UMC Reports Second Quarter 2024 Results
United Microelectronics (UMC) reported its Q2 2024 results, showing improved performance compared to Q1. Revenue increased 4.0% QoQ to NT$56.80 billion, with gross margin reaching 35.2%. Net income rose 31.8% to NT$13.79 billion, resulting in earnings per share of NT$1.11. Key highlights include:
- Wafer shipments increased 2.6% QoQ
- Fab utilization improved to 68%
- 22/28nm revenue contribution rose to 33%
- Q3 outlook: Wafer shipments to increase mid-single digit %, ASP to remain firm
- 2024 CAPEX budget set at US$3.3 billion
UMC saw notable demand momentum in the consumer segment and expects further improvement in end market dynamics for Q3, particularly in communication and computing segments.
United Microelectronics (UMC) ha riportato i risultati del Q2 2024, mostrando un miglioramento delle performance rispetto al Q1. I ricavi sono aumentati del 4,0% rispetto al trimestre precedente, raggiungendo NT$56,80 miliardi, con un margine lordo del 35,2%. Il reddito netto è aumentato del 31,8%, raggiungendo NT$13,79 miliardi, con un utile per azione di NT$1,11. I punti salienti includono:
- Le spedizioni di wafer sono aumentate del 2,6% QoQ
- L'utilizzo della fabbrica è migliorato al 68%
- Il contributo ai ricavi delle tecnologie 22/28nm è aumentato al 33%
- Previsioni Q3: aumento delle spedizioni di wafer in una media a una cifra %, ASP rimarrà stabile
- Budget CAPEX per il 2024 fissato a 3,3 miliardi di dollari USA
UMC ha visto un notevole slancio nella domanda nel segmento consumer e prevede ulteriori miglioramenti nella dinamica di mercato per il Q3, in particolare nei segmenti della comunicazione e del computing.
United Microelectronics (UMC) reportó sus resultados del Q2 2024, mostrando un rendimiento mejorado en comparación con el Q1. Los ingresos aumentaron un 4,0% QoQ, alcanzando NT$56,80 mil millones, con un margen bruto del 35,2%. El ingreso neto creció un 31,8% hasta NT$13,79 mil millones, lo que resultó en ganancias por acción de NT$1,11. Los puntos destacados incluyen:
- Los envíos de obleas aumentaron un 2,6% QoQ
- La utilización de la fábrica mejoró al 68%
- La contribución a los ingresos de 22/28nm aumentó al 33%
- Perspectivas Q3: aumento de envíos de obleas en un porcentaje de uno solo, ASP permanecerá firme
- Presupuesto de CAPEX para 2024 fijado en 3.3 mil millones de dólares
UMC vio un notable impulso en la demanda en el segmento de consumo y espera una mayor mejora en la dinámica del mercado final para el Q3, particularmente en los segmentos de comunicación y computación.
유나이티드 마이크로일렉트로닉스 (UMC)는 Q2 2024 실적을 발표하며 Q1에 비해 개선된 성과를 보여주었습니다. 매출은 QoQ로 4.0% 증가하여 NT$56.80억에 달했습니다, 총 이익률은 35.2%에 도달했습니다. 순이익은 NT$13.79억으로 31.8% 증가했습니다, 주당 순이익은 NT$1.11입니다. 주요 하이라이트는 다음과 같습니다:
- 웨이퍼 출하량은 QoQ로 2.6% 증가했습니다.
- 공장 가동률은 68%로 개선되었습니다.
- 22/28nm의 매출 기여는 33%로 증가했습니다.
- Q3 전망: 웨이퍼 출하량은 중간 단일 자릿수 % 증가, ASP는 안정적으로 유지될 것입니다.
- 2024년 CAPEX 예산은 33억 달러로 설정되었습니다.
UMC는 소비자 부문에서 주목할 만한 수요 모멘텀을 보았고 Q3의 최종 시장 역학에서 특히 통신 및 컴퓨팅 부문에서 추가 개선을 기대하고 있습니다.
United Microelectronics (UMC) a publié ses résultats du Q2 2024, montrant une performance améliorée par rapport au Q1. Les revenus ont augmenté de 4,0% par rapport au trimestre précédent, atteignant NT$56,80 milliards, avec une marge brute s'élevant à 35,2%. Le revenu net a augmenté de 31,8% pour atteindre NT$13,79 milliards, ce qui représente un bénéfice par action de NT$1,11. Les faits marquants incluent :
- Les expéditions de wafers ont augmenté de 2,6% QoQ
- L'utilisation de l'usine s'est améliorée à 68%
- La contribution au chiffre d'affaires des technologiques 22/28nm a augmenté à 33%
- Perspectives Q3 : augmentation des expéditions de wafers en moyenne à un chiffre %, ASP resterait ferme
- Budget CAPEX pour 2024 fixé à 3,3 milliards de dollars
UMC a observé un élan de demande notable dans le segment des consommateurs et s'attend à une amélioration supplémentaire des dynamiques du marché final pour le Q3, en particulier dans les segments de communication et d'informatique.
