United Microelectronics Faces Sales Drop: February Revenues Dip Over 3%

On Wednesday, United Microelectronics Corporation UMC said its sales in February fell 3.07% Y/Y to NT$17.45 billion.

Revenues for the period Jan-Feb fell 0.15% to NT$36.464 billion. Total revenues in February slumped 8.2% from January revenues.  

Quarter-over-quarter, UMC expects first-quarter wafer shipments to increase by approximately 2%-3% and ASP in USD to decrease by 5%. 

UMC expects a 2024 capex of $3.3 billion. It expects capacity utilization in the low 60% range.

While reporting fourth-quarter results on January 31, Jason Wang, co-president of UMC, said, “Looking into the first quarter of 2024, we anticipate overall wafer demand will increase mildly, however, customers maintain a cautious approach in their inventory management.”

Last year, the company initiated the W2W (wafer-to-wafer) 3D IC project in collaboration with partners to help customers accelerate the production of their 3D products.

Price Action: UMC shares closed lower by 1.29% to $7.64 on Tuesday.