United Microelectronics hits max capacity

United Microelectronics Corp. (UMC) announced hitting a record high in wafer shipments and producing at maximum capacity for Q2 2010. 65nm shipments drove the company's growth. The company achieved $926 million sales for Q2 2010, up 11 percent from Q1 2010 and 32 percent over Q1 2009. Net income was at $164 million, up 51 percent sequentially and up 241 percent year-to-year.

"Capacity utilization for the second quarter of 2010 was full, with shipments growing to a record 1,156 thousand 8in [200mm] equivalent wafers," said Shih-Wei Sun, CEO of UMC, in a statement. Sun said revenue for the quarter exceeded expectations, crediting an accelerated ramp-up of 65-nm capacity and a favorable product mix.

Revenue from 65nm and below products grew more than 50 percent compared to the previous quarter, with 40nm output accounting for 3 percent of sales, Sun said.

"Demand is expected to remain robust for advanced processes, driven by new applications and technology migration," Sun said. "Therefore, we are optimistic about third-quarter growth, anticipate rising revenues and profit and maintain a healthy outlook for mid to long-term demand."

UMC plans to raise its 2010 capital expenditure outlay to $1.8 billion, Sun said. The company had previously said it expected to spend between $1.2 billion and $1.5 billion on capital expenditures this year.

The percentage of UMC's second quarter revenue derived from the communications market decreased to 54 percent from 59 percent in the previous quarter and 62 percent in the year-ago quarter. Meanwhile, the consumer market accounted for 31 percent of second quarter revenue, up from 26 percent in the previous quarter and 21 percent in the year-ago quarter.

UMC's capacity utilization rate increased to 100 percent in the second quarter from 88 percent in the previous quarter and 79 percent in the year-ago quarter. During late 2008 and early 2009, capacity utilization rates at UMC and other foundries declined to historical lows amid the steep semiconductor industry downturn.

UMC said it has earmarked 87 percent of its 2010 capital expenditures for 300mm manufacturing lines, with 13 percent going to 200mm lines.

- Dylan McGrath
EE Times