United Microelectronics Corporation (NEW)

Welcome everyone to UMC's 2025 Fourth 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 a question. For your information, this conference call is now being broadcast live over the internet. Webcast replay will be available within two hours after the conference is finished. please visit our website, www.umc.com, under the Investor Relations, Investors Events 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 fourth quarter of 2025. I am joined by Mr. Jason Wong, President of UMC. and Mr. Chi-Dung Liu, the CFO of UMC. In a moment, we will hear our CFO present the fourth quarter financial results, followed by our President's key message to address UMC's focus on the first quarter 2026 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.unc.com under the Investors' Financials section. During this conference, we may 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 will cause actual results to differ materially, including the risks that may be beyond the company's control. For a more detailed description of this risk and uncertainties, please refer to our recent and subsequent filings with the SEC and the IOC security authorities. During this conference, you may view our financial presentation material, which is being broadcast live through the internet. Now, I would like to introduce UMC's CFO, Mr. Chi-Dung Liu. to discuss UNC's fourth quarter 2025 financial results.

Thank you, Michael. I'd like to go through the 4Q25 investor conference presentation material, which can be downloaded or viewed in real time from our website. Starting on page four, the fourth quarter of 2025, consolidated revenue was 61.81 billion NT, with a gross margin around 30.7%. The net income attributable to the stockholder of the parent was 10.06 billion NT, and the earnings per ordinary shares was 0.81 NT dollars. Utilization rate in the fourth quarter stayed the same as the previous one, around 78 percent. For the sequential comparison, revenue grew 4.5 percent quarter-over-quarter to 61.8 billion NT. Gross margin improved to over 30% to now 30.7%, or gross margin of $18.95 billion NT. And the non-operating income remained similar to that of last quarter. And the net income overall attributed to shareholder of the parent is around 10.05 billion NT or EPS of 0.81 in Q4 of 2025. For year-over-year comparison on page six, revenue grew by 2.3 percent to reach 237.5 billion NT for the whole year of 2025. Post-margin rate is around 29 percent or 68.9 billion NT And for the net income attributable to the shareholder of the parent for year 2025 is around 41.7 billion NT or 17.6 percent net income rate. EPS for 2025 was 3.34, which is a decline compared to that of 3.8 in 2024. On page seven, our balance sheet at the end of 2025, cash amounts due more than 110 billion NT with total equity of the company is now 379.8 billion NT dollars at the end of 2025. For ASP on page eight, you can tell for the last three quarter or four, it pretty much remained similar level for our blended ASP for throughout the 2025. For revenue breakdown on page nine, for quarterly comparison, the change is mainly showing in the increase in Asia and Europe with now North America represents about 21% in Q4 of last year. For the full year breakdown on page 10, the change is similar. We see North America dropped from 25% in 2024 to 22% in 2025. For page 11, IDM for Q4 revenue still represent about 20 percent, almost no change. But for the full year number on page 12, IDM account for 19 percent, increased by three percentage points to 19 percent in 2025. For quarterly revenue breakdown by application, it remains almost similar quarter over quarter on page 13. For the annual performance on the application breakdown on page four, consumer increased by three percentage points to 31% from 28% in the previous year. And we continue to see 22 nanometer to be our key driver of growth for the recent quarter and also forward-looking as well. So 22 and 28 revenue in Q4-25 now represents 36 percent of the total revenue pool. On page 16, for the full year, the increase of 22 and 28 revenue is three percentage points, and we also show about two percentage point increase in 40 nanometer on a year-over-year comparison. Capacity remains flat. quarter-over-quarter comparison base, but it was declined by roughly 1% due to the annual maintenance schedule. On page 18, our latest forecast for 2026 KPAC plan is around $1.5 billion, which is slightly declined from $1.6 billion in the year of 2025. The above is a summary of UMC's results for Q4 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, Chih-Tung. Good evening, everyone.