Company’s differentiating specialty technologies accounted for 59% of Q2 revenue

Solid 22/28nm business momentum lifted contribution to 29%

Second Quarter 2023 Overview1:

  • Revenue: NT$56.30 billion (US$1.81 billion)
  • Gross margin: 36.0%; Operating margin: 27.8%
  • Revenue from 22/28nm: 29%
  • Capacity utilization rate: 71%
  • Net income attributable to shareholders of the parent: NT$15.64 billion (US$502 million)
  • Earnings per share: NT$1.27; earnings per ADS: US$0.204

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the second quarter of 2023.

Second quarter consolidated revenue was NT$56.30 billion, increasing 3.8% QoQ from NT$54.21 billion in 1Q23. Compared to a year ago, 2Q23 revenue declined 21.9% YoY from NT$72.06 billion in 2Q22. Consolidated gross margin for 2Q23 was 36.0%. Net income attributable to the shareholders of the parent was NT$15.64 billion, with earnings per ordinary share of NT$1.27.

Jason Wang, co-president of UMC, said, “For the second quarter, we reported results in line with guidance, with wafer shipments remaining flat from the previous quarter and utilization rate of 71%. Second-quarter revenue grew 3.8% QoQ, mainly due to improved product mix within our 12-inch portfolio. Revenue from 22/28nm products continued to increase sequentially, representing 29% of second-quarter sales, while contribution from specialty technologies reached 59%. By segment, we saw short-term demand recovery in the consumer space for WiFi, digital TV, and display driver ICs, while demand for computer-related products also moderately rebounded from the previous quarter. We are pleased to share that we have completed the transaction to acquire remaining shares in USCXM, our 12-inch fab in Xiamen, China. As one of UMC’s four 12-inch fabs in geographically diverse locations, USCXM will continue to provide high-quality fabrication services to customers and increase its contribution to UMC’s financial performance as a wholly-owned subsidiary.”

Co-president Wang said: “Looking into the third quarter, wafer demand outlook is uncertain given prolonged inventory correction in the supply chain. While we saw spots of limited recovery in the second quarter, overall end market sentiment remains weak and we expect customers to continue stringent inventory management in the near term. Despite a weaker-than-expected environment going into the second half, we believe our 22/28nm business will remain resilient due to our strong position in leading edge specialty technologies such as embedded high voltage. In addition, we are gearing up to offer the necessary silicon interposer technology and capacity to fulfill emerging AI market demand from customers.”

“UMC continues to enhance communication of its corporate sustainability efforts to stakeholders. This month, UMC issued its first Climate Action Report, which follows the Task Force on Climate-Related Financial Disclosures (TCFD) framework, providing a detailed overview of how UMC is responding to climate change. In addition, UMC was ranked in the top 5% of listed firms in Taiwan Stock Exchange’s 2022 Corporate Governance Evaluation for the ninth consecutive year, demonstrating the company’s commitment to delivering long-term shareholder value and adhering to sustainable business practices,” Co-president Wang added.

Summary of Operating Results

Operating Results

(Amount: NT$ million)

2Q23

 

1Q23

 

QoQ % change

2Q22

 

YoY % change

Operating Revenues

56,296

 

54,209

 

3.8

 

72,055

 

(21.9

)

Gross Profit

20,252

 

19,224

 

5.3

 

33,472

 

(39.5

)

Operating Expenses

(5,718

)

(5,780

)

(1.1

)

(6,706

)

(14.7

)

Net Other Operating Income and Expenses

1,141

 

1,037

 

10.0

 

1,398

 

(18.4

)

Operating Income

15,675

 

14,481

 

8.2

 

28,164

 

(44.3

)

Net Non-Operating Income and Expenses

2,810

 

4,647

 

(39.5

)

(2,586

)

-

 

Net Income Attributable to Shareholders of the Parent

15,641

 

16,183

 

(3.3

)

21,327

 

(26.7

)

EPS (NT$ per share)

1.27

 

1.31

 

 

1.74

 

 

(US$ per ADS)

0.204

 

0.210

 

 

0.279

 

 

Second quarter operating revenues increased by 3.8% sequentially to NT$56.30 billion as a better product mix from wafer shipments and a favorable foreign exchange rate slightly improved financial results amid continuing semiconductor inventory correction. Revenue contribution from 40nm and below technologies remained unchanged at 41% of wafer revenue. Gross profit grew 5.3% QoQ to NT$20.25 billion, or 36.0% of revenue. Operating expenses declined 1.1% QoQ to NT$5.72 billion. Net other operating income increased to NT$1.14 billion. Net non-operating income totaled NT$2.81 billion mainly reflecting the mark to market securities. Net income attributable to shareholders of the parent amounted to NT$15.64 billion.

