Some comments about/from UMC - ASP's going up.
To me this could mean leading edge (high margin) continues to be fully utilized - opposite to what WS analysts were predicting.
UMC expects wafer shipments for the fourth quarter of 2010 to decline in the mid single-digit percentage range sequentially as a result of seasonality, but ASPs are likely to rise by a mild single-digit percentage rate on quarter. Utilization rate for the fourth quarter will be in the low- to mid-90% range.
To me that's outstanding - what are those analysts looking for? 110% utilization in Q4 while capacity was added?
UMC 3Q10 sales up 19% on year, net profits soar 43%
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Press release; Jessie Shen, DIGITIMES [Wednesday 27 October 2010]
United Microelectronics Corporation (UMC) has reported net profits of NT$8.72 billion (US$283 million) on revenues of NT$32.65 billion for the third quarter of 2010, showing on-year growth of 19.1% in sales and 43.2% in profitability. The earnings translated into an EPS of NT$0.70 for the third quarter.
"UMC's revenue from the first three quarters of this year has already surpassed 2009's full-year revenue. Total earnings per ordinary share for the three quarters were NT$1.40, with full-year earnings for 2010 expected to grow significantly from last year," said company CEO Shih-Wei Sun.
UMC indicated that its utilization rate remained full in the third quarter. It shipped 1.202 million 8-inch equivalent wafers in the quarter, compared to the 1.156 million units shipped in the second quarter.
UMC saw sales from 65nm and more advanced processes account for 30% of its total sales in the third quarter, with 40nm growing to 4.2% of the revenues, the company said. The proportion is expected to climb further to 35% in the fourth quarter, the company added.
UMC expects wafer shipments for the fourth quarter of 2010 to decline in the mid single-digit percentage range sequentially as a result of seasonality, but ASPs are likely to rise by a mild single-digit percentage rate on quarter. Utilization rate for the fourth quarter will be in the low- to mid-90% range.
In addition, UMC revealed that its year-to-date capex totaled US$1.2 billion, which made up almost 67% of its full-year target.
"UMC's US$1.8 billion capex this year shall significantly boost advanced capacity expansion and 28nm and 20nm R&D, enabling the company to greatly enhance its competitiveness," Sun continued. "Looking ahead to the fourth quarter, advanced process capacity will remain fully utilized. Product mix optimization will push blended ASP even higher."
Categories: Bits + chips IC manufacturing
Tags: 3Q10 sales UMC
Companies: United Microelectronics Corporation |
