Wafer foundry UMC: Market demand has declined significantly

The wafer foundry UMC stated that market demand has declined significantly, and 2023 will be a challenging year. UMC said that due to the inventory adjustment of the semiconductor industry, the capacity utilization rate in the fourth quarter will drop to 90%, and the wafer shipment will decrease by about 10%, but the average selling price of the product will be flat compared with the third quarter.

Looking ahead, UMC pointed out that it will provide capacity utilization rate and quotation situation views quarter by quarter, and currently does not comment on the quotation trend for next year. 2023 is expected to be a challenging year due to a significant decline in market demand.

UMC stated that capacity utilization and quotations are linked. Currently, most customers focus on destocking, and lowering quotations should be of limited benefit to improving capacity utilization.

The legal person pointed out that UMC’s demand for 12-inch wafers is still stable, and the overall capacity utilization rate in the off-season is expected to remain above 85%. Benefiting from the continuous outsourcing of IDM factories, the demand for electric vehicles is still hot.

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