Foundry chipmaker United Microelectronics (UMC) saw its first-quarter results come in line with its guidance, and has given its positive outlook for the second quarter.

UMC has announced consolidated revenues of NT$27.78 billion (US$931 million) for the first quarter of 2013, down 3.7% sequentially but up 5.8% on year. The foundry shipped a total of 1.125 million 8-inch equivalent wafers in the first quarter, up 5.2% on quarter, while ASPs were dragged down slightly by a ramp-up in its overall 8-inch wafers output.

UMC previously remarked that Hejian Technology, now UMC's China-based production subsidiary, would make a positive contribution to its overall wafer shipments, but rising output from the 8-inch segment would negatively affect its ASP performance in the first quarter.

UMC utilized 78% of its overall capacity in the first quarter, slightly higher than the 75% estimated previously. Gross profits for the quarter grew 39.3% sequentially to NT$4.49 billion, or 16.2% of revenues, while operating margins turned positive at NT$294 million, or 1.1% of revenues.

UMC posted consolidated operating loss of NT$850 million for the fourth quarter. But in its fourth-quarter 2012 financial report, it spelt out optimism that its operation would reach a break-even level in the first quarter.

UMC collected first-quarter net profits of NT$6.59 billion, up substantially compared with the NT$739 million posted in the prior quarter. EPS for the first quarter came to NT$0.52.

Looking forward, UMC forecast that it will report a 12-14% sequential rise in wafer shipments for the second quarter of 2013, with flat growth in ASPs. UMC expects to utilize more than 80% of its overall capacity in the second quarter, which will help the company further improve its operating profits.

In addition, UMC pointed out that sales generated from 40nm and below process technologies as a proportion of company revenues climbed to 18% in the first quarter, compared to 9% during the same period of 2012. The proportion is set to climb further in the second quarter, the foundry said.

"Following several months of inventory correction in the semiconductor market, demand has stabilized," said UMC CEO Po-Wen Yen in a statement. With increasing demand led by the communication sector, UMC expects second-quarter foundry operating results to improve, with wafer shipments projected to exceed 10% growth, Yen added.

By: DocMemory
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