UMC Q4 Earnings: Topline Rises 9.9% Driven By AI And Smartphones, Projects Sequentially Flat Q1 Shipments

Taiwan-based United Microelectronics Corp UMC reported a fourth-quarter revenue growth of 9.9% year-on-year to $1.84 billion (NT$60.39 billion).

The company missed the analyst consensus estimate of $1.87 billion. 

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• The revenue decreased by 0.2% quarter over quarter.
• Earnings per ADS of 10 cents missed the analyst consensus estimate of 15 cents.
• Revenue from 22 and 28nm was 34% of the wafer revenue (versus 36% a year ago), while the 40nm contribution grew to 16% of sales (versus 14% a year ago). 
• The gross margin declined by 200 basis points year over year. Capital expenditures totaled $602 million in the quarter.

Q1 Outlook: United Microelectronics co-President Jason Wang finds the semiconductor market poised for another year of growth, driven by strong demand for AI servers as well as increasing semiconductor content in smartphones, PCs, and other electronic devices. United Microelectronics continues investing in technological innovation and expanding its advanced packaging offering.

Wang’s 22/28nm portfolio remained the most significant contributor, with revenue increasing by 15% in 2024. Tape-outs for 22nm products are accelerating, and Wang expects to see higher revenue contributions from 2025 onwards.

Quarter-over-quarter, United Microelectronics expects first-quarter wafer shipments to remain flat and ASP in USD to decrease by mid-single-digit percentage. It also expects capacity utilization to be in the 70% range. United Microelectronics expects a cash-based 2025 capex of $1.8 billion.

United Microelectronics stock lost over 22% in the last twelve months. At least three Wall Street firms downgraded rating on the stock in October.

Price Action: UMC stock is up 0.96% at $6.34 premarket at the last check Tuesday.

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