Source: Global Semiconductor Watch Collation

Recently, foundry foundry UMC held a legal meeting and announced its financial results for the first quarter of 2024, with consolidated revenue of NT $54.63 billion, down 0.6% from NT $54.96 billion in the fourth quarter of 2023 and up 0.8% from NT $54.21 billion in the first quarter of 2023. First-quarter gross margin reached 30.9 percent, and net income attributable to the parent company was NT $10.46 billion.

Wang Shi, general manager of UMC, said first-quarter wafer shipments rose 4.5 percent from the fourth quarter of 2023 due to a rebound in demand in the computer sector. Despite a slight decline in capacity utilization to 65%, cost control and operational efficiency improvements, the company maintained relatively healthy earnings. Driven by demand for power management chips, RFSOI chips, and artificial intelligence AI server silicon intermediaries, special processes contributed 57% of total revenue. In the first quarter of 2024, UMC's R&D team made progress on key projects, including customized solutions for embedded high-voltage, embedded non-volatile memory, RFSOI and 3D ics, providing new technology platforms for high-growth markets such as 5G, AIoT and automotive.

Looking ahead to the second quarter of 2024, UMC expects overall wafer shipments to rise slightly as inventories in the computer, consumer and communications sectors gradually return to healthier levels, Wang stressed. In the automotive and industrial sectors, demand remained subdued due to slower-than-expected inventory digestion. Although the general economic environment will continue to be affected by uncertainty and cost pressures in the short term, UMC will continue to invest in technology, capacity and talent to ensure that we are well prepared for the next phase of growth driven by 5G and AI innovation.