UMC Reports Second Quarter 2025 Results

Business Wire

6 days ago

TAIPEI, Taiwan--(BUSINESS WIRE)-- United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ('UMC' or 'The Company'), a leading global semiconductor foundry, today announced its consolidated operating results for the second quarter of 2025.
Second quarter consolidated revenue was NT$58.76 billion, increasing 1.6% from NT$57.86 billion in 1Q25. Compared to a year ago, 2Q25 revenue increased 3.4%. Consolidated gross margin for 2Q25 was 28.7%. Net income attributable to the shareholders of the parent was NT$8.90 billion, with earnings per ordinary share of NT$0.71.
Jason Wang, co-president of UMC, said, 'In the second quarter, the utilization rate increased to 76%, as wafer shipments grew 6.2% QoQ, primarily driven by communications in imaging signal processors, NAND controllers, WiFi and LCD controllers. While we experienced an increase in the overall utilization and a growth of our 22/28nm portfolio, the unfavorable foreign exchange movement of the NT dollar capped our gross margin to 28.7% by nearly 3 percentage points. Revenue from our 22/28nm portfolio continued to grow sequentially, now accounting for 40% of total sales, a record high in both percentage and absolute dollar terms. Our industry-leading 22/28nm solutions continue to win adoption by customers, and we expect to see further market share gains in wireless communications over the coming quarters. We have always believed that, with the right differentiation, 22/28nm is a strong and long-lasting node with a robust product pipeline. In addition, the new Phase 3 facility at our Singapore Fab 12i, set to start production in 2026, will enable UMC to better serve customers seeking diversified manufacturing for enhanced supply chain resilience.'
Co-president Wang added, 'Looking ahead to the third quarter, we expect a mild increase in wafer shipments. However, adverse foreign exchange movement will lead to a decline in NT dollar revenue. We are closely monitoring the near-term uncertainties and risks as the markets anticipate US tariff policies. To navigate macro and geopolitical headwinds, including foreign exchange risks, UMC will continue to actively manage our foreign exchange exposure and maintain financial flexibility to enhance our financial structure and business resilience.'
Co-president Wang said, 'UMC was the recipient of two prestigious accolades at the 2025 Asia Responsible Enterprise Awards (AREA), organized by Enterprise Asia. Among the honors, UMC Co-President and Chief Sustainability Officer SC Chien received an award in the Responsible Business Leadership category, recognizing his leadership in advancing both business operations and sustainable development at UMC. In addition, UMC received the Corporate Sustainability Reporting Award for the company's longstanding commitment to transparency and integrity in ESG disclosures.'
Second quarter operating revenues grew 1.6% sequentially to NT$58.76 billion. Revenue contribution from 40nm and below technologies represented 55% of wafer revenue. Gross profit increased 9.3% QoQ to NT$16.88 billion, or 28.7% of revenue. Operating expenses increased 5.6% to NT$6.47 billion. Net other operating income decreased 11.5% to NT$0.41 billion. Net non-operating expenses totaled NT$0.67 billion. Net income attributable to shareholders of the parent amounted to NT$8.90 billion.
Earnings per ordinary share for the quarter was NT$0.71. Earnings per ADS was US$0.121. The basic weighted average number of shares outstanding in 2Q25 was 12,484,877,493, compared with 12,484,780,989 shares in 1Q25 and 12,414,189,313 shares in 2Q24. The diluted weighted average number of shares outstanding was 12,534,082,055 in 2Q25, compared with 12,579,207,466 shares in 1Q25 and 12,529,942,186 shares in 2Q24. The fully diluted shares counted on June 30, 2025 were approximately 12,534,367,000.
Detailed Financials Section
Operating revenues increased to NT$58.76 billion. COGS decreased 1.3% QoQ to NT$41.88 billion. Gross profit increased 9.3% to NT$16.88 billion. Operating expenses grew 5.6% QoQ to NT$6.47 billion, as G&A increased 9.1% to NT$1.68 billion, R&D increased 5.8% to NT$4.19 billion, while Sales & Marketing decreased 4.5% to NT$0.59 billion. Net other operating income was NT$0.41 billion. In 2Q25, operating income increased 10.6% QoQ to NT$10.82 billion.
Net non-operating expenses in 2Q25 was NT$0.67 billion, primarily reflecting the NT$1.28 billion in exchange loss, offset by the NT$0.33 billion in net investment gain, and the NT$0.31 billion in net interest income.
