The world's advanced Q1 overall utilization rate dropped to 50%

On February 2, World Advanced General Manager Wei Jishi stated at the company's legal meeting that in the first quarter due to the traditional off-season, the supply chain continued to adjust inventory, and customers also maintained a cautious and conservative attitude. The overall utilization rate dropped to 50%. Yuan shipments are expected to decrease by 6%-8% quarter-on-quarter, the average selling price (ASP) is expected to be flat, and revenue is expected to decrease by a single-digit percentage quarter-on-quarter.

World Advanced pointed out that automotive and industrial use are still undergoing inventory adjustments, and order visibility is only 2 to 3 months. Based on the US dollar to New Taiwan dollar exchange rate of 1:30.9, wafer shipments in the first quarter will decrease by 6%-8%. , the average selling price was approximately the same, and the gross profit margin range continued to drop from 22% to 24% to 21% to 23%.

Regarding production capacity, the world estimates that this year's monthly production capacity will decrease by 3% quarter-on-quarter to about 277,000 pieces due to fewer annual repairs and fewer working days. For the whole year, as the fifth wafer fab opened last year begins to fully contribute, production capacity is estimated to Approximately 3.381 million pieces, a slight increase of 1%.

In addition, the world has also reduced its capital expenditure this year. Last year, capital expenditure was about 7.6 billion yuan, a year-on-year decrease of 61%. It is expected to continue to drop to 3.8 billion yuan this year, a year-on-year decrease of nearly 50%. 60% will be used to expand the production capacity of the fifth wafer fab. By then, the production capacity of the fifth factory will reach 15,000 wafers, and the remaining 40% will be used for routine maintenance and equipment optimization of other factory areas. The 12-inch wafer fab plan is also actively evaluated internally.