UMC optimistic about near-term outlook

UMC optimistic about near-term outlook
By Mike Clendenin, EE Times
April 30, 2003 (9:10 a.m. EST)
URL: http://www.eetimes.com/story/OEG20030429S0052

TAIPEI — United Microelectronics Corp. took an optimistic view of the current quarter on Wednesday (April 30) after releasing financial results that beat its previous guidance. The company expects second quarter wafer shipments to increase 20 percent, with the PC sector driving the most growth.

UMC revenue for the second quarter totaled $515 million (NT$17.90 billion), a 47 percent year-on-year increase and a 2 percent sequential increase. Net profit was down 59 percent from the fourth quarter, to $11.5 million (NT$403 million), but up 87 percent from a year ago. UMC attributed the sequential profit drop to non-operating losses.

Taiwan's No. 2 foundry joined its rival by taking an optimistic view of the near-term. On Tuesday, Taiwan Semiconductor Manufacturing Company, Ltd., also said wafer shipments would be up 20 percent this quarter and capacity utilization would top 80 percent. UMC's utilization will also exceed 80 percent, up from 67 p ercent in the first quarter. The company had only expected a 60 percent usage rate.

UMC said ASPs will be flat this quarter, despite a slight revenue increase from 0.18-micron or more advanced process technology.

Hsuan also noted that the foundry's "virtual IDM" strategy, which has its doubters, should help drive its growth as competition increases.

"We believe that the competitive landscape for the foundry business has changed dramatically and, since last quarter, have initiated a partnership foundry business model in which we and our partners form close relationships. In the short term, this allows the best utilization of our resources, and in the long term, we believe our profitability and growth rate will outperform other foundries," he said.