Summary of UMC 2303 TT note on market worries vs. our view re-rating • UMC share price weak on worries over “no price hike in 2H26”
• We see 2H26 hikes are for selective customers (e.g. MTK 8”). → The broad-based hikes to be in 1Q27 (10-30%). ⬆️ Raise TP to NT$215 : Meaningful re-rating path into 2H26–2028 ☕️ 2H26–2027: Profitability optimization on Higher UTR + price hikes + improving mix
• 12” UTR → ~93% by end-2026 (Novatek/Samsung LSI 22/28nm + Apple Mac)
• 8” UTR → ~90% by end-2026, full loading by 2H27
• Pricing momentum extends into 1H27 (10–30% across nodes) 2028 ⬆️new growth phase from 2028
• Asset-light FinFET 12nm model , with Apple DDIC likely be the key driver 
• Optical full-solution model (SiPh/TFLN + interposer/advanced packaging) - TFLN EPS contribution of NT&0.7/NT$1.6 in 27/28. 💰 EPS lifted and target multiple to 25x 2027E EPS. Solid FCF + dividend yields intact. #UMC# #Optical# #TFLN#