Gross margin reached 35.2% as operating income increased 19.1% QoQ
Earnings per share in 1H was NT$1.95
Second Quarter 2024 Overview1:
- Revenue: NT$56.80 billion (US$1.75 billion)
- Gross margin: 35.2%; Operating margin: 24.5%
- Revenue from 22/28nm: 33%
- Capacity utilization rate: 68%
- Net income attributable to shareholders of the parent: NT$13.79 billion (US$425 million)
- Earnings per share: NT$1.11; earnings per ADS: US$0.171
TAIPEI, Taiwan — (BUSINESS WIRE) — July 31, 2024 — United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the second quarter of 2024.
Second quarter consolidated revenue was NT$56.80 billion, increasing 4.0% from NT$54.63 billion in 1Q24. Compared to a year ago, 2Q24 revenue increased 0.9%. Consolidated gross margin for 2Q24 was 35.2%. Net income attributable to the shareholders of the parent was NT$13.79 billion, with earnings per ordinary share of NT$1.11.
Jason Wang, co-president of UMC, said, “In the second quarter, wafer shipments increased 2.6% QoQ and fab utilization rate improved to 68% as we saw notable demand momentum in the consumer segment. Contribution from our 22/28nm business rose sequentially on healthy demand for WiFi and digital TV applications. Together with a favorable exchange rate and improved product mix, second-quarter gross margin was better than what was previously guided. During the quarter, we announced technology updates including a 3D IC solution to stack RFSOI wafers, which is the first of its kind in the industry, and a 22nm embedded high voltage platform, currently the most advanced display driver foundry solution in the market. They reflect UMC’s commitment to building on our leadership across a number of specialty technologies that are crucial for the development of AI, 5G, and automotive.”
Co-president Wang commented, “Looking to the third quarter, we expect to see end market dynamics improve further, particularly in the communication and computing segments, which will drive higher fab utilization. Our 22/28nm business remains a promising growth driver, with a number of tape-outs taking place in the second half for applications including display drivers, connectivity and networking. At the same time, we do expect to face some margin pressure going into the second half due to a pickup in depreciation expense related to capacity expansions as well as higher utility rates. Despite these cost challenges, we believe we will continue to demonstrate our resilience as we did during the recent market downturn, and deliver on our strategy of providing differentiated technology solutions and a diversified manufacturing footprint to help our customers to strengthen their supply chain management.”
Co-president Wang added, “In pursuit of our net-zero by 2050 goal, UMC continues to take concrete steps to drive emissions reduction in our operations and supply chain, and to increase our use of renewable energy. We are on track to achieving our progressive 2025 and 2030 targets. More details on our ESG progress will be made available to stakeholders in our upcoming Sustainability Report.”
Summary of Operating Results
Operating Results |
||||||||||
(Amount: NT$ million) |
2Q24 |
|
1Q24 |
|
QoQ %
|
2Q23 |
|
YoY %
|
||
Operating Revenues |
56,799 |
|
54,632 |
|
4.0 |
|
56,296 |
|
0.9 |
|
Gross Profit |
19,983 |
|
16,899 |
|
18.2 |
|
20,252 |
|
(1.3 |
) |
Operating Expenses |
(6,311 |
) |
(5,747 |
) |
9.8 |
|
(5,718 |
) |
10.4 |
|
Net Other Operating Income and Expenses |
219 |
|
513 |
|
(57.3 |
) |
1,141 |
|
(80.8 |
) |
| Operating Income |
13,891 |
|
11,665 |
|
19.1 |
|
15,675 |
|
(11.4 |
) |
| Net Non-Operating Income and Expenses |
2,529 |
|
1,056 |
|
139.4 |
|
2,810 |
|
(10.0 |
) |
| Net Income Attributable to Shareholders of the Parent |
13,786 |
|
10,456 |
|
31.8 |
|
15,641 |
|
(11.9 |
) |
| EPS (NT$ per share) |
1.11 |
|
0.84 |
|
|
1.27 |
|
|
||
| (US$ per ADS) |
0.171 |
|
0.130 |
|
|
0.196 |
|
|
||
