UMC Group continues its efforts to return to full production.
We have also completed a more thorough estimate of the damage
caused to UMC Group's operations. We would like to announce
the following:
Based
on a more complete estimation of losses, business interruption
revenue loss for UMC Group's publicly listed companies UMC
and UTEK will be 25% of revenues in September and 12.5% of
revenues in October. Therefore, total revenue loss at UMC
attributable to the earthquake is NT$1 billion (US$ 31.3 million),
while the figure is NT$270 million (US$ 8.4 million) for UTEK.
Total
profit loss resulting from loss in revenues at UMC is estimated
at NT$ 400 million (US$ 12.5 million). Total profit loss for
UTEK is estimated at about NT$ 60 million (US$ 1.9 million).
UMC
Group has insurance coverage for damages caused by the earthquake,
as well as for interruption of business operations. Therefore,
the actual financial loss for UMC and UTEK will be significantly
less than the above numbers.
Based on our current estimates, less than 10% of the total wafers in production
at UMC Group fabs at the time of the earthquake will have
to be scrapped.
