United Microelectronics to selectively increase prices in the second half of the year, with comprehensive price negotiations starting in 2027

According to a report in the Economic Daily, Taiwan's wafer foundry, United Microelectronics Corporation (UMC), held its regular shareholders' meeting on Tuesday, where CFO Liu Qi Dong disclosed that the company plans to initiate selective price increases in the second half of 2026 and negotiate a more comprehensive price adjustment with customers in 2027.

Liu Qi Dong stated that the company's operational performance in the second half of the year is expected to be better than the first half, with business showing a gradual increase in momentum. Among them, the average capacity utilization rate in the second quarter is about 85%, with strong demand for power management chips, and the shipment proportion of 22-nanometer processes has increased, becoming the main driver for revenue growth.

Cost pressure mainly comes from the expansion of the Singapore plant. Liu Qi Dong expressed that while the company has primarily controlled costs through diversified procurement and process optimization, the higher fixed costs associated with the expansion of the Singapore plant have put the company under greater pressure, leading to a decision to selectively increase prices for some products in the second half of the year.

Regarding next year's pricing arrangements, Liu Qi Dong indicated that in 2027, the company will negotiate a more comprehensive price adjustment with customers.

"UMC is not an opportunist; the main goal is to continuously invest and serve customers."

The expansion plan in Singapore is still progressing. Liu Qi Dong stated that the current monthly production capacity of the Singapore plant is about 12,000 to 13,000 wafers, with the goal of increasing to 18,000; at the same time, to meet customer demand, the production capacity of the silicon interlayer will also be increased from 3,000 to 6,000 per month.