United Microelectronics Corp Expects Q1 Wafer Shipments to Increase by 2%-3% YoY, ASP Decline of 5% YoY, Low-60% Capacity Utilization
Portfolio Pulse from Benzinga Newsdesk
United Microelectronics Corp (UMC) forecasts a 2%-3% increase in Q1 wafer shipments year-over-year, with a 5% decline in average selling price (ASP) and a gross profit margin of around 30%. The company anticipates a low-60% capacity utilization and plans a CAPEX of $3.3 billion for 2024.
January 31, 2024 | 8:45 am
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NEUTRAL IMPACT
UMC anticipates higher Q1 wafer shipments but lower ASP, maintaining a gross profit margin of 30%, with a significant CAPEX investment for 2024.
The increase in wafer shipments indicates growth, but the decline in ASP could pressure revenues. The gross margin remains stable, suggesting cost management efficiency. The large CAPEX indicates investment in future growth but may concern investors about short-term expenses. Overall, the news presents a balanced outlook, which is likely to have a neutral impact on the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100