UMC: Q4 wafer shipments are expected to decrease by 10% month-on-month, and next year will be a challenging year.

CTOnews.com, October 28, according to the Taiwan Economic Daily, at the legal conference held on October 26, wafer foundry UMC predicted that its operations would not be affected by semiconductor inventory adjustment in the fourth quarter of 2022, wafer shipments would be reduced by 10% month-on-month, the growth rate would drop to 90%, the average sales price (ASP) would be flat, the gross profit margin would be slightly reduced to 40%, 43%, and the annual capital expenditure would be revised down to $3 billion.

Wang Shi, general manager of UMC, said frankly that due to high inflation and recent market turmoil, wafer foundry output will decline, and next year will be a challenging year for UMC.

In addition, Wang Shi believes that the gradual adoption of OLED panels in smartphones and other terminal devices will continue to promote 22ip 28nm growth. In addition, the growth trend of automotive chip business is also seen in this quarter, and we will continue to seek more cooperation opportunities with existing and potential automotive chip customers to maintain future growth momentum.

CTOnews.com learned that financial data showed that UMC had a revenue of 25.219 billion New Taiwan dollars (about 5.674 billion yuan) in September, a decrease of 0.5% from the previous month and an increase of 34.5% over the same period last year, the second highest in history and the highest in the same period. In the third quarter, UMC's total revenue reached 75.392 billion New Taiwan dollars (about 16.963 billion yuan), an increase of 4.63% from the previous month and 34.85% over the same period last year, setting a record for the 12th consecutive quarter.