Financial Data and Key Metrics - Consolidated revenue for Q1 2024 was NT$54.63 billion, with a gross margin of 30.9% [6] - Net income attributable to stockholders was NT$10.46 billion, with earnings per ordinary share of NT$0.84 [6] - Utilization rate in Q1 2024 was 65%, similar to 66% in Q4 2023, while wafer shipments increased by 4.5% sequentially [6] - Operating expenses decreased by 13.4% to NT$5.7 billion in Q1 2024, reflecting seasonal low points [7] - Cash position stood at NT$119 billion, with total equity of NT$378 billion, primarily driven by increases in PP&E, which reached NT$254 billion [8] Business Line Data and Key Metrics - Specialty business contributed 57% of total revenue, driven by demand for power management ICs, RFSOI chips, and silicon interposers for AI servers [11] - Revenue from Europe declined from 11% in Q4 2023 to 8% in Q1 2024 [9] - IDM compensation versus fabless revenue shifted to 18% versus 82% in Q1 2024, compared to 22% versus 78% in the previous quarter [10] - 20-28nm revenue percentage decreased to 33% due to seasonal adjustments, while other technology geometries remained stable [12] Market Data and Key Metrics - 12-inch equivalent capacity increased to 1.2 million in Q1 2024, primarily driven by the expansion of the Tainan fab (P6) [13] - CapEx for 2024 remains unchanged at NT$3.3 billion, with the majority allocated to 12-inch capacity expansion [10] Company Strategy and Industry Competition - The company is focusing on high-growth segments such as 5G, AIoT, and automotive markets, with advancements in embedded high-voltage, embedded non-volatile memory, RFSOI, and 3D IC solutions [12] - UMC plans to maintain a stable and predictable dividend policy, with a proposed cash distribution of NT$3 per share, subject to shareholder approval [12] - The company expects to capture 10%-20% of the AI semiconductor market, focusing on data transmission and power management ICs for AI servers [29] Management Commentary on Operating Environment and Future Outlook - Management expects wafer shipments to increase in Q2 2024 as inventory levels in computing, consumer, and communication segments improve [13] - Automotive and industrial segments remain muted due to slower-than-expected inventory digestion [13] - UMC anticipates macro uncertainties and cost headwinds in the near term but remains committed to investing in technology, capacity, and people to capture growth opportunities driven by 5G and AI innovations [14] Other Important Information - The company completed a one-time annual adjustment in ASP in Q1 2024, which offset the 4%-5% increase in wafer shipments [8] - Government subsidies declined significantly to NT$513 million in Q1 2024, aligning with the depreciation curve [7] Q&A Session Summary Question: Outlook for 28nm recovery and P6 capacity utilization [16] - Answer: 28nm wafer shipments are expected to recover in Q2 2024, supported by demand from communication and consumer segments [17] Question: Pricing environment and negotiations [18] - Answer: ASPs are expected to remain firm, with pricing adjustments focused on enhancing customer competitiveness [19] Question: CapEx allocation for Singapore fab expansion [21] - Answer: 60% of 2024 CapEx is allocated to infrastructure for the Singapore fab (P3), with production expected to start in January 2026 [23] Question: AI market opportunities and silicon interposer capacity [26] - Answer: UMC targets 10%-20% of the AI semiconductor market, focusing on data transmission and power management ICs, while maintaining 6,000 interposer capacity [29][31] Question: Specialty platforms like RFSOI and OLED driver ICs [36] - Answer: UMC is gaining market share in RFSOI and maintaining its position in embedded high-voltage and non-volatile memory [37] Question: 8-inch capacity flexibility and potential conversion to compound semiconductors [42] - Answer: UMC is exploring silicon carbide and gallium nitride technologies but remains focused on 8-inch mainstream applications [43] Question: Advanced packaging and 3D IC profitability [57] - Answer: UMC is cautious about expanding interposer capacity and focuses on cost-effective 3D IC solutions for edge AI and data center applications [31][59] Question: Depreciation and gross margin impact [72] - Answer: Depreciation is expected to grow by around 20% in 2024, with minimal impact on gross margin due to operational efficiency improvements [72] Question: Inventory correction and demand recovery [52] - Answer: Inventory levels are improving, but customers remain cautious, with AI servers driving growth while other segments recover more slowly [53][56] Question: Long-term competition and capacity expansion in China [98] - Answer: UMC is well-positioned with geographically diversified manufacturing sites and a comprehensive technology portfolio to navigate geopolitical challenges and competition [101][102]

