The price of silicon wafers has continued to rise, resulting in increased costs. UMC has gradually transferred some of its cost increase to customers. UMC stated that since the start of this year, 8-inch plant capacity has been fully loaded, and prices have not been followed up in the first half of the year, but with 8-inch silicon Wafer prices escalated quarter by quarter, and UMC will raise the price of 8-inch wafer foundry at one time. At the same time, UMC will expand Suzhou and its fleet by about 10,000 8-inch monthly production capacity, the fastest at the end of the year. Production.
UMC Chief Financial Officer Liu Qidong pointed out that the market conditions in the second quarter were in line with expectations, and the exchange rate of the Taiwan dollar was depreciated, which should be beneficial to the operating performance. At present, UMC 8-inch plant and mature process orders are fully loaded, and internal planning and shipyard monthly production capacity have been expanded. 10,000 new production capacity is expected to be released from the end of this year to the beginning of next year.
Liu Qidong also stated that this year's environment is very good. It is estimated that the global foundry industry is expected to grow at a double-digit percentage point; UMC’s operating outlook this year is optimistic, but internally it is seeking profit-oriented and will strengthen cash flow. It is expected that this year Revenue growth will be lower than the average level in the industry.
In addition, UMC has not pursued other foundries on advanced processes, but has already completed R&D and put into mass production at 14nm. It is reported that UMC's 14nm production line has entered the mining market, following orders for cryptocurrency mining ASIC chips. Until the third quarter is fully loaded. UMC's 14-nanometer production process currently has a monthly production capacity of about 3,000 units. Under the strong demand for mining mining, the third quarter will remain fully loaded.
Regarding UMC's Xiamen Lianxin operations, UMC stated that the 12-inch Xiamen plant Lianxin, which is a joint venture with the Xiamen municipal government, has been mass-produced at the end of last year. Since the whole is still in the initial stage of its layout, it will continue to expand production and strive to increase revenue. 4. It is expected that balance of profit and loss will not be achieved this year.
Liu Qidong pointed out that Lianxin entered volume production at the end of last year and currently has a monthly production capacity of 17,000 pieces, and it is expected to reach the first-phase target of 25,000 pieces at the end of the year. Although this year still cannot achieve a balance of profit and loss, it will increase revenue, customer level, and Technology development is expected to progress, and will continue to develop new technologies.
Liu Qidong also stated that the core foundry industry of Lianxin is a capital-intensive industry and the cost of equipment is expensive. Therefore, it will continue to focus on expanding its revenue in the short-term, so that it will be able to make up for the cost.