UMC Faces Sluggish Demand in First Half and Eyes Third Quarter Recovery

United Microelectronics Corporation announced that the demand for semiconductors in the first half of 2023 fell below expectations, and a strong recovery in the third quarter is not anticipated.

The company acknowledged that demand for mobile phones and personal computers remains weak, while demand from automotive and industrial sectors has shown resilience. However, UMC foresees a peak in demand from these markets in the third quarter, as customer inventories reach high levels

UMC has made the decision to maintain stable prices in the 12-inch special-purpose space and plans to extend "strategic assistance" to preserve its market share and competitiveness in the 8-inch wafer segment.

These remarks from UMC come during a challenging time for the global semiconductor industry, marked by the ongoing chip shortage, the war in Ukraine, and escalating living costs. Consequently, there has been a slowdown in semiconductor demand across various end markets.

Despite these obstacles, UMC remains steadfast in its commitment to uphold its leadership position in the semiconductor industry. The company will continue to invest in research and development and expand its capacity to meet the long-term demand for semiconductors.

Following the company's shareholder meeting, UMC's stock experienced a 2% decline in after-hours trading.