22/28nm shipments reached record high as Q3 net income increased 5% sequentially
Third Quarter 2024 Overview1:
- Revenue: NT$60.49 billion (US$1.91 billion)
- Gross margin: 33.8%; Operating margin: 23.3%
- Revenue from 22/28nm: 35%
- Capacity utilization rate: 71%
- Net income attributable to shareholders of the parent: NT$14.47 billion (US$457 million)
- Earnings per share: NT$1.16; earnings per ADS: US$0.183
TAIPEI, Taiwan — (BUSINESS WIRE) — October 30, 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 third quarter of 2024.
Third quarter consolidated revenue was NT$60.49 billion, increasing 6.5% from NT$56.80 billion in 2Q24. Compared to a year ago, 3Q24 revenue increased 6.0%. Consolidated gross margin for 3Q24 was 33.8%. Net income attributable to the shareholders of the parent was NT$14.47 billion, with earnings per ordinary share of NT$1.16.
Jason Wang, co-president of UMC, said, “In the third quarter, we delivered results that were in line with guidance. In particular, wafer shipments grew more than expected, increasing 7.8% sequentially due to strong demand for 22/28nm products. Our strategy is to develop specialty technology solutions that deliver best-in-class performance, and I am pleased to report that revenue in absolute dollar derived from our specialty portfolio hit a record high in the third quarter, accounting for 53.1% of total sales. In our industry, technology is fundamental. We continue to invest significantly in technology development every year to ensure we are ready to support customers’ next-generation product features with more advanced solutions. For instance, our 22nm display driver solution was the first to be made available to the market and offers unparalleled performance, and we foresee strong tape-out momentum in the upcoming months.”
Co-president Wang commented, “With regards to Q4 outlook, we are seeing demand stabilizing across end markets and a clear downward trend in inventory levels. Looking ahead, we have a number of exciting technology and collaboration projects in the pipeline as we continue to align closely with our customers’ product roadmaps. In addition, as we hear consistently from customers, UMC’s diversified manufacturing footprint is also very important in supporting their long-term strategies. Our new fab expansion in Singapore is nearing completion while our collaboration with Intel remains on track. These projects will further enhance our value proposition to customers and strengthen our position in the foundry industry.”
Co-president Wang added, “We released our 2023 Sustainability Report during the third quarter, which is available on our website for all stakeholders to read. I would like to highlight the progress we have made towards our energy transition goals, with renewable energy use doubling in 2023 from the previous year to account for 11.1% of UMC’s total energy consumption. With a 181-megawatt peak renewable energy purchase agreement coming into effect this year, we are on track to achieving our progressive targets of 25% renewable energy by 2025 and 50% by 2030.”
Summary of Operating Results
Operating Results |
||||||||||
(Amount: NT$ million) |
3Q24 |
|
2Q24 |
|
QoQ %
|
3Q23 |
|
YoY %
|
||
Operating Revenues |
60,485 |
|
56,799 |
|
6.5 |
|
57,069 |
|
6.0 |
|
Gross Profit |
20,429 |
|
19,983 |
|
2.2 |
|
20,461 |
|
(0.2 |
) |
Operating Expenses |
(6,559 |
) |
(6,311 |
) |
3.9 |
|
(5,722 |
) |
14.6 |
|
Net Other Operating Income and Expenses |
230 |
|
219 |
|
4.8 |
|
573 |
|
(59.9 |
) |
| Operating Income |
14,100 |
|
13,891 |
|
1.5 |
|
15,312 |
|
(7.9 |
) |
| Net Non-Operating Income and Expenses |
2,464 |
|
2,529 |
|
(2.5 |
) |
3,336 |
|
(26.1 |
) |
| Net Income Attributable to Shareholders of the Parent |
14,472 |
|
13,786 |
|
5.0 |
|
15,971 |
|
(9.4 |
) |
| EPS (NT$ per share) |
1.16 |
|
1.11 |
|
|
1.29 |
|
|
||
| (US$ per ADS) |
0.183 |
|
0.175 |
|
|
0.204 |
|
|
||
