Stock Track | United Microelectronics Soars 7.36% Intraday on TSMC Capacity Shift, Intel Partnership, and Strong Earnings

Stock Track
Jun 24

United Microelectronics Corporation (UMC) saw its stock price soar 7.36% during intraday trading on Wednesday, marking a significant upward movement for the semiconductor foundry.

The rally is partly attributed to reports that Taiwan Semiconductor Manufacturing Company (TSMC) has reduced its 28-nanometer wafer-start capacity by more than 25% since the beginning of the year as part of a node reallocation strategy. This capacity adjustment has prompted some of TSMC's 28nm customers to divert their orders to UMC, positioning UMC as a direct beneficiary of this supply chain shift.

Additional positive catalysts driving investor sentiment include a strategic partnership with Intel to co-develop 3nm and 12nm process technologies, the successful entry of UMC's embedded deep trench capacitor technology into Qualcomm's supply chain, and the company's strong fundamental performance highlighted by a 108% year-over-year surge in first-quarter net profit. Market expectations of selective price increases in the second half of the year are further bolstering the earnings outlook.

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