UMC projects 10% average selling price increase for 2027
United Microelectronics Corp (UMC) anticipates a 10% rise in average selling prices starting in the first quarter of 2027, driven by high capacity utilization in mature nodes.
UMC CEO Jason Wang announced during the company's third-quarter earnings call that average selling prices (ASP) are expected to increase by approximately 10% across the full year of 2027. This adjustment follows sustained demand for mature manufacturing processes, where capacity utilization has surpassed 90%.
According to management, the price increases will apply to both 8-inch and 12-inch wafer segments, with the upward trend beginning in the first quarter of 2027. Annual price negotiations for the upcoming period are currently reaching their final stages, signaling a shift in the firm’s pricing strategy as capacity constraints tighten.
Looking forward, UMC aims to diversify its revenue streams through artificial intelligence applications, which the company expects to account for 25% of its total revenue over the next three years. Future growth initiatives are focused on silicon photonics and advanced packaging technologies.
The announcement follows a record-breaking performance in the third quarter of 2026, during which UMC shipped approximately 1.2 million 12-inch wafer equivalents. The firm’s 22nm and 28nm nodes remain significant contributors to the bottom line, together accounting for 35% of total revenue.