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Mar 31, 2025
UMC Q1 2025 Earnings Report
UMC reported a quarterly net income of $234 million and revenue of $1.74 billion for Q1 2025.
Key Takeaways
UMC delivered stable Q1 2025 results, driven by strong 22nm demand. Despite a decline in gross margin and net income quarter-over-quarter, the company maintained solid operational efficiency and inaugurated a new fab in Singapore to expand future 22nm capacity.
22nm revenue jumped 46% QoQ, now making up 37% of total sales.
Net income was $234 million despite a 4.2% drop in revenue compared to Q4 2024.
Cash flow from operations was robust at $718.3 million, with $279.2 million in free cash flow.
UMC inaugurated a new 22nm-capable fab in Singapore to support future growth and supply chain resilience.
Forward Guidance
UMC expects a moderate rebound in wafer demand in Q2 2025 with improvements in utilization and stable ASPs, while remaining cautious about long-term demand volatility.
Positive Outlook
- Wafer shipments projected to grow 5-7%
- Gross margin expected to improve to ~30%
- Capacity utilization to rise to mid-70% range
- Continued strong demand for 22nm products
- New Singapore fab provides additional capacity
Challenges Ahead
- Macroeconomic uncertainty and tariff impact
- Cautious wafer demand outlook for H2 2025
- Blended ASPs to remain flat
- Cost pressures from technology investments
- Slower-than-expected recovery in some segments
Historical Earnings Impact
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Avg. Return Before/After Earnings
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