TAIPEI - United Microelectronics Corporation (NYSE:UMC), a leading global semiconductor foundry, today announced its financial results for the second quarter of 2024, surpassing analyst expectations. UMC shares were up 4.4% Wednesday following the announcement.
The company reported earnings per share (EPS) of $0.17, which is $0.03 higher than the analyst estimate of $0.14. Revenue for the quarter was reported at $1.75 billion, marginally exceeding the consensus estimate of $1.74 billion.
In the second quarter, UMC saw a revenue increase of 4.0% from the first quarter and a modest year-over-year (YoY) growth of 0.9%. The gross margin for the quarter stood at 35.2%, with the company's net income attributable to shareholders reaching $425 million.
Co-president Jason Wang attributed the strong quarter to a 2.6% quarter-over-quarter (QoQ) increase in wafer shipments and a rise in fab utilization rate to 68%. Wang highlighted the demand momentum in the consumer segment and the sequential growth in the 22/28nm business, driven by demand for WiFi and digital TV applications.
Looking ahead to the third quarter, UMC forecasts wafer shipments to increase by a mid-single-digit percentage and expects the gross profit margin to be in the mid-30% range, with capacity utilization at approximately 70%. The company plans a capital expenditure (CAPEX) of $3.3 billion for 2024.
Wang also commented on UMC's commitment to technology leadership and environmental goals, stating, "During the quarter, we announced technology updates including a 3D IC solution to stack RFSOI wafers, which is the first of its kind in the industry, and a 22nm embedded high voltage platform, currently the most advanced display driver foundry solution in the market. They reflect UMC's commitment to building on our leadership across a number of specialty technologies that are crucial for the development of AI, 5G, and automotive."
UMC continues to focus on its net-zero by 2050 goal, with ongoing efforts to reduce emissions and increase the use of renewable energy. The company is on track to meet its 2025 and 2030 targets, with more details to be provided in the upcoming Sustainability Report.
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