United Microelectronics (UMC) hat seine Ergebnisse für das Q2 2024 veröffentlicht und zeigt eine verbesserte Leistung im Vergleich zum Q1. Der Umsatz stieg um 4,0% im Vergleich zum Vorquartal auf NT$56,80 Milliarden, wobei die Bruttomarge 35,2% erreichte. Der Nettogewinn stieg um 31,8% auf NT$13,79 Milliarden, was zu einem Gewinn pro Aktie von NT$1,11 führte. Wichtige Highlights sind:
- Die Waferlieferungen stiegen um 2,6% QoQ
- Die Auslastung der Fabrik verbesserte sich auf 68%
- Der Umsatzbeitrag aus 22/28nm stieg auf 33%
- Ausblick Q3: Erhöhung der Waferlieferungen im mittleren einstelligen Prozentbereich, ASP bleibt stabil
- Das CAPEX-Budget für 2024 beträgt 3,3 Milliarden USD
UMC verzeichnete eine bemerkenswerte Nachfragesteigerung im Verbrauchermarkt und erwartet weitere Verbesserungen in den Endmarktdynamiken für das Q3, insbesondere in den Bereichen Kommunikation und Datenverarbeitung.
- Revenue increased 4.0% QoQ to NT$56.80 billion
- Gross margin improved to 35.2% from 30.9% in Q1
- Net income rose 31.8% QoQ to NT$13.79 billion
- Wafer shipments increased 2.6% QoQ
- Fab utilization improved to 68% from 65% in Q1
- 22/28nm revenue contribution rose to 33% of wafer revenue
- Positive Q3 outlook with expected increase in wafer shipments
- Expected margin pressure in H2 due to increased depreciation expense and higher utility rates
- Overall capacity utilization still relatively low at 68%
- Year-over-year decline in operating income by 11.4%
Insights
UMC's Q2 2024 results show resilience in a challenging semiconductor market. The 4% QoQ revenue increase to NT$56.80 billion and 19.1% QoQ jump in operating income are positive indicators. Key highlights include:
- Gross margin improvement to
35.2% , beating previous guidance - Utilization rate increase to
68% , driven by consumer segment demand - Strong performance in 22/28nm node, contributing
33% of wafer revenue
The company's focus on specialty technologies for AI, 5G and automotive applications positions it well for future growth. However, potential headwinds include margin pressure from increased depreciation expenses and higher utility rates in H2 2024.
The
For Q3 2024, UMC expects further improvement in end-market dynamics, particularly in communication and computing segments. This outlook, combined with the company's diversified portfolio and focus on differentiated technologies, suggests a cautiously optimistic near-term outlook.
UMC's Q2 results reflect broader trends in the semiconductor industry. The
- Consumer segment showing notable demand momentum
- Healthy demand for WiFi and digital TV applications driving 22/28nm business
- Expected improvement in communication and computing segments in Q3
The company's focus on specialty technologies aligns with growing demand in AI, 5G and automotive sectors. The introduction of industry-first solutions like the 3D IC for RFSOI and 22nm embedded high voltage platform demonstrates UMC's commitment to innovation in high-growth areas.
Geographically, Asia-Pacific remains the dominant market at
The shift in revenue breakdown by application, with communication declining to
Overall, UMC's performance and outlook suggest a cautious but steady recovery in the semiconductor market, with specialty and advanced nodes driving growth.
UMC's Q2 results highlight its strategic positioning in the semiconductor industry. The company's focus on specialty technologies and advanced nodes is paying off, as evidenced by the strong performance of its 22/28nm business.
Key technological developments include:
- Introduction of the industry's first 3D IC solution for RFSOI, important for 5G innovations
- Launch of the most advanced 22nm embedded high voltage platform for next-gen smartphone displays
- Continued investment in capacity expansion, with the first tool move-in for Fab 12i's Phase 3 expansion in Singapore
The
UMC's ability to maintain a firm ASP despite market challenges indicates strong value proposition in its technology offerings. The expected increase in tape-outs for 22/28nm applications in H2 2024 suggests growing customer adoption of these advanced nodes.
While the company faces some near-term challenges, including increased depreciation expenses from capacity expansions, its technological advancements and strategic focus on high-growth sectors position it well for long-term competitiveness in the foundry market.
Gross margin reached
Earnings per share in 1H was
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 ; earnings per ADS:$1.11 US $0.17 1
Second quarter consolidated revenue was
Jason Wang, co-president of UMC, said, “In the second quarter, wafer shipments increased
Co-president Wang commented, “Looking to the third quarter, we expect to see end market dynamics improve further, particularly in the communication and computing segments, which will drive higher fab utilization. Our 22/28nm business remains a promising growth driver, with a number of tape-outs taking place in the second half for applications including display drivers, connectivity and networking. At the same time, we do expect to face some margin pressure going into the second half due to a pickup in depreciation expense related to capacity expansions as well as higher utility rates. Despite these cost challenges, we believe we will continue to demonstrate our resilience as we did during the recent market downturn, and deliver on our strategy of providing differentiated technology solutions and a diversified manufacturing footprint to help our customers to strengthen their supply chain management.”
