UMC January revenue up 6.9 percent year-on-year

Propelled by the rising demand for mobile devices, the company's wafer production revenue reached NT$8.927 billion for January, up 14.5 percent from the previous month.

Starting February, the company will receive output contributions from the China-based HeJian Technology (Suzhou) Co. Ltd. (和艦科技), of which it holds a 52-percent stake.

Contributions from HeJian will represent a rise of 6 percent to total revenue for the first quarter, UMC predicted. However, the average selling price (ASP) is expected to decline by 6 percent due to HeJian's less-advanced product offerings.

With capacity utilization down by 75 percent, UMC expects its wafer production operations to approach break-even point.

For its solar power and light emitting diode (LED) businesses, the company is predicting revenue of NT$2 billion and losses of NT$1 billion for the first quarter, respectively.

UMC CEO Yen Po-wen (顏博文) indicated that the greatest challenge for the company this year is the optimization of its 28-nanometer fabrication. The company's main competitor, the leading Taiwan Semiconductor Manufacturing Company (TSMC, 台積電), currently commands over 90 percent of the world's 28 nanometer chip production.

Meanwhile, TSMC announced January revenue of NT$48.439 billion, up 27.7 percent month on month, representing the highest in three months.

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