United Microelectronics (UMC) report its third-quarter 2011 operation fall short of its forecast made in early August, and suffer an operating loss in the fourth quarter.

The company's utilization has fallen substantially, and its 12-inch capacity is running at only about 60%, the analysts said.

In response, UMC indicated that its operation has so far progressed as forecast and actual results for the third quarter should be consistent with the guidance given previously. But the company said at present it is unable to comment on its fourth-quarter business performance.

UMC said that if its average utilization rate dropped below 70%, the core business would likely suffer losses. Sluggish end-market demand and inventory problems still remain, the company said.

UMC at its most recent investors meeting estimated revenues would decrease 11-13% sequentially in the third quarter with a low-70% utilization rate.

UMC shares edged down NT$0.55 to close at NT$11.05 on the Taiwan Stock Exchange on September 5.

By: DocMemory
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