United Microelectronics Faces Sales Slump: December Sees 18.94% Drop
Portfolio Pulse from Nabaparna Bhattacharya
United Microelectronics Corporation (NYSE:UMC) reported a significant sales decline, with December sales dropping 18.94% Y/Y and full-year sales down 20.15%. December revenues also fell 9.6% from November. Despite this, UMC is continuing with its W2W 3D IC project and maintains a 2023 capex of $3.0 billion. UMC shares closed higher by 1.12% to $8.130 on Thursday.
January 05, 2024 | 2:18 pm
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United Microelectronics Corporation reported a significant drop in sales for December and the full year, but is continuing its W2W 3D IC project and maintains a $3.0 billion capex for 2023.
The reported sales slump for UMC is a negative indicator that could lead to a short-term negative impact on the stock price. However, the company's ongoing project and capex commitment may provide some reassurance to investors. The stock's rise despite the sales drop suggests that the negative news may have already been priced in, or investors are focusing on the company's long-term plans.
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