Non-Operating Income and Expenses
(Amount: NT$ million)
2Q25
1Q25
2Q24
Non-Operating Income and Expenses
(666
)
(439
)
2,529
Net Interest Income and Expenses
309
219
701
Net Investment Gain and Loss
326
(769
)
1,440
Exchange Gain and Loss
(1,280
)
115
407
Other Gain and Loss
(20
)
(5
)
(19
)
Note：Sums may not equal totals due to rounding.
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In 2Q25, cash inflow from operating activities was NT$22.10 billion. Cash outflow from investing activities totaled NT$9.44 billion, which included NT$8.37 billion in capital expenditures, resulting in free cash flow of NT$13.73 billion. Cash inflow from financing activities was NT$1.15 billion, primarily from NT$5.20 billion in bonds issued, offset by a NT$3.77 billion decreased in bank loans. Net cash flow in 2Q25 amounted to NT$5.64 billion. Over the next 12 months, the company expects to repay NT$3.72 billion in bank loans.
Cash and cash equivalents increased to NT$111.99 billion. Days of inventory decreased 1 day to 76 days.
Current Assets
(Amount: NT$ billion)
2Q25
1Q25
2Q24
Cash and Cash Equivalents
111.99
106.35
121.23
Accounts Receivable
32.38
34.80
32.53
Days Sales Outstanding
52
54
51
Inventories, net
34.02
35.43
36.33
Days of Inventory
76
77
88
Total Current Assets
195.18
192.32
207.22
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Current liabilities increased to NT$110.39 billion due to dividends payable of NT$35.79 billion. Long-term credit/bonds decreased to NT$41.60 billion. Total liabilities increased to NT$211.10 billion, leading to a debt to equity ratio of 63%.
Analysis of Revenue 2
Revenue from Asia Pacific increased to 67%, while business from North America was 20% of sales. Business from Europe increased to 8%, while contribution from Japan was 5%.
Revenue contribution from 22/28nm increased to 40% of wafer revenue, while 40nm contribution slightly decreased to 15% of sales.
Revenue Breakdown by Geometry
Geometry
2Q25
1Q25
4Q24
3Q24
2Q24
14nm and below
0
%
0
%
0
%
0
%
0
%
14nm<x<=28nm
40
%
37
%
34
%
35
%
33
%
28nm<x<=40nm
15
%
16
%
16
%
13
%
12
%
40nm<x<=65nm
17
%
16
%
16
%
15
%
15
%
65nm<x<=90nm
7
%
8
%
11
%
10
%
12
%
90nm<x<=0.13um
7
%
7
%
10
%
10
%
11
%
0.13um<x<=0.18um
9
%
10
%
9
%
11
%
10
%
0.18um<x<=0.35um
4
%
5
%
4
%
5
%
5
%
0.5um and above
1
%
1
%
0
%
1
%
2
%
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Revenue from fabless customers accounted for 81% of revenue.
Revenue Breakdown by Customer Type
Customer Type
2Q25
1Q25
4Q24
3Q24
2Q24
Fabless
81
%
82
%
84
%
85
%
87
%
IDM
19
%
18
%
16
%
15
%
13
%
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Revenue from the communication segment accounted for 41%, while business from computer applications was 11% of sales. Business from consumer applications accounted for 33%, while other segments was 15% of revenue.
(1) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec, keyboard controller, monitor scaler, USB, I/O chipset, WLAN. Communication consists of handset components, broadband, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart cards, toys, etc.
Blended ASP Trend
Blended average selling price (ASP) remained firm in 2Q25.
(To view blended ASP trend, please click here for 2Q25 ASP)
Shipment and Utilization Rate 3
Wafer shipments increased 6.2% QoQ to 967K during the second quarter, while quarterly capacity was 1,290K. Overall utilization rate in 2Q25 grew to 76%.
Capacity 4
Total capacity in the second quarter increased to 1,290K 12-inch equivalent wafers. Capacity will grow in the third quarter of 2025 to 1,305K 12-inch equivalent wafers.
(1) One 6-inch wafer is converted into 0.25 (6 2 /12 2) 12-inch equivalent wafer; one 8-inch wafer is converted into 0.44 (8 2 /12 2) 12-inch equivalent wafers. Total capacity figures are expressed in 12-inch equivalent wafers.
