According to a comprehensive report on micro-grid, UMC announced today at the shareholders’ meeting that its 8-inch plant is full of orders, and due to the significant increase in silicon wafer prices, resulting in increased costs, the company has increased the price of its 8 OEMs since June. The core plant has entered volume production since the end of last year, with a monthly production capacity of 17,000 pieces, and it is expected to reach the first stage target of 25,000 pieces at the end of the year.
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, the 8-lan plant and mature process orders of UMC are full, and there is no follow-up price increase in the first half of the year. The price of 8-inch silicon wafers has increased quarter by quarter. UMC will raise the price of 8-inch wafer foundry at one time. Currently, there are plans to increase the monthly production capacity of shipyards by 10,000 pieces. The new production capacity is expected to increase this year. From the end to the beginning of next year.
He said that this year's environment is very good. It is estimated that the global foundry industry can expect to grow at a double digit percentage level; 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's revenue The growth rate will be lower than the average level in the industry.
In addition, although UMC has not pursued other foundries on advanced processes, it has completed R&D and put into mass production at 14nm. It is reported that UMC’s 14nm production line has entered the mining market and it has undertaken 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 Lianxing operations, UMC stated that 12-inch Xiamen factory 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 deployment, it will continue to expand production and strive to increase revenue. Scale. 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 units. It is expected to reach the first-phase target of 25,000 units at the end of the year. Although it is still unable to achieve profit or loss this year, it is at the revenue, customer level. Both upgrading and technological development are expected to progress and new technologies will continue to be developed.
Liu Qidong stated that the foundry's wafer foundry is a capital-intensive industry and its equipment costs are high. Therefore, it will continue to focus on expanding its revenue in the short-term and will only have the opportunity to make up for the cost.