UMC's March revs show signs of comeback
By Colleen Taylor, Contributing Editor -- EDN, April 9, 2007
United Microelectronics Corp. (UMC) displayed signs of a comeback with its March revenues, which for the first time in months showed a sequential increase.
The Taiwan-based foundry today posted unaudited net sales of $228.2 million (7.55 billion new Taiwanese dollars), up 4.28 percent from February's sales but still a 10.72 percent drop from March 2006.
Despite the year-over-year drop, March's sales increase from February is good news for the company, which has seen a string of declining revenue reports since September 2006, when it posted $279 million (9.23 billion TD) in sales, nearly 2 percent lower than its August 2006 numbers.
As a worldwide inventory backup clogged the semiconductor industry, the company went on to post another revenue decline in October with sales of $276.2 million (9.05 billion TD), and then again in November with revenues of $269 million (8.7 billion TD). UMC closed out 2006 with yet another dismal month, sliding down another 3.66 from November with sales of sales of $256.4 million (8.37 billion TD.)
Similarly good news may be on the way for other companies, as well. Analysts say that across the board, the industry's numbers should continue to strengthen as inventory woes have started to subside. Semiconductor stockpiles in the global electronics supply chain continued to decline in Q1 thanks to production cuts by chip manufacturers, according to the latest report from market research firm iSuppli Corp.
