UMC announces partnership with customers for NT$100 billion capacity expansion at Fab 12A P6

First Quarter 2021 Overview1:

  • Revenue: NT$47.10 billion (US$1.65 billion)
  • Gross margin: 26.5%; Operating margin: 16.2%
  • Revenue from 28nm: 20%
  • Capacity utilization rate: 100%
  • Net income attributable to stockholders of the parent: NT$10.43 billion (US$366 million)
  • Earnings per share: NT$0.85; earnings per ADS: US$0.149

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the first quarter of 2021.

First quarter consolidated revenue was NT$47.10 billion, which increased 4.0% QoQ from NT$45.30 billion in 4Q20. Compared to a year ago, 1Q21 revenue was up 11.4% YoY from NT$42.27 billion in 1Q20. Consolidated gross margin for 1Q21 was 26.5%. Net income attributable to the stockholders of the parent was NT$10.43 billion, with earnings per ordinary share of NT$0.85.

Jason Wang, co-president of UMC, said, “Amid the semiconductor component shortage, we are working with our customers, suppliers and partners to alleviate the capacity tightness across the supply chain. In Q1, robust wafer demand led to full utilization in our manufacturing sites, bringing overall wafer shipments to 2.37 million 8-inch equivalents. For the quarter, our gross profit grew 15.2% QoQ to NT$12.49 billion which partly reflected higher contribution from our 28nm technologies. During the first quarter, we continued to see an increase in 28nm wafer shipments driven by strong wafer demand associated with digital TV, set top box and connectivity chips designed into smartphones. As a result, 28nm revenue grew 18% QoQ, representing 20% of our wafer business. Furthermore, we have started to ship 22nm products to fulfill consumer demand, leading to the recognition of 22nm wafer revenue in 1Q21. We foresee a significant pick up in 22nm product tape outs that will increase our 22/28nm product pipeline, optimize overall product mix and enhance UMC’s foundry share.”

Co-president Wang continued, “Looking into the second quarter, market demand will continue to outpace supply which will lift wafer shipments and blended ASP in USD. Recent market dynamics have provided us and our customers an opportunity to reinforce our capex strategy within our ROI boundary, while trying to alleviate the long term capacity constraint in the supply chain. Therefore, our Board of Directors has approved an investment plan which will expand the capacity at UMC Fab 12A capacity Phase 6 (P6) in Taiwan’s Tainan Science Park through an innovative, win-win partnership model with several leading global customers. The P6 expansion is scheduled for production in the second quarter of 2023, with total investment for the project earmarked at NT$100 billion. In addition to UMC’s previously announced 2021 CAPEX of US$1.5 billion, the bulk of which is allocated towards equipment for the company’s Fab 12A P5 site adjacent to P6, total UMC investment in the Tainan Science Park will reach approximately NT$150 billion over the next three years. The P6 program is supported by a multi-year product alignment between UMC and the involved customers that includes a loading protection mechanism that will ensure the P6 capacity is maintained at a healthy loading level. We look forward to leveraging our No. 1 worldwide foundry market position in multiple areas such as 28nm OLED driver IC production, so we may further strengthen UMC’s semiconductor industry relevance and capture new market opportunities down the road.”

Summary of Operating Results

Operating Results

(Amount: NT$ million)

1Q21

4Q20

QoQ % change

1Q20

YoY % change

Operating Revenues

47,097

45,296

4.0

42,268

11.4

Gross Profit

12,494

10,848

15.2

8,122

53.8

Operating Expenses

(5,932)

(6,335)

(6.4)

(5,722)

3.7

Net Other Operating Income and Expenses

1,060

1,102

(3.8)

1,014

4.5

Operating Income

7,622

5,615

35.7

3,414

123.2

Net Non-Operating Income and Expenses

3,361

5,619

(40.2)

(2,592)

-

Net Income Attributable to Stockholders of the Parent

10,428

11,196

(6.9)

2,207

372.5

EPS (NT$ per share)

0.85

0.92

 

0.19

 

(US$ per ADS)

0.149

0.161

 

0.033

 

Operating revenues in 1Q21 grew 4.0% to NT$47.10 billion. Revenue contribution from 40nm and below technologies remained at to 40%. Gross profit grew 15.2% QoQ to NT$12.49 billion, or 26.5% of revenue. Operating expenses declined 6.4% to NT$5.93 billion. Net other operating income declined to NT$1.06 billion. Net non-operating income was NT$3.36 billion. Net income attributable to stockholders of the parent declined slightly to NT$10.43 billion.

