Company posts 15.7% gross margin and NT$0.15 EPS
TAIPEI, Taiwan-- July 24, 2019 --United Microelectronics Corporation (NYSE:UMC; TWSE:2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the second quarter of 2019.
Second quarter consolidated revenue was NT$36.03 billion, up 10.6% QoQ from NT$32.58 billion in 1Q19 and down 7.3% YoY from NT$38.85 billion in 2Q18. Consolidated gross margin for 2Q19 was 15.7%. Net income attributable to stockholders of the parent was NT$1.74 billion, with earnings per ordinary share of NT$0.15.
Jason Wang, co-president of UMC, said, “In the second quarter, foundry revenue grew 10.6% QoQ to NT$36.00 billion, leading to a foundry operating margin of 5.3%. Utilization rate increased to 88%, bringing wafer shipments to 1.73 million 8-inch equivalent wafers. 2Q19 results reflected higher contribution from 12" technology nodes, which experienced strength from the wireless communication segment including chips found in entry level to mid-end smartphones, switches and routers. During the quarter, we generated a free cash flow of NT$8.17 billion. We remain committed to strengthening our financial metrics, and on June 19, 2019, UMC’s Board of Directors approved the cancellation of 400 million ordinary treasury shares, which will reduce UMC’s ordinary shares by 3.3%.”
Co-president Wang further commented, “Despite US-China trade tensions creating market uncertainty, we anticipate that specific areas within the wireless communication sector will have a short term upward adjustment in the supply chain, which should lead to a slight increase in wafer demand. However, we have observed that customers are continuing to manage their inventory carefully amid a weakened global economic environment, which may contribute to lower visibility in business forecast during the second half of 2019. In the meantime, we continue to actively implement measures intended to enhance our foundry competitiveness, such as focusing resources to capitalize on our existing strength in mainstream logic and specialty processes while offering more diversified technology platforms to customers.”