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UMC posts 12.9% sequential sales increase for October
No. 2 foundry supplier joins rival TSMC in reporting continuation of growth
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Silicon Strategies


TAIPEI, Taiwan -- Silicon foundry supplier United Microelectronics Corp. here today added more evidence of a rebound now apparently taking place in the recession-battered chip business. UMC said net sales jumped 12.9% in October over revenues in September.

The world's second largest pure-play chip foundry reported sales of NT$4.72 billion ($139 million) in October compared to NT$4.182 billion ($121 million) in September.

The growth was UMC's third sequential monthly increase in a row since July. News of the increase comes one day after foundry rival Taiwan Semiconductor Manufacturing Co. Ltd. reported its fourth consecutive sequential increase in October. TSMC's sales grew 11.1% to NT$10.3 3 billion ($304 million) in October from NT$9.31 billion ($274 million) in September (see Oct. 8 story).

Compared to a year ago, UMC's net sales were 55.92% lower than NT$10.71 billion ($315 million) in October 2000. For the first 10 months of 2001, UMC's revenues totaled NT$55.27 billion ($1.62 billion) vs. NT$83.95 billion ($2.47 billion) in the same period last year--a 34.2% decline.

The pure-play silicon foundry business this year has suffered its worst setback since the chip segment was started in Taiwan during the late 1980s. According to new estimates by Dataquest Inc., silicon foundry revenues worldwide are expected to drop by as much as 30% this year from 2000 because of too much capacity and slowdowns in key end-user markets.

In a forecast being released today, Dataquest now expects foundry revenues to grow in the high "single-digit" percentage range in 2002 with conditions gradually improving throughout the year (see Nov. 8 story).






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