Reports 17% Decline in Full-Year 2025 Net Income and EPS; Proposes Lower Dividend

summarizeSummary

United Microelectronics Corporation reported a 17.3% decrease in full-year 2025 net income and a 17.7% drop in EPS, leading to a proposed lower cash dividend of NT$2.60 per share. This financial decline occurred despite revenue growth, driven by lower average selling prices and increased costs.

check_boxKey Events

• Full-Year 2025 Net Income and EPS Decline

  Net income decreased by 17.3% to NT$40,360 million (US$1,287 million) and basic earnings per share fell by 17.7% to NT$3.30 in 2025, compared to 2024.

• Gross Margin and Operating Income Contract

  Gross margin decreased from 32.6% in 2024 to 29.0% in 2025, and operating income declined by 14.8% to NT$43,949 million (US$1,401 million), primarily due to a 5.4% drop in average selling prices.

• Lower Cash Dividend Proposed

  The company proposed a cash dividend of NT$2.60 per common share for 2025, a reduction from the NT$2.85 per share paid in 2024.

• Strategic Partnerships and Technology Development

  UMC is advancing its 12nm collaboration with Intel (production expected 2027), signed an MOU with Polar Semiconductor for U.S.-based 8-inch production, and licensed imec's iSiPP300 silicon photonics process for a new 12-inch platform.

auto_awesomeAnalysis

United Microelectronics Corporation's annual report for fiscal year 2025 reveals a significant decline in profitability, with net income falling by 17.3% and basic EPS by 17.7% compared to 2024. This was primarily driven by a 5.4% decrease in average selling prices and higher operating costs, despite a modest 2.3% increase in operating revenues and improved capacity utilization. The company has proposed a lower cash dividend of NT$2.60 per share for 2025, down from NT$2.85 in 2024, reflecting the weaker financial performance. While the report highlights several positive long-term strategic initiatives, such as an MOU with Polar Semiconductor for U.S.-based 8-inch production, a silicon photonics licensing agreement with imec, and progress on the 12nm Intel collaboration, these are overshadowed by the immediate financial downturn. Investors should note the contrast between these 2025 full-year results and the recently announced strong Q1 2026 performance, suggesting a potential rebound in the current fiscal year.