Hejian factory continued to suspend production, UMC: customer products are produced across factories (photographed by reporter Hong Youfang)
[Reporter Hong Youfang / Hsinchu Report]Wafer foundry UMC (2303) Suzhou Hejian fab has continued to suspend production. UMC said that it still has to cooperate with the regulations of local authorities, and the timetable for resumption of work is still unclear. However, UMC has many customers Products are produced across factories with limited impact.
There are about 2,000 employees in UMC and Jianchang. It is reported that the semiconductor supply chain has stopped all lines of Hejian. Half of the employees who originally stayed in the factory have also been pulled to the hotel outside for isolation, and they can only resume work after waiting for the official notice. Chinese media recently reported that 17 employees of Taiwanese companies in Suzhou, including Hejian and Jinglong, were infected with the virus, of which 4 were Taiwanese.
UMC announced on the 14th (last Monday) that an employee of the 8-inch factory and ship in Suzhou, China is suspected to be infected with the virus. Currently, it is cooperating with the local competent authority to conduct all-staff testing. Production activities are gradually suspended. , the first-quarter earnings outlook remains unchanged.
UMC pointed out that the monthly production capacity of Hejian is 80,000 pieces, and the output value accounts for about 5% of the overall consolidated revenue, but it emphasizes that it will not affect the first quarter performance outlook, and its market share in the global foundry industry will continue to expand. There is no significant impact on financial operations. UMC estimates that wafer shipments will remain flat in the first quarter, ASP will grow by 5% quarter-on-quarter in US dollars, capacity utilization will remain at 100%, and gross profit margins will be estimated at 40%.
Hejian mainly produces panel driver ICs, MCUs, power management ICs, etc. Among them, there are many Taiwanese customers. UMC said that the local competent authority has standard operating procedures for epidemic prevention regulations, and it is still necessary to cooperate with the regulations of the local competent authority, and the timetable for resumption of work is still unclear. The client pointed out that the degree of impact depends on the time when the ship resumes work.
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