Wafer foundry UMC (2303-TW)(UMC-US) today (27) announced the first quarter financial report, the gross profit margin successfully broke through the 40% mark, reaching 43.4%, better than expected, and continued to write a 22-year high, after-tax net profit of 19.81 billion yuan, a quarterly increase of 24.2%, an annual increase 90%, with a net profit of 1.61 yuan per share, a new high.
UMC’s revenue in the first quarter was 63.42 billion yuan, a quarterly increase of 7.3%, an annual increase of 34.7%, a gross profit margin of 43.4%, a quarterly increase of 4.3 percentage points, an annual increase of 16.9 percentage points, and a profit rate of 35.2%. The net profit after tax was 19.81 billion yuan, a quarterly increase of 24.2% and an annual increase of 90%, and the net profit per share was 1.61 yuan.
UMC’s wafer shipments in the first quarter will be flat, ASP will increase by 5% in US dollars compared to the previous quarter, capacity utilization will remain at 100%, and gross profit margins will be estimated at 40%. The results are better than expected.
Wang Shi, co-general manager of UMC, said that the demand for semiconductors continued to be strong, and the production capacity of its fabs remained at full capacity. Although the shipment volume fell slightly, the average selling price was higher, which improved revenue performance.
Wang Shi believes that although the global demand for end products has fluctuated due to the new crown pneumonia epidemic, UMC’s business continues to grow due to the increase in silicon content in electronic devices and the structural trend of application of various new products.