UMC Upgrades Advanced Wafer Testing Contribution to $3.2B Amid Strong Demand (3711-TW, US:AXP)

In its earnings call on February 5, 2026, Unichip (UMC) (3711-TW, US:AXP) reported stronger visibility in advanced packaging and testing orders,上调 its full-year advanced wafer testing contribution to $3.2 billion, up from $1.6 billion and above its prior estimate of $2.6 billion, reflecting robust supply-demand imbalance. For the first quarter under a 1 USD = NT$31.4 exchange rate assumption, the company预计 revenue to decline 5%-7%,毛利率 to fall 0.5-1 percentage points, and profit margin to decline 1-1.5 percentage points. Advanced testing revenue is forecast to decline low-single digits to mid-single digits due to fewer workdays and higher labor costs from Lunar New Year overtime; EMS revenue and gross margin are expected to remain near同期 levels. Looking ahead, management expects growth to continue through 2026 and beyond, driven by expanded advanced solutions and复苏 in the semiconductor industry from AI adoption and broader market recovery. Within advanced testing, OS and wafer testing are advancing; Full Process is on schedule with multiple clients,预计 to contribute significantly in 2026, growing threefold over 2025 and reaching 10% of the LEAP segment by year-end. End Test (FT) also contributed meaningfully, accounting for about 10% of testing revenue. General testing remains growth-rate comparable to last year, with the overall testing segment outperforming the broader logic semiconductor market.