United Microelectronics (UMC.US) saw its shares climb significantly during Wednesday's trading session, with an intraday increase of over 14%. At the time of writing, the stock was up more than 11%, trading at $12.97. The surge follows the company's release of its first-quarter financial results, which showed revenue of NT$61.04 billion (approximately $1.93 billion), exceeding expectations by $10 million and representing a 5.5% year-over-year increase. Net profit for the quarter reached NT$16.17 billion, a substantial 108% jump compared to the same period last year.

In its earnings statement, United Microelectronics indicated that demand in the communications sector is recovering as the second quarter begins. This, combined with steady demand from the computer, consumer electronics, and industrial markets, is expected to keep wafer shipments strong. Recently, the company notified its customers of a price increase, signaling an adjustment to wafer prices set for the second half of 2026.

The company stated that demand from the communications, industrial, consumer electronics, and AI-related sectors remains robust. This sustained demand is leading to a tightening capacity environment across its overall product portfolio, with conditions becoming increasingly constrained. To support customer needs, United Microelectronics is continuing to enhance manufacturing efficiency and invest in technology and capacity to ensure a stable and high-quality supply of wafers. Concurrently, rising costs for raw materials, energy, and logistics have made it necessary to reassess its pricing structure.