Robust 22nm pipeline to fuel growth in 2025, strengthening company's foundry competitiveness
Fourth Quarter 2024 Overview1:
- Revenue: NT$60.39 billion (US$1.84 billion)
- Gross margin: 30.4%; Operating margin: 19.8%
- Revenue from 22/28nm: 34%
- Capacity utilization rate: 70%
- Net income attributable to shareholders of the parent: NT$8.50 billion (US$259 million)
- Earnings per share: NT$0.68; earnings per ADS: US$0.104
UMC Reports Fourth Quarter 2024 Results
Michael Lin / David Wong
UMC, Investor Relations
+ 886-2- 2658-9168, ext. 16900
jinhong_lin@umc.com
david_wong@umc.com
United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the fourth quarter of 2024.
Fourth quarter consolidated revenue was NT$60.39 billion, decreasing 0.2% from NT$60.49 billion in 3Q24. Compared to a year ago, 4Q24 revenue increased 9.9%. Consolidated gross margin for 4Q24 was 30.4%. Net income attributable to the shareholders of the parent was NT$8.50 billion, with earnings per ordinary share of NT$0.68.
Jason Wang, co-president of UMC, said, “Our fourth-quarter results met guidance, with wafer shipments and utilization slightly exceeding expectations. For full year 2024, revenue grew 4.4% year-on-year, reflecting a steady improvement in demand across communication, consumer, and computer segments. Our 22/28nm portfolio remained the largest contributor, with revenue increasing 15% in 2024. Notably, customers are showing strong interest in migrating to our 22nm specialty platforms for next-generation networking and display driver applications, which offer significant power savings and performance advantages over 28nm solutions. Tape-outs for 22nm products are accelerating and we expect to see higher revenue contribution from 2025 onwards.”
Co-president Wang commented, “Looking into 2025, the semiconductor market is poised for another year of growth, driven by strong demand for AI servers as well as increasing semiconductor content in smartphones, PCs, and other electronic devices. To capture opportunities in this fast-moving market, UMC continues to invest in technology innovation, developing industry-leading specialty solutions to ride the next wave of system upgrades and stay ahead of the competition. Building on our technology foundation, UMC is also actively expanding our advanced packaging offering to help unleash the potential of AI in the coming years. In conjunction with technology development, our key capacity expansion projects are progressing as planned. Our new Singapore Phase 3 fab will enhance customers’ supply chain resilience, while the 12nm collaboration with our U.S. partner will offer customers a migration path beyond 22nm.”
Co-president Wang added, “In the fourth quarter of 2024, we signed a major offshore wind purchase agreement, which is UMC’s largest renewable energy transaction to date. This agreement puts UMC well on track to achieving our goal of 50% renewable energy use by 2030 as part of our roadmap to net zero emissions and 100% renewable energy by 2050. Our commitment to best practices in sustainable development continued to be recognized by key ESG benchmarks. In the 2024 Dow Jones Sustainability Indices (DJSI) results announced in December, UMC is proud to achieve the top ranking in the semiconductor industry, marking UMC’s 17th consecutive year of being recognized as one of the most sustainable companies globally.”
Summary of Operating Results
Operating Results |
|||||||||||||||
(Amount: NT$ million) |
4Q24 |
3Q24 |
QoQ %
|
4Q23 |
YoY %
|
||||||||||
Operating Revenues |
60,386 |
|
60,485 |
|
(0.2 |
) |
54,958 |
|
9.9 |
|
|||||
Gross Profit |
18,343 |
|
20,429 |
|
(10.2 |
) |
17,806 |
|
3.0 |
|
|||||
Operating Expenses |
(6,748 |
) |
(6,559 |
) |
2.9 |
|
(6,635 |
) |
1.7 |
|
|||||
Net Other Operating Income and Expenses |
362 |
|
230 |
|
57.7 |
|
1,252 |
|
(71.1 |
) |
|||||
Operating Income |
11,957 |
|
14,100 |
|
(15.2 |
) |
12,423 |
|
(3.8 |
) |
|||||
Net Non-Operating Income and Expenses |
(1,443 |
) |
2,464 |
|
- |
|
2,227 |
|
- |
|
|||||
Net Income Attributable to Shareholders of the Parent |
8,497 |
|
14,472 |
|
(41.3 |
) |
13,195 |
|
(35.6 |
) |
|||||
EPS (NT$ per share) |
0.68 |
|
1.16 |
|
|
1.06 |
|
|
|||||||
(US$ per ADS) |
0.104 |
|
0.177 |
|
|
0.162 |
|
|
|||||||
Fourth quarter operating revenues declined 0.2% sequentially to NT$60.39 billion. Revenue contribution from 40nm and below technologies represented 50% of wafer revenue. Gross profit decreased 10.2% QoQ to NT$18.34 billion, or 30.4% of revenue. Operating expenses increased 2.9% to NT$6.75 billion. Net other operating income increased 57.7% to NT$0.36 billion. Net non-operating expenses totaled NT$1.44 billion. Net income attributable to shareholders of the parent amounted to NT$8.50 billion.
Earnings per ordinary share for the quarter was NT$0.68. Earnings per ADS was US$0.104. The basic weighted average number of shares outstanding in 4Q24 was 12,481,192,676, compared with 12,436,436,695 shares in 3Q24 and 12,414,087,724 shares in 4Q23. The diluted weighted average number of shares outstanding was 12,610,756,874 in 4Q24, compared with 12,559,358,115 shares in 3Q24 and 12,589,138,701 shares in 4Q23. The fully diluted shares counted on December 31, 2024 were approximately 12,614,345,000.
