United Microelectronics Corp (UMC) reported a decline in Q4 FY23 revenue by 19% YoY to $1.79 billion, surpassing the consensus of $1.70 billion. Earnings per ADS were $0.17, beating the consensus of $0.15. The company saw growth in 22 and 28nm wafer revenue, which now represents 36% of total wafer sales. However, gross margin fell by 1,050 basis points to 32.4% due to lower utilization and weak demand. Co-President Jason Wang is optimistic about a mild increase in wafer demand for Q1 2024, despite cautious inventory management by customers. UMC expects Q1 wafer shipments to rise by 2%-3%, ASP in USD to decrease by 5%, and capacity utilization in the low 60% range. The company plans a 2024 capex of $3.3 billion. UMC shares dropped by 1.28% to $7.73.