progressing well, with product tape-out expected in 2027. While initial production will be at a pilot stage, it will become more meaningful in 2028, contributing positively to our financials. - Jason Wang, CEO Q: What are UMC's expectations for gross margins given the current utilization rates? A: We expect gross margins to improve with higher utilization rates, but increased depreciation from new facilities will impact margins. We aim to enhance EBITDA margins through projects like silicon photonics and advanced packaging. - Chi-Tung Liu, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript.

United Microelectronics Corporation UMC is scheduled to report second-quarter 2026 results on July 29, 2026, before the market opens. The Zacks Consensus Estimate for UMC’s second-quarter 2026 earnings is pegged at 15 cents per share, suggesting year-over-year growth of 25%. The figure has remained unchanged for the past 60 days. UMC’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing the same on one occasion, delivering an average earnings surprise of 31.22%. The Zacks Consensus Estimate for UMC’s second-quarter 2026 revenue is pegged at $2.06 billion, suggesting a year-over-year increase of 2.9%. United Microelectronics Corporation price-eps-surprise | United Microelectronics Corporation Quote United Microelectronics’ second-quarter performance is expected to have benefited from improving demand across its specialty semiconductor portfolio, healthy wafer shipment growth and continued momentum in advanced process technologies. Demand for UMC’s 22nm platform is likely to have remained a key growth catalyst in the to-be-reported quarter. The company continues to see increasing customer adoption for applications spanning display driver ICs, networking chips and microcontrollers. As more customers complete tape-outs and transition toward production, 22nm is expected to have remained an important contributor to revenue growth. A recovery in communications demand, coupled with healthy trends across computer, consumer and industrial markets, is also likely to have supported wafer shipments in the to-be-reported quarter. Growth across both 8-inch and 12-inch portfolios is expected to have improved fab utilization and strengthened operating performance. In addition, UMC’s specialty-focused manufacturing strategy and expanding technology portfolio should continue to support customer engagement despite an evolving semiconductor landscape. The company’s strategic initiatives are also expected to aid long-term growth. Its collaboration with Intel on 12nm manufacturing and recent partnership to advance thin-film lithium niobate (TFLN) photonics for AI infrastructure might have strengthened its competitive positioning and attract additional customer programs in the second quarter of 2026. However, memory supply shortages, ongoing geopolitical tensions, macroeconomic uncertainty and industry volatility are likely to have remained headwinds in the to-be-reported quarter. These factors could influence customer ordering patterns and pricing dynamics, even as underlying demand for specialty semiconductor technologies remains resilient. Our proven model does not conclusively predict an earnings beat for UMC this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. UMC currently has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here. You can see the complete list of today’s Zacks #1 Rank stocks here. Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle. Amphenol APH has an Earnings ESP of +1.12% and sports a Zacks Rank #1 at present. Amphenol shares have gained 16.8% year to date. Amphenol is scheduled to report its second-quarter 2026 results on July 29. ASE Technology ASX has an Earnings ESP of +21.21% and a Zacks Rank #2 at present. ASE Technology shares have surged 148.5% year to date. ASE Technology is set to report its second-quarter 2026 results on July 30. Fortive FTV has an Earnings ESP of +2.82% and a Zacks Rank #2 at present. Fortive shares have gained 9.9% in the year-to-date period. Fortive is set to report second-quarter 2026 results on July 29. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Microelectronics Corporation (UMC) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report ASE Technology Holding Co., Ltd. (ASX) : Free Stock Analysis Report Fortive Corporation (FTV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

GLOBALFOUNDRIES Inc. GFS is increasingly shifting its business toward higher-margin segments, a strategy that appears poised to support further earnings growth in the coming years. During the first-quarter 2026 earnings call, management highlighted strong momentum in silicon photonics, high-performance silicon germanium (SiGe), and technology services, all of which carry margins above the company average. A key growth driver is the Communications Infrastructure & Data Center business, which posted 32% year-over-year revenue growth in the first quarter. Demand for silicon photonics solutions used in AI data centers and optical networking remains robust, while GF’s SiGe capacity is already oversubscribed through 2027. Management noted that these offerings are meaningfully margin accretive and are expected to contribute substantially to long-term revenue and profit expansion. Another emerging earnings lever is Technology Services, which includes intellectual property, software, licensing and engineering services. This segment represented 13% of first-quarter revenues, exceeding expectations. The integration of MIPS and the pending acquisition of Synopsys’ ARC IP business are expected to increase the contribution from software and licensing revenues, which typically generate higher margins than traditional wafer manufacturing. Management expects Technology Services to become a larger share of revenue over time and views it as a durable source of high-quality growth. The benefits of this mix shift are already visible. GFS delivered a first-quarter gross margin of 29%, up 510 basis points year over year, marking its strongest first-quarter margin performance on record. Management attributed much of the improvement to growth in higher-value businesses and expects continued profitability gains as these segments expand. Given the accelerating