Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

Equity Bottom-Up

United Microelectron Sp Adr / Equity Bottom-Up

<ul>
<li>UMC’s 3Q25 results reaffirm its strategic shift toward specialty foundry leadership.</li>
<li>Revenue was stable at NT$59.13bn with improving utilization and 22nm technology now contributing over 10% of sales. Gross margins remain robust.</li>
<li>UMC's growing 22/28nm portfolio, Intel partnership in Arizona, and focus on power-efficient packaging highlight how the maturing foundry sector is moving away from pure node competition and towards application-specific differentiation.</li>
</ul>


UMC’s 3Q25 results reaffirm its strategic shift toward specialty foundry leadership.
Revenue was stable at NT$59.13bn with improving utilization and 22nm technology now contributing over 10% of sales. Gross margins remain robust.
UMC's growing 22/28nm portfolio, Intel partnership in Arizona, and focus on power-efficient packaging highlight how the maturing foundry sector is moving away from pure node competition and towards application-specific differentiation.


UMC (UMC US / 2303 TT): Adeptly Navigating Foundry Industry Transition From Scale to Specialization

Taiwan Tech Focused Senior Analyst

Patrick Liao

<ul>
<li>4Q25 Guidance: Wafer shipment will remain flat. ASP in US dollars will remain firm. Gross margin will be approximately in the high 20% range.  </li>
<li>Expect interposer technology capabilities to serve the market when volume comes in late 2026 or sometime in 2027.</li>
<li>12nm PDK is expected to be ready for the first wave of customers in January 2026. Customer product takeout is expected at the beginning of 2027.  </li>
</ul>


4Q25 Guidance: Wafer shipment will remain flat. ASP in US dollars will remain firm. Gross margin will be approximately in the high 20% range.  
Expect interposer technology capabilities to serve the market when volume comes in late 2026 or sometime in 2027.
12nm PDK is expected to be ready for the first wave of customers in January 2026. Customer product takeout is expected at the beginning of 2027.  


UMC (2303.TT; UMC.US): 4Q25 Upbeat; 1Q26 May Be a Challenging Quarter Due to Expected Seasonality.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/united-microelectron-sp-adr" target="_blank" data-smartkarma-citation="entities:11540:1" rel="noopener">United Microelectron Sp Adr (UMC US)</a> – 2025 Full-Year and 4Q Outlook.   </li>
<li>The impact of U.S. recent restrictions on <a href="https://www.smartkarma.com/entities/united-microelectron-sp-adr" target="_blank" data-smartkarma-citation="entities:11540:1" rel="noopener">United Microelectron Sp Adr (UMC US)</a> appears negligible.</li>
<li>Customer demand trends are diverging in 2H25, and overall demand is expected to soften in 4Q25.</li>
</ul>



United Microelectron Sp Adr (UMC US) – 2025 Full-Year and 4Q Outlook.   
The impact of U.S. recent restrictions on United Microelectron Sp Adr (UMC US) appears negligible.
Customer demand trends are diverging in 2H25, and overall demand is expected to soften in 4Q25.


UMC (2303.TT; UMC.US): 4Q25 Revenue Is Projected to Decline 5–10% QoQ.

TSMC (Taiwan Semiconductor Manufacturing) - ADR / Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing) - ADR

<ul>
<li>TSMC: +23% Premium; Has Broken Down from Historically High Level</li>
<li>ChipMOS: -3.0% Discount; Good Level to Go Long the ADR Spread</li>
<li>CHT: -1.1% Discount; Good Level to Go Long the ADR Spread</li>
</ul>


TSMC: +23% Premium; Has Broken Down from Historically High Level
ChipMOS: -3.0% Discount; Good Level to Go Long the ADR Spread
CHT: -1.1% Discount; Good Level to Go Long the ADR Spread


Taiwan Dual-Listings Monitor: TSMC Historically High Premium Cracks; ChipMOS & CHT Opportunities

