United Microelectronics Corporation: Capex raise and higher pricing in 2027F GM improvement track is steeper than our expectations; maintain Buy

研报英文原文证据摘录

United Microelectronics Corporation: Capex raise and higher pricing in 2027F GM improvement track is steeper than our expectations; maintain Buy

Global Markets Research

United Microelectronics Corporation 2303.TW 2303 TT 29 July 2026

EQUITY: FOUNDRY

RatingCapex raise and higher pricing in 2027F Remains Buy

Target priceGM improvement track is steeper than our expectations; Increased from TWD 140.00maintain Buy TWD 97.00

Another solid quarter guidance; maintain Buy Closing29 July 2026price TWD 102.50

UMC guided 3Q26E wafer revenue (in USD terms) to grow high-single-digit q-q with a GM

of mid-30% (Fig.2), given a recovery in the utilization rate (UTR) to >90% with 8” likely Implied upside +36.6%

enjoying a steeper improvement on PMIC, sensor and MCU demand. UMC issued price

hike notices to clients in April (news), but we understand it shows flexibility in negotiations Market Cap (USD mn) 39,776.0

(like Vanguard [5347 TT, Buy], but unlike TSMC [2330 TT, Buy]) and thus, a more ADT (USD mn) 1,067.8

significant change in the price scheme could occur in 1Q27F, in which we assume a 10-

15% increase in prices for both 8” and 12” fabs (following a 0-5% price increase in Relative performance chart

2H26F). We tentatively do not assume any price hike beyond 1Q27F, though this might

be conservative if AI demand strength consumes even more resources (particularly

human resources) from TSMC and Samsung’s (005930 KS, Buy) foundry arm (report).

Despite an increase in the capex budget from USD1.5bn to USD2bn to fund expansion in

Singapore and Tainan for silicon photonics (SiPh) and advanced packaging solutions

possibly altering the depreciation curve, we believe a more robust pricing outlook,

together with a likely resilient UTR outlook for 2026-27F and an enhanced mix should