Recently, stocks in the optical communications sector have shown strong performance. While the market index plunged over a thousand points, United Microelectronics (3081-TW) remained near its flat line. Let’s analyze this together with Professor Qinglong.

As AI servers become faster, internal data transmission in data centers must also upgrade. United Microelectronics (3081-TW) primarily manufactures epitaxial wafers and laser chips essential for optical communication, positioning itself upstream in the supply chain. Though small, these components are indispensable light sources for high-speed optical modules. With 800G modules ramping up and 1.6T modules beginning deployment, United Microelectronics’ shipment momentum has clearly strengthened.

Recent revenue figures reflect rising demand. In June 2026, United Microelectronics reported NT$420 million in revenue, up 3.7% month-on-month and 128.1% year-on-year, setting a new monthly high. Q2 2026 revenue reached NT$1.221 billion, a 35% increase quarter-on-quarter. Cumulative revenue for the first half of the year hit NT$2.125 billion, up approximately 111% year-on-year, clearly demonstrating that AI-driven optical communication demand is now reflected in shipments.

The product currently drawing the most market attention from United Microelectronics is the continuous-wave laser used in silicon photonics modules. In simple terms, silicon photonics technology still requires a stable laser light source to transmit large volumes of data quickly. United Microelectronics can deliver products from upstream epitaxial growth to laser chip fabrication and has secured customers among multiple optical module manufacturers, securing a critical role in the AI high-speed transmission upgrade.

Future growth will primarily depend on 800G and 1.6T high-speed optical modules. Institutional analysts estimate that global shipments of 800G+ optical modules could rise from approximately 25 million units in 2025 to around 55 million in 2026, potentially surpassing 100 million units by 2027. Higher specifications demand greater laser power and stability, driving demand for high-end laser chips.

Improvements in product mix are also crucial. As the proportion of AI silicon photonics products increases, shipments of higher-priced products have grown, pushing United Microelectronics’ Q1 gross margin close to 55%. If 800G and 1.6T products continue to scale up and production capacity expands, gross margins could remain at a relatively strong level, with profit growth potentially outpacing revenue growth.

To meet order demand, United Microelectronics is upgrading part of its wafer manufacturing process from 2-inch to 3-inch wafers. This allows more chips to be produced per batch, increasing output and potentially lowering costs. The company has added approximately NT$3 billion in equipment investment to expand epitaxial and chip fabrication capacity. Based on current expansion plans, production capacity by the end of 2027 is expected to more than double compared to the end of 2026.

Another key factor is the upstream indium phosphide (InP) substrate. This material is ideal for high-speed optical communication but has limited global supply. United Microelectronics has signed a five-year long-term supply contract with Japan’s Sumitomo Electric, helping mitigate material shortage risks. Institutional analysts currently estimate the company’s 2026 revenue could approach NT$5 billion, with EPS potentially exceeding NT$18, though final results will depend on new capacity ramp-up and high-end product shipment progress.

Looking ahead, three key factors will determine United Microelectronics’ trajectory: whether 800G and 1.6T shipments can continue, whether the 3-inch process and new capacity can be successfully deployed, and whether raw material supply remains stable. As AI data centers continue to expand, demand for laser light sources is likely to grow. However, with current market expectations already high, any shortfall in shipments, margins, or expansion progress could lead to increased stock price volatility. To be the first to know which stocks offer buying opportunities at low levels, join Professor Qinglong’s official LINE, enter @ai8085, or click the link below the article. Free CALL alerts will be provided during and after trading hours, helping you master the present and see the future.

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Source: Analyst Tsai Ching-Lung – Moore Investment Advisory

The individual securities recommended by our company have no improper financial interest. Past performance does not guarantee future profits. Investors should make independent judgments, conduct careful evaluations, and bear investment risks on their own.

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  • Source: PR Times
  • Category: New Product