News
UMC's November Sales Rise 5.91% Year-over-Year as VIS and SMIC Expand 28-90nm Capacity
Friday, December 5, 2025 at 03:10 AM
UMC announced consolidated revenue of NT$21.23 billion for November, a 5.91% increase year-over-year, driven by improved demand in mature process areas like automotive and PMIC applications. The report also mentions that competitors VIS and SMIC are continuing to expand their production capacity in the 28-90nm process area, and UMC is reportedly making progress on its 12nm FinFET project with Intel in Arizona.
Context
UMC reported strong November consolidated sales of NT$21.23 billion, marking a 5.91% year-over-year increase, despite a slight 0.28% month-over-month dip. This performance indicates a gradual recovery in demand for mature process wafers, particularly in consumer electronics, which are expected to enter a restocking cycle from year-end into Q1 2026. Stable demand from automotive and industrial control sectors for UMC's 40/55nm and 28nm nodes is also contributing to improved utilization rates.
However, the broader market faces challenges as competitors like VIS and SMIC aggressively expand 28-90nm capacity, potentially leading to an oversupply and intensifying competition in mature process technologies. In response, UMC is proactively managing costs, reportedly seeking a 15% price reduction from suppliers starting in 2026. The company's 12nm FinFET collaboration with Intel in Arizona is not expected to reach mass production until 2027, while its 22nm process development is progressing, with increased wafer shipments anticipated.
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