United Microelectronics Corporation (NYSE:UMC) Q4 2022 Earnings Call Transcript

Jason Wang: Well, I mean the — yes, I mean, particularly for the 12-inch and across all different technology node from 28, 22 to extent of the 55 and the 40 automotive space, we do see there is a continuous opportunity for us to engage. It’s also aligned to our megatrend and that we have been talking about it. We believe our addressable model will continue to grow, okay? And given our upcoming capacity planning, the 28 and 22 will actually continue enhancing our position in that context. And we are excited to many of the new opportunity that brings to us to increase our relevance to those bundles application. We touched that already, the ISP, the WiFi, OLED as well as automotive. And we — because not just IDM which is what we focus to align with the industry megatrends.

Laura Chen: Okay. Great. Because for one of the IDM customers probably also see some weakness on the automotive or the industrial. So I’m just wondering since some of the IDM also ramping up their own 12-inch capacity. So whether that will be slightly impact our short-term business, like the megatrend in the longer term is still quite solid. So just wondering, will you also see that kind of MCU automotive business to come down after maybe later in second half or — later in the first half into second half?

Jason Wang: Not really. I mean we — it’s not — well, I mean, given the alignment that we have with our customer and we’re closely working with them, the capacity growth even within the IDM is actually incorporated to our sourcing strategy with us. So we are part of their sourcing strategy. And so, I do not — we do not expect the IDMs — the in-house capacity expansion will become a threat to us. And I think given our long-term alignment with the customer and while the customer also recognized the semiconductor supply chain is essential now and I think they’ve been sharing the data with us in a much better way, and it’s more transparent, high-visibility, so — no, I mean, at this point, we don’t anticipate any impact on that.

Laura Chen: Okay. Great. Really appreciate. Thank you and have a nice Chinese New Year ahead. Thank you.

Jason Wang: Thank you.

Operator: Thank you. Our next question comes from Bruce Lu with Goldman Sachs. Please go ahead. Thank you.

Bruce Lu: Hello. This is Bruce. Can you hear me?

Jason Wang: Yes. hi, Bruce.

Bruce Lu: Okay. Happy New Year.

Jason Wang: Happy New Year to you.