UMC Approves $3.2B Expansion Amid Strong Q3 Results

United Microelectronics (UMC) is significantly expanding its manufacturing capacity with a $3.2 billion USD capital expenditure, a move signaled by robust third-quarter financial results and a growing demand for advanced technologies. The expansion, approved by the company’s board on October 28, 2026, will be deployed across facilities in Singapore and Taiwan, aiming to bolster production capabilities and meet evolving customer needs.

UMC’s Q3 2026 performance demonstrated strong growth, with consolidated revenue reaching NT$74.24 billion ($23.2 billion USD), an increase of 8.0% sequentially and 25.6% year-over-year. The company achieved a gross profit margin of 34.0% and a net profit attributable to parent company shareholders of NT$16.43 billion ($514 million USD). Wafer shipments reached a record high of over 1.2 million 12-inch equivalents, driving a capacity utilization rate of 92%. Notably, 22/28nm wafers accounted for 35% of total wafer revenue, with the 22nm process alone contributing 18.3% to overall sales.

According to UMC’s CEO, Wang Shi, the strong performance was fueled by sustained demand across all end markets. The company is strategically shifting resources to accommodate growing demand for advanced packaging and silicon photonics, and is converting existing capacity to support these emerging areas. This strategic realignment is supported by ongoing collaborations with clients on these new technologies, which are expected to contribute to future growth. The capital expenditure is intended to accelerate the expansion timeline and align with customer product roadmaps.

The board's approval of the $3.2 billion investment builds on a previously announced $2.0 billion capital expenditure plan, underscoring UMC’s confidence in long-term demand. Looking ahead to Q4 2026, UMC anticipates continued momentum, with wafer shipments expected to increase by a low-single-digit percentage, stable average selling prices, and a gross profit margin comparable to the preceding quarter. Capacity utilization is projected to remain in the low-90% range, demonstrating continued strong demand.