Juheng reported that UMC, a foundry of wafers, held a shareholders' meeting today (10). UMC stated that it is inevitable for customers to cut orders in the second half of the year. At present, customers cancel more orders than new ones, and in the third quarter, customers make up their production capacity. The situation of the gap is not very clear. It is affected by factors such as the epidemic situation and Sino-US trade frictions.
UMC estimated in April this year that the wafer shipments in the second quarter will increase 1-2% quarterly, benefiting from the change in product mix, coupled with the increase in the proportion of 28 nanometers, the average sales price (denominated in US dollars) It is expected to increase 1-2% quarterly, gross profit margin is about 20%, and capacity utilization rate will continue to increase to 94-96%. Liu Qidong, the chief financial officer of UMC, said that the current performance in the second quarter is in line with financial estimates, with a capacity utilization rate of about 95%, and 8 inches is nearly full.
However, Liu Qidong emphasized again today that the outlook for the second half of the year is unlikely to be seen. Customer order reductions are inevitable. At present, customers cancel orders but new orders are added, but more orders are cancelled than newly added.
Liu Qidong said that driven by the demand for 5G and the Internet of Things in the second quarter, coupled with the demand for home office and epidemic prevention medical products, the demand for 8-inch production capacity has increased, but as the epidemic slows, medical-related orders may decline quickly. At present, customer needs are changing every day. In the second half of the year, affected by the epidemic situation, Sino-US trade friction and other factors, we are very cautious and conservative.
In addition, for the capacity vacated by customers, Liu Qidong said that they will be compensated by orders that could not be scheduled for production in the past, but it is not very clear that customers will fill the capacity gap in the third quarter, and there may be occasions when one or two processes cannot Quick connection is a potential risk.