UMC profit increases 16-fold
Apr 29, 2004
The contract chipmaker said it expected robust demand for the chips used in mobile phones and other gadgets to continue throughout this yearUnited Microelectronics Corp, the world's No. 2 contract chipmaker, yesterday posted its biggest quarterly earnings in three years, driven by a voracious appetite around the world for chips used in mobile phones and consumer gadgets. During the three months to the end of March, UMC said earnings soared to NT$6.89 billion, or NT$0.45 a share, which is about 16 times the NT$403 million it earned a year ago. The earning growth represents a 2.5-percent expansion quarter-on-quarter."Our first-quarter performance fully reflects the turnaround in the global semiconductor sector," UMC chief executive Jackson Hu said. "The results have exceeded our estimates and surprisingly bucked the industrial downtrend."Bigger rival Taiwan Semiconductor Manufacturing Co (TSMC) on Tuesday beat analysts' expectations, reporting first-quarter earnings quadrupling to NT$18.79 billion, or NT$0.93 a share, from a year ago, on revenue of NT$57.51 billion.