TSMC Exits Arm with $231M Sale as UMC Reports 108% Profit Surge
TSMC fully divested its remaining 1.11 million Arm shares for $207.65 each, netting $231 million and completing its exit from the British chip designer. UMC reported Q1 revenue up 5.5% to NT$61.04 billion and net income soaring 108% to NT$16.17 billion, citing resilient demand despite memory shortages and Middle East volatility.
1. TSMC Completes Arm Divestment
TSMC Partners sold 1.11 million Arm shares between April 28–29 at $207.65 each, realizing $231 million and fully exiting its stake in the British chip designer after a year-long reduction.
2. UMC Q1 Financial Performance
United Microelectronics reported Q1 revenue of NT$61.04 billion, up 5.5% year-over-year, while net income more than doubled to NT$16.17 billion, driven by strong wafer shipments and resilient demand across communications, computing, consumer, and industrial markets.
3. Market Headwinds and Demand Outlook
UMC cited memory chip supply shortages and Middle East conflict as headwinds but forecasts robust second-quarter wafer shipments supported by a communications rebound and stable demand in other segments, highlighting ongoing market resilience.
4. Competitive Positioning in Chip Manufacturing
Unlike TSMC’s push into 2 nm and 1 nm AI-driven technologies, UMC focuses on mature nodes, allowing it to capture demand in established markets while TSMC deploys Arm exit proceeds toward advanced process development.