UMC Reports Second Quarter 2014 Results

28nm Moves to Mass Production with Increasing Momentum in 2H14

(PRNewswire) —

Second Quarter 2014 Overview[1]:

  • Revenue: NT$35.87 billion (US$1.20 billion)
  • Gross margin: 22.9%; operating margin: 8.1%
  • Foundry capacity utilization rate: 90%
  • Net income attributable to the stockholders of the parent: NT$3.48 billion (US$117 million)
  • Earnings per share: NT$0.28; earnings per ADS: US$0.047

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 2014.

Revenue was NT$35.87 billion, with gross margin at 22.9% and operating margin at 8.1%. Net income attributable to the stockholders of the parent was NT$3.48 billion, with earnings per ordinary share of NT$0.28.

Mr. Po-Wen Yen, CEO of UMC, said "In the second quarter of 2014, UMC recorded NT$32.57 billion in revenue from the foundry segment, with operating margin from foundry operations of 10.2%. Wafer shipments reached 1.426 million 8-inch equivalent wafers. Our 28nm business represented 1% of revenue, while 40nm accounted for 21%."

CEO Yen added, "Second quarter foundry revenue grew 13.4% sequentially, fueled by strong communication segment demand that lifted capacity utilization to 90%. Market conditions also reflected a turnaround, with rising demand for portable computing devices helping to drive our 28nm shipments. We project continued 28nm revenue contribution growth in 3Q14 as a result of the sustained demand for mobile and tablet computing. We are optimistic in the long term that our 28nm production ramp will strengthen our overall product mix and generate abundant opportunities for UMC to win additional foundry market share. For other technologies, we have strengthened the IP portfolio for our 55nm LP platform to address low power and wireless applications by offering Kilopass' Gusto and Cypress's SONOS embedded flash memories. These enhanced IP solutions will further diversify our manufacturing offerings to fulfill a broader range of specialty technology products on our proven and versatile 55LP platform. Designers in wearable and Internet of Things (IoT) applications have already realized product tape-outs using our 55LP technologies and IP."

CEO Yen continued, "We expect the semiconductor demand strength to continue into the third quarter of 2014. For 28nm momentum, our activities have increased, including IP verifications, customer tape outs on standalone products and product reliability qualifications. These 28nm customer collaborations will provide further traction heading into the second half of 2014. UMC will continue to broaden our customer base and penetrate additional high growth areas to expand customer adoption. We remain confident for the long term, as our sound business strategies, solid engineering execution and strong commitment to customer service will help ensure UMC's future business growth and deliver enhanced profitability to raise shareholder value."

[1] Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending Jun 30, 2014, the three-month period ending Mar 31, 2014, and the equivalent three-month period that ended Jun 30, 2013. For all 2Q14 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Jun 30, 2014 exchange rate of NT$ 29.86 per U.S. Dollar.

Summary of Operating Results


Operating Results

(Amount: NT$ million)



QoQ %


YoY %

Net Operating Revenues






Gross Profit






Operating Expenses






Net Other Operating Income and Expenses






Operating Income






Net Non-Operating Income and Expenses






Net Income Attributable to the Stockholders of the Parent






EPS   (NT$ per share)




         (US$ per ADS[2])




[2] One ADS represents five Taiwan-listed ordinary shares.

1 | 2 | 3 | 4 | 5 | 6 | 7 | 8  Next Page »

Review Article Be the first to review this article

Featured Video
Latest Blog Posts
Bob Smith, Executive DirectorBridging the Frontier
by Bob Smith, Executive Director
What’s on Tap from the ESD Alliance? Plenty! Read On …
Anupam BakshiAgnisys Automation Review
by Anupam Bakshi
Automating IP and SoC Development
Business Operations Planner for Global Foundaries at Santa Clara, California
Technical Product Manager- SISW-EDA 238452 for Siemens AG at Fremont, California
Test and Measurement System Architect for Xilinx at San Jose, California
Pre-silicon Design Verification Engineer for Intel at Santa Clara, California
Sr Engineer - RF/mmWave IC Design for Global Foundaries at Santa Clara, California
Circuit Design & Layout Simulation Engineer - Co-Op (Spring 2021) for Global Foundaries at Santa Clara, California
Upcoming Events
Virtual ASMC 2021 at United States - May 10 - 12, 2021
DVCon China 2021 at Shanghai China - May 26, 2021
CadenceLIVE Americas 2021 at United States - Jun 8 - 9, 2021
DesignCon 2021 at San Jose McEnery Convention Center San Jose, CA San Jose CA - Aug 16 - 18, 2021
True Circuits PHY

© 2021 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise