United Microelectronics Corporation (UMC) recently reported a decline in sales for the month of February. The company’s sales fell by 3.07% year-over-year to NT$17.45 billion. This follows a 0.15% decrease in revenues for the period of January to February, totaling NT$36.464 billion. Additionally, total revenues in February saw an 8.2% decrease from January revenues.
Looking ahead, UMC expects first-quarter wafer shipments to increase by approximately 2%-3% while the average selling price (ASP) in USD is expected to decrease by 5%. The company also anticipates a 2024 capital expenditure of $3.3 billion and expects capacity utilization to be in the low 60% range.
In a statement following the fourth-quarter results, Jason Wang, co-president of UMC, expressed cautious optimism for the first quarter of 2024. He noted that while overall wafer demand is expected to increase slightly, customers are taking a cautious approach to inventory management.
UMC has been actively investing in new technologies to drive growth. Last year, the company launched the W2W (wafer-to-wafer) 3D IC project in collaboration with partners to help customers accelerate the production of their 3D products.
Despite the recent decline in sales, UMC remains committed to innovation and growth. The company’s shares closed lower by 1.29% at $7.64 on Tuesday. Investors will be watching closely to see how UMC navigates the challenges ahead and capitalizes on opportunities in the semiconductor industry.