Detailed Financials Section
Operating revenues decreased to NT$60.39 billion. COGS grew 5.0% to NT$42.04 billion, which included 13.3% sequential increase in depreciation. Gross profit decreased 10.2% QoQ to NT$18.34 billion. Operating expenses increased to NT$6.75 billion, as R&D grew 7.8% sequentially to NT$4.33 billion or 7.2% of revenue, while Sales & Marketing decreased 13.0% to NT$0.62 billion and G&A also declined 1.6% QoQ to NT$1.79 billion. Net other operating income was NT$0.36 billion. In 4Q24, operating income declined 15.2% QoQ to NT$11.96 billion.
COGS & Expenses |
|||||||||||||||
(Amount: NT$ million) |
4Q24 |
3Q24 |
QoQ %
|
4Q23 |
YoY %
|
||||||||||
Operating Revenues |
60,386 |
|
60,485 |
|
(0.2 |
) |
54,958 |
|
9.9 |
|
|||||
COGS |
(42,043 |
) |
(40,056 |
) |
5.0 |
|
(37,152 |
) |
13.2 |
|
|||||
Depreciation |
(11,841 |
) |
(10,449 |
) |
13.3 |
|
(9,006 |
) |
31.5 |
|
|||||
Other Mfg. Costs |
(30,202 |
) |
(29,607 |
) |
2.0 |
|
(28,146 |
) |
7.3 |
|
|||||
Gross Profit |
18,343 |
|
20,429 |
|
(10.2 |
) |
17,806 |
|
3.0 |
|
|||||
Gross Margin (%) |
30.4 |
% |
33.8 |
% |
? |
32.4 |
% |
? |
|||||||
Operating Expenses |
(6,748 |
) |
(6,559 |
) |
2.9 |
|
(6,635 |
) |
1.7 |
|
|||||
Sales & Marketing |
(623 |
) |
(717 |
) |
(13.0 |
) |
(823 |
) |
(24.3 |
) |
|||||
G&A |
(1,791 |
) |
(1,820 |
) |
(1.6 |
) |
(1,930 |
) |
(7.2 |
) |
|||||
R&D |
(4,334 |
) |
(4,022 |
) |
7.8 |
|
(3,945 |
) |
9.9 |
|
|||||
Expected Credit Impairment gain (loss) |
0 |
|
(0 |
) |
- |
|
63 |
|
(99.4 |
) |
|||||
Net Other Operating Income & Expenses |
362 |
|
230 |
|
57.7 |
|
1,252 |
|
(71.1 |
) |
|||||
Operating Income |
11,957 |
|
14,100 |
|
(15.2 |
) |
12,423 |
|
(3.8 |
) |
|||||
Net non-operating expenses in 4Q24 was NT$1.44 billion, primarily reflecting the NT$2.61 billion in net investment loss, offset by the NT$0.88 billion in exchange gain, and the NT$0.29 billion in net interest income.
Non-Operating Income and Expenses |
|||||||||
(Amount: NT$ million) |
4Q24 |
|
3Q24 |
4Q23 |
|||||
Non-Operating Income and Expenses |
(1,443 |
) |
2,464 |
|
2,227 |
|
|||
Net Interest Income and Expenses |
290 |
|
324 |
|
880 |
|
|||
Net Investment Gain and Loss |
(2,614 |
) |
2,791 |
|
1,750 |
|
|||
Exchange Gain and Loss |
877 |
|
(652 |
) |
(405 |
) |
|||
Other Gain and Loss |
4 |
|
1 |
|
2 |
|
|||
In 4Q24, cash inflow from operating activities was NT$32.98 billion. Cash outflow from investing activities totaled NT$16.97 billion, which included NT$18.93 billion in capital expenditure, resulting in free cash flow of NT$14.04 billion. Cash outflow from financing was NT$14.31 billion, primarily from NT$10.50 billion in bank loans and NT$3.40 billion in redemption of bonds. Net cash flow in 4Q24 amounted to NT$1.59 billion. Over the next 12 months, the company expects to repay NT$5.53 billion in bank loans.
Cash Flow Summary |
||||||
(Amount: NT$ million) |
For the 3-Month Period Ended Dec. 31, 2024 |
For the 3-Month Period Ended Sep. 30, 2024 |
||||
Cash Flow from Operating Activities |
32,977 |
|
17,347 |
|
||
Net income before tax |
10,514 |
|
16,564 |
|
||
Depreciation & Amortization |
13,463 |
|
12,702 |
|
||
Share of loss (profit) of associates and joint ventures |
1,800 |
|
(843 |
) |
||
Income tax paid |
(137 |
) |
(3,755 |
) |
||
Changes in working capital & others |
7,337 |
|
(7,321 |
) |
||
Cash Flow from Investing Activities |
(16,968 |
) |
(23,927 |
) |
||
Decrease (increase) in financial assets measured at amortized cost |
564 |
|
(1,988 |
) |
||
Acquisition of PP&E |
(18,275 |
) |
(21,729 |
) |
||
Acquisition of intangible assets |
(877 |
) |
(499 |
) |
||
Others |
1,620 |
|
289 |
|
||
Cash Flow from Financing Activities |
(14,305 |
) |
(12,750 |
) |
||
Bank loans |
(10,495 |
) |
25,050 |
|
||
Redemption of bonds |
(3,400 |
) |
- |
|
||
Cash dividends |
- |
|
(37,585 |
) |
||
Others |
(410 |
) |
(215 |
) |
||
Effect of Exchange Rate |
(111 |
) |
1,073 |
|
||
Net Cash Flow |
1,593 |
|
(18,257 |
) |
||
Beginning balance |
103,407 |
|
121,234 |
|
||
Changes in non-current assets held for sale |
- |
|
430 |
|
||
Ending balance |
105,000 |
|
103,407 |
|
||
Cash and cash equivalents increased to NT$105.00 billion. Days of inventory decreased 5 days to 80 days.
