United Microelectronics Corporation (UMC) is up 5.53% in the pre-market trading session at the price of $12.40 despite any recent news.
UMC Published July 2021 Sales Report
UMC is a leading global semiconductor foundry. It provides high-quality IC production to serve the electronics industry while focusing on both logic and specialty technologies. On 5th August 2021, UMC reported unaudited net sales for July 2021. Total revenues for July 2021 were NT$18,366,122k. For July of 2020, the total revenue was NT$15,494,823k. It represents an increase of 18.53% year over year. From Jan to July 2021, total revenues were NT$116,370,875k. The revenue of NT$102,148,930k was reported, from Jan to July of 2020. It represents a year-over-year increase of 13.92%.
Second Quarter 2021 Financial Results
On 28th July 2021, UMC published its consolidated operating results for the second quarter of 2021. UMC reported consolidated revenue of NT$50.91 billion for the second quarter of 2021. It represents an increase of 8.1% from NT$47.10 billion in the first quarter of 2021. Second-quarter 2021 revenue was up 14.7% year over year from NT$44.39 billion in the same quarter the previous year. The consolidated gross margin for the second quarter of 2021 was 31.3%. Net income attributable to the shareholders was NT$11.94 billion.
Operating revenues in the second quarter of 2021 increased 8.1% to NT$50.91 billion. It resulted from slightly higher wafer shipment and the enhancement in the blended product mix. UMC reported a 27.3% increase in gross profit to NT$15.91 billion, or 31.3% of revenue. Operating expenses grew 4.5% to NT$6.20 billion. Net income attributable to shareholders increased to NT$11.94 billion. UMC reported earnings per ordinary share of NT$0.98 for the second quarter of 2021. Earnings per ADS was US$0.176 during this period.
Co-president of UMC, Jason Wang, remarked that the strong demand boosted by 5G adoption and digital transformation underpinned their performance in the second quarter of 2021. Their manufacturing facilities surpassed 100% utilization while overall wafer shipments increased 3.0% to 2.44 million. Revenue from 28nm technologies continued to rise sequentially, driven by 4G/5G smartphones, Solid State Drive, and Digital TV applications. They continued their product optimization and cost reduction efforts, lifting their gross margin. They anticipate the strength of structural demand to sustain and support the continuous improvement of blended ASP. They continue to take further steps to enhance their corporate governance and lead sustainability efforts in the industry, he added.
