United Microelectronics Faces Sales Growth: April Revenues Jump Almost 7%

Zinger Key Points
  • United Microelectronics records a 6.9% year-on-year sales increase in April, totaling NT$19.741 billion.
  • UMC plans a $3.3 billion CAPEX budget for 2024, aiming to invest in technology, capacity, and personnel for 5G and AI advancements.

On Tuesday, United Microelectronics Corporation UMC said its sales in April rose 6.9% Y/Y to NT$19.741 billion.

Revenues for the period Jan-Apr gained 2.34% to NT$74.373 billion. Total revenues in April gained 8.7% from March revenues.  

While reporting first-quarter results last month, the company said CAPEX spending in the quarter totaled $924 million. The 2024 cash-based CAPEX budget will be $3.3 billion.

Jason Wang, co-president of UMC, said earlier, “Looking ahead to the second quarter, we expect to see an increase in wafer shipments as the inventory situation in the computing, consumer, and communication segments improves to a healthier level.”

“While we still expect some lingering impact from macro uncertainties and cost headwinds in the near term, we will continue to invest in technology, capacity, and people to ensure UMC is ready to capture the next phase of growth driven by 5G and AI innovations,” Wang added.

According to Benzinga Pro, UMC stock has lost over 0.8% in the past year. 

Price Action: UMC shares closed lower by 0.37% to $8.12 on Monday.

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