Earnings per ordinary share for the quarter was NT$1.27. Earnings per ADS was US$0.204. The basic weighted average number of shares outstanding in 2Q23 was 12,348,986,144, compared with 12,348,880,384 shares in 1Q23 and 12,283,479,334 shares in 2Q22. The diluted weighted average number of shares outstanding was 12,526,182,161 in 2Q23, compared with 12,597,236,266 shares in 1Q23 and 12,553,373,552 shares in 2Q22. The fully diluted shares counted on June 30, 2023 were approximately 12,526,495,000.

Detailed Financials Section

Operating revenues grew slightly to NT$56.30 billion. COGS increased 3.0% to NT$36.04 billion. Gross profit grew 5.3% QoQ to NT$20.25 billion partly due to a better product mix. Operating expenses declined to NT$5.72 billion, as Sales & Marketing and G&A fell 24.6% and 18.4% respectively, while R&D increased 19.9% sequentially to NT$3.32 billion, representing 5.9% of revenue. Net other operating income was NT$1.14 billion. In 2Q23, operating income increased 8.2% QoQ to NT$15.68 billion.

COGS & Expenses

(Amount: NT$ million)

2Q23

 

1Q23

 

QoQ % change

2Q22

 

YoY % change

Operating Revenues

56,296

 

54,209

 

3.8

 

72,055

 

(21.9

)

COGS

(36,044

)

(34,985

)

3.0

 

(38,583

)

(6.6

)

Depreciation

(8,467

)

(8,439

)

0.3

 

(9,616

)

(11.9

)

Other Mfg. Costs

(27,577

)

(26,546

)

3.9

 

(28,967

)

(4.8

)

Gross Profit

20,252

 

19,224

 

5.3

 

33,472

 

(39.5

)

Gross Margin (%)

36.0

%

35.5

%

 

46.5

%

 

Operating Expenses

(5,718

)

(5,780

)

(1.1

)

(6,706

)

(14.7

)

G&A

(1,715

)

(2,102

)

(18.4

)

(2,579

)

(33.5

)

Sales & Marketing

(716

)

(950

)

(24.6

)

(915

)

(21.7

)

R&D

(3,317

)

(2,767

)

19.9

 

(3,209

)

3.4

 

Expected Credit Impairment gain (loss)

30

 

39

 

(21.6

)

(3

)

-

 

Net Other Operating Income & Expenses

1,141

 

1,037

 

10.0

 

1,398

 

(18.4

)

Operating Income

15,675

 

14,481

 

8.2

 

28,164

 

(44.3

)

Net non-operating income in 2Q23 was NT$2.81 billion, primarily reflecting the NT$1.04 billion in net investment gain, the NT$0.97 billion in net interest income and the NT$0.80 billion in exchange gain.

Non-Operating Income and Expenses

(Amount: NT$ million)

2Q23

 

1Q23

 

2Q22

 

Non-Operating Income and Expenses

2,810

 

4,647

 

(2,586

)

Net Interest Income and Expenses

974

 

908

 

(163

)

Net Investment Gain and Loss

1,042

 

3,987

 

(3,675

)

Exchange Gain and Loss

799

 

(239

)

1,361

 

Other Gain and Loss

(5

)

(9

)

(109

)

In 2Q23, cash inflow from operating activities was NT$13.76 billion. Cash outflow from investing activities amounted to NT$23.67 billion, which included NT$24.99 billion in capital expenditure, resulting in free cash outflow of NT$11.23 billion. Cash inflow from financing was NT$1.06 billion, primarily from a NT$0.94 billion in bank loans and a NT$0.29 billion in the increase in deposits-in. Net cash outflow in 2Q23 totaled NT$8.74 billion. Over the next 12 months, the company expects to repay NT$1.13 billion in bank loans.