Co-president Wang added, “In pursuit of our net-zero by 2050 goal, UMC continues to take concrete steps to drive emissions reduction in our operations and supply chain, and to increase our use of renewable energy. We are on track to achieving our progressive 2025 and 2030 targets. More details on our ESG progress will be made available to stakeholders in our upcoming Sustainability Report.”
Summary of Operating Results
Operating Results |
||||||||||
(Amount: NT$ 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 |
|
|
||
Second quarter operating revenues increased
Earnings per ordinary share for the quarter was
Detailed Financials Section
Operating revenues increased to
COGS & Expenses |
||||||||||
(Amount: NT$ million) |
2Q24 |
|
1Q24 |
|
QoQ %
|
2Q23 |
|
YoY %
|
||
Operating Revenues |
56,799 |
|
54,632 |
|
4.0 |
|
56,296 |
|
0.9 |
|
COGS |
(36,816 |
) |
(37,733 |
) |
(2.4 |
) |
(36,044 |
) |
2.1 |
|
Depreciation |
(9,460 |
) |
(9,335 |
) |
1.3 |
|
(8,467 |
) |
11.7 |
|
Other Mfg. Costs |
(27,356 |
) |
(28,398 |
) |
(3.7 |
) |
(27,577 |
) |
(0.8 |
) |
Gross Profit |
19,983 |
|
16,899 |
|
18.2 |
|
20,252 |
|
(1.3 |
) |
Gross Margin (%) |
35.2 |
% |
30.9 |
% |
|
36.0 |
% |
|
||
Operating Expenses |
(6,311 |
) |
(5,747 |
) |
9.8 |
|
(5,718 |
) |
10.4 |
|
Sales & Marketing |
(678 |
) |
(684 |
) |
(0.9 |
) |
(716 |
) |
(5.4 |
) |
G&A |
(1,804 |
) |
(1,702 |
) |
6.0 |
|
(1,715 |
) |
5.2 |
|
R&D |
(3,853 |
) |
(3,407 |
) |
13.1 |
|
(3,317 |
) |
16.1 |
|
Expected credit impairment gain |
24 |
|
46 |
|
(47.9 |
) |
30 |
|
(21.5 |
) |
Net Other Operating Income & 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 in 2Q24 was
Non-Operating Income and Expenses |
||||||
(Amount: NT$ million) |
2Q24 |
|
1Q24 |
|
2Q23 |
|
Non-Operating Income and Expenses |
2,529 |
|
1,056 |
|
2,810 |
|
Net Interest Income and Expenses |
701 |
|
676 |
|
974 |
|
Net Investment Gain and Loss |
1,440 |
|
(324 |
) |
1,042 |
|
Exchange Gain and Loss |
407 |
|
697 |
|
799 |
|
Other Gain and Loss |
(19 |
) |
7 |
|
(5 |
) |
In 2Q24, cash inflow from operating activities was
Cash Flow Summary |
||||
(Amount: NT$ million) |
For the 3-Month Period Ended Jun. 30, 2024 |
For the 3-Month Period Ended Mar. 31, 2024 |
||
Cash Flow from Operating Activities |
22,728 |
|
20,820 |
|
Net income before tax |
16,420 |
|
12,721 |
|
Depreciation & Amortization |
11,117 |
|
10,886 |
|
Share of profit of associates and joint ventures |
(1,267 |
) |
(101 |
) |
Income tax paid |
(5,831 |
) |
(253 |
) |
Changes in working capital & others |
2,289 |
|
(2,433 |
) |
Cash Flow from Investing Activities |
(15,131 |
) |
(29,915 |
) |
Decrease in financial assets measured at amortized cost |
3,219 |
|
739 |
|
Acquisition of PP&E |
(20,042 |
) |
(28,498 |
) |
Changes in refundable deposits |
1,507 |
|
(536 |
) |
Acquisition of intangible assets |
(578 |
) |
(846 |
) |
Others |
763 |
|
(774 |
) |
Cash Flow from Financing Activities |
(5,705 |
) |
(6,439 |
) |
Bank loans |
(2,503 |
) |
(3,888 |
) |
Redemption of bonds |
(3,000 |
) |
(2,100 |
) |
Decrease in deposits-in |
(33 |
) |
(282 |
) |
Others |
(169 |
) |
(169 |
) |
Effect of Exchange Rate |
341 |
|
2,411 |
|
Net Cash Flow |
2,233 |
|
(13,123 |
) |
Beginning balance |
119,431 |
|
132,554 |
|
Changes in non-current assets held for sale |
(430 |
) |
- |
|
Ending balance |
121,234 |
|
119,431 |
|
Cash and cash equivalents increased to
Current Assets |
|||||
(Amount: NT$ billion) |
2Q24 |
1Q24 |
2Q23 |
||
Cash and Cash Equivalents |
121.23 |
119.43 |
163.10 |
||
Accounts Receivable |
32.53 |
30.68 |
30.62 |
||
Days Sales Outstanding |
51 |
50 |
47 |
||
Inventories, net |
36.33 |
34.59 |
34.55 |
||
Days of Inventory |
88 |
85 |
85 |
||
Total Current Assets |
207.22 |
205.16 |
239.03 |
||
Current liabilities increased to
Liabilities |
|||||
(Amount: NT$ billion) |
2Q24 |
1Q24 |
2Q23 |
||
Total Current Liabilities |
124.97 |
