United Microelectronics (UMC) saw its revenue and gross margin results for the second quarter of 2012 slightly beat its guidance. Looking forwad, the IC foundry expects marginal sequential growth in wafer shipments and ASP in the third quarter, and gross margin in the mid-20% range with capacity utilization remaining flat.
UMC has reported revenues of NT$27.62 billion (US$924.67 million) for the second quarter of 2012, up 16.2% on quarter but down 1.9% from a year earlier. Wafer shipments in the second quarter grew 18.6% sequentially to 1.14 million 8-inch equivalent wafers, said the company, adding that it ran at 84% utilization rate in the quarter.
"Strength from the communication and consumer sectors mainly contributed to the increased shipments," UMC CEO Shih-Wei Sun, said in a statement. "For the upcoming quarter, we expect mild revenue growth, with 40nm percentage contribution increasing significantly as volume production begins for several new products."
In the second quarter, communications products took up 54% of UMC's revenues, up from 49% in the prior quarter. Consumer and PC products commanded a respective 26% and 17% of revenues, down by 1pp and 4pp.
UMC saw 40nm and more advanced processes account for 9% of revenues in the second quarter, compared to 9% in the first quarter and 6% in second-quarter 2011.
"We anticipate leading-edge revenue contribution to increase substantially during the second half of this year," Sun continued. "However, we are cautious due to the potential for chip demand volatility in the near future, as end demand uncertainties elevate in light of growing European sovereign debt issues, supply chain inventory and customers adopting a conservative stance."
UMC expects third-quarter wafer shipments to increase marginally on quarter, with also a marginal rise in wafer ASP. Third-quarter utilization rate will remain unchanged from the prior quarter's level, the firm estimated. Demand from the consumer and PC sectors is looking to outpace the communication segment during the third quarter.
UMC posted net profits of NT$2.99 billion, or NT$0.24 per share, in the second quarter.
