UMC Reports Fourth Quarter 2014 Results

Full-year 2014 foundry revenue up 10%, operating profit increased 74% YoY

(PRNewswire) —

Fourth Quarter 2014 Overview[1]:

  • Revenue: NT$37.24 billion (US$1.18 billion)
  • Gross margin: 27.4%; operating margin: 12.2%
  • Foundry revenue from advanced nodes: 7% from 28nm, 21% from 40nm
  • Foundry capacity utilization rate: 93%
  • Net income attributable to the stockholders of the parent: NT$4.56 billion (US$144 million)
  • Earnings per share: NT$0.36; earnings per ADS: US$0.057

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the fourth quarter of 2014.

Fourth quarter consolidated revenue was NT$37.24 billion, a 5.7% quarterly increase from NT$35.21 billion in 3Q14 and a 21.2% annual increase from NT$30.72 billion in 4Q13. 4Q14 consolidated gross margin was 27.4%, with operating margin at 12.2%. Net income attributable to the stockholders of the parent was NT$4.56 billion, with earnings per ordinary share of NT$0.36. For 2014, full year revenue was NT$140.01 billion, with NT$10.08 billion in operating income, NT$12.14 billion net income attributable to the stockholders of the parent and NT$0.97 earnings per share.

Mr. Po-Wen Yen, CEO of UMC, said, "In the fourth quarter, foundry revenue grew 3.7% sequentially to NT$34.74 billion. This figure includes a one-time 40nm licensing fee from Fujitsu, lifting gross and operating margins to 30.2% and 14.6%, respectively. Overall capacity utilization rate remained at 93%, bringing shipments to 1.43 million 8-inch equivalent wafers. Our 28nm technologies represented 7% of our foundry revenue in 4Q14. Shipments from our 28nm gate-last, High-K Metal Gate process exceeded that of 28nm poly-SiON wafers. Excluding the Fujitsu 40nm licensing fee, UMC's 2014 foundry operating profit grew 74% from the previous year. This rise in profitability was mainly driven by double-digit percentage growth in wafer shipments and partly due to the rapid production ramp of 28nm, which accounted for 3% of total 2014 revenue. Our collaborative technology efforts with our partners will enable UMC to deliver additional manufacturing solutions to fulfill new product specs, strengthening our position in the IC supply chain to take advantage of the continued momentum in market demand."

CEO Yen continued, "The Taiwan government authorities recently approved UMC's application to invest in a 12" joint venture fab in Xiamen, China. This investment will create opportunities for UMC to benefit from China's enormous chip requirements by bringing us closer to the Chinese semiconductor supply chain. The cooperation highlights UMC's differentiated approach of global expansion, proven through Singapore's Fab12i and SuZhou's Fab8N successfully achieving economy of scale while mitigating customer risks via geographic diversification. While we expand production sites worldwide, we are also focusing on continuous organic growth by deploying additional capacity at our Tainan site. As such, we will budget 2015 CAPEX for approximately US$1.8 billion. Our 2015 CAPEX illustrates our strong commitment to meet customers' requirements and gain additional market share through efficient execution and strategic alliances. UMC's global expansion efforts, driven by manufacturing excellence, will strengthen customer services with increased operating scale to enhance corporate financial earnings and deliver long-term returns to our shareholders."

Summary of Operating Results

Operating Results

(Amount: NT$ million)

  4Q14

  3Q14

QoQ %
change

 4Q13

YoY %
change

Net Operating Revenues

37,235

35,214

5.7

30,719

21.2

Gross Profit

10,186

7,559

34.8

5,557

83.3

Operating Expenses

(5,672)

(5,270)

7.6

(5,317)

6.7

Net Other Operating Income and Expenses

18

(602)

-

(46)

-

Operating Income

4,532

1,687

168.6

194

2,236.1

Net Non-Operating Income and Expenses

843

1,305

(35.4)

889

(5.2)

Net Income Attributable to the Stockholders of the Parent

4,563

2,916

56.5

749

509.2

EPS   (NT$ per share)

0.36

0.23


0.06


         (US$ per ADS)

0.057

0.036


0.009



1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12  Next Page »



Review Article Be the first to review this article
Featured Video
Editorial
More Editorial  
Latest Blog Posts
Bob Smith, Executive DirectorBridging the Frontier
by Bob Smith, Executive Director
Trends in the Semiconductor Design Ecosystem
Vincent ThibautArteris IP Blog
by Vincent Thibaut
Arteris IP Extends IP-XACT to UVM Testbenches
Anupam BakshiAgnisys Automation Review
by Anupam Bakshi
Specification Automation for Designers
Jobs
Staff SerDes Applications Design Engineer for Xilinx at San Jose, California
Technical Product Manager- SISW-EDA 238452 for Siemens AG at Fremont, California
SerDes Applications Design Engineer for Xilinx at San Jose, California
Senior HID Sensor Algorithm Architect for Apple Inc at Cupertino, California
Logic Design Engineer for Intel at Santa Clara, California
CSM Design Verification Lead for Apple Inc at Cupertino, California
Upcoming Events
DesignCon 2021 at San Jose McEnery Convention Center San Jose, CA San Jose CA - Aug 16 - 18, 2021
SEMICON Southeast Asia 2021 Hybrid Event at Setia SPICE Convention Centre Penang Malaysia - Aug 23 - 27, 2021
SEMI Europe Summit at Online, Central European Time Germany Germany - Sep 1 - 3, 2021
7th International Conference on Sensors & Electronic Instrumentation Advances (SEIA' 2021) at Palma de Mallorca, Mallorca balearic islands) Spain - Sep 14 - 16, 2021



© 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