88.40 |
142.98 |
||
Accounts Payable |
8.18 |
7.46 |
8.83 |
||
Short-Term Credit / Bonds |
16.21 |
25.60 |
11.59 |
||
Payables on Equipment |
22.36 |
13.97 |
13.01 |
||
Dividends Payable |
37.59 |
- |
45.02 |
||
Other |
40.63 |
41.37 |
64.53 |
||
Long-Term Credit / Bonds |
47.48 |
43.45 |
36.06 |
||
Total Liabilities |
230.87 |
188.85 |
226.31 |
||
Debt to Equity |
|
|
|
||
Analysis of Revenue2
Revenue from
Revenue Breakdown by Region |
|||||
Region |
2Q24 |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue contribution from 22/28nm was
Revenue Breakdown by Geometry |
|||||
Geometry |
2Q24 |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
14nm and below |
|
|
|
|
|
14nm<x<=28nm |
|
|
|
|
|
28nm<x<=40nm |
|
|
|
|
|
40nm<x<=65nm |
|
|
|
|
|
65nm<x<=90nm |
|
|
|
|
|
90nm<x<=0.13um |
|
|
|
|
|
0.13um<x<=0.18um |
|
|
|
|
|
0.18um<x<=0.35um |
|
|
|
|
|
0.5um and above |
|
|
|
|
|
Revenue from fabless customers accounted for
Revenue Breakdown by Customer Type |
|||||
Customer Type |
2Q24 |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
Fabless |
|
|
|
|
|
IDM |
|
|
|
|
|
Revenue from the communication segment declined to
Revenue Breakdown by Application (1) |
|||||
Application |
2Q24 |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
Computer |
|
|
|
|
|
Communication |
|
|
|
|
|
Consumer |
|
|
|
|
|
Others |
|
|
|
|
|
(1) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec, keyboard controller, monitor scaler, USB, I/O chipset, WLAN. Communication consists of handset components, broadband, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart cards, toys, etc. |
Blended ASP Trend
Blended average selling price (ASP) remained firm in 2Q24.
(To view blended ASP trend, please click here for 2Q24 ASP)
Shipment and Utilization Rate3
Wafer shipments increased
Wafer Shipments |
|||||
2Q24 |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
|
Wafer Shipments
|
831 |
810 |
775 |
795 |
814 |
|
|||||
Quarterly Capacity Utilization Rate |
|||||
|
2Q24 |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
Utilization Rate |
|
|
|
|
|
Total Capacity
|
1,257 |
1,212 |
1,204 |
1,182 |
1,167 |
Capacity4
Total capacity in the second quarter increased to 1,257K 12-inch equivalent wafers. Capacity will grow in the third quarter of 2024 to 1,274K 12-inch equivalent wafers.
Annual Capacity in thousands of wafers |
|
Quarterly Capacity in thousands of wafers |
|||||||||||
FAB |
Geometry
|
2023 |
2022 |
2021 |
2020 |
|
FAB |
3Q24E |
2Q24 |
1Q24 |
4Q23 |
||
WTK |
6" |
5 – 0.15 |
328 |
335 |
329 |
371 |
|
WTK |
6" |
83 |
83 |
82 |
83 |
8A |
8" |
3 – 0.11 |
811 |
765 |
755 |
802 |
|
8A |
8" |
207 |
207 |
206 |
207 |
8C |
8" |
0.35 – 0.11 |
473 |
459 |
459 |
452 |
|
8C |
8" |
119 |
119 |
119 |
119 |
8D |
8" |
0.18 – 0.09 |
440 |
410 |
380 |
371 |
|
8D |
8" |
118 |
118 |
118 |
118 |
8E |
8" |
0.6 – 0.14 |
490 |
469 |
457 |
449 |
|
8E |
8" |
131 |
131 |
130 |
131 |
8F |
8" |
0.18 – 0.11 |
570 |
550 |
514 |
485 |
|
8F |
8" |
145 |
145 |
144 |
145 |
8S |
8" |
0.18 – 0.11 |
447 |
443 |
408 |
373 |
|
8S |
8" |
114 |
114 |
113 |
114 |
8N |
8" |
0.5 – 0.11 |
996 |
952 |
917 |
917 |
|
8N |
8" |
254 |
254 |
252 |
254 |
12A |
12" |
0.13 – 0.014 |
1,305 |
1,170 |
1,070 |
1,044 |
|
12A |
12" |
403 |
386 |
358 |
346 |
12i |
12" |
0.13 – 0.040 |
655 |
655 |
641 |
628 |
|
12i |
12" |
172 |
172 |
164 |
164 |
12X |
12" |
0.080 – 0.022 |
317 |
314 |
284 |
217 |
|
12X |
12" |
80 |
80 |
79 |
80 |
12M |
12" |
0.13 – 0.040 |
438 |
436 |
395 |
391 |
|
12M |
12" |
115 |
115 |
110 |
110 |
Total(1) |
4,674 |
4,458 |
4,201 |
4,083 |
|
Total |
1,274 |
1,257 |
1,212 |
1,204 |
|||
YoY Growth Rate |
|
|
|
|
|
|
|
|
|
|
|||
(1) One 6-inch wafer is converted into 0.25 (62/122) 12-inch equivalent wafer; one 8-inch wafer is converted into 0.44 (82/122) 12-inch equivalent wafers. Total capacity figures are expressed in 12-inch equivalent wafers.
