United Microelectronics (UMC) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 revenue was NT$60.39 billion (TWD 60.4 billion), up 9.9% year-over-year but nearly flat sequentially, with net income at NT$8.50 billion and EPS of NT$0.68.

• Full-year 2024 revenue grew 4.4% year-over-year to NT$232.3 billion, while net income declined 22.6% to NT$47.21 billion.

• 22/28nm technology portfolio contributed 34% of Q4 and full-year revenue, with strong customer migration to 22nm specialty platforms.

• Wafer shipments in Q4 2024 were 909 thousand 12" equivalents, utilization rate at 70%.

• Capacity expansion projects, including Singapore Phase 3 Fab and 12nm collaboration with a U.S. partner, are progressing as planned.

Financial highlights

• Q4 2024 gross margin was 30.4%, with operating margin at 19.8% and net margin at 14.1%.

• Full-year 2024 gross margin was 32.6%, operating margin 22.2%, and net margin 20.3%.

• Q4 net income attributable to shareholders was NT$8.50 billion, EPS NT$0.68; full-year EPS was NT$3.80.

• Cash and cash equivalents at year-end were NT$105 billion; total equity at year-end was NT$378 billion.

• Q4 saw a NT$1.44 billion net non-operating expense, mainly from investment losses.

Outlook and guidance

• Q1 2025 wafer shipments expected to remain flat; ASP in USD to decrease by a mid-single digit percentage.

• Q1 2025 gross margin guided above 25%, impacted by a one-off ASP decline, increased depreciation, and earthquake effects, with insurance expected to offset some losses.

• Capacity utilization rate for Q1 2025 projected at approximately 70%.

• Full-year 2025 CapEx budgeted at US$1.8 billion, down from over US$2.8 billion in 2024, with 90% allocated to 12" fabs.

• Semiconductor industry expected to grow 10% in 2025, with foundry market growth in the mid- to high-teens percent, driven by AI servers and increased chip content.