August 05, 2015, anysilicon
UMC’s CEO, Po-Wen Yen, confirmed the drop of 5% on wafer shipment performance for the third quarter of 2015. The CEO justified this forecast by referring to a restricted market visibility and to weaknesses in the demand due to the uncertain economic environment. Not only, Po-Wen-Yen mentioned also the inventory adjustments already announced at the beginning of the first quarter 2015 which are expected to last till the second half of the year.
Despite the foreseen drop in Q3-15, UMC registered a shipping record of 1.54 million 8-inch equivalent wafers in Q2. The company reached the incredible result of 94% of its production capacity mainly focusing on the 28nm products which, according to the official company’s statements, represent 11% of the company foundry current business. However, the 28mn technology has just recently started to receive attention from the market. Indeed, back in the same quarter of last year the same products were only reaching the 1% of the company’s demand and 9% during the first quarter of the year.
Taking a quick look back at the performance of the past 2 quarters of 2015, UMC generated revenues of US$1.23 billion for the second quarter. This result was 1% sequentially but down 6% compared to last year. Also the gross margins found a small inflection of 1.4% in contrast to the 24.3% registered in the first quarter and the 22.9% in second quarter 2014. However, we can’t help to notice the extraordinary result generated by UMC in net profits during the second quarter of 2015: NT$4.6 billion with the EPS arriving at NT$0.37. As predictable also second quarter revenues of UMC’s foundry business reached NT$36.52 billion and 25.1% gross margin.
As already prospected, the third quarter 2015 scenario is not as bright as the previous one. UMC expects to go under the 90% usage of its production capacity and, par consequences, shipments will drop in between 3 to 5%.
See here UMC profile page.