UMC's Q2 sales beat market expectations

2019/07/09 20:35:40 fontsize-small fontsize-default fontsize-big
UMC's Q2 sales beat market expectations

Taipei, July 9 (CNA) United Microelectronics Corp. (UMC), the second-largest contract chipmaker in Taiwan, on Tuesday reported better-than-expected sales for the second quarter of this year.

UMC, trailing Taiwan Semiconductor Manufacturing Co. (TSMC) in terms of sales, outperformed a market estimate on the back of solid global demand for smartphones, Internet connecting devices and displays, market analysts said.

In the April-June period, UMC posted NT$36.03 billion (US$1.15 billion) in consolidated sales, up 10.58 percent from a quarter earlier, compared with an earlier market forecast of a 9 percent-10 percent increase.

Analysts said UMC benefited from an increase in shipments from its sophisticated 12-inch wafer production plants due to strong demand for high-end electronics devices in the second quarter.

While UMC did not give a sales forecast for the second quarter, it anticipated that shipments for the three-month period would grow 6 percent-7 percent from a quarter earlier, with the average selling price expected to grow 3 percent sequentially.

In June, however, UMC saw its consolidated sales fall 4.37 percent from a month earlier to NT$11.71 billion. The June figure was also down 12.40 percent from a year earlier.

In the first six months of this year, UMC's consolidated sales stood at NT$68.61 billion, down 10.13 percent from a year earlier.

Looking ahead, UMC said that due to the peak season in the third quarter, its revenue growth momentum is expected to continue.

Meanwhile, Vanguard International Semiconductor Corp. (VIS), a smaller pure foundry operator in Taiwan, reported a 0.16 percent sequential increase it its sales for the second quarter, as its clients conducted inventory adjustments.

Despite this, VIS consolidated sales for the second quarter, totaling NT$6.92 billion, beat the company's earlier estimate ranging between NT$6.4 billion and NT$6.8 billion.

VIS, which has a 28.23 percent stake owned by TSMC, posted NT$2.297 billion in consolidated sales in June, down 1.17 percent from a month earlier. VIS is well known for rolling out chips from its 8-inch wafer plants.

TSMC, the world's largest contract chipmaker, is expected to release its June and second-quarter sales Wednesday. Investors at home and abroad have been waiting for TSMC's sales figures.

(By Chang Chien-chung and Frances Huang)

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