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報告_Citi_聯電2303_3Q26_20261028

更新 2026-10-29

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報告_Citi_聯電2303_3Q26_20261028_001.png 14.4KB 真資料圖 UMC 股價走勢小圖(2025-10 至 2026-10 近一年),由約 40 元漲至高點約 170 後回落至約 120
報告_Citi_聯電2303_3Q26_20261028_002.png 143.9KB 真資料圖 Figure 2 UMC 各製程節點營收(NT$mn,2Q23–3Q26 堆疊柱,22/28nm 為最大塊,3Q26 總額約 74,000)與 Figure 3 各節點營收占比(3Q26 22/28nm 35%、40nm 16%、65nm 19%)
報告_Citi_聯電2303_3Q26_20261028_003.png 34.7KB 真資料圖 Figure 4 UMC 各應用別營收(NT$mn,2Q23–3Q26,通訊/電腦/消費/其他堆疊,3Q26 約 74,000,通訊最大)
報告_Citi_聯電2303_3Q26_20261028_004.png 54.8KB 真資料圖 Figure 5 UMC 各應用別營收占比(3Q26 通訊 39%、電腦 13%、消費 32%、其他 16%)
報告_Citi_聯電2303_3Q26_20261028_005.png 41.5KB 真資料圖 Figure 7 UMC 12 個月 forward P/E 河流圖(2010–2026,倍數線 3.8x/7.4x/11.0x/14.6x/18.2x,股價 2026 年上行至 18.2x 線附近)
報告_Citi_聯電2303_3Q26_20261028_006.png 54.3KB 真資料圖 Figure 8 UMC 12 個月 forward P/B 河流圖與 ROE 曲線(倍數線 0.5x/1.2x/1.8x/2.5x,ROE 2021 年高點約 28%、2025 年低點後回升至約 22%,股價 2026 年突破 2.5x 線)
報告_Citi_聯電2303_3Q26_20261028_007.png 88.8KB 真資料圖 Citi Bull/Bear:Bull NT$150(+17%)、Base NT$143(+12%)、Bear NT$100(-22%),附 2025-10 至 2026-10 股價線(28 Oct 26 收 NT$128.00)與三情境虛線預測
報告_Citi_聯電2303_3Q26_20261028_008.png 188.7KB 真資料圖 Citi 評等與目標價歷史(Laura Chen):評等/目標價變動標記 25-Jan-24 *2 TP 52.8 至 29-Jul-26 評等 1 TP 125(30-Apr-26 TP 88、23-Jan-26 TP 75);下半為 Short-Term View:29-Jul-26 加入、27-Oct-26 移除(股價 122.5)

原始內容

Prepared for [讀者資訊已遮蔽] citi

28 Oct 2026 09:15:42 ET │ 15 pages

UMC (2303.TW)

AI growth and pricing uptrend

CITI'S TAKE

UMC's 2Q26 earnings were below ours and Street's estimates due to nonoperating loss. Yet GM/OPM of 34%/25% were largely in-line with consensus but lower than our estimate with OP of NT$18.6bn (up 25% QoQ, 68% YoY). The company expects low single digit QoQ wafer shipment growth and ASP to remain firm into 4Q26. We keep our Buy rating with TP higher to NT$143 reflecting better UTR and pricing outlook into 2027.

10% blended ASP increase into next year - UMC expects blended ASP to rise about 10% year over year in 2027; The improvement reflects both a firmer pricing environment and a richer mix, with inflation and higher costs also part of customer discussions. Management expects pricing to begin improving in Q1, but higher depreciation and material costs may limit GM expansion. The company expects better profitability for its new business; however, depreciation is expected to grow at a high-single-digit rate or more in 2027, with further increases possible in 2028. Management aims to maintain healthy EBITDA margins and overall profitability. We are looking for steady GM and EBITDA expansion margin trend ahead.

