UMC 2024 Revenue Up 4.39% to NT$232.3B

On January 7, Taiwan-based semiconductor foundry UMC (United Microelectronics Corporation) announced its financial results for December 2024 and the fourth quarter. For December, UMC's revenue reached NT$18.966 billion, a 5.4% month-over-month decline but an 11.7% year-over-year increase. This marked the lowest revenue in the past three months. The fourth quarter saw total revenue of NT$60.386 billion, nearly flat compared to the previous quarter and reflecting a 9.87% year-over-year growth. For the full year of 2024, UMC achieved NT$232.3 billion in revenue, a 4.39% increase from the previous year, marking the second-highest annual revenue in company history.

UMC had previously anticipated that the fourth quarter's shipment volumes and average selling prices (ASP) would be similar to the previous quarter. However, the company faced pressure from capacity utilization and gross margins, leading to a downward revision of its capital expenditure to US$3 billion, a decrease of approximately 9%. Despite these challenges, UMC expressed optimism that demand in the computing sector would be stronger than expected, driving significant contributions to overall performance. In contrast, automotive and industrial sectors showed continued weakness. As a result, the company projected fourth-quarter capacity utilization to range between 66% and 69%, slightly lower than the third quarter's average of 71%.

Jason Wang, Director and President of UMC, provided insight into the company's outlook for the fourth quarter, stating, “We are seeing demand from various end markets gradually stabilize, with inventory levels showing a clear downward trend. Looking ahead, we are excited about several promising technologies and collaboration projects that are in progress. We will continue to closely align with our customers' product roadmaps.”

Recent market reports have suggested that semiconductor manufacturers are concerned about the potential expansion of future export restrictions. In response, IC design companies have increasingly turned to Taiwan for wafer fabrication, with UMC seeing a surge in urgent orders. These orders, particularly for 28nm and 22nm process nodes, have helped improve UMC's capacity utilization and mitigate the seasonal slowdown. Demand for applications such as Wi-Fi and network communications are expected to contribute significantly to this trend.