UMC Adds NT$100 Billion Investment to Accelerate Singapore-Taiwan Expansion
The second-largest foundry UMC held its earnings call on the 28th, announcing an additional capital expenditure of about US$3.2 billion, equivalent to about NT$100 billion, to accelerate expansion plans in Singapore and Tainan. UMC reported third-quarter revenue of about NT$74.2 billion, profit up nearly 25% quarter-on-quarter, capacity utilization exceeding 90%, and wafer shipments hitting a record high.
Co-CEO 王石 said that looking ahead to 2027, the company expects further operational growth, but with multiple 12-inch fabs approaching full utilization, future shipment growth will be constrained by available capacity. Artificial intelligence remains a key growth driver, and the company is also optimistic about silicon photonics and advanced packaging, aiming to tap into new demand from AI infrastructure as a key engine for future growth.
Full Capacity, Prices to Rise About 10% Next Year
As AI demand continues to heat up, price increase signals have emerged in the foundry industry. With multiple 12-inch fabs of UMC running at full capacity, the market expects average selling prices to rise about 10% next year. In addition, PSMC previously also signaled foundry price increases next year, with increases of up to 20%, showing that demand growth for AI chips and related applications is driving capacity allocation and pricing strategy adjustments, becoming a market focus.
LandMark Signs Four-Year Long-Term Contract, Orders Exceed Full-Year Revenue
Also benefiting from AI and optical communications demand, LandMark also held its earnings call on the 28th, reporting cumulative EPS of NT$13.88 for the first three quarters, with cumulative net profit exceeding NT$1.4 billion. The company increased capital expenditure in response to customer demand, and revealed it has signed a long-term contract of at least 4 years with a US client, with orders on hand already exceeding this year's full-year revenue, and major clients having placed long-term orders covering more than half a year.
LandMark CFO and spokesperson 楊吉裕 said the company expects output to increase to 2.5 times the current level in 2027, and to expand further in 2028, hoping to increase output to about 6 times the current scale within two years. LandMark is benefiting from demand growth for Nvidia's new-generation GPUs and optical communications, and expects operations to continue growing in coming quarters. From UMC's expansion and price adjustments to LandMark's long-term contracts, AI demand continues to drive the semiconductor supply chain. Whether the positives will be reflected in share prices still depends on subsequent revenue, profitability and market valuation. Investing involves risks, please be cautious.