25% revenue contribution coming by 2029 - UMC previously mentioned that its AI-related revenue to reach US$300mn in 2026 and exceed US$1bn within 3 years. The management further elaborates planned monthly capacity of about 18K wafers for silicon photonics, 22K for silicon capacitors and 20K for modulators, with initial installations from late 2028 and planned scale by 2030. Management said expansion is tied to customer commitments and sees AI-related revenue rising from about US$300m in 2026 to roughly 25% of total revenue by 2029; it does not currently believe planned industry capacity will outpace demand. UMC sees potential advantages in combining photonics with TFLN modulators and advanced packaging, and said interest extends beyond early partner, HyperLight.

Maintain Buy on better business recovery and new business engagement - We lower our 2027/2028 EPS estimate by 10%/8% reflecting prolonged weakness in consumer demand and potential new capacity ramp up delay due to supply chain long lead time. Yet we see better visibility for UMC on its better UTR and pricing trends as well as strong AI growth potential in the longer term. We keep our Buy rating with TP NT$143 (18X of our 2027/28 EPS estimate, vs 15x of 2027 previously).

Earnings Summary

Year to 31 Dec Net Profit (NT$M) Diluted EPS (NT$) EPS growth (%) P/E (x) P/B (x) ROE (%) Yield (%)
2024A 47,211 3.80 -23.0 33.7 4.3 12.8 2.2
2025A 41,716 3.34 -12.1 38.3 4.2 11.0 1.9
2026E 93,189 7.47 123.5 17.1 3.6 22.5 4.3
2027E 92,329 7.40 -0.9 17.3 3.4 20.1 4.3
2028E 105,177 8.43 13.9 15.2 3.2 21.6 4.9

Source: Powered by dataCentral

See Appendix A-1 for Analyst Certification, Important Disclosures and Research Analyst Affiliations.

n Buy

Price (28 Oct 26 13:30)

NT$128.00

Target price NT$143.00↑

from NT$125.00

Expected share price

return

11.7%

Expected dividend yield

4.3%

Expected total return

16.0%

Market Cap NT$1,608,972M

US$49,626M

Price Performance (RIC: 2303.TW, BB: 2303 TT)

Laura (Chia Yi) Chen AC

+886-2-8726-9090 laura.cy.chen@citi.com

Jack Chen +886-2-8726-9091 jack1.chen@citi.com

Nicholas Lai +886-2-8726-9093

nicholas.lai@citi.com Prepared for [讀者資訊已遮蔽] Prepared for [讀者資訊已遮蔽]

