en.Wedoany.com Reported - On July 6, wafer foundry United Microelectronics Corporation (UMC) announced its consolidated revenue for June this year reached NT$23.125 billion, up 0.79% month-over-month and 22.8% year-over-year. The company's second-quarter consolidated revenue reached NT$68.733 billion, up 12.6% quarter-over-quarter and 16.97% year-over-year, hitting a new high in nearly 15 quarters. Cumulative revenue for the first half of 2026 reached NT$129.771 billion, up 11.28% year-over-year.
UMC has issued price hike notices to customers starting this July. Due to rising raw material costs and the expansion of its Singapore fab, the company will selectively adjust prices for new process technologies and new orders, and will engage in comprehensive price negotiations with customers next year. With the recovery in demand for power semiconductors in mature process nodes and strong order demand from major wafer foundries in the second half of the year, industry insiders expect UMC's performance in the second half to still outperform the first half.
In its previous earnings call, UMC forecasted that second-quarter wafer shipments would increase by 7% to 9% quarter-over-quarter, with average selling prices in US dollars rising slightly by 1% to 3%, gross margins remaining stable at around 30%, and capacity utilization improving to over 80%. This growth is primarily driven by a significant recovery in demand from the communications sector, along with steady demand from the computer, consumer electronics, and industrial markets, with notable increases in both 8-inch and 12-inch wafer shipments.
At the shareholders' meeting held in May, UMC Chief Financial Officer Liu Qidong responded to the company's pricing strategy, stating that UMC is not adopting "opportunistic price hikes" but aims to reflect actual investments in technology upgrades, supply chain security, and global expansion. He noted that this year, due to rising raw material prices, higher production costs at the Singapore fab, and continuous investment in new technology R&D, the company faces greater cost pressures than in the past.
The specific price adjustment arrangements are divided into three categories: customers with long-term contracts will continue to fulfill their agreements without price adjustments; for the second half of 2026, small selective adjustments will be made for new orders, new processes, and new wafer starts; and in 2027, more comprehensive price negotiations are expected to begin. Liu Qidong expressed hope to re-discuss the pricing structure with customers from a "value perspective."
Liu Qidong emphasized that customers actually understand the cost issues in the current overall industry environment. The market expects that if a comprehensive price hike is initiated next year, the increase could be significantly higher than this year's level.
