United Microelectronics Corp (UMC, 聯電), the nation’s second-biggest foundry service provider, yesterday forecast another thriving period next year, with revenue growth forecast to outpace the 12 percent estimated for its global peers.
To satisfy clients’ strong demand for 28-nanometer chips, the Hsinchu-based chipmaker is to expand capacity by 6 percent next year by squeezing extra capacity from a 12-inch fab in Tainan as its factories are forecast to run at full capacity until the end of this year.
“With the P5 and P6 expansion projects under way at our flagship 12A Fab in Tainan, given the strong demand from our customers, we are well-positioned to grow and capture additional market share in 2022,” UMC copresident Jason Wang (王石) told investors at a teleconference yesterday.
Photo: David Chang, EPA-EFE
UMC is also evaluating the possibility of building a new fab beyond Taiwan, Japan and China, Wang said in response to an analyst’s question about reports that UMC was considering investing more than NT$100 billion (US$3.59 billion) on a new 12-inch fab in Singapore.
“Our capacity will remain full in 2022 both for 12-inch and 8-inch fabs,” Wang said.
Amid a global chip crunch, the chipmaker expects the “average selling price [ASP] momentum to continue into 2022,” he said.
Chip demand is driven by 5G-related applications, electric vehicles and Internet of Things devices, he added.
UMC expects revenue to grow by 1 to 2 percent sequentially this quarter, with ASP estimated to climb by 1 to 2 percent, it said.
Gross margin is to rise to between 37 and 39 percent from 36.8 percent last quarter, the highest level in about two decades, the company said.
Last quarter, net profit surged 91.7 percent to NT$17.46 billion from NT$9.11 billion a year earlier and grew 46.2 percent from NT$11.94 billion in the second quarter. Last quarter’s figure was the best in about 13 years.
Earnings per share rose to NT$1.43, from NT$0.75 a year earlier and NT$0.98 in the prior quarter.
UMC attributed the strong growth to robust chip demand from computing, consumer and communications segments.
The chipmaker said that its capital budget is to remain unchanged at US$2.3 billion this year.
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