United Microelectronics Corporation (NEW)

Welcome everyone to UMC's 2026 Third Quarter Earnings Conference Call. All lines have been placed in 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 is finished. Please visit our website www.umc.com under the Investor's 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 2026. I'm joined by Mr. Jason Wang, CEO of UMC. and Mr. Chi-Tung Liu, the CFO of UMC. In a moment, we will hear our CFO present the third quarter financial results, followed by our CEO's key message to address UMC's focus and fourth quarter 2026 guidance. Once our CEO and CFO complete their remarks, there will be a Q&A session. UNC'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 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 presentation materials. which is being broadcast live through the internet. Now, I would like to introduce UMC's CFO, Mr. Chi-Tung Liu, to discuss UMC's third quarter 2026 financial results.

Thank you, Michael. I'd like to go through the third quarter 2026 investor conference presentation material which can be downloaded or viewed in real time from our website. Starting on page four, the third quarter of 2026 Consolidated revenue was 74.24 billion NT, with gross margin rate at 34%. Net income attributable to the shareholder of the parent was 16.43 billion NT, and the earnings per ordinary share were 1.32 NT dollars. Capacity utilization rate in the third quarter reached 92%, compared to 85% in the previous quarter. And overall, EPS for the quarter was 1.32 NT, and on page 5, revenue grew 8% sequentially to reach 74.2 billion NT. As we stated earlier, gross margin rate also improved from 32.5% in the previous quarter to 34% in this quarter, or NT, 25.2 billion NT dollars. And EPS per U.S. ADS is 0.206 U.S. dollars. For the year-over-year comparison on page 6, revenue grew 16.1% to 204 billion NT. And gross profit also grew 30.8% year-over-year. to 65.3 billion, or 32% of the gross margin rate. With the help of the non-operating income, overall net income attributable to the shareholder of the parent grew 136.5% year over year to reach 74.86 billion NT for the first nine months of the year. EPS for the first three quarters reached $6 in NT dollar terms or $0.945 per ADS in US dollar terms. On page seven, our balance sheet at the end of third quarter, total equity is $470 billion NT dollars with cash account for about $142 billion on the September 30th. For blended ASP in the third quarter was relatively stable remain firm compared to the previous quarter on page eight. For revenue breakdown on page nine, there's very little change for quarter two compared to quarter three of 2026 for revenue breakdown by geography. On page 10, Our revenue breakdown by customer type also remained virtually unchanged for IDM with about 14% of the total revenue and fabulous account for the others. For revenue breakdown by application, consumers stayed unchanged at around 32% when communication and computer also stayed quarter over quarter unchanged. On page 12, our 22 and 28 nanometer revenue still account for more than one-third, reach about 35% of the total pie chart, and 40 nanometer is around 16%, and 65 nanometer is about 19%. Our quarterly capacity continue to increase slightly, mainly coming from our 12I facility in Singapore. and for quarter four of 2026, we expect the capacity for overall UMC reach about 1.33, 12-inch equivalent, 1.33 million for 12-inch equivalent capacity by Q4 2026. And capacity compared to the last quarter's estimate still remain unchanged around The above is the summary of UMC results for third quarter of 2026. More details are available in the report, which has been posted on our website. I will now turn the call over to CEO of UMC, Mr. Jason Wang. Thank you, Chi-Tung. Good evening, everyone.