Current Assets |
||||||
(Amount: NT$ billion) |
4Q24 |
3Q24 |
4Q23 |
|||
Cash and Cash Equivalents |
105.00 |
103.41 |
132.55 |
|||
Accounts Receivable |
33.34 |
33.74 |
29.59 |
|||
Days Sales Outstanding |
51 |
50 |
50 |
|||
Inventories, net |
35.78 |
38.09 |
35.71 |
|||
Days of Inventory |
80 |
85 |
89 |
|||
Total Current Assets |
189.68 |
193.61 |
216.80 |
|||
Current liabilities decreased to NT$75.26 billion. Long-term credit/bonds decreased to NT$55.53 billion. Total liabilities decreased to NT$192.02 billion, leading to a debt to equity ratio of 51%.
Liabilities |
|||||||||
(Amount: NT$ billion) |
4Q24 |
3Q24 |
4Q23 |
||||||
Total Current Liabilities |
75.26 |
|
88.27 |
|
99.02 |
|
|||
Accounts Payable |
7.63 |
|
9.01 |
|
7.53 |
|
|||
Short-Term Credit / Bonds |
19.51 |
|
30.86 |
|
29.54 |
|
|||
Payables on Equipment |
10.52 |
|
14.89 |
|
19.20 |
|
|||
Other |
37.60 |
|
33.51 |
|
42.75 |
|
|||
Long-Term Credit / Bonds |
55.53 |
|
58.13 |
|
45.24 |
|
|||
Total Liabilities |
192.02 |
|
205.80 |
|
199.61 |
|
|||
Debt to Equity |
51 |
% |
56 |
% |
56 |
% |
|||
Analysis of Revenue2
Revenue from Asia Pacific decreased to 61%, while business from North America was 25% of sales. Business from Europe increased to 11%, while contribution from Japan was 3%.
Revenue Breakdown by Region |
|||||||||||||||
Region |
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
||||||||||
North America |
25 |
% |
26 |
% |
25 |
% |
25 |
% |
23 |
% |
|||||
Asia Pacific |
61 |
% |
65 |
% |
64 |
% |
63 |
% |
62 |
% |
|||||
Europe |
11 |
% |
5 |
% |
7 |
% |
8 |
% |
11 |
% |
|||||
Japan |
3 |
% |
4 |
% |
4 |
% |
4 |
% |
4 |
% |
|||||
Revenue contribution from 22/28nm slightly decreased to 34% of the wafer revenue, while 40nm contribution grew to 16% of sales.
Revenue Breakdown by Geometry |
|||||||||||||||
Geometry |
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
||||||||||
14nm and below |
0 |
% |
0 |
% |
0 |
% |
0 |
% |
0 |
% |
|||||
14nm<x<=28nm |
34 |
% |
35 |
% |
33 |
% |
33 |
% |
36 |
% |
|||||
28nm<x<=40nm |
16 |
% |
13 |
% |
12 |
% |
14 |
% |
14 |
% |
|||||
40nm<x<=65nm |
16 |
% |
15 |
% |
15 |
% |
18 |
% |
16 |
% |
|||||
65nm<x<=90nm |
11 |
% |
10 |
% |
12 |
% |
10 |
% |
9 |
% |
|||||
90nm<x<=0.13um |
10 |
% |
10 |
% |
11 |
% |
9 |
% |
9 |
% |
|||||
0.13um<x<=0.18um |
9 |
% |
11 |
% |
10 |
% |
11 |
% |
9 |
% |
|||||
0.18um<x<=0.35um |
4 |
% |
5 |
% |
5 |
% |
4 |
% |
5 |
% |
|||||
0.5um and above |
0 |
% |
1 |
% |
2 |
% |
1 |
% |
2 |
% |
|||||
Revenue from fabless customers accounted for 84% of revenue.
Revenue Breakdown by Customer Type |
|||||||||||||||
Customer Type |
4Q24 |
3Q23 |
2Q23 |
1Q23 |
4Q22 |
||||||||||
Fabless |
84 |
% |
85 |
% |
87 |
% |
82 |
% |
78 |
% |
|||||
IDM |
16 |
% |
15 |
% |
13 |
% |
18 |
% |
22 |
% |
|||||
Revenue from the communication segment accounted for 39%, while business from computer applications remained at 13%. Business from consumer applications was 29%, while other segments increased to 19% of revenue.
Revenue Breakdown by Application (1) |
|||||||||||||||
Application |
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
||||||||||
Computer |
13 |
% |
13 |
% |
15 |
% |
13 |
% |
13 |
% |
|||||
Communication |
39 |
% |
42 |
% |
39 |
% |
48 |
% |
47 |
% |
|||||
Consumer |
29 |
% |
31 |
% |
31 |
% |
23 |
% |
23 |
% |
|||||
Others |
19 |
% |
14 |
% |
15 |
% |
16 |
% |
17 |
% |
|||||
(1) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec, keyboard controller, monitor scaler, USB, I/O chipset, WLAN. Communication consists of handset components, broadband, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart cards, toys, etc. |
Blended ASP Trend
Blended average selling price (ASP) remained flat in 4Q24.
(To view blended ASP trend, please click here for 4Q24 ASP)
Shipment and Utilization Rate3
Wafer shipments increased 1.5% QoQ to 909K in the fourth quarter, while quarterly capacity was 1,280K. Overall utilization rate in 4Q24 slightly declined to 70%.
