UMC Reports Second Quarter 2026 Results

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."

Story Continues

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."

1 Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending June 30, 2026, the three-month period ending March 31, 2026, and the equivalent three-month period that ended June 30, 2025. For all 2Q26 results, the U.S. dollar amounts have been translated at the weighted-average exchange rate of NT$31.59 per U.S. dollar for the three-month period ended June 30, 2026.

Summary of Operating Results

Operating Results (Amount: NT$ million) 2Q26 1Q26 QoQ %
change 2Q25 YoY %
change Operating Revenues 68,733 61,038 12.6 58,758 17.0 Gross Profit 22,323 17,818 25.3 16,878 32.3 Operating Expenses (7,906 ) (7,099 ) 11.4 (6,467 ) 22.2 Net Other Operating Income and Expenses 533 557 (4.3 ) 409 30.3 Operating Income 14,950 11,276 32.6 10,820 38.2 Net Non-Operating Income and Expenses 30,236 5,367 463.3 (666 ) - Net Income Attributable to Shareholders of the Parent 42,260 16,171 161.3 8,903 374.7 EPS (NT$ per share) 3.39 1.29 0.71 (US$ per ADS) 0.537 0.204 0.121 Exchange rate (USD/NTD) 31.59 31.63 29.28 Note: Sums may not equal totals due to rounding.

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.

COGS & Expenses (Amount: NT$ million) 2Q26 1Q26 QoQ %
change 2Q25 YoY %
change Operating Revenues 68,733 61,038 12.6 58,758 17.0 COGS (46,410 ) (43,219 ) 7.4 (41,880 ) 10.8 Depreciation (14,649 ) (13,719 ) 6.8 (12,317 ) 18.9 Other Mfg. Costs (31,761 ) (29,500 ) 7.7 (29,563 ) 7.4 Gross Profit 22,323 17,818 25.3 16,878 32.3 Gross Margin (%) 32.5 % 29.2 % 28.7 % Operating Expenses (7,906 ) (7,099 ) 11.4 (6,467 ) 22.2 Sales & Marketing (733 ) (689 ) 6.3 (591 ) 23.9 G&A (2,426 ) (1,834 ) 32.2 (1,682 ) 44.2 R&D (4,747 ) (4,575 ) 3.8 (4,194 ) 13.2 Expected Credit Impairment Gain (Loss) (100.0 ) (0 ) - Net Other Operating Income & Expenses 533 557 (4.3 ) 409 30.3 Operating Income 14,950 11,276 32.6 10,820 38.2 Note: Sums may not equal totals due to rounding.

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.

Non-Operating Income and Expenses (Amount: NT$ million) 2Q26 1Q26 2Q25 Non-Operating Income and Expenses 30,236 5,367 (666 ) Net Interest Income and Expenses 218 88 309 Net Investment Gain and Loss 30,045 4,997 326 Exchange Gain and Loss 3 303 (1,280 ) Other Gain and Loss (29 ) (20 ) (20 ) Note: Sums may not equal totals due to rounding.

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 Flow Summary (Amount: NT$ million) For the 3-Month
Period Ended
Jun. 30, 2026 For the 3-Month
Period Ended
Mar. 31, 2026 Cash Flow from Operating Activities 33,698 21,981 Net income before tax 45,186 16,644 Depreciation & Amortization 16,238 15,987 Share of profit of associates and joint ventures (23,606 ) (2,815 ) Income tax paid (2,173 ) (464 ) Changes in working capital & others (1,948 ) (7,370 ) Cash Flow from Investing Activities (7,427 ) (21,348 ) Increase in financial assets measured at amortized cost (1,938 ) (7,101 ) Acquisition of PP&E (8,823 ) (12,526 ) Acquisition of investments accounted for under the equity method (10 ) (643 ) Acquisition of intangible assets (658 ) (681 ) Others 4,001 (397 ) Cash Flow from Financing Activities (10,753 ) (3,686 ) Bank loans (1,894 ) (3,039 ) Redemption of bonds (5,500 ) - Treasury stock acquired (3,096 ) - Others (263 ) (647 ) Effect of Exchange Rate 171 1,411 Net Cash Flow 15,687 (1,641 ) Beginning balance 109,019 110,660 Ending balance 124,706 109,019 Note: Sums may not equal totals due to rounding.