CAPEX
CAPEX spending in 2Q24 totaled
Capital Expenditure by Year - in US$ billion |
|||||
Year |
2023 |
2022 |
2021 |
2020 |
2019 |
CAPEX |
|
|
|
|
|
| 2024 CAPEX Plan | ||
8" |
12" |
Total |
|
|
|
Third Quarter 2024 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Wafer Shipments: Will increase by mid-single digit %
- ASP in USD: Will remain firm
-
Gross Profit Margin: Will be in the mid
-30% range -
Capacity Utilization: approximately
70% -
2024 CAPEX:
US $3.3 billion
Recent Developments / Announcements
Please visit UMC’s website for further details regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, July 31, 2024
Time: 5:00 PM (
Dial-in numbers and Access Codes: |
|
|
Taiwan Number: |
|
02 3396 1191 |
Taiwan Toll Free: |
|
0080 119 6666 |
US Toll Free: |
|
+1 866 212 5567 |
Other Areas: |
|
+886 2 3396 1191 |
|
|
|
Access Code: |
|
1433531# |
A live webcast and replay of the 2Q24 results announcement will be available at www.umc.com under the “Investors / Events” section.
About UMC
UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry company. The company provides high-quality IC fabrication services, focusing on logic and various specialty technologies to serve all major sectors of the electronics industry. UMC’s comprehensive IC processing technologies and manufacturing solutions include Logic/Mixed-Signal, embedded High-Voltage, embedded Non-Volatile-Memory, RFSOI, BCD etc. Most of UMC’s 12-in and 8-in fabs with its core R&D are in
Safe Harbor Statements
This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in
These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) dependence upon the frequent introduction of new services and technologies based on the latest developments in the industry in which UMC operates; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international business activities; (iv) dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including natural disasters, terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risk factors is included in UMC’s filings with the United States Securities and Exchange Commission, including its Annual Report on Form 20-F. All information provided in this release is as of the date of this release and are based on assumptions that UMC believes to be reasonable as of this date, and UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
The financial statements included in this release are prepared and published in accordance with Taiwan International Financial Reporting Standards, or TIFRSs, recognized by the Financial Supervisory Commission in the ROC, which is different from International Financial Reporting Standards, or IFRSs, issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from generally accepted accounting principles in the ROC and generally accepted accounting principles in
- FINANCIAL TABLES TO FOLLOW -
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||
| Consolidated Condensed Balance Sheet | |||||
| As of June 30, 2024 | |||||
| Figures in Millions of New Taiwan Dollars (NT$) and |
|||||
| June 30, 2024 | |||||
| US$ | NT$ | % | |||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | 3,738 |
121,234 |
|
||
| Accounts receivable, net | 1,003 |
32,525 |
|
||
| Inventories, net | 1,120 |
36,334 |
|
||
| Other current assets | 528 |
17,122 |
|
||
| Total current assets | 6,389 |
207,215 |
|
||
| Non-current assets | |||||
| Funds and investments | 2,418 |
78,404 |
|
||
| Property, plant and equipment | 8,450 |
274,031 |
|
||
| Right-of-use assets | 233 |
7,549 |
|
||
| Other non-current assets | 609 |
19,763 |
|
||
| Total non-current assets | 11,710 |
379,747 |
|
||
| Total assets | 18,099 |
586,962 |
|
||
| Liabilities | |||||
| Current liabilities | |||||
| Short-term loans | 96 |
3,119 |
|
||
| Payables | 1,861 |
60,362 |
|
||