Wafer Shipments |
|||||||||||||||
|
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
||||||||||
Wafer Shipments
|
909 |
|
896 |
|
831 |
|
810 |
|
775 |
|
|||||
|
|||||||||||||||
Quarterly Capacity Utilization Rate |
|||||||||||||||
|
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
||||||||||
Utilization Rate |
70 |
% |
71 |
% |
68 |
% |
65 |
% |
66 |
% |
|||||
Total Capacity
|
1,280 |
|
1,274 |
|
1,257 |
|
1,212 |
|
1,204 |
|
|||||
Capacity4
Total capacity in the fourth quarter increased to 1,280K 12-inch equivalent wafers. Capacity will decline in the first quarter of 2025 to 1,264K 12-inch equivalent wafers, reflecting the annual production maintenance across 8” and 12” facilities.
Annual Capacity in
|
|
Quarterly Capacity in
|
|||||||||||||||
FAB |
Geometry
|
2024 |
2023 |
2022 |
2021 |
|
FAB |
1Q25E |
4Q24 |
3Q24 |
2Q24 |
||||||
WTK |
6" |
5 – 0.15 |
331 |
|
328 |
|
335 |
|
329 |
|
|
WTK |
6" |
78 |
83 |
83 |
83 |
8A |
8" |
3 – 0.11 |
829 |
|
811 |
|
765 |
|
755 |
|
|
8A |
8" |
212 |
207 |
207 |
207 |
8C |
8" |
0.35 – 0.11 |
477 |
|
473 |
|
459 |
|
459 |
|
|
8C |
8" |
123 |
119 |
119 |
119 |
8D |
8" |
0.18 – 0.09 |
473 |
|
440 |
|
410 |
|
380 |
|
|
8D |
8" |
116 |
118 |
118 |
118 |
8E |
8" |
0.6 – 0.14 |
524 |
|
490 |
|
469 |
|
457 |
|
|
8E |
8" |
129 |
131 |
131 |
131 |
8F |
8" |
0.18 – 0.11 |
578 |
|
570 |
|
550 |
|
514 |
|
|
8F |
8" |
144 |
145 |
145 |
145 |
8S |
8" |
0.18 – 0.11 |
455 |
|
447 |
|
443 |
|
408 |
|
|
8S |
8" |
115 |
114 |
114 |
114 |
8N |
8" |
0.5 – 0.11 |
1,013 |
|
996 |
|
952 |
|
917 |
|
|
8N |
8" |
246 |
254 |
254 |
254 |
12A |
12" |
0.13 – 0.014 |
1,556 |
|
1,305 |
|
1,170 |
|
1,070 |
|
|
12A |
12" |
402 |
409 |
403 |
386 |
12i |
12" |
0.13 – 0.040 |
678 |
|
655 |
|
655 |
|
641 |
|
|
12i |
12" |
169 |
172 |
172 |
172 |
12X |
12" |
0.080 – 0.022 |
318 |
|
317 |
|
314 |
|
284 |
|
|
12X |
12" |
78 |
80 |
80 |
80 |
12M |
12" |
0.13 – 0.040 |
455 |
|
438 |
|
436 |
|
395 |
|
|
12M |
12" |
113 |
115 |
115 |
115 |
Total(1) |
5,022 |
|
4,674 |
|
4,458 |
|
4,201 |
|
|
Total |
1,264 |
1,280 |
1,274 |
1,257 |
|||
YoY Growth Rate |
7 |
% |
5 |
% |
6 |
% |
3 |
% |
|
|
|
|
|
|
|||
(1) One 6-inch wafer is converted into 0.25 (62/122) 12-inch equivalent wafer; one 8-inch wafer is converted into 0.44 (82/122) 12-inch equivalent wafers. Total capacity figures are expressed in 12-inch equivalent wafers.
CAPEX
CAPEX spending in 4Q24 totaled US$602 million as 2024 CAPEX amounted to US$2.9 billion. 2025 cash-based CAPEX budget will be US$1.8 billion.
Capital Expenditure by Year - in US$ billion |
|||||||||||||||
Year |
2024 |
2023 |
2022 |
2021 |
2020 |
||||||||||
CAPEX |
$ |
2.9 |
$ |
3.0 |
$ |
2.7 |
$ |
1.8 |
$ |
1.0 |
|||||
| 2025 CAPEX Plan | ||
8" |
12" |
Total |
10% |
90% |
US$1.8 billion |
Brief Summary of Full Year 2024 Consolidated Results
- Consolidated revenue in NTD increased 4.4% YoY to NT$232.30 billion, from NT$222.53 billion in 2023.
- Gross profit decreased 2.7%, compared to a year ago, representing 32.6% of 2024 revenue.
- Operating income decreased 10.8% year-on-year, accounting for 22.2% of 2024 revenue.
- Net income attributable to shareholders of the parent decreased 22.6% to NT$47.21 billion in 2024.
- EPS was NT$3.80, or EPADS of US$0.580 for 2024.
- 22/28nm revenue contribution accounted for 34% in 2024.
