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taiwan's umc gives bullish outlook on strong chip demand

Image taiwan's umc gives bullish outlook on strong chip demand

umc (2303.tw), whose customers include qualcomm inc (qcom.o) and germany's infineon (ifxgn.de), has like other chipmakers benefited from a international scarcity of semiconductors that have stuffed its order books.

co-president jason wang told an profits name that this yr it remained a venture to fulfill call for.

even as the lockdown in shanghai and its environs to control covid-19 had had "a few effect" on call for, average sturdy call for for automobile chips, commercial servers and networking segments had offset softness in smartphones, observe books and personal computers, he introduced.

"for the overall 2022, it nevertheless remains a venture for us to satisfy the aggregate demand from our clients," wang stated, as umc reported a 34.7% on-year soar in first-area sales to t$sixty three.42 billion ($2.sixteen billion).

"we're nonetheless critically undersupplied to our clients."

gross profit rose 19% region-on-sector and one hundred twenty% 12 months-on-12 months to t$27.5 billion. its gross margin changed into forty three.four%, and running margin 35.2%.

larger competitor tsmc (2330.tw) has forecast an as much as 37% soar in modern-day-region sales and stated it expects chip ability to stay very tight this year, amid a worldwide crunch that has saved order books complete and allowed chipmakers to charge premium costs. read extra

the shortage has compelled a few automakers and electronics manufacturers to reduce manufacturing.

umc stated in 2021 it might spend t$a hundred billion ($three.40 billion) over the next 3 years to amplify capability and could guarantee elements and prices to its customers as part of the plan. read greater

wang stated there had been issues inside the supply chain, which includes shortages of components and labour, and system delays, which means some potential expansion may not come on line as scheduled.

however, searching beforehand to next yr, he stated the enterprise was "cushty approximately our 2023 irrespective of the deliver dynamics".

stocks of umc have fallen about 32% so far this yr, giving the corporation a marketplace cost of $18.9 billion. the stock closed down 2.95% on wednesday, in comparison with a 2.1% drop for the benchmark index (.twii).

($1 = 29.4140 taiwan greenbacks)