United Microelectronics Corporation (NEW)

Welcome everyone to UMC's 2022 first quarter earnings conference call. All lines have been placed on mute to prevent background noise. After the presentation, there will be a question and answer session. Please follow the instructions given at that time if you would like to ask the question. And for your information, this conference call is now being broadcast live over the internet. Webcast replay will be available within two hours after the conference is finished. 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.

Thank you, and welcome to UMC's conference call for the first quarter of 2022. I am joined by Mr. Jason Wong, the President of UMC. and Mr. Chi-Dong Du, the CFO of UMC. In a moment, we will hear our CFO present the first quarter financial result, followed by our President's key message to address UMC's focus on second quarter 2022 guidance. Once our President and CFO complete their remarks, there will be a Q&A session. UMC's quarterly financial reports are available at our website, www.umc.com. under the investor 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. Chih-Tung Liu, to discuss UMC's first quarter 2022 financial result. Thank you, Michael.

I'd like to go through the Q1-22 investor conference presentation material, which can be downloaded or viewed in real time from our website. Starting on page four, the first quarter of 2022, consolidated revenue was $63.42 billion, with a gross margin at 43.4%. The net income attributable to the stockholder of the parent was $19.81 billion, And the earnings per ordinary share were 1.61 NT dollars. In terms of capacity utilization rate, it remained at 100 percent up. And for the waste achievement, it's 2.5 million A-inch equivalent in Q1 of 2022. For income statement on a quarterly sequential comparison basis, Revenue went up by 7.3%, mainly driven by a better ASB. And gross margin rate is 43.4%, compared to 39.1% in the previous quarter. And operating income, as a result, has reached 35.2% for operating income margin rate, or a number of $22.3 billion. The net income is about $20 billion, compared to $15 billion in the previous quarter, which is about 25 percent quarter-over-quarter growth. And the EPS is 1.61 NT per share. In terms of year-over-year comparison, revenue grew up by 35 percent year-over-year, and operating margins grew up by nearly two times. to 22.3 billion NT. And EPS also almost doubled compared to the same period of last year. In terms of balance sheet revenue, cash remains strong at 172 billion, and the total equity is about 300 billion NT dollars. And as I mentioned, the Q1 catalyst, one of that is the stronger or better ASP, which continue on the rise. In terms of revenue breakdown, we see a little change on a sequential basis when U.S. represents 22% of our total revenue and Asia is 64%. And IDN and cyberless ratio did not change much. Currently, IDM is about 13% of our revenue, and Fabulous is still remaining 87%. In terms of segment breakdown, communications still remain our largest segment of 45% revenue, and the others, which include auto and industrial, is about 12%. And computer and consumer are 17% and 26% respectively. And revenue from different geometry, the 14 nanometer and below revenue remains steady around 38 percent, almost identical to the previous quarter. And we continue to see some capacity increase. For quarter two of 2022, we are seeing 10,000 wafer per month additional capacity, mainly in 20 nanometers coming from our So that will lead to about 4 to 5% of capacity increase in the second quarter of 2022. After our announcement for the Singapore P3 expansion, our revenue, our CAPEX budget has now increased to 3.6 billion US dollars for 2022. The majority of, which is 90 percent of that, is 12-inch related. The above is the summary of UMC's results for Q1 2022. More details are available in the report, which has been posted on our website. I will now turn the call over to personnel of UMC, Mr. Jason Wong.