Taiwanese chipmaker United Microelectronics Corp (UMC) has projected a sequential growth of up to 7% in wafer shipments for the second quarter of 2025.

The company also expects to use 75% of its factory capacity, as stated during an online earnings conference.

UMC’s Chief Financial Officer Liu Chi-tung said that despite ongoing trade tensions and global tariff uncertainties, market demand remains stable.

While some customers are cautious, others are increasing their orders, leading to minimal net impact for the quarter.

For 2025, UMC expects revenue growth to exceed 3%, surpassing the global foundry sector’s anticipated low-single-digit growth.

🔗 Source: Taipei Times

🧠 Food for thought

1️⃣ Semiconductor reshoring accelerates amid geopolitical pressures

UMC’s collaboration with Intel to develop 12nm chip production in Arizona by 2027 reflects a broader industry reshoring trend driven by trade tensions.

The semiconductor industry is witnessing a significant shift of production from China to locations including the US, Canada, and Mexico, as companies seek to reduce geopolitical risks in their supply chains 1.

This movement has been catalyzed by government incentives, with the US CHIPS Act allocating $52.7 billion specifically to boost domestic semiconductor manufacturing capacity 1.

UMC’s statement about customers requesting accelerated US capacity expansion directly demonstrates how manufacturers are responding to customer demand for geographically diversified production facilities.

This trend is also evident in major tech companies like Apple diversifying their production centers outside China to locations such as India and Vietnam 1.

2️⃣ Tariff uncertainty creates selective industry impacts

UMC’s mixed customer response to US tariff policies illustrates how trade tensions affect semiconductor companies differently based on their market positioning.

The US-China trade war, which began under the Trump administration with 10% tariffs on $200 billion of Chinese goods in 2018 (later escalating to 25%), has created a complex landscape for semiconductor companies to navigate 2.