UMC Reports Third Quarter 2012 Results

3Q results in line with guidance; Revenue from leading edge 40nm and specialty technologies continues to grow

(PRNewswire) —

Third Quarter 2012 Overview[1]:

  • Revenue: increased 3.3% QoQ to NT$28.53 billion (US$973.22 million)
  • Gross margin: 24%; operating margin: 12.7%
  • Capacity utilization: 84%
  • Net income: NT$2.42 billion (US$82.46 million)
  • Earnings per share: NT$0.19; earnings per ADS: US$0.032

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

Revenue was NT$28.53 billion, a 3.3% quarter-over-quarter increase from NT$27.62 billion in 2Q12, and a 13.3% year-over-year increase from NT$25.19 billion in 3Q11.  Gross margin was 24%, operating margin was 12.7%, net income was NT$2.42 billion, and earnings per ordinary share were NT$ 0.19.

Dr. Shih-Wei Sun, CEO of UMC, said, "In 3Q 2012, both UMC's revenue and operating profit continued to grow.  Wafer shipments reached 1.13 million 8-inch equivalent wafers, with overall capacity utilization at 84%.  Increased 40nm revenue contribution led to higher average selling price, which contributed to 3Q revenue growth.  With the share of 40nm sales growing from 9% to 13% quarter-over-quarter due to solid 40nm chip demand, we anticipate our 15% year-end internal revenue target from 40nm to be achieved ahead of schedule.  In addition to 40nm, we are providing our customers with the most competitive and innovative embedded flash specialty technologies for the rising touch-sensor chipset market.  This platform has been successfully adopted by numerous industry leading customers with many products currently in mass production.  We are optimistic that these specialty technologies will inject UMC with new growth momentum in the coming future."

Dr. Sun continued, "28nm progress is within our expectation, with yield enhancement of design-in products continuing to improve.  For first-wave 28nm product matching business, we are seeing evident yield progression for ported ICs after adjusting our process and device parameters during recent months.  UMC also successfully taped out a mobile communication product in 3Q using our 28nm high-k/-metal-gate (gate-last) process.  We are subsequently collaborating closely with customers for their 28nm mobile communication & computing, wired & wireless connectivity, DTV, data storage controller, and programmable logic products.  Meanwhile, based on our IBM FinFET licensing, UMC has decided to aggressively develop 14nm FinFET technology on 20nm metal.  14nm FinFET will deliver the most optimal low-power and high-performance solution to offset the cost impact from using double patterning lithography."           

Dr. Sun added, "Foundry is prone to both inventory correction and industry cycles.  We expect the present inventory adjustment to continue into early next year.  The momentum of the demand recovery in 2013 will be determined by macroeconomic conditions, end demand strength and the transition progress for new products entering the market.  In the meantime, UMC will continue to enhance its customer composition and product mix, and further exercise flexible capacity deployment to accommodate evolving production requirements.  UMC is also strengthening its tailored cooperation with leading-edge and specialty technology customers for specific products and applications to provide a full-range of 'Customer-Driven Foundry Solutions.'"     

Summary of Operating Results

Operating Results

(Amount: NT$ million)



QoQ %


YoY %







Gross Profit






Operating Expenses






Operating Income






Non-Operating Income






Net Income






EPS   (NT$ per share)




         (US$ per ADS[2])




1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12  Next Page »

Review Article Be the first to review this article
Downstream : Solutuions for Post processing PCB Designs

Featured Video
More Editorial  
Senior FPGA Designer for Fidus Electronic Product Development at Fremont, CA
Verification Engineer for Ambarella at Santa Clara, CA
Test Development Engineer(Job Number: 17001697) for Global Foundaries at Santa Clara, CA
Technical Support Engineer for EDA Careers at Freemont, CA
Engr, Elec Des 2 for KLA-Tencor at Milpitas, CA
ASIC Design Engineer for Ambarella at Santa Clara, CA
Upcoming Events
CDNLive Silicon Valley 2017 at Santa Clara Convention Center Santa Clara CA - Apr 11 - 12, 2017
10th Anniversary of Cyber-Physical Systems Week at Pittsburgh, PA, USA PA - Apr 18 - 21, 2017
DVCon 2017 China, April 19, 2017, Parkyard Hotel Shanghai, China at Parkyard Hotel Shanghai Shanghai China - Apr 19, 2017
Zuken Innovation World 2017 at Hilton Head Marriott Resort & Spa Hilton Head Island NC - Apr 24 - 26, 2017
DownStream: Solutions for Post Processing PCB Designs
Verific: SystemVerilog & VHDL Parsers

Internet Business Systems © 2017 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy