UMC Adds NT$100 Billion Expansion, LandMark Signs Four-Year US Contract

陳陳柏宏 證券線記者2026-10-28 23:48

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UMC announced additional spending of about US$3.2 billion to expand capacity in Singapore and Tainan, with third-quarter revenue of about NT$74.2 billion, profit up nearly 25% QoQ, and utilization topping 90%. LandMark posted EPS of NT$13.88 for the first three quarters, signed a long-term contract of at least four years with a US customer, with orders on hand exceeding full-year revenue.

UMC Adds NT$100 Billion to Accelerate Singapore-Tainan Expansion

UMC held an 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. Third-quarter revenue was about NT$74.2 billion, profit rose nearly 25% QoQ, and utilization topped 90%. Co-CEO Wang Shi said that looking to 2027, the company expects further operating growth, but with multiple 12-inch fabs near full utilization, future shipment growth will be constrained by available capacity, with AI remaining a key growth driver.

Shipments Hit Record High, Prices Seen Up 10% Next Year

UMC wafer shipments hit a record high, and with multiple 12-inch fabs running full, the market expects average selling prices to rise about 10% next year. In addition, PSMC previously also signaled price hikes for foundry next year, with increases of up to 20%. As demand for AI chips and related applications grows, capacity allocation and pricing strategy at foundries have become a market focus.

Betting on Silicon Photonics to Tap AI Infrastructure

UMC is bullish on silicon photonics and advanced packaging, hoping to tap new demand from AI infrastructure as a key future growth engine. Also benefiting from AI and optical communications demand, LandMark also held an 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 is raising capex to meet customer demand and said it has signed a long-term contract of at least 4 years with a US customer.

LandMark Aims to Expand Output Sixfold in Two Years

CFO and spokesperson Yang Jiyu of LandMark said the company expects output in 2027 to rise to 2.5 times the current level, and to increase further in 2028, aiming to expand output to about 6 times the current scale within two years. LandMark is benefiting from HuiDaShin next-generation GPUs and growing optical communications demand, saying orders on hand have exceeded this year's full-year revenue, with major customers placing orders covering more than half a year, and operations expected to keep growing each quarter. From expansion to price adjustments, AI demand continues to drive the supply chain; whether the positives will be reflected in share prices will depend on subsequent revenue and earnings. Investing involves risk, please be cautious.

FAQ

What is the scale of UMC's newly announced expansion?

UMC announced an additional capital expenditure of about US$3.2 billion, equivalent to about NT$100 billion, to accelerate expansion plans in Singapore and Tainan.

Will foundry prices rise next year?

With UMC shipments hitting a record high and 12-inch fabs near full utilization, the market expects average selling prices to rise about 10% next year; PSMC previously also signaled hikes of up to 20%.

What are LandMark's orders and expansion plans?

LandMark posted EPS of NT$13.88 for the first three quarters, signed a long-term contract of at least 4 years with a US customer, with orders on hand exceeding full-year revenue and major customers placing orders covering more than half a year, planning output at 2.5 times the current level in 2027 and about 6 times within two years.