UMC and VIS' FY18 revenue hit new record highs

UMC and VIS' FY18 revenue hit new record highs.
UMC and VIS' FY18 revenue hit new record highs.

Wafer foundries announced their Dec18 revenues today on January 9th. Among them, UMC (2303-TW) and VIS (5347-TW) achieved remarkable results in their FY18 revenue, setting new record highs.

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.