UMC profit up 45% on high demand

CAUTION: Customers are managing inventories more carefully amid a weakened global economic environment, which might contribute to lower visibility, the company said

Taipei Times
Date: Jul 25, 2019
By: Lisa Wang  /  Staff Reporter

Contract chipmaker United Microelectronics Co (UMC, 聯電) yesterday said its net profit last quarter rose 45 percent quarterly, due mainly to improving chip demand for mid-to-low-end smartphones.

The Hsinchu-based chipmaker expects the growth momentum to carry into this quarter, driven by inventory replenishment demand from “some selected customers in the communications segment.”

That would help wafer shipments grow 2 to 4 percent quarterly and help raise wafer prices by 1 percent in US dollar terms, UMC said.

However, gross margin would be little changed from 15.7 percent last quarter, as the factory utilization rate would remain at the higher end of 80 percent, the chipmaker said.    [FULL  STORY]

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