UMC Announces 2022Q2 Financial Report
UMC announced its second quarter 2022 results. The financial report shows that the consolidated revenue was NT$72.06 ($2.43 billion) billion, an increase of 13.6% month-on-month and a year-on-year increase of 41.5%; the comprehensive gross profit margin reached 46.5%; the net profit was NT$21.33 billion ($718 million); earnings per common share was NT$1.74.
Jason Wang, general manager of UMC, said that the financial figures for the second quarter were in line with expectations. Wafer shipments increased by 4.3% quarter-on-quarter. The increase in the average selling price (ASP) and the interest rate factor drove the gross profit margin in the second quarter. Benefited from the start of mass production of UMC’s new production capacity and the demand for OLED display drivers, image processing, Wi-Fi, and automotive applications. Revenue from the 22/28nm product portfolio increased 29% quarter-on-quarter and accounted for approximately 22% of overall revenue. Driven by structural trends, 28nm will be a long-term and stable process node for existing and future products.
Judging from the financial report released by UMC, the production capacity is still at full capacity. UMC expects that its business will remain strong after entering the third quarter of 2022. Although the cooling of smartphones, personal computers, and consumer electronics products will cause some short-term fluctuations in demand, it will actively contact customers to make adjustments together.
Looking forward to the third quarter of 2022, UMC expects wafer shipments and average selling prices to be flat sequentially, with a gross profit margin of about 45%, a capacity utilization rate of 100%, and a capital expenditure of $3.6 billion in 2022.