Operating Results |
|||||||||
(Amount: NT$ million) |
2024 |
2023 |
YoY %
|
||||||
Operating Revenues |
232,303 |
|
222,533 |
|
4.4 |
|
|||
Gross Profit |
75,654 |
|
77,744 |
|
(2.7 |
) |
|||
Operating Expenses |
(25,365 |
) |
(23,855 |
) |
6.3 |
|
|||
Net Other Operating Income and Expenses |
1,324 |
|
4,002 |
|
(66.9 |
) |
|||
Operating Income |
51,613 |
|
57,891 |
|
(10.8 |
) |
|||
Net Non-Operating Income and Expenses |
4,607 |
|
13,021 |
|
(64.6 |
) |
|||
Income Tax Expense |
(9,114 |
) |
(9,472 |
) |
(3.8 |
) |
|||
Net Income Attributable to Shareholders of the Parent |
47,211 |
|
60,990 |
|
(22.6 |
) |
|||
EPS (NT$ per share) |
3.80 |
|
4.93 |
|
|
||||
(US$ per ADS) |
0.580 |
|
0.752 |
|
|
||||
Annual Sales Breakdown in Revenue for Foundry Segment
Region |
2024 |
2023 |
||||
North America |
25 |
% |
27 |
% |
||
Asia Pacific |
63 |
% |
57 |
% |
||
Europe |
8 |
% |
11 |
% |
||
Japan |
4 |
% |
5 |
% |
||
|
|
|
||||
Technology |
2024 |
2023 |
||||
14nm and below |
0 |
% |
0 |
% |
||
14nm<x<=28nm |
34 |
% |
31 |
% |
||
28nm<x<=40nm |
14 |
% |
14 |
% |
||
40nm<x<=65nm |
16 |
% |
19 |
% |
||
65nm<x<=90nm |
11 |
% |
10 |
% |
||
90nm<x<=0.13um |
10 |
% |
10 |
% |
||
0.13um<x<=0.18um |
10 |
% |
9 |
% |
||
0.18um<x<=0.35um |
4 |
% |
5 |
% |
||
0.5um and above |
1 |
% |
2 |
% |
||
|
|
|
||||
Customer Type |
2024 |
2023 |
||||
Fabless |
84 |
% |
78 |
% |
||
IDM |
16 |
% |
22 |
% |
||
|
|
|
||||
Application |
2024 |
2023 |
||||
Computer |
14 |
% |
11 |
% |
||
Communication |
42 |
% |
45 |
% |
||
Consumer |
28 |
% |
24 |
% |
||
Others |
16 |
% |
20 |
% |
||
First Quarter 2025 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Wafer Shipments: Will remain flat
- ASP in USD: Will decrease by mid-single digit %
- Gross Profit Margin: Will be higher than 25% with 0121 earthquake impact
- Capacity Utilization: approximately 70%
- 2025 CAPEX: US$1.8 billion
Recent Developments / Announcements
Oct. 30, 2024 |
||
Dec. 10, 2024 |
||
Dec. 17, 2024 |
||
Dec. 18, 2024 |
||
Jan. 14, 2025 |
UMC’s Flagship Fab Designated One of 189 Smart Manufacturing Lighthouses by the World Economic Forum |
Please visit UMC’s website for further details regarding the above announcements
Conference Call / Webcast Announcement
Tuesday, January 21, 2025
Time: 5:00 PM (Taipei) / 4:00 AM (New York) / 9:00 AM (London)
Dial-in numbers and Access Codes: |
|
|
Taiwan Number: |
02 3396 1191 |
|
Taiwan Toll Free: |
0080 119 6666 |
|
US Toll Free: |
+1 866 212 5567 |
|
Other Areas: |
+886 2 3396 1191 |
|
|
|
|
Access Code: |
3026521# |
A live webcast and replay of the 4Q24 results announcement will be available at www.umc.com under the “Investors / Events” section.
About UMC
UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry company. The company provides high-quality IC fabrication services, focusing on logic and various specialty technologies to serve all major sectors of the electronics industry. UMC’s comprehensive IC processing technologies and manufacturing solutions include Logic/Mixed-Signal, embedded High-Voltage, embedded Non-Volatile-Memory, RFSOI, BCD etc. Most of UMC’s 12-in and 8-in fabs with its core R&D are in Taiwan, with additional ones throughout Asia. UMC has a total of 12 fabs in production with a combined capacity of more than 400,000 wafers per month (12-in equivalent), and all of them are certified with IATF 16949 automotive quality standards. UMC is headquartered in Hsinchu, Taiwan, plus local offices in the United States, Europe, China, Japan, Korea, and Singapore, with a worldwide total of 20,000 employees. For more information, please visit: http://www.umc.com.
Safe Harbor Statements
This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding anticipated financial results for the fourth quarter of 2024; the expected wafer shipment and ASP; the anticipated annual budget; capex strategies; environmental protection goals and water management strategies; impact of foreign currency exchange rates; expected foundry capacities; the ability to obtain new business opportunities; and information under the heading “First Quarter 2025 Outlook and Guidance.”
These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) dependence upon the frequent introduction of new services and technologies based on the latest developments in the industry in which UMC operates; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international business activities; (iv) dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including natural disasters, terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risk factors is included in UMC’s filings with the United States Securities and Exchange Commission, including its Annual Report on Form 20-F. All information provided in this release is as of the date of this release and are based on assumptions that UMC believes to be reasonable as of this date, and UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
The financial statements included in this release are prepared and published in accordance with Taiwan International Financial Reporting Standards, or TIFRSs, recognized by the Financial Supervisory Commission in the ROC, which is different from International Financial Reporting Standards, or IFRSs, issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from generally accepted accounting principles in the ROC and generally accepted accounting principles in the United States.
