Taiwan's UMC Q3 revenue rises on wafer shipments growth

Overview

• Taiwan semiconductor foundry's Q3 revenue rose 26% yr/yr, driven by record wafer shipments

• Q3 net income attributable to shareholders rose 10% yr/yr

• Company approved US$3.2 bln capital expenditure budget to accelerate expansion

Outlook

• UMC expects positive demand momentum to sustain in Q4, supporting stable shipments and utilization rate

• Company anticipates sequential growth in specialty technologies revenue, driven by advanced packaging and silicon photonics

• UMC is converting some existing capacity to address near-term unfulfilled demand in new business areas

Result Drivers

• HEALTHY DEMAND - Co said demand was strong across all market segments, driving record wafer shipments and high fab utilization

• 22NM SALES RECORD - Co said 22nm technology revenue reached a record high, accounting for 18.3% of wafer sales, driven by new customer product tape-outs

• ADVANCED PACKAGING & PHOTONICS - Co said active customer engagement in advanced packaging and silicon photonics contributed to growth and is expected to drive future revenue

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "sell" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy."

• Wall Street's median 12-month price target for United Microelectronics Corp is $13.60, about 30.1% below its October 27 closing price of $19.45

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 40 three months ago

Reuters Recommended Reads

• Oct 27 - Netherlands' ASM International Q3 revenue jumps on strong growth in memory sales

• Oct 27 - Netherlands' NXP Semiconductors Q3 revenue rises 19%, slightly beats estimates

• Oct 26 - Amkor Technology Q3 sales slightly miss estimates on weak Communications

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)