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul>
<li>United Microelectronics Corporation's (UMC) second quarter financial results for 2025 present a nuanced picture of the company's current standing and future prospects.</li>
<li>The Taiwanese semiconductor foundry recorded consolidated revenue of TWD 58.8 billion, a sequential increase of 1.6%, with wafer shipments growing by 6.3% quarter-over-quarter.</li>
<li>However, the currency appreciation of the Taiwanese dollar impacted profitability, as gross margin slightly reached 28.7%, considering a 3% foreign exchange effect.</li>
</ul>


United Microelectronics Corporation's (UMC) second quarter financial results for 2025 present a nuanced picture of the company's current standing and future prospects.
The Taiwanese semiconductor foundry recorded consolidated revenue of TWD 58.8 billion, a sequential increase of 1.6%, with wafer shipments growing by 6.3% quarter-over-quarter.
However, the currency appreciation of the Taiwanese dollar impacted profitability, as gross margin slightly reached 28.7%, considering a 3% foreign exchange effect.


United Microelectronics Corporation: Doubling Down on Specialty Tech...

Taiwan

United Microelectronics Corporation designs, manufactures, and markets integrated circuits (ICs) and related electronic products.  The Company's main products are consumer electronic ICs, memory ICs, personal computer peripheral ICs, and communication ICs.

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United Microelectronics Corp (2303 TT)

UMC (UMC US / 2303 TT): Adeptly Navigating Foundry Industry Transition From Scale to Specialization

UMC's 3Q25 results show progress in specialty foundry leadership with stable revenue, improving utilization, and successful focus on application...

Vincent Fernando, CFA

UMC (2303.TT; UMC.US): 4Q25 Upbeat; 1Q26 May Be a Challenging Quarter Due to Expected Seasonality.

Wafer shipment to remain steady, ASP firm, and interposer technology to serve market by late 2026/early 2027 with 12nm PDK ready for customers in...

Patrick Liao

UMC (2303.TT; UMC.US): 4Q25 Revenue Is Projected to Decline 5–10% QoQ.

United Microelectron Sp Adr (UMC US) outlook for 2025 remains steady despite U.S. restrictions, with softening demand expected in 4Q25.

Patrick Liao

Taiwan Dual-Listings Monitor: TSMC Historically High Premium Cracks; ChipMOS & CHT Opportunities

We analyze the premium and discount levels of dual-listed Taiwan companies, suggesting potential spread trading levels based on historical trends.

Vincent Fernando, CFA

United Microelectronics Corporation: Doubling Down on Specialty Tech...

United Microelectronics Corporation's (UMC) second quarter financial results for 2025 present a nuanced picture of the company's current standing...

Baptista Research

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UMC (UMC US / 2303 TT): Adeptly Navigating Foundry Industry Transition From Scale to Specialization

​UMC's 3Q25 results show progress in specialty foundry leadership with stable revenue, improving utilization, and successful focus on application...

Vincent Fernando, CFA

UMC (2303.TT; UMC.US): 4Q25 Upbeat; 1Q26 May Be a Challenging Quarter Due to Expected Seasonality.

​Wafer shipment to remain steady, ASP firm, and interposer technology to serve market by late 2026/early 2027 with 12nm PDK ready for customers in...

Patrick Liao

UMC (2303.TT; UMC.US): 4Q25 Revenue Is Projected to Decline 5–10% QoQ.

​United Microelectron Sp Adr (UMC US) outlook for 2025 remains steady despite U.S. restrictions, with softening demand expected in 4Q25.

Patrick Liao

Taiwan Dual-Listings Monitor: TSMC Historically High Premium Cracks; ChipMOS & CHT Opportunities

We analyze the premium and discount levels of dual-listed Taiwan companies, suggesting potential spread trading levels based on historical trends.

Vincent Fernando, CFA

United Microelectronics Corporation: Doubling Down on Specialty Tech...

United Microelectronics Corporation's (UMC) second quarter financial results for 2025 present a nuanced picture of the company's current standing...

Baptista Research

UMC's 3Q25 results show progress in specialty foundry leadership with stable revenue, improving utilization, and successful focus on application...

Wafer shipment to remain steady, ASP firm, and interposer technology to serve market by late 2026/early 2027 with 12nm PDK ready for customers in...

United Microelectron Sp Adr (UMC US) outlook for 2025 remains steady despite U.S. restrictions, with softening demand expected in 4Q25.