United Microelectronics (UMC), a leading wafer foundry, disclosed its financial results for the first quarter of 2024 today, noting a slight dip in both quarterly and annual revenues, with consolidated figures standing at NT$54.63 billion. This represents decreases of 0.6% and 0.8% respectively. The company reported a gross margin of 30.9% and a net profit after tax of NT$10.46 billion, resulting in earnings per share of NT$0.84, marking the lowest in three years.
Looking ahead to the second quarter, UMC forecasts a slight increase in wafer shipments by 1-3%, maintaining a stable average selling price in USD. The gross margin is expected to hover around 30%, with a capacity utilization rate between 64% and 66%. The company has earmarked capital expenditures of US$3.3 billion for the year.
Co-General Manager Wang Shi commented on the inventory adjustments in the computer, consumer, and communications sectors, anticipating a healthier market balance and a modest uptick in overall wafer shipments. However, demand in the automotive and industrial sectors remains tepid due to slower-than-expected inventory turnover.
Despite short-term economic uncertainties and cost pressures, UMC is steadfast in its commitment to technological advancements and capacity expansion, particularly in areas poised for growth like 5G and AI. In the first quarter, UMC saw a 4.5% increase in wafer shipments from the previous quarter, driven by rising demand for power management and AI server chips, with specialized processes contributing 57% to total revenue.
The company also continues to innovate, with R&D advancements in high-voltage integration and 3D IC technologies aimed at bolstering 5G, AIoT, and automotive applications. In line with its shareholder-friendly policy, UMC’s board has approved a higher dividend payout of about NT$3 per share, to be confirmed at the forthcoming May shareholder meeting.
