UMC reports Q2 EPS 17c, consensus 14c

Reports Q2 revenue $1.75B, consensus $1.76B. Jason Wang, co-president of UMC, said, “In the second quarter, wafer shipments increased 2.6% QoQ and fab utilization rate improved to 68% as we saw notable demand momentum in the consumer segment. Contribution from our 22/28nm business rose sequentially on healthy demand for WiFi and digital TV applications. Together with a favorable exchange rate and improved product mix, second-quarter gross margin was better than what was previously guided. During the quarter, we announced technology updates including a 3D IC solution to stack RFSOI wafers, which is the first of its kind in the industry, and a 22nm embedded high voltage platform, currently the most advanced display driver foundry solution in the market. They reflect UMC’s commitment to building on our leadership across a number of specialty technologies that are crucial for the development of AI, 5G, and automotive.”