UMC May Revenue Hits NT$19.5B, Second Highest Ever

On June 6, United Microelectronics Corporation (UMC) announced its consolidated revenue for May, reaching NT$19.509 billion. This represents a 1.17% decrease from the previous month but a significant 3.89% increase compared to NT$18.778 billion in May of the previous year. The cumulative consolidated revenue for the first five months of 2024 totaled NT$93.882 billion, showing a 2.66% year-over-year growth and marking the second-highest performance for this period, just behind 2022.

During the recent earnings call, UMC provided an optimistic outlook for the second quarter. The company expects wafer shipments to increase by a low single-digit percentage, with the average selling price (ASP) anticipated to remain stable at first-quarter levels. The new capacity at the 12A P6 facility is coming online, leading to an estimated capacity utilization rate of 64% to 66% and a gross margin of approximately 30%.

At the end of May, UMC held its annual shareholders' meeting, where shareholders approved a cash dividend of NT$3 per share and various other proposals. The meeting also saw the successful re-election of nine directors.

Co-President Wang Shi emphasized UMC's strategic focus on AI edge computing during the shareholders' meeting. He highlighted the company’s deep involvement in AI, forecasting that UMC could capture 10% to 20% of the market demand for AI-related products as the industry continues to grow. This development is expected to be a major driver of UMC's future revenue growth.

Wang also expressed confidence in UMC's future despite the cyclical changes observed in the semiconductor market last year. He noted the company's success with the 22nm and 28nm processes and its ongoing efforts to enhance competitiveness through the development of special processes and comprehensive solutions. UMC is advancing its 12nm process technology and continuing work on 40nm and 55nm special processes.