UMC Reports First Quarter 2015 Results
United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the first quarter of 2015.
Revenue was NT$37.65 billion, with gross margin at 24.3% and operating margin at 10.9%. Net income attributable to the stockholders of the parent was NT$3.98 billion, with earnings per ordinary share of NT$0.32.
Mr. Po-Wen Yen, CEO of UMC, said “In the first quarter of 2015, our foundry revenue grew to NT$36.00 billion. Overall capacity utilization remained at 93%, bringing wafer shipments to 1.48 million 8-inch equivalent wafers. While 8″ fabs continued to run at full capacity, 12″ fabs recorded higher wafer shipments during 1Q15. Revenue contribution from 28nm and 40nm increased to 9% and 24% respectively, reflecting strong wafer demand for our leading edge technologies that helped enhance blended wafer ASP. For 2Q15, we anticipate wafer shipments to remain at similar levels as 1Q15, despite end-market uncertainties and customer inventory adjustments. We will pay close attention to market developments and adapt to any possible changes that may unfold. While progress continues on advanced logic, we have also qualified 55nm low power embedded flash IP from SST and Faraday to target auto, general purpose MCU, SIM/smartcard and Internet of Things (IoT) IC designs. The proliferation of connected devices will help UMC to realize more growth opportunities as these products will adopt our comprehensive logic/mixed-mode and specialty technologies.”
CEO Yen continued, “With regards to UMC’s global expansion progress, in March we held a groundbreaking ceremony in Xiamen, China to kick-off the construction of our new 12″ fab project. When the building structure is completed, we expect the fab cleanroom to be ready for equipment move-in by 2Q 2016, with initial production scheduled for late 2016. For our flagship 12″ Tainan fab, we recently held a public earth day event to promote environmental awareness to the community. As Taiwan experiences the worst drought in 10 years, UMC has committed to adopt more stringent measures on water & energy conservation and step up our efforts on waste reduction. With UMC’s effective conservation infrastructure in place, our fabs’ water recycling efficiency has reached up to 88%, saving more than 20 million tons of water in 2014. We have set higher goals to further reduce resource use by an additional 10% over current levels by 2020. In addition, UMC’s Board of Directors proposed a dividend payout of NT$0.55 per share for fiscal 2014, which strikes a balance between business expansion and return on shareholder equity. We believe our commitment to manufacturing excellence with a focus on global expansion will secure UMC’s long-term returns and enhance profitability to ensure shareholder value.”