| Dividends payable | 1,159 |
37,587 |
|
||
| Current portion of long-term liabilities | 404 |
13,091 |
|
||
| Other current liabilities | 334 |
10,814 |
|
||
| Total current liabilities | 3,854 |
124,973 |
|
||
| Non-current liabilities | |||||
| Bonds payable | 758 |
24,582 |
|
||
| Long-term loans | 706 |
22,901 |
|
||
| Lease liabilities, noncurrent | 163 |
5,288 |
|
||
| Other non-current liabilities | 1,638 |
53,126 |
|
||
| Total non-current liabilities | 3,265 |
105,897 |
|
||
| Total liabilities | 7,119 |
230,870 |
|
||
| Equity | |||||
| Equity attributable to the parent company | |||||
| Capital | 3,863 |
125,286 |
|
||
| Additional paid-in capital | 443 |
14,346 |
|
||
| Retained earnings and other components of equity | 6,665 |
216,147 |
|
||
| Total equity attributable to the parent company | 10,971 |
355,779 |
|
||
| Non-controlling interests | 9 |
313 |
|
||
| Total equity | 10,980 |
356,092 |
|
||
| Total liabilities and equity | 18,099 |
586,962 |
|
||
|
|||||
| Note: New Taiwan Dollars have been translated into |
|||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||||||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and |
|||||||||||||||||||||||||||||
| Except Per Share and Per ADS Data | |||||||||||||||||||||||||||||
| Year over Year Comparison | Quarter over Quarter Comparison | ||||||||||||||||||||||||||||
| Three-Month Period Ended | Three-Month Period Ended | ||||||||||||||||||||||||||||
| June 30, 2024 | June 30, 2023 | Chg. | June 30, 2024 | March 31, 2024 | Chg. | ||||||||||||||||||||||||
| US$ | NT$ | US$ | NT$ | % | US$ | NT$ | US$ | NT$ | % | ||||||||||||||||||||
| Operating revenues | 1,751 |
|
56,799 |
|
1,736 |
|
56,296 |
|
0.9 |
% |
1,751 |
|
56,799 |
|
1,685 |
|
54,632 |
|
4.0 |
% |
|||||||||
| Operating costs | (1,135 |
) |
(36,816 |
) |
(1,112 |
) |
(36,044 |
) |
2.1 |
% |
(1,135 |
) |
(36,816 |
) |
(1,164 |
) |
(37,733 |
) |
(2.4 |
%) |
|||||||||
| Gross profit | 616 |
|
19,983 |
|
624 |
|
20,252 |
|
(1.3 |
%) |
616 |
|
19,983 |
|
521 |
|
16,899 |
|
18.2 |
% |
|||||||||
35.2 |
% |
35.2 |
% |
36.0 |
% |
36.0 |
% |
35.2 |
% |
35.2 |
% |
30.9 |
% |
30.9 |
% |
||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||
| - Sales and marketing expenses | (21 |
) |
(678 |
) |
(22 |
) |
(716 |
) |
(5.4 |
%) |
(21 |
) |
(678 |
) |
(21 |
) |
(684 |
) |
(0.9 |
%) |
|||||||||
| - General and administrative expenses | (56 |
) |
(1,804 |
) |
(53 |
) |
(1,715 |
) |
5.2 |
% |
(56 |
) |
(1,804 |
) |
(52 |
) |
(1,702 |
) |
6.0 |
% |
|||||||||
| - Research and development expenses | (119 |
) |
(3,853 |
) |
(102 |
) |
(3,317 |
) |
16.1 |
% |
(119 |
) |
(3,853 |
) |
(105 |
) |
(3,407 |
) |
13.1 |
% |
|||||||||
| - Expected credit impairment gain | 1 |
|
24 |
|
1 |
|
30 |
|
(21.5 |
%) |
1 |
|
24 |
|
1 |
|
46 |
|
(47.9 |
%) |
|||||||||
| Subtotal | (195 |
) |
(6,311 |
) |
(176 |
) |
(5,718 |
) |
10.4 |
% |
(195 |
) |
(6,311 |
) |
(177 |
) |
(5,747 |
) |
9.8 |
% |
|||||||||
| Net other operating income and expenses | 7 |
|
219 |
|
35 |
|
1,141 |
|
(80.8 |
%) |
7 |
|
219 |
|
16 |
|
513 |
|
(57.3 |
%) |
|||||||||
| Operating income | 428 |
|
13,891 |
|
483 |
|
15,675 |
|
(11.4 |
%) |
428 |
|
13,891 |
|
360 |
|
11,665 |
|
19.1 |
% |
|||||||||
24.5 |
% |
24.5 |
% |
27.8 |
% |
27.8 |
% |
24.5 |
% |
24.5 |
% |
21.4 |
% |
21.4 |
% |
||||||||||||||
| Net non-operating income and expenses | 78 |
|
2,529 |
|
87 |
|
2,810 |
|
(10.0 |
%) |
78 |
|
2,529 |
|
32 |
|
1,056 |
|
139.4 |
% |
|||||||||
| Income from continuing operations before income tax | 506 |
|
16,420 |
|
570 |
|
18,485 |
|
(11.2 |
%) |
506 |
|
16,420 |
|
392 |
|
12,721 |
|
29.1 |
% |
|||||||||
28.9 |
% |
28.9 |
% |
32.8 |
% |
32.8 |
% |
28.9 |
% |
28.9 |
% |
23.3 |
% |
23.3 |
% |
||||||||||||||
| Income tax expense | (81 |
) |
(2,645 |
) |
(80 |
) |
(2,588 |
) |
2.2 |
% |