Profit & Loss (NT$m) 2303.TW: Fiscal year end 31-Dec - 2024 2025 2026E 2027E 2028E Valuation ratios Price: NT$128.00; TP: NT$143.00; Market Cap: NT$1,608,972m; Recomm: Buy - 2024 Price: NT$128.00; TP: NT$143.00; Market Cap: NT$1,608,972m; Recomm: Buy - 2025 Price: NT$128.00; TP: NT$143.00; Market Cap: NT$1,608,972m; Recomm: Buy - 2026E Price: NT$128.00; TP: NT$143.00; Market Cap: NT$1,608,972m; Recomm: Buy - 2027E Price: NT$128.00; TP: NT$143.00; Market Cap: NT$1,608,972m; Recomm: Buy - 2028E
Sales revenue 232,303 237,553 282,963 339,934 360,694 PE (x) 33.7 38.3 17.1 17.3 15.2
Cost of sales -156,649 -168,647 -190,603 -217,149 -225,914 PB (x) 4.3 4.2 3.6 3.4 3.2
Gross profit 75,654 68,906 92,359 122,784 134,780 EV/EBITDA (x) 15.4 15.0 11.7 8.3 7.2
Gross Margin (%) 32.6 29.0 32.6 36.1 37.4 FCF yield (%) -0.4 2.8 7.4 4.6 6.3
EBITDA (Adj) 97,085 100,376 123,809 168,006 191,618 Dividend yield (%) 2.2 1.9 4.3 4.3 4.9
EBITDA Margin (Adj) (%) 41.8 42.3 43.8 49.4 53.1 Payout ratio (%) 75 74 74 74 74
Depreciation -45,472 -56,427 -59,571 -77,253 -90,866 ROE (%) 12.8 11.0 22.5 20.1 21.6
Amortisation 0 0 0 0 0 Cashflow (NT$m) 2024 2025 2026E 2027E 2028E
EBIT (Adj) 51,613 43,949 64,237 90,753 100,752 EBITDA 97,085 100,376 123,809 168,006 191,618
EBIT Margin (Adj) (%) 22.2 18.5 22.7 26.7 27.9 Working capital -3,721 2,160 -14,021 -9,036 -5,112
Net interest 2,174 937 1,015 1,489 1,701 Other -14,843 -9,586 68,406 7,474 8,183
Associates 501 4,953 62,311 14,091 18,994 Operating cashflow 78,521 92,949 178,194 166,444 194,689
Non-Op/Except/Other Adj 1,932 -191 -24,501 1,349 1,349 Capex -85,408 -48,764 -59,275 -93,408 -94,361
Pre-tax profit 56,220 49,648 103,063 107,682 122,797 Net acq/disposals 0 0 0 0 0
Tax -9,113 -8,113 -10,209 -16,152 -18,420 Other 1,803 -1,354 -76,683 -8,000 -6,000
Extraord./Min.Int./Pref.div. 105 182 336 800 800 Investing cashflow -83,605 -50,117 -135,959 -101,408 -100,361
Reported net profit 47,211 41,716 93,189 92,329 105,177 Dividends paid -37,586 -35,784 -31,287 -69,892 -69,247
Net Margin (%) 20.3 17.6 32.9 27.2 29.2 Financing cashflow -22,365 -36,991 6,368 -61,077 -61,740
Core NPAT 47,211 41,716 93,189 92,329 105,177 Net change in cash -27,449 5,841 48,603 3,959 32,589
Per share data 2024 2025 2026E 2027E 2028E Free cashflow to s/holders -6,886 44,186 118,919 73,036 100,329
Reported EPS ($) 3.80 3.34 7.47 7.40 8.43
Core EPS ($) 3.80 3.34 7.47 7.40 8.43 Rev breakdown by node 2024 2025 2026E 2027E 2028E
DPS ($) 2.85 2.49 5.56 5.51 6.27 14nm (%) 0 0 0 1 1
CFPS ($) 6.32 7.44 14.28 13.34 15.61 28nm (%) 34 37 36 46 47
FCFPS ($) -0.55 3.54 9.53 5.85 8.04 45nm (%) 14 16 16 13 14
BVPS ($) 30.11 30.18 35.57 37.36 40.21 65nm (%) 16 17 18 14 13
Wtd avg ord shares (m) 12,425 12,485 12,479 12,475 12,475 90nm (%) 11 8 7 6 6
Wtd avg diluted shares (m) 12,425 12,485 12,479 12,475 12,475 0.11/0.13um (%) 10 7 8 7 7
Growth rates 2024 2025 2026E 2027E 2028E 0.15/0.18um (%) 10 9 10 10 10
Sales revenue (%) 4.4 2.3 19.1 20.1 6.1 0.25/0.35um (%) 5 4 3 2 2
EBIT (Adj) (%) -10.8 -14.8 46.2 41.3 11.0 0.5um (%) 0 1 1 1 1
Core NPAT (%) -22.6 -11.6 123.4 -0.9 13.9
Core EPS (%) -23.0 -12.1 123.5 -0.9 13.9 Rev brkdn by customer 2024 2025 2026E 2027E 2028E
Balance Sheet (NT$m) 2024 2025 2026E 2027E 2028E Fabless (%) na na na na na
Cash & cash equiv. 105,000 110,660 158,928 162,086 193,875 IDM (%) na na na na na
Accounts receivables 33,343 31,274 44,395 48,445 51,025 System (%) na na na na na
Inventory 35,782 37,228 43,555 47,527 50,059
Net fixed & other tangibles 308,035 298,840 300,753 316,908 320,403 Rev brkdn by geography 2024 2025 2026E 2027E 2028E
Goodwill & intangibles 0 0 0 0 0 N. America (%) na na na na na
Financial & other assets 88,039 100,993 183,146 194,183 202,118 Asia-Pacific (%) na na na na na
Total assets 570,201 578,996 730,777 769,150 817,480 Europe (%) na na na na na
Accounts payable 7,633 9,170 14,597 13,582 13,582 Japan (%) na na na na na
Short-term debt 19,510 27,597 50,522 53,524 54,717
Long-term debt 55,533 45,372 50,122 55,134 60,648 Analyst items 2024 2025 2026E 2027E 2028E
Provisions & other liab 109,339 117,002 168,142 177,077 182,770 Capacity - 8" equi. (K) 11,305 11,617 11,810 12,031 12,031
Total liabilities 192,016 199,141 283,382 299,317 311,718 Shipment - 8" equi. (K) 7,617 8,618 10,362 10,768 10,768
Shareholders' equity 378,185 379,855 447,395 469,832 505,762 Utilization rate (%) 67 74 88 90 90
Minority interests 0 0 0 0 0 Depreciation to Sales (%) 19 22 20 21 23
Total equity 378,185 379,855 447,395 469,832 505,762 ASP (US$) 908 850 832 968 1,028
Net debt (Adj) -29,957 -37,691 -58,284 -53,428 -78,510
Net debt to equity (Adj) (%) For definitions of the items in this table, -7.9 please click here. -9.9 -13.0 -11.4 -15.5