Earnings per ordinary share for the quarter was NT$0.85. Earnings per ADS was US$0.149. The basic weighted average number of outstanding shares in 1Q21 was 12,206,292,756, compared with 12,206,292,756 shares in 4Q20 and 11,782,936,260 shares in 1Q20. The diluted weighted average number of outstanding shares was 12,381,821,873 in 1Q21, compared with 12,359,115,536 shares in 4Q20 and 13,087,825,472 shares in 1Q20. The fully diluted shares counted on March 31, 2021 were approximately 12,397,900,000.

Detailed Financials Section

COGS & Expenses

(Amount: NT$ million)

1Q21

4Q20

QoQ % change

1Q20

YoY % change

Operating Revenues

47,097

45,296

4.0

42,268

11.4

COGS

(34,603)

(34,448)

0.4

(34,146)

1.3

Depreciation

(10,412)

(10,436)

(0.2)

(11,124)

(6.4)

Other Mfg. Costs

(24,191)

(24,012)

0.7

(23,022)

5.1

Gross Profit

12,494

10,848

15.2

8,122

53.8

Gross Margin (%)

26.5%

23.9%

 

19.2%

 

Operating Expenses

(5,932)

(6,335)

(6.4)

(5,722)

3.7

G&A

(1,806)

(1,966)

(8.2)

(1,543)

17.0

Sales & Marketing

(1,089)

(1,175)

(7.2)

(1,040)

4.8

R&D

(3,049)

(3,194)

(4.5)

(3,185)

(4.3)

Expected Credit Impairment Gain (Loss)

12

0

5,409.7

46

(73.1)

Net Other Operating Income & Expenses

1,060

1,102

(3.8)

1,014

4.5

Operating Income

7,622

5,615

35.7

3,414

123.2

Operating revenues increased to NT$47.10 billion. COGS remained at NT$34.60 billion, as depreciation and other manufacturing costs remained relatively flat compared to 4Q20. Gross profit increased 15.2% QoQ to NT$12.49 billion, reflecting higher contribution from 28nm wafer shipments. Operating expenses decreased 6.4% QoQ to NT$5.93 billion, as G&A declined 8.2% sequentially to NT$1.81 billion and Sales & Marketing fell 7.2% QoQ to NT$1.09 billion. R&D declined 4.5% sequentially to NT$3.05 billion, representing 6.5% of 1Q21 operating revenues. Net other operating income was NT$1.06 billion. In 1Q21, operating income surged 35.7% QoQ to NT$7.62 billion.

Non-Operating Income and Expenses

(Amount: NT$ million)

1Q21

4Q20

1Q20

Non-Operating Income and Expenses

3,361

5,619

(2,592)

Net Interest Income and Expenses

(272)

(278)

(368)

Net Investment Gain and Loss

3,530

5,703

(1,974)

Exchange Gain and Loss

93

199

(148)

Other Gain and Loss

10

(5)

(102)

Net non-operating income in 1Q21 was NT$3.36 billion, mainly resulting from NT$3.53 billion in net investment gain, as well as a NT$93 million in exchange gain, offset by a NT$272 million in net interest expense.

Cash Flow Summary

(Amount: NT$ million)

For the 3-Month Period Ended

Mar. 31, 2021

For the 3-Month Period Ended

Dec. 31, 2020

Cash Flow from Operating Activities

18,281

16,072

Net income before tax

10,983

11,234

Depreciation & Amortization

11,833

11,993

Share of profit of associates and joint ventures

(1,767)

(3,822)

Income tax paid

(51)

(144)

Changes in working capital & others

(2,717)

(3,189)

Cash Flow from Investing Activities

(7,120)

(17,437)

Acquisition of PP&E

(7,352)

(11,738)

Acquisition of intangible assets

(619)

(293)

