United Microelectronics Corporation (NEW)

Welcome everyone to UMC's 2025 Third Quarter Earnings Conference Call. All lights have been placed on mute to prevent background noise. After the presentation, there will be a question and answer session. Please follow the instructions given at the time if you would like to ask the question. For your information, this conference call is now being broadcasted live over the internet. Webcast replay will be available within two hours after the conference has finished. please visit our website, www.umc.com, under the Investor Relations Investors Event section. Now, I would like to introduce Mr. Michael Lin, Head of Investor Relations at UMC. Mr. Lin, please begin.

Thank you, and welcome to UMC's conference call for the third quarter of 2025. I'm joined by Mr. Jason Wang, President of UMC, and Mr. Chi-Dong Liu, the CFO of UMC. In a moment, we will hear our CFO present the third quarter financial result, followed by our president's key message to address UMC's focus on fourth quarter 2025 guidance. Once our president and CFO complete their remarks, there will be a Q&A session. UMC's quarterly financial reports are available at our website, www.umc.com. under the investor's financial section. During this conference, we make forward-looking statements based on management's current expectations and beliefs. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially, including the risks that may be beyond the company's control. For a more detailed description of these risks and uncertainties, please refer to our recent and subsequent filings with the SEC and the ROC security authorities. During this conference, you may view our financial presentations material, which is being broadcast live through the Internet. Now, I would like to introduce UMC's CFO, Mr. Chidong Du, to discuss UMC's third quarter 2025 financial results.

Thank you, Michael. I'd like to go through the third quarter 2025 investor conference presentation material, which can be downloaded or viewed in real time from our website. Starting on page four, in third quarter of 2025, consolidated revenue was $59.13 billion, with gross margin at 29.8%. Net income attributable to the stockholder of the parent was $14.98 billion. and the earnings per ordinary share were $1.2 NT. Capacity utilization rate climbed to 78% in that quarter, with wafer shipment just marked 1 million 12-inch equivalent wafers. On page five, on the sequential comparison, third quarter revenue of $59.12 billion increased slightly compared to the previous quarter, mainly due to higher wafer shipment, although the NT dollar exchange rate was an unfavorable factor of around 3%. Gross margin also climbed on back of the better capacity utilization rate to 29.8%. And net income reached nearly 15 billion NT dollars, or an EPS of 1.2 per share in NT dollar terms. On year-over-year comparison on page 6, for the first three quarters, revenue grew 2.2% year-over-year to $175.7 billion NT. Gross margin was around 28.4%, or nearly $50 billion NT for the first three quarters of 2025. Overall net income for the first three quarters is down to 2.54 NT dollars per share compared to 3.12 in the previous three quarters of 2024. Page 7 cash still above 100 billion NT and total equity of the company is now 361 billion NT. at the end of third quarter of 2025. ASP on page eight shows the remain firm for the past two quarters. On page nine for revenue breakdown, we can see that North America represent about 25% of the total revenue in the third quarter, which is 5% higher compared to 20% in the previous quarter. On the contrary, Asia declined by nearly 4 percentage points to 63% in the third quarter of 2025. Idea versus cyber remains unchanged on page 10 for the third quarter of 2025. On page 11, we noticed the communication and computers age up in terms of sales mix. when consumer declined by nearly 4%, 4 percentage point to 29% in the third quarter. On page 12, the segment sales breakdown by technology, 22 and 28 still remain our main technology node. When 22 continue to climb in terms of percentage, total 22 and 28 revenue reach about 35%. 40 nanometer and 65 nanometer revenue somewhat unchanged in about 17% and 18% respectively. For our quarterly capacity for the third quarter, we see minor increase coming out of our 12X, Shaman Fab, which now the monthly capacity is nearly 32,000 wafer per month. and total available capacity will remain flat for the coming quarter. On the last page of my presentation, our annual capacity is heading to our budget number of 1.8 billion, with 90% in 12 inch and 8 inch. The above is a summary of UMC results for third quarter of 2025. More details are available in the report, which has been posted on our website. I will now turn the call over to President of UMC, Mr. Jason Wong. Thank you, Qilong.