Taipei, United Microelectronics Corp. (UMC), the secondlargest contract chipmaker in Taiwan, on Tuesday reported betterthanexpected sales for the second quarter of this year.
UMC, trailing Taiwan Semiconductor Manufacturing Co. (TSMC) in terms of sales, outperformed a market estimate on the back of solid global demand for smartphones, Internet connecting devices and displays, market analysts said.
In the AprilJune period, UMC posted NT$36.03 billion (US$1.15 billion) in consolidated sales, up 10.58 percent from a quarter earlier, compared with an earlier market forecast of a 9 percent10 percent increase.
Analysts said UMC benefited from an increase in shipments from its sophisticated 12inch wafer production plants due to strong demand for highend electronics devices in the second quarter.
While UMC did not give a sales forecast for the second quarter, it anticipated that shipments for the threemonth period would grow 6 percent7 percent from a quarter earlier, with the average selling price expected to grow 3 percent sequentially.
In June, however, UMC saw its consolidated sales fall 4.37 percent from a month earlier to NT$11.71 billion. The June figure was also down 12.40 percent from a year earlier.
In the first six months of this year, UMC's consolidated sales stood at NT$68.61 billion, down 10.13 percent from a year earlier.
Looking ahead, UMC said that due to the peak season in the third quarter, its revenue growth momentum is expected to continue.
Meanwhile, Vanguard International Semiconductor Corp. (VIS), a smaller pure foundry operator in Taiwan, reported a 0.16 percent sequential increase it its sales for the second quarter, as its clients conducted inventory adjustments.
Despite this, VIS consolidated sales for the second quarter, totaling NT$6.92 billion, beat the company's earlier estimate ranging between NT$6.4 billion and NT$6.8 billion.
VIS, which has a 28.23 percent stake owned by TSMC, posted NT$2.297 billion in consolidated sales in June, down 1.17 percent from a month earlier. VIS is well known for rolling out chips from its 8inch wafer plants.
TSMC, the world's largest contract chipmaker, is expected to release its June and secondquarter sales Wednesday. Investors at home and abroad have been waiting for TSMC's sales figures.
Source: Focus Taiwan News Channel