United Microelectronics (UMC) has reported its highest quarterly net profit in two years, swinging to a profit of NT$6.09 billion (US$190 million) in the third quarter of 2009 from a loss of NT$1.41 billion in third-quarter 2008. The figure was the company's highest since the third quarter of 2007.

UMC posted revenues of NT$27.41 billion in the third quarter, the highest since the fourth quarter of 2007. Thanks to higher wafer shipments and improved blended ASPs, the foundry chipmaker saw revenue growth of 21.1% on quarter and 10.7% on year.

"The positive momentum we experienced in the second quarter carried over into the third quarter," said UMC CEO Shih-Wei Sun. "Shipments surpassed one million wafers, the second-highest number in UMC's history."

UMC saw its utilization rate climb to 89% in the third quarter, compared to 79% in the prior quarter and a year ago. It shipped 1.017 million 8-inch equivalent wafers in the quarter, compared to 898,000 units in the second quarter and 883,000 in third-quarter 2008.

Revenues from 65nm and below technologies grew by more than 40% sequentially in the third quarter, according to UMC. These advanced processes accounted for 14% of UMC's total revenues in the quarter, compared to 12% in the second quarter and 7% in third-quarter 2008. The company attributed the sales growth to stronger demand for communication and computing chips.

UMC said it is expanding 65/55nm capacity and also gearing up to ramp 45/40nm production at its 300mm (12-inch) wafer fab in Singapore, Fab 12i.

"UMC is optimistic about the fourth quarter, and expects ASP to rise as our product mix continues to improve," said Sun. "However, factors such as seasonal adjustments and appreciation of the NT dollar may slightly impact our revenues in the fourth quarter."

UMC estimated wafer shipments may slide 0-3% on quarter in the fourth quarter, but ASPs are likely to rise by 0-3%. Fourth-quarter utilization rate is expected to be mid-80%, as demand from the computer sector will show some weakness.

UMC has maintained its capex estimate for 2009 at US$500 million.

By: DocMemory
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