Cash Flow Summary

(Amount: NT$ million)

For the 3-Month Period Ended Jun. 30, 2023

For the 3-Month Period Ended Mar. 31, 2023

Cash Flow from Operating Activities

13,760

 

26,964

 

Net income before tax

18,485

 

19,128

 

Depreciation & Amortization

9,931

 

9,903

 

Share of profit of associates and

joint ventures

(726

)

(3,248

)

Income tax paid

(11,845

)

(2,936

)

Changes in working capital & others

(2,085

)

4,117

 

Cash Flow from Investing Activities

(23,667

)

(29,586

)

Decrease in financial assets measured at amortized cost

60

 

598

 

Acquisition of PP&E

(24,139

)

(29,756

)

Acquisition of intangible assets

(684

)

(528

)

Others

1,096

 

100

 

Cash Flow from Financing Activities

1,061

 

1,347

 

Bank loans

939

 

(485

)

Increase in deposits-in

287

 

1,991

 

Others

(165

)

(159

)

Effect of Exchange Rate

109

 

(710

)

Net Cash Flow

(8,737

)

(1,985

)

Beginning balance

171,834

 

173,819

 

Ending balance

163,097

 

171,834

 

Cash and cash equivalents slightly decreased to NT$163.10 billion. Days of inventory increased by 2 days to 85 days.

Current Assets

(Amount: NT$ billion)

2Q23

1Q23

2Q22

Cash and Cash Equivalents

163.10

171.83

183.72

Accounts Receivable

30.62

27.07

42.88

Days Sales Outstanding

47

54

51

Inventories, net

34.55

32.68

27.34

Days of Inventory

85

83

62

Total Current Assets

239.03

241.97

265.78

Current liabilities increased to NT$142.98 billion partly due to the NT$45.02 in dividends payable. Long-term credit/bonds decreased to NT$36.06 billion. Total liabilities increased to NT$226.31 billion, leading to a debt to equity ratio of 69%.

Liabilities

(Amount: NT$ billion)

2Q23

1Q23

2Q22

Total Current Liabilities

142.98

105.89

131.81

Accounts Payable

8.83

9.21

9.95

Short-Term Credit / Bonds

11.59

9.77

13.22

Payables on Equipment

13.01

18.44

11.60

Dividends Payable

45.02

-

-

Other

64.53

68.47

97.04

Long-Term Credit / Bonds

36.06

37.30

45.70

Long-Term Investment Liabilities

-

4.26

8.50

Total Liabilities

226.31

194.08

216.51

Debt to Equity

69%

55%

76%

Analysis of Revenue2

Revenue from Asia-Pacific grew to 56% while business from North America declined to 27% of sales. Business from Europe increased to 12% while contribution from Japan was 5%.

Revenue Breakdown by Region

Region

2Q23

1Q23

4Q22

3Q22

2Q22

North America

27%

31%

30%

23%

22%

Asia Pacific

56%

50%

54%

62%

65%

Europe

12%

11%

9%

9%

8%

Japan

5%

8%

7%

6%

5%

Revenue contribution from 22/28nm increased to 29% of the wafer revenue, while 40nm contribution was 12% of sales.

Revenue Breakdown by Geometry

Geometry

2Q23

1Q23

4Q22

3Q22

2Q22

14nm and below

0%

0%

0%

0%

0%

14nm<x<=28nm

29%

26%

28%

25%

22%

28nm<x<=40nm

12%

15%

17%

17%

18%

40nm<x<=65nm

23%

19%

17%

18%

19%

65nm<x<=90nm

10%

10%

9%

8%

7%

90nm<x<=0.13um

10%

12%

12%

12%

12%

0.13um<x<=0.18um

9%

10%

10%

10%

12%

0.18um<x<=0.35um

5%

6%

5%

8%

8%

0.5um and above

2%

2%

2%

2%

2%

Revenue from fabless customers accounted for 79% of revenue.

