UMC expects Q4 wafer shipments to fall by 3%

Oct. 29, 2009 (China Knowledge) - United Microelectronics Corp, the world's second-largest contract chip maker, expects that its wafer shipments in the fourth quarter will decrease by up to 3% from the previous quarter, CEO Shih-Wei Sun said yesterday.

Sun said that seasonal adjustments and weaker demand caused by appreciation of the New Taiwan dollar are the firm's major reasons for forecasting a drop.

UMC Wednesday posted a net profit of NT$6.09 billion in the third quarter, compared with a net loss of NT$1.41 billion a year earlier. Revenue rose 11% to NT$27.41 billion from NT$24.75 billion in the third quarter of 2008.

The company said it sold 1.02 million eight-inch equivalent wafers in the three months ended Sep. 30, compared with 898,000 in the second quarter and 883,000 a year ago.

UMC expects continued profitability from its foundry business and will likely be profitable overall for the year, said the CEO.