UMC Reports Fourth Quarter 2014 Results

Jan 28, 2015 - additional manufacturing solutions to fulfill new product specs, strengthening our position in the .... 4Q14 revenue from IDM customers.
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Contacts: Bowen Huang / David Wong UMC, Investor Relations + 886-2-2658-9168, ext. 16900 [email protected] [email protected]

UMC Reports Fourth Quarter 2014 Results Full-year 2014 foundry revenue up 10%, operating profit increased 74% YoY Fourth Quarter 2014 Overview1:  Revenue: NT$37.24 billion (US$1.18 billion)  Gross margin: 27.4%; operating margin: 12.2%  Foundry revenue from advanced nodes: 7% from 28nm, 21% from 40nm  Foundry capacity utilization rate: 93%  Net income attributable to the stockholders of the parent: NT$4.56 billion (US$144 million)  Earnings per share: NT$0.36; earnings per ADS: US$0.057 Taipei, Taiwan, ROC – January 28, 2015 – 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 2014. Fourth quarter consolidated revenue was NT$37.24 billion, a 5.7% quarterly increase from NT$35.21 billion in 3Q14 and a 21.2% annual increase from NT$30.72 billion in 4Q13. 4Q14 consolidated gross margin was 27.4%, with operating margin at 12.2%. Net income attributable to the stockholders of the parent was NT$4.56 billion, with earnings per ordinary share of NT$0.36. For 2014, full year revenue was NT$140.01 billion, with NT$10.08 billion in operating income, NT$12.14 billion net income attributable to the stockholders of the parent and NT$0.97 earnings per share. Mr. Po-Wen Yen, CEO of UMC, said “In the fourth quarter, foundry revenue grew 3.7% sequentially to NT$34.74 billion. This figure includes a one-time 40nm licensing fee from Fujitsu, lifting gross and operating margins to 30.2% and 14.6%, respectively. Overall capacity utilization rate remained at 93%, bringing shipments to 1.43 million 8-inch equivalent wafers. Our 28nm 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 Dec 31, 2014, the three-month period ending Sep 30, 2014, and the equivalent three-month period that ended Dec 31, 2013. For all 4Q14 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Dec 31, 2014 exchange rate of NT$ 31.62 per U.S. Dollar. Page 1 of 13

UMC 4Q14

technologies represented 7% of our foundry revenue in 4Q14. Shipments from our 28nm gate-last, High-K Metal Gate process exceeded that of 28nm poly-SiON wafers. Excluding the Fujitsu 40nm licensing fee, UMC’s 2014 foundry operating profit grew 74% from the previous year. This rise in profitability was mainly driven by double-digit percentage growth in wafer shipments and partly due to the rapid production ramp of 28nm, which accounted for 3% of total 2014 revenue. Our collaborative technology efforts with our partners will enable UMC to deliver additional manufacturing solutions to fulfill new product specs, strengthening our position in the IC supply chain to take advantage of the continued momentum in market demand.” CEO Yen continued, “The Taiwan government authorities recently approved UMC’s application to invest in a 12” joint venture fab in Xiamen, China. This investment will create opportunities for UMC to benefit from China’s enormous chip requirements by bringing us closer to the Chinese semiconductor supply chain. The cooperation highlights UMC’s differentiated approach of global expansion, proven through Singapore’s Fab12i and SuZhou’s Fab8N successfully achieving economy of scale while mitigating customer risks via geographic diversification. While we expand production sites worldwide, we are also focusing on continuous organic growth by deploying additional capacity at our Tainan site. As such, we will budget 2015 CAPEX for approximately US$1.8 billion. Our 2015 CAPEX illustrates our strong commitment to meet customers’ requirements and gain additional marke