- FINANCIAL TABLES TO FOLLOW -
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||
| Consolidated Condensed Balance Sheet | |||||||
| As of December 31, 2024 | |||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||
| December 31, 2024 | |||||||
| US$ | NT$ | % | |||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | 3,203 |
105,000 |
18.4 |
% |
|||
| Accounts receivable, net | 1,017 |
33,343 |
5.9 |
% |
|||
| Inventories, net | 1,092 |
35,782 |
6.3 |
% |
|||
| Other current assets | 474 |
15,553 |
2.7 |
% |
|||
| Total current assets | 5,786 |
189,678 |
33.3 |
% |
|||
| Non-current assets | |||||||
| Funds and investments | 2,212 |
72,495 |
12.7 |
% |
|||
| Property, plant and equipment | 8,513 |
279,059 |
48.9 |
% |
|||
| Right-of-use assets | 245 |
8,039 |
1.4 |
% |
|||
| Other non-current assets | 639 |
20,930 |
3.7 |
% |
|||
| Total non-current assets | 11,609 |
380,523 |
66.7 |
% |
|||
| Total assets | 17,395 |
570,201 |
100.0 |
% |
|||
| Liabilities | |||||||
| Current liabilities | |||||||
| Short-term loans | 260 |
8,515 |
1.5 |
% |
|||
| Payables | 1,392 |
45,625 |
8.0 |
% |
|||
| Current portion of long-term liabilities | 335 |
10,995 |
1.9 |
% |
|||
| Other current liabilities | 309 |
10,125 |
1.8 |
% |
|||
| Total current liabilities | 2,296 |
75,260 |
13.2 |
% |
|||
| Non-current liabilities | |||||||
| Bonds payable | 750 |
24,585 |
4.3 |
% |
|||
| Long-term loans | 944 |
30,949 |
5.4 |
% |
|||
| Lease liabilities, noncurrent | 176 |
5,783 |
1.0 |
% |
|||
| Other non-current liabilities | 1,692 |
55,439 |
9.8 |
% |
|||
| Total non-current liabilities | 3,562 |
116,756 |
20.5 |
% |
|||
| Total liabilities | 5,858 |
192,016 |
33.7 |
% |
|||
| Equity | |||||||
| Equity attributable to the parent company | |||||||
| Capital | 3,832 |
125,607 |
22.0 |
% |
|||
| Additional paid-in capital | 451 |
14,782 |
2.6 |
% |
|||
| Retained earnings and other components of equity | 7,246 |
237,539 |
41.7 |
% |
|||
| Total equity attributable to the parent company | 11,529 |
377,928 |
66.3 |
% |
|||
| Non-controlling interests | 8 |
257 |
0.0 |
% |
|||
| Total equity | 11,537 |
378,185 |
66.3 |
% |
|||
| Total liabilities and equity | 17,395 |
570,201 |
100.0 |
% |
|||
| Note?New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2024 exchange rate of NT $32.78 per U.S. Dollar. | |||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income | ||||||||||||||||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | ||||||||||||||||||||||||||||||
| Except Per Share and Per ADS Data | ||||||||||||||||||||||||||||||
| Year over Year Comparison | Quarter over Quarter Comparison | |||||||||||||||||||||||||||||
| Three-Month Period Ended | Three-Month Period Ended | |||||||||||||||||||||||||||||
| December 31, 2024 | December 31, 2023 | Chg. | December 31, 2024 | September 30, 2024 | Chg. | |||||||||||||||||||||||||
| US$ | NT$ | US$ | NT$ | % | US$ | NT$ | US$ | NT$ | % | |||||||||||||||||||||
| Operating revenues | 1,842 |
|
60,386 |
|
1,677 |
|
54,958 |
|
9.9 |
% |
1,842 |
|
60,386 |
|
1,845 |
|
60,485 |
|
(0.2 |
%) |
||||||||||
| Operating costs | (1,282 |
) |
(42,043 |
) |
(1,134 |
) |
(37,152 |
) |
13.2 |
% |
(1,282 |
) |
(42,043 |
) |
(1,222 |
) |
(40,056 |
) |
5.0 |
% |
||||||||||
| Gross profit | 560 |
|
18,343 |
|
543 |
|
17,806 |
|
3.0 |
% |
560 |
|
18,343 |
|
623 |
|
20,429 |
|
(10.2 |
%) |
||||||||||
30.4 |
% |
30.4 |
% |
32.4 |
% |
32.4 |
% |
30.4 |
% |
30.4 |
% |
33.8 |
% |
33.8 |
% |
|||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||
| - Sales and marketing expenses | (19 |
) |
(623 |
) |
(25 |
) |
(823 |
) |
(24.3 |
%) |
(19 |
) |
(623 |
) |
(22 |
) |
(717 |
) |
(13.0 |
%) |
||||||||||
| - General and administrative expenses | (55 |
) |
(1,791 |
) |
(59 |
) |
(1,930 |
) |
(7.2 |
%) |
(55 |
) |
(1,791 |
) |
(55 |
) |
(1,820 |
) |
(1.6 |
%) |
||||||||||
| - Research and development expenses | (132 |
) |
(4,334 |
) |
(120 |
) |
(3,945 |
) |
9.9 |
% |
(132 |
) |
(4,334 |
) |
(123 |
) |
(4,022 |
) |
7.8 |
% |
||||||||||
| - Expected credit impairment gain (loss) | 0 |
|
0 |
|
2 |
|
63 |
|
(99.4 |
%) |
0 |
|
0 |
|
(0 |
) |
(0 |
) |
- |
|
||||||||||
| Subtotal | (206 |
) |
(6,748 |
) |
(202 |
) |