(81 |
) |
(2,645 |
) |
(70 |
) |
(2,291 |
) |
15.4 |
% |
|||||||||
| Net income | 425 |
|
13,775 |
|
490 |
|
15,897 |
|
(13.3 |
%) |
425 |
|
13,775 |
|
322 |
|
10,430 |
|
32.1 |
% |
|||||||||
24.3 |
% |
24.3 |
% |
28.2 |
% |
28.2 |
% |
24.3 |
% |
24.3 |
% |
19.1 |
% |
19.1 |
% |
||||||||||||||
| Other comprehensive income (loss) | 42 |
|
1,375 |
|
(7 |
) |
(238 |
) |
- |
|
42 |
|
1,375 |
|
245 |
|
7,954 |
|
(82.7 |
%) |
|||||||||
| Total comprehensive income (loss) | 467 |
|
15,150 |
|
483 |
|
15,659 |
|
(3.2 |
%) |
467 |
|
15,150 |
|
567 |
|
18,384 |
|
(17.6 |
%) |
|||||||||
| Net income attributable to: | |||||||||||||||||||||||||||||
| Shareholders of the parent | 425 |
|
13,786 |
|
482 |
|
15,641 |
|
(11.9 |
%) |
425 |
|
13,786 |
|
322 |
|
10,456 |
|
31.8 |
% |
|||||||||
| Non-controlling interests | (0 |
) |
(11 |
) |
8 |
|
256 |
|
- |
|
(0 |
) |
(11 |
) |
(0 |
) |
(26 |
) |
(58.8 |
%) |
|||||||||
| Comprehensive income (loss) attributable to: | |||||||||||||||||||||||||||||
| Shareholders of the parent | 467 |
|
15,161 |
|
475 |
|
15,403 |
|
(1.6 |
%) |
467 |
|
15,161 |
|
568 |
|
18,410 |
|
(17.6 |
%) |
|||||||||
| Non-controlling interests | (0 |
) |
(11 |
) |
8 |
|
256 |
|
- |
|
(0 |
) |
(11 |
) |
(1 |
) |
(26 |
) |
(58.8 |
%) |
|||||||||
| Earnings per share-basic | 0.034 |
|
1.11 |
|
0.039 |
|
1.27 |
|
0.034 |
|
1.11 |
|
0.026 |
|
0.84 |
|
|||||||||||||
| Earnings per ADS (2) | 0.171 |
|
5.55 |
|
0.196 |
|
6.35 |
|
0.171 |
|
5.55 |
|
0.130 |
|
4.20 |
|
|||||||||||||
| Weighted average number of shares | |||||||||||||||||||||||||||||
| outstanding (in millions) | 12,414 |
|
12,349 |
|
12,414 |
|
12,414 |
|
|||||||||||||||||||||
| Notes: | |||||||||||||||||||||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||||||||||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and |
|||||||||||||||||
| Except Per Share and Per ADS Data | |||||||||||||||||
| For the Three-Month Period Ended | For the Six-Month Period Ended | ||||||||||||||||
| June 30, 2024 | June 30, 2024 | ||||||||||||||||
| US$ | NT$ | % | US$ | NT$ | % | ||||||||||||
| Operating revenues | 1,751 |
|
56,799 |
|
100.0 |
% |
3,436 |
|
111,431 |
|
100.0 |
% |
|||||
| Operating costs | (1,135 |
) |
(36,816 |
) |
(64.8 |
%) |
(2,299 |
) |
(74,548 |
) |
(66.9 |
%) |
|||||
| Gross profit | 616 |
|
19,983 |
|
35.2 |
% |
1,137 |
|
36,883 |
|
33.1 |
% |
|||||
| Operating expenses | |||||||||||||||||
| - Sales and marketing expenses | (21 |
) |
(678 |
) |
(1.2 |
%) |
(42 |
) |
(1,362 |
) |
(1.2 |
%) |
|||||
| - General and administrative expenses | (56 |
) |
(1,804 |
) |
(3.1 |
%) |
(108 |
) |
(3,506 |
) |
(3.2 |
%) |
|||||
| - Research and development expenses | (119 |
) |
(3,853 |
) |
(6.8 |
%) |
(224 |
) |
(7,260 |
) |
(6.5 |
%) |
|||||
| - Expected credit impairment gain | 1 |
|
24 |
|
0.0 |
% |
2 |
|
69 |
|
0.1 |
% |
|||||
| Subtotal | (195 |
) |
(6,311 |
) |
(11.1 |
%) |
(372 |
) |
(12,059 |
) |
(10.8 |
%) |
|||||
| Net other operating income and expenses | 7 |
|
219 |
|
0.4 |
% |
23 |
|
732 |
|
0.6 |
% |
|||||
| Operating income | 428 |
|
13,891 |
|
24.5 |
% |
788 |
|
25,556 |
|
22.9 |
% |
|||||
| Net non-operating income and expenses | 78 |
|
2,529 |
|
4.4 |
% |
111 |
|
3,585 |
|
3.3 |
% |
|||||
| Income from continuing operations before income tax | 506 |
|
16,420 |
|
28.9 |
% |
899 |
|
29,141 |
|
26.2 |
% |
|||||
| Income tax expense | (81 |
) |
(2,645 |
) |
(4.6 |
%) |
(153 |
) |
(4,936 |
) |
(4.5 |
%) |
|||||
| Net income | 425 |
|
13,775 |
|
24.3 |
% |
746 |
|
24,205 |
|
21.7 |
% |
|||||
| Other comprehensive income (loss) | 42 |
|
1,375 |
|
2.4 |
% |
288 |
|
9,329 |
|
8.4 |
% |
|||||
| Total comprehensive income (loss) | 467 |
|
15,150 |
|
26.7 |
% |
1,034 |
|
33,534 |
|
30.1 |
% |
|||||
| Net income attributable to: | |||||||||||||||||
| Shareholders of the parent | 425 |
