United Microelectronics Corporation (UMC) has projected low single-digit growth for its addressable market in 2025, below the global semiconductor industry’s expected 10% increase.

The company reported its lowest profits in four and a half years for Q4 2024, driven by rising demand for AI servers and a slight recovery in consumer electronics.

UMC expects flat wafer shipments and a gross margin decline below 30%, impacted by a 5% drop in selling prices and increased depreciation costs.

Despite challenges, UMC plans to reduce capital expenditure by 38% to US$1.8 billion in 2025 and increase its revenue share from 22nm and 28nm chips to 37-38%.

It also plans to collaborate with Intel and explore new photonic circuits.