CAPEX
CAPEX spending in 2Q25 totaled US$273 million. 2025 cash-based CAPEX budget will be US$1.8 billion.
2025 CAPEX Plan
8"
12"
Total
10
%
90
%
US$1.8 billion
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Third Quarter 2025 Outlook & Guidance
Quarter-over-Quarter Guidance:
Wafer Shipments: Will increase by low-single digit %
ASP in USD: Will remain firm
Gross Profit Margin: Will be approximately Q2 gross margin subject to FX effect
Capacity Utilization: mid-70% range
2025 CAPEX: US$1.8 billion
Recent Developments / Announcements
Jun. 30, 2025
UMC Wins Two Honors at the 2025 Asia Responsible Enterprise Awards
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Please visit UMC's website for further details regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, July 30, 2025
Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM (London)
A live webcast and replay of the 2Q25 results announcement will be available at www.umc.com under the 'Investors / Events' section.
About UMC
UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry company. The company provides high-quality IC fabrication services, focusing on logic and various specialty technologies to serve all major sectors of the electronics industry. UMC's comprehensive IC processing technologies and manufacturing solutions include Logic/Mixed-Signal, embedded High-Voltage, embedded Non-Volatile-Memory, RFSOI, BCD etc. Most of UMC's 12-in and 8-in fabs with its core R&D are in Taiwan, with additional ones throughout Asia. UMC has a total of 12 fabs in production with a combined capacity of more than 400,000 wafers per month (12-in equivalent), and all of them are certified with IATF 16949 automotive quality standards. UMC is headquartered in Hsinchu, Taiwan, plus local offices in the United States, Europe, China, Japan, Korea, and Singapore, with a worldwide total of 20,000 employees. For more information, please visit: http://www.umc.com.
Safe Harbor Statements
This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding anticipated financial results for the second quarter of 2025; the expected wafer shipment and ASP; the anticipated annual budget; capex strategies; environmental protection goals and water management strategies; impact of foreign currency exchange rates; expected foundry capacities; the ability to obtain new business opportunities; and information under the heading 'Third Quarter 2025 Outlook and Guidance.'
These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) dependence upon the frequent introduction of new services and technologies based on the latest developments in the industry in which UMC operates; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international business activities; (iv) dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including natural disasters, terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risk factors is included in UMC's filings with the United States Securities and Exchange Commission, including its Annual Report on Form 20-F. All information provided in this release is as of the date of this release and are based on assumptions that UMC believes to be reasonable as of this date, and UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
The financial statements included in this release are prepared and published in accordance with Taiwan International Financial Reporting Standards, or TIFRSs, recognized by the Financial Supervisory Commission in the ROC, which is different from International Financial Reporting Standards, or IFRSs, issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from generally accepted accounting principles in the ROC and generally accepted accounting principles in the United States.
- FINANCIAL TABLES TO FOLLOW -
As of June 30, 2025
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
US$
NT$
%
Assets
Current assets
Cash and cash equivalents
3,825
111,994
20.4
%
Accounts receivable, net
1,106
32,380
5.9
%
Inventories, net
1,162
34,018
6.2
%
Other current assets
573
16,783
3.1
%
Total current assets
6,666
195,175
35.6
%
Non-current assets
Funds and investments
2,356
68,972
12.6
%
Property, plant and equipment
8,833
258,627
47.2
%
Right-of-use assets
249
7,291
1.3
%
Other non-current assets
617
18,079
3.3
%
Total non-current assets
12,055
352,969
64.4
%
Total assets
18,721
548,144
100.0
%
Liabilities
Current liabilities
Short-term loans
223
6,524
1.2
%
Payables
1,470
43,035
7.9
%
Dividends payable
1,222
35,788
6.5
%
Current portion of long-term liabilities
505
14,778
2.7
%
Other current liabilities
351
10,268
1.9
%
Total current liabilities
3,770
110,393
20.1
%
Non-current liabilities
Bonds payable
829
24,283
4.4
%
Long-term loans
591
17,318
3.2
%
Lease liabilities, noncurrent
184
5,382
1.0
%
Other non-current liabilities
1,835
53,723
9.8
%
Total non-current liabilities
3,439
100,705
18.4
%
Total liabilities
7,210
211,098
38.5
%
Equity
Equity attributable to the parent company
Capital
4,288
125,565
22.9
%
Additional paid-in capital
513
15,023
2.7
%
Retained earnings and other components of equity
6,704
196,284
35.8
%
Total equity attributable to the parent company
11,505
336,871
61.5
%
Non-controlling interests
6
174
0.0
%
Total equity
11,511
337,046
61.5
%
Total liabilities and equity
18,721
548,144
100.0
%
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2025 exchange rate of NT $29.28 per U.S. Dollar.
