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UMC Closes Q4

TAIPEI — United Microelectronics Corporation (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its unconsolidated operating results for the fourth quarter of 2010.

Overview of Fourth Quarter 2010(1): Revenue: NT$31.32 billion (US$1.08 billion) with 4.1% QoQ decrease Gross margin: 32.1%; Operating margin: 21.1% Capacity utilization: 94% Net income: NT$6.42 billion (US$220.77 million) Earnings per share: NT$0.52; earnings per ADS: US$0.089 (1) Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with ROC GAAP, which differ in some material respects from generally accepted accounting principles in the United States. They are un-audited, unconsolidated, and represent comparisons among the three-month period ending December 31, 2010, the three-month period ending September 30, 2010, and the equivalent three-month period that ended December 31, 2009. For all 4Q10 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the December 31, 2010 exchange rate of NT$29.08 per U.S. Dollar.

Revenue from 4Q10 was NT$31.32 billion, a 4.1% quarter-over-quarter decrease from NT$32.65 billion in 3Q10, and a 12.9% year-over-year increase from NT$27.75 billion in 4Q09. Gross margin was 32.1%, with 21.1% operating margin, NT$6.42 billion net income, and NT$0.52 earnings per ordinary share. In 2010, revenue for the full year was NT$120.43 billion, with NT$23.90 billion net income, and NT$1.91 earnings per share.

Dr. Shih-Wei Sun, CEO of UMC, said, “UMC is dedicated to the customer-driven development of advanced technologies and foundry manufacturing solutions. This commitment has led to considerable success in our efforts to broaden our customer base, optimize product mix, and boost profit capability. 2010 wafer shipments reached a record high of approximately 4.52 million 8-inch equivalent wafers, with revenue hitting another record high of NT$120.43 billion. Full-year operating profit, EPS, and an ROE of 11% also reached their highest levels in recent years. 2010 capital expenditures were US$1.8 billion. With the expansion of high-end capacities, 65nm and below revenue contribution for 4Q alone reached 35%, with 40nm products increasing to 5% of total revenue. Revenue contribution from 65nm and below products for the full year grew an impressive 170% as well.”

Dr. Sun continued, “After experiencing growth momentum for over a year and a half at UMC, we anticipate revenue for the first quarter of 2011 to decline slightly due to appreciation of NT dollar, certain customers undergoing product and technology-node transitions, and other seasonal adjustments. UMC is optimistic about demand for high-end chips this year, with revenue contribution from 40nm growing quarterly in 2011 to become a main revenue driver. We will also begin 28nm customer-product pilot around the middle of this year. To satisfy customers' technology and capacity requirements while ensuring both stable growth and long-term ROE, we plan to invest about the same amount of CAPEX as last year. Looking ahead in 2011, UMC will build upon its solid foundation and continue advancing its technologies and service quality to provide its global customers the most appropriate foundry solutions.”

{complink 5826|United Microelectronics Corp. (UMC)}

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