UMC Reports Second Quarter 2020 Results

2Q20 operating income grows 71% QoQ to NT$5.85 billion with EPS of NT$0.55 Second Quarter 2020 Overview1:

  • Revenue: NT$44.39 billion (US$1.50 billion)
  • Gross margin: 23.1%; Operating margin: 13.2%
  • Revenue from 28nm: 13%
  • Capacity utilization rate: 98%
  • Net income attributable to stockholders of the parent: NT$6.68 billion (US$225 million)
  • Earnings per share: NT$0.55; earnings per ADS: US$0.093

TAIPEI, Taiwan — (BUSINESS WIRE) — July 29, 2020United 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 2020.

Second quarter consolidated revenue was NT$44.39 billion, up 5.0% QoQ from NT$42.27 billion in 1Q20 and up 23.2% YoY from NT$36.03 billion in 2Q19. Consolidated gross margin for 2Q20 was 23.1%. Net income attributable to the stockholders of the parent was NT$6.68 billion, with earnings per ordinary share of NT$0.55.

Jason Wang, co-president of UMC, said, “During the second quarter, consolidated operating margin reached 13.2%, while utilization rate increased to 98%, lifting wafer shipments to 2.22 million 8-inch equivalent wafers. The increase in wafer shipments mainly reflected computing segment demand for connectivity, display driver and flash controller as well as inventory replenishment in computing markets. As we continue to strive to supply world-class foundry services, our efforts have been appreciated by our customers. In Q2, Texas Instruments recognized UMC with the 2019 Supplier Excellence Award for demonstrating exemplary performance in the areas of cost, environmental & social responsibility, technology, responsiveness, assurance of supply and quality. In addition to serving customers to the best of our ability, UMC also increased 2019 cash dividend distribution to approximately NT$0.803 per share, reflecting the recent company buyback of treasury shares.”

Co-president Wang continued, “Looking into the third quarter, current market demand remains strong. We have experienced a surge in 28nm tape outs during the first half of 2020 compared to a year ago, and expect additional 28nm and 22nm product tape outs in the third quarter. We are also moving new 28nm products into volume production for wireless applications such as 4G and 5G smartphones, which will enhance our business traction and diversify UMC’s customer exposure across different 28nm market segments. Moreover, we have observed efforts to minimize supply chain disruptions amid uncertainty during the COVID-19 pandemic, while inventory replenishment is continuing across multiple market segments. With the efforts continuing to push customer adoption of UMC’s specialty technologies, our ROI-driven corporate strategy remains unchanged. As UMC secures new business, we will closely examine returns on invested capital to optimize the company’s capital deployment and further enhance our financial performance.”

Summary of Operating Results

Operating Results

(Amount: NT$ million)

2Q20

1Q20

QoQ %
change

2Q19

YoY %
change

Operating Revenues

44,386

42,268

5.0

36,031

23.2

Gross Profit

10,257

8,122

26.3

5,652

81.5

Operating Expenses

(5,677)

(5,722)

(0.8)

(5,578)

1.8

Net Other Operating Income and Expenses

1,266

1,014

24.9

1,687

(25.0)

Operating Income

5,846

3,414

71.2

1,761

232.0

Net Non-Operating Income and Expenses

818

(2,592)

-

(617)

-

Net Income Attributable to Stockholders of the Parent

6,681

2,207

202.7

1,740

283.8

EPS (NT$ per share)

0.55

0.19

 

0.15

 

(US$ per ADS)

0.093

0.032

 

0.025

 


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