Taiwan-based United Microelectronics Corp (NYSE:UMC) reported a third-quarter fiscal 2024 revenue growth of 6% year-on-year to $1.91 billion (NT$60.49 billion).
The company beat the analyst consensus estimate of $1.88 billion.
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Q4 Outlook: The company is seeing demand stabilize across end markets and a clear downward trend in inventory levels.
“Looking ahead, we have a number of exciting technology and collaboration projects in the pipeline as we continue to align closely with our customers' product roadmaps,” Jason Wang, co-president of UMC said. “In addition, as we hear consistently from customers, UMC's diversified manufacturing footprint is also very important in supporting their long-term strategies. Our new fab expansion in Singapore is nearing completion while our collaboration with Intel remains on track."
UMC expects fourth-quarter wafer shipments and ASP in USD to stay flat quarter-over-quarter. It also expects capacity utilization to be in the high-60% range. UMC expects a 2024 capex of $3.0 billion (prior $3.3 billion).
United Microelectronics stock lost 11% year-to-date. At least two Wall Street firms including Morgan Stanley and Goldman Sachs downgraded rating on the stock in October.
Republican candidate and Ex-President Donald Trump criticized Taiwan for allegedly harming the U.S. chip industry during an appearance on the Joe Rogan podcast. He also took aim at the CHIPS Act, promising tariffs on Taiwanese chips if he wins the presidency. Previously, he questioned the U.S. defense commitment to Taiwan, noting the lack of a formal treaty as seen with South Korea and Japan.
Price Action: UMC stock is up 1.08% at $7.49 premarket at the last check Wednesday.
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