UMC Reports Second Quarter 2012 Results

2Q results exceed guidance; revenue growth to continue into 3Q

(PRNewswire) —

TAIPEI, Taiwan, July 25, 2012 /PRNewswire-Asia/ --

Second Quarter 2012 Overview (Note 1):

  • Revenue: increased 16.2% QoQ to NT$27.62 billion (US$924.67 million)
  • Gross margin: 24.4%; operating margin: 11.5%
  • Capacity utilization: 84%
  • Net income: NT$2.99 billion (US$100.10 million)
  • Earnings per share: NT$0.24; earnings per ADS: US$0.04

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its unconsolidated operating results for the second quarter of 2012.

Revenue was NT$27.62 billion, a 16.2% quarter-over-quarter increase from NT$23.77 billion in 1Q12, and a 1.9% year-over-year decrease from NT$28.15 billion in 2Q11.  Gross margin was 24.4%, operating margin was 11.5%, net income was NT$2.99 billion, and earnings per ordinary share were NT$ 0.24.

Dr. Shih-Wei Sun, CEO of UMC, said, "In 2Q 2012, UMC's results exceeded our expectations. Wafer shipments grew 18.6% quarter-over-quarter to reach 1.14 million 8-inch equivalent wafers, bringing overall capacity utilization to 84%.  Strength from the communication and consumer sectors mainly contributed to the increased shipments.  For the upcoming quarter, we expect mild revenue growth, with 40nm percentage contribution increasing significantly as volume production begins for several new products."

Dr. Sun continued, "40nm, 28nm, 20nm, FinFET 3D transistor technology and the groundbreaking for our Fab 12A P5&P6 in Tainan, Taiwan will solidify UMC's leading-edge technology and capacity foundation to further advance UMC into the next round of growth. Obtaining IBM's 20nm process design kit and FinFET technology will expedite the development of our internal technologies, enabling customers to realize the next generation of low power consumption chips for mobile communication and computing applications.  With a complete portfolio of 28nm and 20nm process technologies, Fab 12A P5&P6 readiness is timed to provide sufficient advanced capacity to propel UMC and its customers into a new growth phase.  These efforts to secure industry forefront technology and adequate capacity demonstrate UMC's leadership under our 'Customer-Driven Foundry Solutions' approach, and have been overwhelmingly well received from our customers and partners."

Dr. Sun added, "UMC's advanced technology business is entering another growth cycle. Through our upcoming efforts to enhance mass production technology, capacity expansion, and customer service, we anticipate leading-edge revenue contribution to increase substantially during the second half of this year.  However, we are cautious due to the potential for chip demand volatility in the near future, as end demand uncertainties elevate in light of growing European sovereign debt issues, supply chain inventory and customers adopting a conservative stance.  We are watching the situation closely so we may respond accordingly to any status changes, while at the same time developing leading-edge and specialty technologies, thus strengthening UMC's solid foundation to ensure stable, long-term growth."

Summary of Operating Results

Operating Results

(Amount: NT$ million)

2Q12

1Q12

QoQ %
change

2Q11

YoY %
change

Revenue

27,620

23,765

16.2

28,150

(1.9)

Gross Profit

6,740

4,550

48.1

6,718

0.3

Operating Expenses

(3,558)

(3,226)

10.3

(3,398)

4.7

Operating Income

3,182

1,324

140.3

3,320

(4.2)

Non-Operating Income

261

169

54.4

203

28.6

Net Income

2,990

1,335

124.0

3,192

(6.3)

EPS   (NT$ per share)

0.24

0.11


0.26


         (US$ per ADS)

0.040

0.018


0.044



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