Monty Rakusen/DigitalVision via Getty Images Introduction It has been around a year since I covered United Microelectronics (NYSE:UMC) first, so I wanted to look at the company’s performance throughout 2023 and see what’s in store going forward. The company’s share price went nowhere in the last year and only the dividend helped to push it to green. Given the tough macro environment in ´23, it was no surprise, however, now that the bottom seems to be setting in, I believe the company is going to see top ...

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS WITH REPORT OF INDEPENDENT AUDITORS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 Address: No. 3 Li-Hsin 2nd Road, Hsinchu Science Park, Hsinchu, Taiwan, R.O.C. Telephone: 886-3-578-2258 The reader is advised that these consolidated financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation b ...

TAIPEI, Taiwan--(BUSINESS WIRE)--United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC”), today reported unaudited net sales for the month of February 2024. Revenues for February 2024 Period 2024 2023 Y/Y Change Y/Y (%) February 17,451,268 16,931,079 520,189 3.07% Jan.-Feb. 36,464,965 36,520,594 -55,629 -0.15% (*) All figures in thousands of New Taiwan Dollars (NT$), except for percentages (**) All figures are consolidated Additional inform ...

TAIPEI, Taiwan--(BUSINESS WIRE)--United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC”), today reported unaudited net sales for the month of January 2024. Revenues for January 2024 Period 2024 2023 Y/Y Change Y/Y (%) January 19,013,697 19,589,515 -575,818 -2.94% Jan.-Jan. 19,013,697 19,589,515 -575,818 -2.94% (*) All figures in thousands of New Taiwan Dollars (NT$), except for percentages (**) All figures are consolidated Addit ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation m ...

United Microelectronics Corporation (NYSE:UMC) Q4 2023 Earnings Call Transcript January 31, 2024 4:00 AM ET Company Participants Michael Lin - Investor Relations Chi-Tung Liu - CFO, SVP, Head, Corporate Governance & Company Secretary Jason Wang - President & Representative Director Conference Call Participants Randy Abrams - UBS Nicholas Barrett - Macquarie Gokul Hariharan - JPMorgan Chase & Co. Bruce Lu - Goldman Sachs Group Charlie Chan - Morgan Stanley Brett Simpson - Arete Laura Chen - Citi Operator Wel ...

TAIPEI, Taiwan--(BUSINESS WIRE)--United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the fourth quarter of 2023. Fourth quarter consolidated revenue was NT$54.96 billion, decreasing 3.7% QoQ from NT$57.07 billion in 3Q23. Compared to a year ago, 4Q23 revenue declined 19.0% YoY from NT$67.84 billion in 4Q22. Consolidated gross margin for 4Q23 was 32.4%. Net income attributable t ...

Sunshine Seeds United Microelectronics (NYSE:UMC) shares have generally lagged the broader market in the past year and well behind semi leaders such as Nvidia (NVDA) and TSMC (TSM). UMC's revenue is estimated to be down about 21% in FY23 after growing 31% in FY22 due to a lackluster smartphone and PC market. The company does not currently have any advanced node processes for AI chip development, which can explain why it has not participated in the AI fueled rally. But, traditional end markets are showin ...

TAIPEI, Taiwan--(BUSINESS WIRE)--United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC”), today reported unaudited net sales for the month of December 2023. Revenues for December 2023 Period 2023 2022 Y/Y Change Y/Y (%) December 16,979,226 20,946,009 -3,966,783 -18.94% Jan.-Dec. 222,533,000 278,705,264 -56,172,264 -20.15% (*) All figures in thousands of New Taiwan Dollars (NT$), except for percentages. (**) All figures are consolidated Addit ...