According to sources in the IC design industry, UMC plans to raise the foundry price by 10% starting in the first quarter of 2022.
The source pointed out that the new price will apply to UMC's three major customers. In the past year, although UMC has increased prices many times, these three major customers are not affected by the price increase because of the long contracts signed before.
UMC’s three major customers are Samsung Electronics, MediaTek, and Novatek. According to sources, UMC expects to negotiate new long-term contracts at a higher price as existing contracts with customers are about to expire.
According to UMC's financial report, its profit in the first three quarters of 2021 has increased by more than 100%, and its average gross profit margin has increased from 10.4% to 31.8% year-on-year. The company expects the gross profit margin in the fourth quarter will further rise to 37%-39%.