UMC Could Face Challenges Raising Prices

Dow Jones
07/30

0311 GMT - It could be challenging for United Microelectronics Corp. to raise wafer prices across the board, Daiwa analysts say in a research note. The demand market is divided, with AI-related demand strong but demand for non-AI products still mixed, the analysts note. UMC now aims to skew its business toward segments with strength, including AI companion products, such as power management, connectivity and silicon photonics, as well as automotive and industrial solutions, they say. "While management sounded still upbeat, expecting some ASP uplift in 2027, we need to monitor the supply-demand dynamics closely," the analysts write. UMC shares rise 9.8% to NT$112.50.

 

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