United Microelectronics (UMC) Q1 2023 Earnings Call Transcript

For the period ending December 31, 2023

April 26, 2023 5:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Welcome, everyone, to UMC's 2023 First Quarter Earnings Conference Call. [Operator Instructions]. And for your information, this conference call is now being broadcasted live over the Internet. Webcast replay will be available within 2 hours after the conference is finished. And please visit our website, www.umc.com, under the Investor Relations, Investors, Events section. And now I would like to introduce Mr. Michael Lin, Head of Investor Relations at UMC. Mr. Lin, please begin.

Michael Lin

Thank you, and welcome to UMC's conference call for the first quarter of 2023. I'm joined by Mr. Jason Wang, the President of UMC; and Mr. Chi-Tung Liu, the CFO of UMC. In a moment, we will hear our CFO present the first quarter financial results followed by our patents key message to address UMC's focus and second quarter 2023 guidance. Once our President and CFO complete their remarks, there will be a Q&A section. UMC's quarterly financial reports are available at our website, www.umc.com, under the Investors Financial section.

During this conference, we may make forward-looking statements. based on management's current expectations and beliefs. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially, including the risk that may be beyond the company's control. For a more detailed description of these risks and uncertainties, please refer to our recent and subsequent filings with the SEC and the ROC security authorities. During this conference, you may view our financial presentation material, which is being broadcast live through the Internet.

Now I would like to introduce UMC's CFO, Mr. Chi-Tung Liu, to discuss UMC's first quarter 2023 financial results.

Chi-Tung Liu

Thank you, Michael. I would like to go through the first quarter 2023 investor conference presentation material, which can be downloaded or view in real time from our website.

Starting on Page 4, the first quarter of 2023. Consolidated revenue was TWD 54.2 billion, with gross margin at 35.5%. The net income attributed to the stockholder of the parent was TWD 16.2 billion, and earnings per ordinary shares were 1.31. Wafer shipments in this quarter come at 126,000 equivalent wafers which was a decline of 17.5% quarter-over-quarter, which also fall in the better end of our previous guidance of 17% to 19% decline for the first quarter. Utilization in first quarter is as we guided around 70%.