Figure 1. UMC - 3Q26 Results Comparison

(NT$mn) 3Q26 Actual 2Q26 Actual Q/Q 3Q26 Citi Diff. 3Q26 Cons Diff. 4Q26 Guidance Citi Prior Est. Cons Prior Est.
Revenue 74,239 68,733 8% 76,930 -3% 75,067 -1% Volume +LSD QoQ; ASP remains firm 77,976 78,261
Gross pro fit 25,205 22,323 13% 26,906 -6% 25,991 -3% 28,154 27,589
Gross margin 34.0% 325% +1.5 ppt 35.0% -1.0 ppt 34.6% -0.7ppt GM flat QoQ 36.1% 35.3%
Op.profit 18,643 14,950 25% 19,373 -4% 18,413 1% 20,586 19,933
OPmargin 25.1% 21.8% +3.4 ppt 25.2% -0.1 ppt 24.5% +0.6 ppt 26.4% 25.5%
Net income 16,434 42,260 -61% 18,212 -10% 16,997 -3% 19,364 18,420
EPS (NT$) 1.32 3.39 -61% 1.46 -10% 1.35 -2% 1.55 1.46

© 2026 Citigroup Inc. No redistribution without Citigroup's written permission.

Source: Citi Research, Bloomberg

© 2026 Citigroup Inc. No redistribution without Citigroup's written permission.

Source: Citi Research, company data

Figure 5. UMC - sales mix breakdown by application

© 2026 Citigroup Inc. No redistribution without Citigroup's written permission. Source: Citi Research, company data Prepared for [讀者資訊已遮蔽]

Figure 7. UMC - Forward P/E band

© 2025 Citigroup Inc. No redistribution without Citigroup's written permission.

© 2025 Citigroup Inc. No redistribution without Citigroup's written permission.

