UMC expects a significant change in the pricing environment, heading into 2027, with blended average selling price (ASP) to rise by 10 percent in the coming year.
The board of Taiwanese chipmaker United Microelectronic Corp. (UMC) approved $3.2 billion, on Wednesday, to expand its capacity. The timeline for capital expenditure is still under works, according to the company.
UMC expects a significant change in the pricing environment, heading into 2027, with blended average selling price (ASP) to rise by 10 percent in the coming year, supported by strong customer demand.
While AI-related revenue is expected to contribute about 25 per cent of the total revenue of UMC in three years, silicon photonics and advanced packaging have emerged as new growth drivers in the company. However, the demand from the PC segment is expected to decline.
The third quarter revenue of the company grew 25.6 percent, year-on-year, to $2.29 billion and the net income grew by 9.7 per cent to $506.75 million. On the other hand UMC’s shares have risen by 147.5 per cent, outperforming the gain in the broader market which was at 62.4 per cent. The stock closed up at 4.5 per cent on Wednesday, ahead of earning release.
