Q2 2024 United Microelectronics Corp Earnings Call Transcript
Key Points
- UMC's second quarter revenue grew by 4% quarter-over-quarter to TWD56.8 billion.
- Wafer shipments increased by 2.5% quarter-over-quarter, reaching 831,000 12-inch wafer equivalents.
- Gross margin improved to 35.2%, better than previous guidance.
- UMC announced technology updates, including a 3D IC solution and a 22-nanometer embedded high voltage platform.
- UMC's 22/28 nanometer business showed healthy demand, particularly for Wi-Fi and digital TV applications.
- Utilization rate in the second quarter was only 68%, which is lower compared to historical levels of 85-90%.
- IDM revenue declined notably from 18% in the previous quarter to 13% in Q2 2024.
- Communication segment revenue declined from 48% in the previous quarter to 39% in Q2 2024.
- UMC expects margin pressure in the second half due to increased depreciation expenses and higher utility rates.
- Despite a mild recovery in Q3, UMC has not seen signs of a strong rebound as customers remain prudent on inventory management.
Welcome everyone to UMC's 2024 second quarter earnings conference call. (Operator Instructions) For your information, this conference call is now being broadcasted live over the Internet. Webcast replay will be available within two hours after the conference is finished. Please visit our website www.umc.com under the Investor Relations, Investors Events section.
And now, I would like to introduce Mr. Michael Lin, Head of Investor Relations at UMC. Mr. Lin, please begin.
Thank you. And welcome to UMC's conference call for the second quarter of 2024. I'm joined by Mr. Jason Wang, President of UMC; and Mr. Chi-Tung Liu, the CFO of UMC. In a moment, you will hear our CFO present the second quarter financial results, followed by our President's key message to address UMC's focus and third-quarter 2024 guidance. Once our President and CFO complete their remarks, there will be a Q&A session. UMC's quarterly financial reports
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