Source: Citi Research, company data Source: Citi Research, company data

Figure 6. UMC - Estimates Revisions

(NT$mn) 2026E - New 2026E - Old 2026E - Chg. 2027E - New 2027E - Old 2027E - Chg. 2028E - New 2028E - Old 2028E - Chg.
Sales 282,963 284,677 -1% 339,934 345,658 -2% 360,694 367,980 -2%
YoY growth 19% 20% 20% 21% 6% 6%
Gross profit 92,359 95,201 -3% 122,784 135,860 -10% 134,780 146,778 -8%
Opex 28,122 29,016 -3% 32,031 32,659 -2% 34,027 34,805 -2%
Operating profit 64,237 66,185 -3% 90,753 103,201 -12% 100,752 111,973 -10%
Pre-tax profit 103,063 105,567 -2% 107,682 120,416 -11% 122,797 134,462 -9%
Net income 93,189 96,008 -3% 92,329 103,153 -10% 105,177 115,092 -9%
EPS (NT$) 7.47 7.69 -3% 7.40 8.26 -10% 8.43 9.21 -8%
Gross margin 32.6% 33.4% -0.8 ppt 36.1% 39.3% -3.2 ppt 37.4% 39.9% -2.5 ppt
Opex ratio 9.9% 10.2% -0.3 ppt 9.4% 9.4% -0.0 ppt 9.4% 9.5% -0.0 ppt
Operating margin 22.7% 23.2% -0.5 ppt 26.7% 29.9% -3.2 ppt 27.9% 30.4% -2.5 ppt
Net margin 32.9% 33.7% -0.8 ppt 27.2% 29.8% -2.7 ppt 29.2% 31.3% -2.1 ppt

© 2026 Citigroup Inc. No redistribution without Citigroup's written permission.

Source: Citi Research

Prepared for [讀者資訊已遮蔽]

Figure 9. UMC - Forecast Summary

NT$bn 1Q 2Q 3Q 2025 - 4Q 2025 - 1Q 2025 - 2026 2Q 2025 - 3Q 2027 - 4QE 2027 - 1QE 2027 - 2QE 2027 - 3QE 4QE 2025 2026E 2027E 2028E
Revenue 57.9 58.8 59.1 61.8 61.0 68.7 74.2 79.0 80.8 84.8 88.2 86.2 237.6 283.0 339.9 360.7
COGS -42.4 -41.9 -41.5 -42.9 -43.2 -46.4 -49.0 -51.9 -51.9 -54.3 -55.9 -55.1 -168.6 -190.6 -217.1 -225.9
Gross Profit 15.4 16.9 17.6 19.0 17.8 22.3 25.2 27.0 28.9 30.5 32.3 31.1 68.9 92.4 122.8 134.8
Operating Expense -5.7 -6.1 -6.5 -6.7 -6.5 -7.4 -6.6 -7.6 -7.8 -8.1 -8.1 -8.0 -25.0 -28.1 -32.0 -34.0
SG&A expenses -2.2 -2.3 -2.3 -2.4 -2.5 -3.2 -2.7 -3.2 -3.3 -3.3 -3.2 -3.4 -9.2 -11.7 -13.2 -14.1
R&D expenses -4.0 -4.2 -4.6 -4.9 -4.6 -4.7 -4.5 -5.0 -5.1 -5.4 -5.6 -5.3 -17.7 -18.9 -21.5 -22.9
EBIT 9.8 10.8 11.1 12.2 11.3 14.9 18.6 19.4 21.1 22.4 24.2 23.0 43.9 64.2 90.8 100.8
Net Interest Income 0.3 0.4 0.1 0.2 0.1 0.3 0.3 0.3 0.4 0.4 0.5 0.2 -3.6 -3.8 -5.3 -5.8
Net Other Income -0.7 -1.0 3.4 3.1 5.2 30.0 1.0 1.6 1.9 4.2 5.2 4.1 9.3 42.7 22.2 27.8
Pre Tax Profit 9.3 10.2 14.6 15.5 16.6 45.2 19.9 21.3 23.4 27.1 29.9 27.4 49.6 103.1 107.7 122.8
Tax Expense/(Credit) 1.6 1.3 -0.3 5.5 0.5 3.0 3.5 3.2 3.5 4.1 4.5 4.1 -8.1 -10.2 -16.2 -18.4
Net Profit 7.8 8.9 15.0 10.1 16.2 42.3 16.4 18.3 20.1 23.2 25.6 23.5 41.7 93.2 92.3 105.2
EPS (NT$) 0.62 0.1 1.20 0.81 1.29 3.39 1.32 1.47 1.61 1.86 2.05 1.88 3.34 7.47 7.40 8.43
Margins (%)
Gross Margin 26.7 28.7 29.8 30.7 29.2 32.5 34.0 34.2 35.8 36.0 36.7 36.1 29.0 32.6 36.1 37.4
Operating Margin 16.9 18.4 18.8 19.8 18.5 21.8 25.1 24.5 26.1 26.5 27.4 26.7 18.5 22.7 26.7 27.9
Net Margin 13.4 15.2 25.3 16.3 26.5 61.5 22.1 23.2 24.8 27.4 29.0 27.2 17.6 32.9 27.2 29.2
Sequential Growth (%)
Volume (000s) 2 11 3 -1 3 11 7 3 -5 2 0 0 13 20 4 0
Revenue -4 2 1 5 -1 13 8 6 2 5 4 -2 2 19 20 6
Gross Profit -16 9 4 8 -6 25 13 7 7 6 6 -4 -9 34 33 10
EBIT -18 11 3 10 8- 33 25 4 9 7 8 -5 -15 46 41 11
Net Profit -8 14 68 -33 61 161 -61 11| 10 16 10 -8 -12 123 -1 14