Increase in other financial assets

(8)

(4,625)

Others

859

(781)

Cash Flow from Financing Activities

2,580

(3,153)

Bank loans

2,368

(3,000)

Others

212

(153)

Effect of Exchange Rate

(504)

(273)

Net Cash Flow

13,237

(4,791)

Beginning balance

94,048

98,839

Ending balance

107,285

94,048

In 1Q21, cash inflow from operating activities was NT$18.28 billion. Cash outflow from investing activities totaled NT$7.12 billion, which included NT$7.81 billion in capital expenditure, resulting in free cash flow of NT$10.47 billion. Cash inflow from financing activities was NT$2.58 billion, mainly due to NT$2.37 billion in bank loans. Net cash inflow in 1Q21 was NT$13.24 billion. Over the next 12 months, the company expects to repay NT$5.43 billion in bank loans.

Current Assets

(Amount: NT$ billion)

1Q21

4Q20

1Q20

Cash and Cash Equivalents

107.29

94.05

95.17

Notes & Accounts Receivable

29.24

27.27

28.57

Days Sales Outstanding

55

55

59

Inventories, net

22.23

22.55

22.13

Days of Inventory

59

60

59

Total Current Assets

179.08

164.31

159.60

Cash and cash equivalents increased to NT$107.29 billion. Days of inventory decreased by a day to 59 days.

Liabilities

(Amount: NT$ billion)

1Q21

4Q20

1Q20

Total Current Liabilities

78.53

78.24

61.10

Notes & Accounts Payable

8.26

7.86

8.92

Short-Term Credit / Bonds

37.28

38.04

25.35

Payables on Equipment

5.29

5.45

2.78

Other

27.70

26.89

24.05

Long-Term Credit / Bonds

27.70

24.77

47.75

Long-Term Investment Liabilities

20.66

20.75

19.89

Total Liabilities

144.59

141.74

149.64

Debt to Equity

58%

60%

71%

Current liabilities remained at NT$78.53 billion, mainly from NT$37.28 billion in short-term credit/bonds, which was a decrease from NT$38.04 billion in Q4. Long-term credit/bonds increased to NT$27.70 billion. Total liabilities increased slightly to NT$144.59 billion, leading to a debt to equity ratio of 58%.

Analysis of Revenue2

Revenue Breakdown by Region

Region

1Q21

4Q20

3Q20

2Q20

1Q20

North America

23%

29%

30%

31%

29%

Asia Pacific

63%

61%

57%

55%

56%

Europe

8%

5%

6%

5%

6%

Japan

6%

5%

7%

9%

9%

Revenue from Asia Pacific rose to 63% as business from North America declined to 23% of sales. Business from Europe was 8% while contribution from Japan increased to 6%.

Revenue Breakdown by Geometry

Geometry

1Q21

4Q20

3Q20

2Q20

1Q20

14nm and below

0%

0%

0%

0%

0%

14nm<x<=28nm

20%

18%

14%

13%

9%

28nm<x<=40nm

20%

22%

23%

23%

25%

40nm<x<=65nm

18%

18%

19%

16%

16%

65nm<x<=90nm

8%

8%

10%

13%

15%

90nm<x<=0.13um

11%

11%

11%

11%

11%

0.13um<x<=0.18um

13%

13%

13%

13%

13%

0.18um<x<=0.35um

8%

8%

8%

8%

8%

0.5um and above

2%

2%

2%

3%

3%

Revenue contribution from 28nm increased to 20% of the business while 40nm contribution declined to 20% of sales.

Revenue Breakdown by Customer Type

Customer Type

1Q21

4Q20

3Q20

2Q20

1Q20

Fabless

86%

87%

88%

88%

88%

IDM

14%

13%

12%

12%

12%

Revenue from fabless customers decreased to 86% of revenue.

Revenue Breakdown by Application (1)

Application

1Q21

4Q20

3Q20

2Q20

1Q20

Computer

16%

16%

13%

14%

13%

Communication

46%

49%

54%

51%

54%

Consumer

27%

25%

24%

24%

24%

Others

11%

10%

9%

11%

9%

Revenue from the communication segment declined to 46%, while business from computer applications remained at 16%. Business from consumer applications increased to 27% as other segments increased to 11%.

(1) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec, keyboard controller, monitor scaler, USB, I/O chipset, WLAN. Communication consists of handset components, broadband, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart cards, toys, etc.

Blended ASP Trend

Blended average selling price (ASP) increased in 1Q21.

(To view blended ASP trend, please click here for 1Q21 ASP)

Shipment and Utilization Rate3

Wafer Shipments

 

1Q21

4Q20

3Q20

2Q20

1Q20

Wafer Shipments (8” K equivalents)

2,372

2,293

2,254

2,218

2,148

 

Quarterly Capacity Utilization Rate

 

1Q21

4Q20

3Q20

2Q20

1Q20

Utilization Rate

100%

99%

97%

98%

93%

Total Capacity (8” K equivalents)

2,280

2,311

2,308

2,291

2,278

In 1Q21, wafer shipments increased 3.4% QoQ to 2,372K, while quarterly capacity declined to 2,280K due to fewer working days. Overall utilization rate in 1Q21 was 100%.

Capacity4

Total capacity in the first quarter was 2,280K 8-inch equivalent wafers. Capacity is expected to increase by 4% QoQ in the second quarter to 2,370K 8-inch equivalent wafers, mainly reflecting the capacity expansion at Fab 8N, Fab 12A and Fab 12X.

Annual Capacity in

thousands of wafers

 

Quarterly Capacity in

thousands of wafers

FAB

Geometry (um)

2020

2019

2018

2017

 

FAB

2Q21E

1Q21

4Q20

3Q20

WTK

6"

3.5 – 0.45

371

370

396

422

 

WTK

84

84

93

93

8A

8"

0.5 – 0.25

802

825

825

825

 

8A

190

186

201

201

8C

8"

0.35 – 0.11

452

436

383

357

 

8C

115

113

113

113

8D

8"

0.13 – 0.09

371

359

347

341

 

8D

95

94

93

93

8E

8"

0.5 – 0.15

449

426

418

418

 

8E

115

113

113

113

8F

8"

0.18 – 0.11

485

434

431

417

 

8F

122

120

122

122

8S

8"

0.18 – 0.11

373

372

372

347

 

8S

102

101

93

93

8N

8"

0.5 – 0.11

917

831

771

753

 

8N

230

226

230

230

12A

12"

0.13 – 0.014

1044

997

997

970

 

12A

271

257

261

261

12i

12"

0.13 – 0.040

628

595

555

537

 

12i

160

157

160

160

12X

12"

0.040 – 0.028

217

203

183

97

 

12X

74

59

57

56

12M

12"

0.090 – 0.040

391

98

-

-

 

12M

98

96

98

98

Total(1)

9,188

8,148

7,673

7,304

 

Total

2,370

2,280

2,311

2,308

YoY Growth Rate

13%

6%

5%

5%

 

 

 

 

 

 

(1) One 6-inch wafer is converted into 0.5625 (62/82) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25 (122/82) 8-inch equivalent wafers. Total capacity figures are expressed in 8-inch equivalent wafers.

CAPEX

Capital Expenditure by Year - in US$ billion

Year

2020

2019

2018

2017

2016

CAPEX

$ 1.0

$ 0.6

$ 0.7

$ 1.4

$ 2.8

 

2021 CAPEX Plan

8"

12"

Total

15%

85%

US$2.3 billion

CAPEX spending in 1Q21 was US$275 million. Full year 2021 CAPEX is budgeted at US$2.3 billion, which includes the company’s collaborative Fab 12A P6 expansion plan with its customers.

Second Quarter 2021 Outlook & Guidance

Quarter-over-Quarter Guidance:

  • Wafer Shipments: To increase by approximately 2%
  • ASP in USD: To increase by 3-4%
  • Gross Profit Margin: To challenge 30%
  • Capacity Utilization: 100%
  • 2021 CAPEX: US$2.3 billion

Recent Developments / Announcements

Apr 1, 2021

Taiwan’s MoEA & the Economic Commissioner of the Legislative Yuan visit UMC

Mar 8, 2021

Sensirion Gains Capacity Support from UMC as Both Companies Partner to Support the Battle Against COVID-19

Feb 24, 2021

UMC Board of Directors Announces Proposals for its Annual Shareholders Meeting

Jan 27, 2021

UMC 4Q20 Financial Results

Please visit UMC’s website for further details regarding the above announcements

Conference Call / Webcast Announcement

Wednesday, April 28, 2021

Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM (London)

Dial-in numbers and Access Codes:

 

USA Toll Free:

1-866 836-0101

Taiwan Number:

02-2192-8016

Other Areas:

+886-2-2192-8016

 

 

Access Code:

UMC

A live webcast and replay of the 1Q21 results announcement will be available at www.umc.com under the “Investors / Events” section.

About UMC

UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry. The company provides high quality IC production with a focus on both logic and specialty technologies to serve every major sector of the electronics industry. UMC’s comprehensive technology and manufacturing solutions include logic/RF, embedded high voltage, embedded flash, RFSOI/BCD and IATF-16949 automotive manufacturing certification for all its manufacturing facilities. UMC operates 12 fabs that are strategically located throughout Asia with a maximum capacity of more than 750,000 8-inch equivalent wafers per month. The company employs approximately 19,500 people worldwide, with offices in Taiwan, China, United States, Europe, Japan, Korea and Singapore. For more information, please visit: http://www.umc.com.

Safe Harbor Statements

This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding anticipated financial results for the first quarter of 2021; the expected wafer shipment and ASP; the anticipated annual budget; capex strategies; environmental protection goals and water management strategies; impact of foreign currency exchange rates; expected foundry capacities; the ability to obtain new business opportunities; and information under the heading “First Quarter of 2021 Outlook and Guidance.”

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) dependence upon the frequent introduction of new services and technologies based on the latest developments in the industry in which UMC operates; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international business activities; (iv) dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including natural disasters, terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risk factors is included in UMC’s filings with the United States Securities and Exchange Commission, including its Annual Report on Form 20-F. All information provided in this release is as of the date of this release and are based on assumptions that UMC believes to be reasonable as of this date, and UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

The financial statements included in this release are prepared and published in accordance with Taiwan International Financial Reporting Standards, or TIFRSs, recognized by the Financial Supervisory Commission in the ROC, which is different from International Financial Reporting Standards, or IFRSs, issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from generally accepted accounting principles in the ROC and generally accepted accounting principles in the United States.

- FINANCIAL TABLES TO FOLLOW -

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

Consolidated Condensed Balance Sheet

As of March 31, 2021 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)     March 31, 2021 US$ NT$ % Assets Current assets Cash and cash equivalents

3,760

107,285

27.2%

Accounts receivable, net

1,025

29,237

7.4%

Inventories, net

779

22,225

5.6%

Other current assets

713

20,336

5.2%

Total current assets

6,277

179,083

45.4%

  Non-current assets Funds and investments

2,273

64,835

16.4%

Property, plant and equipment

4,431

126,430

32.1%

Right-of-use assets

267

7,609

1.9%

Other non-current assets

571

16,305

4.2%

Total non-current assets

7,542

215,179

54.6%

Total assets

13,819

394,262

100.0%

  Liabilities Current liabilities Short-term loans

181

5,163

1.3%

Payables

1,137

32,428

8.2%

Current portion of long-term liabilities

1,126

32,121

8.2%

Other current liabilities

309

8,819

2.2%

Total current liabilities

2,753

78,531

19.9%

  Non-current liabilities Bonds payable

368

10,492

2.7%

Long-term loans

603

17,210

4.4%

Lease liabilities, noncurrent

173

4,925

1.3%

Other non-current liabilities

1,171

33,431

8.4%

Total non-current liabilities

2,315

66,058

16.8%

Total liabilities

5,068

144,589

36.7%

  Equity Equity attributable to the parent company Capital

4,354

124,224

31.5%

Additional paid-in capital

1,509

43,057

10.9%

Retained earnings and other components of equity

2,889

82,416

20.9%

Treasury stock

(4)

(120)

(0.0%)

Total equity attributable to the parent company

8,748

249,577

63.3%

Non-controlling interests

3

96

0.0%

Total equity

8,751

249,673

63.3%

Total liabilities and equity

13,819

394,262

100.0%

              Note:New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2021 exchange rate of NT $28.53 per U.S. Dollar.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Comprehensive Income

Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) Except Per Share and Per ADS Data     Year over Year Comparison Quarter over Quarter Comparison Three-Month Period Ended Three-Month Period Ended March 31, 2021 March 31, 2020 Chg. March 31, 2021 December 31, 2020 Chg. US$ NT$ US$ NT$ % US$ NT$ US$ NT$ % Operating revenues

1,651

47,097

1,482

42,268

11.4%

1,651

47,097

1,588

45,296

4.0%

Operating costs

(1,213)

(34,603)

(1,197)

(34,146)

1.3%

(1,213)

(34,603)

(1,208)

(34,448)

0.4%

Gross profit

438

12,494

285

8,122

53.8%

438

12,494

380

10,848

15.2%

26.5%

26.5%

19.2%

19.2%

26.5%

26.5%

23.9%

23.9%

Operating expenses - Sales and marketing expenses

(38)

(1,089)

(36)

(1,040)

4.8%

(38)

(1,089)

(41)

(1,175)

(7.2%)

- General and administrative expenses

(63)

(1,806)

(55)

(1,543)

17.0%

(63)

(1,806)

(69)

(1,966)

(8.2%)

- Research and development expenses

(107)

(3,049)

(112)

(3,185)

(4.3%)

(107)

(3,049)

(112)

(3,194)

(4.5%)

- Expected credit impairment gain

0

12

2

46

(73.1%)

0

12

0

0

5,409.7%

Subtotal

(208)

(5,932)

(201)

(5,722)

3.7%

(208)

(5,932)

(222)

(6,335)

(6.4%)

Net other operating income and expenses

37

1,060

36

1,014

4.5%

37

1,060

39

1,102

(3.8%)

Operating income

267

7,622

120

3,414

123.2%

267

7,622

197

5,615

35.7%

16.2%

16.2%

8.1%

8.1%

16.2%

16.2%

12.4%

12.4%

  Net non-operating income and expenses

118

3,361

(91)

(2,592)

-

118

3,361

197

5,619

(40.2%)

Income from continuing operationsbefore income tax

385

10,983

29

822

1,236.3%

385

10,983

394

11,234

(2.2%)

23.3%

23.3%

1.9%

1.9%

23.3%

23.3%

24.8%

24.8%

  Income tax benefit (expenses)

(38)

(1,094)

14

408

-

(38)

(1,094)

(12)

(344)

217.9%

Net income

347

9,889

43

1,230

703.8%

347

9,889

382

10,890

(9.2%)

21.0%

21.0%

2.9%

2.9%

21.0%

21.0%

24.0%

24.0%

  Other comprehensive income (loss)

124

3,556

(130)

(3,714)

-

124

3,556

134

3,831

(7.2%)

  Total comprehensive income (loss)

471

13,445

(87)

(2,484)

-

471

13,445

516

14,721

(8.7%)

  Net income attributable to:   Stockholders of the parent

366

10,428

77

2,207

372.5%

366

10,428

393

11,196

(6.9%)

  Non-controlling interests

(19)

(539)

(34)

(977)

(44.8%)

(19)

(539)

(11)

(306)

76.1%

  Comprehensive income (loss) attributable to:   Stockholders of the parent

490

13,984

(57)

(1,634)

-

490

13,984

527

15,027

(6.9%)

  Non-controlling interests

(19)

(539)

(30)

(850)

(36.6%)

(19)

(539)

(11)

(306)

76.1%

  Earnings per share-basic

0.030

0.85

0.007

0.19

0.030

0.85

0.032

0.92

Earnings per ADS (2)

0.149

4.25

0.033

0.95

0.149

4.25

0.161

4.60

Weighted average number of shares outstanding (in millions)

12,206

11,783

12,206

12,206

    Notes: (1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2021 exchange rate of NT $28.53 per U.S. Dollar. (2) 1 ADS equals 5 common shares.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Comprehensive Income

Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) Except Per Share and Per ADS Data   For the Three-Month Period Ended For the Three-Month Period Ended March 31, 2021 March 31, 2021 US$ NT$ % US$ NT$ % Operating revenues

1,651

47,097

100.0%

1,651

47,097

100.0%

Operating costs

(1,213)

(34,603)

(73.5%)

(1,213)

(34,603)

(73.5%)

Gross profit

438

12,494

26.5%

438

12,494

26.5%

    Operating expenses - Sales and marketing expenses

(38)

(1,089)

(2.3%)

(38)

(1,089)

(2.3%)

- General and administrative expenses

(63)

(1,806)

(3.8%)

(63)

(1,806)

(3.8%)

- Research and development expenses

(107)

(3,049)

(6.5%)

(107)

(3,049)

(6.5%)

- Expected credit impairment gain

0

12

0.0%

0

12

0.0%

Subtotal

(208)

(5,932)

(12.6%)

(208)

(5,932)

(12.6%)

Net other operating income and expenses

37

1,060

2.3%

37

1,060

2.3%

Operating income

267

7,622

16.2%

267

7,622

16.2%

  Net non-operating income and expenses

118

3,361

7.1%

118

3,361

7.1%

Income from continuing operationsbefore income tax

385

10,983

23.3%

385

10,983

23.3%

    Income tax expense

(38)

(1,094)

(2.3%)

(38)

(1,094)

(2.3%)

Net income

347

9,889

21.0%

347

9,889

21.0%

  Other comprehensive income (loss)

124

3,556

7.6%

124

3,556

7.6%

  Total comprehensive income (loss)

471

13,445

28.6%

471

13,445

28.6%

  Net income attributable to:   Stockholders of the parent

366

10,428

22.1%

366

10,428

22.1%

  Non-controlling interests

(19)

(539)

(1.1%)

(19)

(539)

(1.1%)

  Comprehensive income (loss) attributable to:   Stockholders of the parent

490

13,984

29.7%

490

13,984

29.7%

  Non-controlling interests

(19)

(539)

(1.1%)

(19)

(539)

(1.1%)

  Earnings per share-basic

0.030

0.85

0.030

0.85

Earnings per ADS (2)

0.149

4.25

0.149

4.25

  Weighted average number of sharesoutstanding (in millions)

12,206

12,206

  Notes: (1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2021 exchange rate of NT $28.53 per U.S. Dollar. (2) 1 ADS equals 5 common shares.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statement of Cash Flows

For The Three-Month Period Ended March 31, 2021 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)   US$ NT$ Cash flows from operating activities : Net income before tax

385

10,983

Depreciation & Amortization

415

11,833

Share of profit of associates and joint ventures

(62)

(1,767)

Changes in working capital & others

(97)

(2,768)

Net cash provided by operating activities

641

18,281

  Cash flows from investing activities : Acquisition of property, plant and equipment

(258)

(7,352)

Acquisition of intangible assets

(22)

(619)

Others

30

851

Net cash used in investing activities

(250)

(7,120)

  Cash flows from financing activities : Decrease in short-term loans

(204)

(5,815)

Proceeds from long-term loans

440

12,560

Repayments of long-term loans

(153)

(4,377)

Others

7

212

Net cash provided by financing activities

90

2,580

  Effect of exchange rate changes on cash and cash equivalents

(17)

(504)

Net increase in cash and cash equivalents

464

13,237

  Cash and cash equivalents at beginning of period

3,296

94,048

  Cash and cash equivalents at end of period

3,760

107,285

      Note: New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2021 exchange rate of NT $28.53 per U.S. Dollar.

1Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending March 31, 2021, the three-month period ending December 31, 2020, and the equivalent three-month period that ended March 31, 2020. For all 1Q21 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the March 31, 2021 exchange rate of NT$ 28.53 per U.S. Dollar. 2 Revenue in this section represents wafer sales 3 Utilization Rate = Quarterly Wafer Out / Quarterly Capacity 4 Estimated capacity numbers are based on calculated maximum output rather than designed capacity. The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp-up.

Michael Lin / David Wong UMC, Investor Relations + 886-2-2658-9168, ext. 16900 jinhong_lin@umc.com david_wong@umc.com

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