Global Unichip (3443) Q4 2023 earnings summary

Executive summary

• FY23 revenue reached a record NT$26,240.7M (+9% YoY); net income was NT$3,507.9M (-5%) and EPS was NT$26.18 (-5%).

• 4Q23 revenue was NT$6,315M (-22% YoY, -7% QoQ); net income was NT$712M (-47% YoY, -30% QoQ).

Financial highlights

• FY23 revenue mix: NRE NT$6,763M (+3% YoY), Turnkey NT$18,981M (+12%), Others NT$497M (-20%); NRE and Turnkey reached record highs.

• 4Q23 revenue mix: NRE NT$1,694M (-31% YoY, -27% QoQ), Turnkey NT$4,414M (-17% YoY, -1% QoQ), Others NT$207M (-34% YoY).

• FY23 gross profit was NT$7,975.7M, operating income NT$3,968.8M, and net income NT$3,507.9M, versus NT$8,335.0M, NT$4,098.9M, and NT$3,710.4M in FY22.

• 4Q23 operating income was NT$827M, down 44% YoY and 25% QoQ; EPS was NT$5.32, down 47% YoY and 30% QoQ.

Segment performance

• FY23 revenue by technology: 5nm and below 34%, 7nm 31%, 16nm 26%, and 28nm and above 9%.

• FY23 sales by application: Digital Consumer 45%, Industry 24%, OAI/ML 12%, Networking 11%, and Others 8%.

• FY23 sales by customer type: Fabless 69%, System House 31%; by region: Japan 31%, Korea 26%, USA 22%, Europe 9%, China 8%, Taiwan 4%.

• In 4Q23, 16nm-and-below technologies were 84% of NRE revenue, with 5nm-and-below at 20%; 7nm was 24% of Turnkey revenue, while 5nm-and-below had no Turnkey contribution.

• 4Q23 16nm-and-below technologies were 67% of total revenue; AI/ML and Networking together contributed 35%, while China contributed 34%.