News from UMC:
UMC expects Q2 foundry sales to fall 30%, but projects rise in Q3
Semiconductor Business News
(04/30/01 08:52 a.m. EST)
TAIPEI, Taiwan --Silicon foundry supplier United Microelectronics Corp. here today announced a 25.9%
sequential drop in revenues during the first quarter of 2001, and it projected net sales to drop another 30% in the
current quarter from Q1 as it struggles with weak market conditions.
UMC also said it is now projecting third-quarter foundry revenues to grow in the third quarter from Q2, although
no details were issued about the amount of increased expected in the second half of this year. The world's second
largest pure-play silicon foundry company said it is holding steady with planned capital spending at $1.5 billion in
2001, the same as its fourth-quarter guidance.
"The first quarter results reflected the weakening economic environment as well as the abrupt end market
inventory correction," noted John Hsuan, chairman of UMC. He added that UMC continues to emphasize
investments in 0.13-micron and 300-mm wafer processing technologies during the current market slump.
A majority of UMC's capital spending will go to 300-mm fabs and advanced copper-interconnect IC processes,
according to the company. UMC said it continues to expect to have a total "managed capacity" of 3.32 million
eight-inch equivalent wafers by the end of the year, a 28% increase from 2.59 million in 2000.
For the first quarter, UMC's net sales were NT$23.59 billion ($718 million), a decline of 25.9% from NT$31.85
billion ($970 million) in the fourth quarter of 2000, but a 22.2% increase from NT$19.31 billion ($588 million) in
Q1 last year. UMC's net income declined 13.1% to NT$6.74 billion ($197 million) in the first quarter of 2001
from $NT$7.44 billion ($227 million) in Q1 of 2000. |