Revenue Breakdown by Customer Type

Customer Type

2Q23

1Q23

4Q22

3Q22

2Q22

Fabless

79%

77%

81%

83%

86%

IDM

21%

23%

19%

17%

14%

Revenue from the communication segment remained at 44%, while business from computer applications stayed unchanged at 9%. Business from consumer applications was 26% as other segments accounted for 21% of revenue.

Revenue Breakdown by Application (1)

Application

2Q23

1Q23

4Q22

3Q22

2Q22

Computer

9%

9%

12%

14%

16%

Communication

44%

44%

45%

45%

45%

Consumer

26%

24%

25%

27%

27%

Others

21%

23%

18%

14%

12%

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) grew slightly in 2Q23.

(To view blended ASP trend, please click here for 2Q23 ASP)

Shipment and Utilization Rate3

Wafer shipments remained flat QoQ at 1,831K in the second quarter, while quarterly capacity was 2,626K. Overall utilization rate in 2Q23 was 71%.

Wafer Shipments

 

2Q23

1Q23

4Q22

3Q22

2Q22

Wafer Shipments (8” K equivalents)

1,831

1,826

2,213

2,597

2,622

Quarterly Capacity Utilization Rate

 

2Q23

1Q23

4Q22

3Q22

2Q22

Utilization Rate

71%

70%

90%

100%+

100%+

Total Capacity (8” K equivalents)

2,626

2,522

2,543

2,539

2,528

Capacity4

Total capacity in the second quarter increased to 2,626K 8-inch equivalent wafers. Capacity will grow in the third quarter of 2023 to 2,659K 8-inch equivalent wafers, primarily reflecting the 22/28nm capacity expansion at Fab 12A Phase 6.

Annual Capacity in thousands of wafers

 

Quarterly Capacity in thousands of wafers

FAB

Geometry (um)

2022

 

2021

 

2020

 

2019

 

 

FAB

3Q23E

 

2Q23

 

1Q23

 

4Q22

WTK

6"

5 – 0.15

335

 

329

 

371

 

370

 

 

WTK

6"

83

 

82

 

80

 

85

8A

8"

3 – 0.11

765

 

755

 

802

 

825

 

 

8A

8"

207

 

207

 

189

 

192

8C

8"

0.35 – 0.11

459

 

459

 

452

 

436

 

 

8C

8"

120

 

120

 

113

 

115

8D

8"

0.18 – 0.09

410

 

380

 

371

 

359

 

 

8D

8"

111

 

109

 

101

 

103

8E

8"

0.6 – 0.14

469

 

457

 

449

 

426

 

 

8E

8"

122

 

122

 

116

 

118

8F

8"

0.18 – 0.11

550

 

514

 

485

 

434

 

 

8F

8"

145

 

145

 

136

 

138

8S

8"

0.18 – 0.11

443

 

408

 

373

 

372

 

 

8S

8"

112

 

112

 

109

 

111

8N

8"

0.5 – 0.11

952

 

917

 

917

 

831

 

 

8N

8"

250

 

248

 

244

 

245

12A

12"

0.13 – 0.014

1,170

 

1,070

 

1,044

 

997

 

 

12A

12"

333

 

321

 

305

 

301

12i

12"

0.13 – 0.040

655

 

641

 

628

 

595

 

 

12i

12"

164

 

164

 

162

 

164

12X

12"

0.080 – 0.022

314

 

284

 

217

 

203

 

 

12X

12"

80

 

80

 

78

 

80

12M

12"

0.13 – 0.040

436

 

395

 

391

 

98

 

 

12M

12"

110

 

110

 

108

 

110

Total(1)

10,031

 

9,453

 

9,188

 

8,148

 

 

Total

2,659

 

2,626

 

2,522

 

2,543

YoY Growth Rate

6

%

3

%

13

%

6

%

 

 

 

 

 

 

 

 

 

(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

CAPEX spending in 2Q23 totaled US$0.82 billion. 2023 cash-based CAPEX budget will be US$3.0 billion.