© 2025 Citigroup Inc. No redistribution without Citigroup's written permission.

Source: Citi Research, company data Prepared for [讀者資訊已遮蔽]

Bull/Bear: UMC (2303.TW)

Current Price and expected returns (upside/downside) as of 28 Oct 2026

BULLAssumptions

  • Higher-than-expected margin outlook
  • Better-than-expected consumer electronic demand

BASE Assumptions

  • . Gradual UTR recovery
  • Solid 28/22nm demand outlook

BEAR Assumptions

  • Lower-than-expected margin outlook
  • Weaker-than-expected consumer electronic demand

Spread 39pp Prepared for [讀者資訊已遮蔽]

UMC

Company description

United Microelectronics Corporation (UMC) is a leading global semiconductor foundry company. It provides high-quality IC fabrication services, focusing on logic and various specialty technologies to serve all major sectors of the electronics industry. UMC's comprehensive IC processing technologies and manufacturing solutions include Logic/Mixed-Signal, embedded HighVoltage, embedded Non-Volatile-Memory, RFSOI, and BCD. Most of UMC's 12-inch and 8-inch fabs with core R&D are located in Taiwan.

Investment strategy

We rate UMC shares a Buy. Overall inventory levels in PC, smartphone, and consumer electronics are currently healthy, and we see limited inventory correction downside. While macro uncertainties may linger, we believe UMC's niche technology offerings will help it outperform its trailing-edge foundry peers. We also expect transfer orders from TSMC and the AI-on-device trend to drive stronger demand, and see better UTR recovery for UMC going forward.

Valuation

Our target price for UMC of NT$125 is based on 18x 2027/28E EPS, which is higher than the midpoint of its 3-year forward PE. We believe our target multiple is justified by our belief that UMC should benefit from the robust demand in 22/28nm, TSMC's increasing order outflow opportunity, long-term opportunity in advanced packaging and photonics and that its niche technology offerings should help it outperform its trailing-edge foundry peers. Our target price equates to 2027E/28E PB of 3.8x/3.6x.

Risks

Key downside risks to our target price include: 1) a longer-than-expected demand recovery; 2) more competition from peers in 28nm; 3) worse-thanexpected developments from the company's China investment; 4) a significant decline in smartphone end-demand; 5) poor contribution from Novatek's iPhone OLED business; and 6) fiercer ASP competition from Chinese peers.

If you are visually impaired and would like to speak to a Citi representative regarding the details of the graphics in this document, please call USA 1-888-500-5008 (TTY: 711), from outside the US +1-210-677-3788

Appendix A-1