UMC doubles 4Q profit, hikes 2006 capex

February 15, 2006 – Taiwan foundry United Microelectronics Corp. (UMC) said 4Q05 net profit reached roughly $93 million (a 40% sequential increase), on 16.5% better sales of $837 million.

The capex budget for 2006 has been set at $1.0 billion, up from the $700 million spent in 2005.

CEO and new chairman Jackson Hu stated that, following a difficult year, UMC “will reinvent itself in the spirit of a startup company,” focusing on among other things “solid execution” and “a low-profile attitude.”

For 1Q05 UMC projects a breakeven operating profit, with capacity utilization rates sliding to 75% from 86% in 4Q, a sequential 7%-8% decline in wafer shipments, and 1%-1% dip in wafer ASPs.


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