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United Microelectronics (NYSE:UMC) Q4 operating revenue grew +14.8% to Y/Y to $2.21B.
Earnings per ADS increased +18.4% Y/Y to $0.251. Both top and bottom line missed estimates.
However, consolidated revenue declined -10% Q/Q to NT$67.84B due to inventory correction within the semi industry which lowered wafer shipments, the company added.
“For the full year 2022, UMC’s revenue hit a record high of NT$278.7 billion while operating income exceeded NT$100 billion. Gross margin reached 45%, driven by a more favorable foreign exchange rate, expanding 22/28nm portfolio, and newly added capacity,” said UMC Co-President Jason Wang.
The company noted that revenue from 22/28nm grew 56% compared to 2021, as contribution from 28nm technologies and below accounted for 24% in 2022.
Full-year 2022 automotive revenue grew 82% Y/Y.
Outlook:
“Given the soft global economic outlook for 2023, we expect the current challenging environment to persist through the first quarter as customers’ days of inventory are still higher than normal while order visibility remains low. To manage this period of weakness, the Company is implementing strict cost control measures and deferring certain capital expenditures where possible,” Wang added.
Q1 2023 Outlook Q/Q: The company said Wafer Shipments will decrease in the high teens % range and Gross Profit Margin will be in the mid-30% range.
Image and article originally from seekingalpha.com. Read the original article here.