(6,635 |
) |
1.7 |
% |
(206 |
) |
(6,748 |
) |
(200 |
) |
(6,559 |
) |
2.9 |
% |
||||||||||
| Net other operating income and expenses | 11 |
|
362 |
|
38 |
|
1,252 |
|
(71.1 |
%) |
11 |
|
362 |
|
7 |
|
230 |
|
57.7 |
% |
||||||||||
| Operating income | 365 |
|
11,957 |
|
379 |
|
12,423 |
|
(3.8 |
%) |
365 |
|
11,957 |
|
430 |
|
14,100 |
|
(15.2 |
%) |
||||||||||
19.8 |
% |
19.8 |
% |
22.6 |
% |
22.6 |
% |
19.8 |
% |
19.8 |
% |
23.3 |
% |
23.3 |
% |
|||||||||||||||
| Net non-operating income and expenses | (44 |
) |
(1,443 |
) |
68 |
|
2,227 |
|
- |
|
(44 |
) |
(1,443 |
) |
75 |
|
2,464 |
|
- |
|
||||||||||
| Income from continuing operations before income tax | 321 |
|
10,514 |
|
447 |
|
14,650 |
|
(28.2 |
%) |
321 |
|
10,514 |
|
505 |
|
16,564 |
|
(36.5 |
%) |
||||||||||
17.4 |
% |
17.4 |
% |
26.7 |
% |
26.7 |
% |
17.4 |
% |
17.4 |
% |
27.4 |
% |
27.4 |
% |
|||||||||||||||
| Income tax expense | (63 |
) |
(2,054 |
) |
(45 |
) |
(1,457 |
) |
41.0 |
% |
(63 |
) |
(2,054 |
) |
(64 |
) |
(2,122 |
) |
(3.2 |
%) |
||||||||||
| Net income | 258 |
|
8,460 |
|
402 |
|
13,193 |
|
(35.9 |
%) |
258 |
|
8,460 |
|
441 |
|
14,442 |
|
(41.4 |
%) |
||||||||||
14.0 |
% |
14.0 |
% |
24.0 |
% |
24.0 |
% |
14.0 |
% |
14.0 |
% |
23.9 |
% |
23.9 |
% |
|||||||||||||||
| Other comprehensive income (loss) | 39 |
|
1,270 |
|
(116 |
) |
(3,808 |
) |
- |
|
39 |
|
1,270 |
|
(71 |
) |
(2,299 |
) |
- |
|
||||||||||
| Total comprehensive income (loss) | 297 |
|
9,730 |
|
286 |
|
9,385 |
|
3.7 |
% |
297 |
|
9,730 |
|
370 |
|
12,143 |
|
(19.9 |
%) |
||||||||||
| Net income attributable to: | ||||||||||||||||||||||||||||||
| Shareholders of the parent | 259 |
|
8,497 |
|
403 |
|
13,195 |
|
(35.6 |
%) |
259 |
|
8,497 |
|
441 |
|
14,472 |
|
(41.3 |
%) |
||||||||||
| Non-controlling interests | (1 |
) |
(37 |
) |
(1 |
) |
(2 |
) |
1,752.1 |
% |
(1 |
) |
(37 |
) |
(0 |
) |
(30 |
) |
21.8 |
% |
||||||||||
| Comprehensive income (loss) attributable to: | ||||||||||||||||||||||||||||||
| Shareholders of the parent | 298 |
|
9,767 |
|
286 |
|
9,387 |
|
4.0 |
% |
298 |
|
9,767 |
|
371 |
|
12,173 |
|
(19.8 |
%) |
||||||||||
| Non-controlling interests | (1 |
) |
(37 |
) |
(0 |
) |
(2 |
) |
1,712.8 |
% |
(1 |
) |
(37 |
) |
(1 |
) |
(30 |
) |
21.9 |
% |
||||||||||
| Earnings per share-basic | 0.021 |
|
0.68 |
|
0.032 |
|
1.06 |
|
0.021 |
|
0.68 |
|
0.035 |
|
1.16 |
|
||||||||||||||
| Earnings per ADS (2) | 0.104 |
|
3.40 |
|
0.162 |
|
5.30 |
|
0.104 |
|
3.40 |
|
0.177 |
|
5.80 |
|
||||||||||||||
| Weighted average number of shares outstanding (in millions) | 12,481 |
|
12,414 |
|
12,481 |
|
12,436 |
|
||||||||||||||||||||||
| Notes: | ||||||||||||||||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2024 exchange rate of NT $32.78 per U.S. Dollar. | ||||||||||||||||||||||||||||||
| (2) 1 ADS equals 5 common shares. | ||||||||||||||||||||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income | ||||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | ||||||||||||||||||
| Except Per Share and Per ADS Data | ||||||||||||||||||
| For the Three-Month Period Ended | For the Twelve-Month Period Ended | |||||||||||||||||
| December 31, 2024 | December 31, 2024 | |||||||||||||||||
| US$ | NT$ | % | US$ | NT$ | % | |||||||||||||
| Operating revenues | 1,842 |
|
60,386 |
|
100.0 |
% |
7,087 |
|
232,303 |
|
100.0 |
% |
||||||
| Operating costs | (1,282 |
) |
(42,043 |
) |
(69.6 |
%) |
(4,779 |
) |
(156,649 |
) |
(67.4 |
%) |
||||||
| Gross profit | 560 |
|
18,343 |
|
30.4 |
% |
2,308 |
|
75,654 |
|
32.6 |
% |
||||||
| Operating expenses | ||||||||||||||||||
| - Sales and marketing expenses | (19 |
) |
(623 |
) |
(1.0 |
%) |
(82 |
) |
(2,701 |
) |
(1.2 |
%) |
||||||
| - General and administrative expenses | (55 |
) |
(1,791 |
) |
(3.0 |
%) |
(218 |
) |
(7,118 |
) |
(3.0 |
%) |
||||||
| - Research and development expenses | (132 |
) |
(4,334 |
) |
(7.2 |
%) |
(476 |
) |
(15,616 |
) |
(6.7 |
%) |
||||||
| - Expected credit impairment gain | 0 |
|
0 |
|
0.0 |
% |
2 |
|
70 |
|
0.0 |
% |
||||||
| Subtotal | (206 |
) |
(6,748 |
) |
(11.2 |
%) |
(774 |
) |
(25,365 |
) |
(10.9 |
%) |
||||||
| Net other operating income and expenses | 11 |
|
362 |
|
0.6 |
% |
41 |
|
1,324 |
|
