By Sarah Wu
TAIPEI: Taiwanese chipmaker United Microelectronics Corp (UMC) stated on Wednesday it sees continued progress for the business into subsequent yr, whilst hovering inflation and recession fears cool demand for client electronics.
“After two very strong years in the semi market – we call it a supercycle – and hitting the recent turbulence and disruption from the market, and after this rising macro uncertainty, higher inflationary cost issues, we still foresee the foundry industry growing in 2023,” co-president Jason Wang advised an earnings name.
“It will be more moderate, but it is going to be another growth year.”
UMC, whose purchasers embody Qualcomm Inc and Germany’s Infineon, benefited from a world chip scarcity that has saved chipmakers’ order books full over the previous two years.
While firms resembling Micron Technology Inc have not too long ago signalled waning demand for chips, prompting investor concern that the business could slide right into a down cycle, UMC stated secure demand in its networking, industrial, and auto segments helped offset softening demand for smartphones and notebooks.
“We foresee our Q3 loading will be full,” Wang stated, as UMC reported a 41.5% year-on-year leap in second-quarter income to a file excessive of T$72.06 billion ($2.4 billion).
“Despite the rising uncertainty of the macro outlook, our view of the 2022 foundry industry growth of 20 percent plus remains unchanged. And our target is to grow in line or higher than the foundry industry.”
Earlier this month, Taiwan’s TSMC, the world’s largest contract chipmaker, forecast income progress for the present quarter doubtlessly at its highest in 10 quarters, citing surging long-term demand, together with for chips utilized in knowledge centres and electrical autos.
U.S. chipmaker Intel Corp stated this month it had knowledgeable clients of plans to extend costs for a lot of of its chip merchandise as a result of rising prices.