United Microelectronics (UMC) has reported a 0.8 percent year-on-year rise in first-quarter revenue to T$54.63 billion ($1.68 billion), down 0.6 percent from the previous quarter.
UMC said revenue contribution from 40nm and below technologies represented 47 percent of wafer revenue.
The Taiwan-based chipmaker has generated 63 percent of its sales revenue from Asia Pacific, 25 percent from North America, 8 percent from Europe and 4 percent from Japan in Q1 2024.
UMC has generated 48 percent of its total sales from Communications, 23 percent from Consumer, 13 percent from Computer and 16 percent from Others. UMC’s clients include US-based Qualcomm and Germany-based Infineon.
UMC said on Wednesday it expected a rise in wafer shipments in the second quarter as inventory levels for computing, consumer and communications segments improved, but warned of muted auto and industrial demand, Reuters news report said.
UMC’s Capex for the first-quarter was $924 million. UMC is targeting to spend $3.3 billion towards its capital expenditure in 2024 as compared with $3 billion in 2023.
UMC, in a first quarter earnings release, said the inventory situation for the current quarter for the computing, consumer and communications segments were improving to a healthier level, which would bring a rise in wafer shipments.
UMC said demand remained muted for the automotive and industrial segments as the pace of inventory digestion had been slower than anticipated.
“While we expect some lingering impact from macro uncertainties and cost headwinds in the near term, we will continue to invest in technology, capacity and people to ensure UMC is ready to capture the next phase of growth driven by 5G and AI innovations,” UMC Co-president Jason Wang said in a statement.
