The following is a summary of the United Microelectronics Corporation (UMC) Q4 2024 Earnings Conference Call Transcript:

Financial Performance:

• United Microelectronics Corporation reported an revenue for Q3 2024 of NT$50.5 billion and net income of NT$14.5 billion. Earnings per share stood at NT$1.16.

• Gross margins were reported at 33.8% for Q3, with a sequential decline from 35.2% in the previous quarter due to increased depreciation.

• Year-to-date revenue grew 2.6% to NT$171.9 billion, with a cumulative net income of NT$38.64 billion.

• Q3 operating revenue increased by 6.5% to NT$60.5 billion and ASPs remained flat.

Business Progress:

• UMC experienced a notable 7.8% sequential growth in wafer shipments due to strong demand for 22 and 28 nanometer products.

• The company continues to invest in technology development intensively, supporting customers with next-generation products.

• Expansion projects are progressing, including the completion of a new fab expansion in Singapore and an ongoing collaboration with Intel.

• Delivery of 22 nanometer display driver solutions as an industrial first.

• The strategic focus remains on strengthening technology differentiation to maintain competitiveness.

Opportunities:

• UMC's 22 to 28 nanometer offerings reached a record high in revenue share, illustrating successful execution of product strategy.

• The ongoing fab expansion in Singapore and collaboration with Intel are likely to enhance UMC's manufacturing capabilities and technological offerings, supporting long-term growth.

• Growth in wafer shipments expected post-inventory normalization in the automotive and industrial segments into the latter half of 2025.

Risks:

• Anticipated lower gross margins in Q4 due to reduced capacity utilization and challenges related to NT dollar appreciation and escalating depreciation costs from capacity expansions.

• Industry-wide oversupply could exert downward pressure on utilization rates and pricing, impacting financial performance.

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