On October 1, United Microelectronics rose 3.43% overnight, trading at $25.33 per share, with turnover of $713,900.

The rally was primarily driven by a broadening semiconductor foundry price hike cycle and accelerating AI-related demand for mature process nodes. TSMC plans to raise wafer prices by 3% to 6% starting January next year, and United Microelectronics has followed suit. Morgan Stanley projects that the company will raise mature node foundry prices by 5% to 10% in the second half of this year, with an additional 5% to 10% increase next year. On the demand side, AI servers are fueling robust consumption of power management ICs, MCUs, and networking chips manufactured on mature processes, while some fabs have been trimming legacy capacity, further tightening supply.

Fundamentals continue to improve. The company reported August net sales of NT$25.045 billion, up 30.71% year-over-year, with cumulative January-to-August sales rising 14.66%. Second-quarter gross margin expanded 3.3 percentage points sequentially to 32.5%, reinforcing earnings momentum ahead of the next earnings report on October 28.

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