UMC: Lowering quotations will have limited benefit in increasing capacity utilization

According to market news, IC design companies have reduced orders to cope with inventory adjustments in the entire industry supply chain, and UMC's fab capacity utilization has dropped sharply. But despite this, UMC intends to keep its offer unchanged.

In this regard, according to the Taiwan media "Central News Agency", UMC pointed out that it will provide capacity utilization and quotation status on a quarterly basis, and currently does not comment on the quotation trend next year. Due to the obvious decline in market demand, 2023 is expected to be a challenging year. UMC believes that the capacity utilization rate and the quotation have a linkage relationship. Currently, most customers focus on digesting inventory, and lowering the quotation will have limited help in improving the capacity utilization rate.

Previously, Wang Shi, general manager of UMC, revealed at the law conference that the capacity utilization rate in the fourth quarter may drop to 90%, wafer shipments will decrease by about 10%, the average selling price of products will be flat, and the gross profit margin will be about 41% to 43%. %. In addition, UMC announced that it will reduce this year's capital expenditure to 3 billion US dollars.