|
13,786 |
|
24.3 |
% |
748 |
|
24,242 |
|
21.8 |
% |
|||||
| Non-controlling interests | (0 |
) |
(11 |
) |
(0.0 |
%) |
(2 |
) |
(37 |
) |
(0.1 |
%) |
|||||
| Comprehensive income (loss) attributable to: | |||||||||||||||||
| Shareholders of the parent | 467 |
|
15,161 |
|
26.7 |
% |
1,035 |
|
33,571 |
|
30.1 |
% |
|||||
| Non-controlling interests | (0 |
) |
(11 |
) |
(0.0 |
%) |
(1 |
) |
(37 |
) |
(0.0 |
%) |
|||||
| Earnings per share-basic | 0.034 |
|
1.11 |
|
0.060 |
|
1.95 |
|
|||||||||
| Earnings per ADS (2) | 0.171 |
|
5.55 |
|
0.301 |
|
9.75 |
|
|||||||||
| Weighted average number of shares outstanding (in millions) | 12,414 |
|
12,414 |
|
|||||||||||||
| Notes: | |||||||||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||
| Consolidated Condensed Statement of Cash Flows | |||||
| For The Six-Month Period Ended June 30, 2024 | |||||
| Figures in Millions of New Taiwan Dollars (NT$) and |
|||||
| US$ | NT$ | ||||
| Cash flows from operating activities : | |||||
| Net income before tax | 899 |
|
29,141 |
|
|
| Depreciation & Amortization | 678 |
|
22,003 |
|
|
| Share of profit of associates and joint ventures | (42 |
) |
(1,368 |
) |
|
| Income tax paid | (188 |
) |
(6,084 |
) |
|
| Changes in working capital & others | (4 |
) |
(144 |
) |
|
| Net cash provided by operating activities | 1,343 |
|
43,548 |
|
|
| Cash flows from investing activities : | |||||
| Decrease in financial assets measured at amortized cost | 122 |
|
3,958 |
|
|
| Acquisition of property, plant and equipment | (1,497 |
) |
(48,540 |
) |
|
| Acquisition of intangible assets | (44 |
) |
(1,424 |
) |
|
| Others | 30 |
|
960 |
|
|
| Net cash used in investing activities | (1,389 |
) |
(45,046 |
) |
|
| Cash flows from financing activities : | |||||
| Decrease in short-term loans | (321 |
) |
(10,411 |
) |
|
| Redemption of bonds | (157 |
) |
(5,100 |
) |
|
| Proceeds from long-term loans | 358 |
|
11,600 |
|
|
| Repayments of long-term loans | (234 |
) |
(7,580 |
) |
|
| Others | (20 |
) |
(653 |
) |
|
| Net cash used in financing activities | (374 |
) |
(12,144 |
) |
|
| Effect of exchange rate changes on cash and cash equivalents | 85 |
|
2,752 |
|
|
| Net decrease in cash and cash equivalents | (335 |
) |
(10,890 |
) |
|
| Cash and cash equivalents at beginning of period | 4,087 |
|
132,554 |
|
|
| Cash and cash equivalents at end of period | 3,752 |
|
121,664 |
|
|
| Reconciliation of the balances of cash and cash equivalents at end of period : | |||||
| Cash and cash equivalents balances on the consolidated balance sheets | 3,738 |
|
121,234 |
|
|
| Cash and cash equivalents included in non-current assets held for sale | 14 |
|
430 |
|
|
| Cash and cash equivalents at end of period | 3,752 |
|
121,664 |
|
|
| Note: New Taiwan Dollars have been translated into |
|||||
1Unless 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 June 30, 2024, the three-month period ending March 31, 2024, and the equivalent three-month period that ended June 30, 2023. For all 2Q24 results, New Taiwan Dollar (NT$) amounts have been converted into
2 Revenue in this section represents wafer sales
3 Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
4 Estimated capacity numbers are based on calculated maximum output rather than designed capacity. The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp-up.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731242433/en/
Michael Lin / David Wong
UMC, Investor Relations
+ 886-2-2658-9168, ext. 16900
jinhong_lin@umc.com
david_wong@umc.com
Source: United Microelectronics Corporation
FAQ
What was UMC's revenue for Q2 2024?
How much did UMC's net income increase in Q2 2024?
What was UMC's earnings per share for Q2 2024?
What is UMC's capacity utilization rate for Q2 2024?
What is UMC's CAPEX budget for 2024?
