Contract chipmaker United Microelectronics Corp (UMC, 聯電) yesterday reported a sequential growth of 68 percent in net profit for last quarter and said its wafer shipments this year would grow 13 percent year-on-year.
UMC said net profit last quarter surged about 68 percent to NT$14.98 billion (US$489.1 million), the highest in about one-and-a-half years, compared with NT$8.9 billion in the second quarter. That represented annual growth of 3.52 percent from NT$14.47 billion.
Under a broad-based recovery in the industry’s mature process technologies, UMC said that strong demand for its 22-nanometer process technology would also drive its wafer shipments next year.
Photo: Taipei Times file photo
“We benefited from a pickup in sales of smartphones and notebook computers, driving replenishment orders from customers. Our 22-nanometer technology platforms continue to provide us with differentiation in the market, with 22-nanometer revenue now accounting for more than 10 percent of total sales,” UMC copresident Jason Wang (王石) told an online earnings conference yesterday.
This year alone, UMC said it would have more than 50 product tape-outs based on its 22-nanometer technology.
In the semiconductor industry, a tape-out refers to the final stage of the chip design cycle before it is sent for manufacturing.
UMC expects next year to be another growth year, despite the global economic uncertainty and geopolitical risks, Wang said.
The growth would be fueled by robust demand for UMC’s 22-nanometer technology used in producing high-end smartphone display driver ICs and other applications, he said.
As a result, the combined revenue from 22-nanometer and 28-nanometer technologies would grow by a double-digit percentage next year, Wang said.
The 22-nanometer and 28-nanometer technologies together contributed 35 percent to the chipmaker’s revenue last quarter.
UMC said the cooperation with Intel Corp to produce 12-nanometer chips in the US proceeds smoothly and is on track to start contributing revenue in 2027.
UMC is open to exploring future technology partnerships with Intel beyond 12-nanometer technology, as the partnership is helping UMC cement its market position in the US, Wang said.
In addition to the US and Singapore, UMC aims to “balance” its capacity split between Taiwan and overseas sites to boost supply chain resilience and address tariff issues, Wang said, adding that the ultimate goal is to supply customers from different regions.
Earnings per share rose to NT$1.2 from NT$0.71 in the second quarter and NT$1.16 from the third quarter last year.
Gross margin improved to 29.8 percent last quarter from 28.7 percent in the previous quarter. On an annual basis, gross margin dropped from 33.77. percent.
UMC said it expects wafer shipments and average selling prices this quarter to be flat on a quarterly basis, while gross margin stands at 26 to 28 percent.
The factory utilization rate is expected to be about 75 percent, slightly lower than 78 percent last quarter, it said.
The chipmaker retained its capital expenditure this year at US$1.8 billion.
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