0.5 |
% |
||||||
| Operating income | 365 |
|
11,957 |
|
19.8 |
% |
1,575 |
|
51,613 |
|
22.2 |
% |
||||||
| Net non-operating income and expenses | (44 |
) |
(1,443 |
) |
(2.4 |
%) |
140 |
|
4,607 |
|
2.0 |
% |
||||||
| Income from continuing operations before income tax | 321 |
|
10,514 |
|
17.4 |
% |
1,715 |
|
56,220 |
|
24.2 |
% |
||||||
| Income tax expense | (63 |
) |
(2,054 |
) |
(3.4 |
%) |
(278 |
) |
(9,114 |
) |
(3.9 |
%) |
||||||
| Net income | 258 |
|
8,460 |
|
14.0 |
% |
1,437 |
|
47,106 |
|
20.3 |
% |
||||||
| Other comprehensive income (loss) | 39 |
|
1,270 |
|
2.1 |
% |
253 |
|
8,301 |
|
3.6 |
% |
||||||
| Total comprehensive income (loss) | 297 |
|
9,730 |
|
16.1 |
% |
1,690 |
|
55,407 |
|
23.9 |
% |
||||||
| Net income attributable to: | ||||||||||||||||||
| Shareholders of the parent | 259 |
|
8,497 |
|
14.1 |
% |
1,440 |
|
47,211 |
|
20.3 |
% |
||||||
| Non-controlling interests | (1 |
) |
(37 |
) |
(0.1 |
%) |
(3 |
) |
(105 |
) |
(0.0 |
%) |
||||||
| Comprehensive income (loss) attributable to: | ||||||||||||||||||
| Shareholders of the parent | 298 |
|
9,767 |
|
16.2 |
% |
1,693 |
|
55,512 |
|
23.9 |
% |
||||||
| Non-controlling interests | (1 |
) |
(37 |
) |
(0.1 |
%) |
(3 |
) |
(105 |
) |
(0.0 |
%) |
||||||
| Earnings per share-basic | 0.021 |
|
0.68 |
|
0.116 |
|
3.80 |
|
||||||||||
| Earnings per ADS (2) | 0.104 |
|
3.40 |
|
0.580 |
|
19.00 |
|
||||||||||
| Weighted average number of shares outstanding (in millions) | 12,481 |
|
12,437 |
|
||||||||||||||
| Notes: | ||||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2024 exchange rate of NT $32.78 per U.S. Dollar. | ||||||||||||||||||
| (2) 1 ADS equals 5 common shares. | ||||||||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | ||||||
| Consolidated Condensed Statement of Cash Flows | ||||||
| For The Twelve-Month Period Ended December 31, 2024 | ||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | ||||||
| US$ | NT$ | |||||
| Cash flows from operating activities : | ||||||
| Net income before tax | 1,715 |
|
56,220 |
|
||
| Depreciation & Amortization | 1,469 |
|
48,168 |
|
||
| Share of profit of associates and joint ventures | (13 |
) |
(411 |
) |
||
| Income tax paid | (304 |
) |
(9,976 |
) |
||
| Changes in working capital & others | (3 |
) |
(129 |
) |
||
| Net cash provided by operating activities | 2,864 |
|
93,872 |
|
||
| Cash flows from investing activities : | ||||||
| Acquisition of property, plant and equipment | (2,701 |
) |
(88,544 |
) |
||
| Acquisition of intangible assets | (85 |
) |
(2,799 |
) |
||
| Others | 164 |
|
5,402 |
|
||
| Net cash used in investing activities | (2,622 |
) |
(85,941 |
) |
||
| Cash flows from financing activities : | ||||||
| Decrease in short-term loans | (153 |
) |
(5,015 |
) |
||
| Redemption of bonds | (259 |
) |
(8,500 |
) |
||
| Proceeds from long-term loans | 1,107 |
|
36,286 |
|
||
| Repayments of long-term loans | (705 |
) |
(23,108 |
) |
||
| Cash dividends | (1,147 |
) |
(37,586 |
) |
||
| Others | (39 |
) |
(1,277 |
) |
||
| Net cash used in financing activities | (1,196 |
) |
(39,200 |
) |
||
| Effect of exchange rate changes on cash and cash equivalents | 113 |
|
3,715 |
|
||
| Net decrease in cash and cash equivalents | (841 |
) |
(27,554 |
) |
||
| Cash and cash equivalents at beginning of period | 4,044 |
|
132,554 |
|
||
| Cash and cash equivalents at end of period | 3,203 |
|
105,000 |
|
||
| Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2024 exchange rate of NT $32.78 per U.S. Dollar. | ||||||
__________________________
1 Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending December 31, 2024, the three-month period ending September 30, 2024, and the equivalent three-month period that ended December 31, 2023. For all 4Q24 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the December 31, 2024 exchange rate of NT$ 32.78 per U.S. Dollar.
2 Revenue in this section represents wafer sales
3 Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
4 Estimated capacity numbers are based on calculated maximum output rather than designed capacity. The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp-up.
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