UMC Reports Third Quarter 2018 Results

3Q18 reaches record high revenue of NT$39.39 billion; 14nm FinFET accounted for 5% of sales

Third Quarter 2018 Overview1:

  • Revenue: NT$39.39 billion (US$1.29 billion)
  • Gross margin: 17.6%
  • Foundry revenue from 28nm: 13%; Foundry operating margin: 6.4%
  • Foundry capacity utilization rate: 94%
  • Net Income attributable to stockholders of the parent: NT$1.72 billion (US$56 million)
  • Earnings per share: NT$0.14; earnings per ADS: US$0.023

TAIPEI, Taiwan — (BUSINESS WIRE) — October 24, 2018United 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 2018.

Third quarter consolidated revenue was NT$39.39 billion, up 1.4% QoQ from NT$38.85 billion in 2Q18 and 4.5% YoY from NT$37.70 billion in 3Q17. Consolidated gross margin for 3Q18 was 17.6%. Net income attributable to stockholders of the parent was NT$1.72 billion, with earnings per ordinary share of NT$0.14.

Jason Wang, co-president of UMC, said, “In the third quarter, foundry revenue reached a record high of NT$39.33 billion, up 1.4% from 2Q18. Foundry operating margin was 6.4%. Utilization rate reached 94%, bringing wafer shipments to 1.8 million 8-inch equivalent wafers. Loading across 8" and mature 12" technologies continued to operate at full capacity, as the company generated NT$10.16 billion of free cash flow during the quarter. In addition, we saw an increase in computing related applications, which offset the decline in the communication segment. From a long-term perspective, we believe numerous essential semiconductor components will continue to strengthen our specialty technology business. For example, Allegro Microsystems, a leader in high-performance power and sensor solutions, signed a multi-year manufacturing agreement with UMC to ensure long-term capacity support for their growing wafer requirements in industrial and automotive segments.”

Co-president Wang continued, “Looking into the next quarter, we are seeing a softening of wafer demand from customers, partly due to continued softness in entry and mid-end smartphones. The recent escalation of trade tensions, rising global crude oil prices and continuous weakening of emerging market currencies could further increase uncertainties in the broader economy. Meanwhile, we will continue the execution of our strategy to invest in return-driven goals while moderating the expansion of advanced technologies. We are confident that UMC’s globalization efforts will increase our customers’ competitive edge through geopolitical risk mitigation while enhancing shareholder value to preserve the best interests of all our stakeholders.”

1 Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending September 30, 2018, the three-month period ending June 30, 2018, and the equivalent three-month period that ended September 30, 2017. For all 3Q18 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the September 30, 2018 exchange rate of NT$ 30.53 per U.S. Dollar.

Summary of Operating Results

Operating Results
(Amount: NT$ million)       3Q18   2Q18  

QoQ %


YoY %

Net Operating Revenues       39,387   38,852   1.4   37,698   4.5
Gross Profit 6,922 6,675 3.7 6,592 5.0
Operating Expenses (5,702) (5,213) 9.4 (5,404) 5.5
Net Other Operating Income and Expenses 1,215 1,719 (29.3) 441 175.5
Operating Income 2,435 3,181 (23.5) 1,629 49.5
Net Non-Operating Income and Expenses (1,606) (1,095) 46.7 1,236 -
Net Income Attributable to Stockholders of the Parent 1,720 3,659 (53.0) 3,473 (50.5)
EPS (NT$ per share) 0.14 0.30 0.28
(US$ per ADS)       0.023   0.049       0.046    

1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16  Next Page »

Review Article Be the first to review this article

Featured Video
BIM Modeler for Woolpert at Oakbrook Terrace, Illinois
Upcoming Events
InterDrone 2020 at Hyatt Regency Dallas TX - Dec 15 - 17, 2020
Milipol Asia-Pacific 2021 at Singapore - Mar 23 - 25, 2021
University of Denver GIS Masters Degree Online

© 2020 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation TechJobsCafe - Technical Jobs and Resumes  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise