TAIPEI, April 24 Reuters Taiwanese chipmaker UMC said on Wednesday it expected a rise in wafer shipments in the second quarter as inventory levels for computing, consumer and communications segments improved, but warned of muted auto and industrial demand.

WHY IT39;S IMPORTANT

Investors have been on edge about chip demand after UMC39;s much larger peer TSMC shocked the market last week by dialling back its expectations for the sector39;s growth this year, especially in more mature technologies used in sectors like autos.

United Microelectronics Corp UMC focuses on more mature nodes, unlike Taiwan Semiconductor Manufacturing Co TSMC, the world39;s largest contract chipmaker, which is investing big in the most advanced 2 and 1 nanometre technology to power artificial intelligence AI applications.

THE DETAILS

UMC , in a first quarter earnings release, said the inventory situation for the current quarter for the computing, consumer and communications segments were improving to a healthier level, which would bring a rise in wafer shipments.

But it said demand remained muted for the automotive and industrial segments as the pace of inventory digestion had been slower than anticipated.

KEY QUOTE

While we still expect some lingering impact from macro uncertainties and cost headwinds in the near term, we will continue to invest in technology, capacity and people to ensure UMC is ready to capture the next phase of growth driven by 5G and AI innovations, company Copresident…