United Microelectronics Corp. posted a steep decline in fourth-quarter profit as the Taiwanese chipmaker grapples with persistent market challenges in the semiconductor industry.
The contract chip manufacturer’s net income fell 41% from the previous quarter to NT$8.5 billion ($270 million), while revenue remained relatively flat at NT$60.39 billion. The company maintained a gross margin of 30.4% during the period.
Despite the earnings slump, UMC’s co-president Wang Shi noted that wafer shipments and capacity utilization slightly exceeded expectations. The company’s annual revenue grew 4.4% in 2023, driven by steady demand across communications, consumer electronics, and computing sectors.
The chipmaker’s 22/28-nanometer technology remained a key revenue driver, posting 15% growth in 2023. UMC is accelerating production of its 22nm chips, targeting increased market share in next-generation communication technologies and display driver ICs. The company expects this advanced process to generate substantial revenue starting in 2025.
Customers are showing strong interest in upgrading to UMC’s 22nm platform, which offers improved power efficiency and performance compared to its 28nm predecessor.