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 Assets (Amount: NT$ billion) 2Q26 1Q26 2Q25 Cash and Cash Equivalents 124.71 109.02 111.99 Accounts Receivable 38.65 35.60 32.38 Days Sales Outstanding 49 50 52 Inventories, net 37.92 38.65 34.02 Days of Inventory 75 80 76 Total Current Assets 230.26 216.44 195.18

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%.

Liabilities (Amount: NT$ billion) 2Q26 1Q26 2Q25 Total Current Liabilities 106.31 79.61 110.39 Accounts Payable 9.06 9.07 8.54 Short-Term Credit / Bonds 11.97 22.89 21.30 Payables on Equipment 7.16 7.98 8.35 Dividends Payable 32.70 - 35.79 Other 45.42 39.67 36.41 Long-Term Credit / Bonds 45.57 47.17 41.60 Total Liabilities 222.05 193.20 211.10 Debt to Equity 50% 47% 63%

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 Breakdown by Region Region 2Q26 1Q26 4Q25 3Q25 2Q25 North America 22 % 21 % 21 % 25 % 20 % Asia Pacific 66 % 65 % 64 % 63 % 67 % Europe 8 % 9 % 11 % 8 % 8 % Japan 4 % 5 % 4 % 4 % 5 %

Revenue contribution from 22/28nm increased to 37% of wafer revenue, while 40nm contribution decreased to 15% of sales.

Revenue Breakdown by Geometry (1) Geometry 2Q26 1Q26 4Q25 3Q25 2Q25 14nm and below % % % % % 14nm 37 % 34 % 36 % 35 % 40 % 28nm 15 % 18 % 17 % 17 % 15 % 40nm 18 % 18 % 17 % 18 % 17 % 65nm 7 % 8 % 8 % 8 % 7 % 90nm 8 % 7 % 7 % 8 % 7 % 0.13um 10 % 10 % 10 % 9 % 9 % 0.18um 4 % 4 % 4 % 4 % 4 % 0.5um and above 1 % 1 % 1 % 1 % 1 %

Revenue from fabless customers accounted for 85% of revenue.

Revenue Breakdown by Customer Type (1) Customer Type 2Q26 1Q26 4Q25 3Q25 2Q25 Fabless 85 % 86 % 80 % 81 % 81 % IDM 15 % 14 % 20 % 19 % 19 %

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.

Revenue Breakdown by Application (1) (2) Application 2Q26 1Q26 4Q25 3Q25 2Q25 Computer 13 % 12 % 12 % 12 % 11 % Communication 39 % 39 % 42 % 42 % 41 % Consumer 32 % 32 % 28 % 29 % 33 % Others 16 % 17 % 18 % 17 % 15 %

(1) Revenue in this section represents wafer sales. (2) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec, keyboard controller, monitor scaler, USB, I/O chipset, WLAN. Communication consists of handset components, broadband, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart cards, toys, etc.

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%.

Wafer Shipments 2Q26 1Q26 4Q25 3Q25 2Q25 Wafer Shipments
(12" K equivalents) 1,129 1,021 994 1,000 967 Quarterly Capacity Utilization Rate 2Q26 1Q26 4Q25 3Q25 2Q25 Utilization Rate 85% 79% 78% 78% 76% Total Capacity
(12" K equivalents) 1,305 1,283 1,305 1,305 1,290

2 Utilization Rate = Quarterly Wafer Out / Quarterly Capacity

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.

