INTC
UMC
New chips, new highs
United Microelectronics just gave the market a little neon sign that says: the Intel partnership is still alive. The Taiwan chipmaker said its joint 12nm program with Intel remains on schedule, with certification work underway at Intel’s Arizona facility and mass production expected in 2027.
That was enough to light a fire under UMC shares, which jumped to a fresh 52-week high in premarket trading. Sometimes the market acts like a teenager who finally got a text back — one decent update and suddenly everything is exciting again.
Why investors care
This isn’t just a “nice progress” headline. It tells you a few useful things:
- The Intel collaboration hasn’t drifted into corporate limbo
- UMC is still leaning into higher-value process work, not just commodity chipmaking
- The company is keeping its longer-term growth story tied to AI, auto, 5G, and advanced packaging
And while revenue from its 22nm, 28nm, and specialty process businesses hit record levels, profits told a slightly less glamorous story. 2025 revenue rose 2.3% year over year to NT$237.6 billion, but net profit dropped 11.6% to NT$41.7 billion. So yes, the top line is holding up — but margins are still getting a workout.
The not-so-secret subplot: pricing power
UMC also said it plans selective price increases in the second half of 2026 as production costs climb, including from its Singapore capacity expansion. That’s the part investors should keep an eye on. If the company can push through higher prices while demand stays stable, that’s a pretty healthy combo. If not, then it’s just another reminder that chipmaking is basically a very expensive treadmill.
Big picture: the Intel project gives UMC a more interesting long-term story, and the stock’s breakout suggests traders are buying it — at least for now.