United Microelectronics (UMC) Q1 2021 earnings summary

Executive summary

• Wafer demand exceeded supply amid semiconductor component shortages; utilization was 100% and shipments reached 2.372M 8-inch equivalents, up 3.4% QoQ despite fewer working days and lower quarterly capacity.

• Blended ASP increased as shipments and stronger 28nm sales supported quarterly gross profit growth.

Financial highlights

• Revenue was NT$47,097m, up 4.0% QoQ and 11.4% YoY; gross profit was NT$12,494m, up 15.2% QoQ and 53.8% YoY.

• Operating income reached NT$7,622m, up 35.7% QoQ and 123.2% YoY; parent-attributable net income was NT$10,428m, down 6.9% QoQ and up 372.5% YoY.

• Net income was NT$9,889m, versus NT$1,230m in Q1 2020 and NT$10,890m in Q4 2020; basic EPS was NT$0.85.

• Net non-operating income was NT$3.36B, including NT$3.53B net investment gain and NT$93M exchange gain, offset by NT$272M net interest expense.

• Total comprehensive income was NT$13,445m, compared with a loss of NT$2,484m in Q1 2020.

Outlook and guidance

• Q2 wafer shipments were guided to increase ~2% QoQ; USD ASP to rise 3–4%, gross margin to challenge 30%, and utilization to remain 100%.

• Q2 capacity was expected to rise 4% QoQ to 2.370M 8-inch equivalent wafers; 2021 CAPEX budget was US$2.3B.

• Q2 demand was expected to continue exceeding supply, supporting higher shipments and blended USD ASP.