United Microelectronics Clocks 42% Revenue Growth In Q2; Margin Expands

United Microelectronics Corp UMC reported second-quarter FY22 revenue growth of 41.5% year-on-year to $2.425 billion, beating the consensus of $2.390 billion.
Revenue contribution from 40nm and below technologies represented 40% of wafer revenue.
Wafer shipments grew 4.3% Q/Q to 2,622K, while quarterly capacity increased to 2,528K 8-inch equivalent wafers. The overall utilization rate exceeded 100%.
Capacity will grow in Q3 to 2,539K 8-inch equivalent wafers, driven by the capacity expansion at 12X and 8N.
Margin: The gross margin expanded 1,520 basis points to 46.5%.
Earnings per ADS of $0.293 missed the consensus of $0.300.
The company generated $2.2 billion in operating cash flow and held $6.18 billion in cash and equivalents.
Q3 Outlook: UMC expects flat quarter-over-quarter wafer shipments and gross profit margin to be in the mid-40% range.
Price Action: UMC shares traded higher by 4.01% at $6.75 in the premarket on the last check Wednesday.

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