Category
United Microelectronics (UMC) saw its third-quarter net profits surge 91.8% sequentially, as a result of revenue growth and falling operating expenses.
UMC reported NT$3.48 billion (US$118.25 million) in net profits for the third quarter of 2013, with EPS arriving at US$0.28. Consolidated revenues for the quarter increased 4.7% sequentially and 10.7% from a year ago to NT$33.41 billion, with wafer shipments climbing to a record 1.329 million 8-inch equivalent wafers.
UMC guided previously for a 3-4% sequential shipment increase in the third quarter with flat growth in ASPs.
UMC saw 40nm and more advanced processes account for a combined 20% of its total revenues in the third quarter compared to 13% during the same period of 2012. UMC also disclosed its 28nm technology will account for a low single digit percentage of company revenues by the end of 2013. UMC now has more than 20 customers for its 28nm processes, and has attained tape-out for 30 IC products.
"During the last couple of quarters, the engineering group has focused relentlessly on yield enhancement activities to improve our 28nm manufacturing technologies. These accumulated efforts enabled 28nm Poly SiON and HKMG yields to accelerate its climb," UMC CEO Po-Wen Yen said in a statement. "In the upcoming months, we look forward to further optimizing 28nm yield levels to move more customers towards volume production."
"UMC is well positioned to benefit from the robust 28nm demand in the mobile industry for the next several years," Yen continued.
Looking forward, UMC expects its wafer shipments to drop 8-10% sequentially in the fourth quarter of 2013, with product ASPs falling about 2% on quarter. Utilization rate for the quarter will slip to around 75% from 87% in the third quarter.
"Primary factors that led to a weakened outlook stemmed from seasonal correction, supply chain inventory control and the uncertainties culminating in the macro economy," Yen indicated.
In addition, UMC disclosed its capex budget for 2013 will remain unchanged at US$1.5 billion, down slightly from US$1.7 billion in 2012.