(2) Sums may not equal totals due to rounding.
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Year over Year Comparison
Quarter over Quarter Comparison
Three-Month Period Ended
Three-Month Period Ended
June 30, 2025
June 30, 2024
Chg.
June 30, 2025
March 31, 2025
Chg.
US$ NT$ NT$ % US$ NT$ NT$ %
Operating revenues
2,007
58,758
56,799
3.4
%
2,007
58,758
57,859
1.6
%
Operating costs
(1,430
)
(41,880
)
(36,816
)
13.8
%
(1,430
)
(41,880
)
(42,412
)
(1.3
%)
Gross profit
576
16,878
19,983
(15.5
%)
576
16,878
15,447
9.3
%
28.7
%
28.7
%
35.2
%
28.7
%
28.7
%
26.7
%
Operating expenses
- Sales and marketing expenses
(20
)
(591
)
(678
)
(12.8
%)
(20
)
(591
)
(619
)
(4.5
%)
- General and administrative expenses
(57
)
(1,682
)
(1,804
)
(6.8
%)
(57
)
(1,682
)
(1,542
)
9.1
%
- Research and development expenses
(143
)
(4,194
)
(3,853
)
8.9
%
(143
)
(4,194
)
(3,964
)
5.8
%
- Expected credit impairment gain (loss)
(0
)
(0
)
24
-
(0
)
(0
)
2
-
Subtotal
(221
)
(6,467
)
(6,311
)
2.5
%
(221
)
(6,467
)
(6,123
)
5.6
%
Net other operating income and expenses
14
409
219
86.6
%
14
409
462
(11.5
%)
Operating income
370
10,820
13,891
(22.1
%)
370
10,820
9,786
10.6
%
18.4
%
18.4
%
24.5
%
18.4
%
18.4
%
16.9
%
Net non-operating income and expenses
(23
)
(666
)
2,529
-
(23
)
(666
)
(439
)
51.5
%
Income from continuing operations
before income tax
347
10,154
16,420
(38.2
%)
347
10,154
9,347
8.6
%
17.3
%
17.3
%
28.9
%
17.3
%
17.3
%
16.2
%
Income tax expense
(45
)
(1,306
)
(2,645
)
(50.6
%)
(45
)
(1,306
)
(1,603
)
(18.5
%)
Net income
302
8,848
13,775
(35.8
%)
302
8,848
7,743
14.3
%
15.1
%
15.1
%
24.3
%
15.1
%
15.1
%
13.4
%
Other comprehensive income (loss)
(925
)
(27,075
)
1,375
-
(925
)
(27,075
)
4,489
-
Total comprehensive income (loss)
(623
)
(18,227
)
15,150
-
(623
)
(18,227
)
12,232
-
Net income attributable to:
Shareholders of the parent
304
8,903
13,786
(35.4
%)
304
8,903
7,777
14.5
%
Non-controlling interests
(2
)
(55
)
(11
)
398.2
%
(2
)
(55
)
(34
)
62.8
%
Comprehensive income (loss) attributable to:
Shareholders of the parent
(621
)
(18,172
)
15,161
-
(621
)
(18,172
)
12,266
-
Non-controlling interests
(2
)
(55
)
(11
)
401.2
%
(2
)
(55
)
(33
)
63.7
%
Earnings per share-basic
0.024
0.71
1.11
0.024
0.71
0.62
Earnings per ADS (2)
0.121
3.55
5.55
0.121
3.55
3.10
Weighted average number of shares
outstanding (in millions)
12,485
12,414
12,485
12,485
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2025 exchange rate of NT $29.28 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.
(3) Sums may not equal totals due to rounding.
