UMC June Revenue Down to NT$17.548 Billion

On July 4, UMC, a leading semiconductor foundry, released its financial results for June. The company reported consolidated revenue of NT$17.548 billion, reflecting a 10.05% decrease from the previous month and a 7.91% decline compared to the same period last year.

For the second quarter, UMC achieved consolidated revenue of NT$56.799 billion, marking a modest 3.97% increase from the previous quarter and a slight 0.89% year-on-year growth. This performance represents the second-highest revenue for the same period in the company's history.

In the first half of 2024, UMC's consolidated revenue reached NT$111.431 billion, showing a slight increase of 0.84% compared to the same period last year.

During a recent earnings call, UMC's management highlighted that inventory levels in the computer, consumer, and communication sectors are returning to healthier levels, leading to a slight increase in overall wafer shipment volume. However, slower-than-expected inventory digestion in the automotive and industrial sectors continues to affect demand.

The company expects the average selling price of wafers in USD to remain stable in Q2, consistent with Q1 levels. The gross margin in Q1 was 30.9%, with an estimated Q2 gross margin of approximately 30%. While Q1 wafer shipments saw a 4.5% quarter-on-quarter increase, UMC anticipates a low single-digit percentage growth (around 1% to 3%) in Q2 shipments. Capacity utilization is projected to decrease from 65% in Q1 to 60% in Q2. Capital expenditures for 2024 are maintained at $3.3 billion.

The slight quarter-on-quarter increase in Q2 consolidated revenue aligns with previous expectations of moderate growth, underscoring UMC's steady performance amidst market fluctuations.