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UMC Q4 revenue drops

Posted: 09 Feb 2007 ?? ?Print Version ?Bookmark and Share

Keywords:United Micro Electronics Corp.? foundry? chip? revenue? UMC?

Taiwanese foundry United Micro Electronics Corp. (UMC) reported Q4 2006 net income of about $175 million on revenue of about $801 million. Net income was down 34 percent sequentially, but up 87 percent year-to-year, while evenue was down 6 percent sequentially and 5 percent year-to-year, UMC said.

For the full year 2006, revenue was up 15 percent to about $3.1 billion, while net income increased 364 percent to about $987 million.

The percentage of UMC revenue from 90- and 65nm technologies remained 21 percent in Q4. Revenue percentage from 0.35?m technology increased to 17 percent from 13 percent, due primarily to increasing demand from driver-IC products, UMC said. Percentage of company revenue from fabless customers increased to 63 percent from 56 percent, with demand was relatively stronger than IDM customers.

According to the company, on a region-by-region basis, percentage of Q4 revenue from North American companies decreased to 53 percent, down from 60 percent in Q3 of 2006. Percentage of revenue from Asia-Pacific companies increased to 37 percent from 27 percent, with European companies declining to 7 percent of revenue from 10 percent. Percentage of revenue from Japanese companies remained stable quarter-to-quarter at 3 percent.

Revenue from the communication market accounted for 61 percent of UMC's total revenue in Q4, the company said, up from 55 percent in Q3 of 2006. Most of this increase was due to relatively stronger demand from wireless customers, especially from the Asia Pacific region, UMC said. Revenue from the computer and consumer markets was weak in the fourth quarter due to inventory correction by customers.

The blended average selling price (ASP) for the quarter was down by 5 percent sequentially, the company said. UMC attributed this mainly to a wafer shipment mix issuefewer 0.13?m shipments but more 0.35?m shipments.

"We believe that foundry market will experience mild growth in 2007," said Jackson Hu, UMC chairman and CEO, in a statement. "The inventory correction is ongoing in 1Q07, but should come back smoothly in the second quarter. Most of our customers are expecting demand to be strong in the second half."

Hu said the acceleration of IDMs adopting fabless and "fab-lite" strategies will benefit foundries.

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