TAIPEI - United Microelectronics Corporation (NYSE: UMC), a global leader in semiconductor foundry services, reported first-quarter earnings per share (EPS) of $0.13, meeting the analyst consensus estimate.
Revenue for the quarter reached $1.71 billion, slightly surpassing the consensus estimate of $1.7 billion. Compared to the same period last year, revenue saw a marginal increase of 0.8% from $1.70 billion.
The company's stock experienced a modest increase of 1.32% following the announcement, indicating a measured positive response from investors to the in-line results. Jason Wang, co-president of UMC, attributed the steady performance to a 4.5% quarter-over-quarter (QoQ) increase in wafer shipments, particularly noting a pickup in the computer segment. Despite a slight decrease in the capacity utilization rate to 65%, the company maintained healthy margins through continuous cost control and operational efficiency efforts.
For the second quarter of 2024, UMC forecasts wafer shipments to rise by a low single-digit percentage, with the average selling price (ASP) in USD expected to remain stable. The gross profit margin is anticipated to be around 30%, with capacity utilization in the mid-60% range. The company has allocated a capital expenditure (CAPEX) budget of $3.3 billion for 2024.
UMC's commitment to sustainability was also highlighted, with Wang proudly mentioning the company's unique achievement of receiving a double 'A' rating in CDP's 2023 Climate Change and Water Security assessment for two consecutive years.
In the press release, Wang provided a quote reflecting on the quarter's results and the company's outlook: "In the first quarter, our wafer shipments increased 4.5% QoQ as we saw a pickup in the computer segment. Despite a slight drop in utilization rate to 65%, we were able to maintain relatively healthy margins due to continuous cost control and operational efficiency efforts."
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