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UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
For the Three-Month Period Ended For the Six-Month Period Ended
June 30, 2025 June 30, 2025
US$ NT$ % US$ NT$ %
Operating revenues
2,007
58,758
100.0
%
3,983
116,617
100.0
%
Operating costs
(1,430
)
(41,880
)
(71.3
%)
(2,879
)
(84,292
)
(72.3
%)
Gross profit
576
16,878
28.7
%
1,104
32,325
27.7
%
Operating expenses
- Sales and marketing expenses
(20
)
(591
)
(1.0
%)
(41
)
(1,210
)
(1.0
%)
- General and administrative expenses
(57
)
(1,682
)
(2.9
%)
(110
)
(3,225
)
(2.8
%)
- Research and development expenses
(143
)
(4,194
)
(7.1
%)
(279
)
(8,157
)
(7.0
%)
- Expected credit impairment gain (loss)
(0
)
(0
)
(0.0
%)
0
2
0.0
%
Subtotal
(221
)
(6,467
)
(11.0
%)
(430
)
(12,590
)
(10.8
%)
Net other operating income and expenses
14
409
0.7
%
30
871
0.8
%
Operating income
370
10,820
18.4
%
704
20,606
17.7
%
Net non-operating income and expenses
(23
)
(666
)
(1.1
%)
(38
)
(1,105
)
(1.0
%)
Income from continuing operations
before income tax
347
10,154
17.3
%
666
19,501
16.7
%
Income tax expense
(45
)
(1,306
)
(2.2
%)
(99
)
(2,909
)
(2.5
%)
Net income
302
8,848
15.1
%
567
16,591
14.2
%
Other comprehensive income (loss)
(925
)
(27,075
)
(46.1
%)
(771
)
(22,586
)
(19.4
%)
Total comprehensive income (loss)
(623
)
(18,227
)
(31.0
%)
(205
)
(5,995
)
(5.1
%)
Net income attributable to:
Shareholders of the parent
304
8,903
15.2
%
570
16,679
14.3
%
Non-controlling interests
(2
)
(55
)
(0.1
%)
(3
)
(88
)
(0.1
%)
Comprehensive income (loss) attributable to:
Shareholders of the parent
(621
)
(18,172
)
(30.9
%)
(202
)
(5,906
)
(5.1
%)
Non-controlling interests
(2
)
(55
)
(0.1
%)
(3
)
(88
)
(0.1
%)
Earnings per share-basic
0.024
0.71
0.046
1.34
Earnings per ADS (2)
0.121
3.55
0.229
6.70
Weighted average number of shares
outstanding (in millions)
12,485
12,485
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2025 exchange rate of NT $29.28 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.
(3) Sums may not equal totals due to rounding.
Expand
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statement of Cash Flows
For The Six-Month Period Ended June 30, 2025
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
US$ NT$
Cash flows from operating activities :
Net income before tax
666
19,501
Depreciation & Amortization
978
28,634
Share of profit of associates and joint ventures
(8
)
(238
)
Income tax paid
(93
)
(2,719
)
Changes in working capital & others
26
747
Net cash provided by operating activities
1,568
45,924
Cash flows from investing activities :
Increase in financial assets measured at amortized cost
(39
)
(1,145
)
Acquisition of property, plant and equipment
(741
)
(21,696
)
Acquisition of intangible assets
(47
)
(1,374
)
Others
146
4,271
Net cash used in investing activities
(681
)
(19,943
)
Cash flows from financing activities :
Decrease in short-term loans
(68
)
(1,991
)
Proceeds from bonds issued
178
5,200
Proceeds from long-term loans
96
2,800
Repayments of long-term loans
(601
)
(17,594
)
Others
(36
)
(1,043
)
Net cash used in financing activities
(431
)
(12,627
)
Effect of exchange rate changes on cash and cash equivalents
(217
)
(6,359
)
Net increase in cash and cash equivalents
239
6,994
Cash and cash equivalents at beginning of period
3,586
105,000
Cash and cash equivalents at end of period
3,825
111,994
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2025 exchange rate of NT $29.28 per U.S. Dollar.
(2) Sums may not equal totals due to rounding.
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1 Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending June 30, 2025, the three-month period ending March 31, 2025, and the equivalent three-month period that ended June 30, 2024. For all 2Q25 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the June 30, 2025 exchange rate of NT$ 29.28 per U.S. Dollar.
2 Revenue in this section represents wafer sales.
3 Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
4 Estimated capacity numbers are based on calculated maximum output rather than designed capacity. The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp-up.