Due to the following: a) the decline of non-Apple smart phone pull-in, b) the depreciation of emerging market currencies, c) unsettled international situation, UMC’ 4Q18 operating performance appeared flat with strong low-season effect. Its Dec18 revenue fell to NTD11.385bn (-1.46% MoM), setting a one-year low. Its 4Q18 revenue reached NTD35.517bn (-9.8% QoQ), meeting expectation.
Catalyzed by power IC, VIS’ Dec18 revenue appeared relatively stable and reached NTD2.595 bn (+0.4% MoM), the third highest in its history. Its 4Q18 revenue was NTD7.7bn (-0.57% QoQ), meeting the expectation of NTD7.6-8.0bn, and reflecting low-season effect.
Although UMC and VIS'4Q18 revenues declined, semiconductor companies generally performed well in FY18. UMC's FY18 revenue was NTD151.25bn (+1.32% YoY), setting a new record high. VIS' FY18 revenue reached NTD28.9bn (+16.13% YoY), setting a new record high as well.
In 1Q19, due to the sluggish market demand and the US-China trade war, the pull-in from the clients appears conservative. It is estimated that including TSMC (2330-TW), semiconductor companies may face low-season pressures and the performances of Non-Apple companies may stay flat due to Lunar new year holiday.