demand for AI-related networking solutions and the growing contribution from technology services, higher-margin businesses appear well-positioned to fuel GFS’ next phase of earnings growth. GLOBALFOUNDRIES is not alone in pursuing higher-margin opportunities tied to AI infrastructure and advanced connectivity. A notable competitor is United Microelectronics Corporation UMC, which operates in the mature-node foundry market and serves customers across communications, automotive and industrial applications. While UMC benefits from a diversified customer base, GFS has been more aggressive in expanding into silicon photonics, high-performance SiGe and AI-driven networking solutions, areas that offer stronger long-term margin potential. Another relevant competitor is Semtech Corporation SMTC. Semtech has significant exposure to high-speed optical connectivity and data-center infrastructure through its networking and signal-integrity products. However, GFS participates earlier in the semiconductor value chain by manufacturing key silicon photonics and optical-networking components. As AI data-center investments accelerate, GFS’ growing mix of silicon photonics, technology services and licensing revenues could support stronger margin expansion and earnings growth relative to many industry peers. Shares of GlobalFoundries have surged 88.2% in the past six months, outperforming the Zacks Electronics - Semiconductors’ 30.3% growth. Image Source: Zacks Investment Research GFS stock is currently trading at a premium to its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 43.61, as shown in the chart below. Image Source: Zacks Investment Research GFS’ earnings estimates for 2026 and 2027 have trended upward in the past 60 days to $1.89 and $2.62 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 9.9% and 38.6%, respectively. Image Source: Zacks Investment Research GFS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Semtech Corporation (SMTC) : Free Stock Analysis Report United Microelectronics Corporation (UMC) : Free Stock Analysis Report GlobalFoundries Inc. (GFS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: TWD61.04 billion, a 5.5% year-over-year increase. Gross Margin: 29.2%, a 2.5-percentage-point improvement year-over-year. Net Income: TWD15.17 billion, a 50% sequential increase. Earnings Per Share (EPS): TWD1.29, showing significant growth compared to the previous year. Total Equity: TWD406 billion. Cash on Hand: Over TWD100 billion at the end of Q1 2026. Wafer Shipment Growth: Increased by 2.7% sequentially. Capacity Utilization Rate: 79% in Q1 2026. Capital Expenditure (CapEx): USD1.5 billion budget for 2026. 10-nanometer Revenue: Accounted for 14% of total Q1 revenue. Warning! GuruFocus has detected 9 Warning Signs with UMC. Is UMC fairly valued? Test your thesis with our free DCF calculator. Release Date: April 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. UMC reported a year-over-year revenue growth of 5.5% in the first quarter of 2026, driven by increased shipments. Net income attributable to shareholders increased by 50% sequentially, reaching TWD15.17 billion. UMC's 22-nanometer logic and specialty process continue to gain momentum, with 10-nanometer revenue reaching a record high. The company expects strong wafer shipment growth in the second quarter, supported by a rebound in the communications segment. UMC is investing in next-generation technology, including a 12-nanometer collaboration, and has announced a strategic partnership for AI infrastructure development. Revenue was flat or down 1.2% sequentially, and gross margin slightly declined from the previous quarter. The ASP declined slightly in the first quarter due to increased wafer shipments, affecting the blended ASP. UMC faces headwinds from higher depreciation expenses and increased utility costs, impacting gross margins. The company noted a decline in revenue from the Europe region and a decrease in IDM revenue. UMC's Japanese operations are below corporate average in terms of utilization, affecting overall performance. Q: Can you provide more details on the pricing environment and the expected price increases for the second quarter? A: Chi-Tung Liu, CFO, explained that the blended ASP increase in the second quarter is mainly due to mix improvement, particularly from 22 and 28-nanometer technologies. UMC plans to implement a wafer price adjustment in the second half of 2026 to reflect increased costs and support long-term operational excellence. The pricing strategy is based on UMC's product mix, capacity agreements, and long-term partnerships. Q: What is the outlook for gross margins given the improvement in utilization rates? A: Chi-Tung Liu noted that while utilization rates are expected to be in the low 80% range in Q2, gross margin improvements will be offset by higher depreciation and utility costs. UMC is in the peak of its depreciation cycle, and while EBITDA margins may see upside, gross margins face pressure from increased costs. Q: Can you discuss the strong performance in the Communications segment and any related technology plans? A: Chi-Tung Liu highlighted a rebound in the Communications segment, driven by DDI, networking, FPGA, and ISP. UMC is also working on advanced packaging solutions and expects significant revenue growth in this area next year, with more than 35 new tape-outs anticipated in 2026. Q: How does UMC view its growth prospects for the second half of 2026? A: Chi-Tung Liu expressed optimism for the second half of 2026, expecting continued demand across various sectors, including communication, industrial, consumer, and AI-related segments. UMC anticipates high teen percentage growth in its 22-nanometer logic platform and a recovery in the 8-inch segment, supporting a stronger second half. Q: What is UMC's strategy regarding potential memory foundry business opportunities? A: Chi-Tung Liu stated that UMC focuses on differentiated specialty technology and sustainable business opportunities. The company does not pursue short-term opportunities and instead emphasizes its comprehensive technology portfolio, including embedded HV and non-volatile memory. For the complete transcript of the earnings call, please refer to the full earnings call transcript.