UMC reports Q4-2009 results

TAIPEI, TAIWAN: United Microelectronics Corp., a leading global semiconductor foundry, announced its unconsolidated operating results for the Q4 of 2009.

Revenue increased 1.2percent QoQ to NT$27.75 billion, from NT$27.41 billion in 3Q09, and increased approximately 50 percent YoY, from NT$18.54 billion in 4Q08. Gross margin was 25.9 percent, operating margin was 13.5 percent, net income was NT$4.40 billion, and earnings per ordinary share were NT$0.35.

While capital expenditures invested during the quarter were NT$10.19 billion, cash balance still increased to NT$52.79 billion due to a rise in net income in the second half of the year to NT$10.49 billion. Since the full year of 2009 remained profitable, with earnings per share of NT$0.31, the Company plans to propose the distribution of dividends to shareholders and bonuses to employees at the next board meeting.

Dr. Shih-Wei Sun, CEO of UMC, said: "In 2009, UMC smoothly weathered the most severe economic recession in recent history. Moreover, we were one of the first foundries to have recovered from the downturn and posted the lowest decline in revenue resulting from the financial crisis compared to other foundries.

"Looking to 2010, UMC shares the industry's positive outlook on growth for the foundry sector. For 2010, UMC plans to increase CAPEX to US$1.2-1.5 billion to accommodate the robust demand we are seeing from customers for advanced technologies, to attain a reasonable balance between market share and ROE, and to solidify UMC's stable, long-term growth."

Dr. Sun emphasized: "Capital expenditure for 2010 will mainly be used to build capacity for advanced processes. We plan to boost 45/40nm process capacity and continue to introduce 28nm R&D and pilot production equipment at Fab12A in Tainan, as well as greatly expand 65/55nm process capacity at Fab12i in Singapore.

"In addition, we plan to accelerate the readiness timeframe of Fab12A's phase 3 cleanroom related facilities and equipment installation to meet demand for advanced technology capacity and provide for a more flexible expansion plan. At the same time, we will pay close attention to the pace of the continuing economic recovery and the successive adjustments of US and China's monetary policies. UMC will continue to diligently monitor economic conditions over the next several quarters and react prudently in accordance."

Dr. Sun continued: "Following UMC's 'Customer-Driven Foundry Solutions' approach over the past year, we have engaged new customers while further enhancing our relationships with existing customers, and strengthened our ability to provide the best wafer foundry solutions. Percentage of revenue from advanced and specialty processes has also increased with each quarter.

"In terms of 40nm, UMC's independently developed high-performance 40nm logic process has not only helped customers to beat the tape-out to production duration of the 65nm generation by a quarter, but has also achieved stable and predictable yields. This success has demonstrated that close cooperation between UMC and its customers for the 40nm process can accelerate time-to- volume, satisfy customer demands for advanced processes, and achieve win-win results.

"UMC will continue to expand its global presence and proceed with its overseas acquisitions; when finalized, this diversification of manufacturing locations will help customers mitigate geographic risk, increase economies of scale, and create synergies for the Company's overall operational and financial performance."