UMC: H2 Performance Expected to Outperform H1, Comprehensive Price Negotiations in 2027

HSINCHU (CNA) - UMC Chief Financial Officer Liu Chi-tung stated today that the company's performance in the second half of the year is expected to be better than the first half. To cope with rising costs, UMC will implement selective price increases in the second half of this year and plans to conduct more comprehensive price adjustment negotiations with clients in 2027. UMC held its annual shareholders' meeting today. Liu told reporters that market demand for power management chips is strong, with an average capacity utilization rate of about 85% in the second quarter. He expects second-half performance to outperform the first half, showing a gradual warming trend. The increase in the proportion of 22nm processes is the main driver of growth. Liu stated that UMC usually deals with rising costs through multiple sourcing and process simplification. However, due to the high cost of expanding the Singapore plant, the company faces greater difficulties and will begin selective price hikes in the second half of this year. Liu said, "We will conduct more comprehensive price adjustment negotiations with clients in 2027, but UMC is not being opportunistic; our main goal is to continue investing and serving our customers." Regarding the Singapore expansion plan, Liu said the current monthly capacity of 12,000 to 13,000 wafers is expected to expand to 18,000. Additionally, in response to client demand, silicon interposer capacity will be expanded from 3,000 to 6,000 wafers.