Annual Capacity in

thousands of wafers Quarterly Capacity in

thousands of wafers FAB Geometry
(um) 2025 2024 2023 2022 FAB 3Q26E 2Q26 1Q26 4Q25 WTK 6" 5 – 0.15 317 331 328 335 WTK 6" 80 80 78 80 8A 8" 3 – 0.11 857 829 811 765 8A 8" 215 215 212 215 8C 8" 0.35 – 0.11 500 477 473 459 8C 8" 125 125 123 125 8D 8" 0.18 – 0.11 471 473 440 410 8D 8" 118 118 116 118 8E 8" 0.6 – 0.11 522 524 490 469 8E 8" 131 131 129 131 8F 8" 0.18 – 0.11 583 578 570 550 8F 8" 146 146 144 146 8S 8" 0.18 – 0.11 466 455 447 443 8S 8" 117 117 115 117 8N 8" 0.5 – 0.11 996 1,013 996 952 8N 8" 250 250 246 250 12A 12" 0.13 – 0.014 1,629 1,556 1,305 1,170 12A 12" 409 409 402 409 12i 12" 0.13 – 0.040 684 678 655 655 12i 12" 192 172 169 172 12X 12" 0.080 – 0.022 347 318 317 314 12X 12" 95 95 93 95 12M 12" 0.13 – 0.040 471 455 438 436 12M 12" 119 119 117 119 Total(1) 5,163 5,022 4,674 4,458 Total 1,325 1,305 1,283 1,305 YoY Growth Rate 3% 7% 5% 6% (1) One 6-inch wafer is converted into 0.25 (62/122) 12-inch equivalent wafer; one 8-inch wafer is converted into 0.44 (82/122) 12-inch equivalent wafers. Total capacity figures are expressed in 12-inch equivalent wafers.

3 Estimated capacity numbers are based on calculated maximum output rather than designed capacity. The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp-up.

CAPEX

CAPEX spending in 2Q26 totaled US$308 million. 2026 cash-based CAPEX budget will be US$2.0 billion.

Capital Expenditure by Year - in US$ billion Year 2025 2024 2023 2022 2021 CAPEX $ 1.6 $ 2.9 $ 3.0 $ 2.7 $ 1.8

2026 CAPEX Plan 8" 12" Total 10% 90% 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

Apr. 30, 2026 UMC Achieves Highest Corporate Governance Ranking among Taiwan Listed Companies for 12th Consecutive Year May. 14, 2026 UMC Announces Release of 14nm eHV FinFET Platform, Advancing Innovation in Next-Generation Smartphone Displays May. 27, 2026 UMC Shareholders Approve NT$2.60 Cash Dividend at Annual Shareholders' Meeting Jul. 14, 2026 SILITH and UMC Achieve Mass Production Milestone for Silicon Photonics Jul. 29, 2026 UMC Announces Fab Expansion in Singapore and Construction of New Fab in Tainan to Meet Accelerating AI Demand

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)

Dial-in numbers and Access Codes: Taiwan Number: 02 3396 1191 Taiwan Toll Free: 0080 119 6666 US Toll Free: +1 866 212 5567 Other Areas: +886 2 3396 1191 Access Code: 1889529#

A live webcast and replay of the 2Q26 results announcement will be available at
www.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 -

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated Condensed Balance Sheet As of June 30, 2026 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) June 30, 2026 US$ NT$ % Assets Current assets Cash and cash equivalents 3,917 124,706 18.7 % Accounts receivable, net 1,214 38,648 5.8 % Inventories, net 1,191 37,917 5.7 % Other current assets 910 28,988 4.4 % Total current assets 7,232 230,260 34.6 % Non-current assets Funds and investments 4,612 146,853 22.1 % Property, plant and equipment 8,141 259,212 38.9 % Right-of-use assets 234 7,463 1.1 % Other non-current assets 697 22,184 3.3 % Total non-current assets 13,684 435,713 65.4 % Total assets 20,916 665,973 100.0 % Liabilities Current liabilities Short-term loans 88 ...

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