UMC Clocks 10% Sequential Revenue Decline In Q4; Issues Cautious Outlook
Benzinga
Jan 17, 2023
United Microelectronics Corp (NYSE:UMC) reported fourth-quarter FY22 revenue growth of 14.8% year-on-year to $2.21 billion (NT$67.84 billion), beating the consensus of $2.15 billion. The revenue decreased by 10% Q/Q due to inventory correction within the semi-industry, which lowered wafer shipments.
Revenue from 22 and 28nm grew to 28% of the wafer revenue, while 40nm contributed 17% of sales.
The gross margin expanded by 380 basis points to 42.9%.
Earnings per ADS of $0.251 beat the consensus of $0.250.
Capital expenditure spending totaled $1.2 billion.
Jason Wang, co-president of UMC, said, "In the fourth quarter, due to a significant slowdown across most of our end markets and inventory correction in the semiconductor industry, our wafer shipments fell 14.8% QoQ while overall fab utilization rate dropped to 90%. Average selling price increased slightly during the quarter as a result of our ongoing product mix optimization efforts, moderating the decline in revenue."
Outlook: UMC expects Q1 FY23 wafer shipments to decrease in the high teens % range. It expects the ASP in USD to remain flat. It expects capacity utilization of 70%.
UMC sees a 2023 capex of $3.0 billion.
Price Action: UMC shares closed lower by 0.92% at $7.50 on Friday.
Photo Via Company
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.