UMC (2303) held a financial briefing on the 23rd, releasing its Q1 2025 operational report and denying merger rumors with GlobalFoundries. CFO Liu Qidong stated, "There are no ongoing merger deals at present." While the worst-case scenario has been avoided, many challenges lie ahead for UMC’s future performance.

According to KGI Securities, UMC is expected to see depreciation growth of 20% in the coming years, peaking in 2027. The oversupply in mature processes may suppress average selling prices (ASP). Moreover, the stock price has shown relative resilience over the past few weeks, but no structural factors are apparent to boost profit; hence, the rating remains "reduce holding," with the target price cut to NT$35. UMC's Q1 2025 earnings per share fell below expectations due to higher-than-expected operating expenses and investment losses.

Looking ahead, UMC anticipates a Q2 2025 wafer shipment increase of 5-7%, with gross margins expected to recover. However, they are cautious about market demand in the second half of the year. UMC indicates that collaboration with Intel on the 12nm process is progressing smoothly but refrains from commenting on merger rumors, noting limited synergies due to overlapping processes and customer bases.