UMC's third-generation semiconductor encounters headwinds, and its subsidiary's Q3 profit plummets by 80%

According to Juheng.com, due to the fact that there is still some silicon-based semiconductors in production capacity, and the impact of the slowdown in consumer electronics demand in the second half of the year, the third-quarter profit of Lian Ying Optoelectronics shrank to NT$65.51 million (units are the same below). This is a drop of more than 80% from the previous quarter.

Lian Ying Optoelectronics is a subsidiary of UMC holding about 80% of the shares. Last year, it made a profit of 504 million yuan. In the first and second quarters of this year, its profits were 341 million yuan and 355 million yuan respectively. The profit for three consecutive quarters has exceeded 300 million yuan. , and grow quarter by quarter. However, as Lian Ying mainly provides 6-inch compound semiconductor wafer foundry services, it is greatly affected by the fluctuation of the economic cycle. With the weakening of the consumer electronics market since the third quarter, the capacity utilization rate has also declined, resulting in a sharp decline in profits.

In the second half of this year, two major Taiwanese factories, Hon Hai and UMC, sprinted for the third-generation semiconductor. Hon Hai stated that it will integrate a one-stop supply chain and attack the third-generation semiconductor field; UMC uses its subsidiary Lianying Optoelectronics as an indicator. Currently, its production capacity is fully loaded. It plans to expand production capacity to meet demand, and move towards more advanced 8-inch wafers and Diversified applications are moving forward.

Lianying's products include GaAs next-generation HBT technology, 0.15-micron pHEMT technology, GaN high-power components to SAW filters, and branch out into optoelectronic component manufacturing. After gaining a firm foothold in the 6-inch market, Lianying is now actively deploying in the 8-inch market. It is reported that Lianying still has a small number of niche silicon-based semiconductor production capacity. It plans to gradually increase the proportion of compound semiconductors and reduce silicon-based semiconductor production capacity. The goal is to fully switch to compound semiconductor manufacturing within 2 to 3 years.