July 08, 2022
Wafer foundry UMC announced yesterday (6) that its consolidated revenue in June was 24.82 billion yuan, a record high for nine consecutive months, with a monthly increase of 1.6%; in the second quarter, its consolidated revenue surged to 72.05 billion yuan, the highest in the past year. It was the best quarter, with a quarterly increase of 13.6%, which was better than market expectations of a quarterly increase of 7% to 9%.
UMC's first-quarter profit was 19.81 billion yuan, a new high, with a net profit of 1.61 yuan per share, and its gross profit margin exceeded the four-digit mark, reaching 43.4%, better than expected.
According to analysis, UMC’s revenue in the second quarter was better than expected. In addition to exchange rate assistance, at the previous shareholders meeting, general manager Jian Shanjie revealed that the 10,000-piece capacity expansion of Nanke’s P5 plant has entered mass production last quarter. The average selling price (APS) of products increased, and the new production capacity and the price increase simultaneously drove the performance growth.
UMC's consolidated revenue in June increased by 43.2% year-on-year; in the first half of the year, consolidated revenue was 135.47 billion yuan, a new high for the same period, with an annual increase of 38.2%.
UMC is scheduled to hold a legal meeting on July 27 to announce its financial report for the last quarter and the latest operating outlook. UMC's share price has been dragged down by the slump in Taiwan stocks recently. After ex-dividend on June 22, the share price plummeted. It closed at 37.15 yuan yesterday, down 1.75 yuan.
Affected by global inflation, interest rate hikes, etc., terminal demand has cooled, foreign investment analysis, Asian customer demand has weakened in the third quarter, including the weak demand of smart machine system single chip (SoC) and panel driver IC (DDI) leading manufacturers, but the US smart The demand for single-chip power IC manufacturers for mobile phones is still maintaining positive growth. With one decrease and one increase, the market research agency estimates that the impact on UMC's capacity utilization rate this quarter will decrease by 1 to 2 percentage points quarterly. In other words, from the 101% overload level in the second quarter to the 99% to 100% full load level in the third quarter.
Although the market survey agency is bearish, UMC is still optimistic that the overall demand situation will remain unchanged. The 28nm P5 plant of Nanke Fab 12A has expanded its production capacity by 10,000 wafers and has entered mass production, which will help to become the growth momentum of subsequent operations. Demand from long-term customers such as , industrial, Netcom, and cloud computing is still tight.