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UMC reports NT$12.4 bil. in sales for June, sets monthly high

TAIPEI, Taiwan -- United Microelectronics Corp. (UMC,聯華電子) on Wednesday posted NT$12.42 billion in sales for June, the second month in a row for the company to hit a monthly high.

Vaulted by thin-film transistor liquid crystal display (TFT LCD) driver integrated circuits (ICs), power management ICs, as well as Wi-Fi-related chips, UMC yesterday registered NT$12.42 billion in sales for June, a sequential increase of 4.03 percent and 15.33 percent from the same month of 2013.

UMC said its sales for the June quarter hit a record-setting NT$35.87 billion, increasing by 13.17 percent from the previous quarter. UMC's cumulative revenues for the year to May grew 13.2 percent year on year to NT$67.57 billion.

Industry executives estimate the company to see second-quarter revenue rise 12-14 percent from the previous quarter and attain the gross margin goal of 25 percent. Based on the gross margin goal, industry executives put the company's second-quarter earnings at NT$3.7-NT$4 billion (US$123-NT$133 million), more than double that in the first quarter.

UMC board of directors recently approved NT$25.6 billion (US$854.9 million) in supplementary budget to boost the company's 28nm process capacity and construct clean rooms at its 300mm Fab 12 A Phase 5 factory in Southern Taiwan.

TSMC's June Sales Continues to Drop

The United Evening News yesterday cited analysts to report that June sales for Taiwan Semiconductor Manufacturing Co. (TSMC,台灣積體電路) are expected to fall continuously. TSMC is slated to report sales for June and the second-quarter on Thursday.

TSMC announced consolidated revenue of NT$60.79 billion in May, decreasing 1.8 percent from a month earlier to surprise the market and cap the uptrend in recent months despite being the second highest in its history

It is understood that UMC is around three years behind No. 1 player TSMC in 28nm process technology competition, in which TSMC depended on the process for 34 percent of its revenue in the first quarter. Currently, TSMC has eight customers of 28nm process foundry service whereas UMC has only one. In the second half, UMC will add Qualcomm and Broadcom to its 28nm foundry customers.

To narrow its technological gap with TSMC, UMC will directly cut into 14nm process development in the second half of this year and begin pilot production on this process in 2015.

A ranking UMC officer earlier said that the company's 14nm process project will take advantage of the company's partnership with IBM in 2012 on 10nm process development.

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