Capital Expenditure by Year - in US$ billion

Year

 

2022

 

2021

 

2020

 

2019

 

2018

CAPEX

$

2.7

$

1.8

$

1.0

$

0.6

$

0.7

2023 CAPEX Plan

8"

12"

Total

10

%

90

%

US$3.0 billion

Third Quarter 2023 Outlook & Guidance

Quarter-over-Quarter Guidance:

  • Wafer Shipments: Will decline by approximately 3-4%
  • ASP in USD: Will increase by 2%
  • Gross Profit Margin: Rising costs will erode GM by low-single digit percentage point
  • Capacity Utilization: mid-60% range
  • 2023 CAPEX: US$3.0 billion

Recent Developments / Announcements

Apr. 27, 2023

UMC Files Form 20-F for 2022 with US Securities and Exchange Commission

Apr. 28, 2023

UMC Among Highest Ranked in Corporate Governance Evaluation for 9th Consecutive Year

May 3, 2023

UMC Announces 40nm RFSOI Platform to Accelerate 5G mmWave Applications

May 10, 2023

DENSO and USJC Announce Mass Production Shipment of Automotive IGBT, Targeting Expanding Electric Vehicle Market

May 31, 2023

UMC Shareholders Approve NT$3.60 Cash Dividend at Annual Shareholders’ Meeting

Jul. 21, 2023

UMC Wins HR Asia 2023 Best Companies to Work for in Asia Award

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

Conference Call / Webcast Announcement

Wednesday, July 26, 2023

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

Dial-in numbers and Access Codes:

 

 

Taiwan Number:

 

02 3396 1191

Taiwan Toll Free:

 

0080 185 4007

USA Toll Free:

 

+1 866 212 5567

Other Areas:

 

+886 2 3396 1191

 

 

 

Access Code:

 

9509526#

A live webcast and replay of the 2Q23 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 company. The company provides high quality IC fabrication services, focusing on logic and various specialty technologies to serve all major sectors of the electronics industry. UMC’s comprehensive IC processing technologies and manufacturing solutions include logic/mixed-signal, embedded high-voltage, embedded non-volatile-memory, RFSOI and BCD. UMC has total 12 fabs in production with combined capacity of more than 850,000 8-inch equivalent wafers per month, and all of them are certified with IATF 16949 automotive quality standard. Most of UMC's 12-inch and 8-inch fabs with its core R&D are located in Taiwan, with additional ones throughout Asia. UMC is headquartered in Hsinchu, Taiwan, plus local offices in China, United States, Europe, Japan, Korea and Singapore, with worldwide total 20,000 employees. For more information, please visit: https://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 second quarter of 2023; 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 “Third Quarter of 2023 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 June 30, 2023 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)    

June 30, 2023

US$

NT$

%

Assets Current assets Cash and cash equivalents

5,239

163,097

29.5

%

Accounts receivable, net

984

30,618

5.5

%

Inventories, net

1,110

34,553

6.3

%

Other current assets

346

10,765

1.9

%

Total current assets

7,679

239,033

43.2

%

  Non-current assets Funds and investments

2,263

70,455

12.7

%

Property, plant and equipment

6,380

198,618

35.9

%

Right-of-use assets

234

7,287

1.3

%

Other non-current assets

1,215

37,803

6.9

%

Total non-current assets

10,092

314,163

56.8

%

Total assets

17,771

553,196

100.0

%

  Liabilities Current liabilities Short-term loans

5

170

0.0

%

Payables

1,839

57,254

10.4

%

Dividends payable

1,446

45,017

8.1

%

Current portion of long-term liabilities

367

11,422

2.1

%

Other current liabilities

936

29,115

5.2

%

Total current liabilities

4,593

142,978

25.8

%

  Non-current liabilities Bonds payable

578

17,988

3.2

%

Long-term loans

581

18,074

3.3

%

Lease liabilities, noncurrent

162

5,038

0.9

%

Other non-current liabilities

1,356

42,230

7.7

%

Total non-current liabilities

2,677

83,330

15.1

%

Total liabilities

7,270

226,308

40.9

%

  Equity Equity attributable to the parent company Capital

4,016

125,031

22.6

%

Additional paid-in capital

439

13,656

2.5

%

Retained earnings and other components of equity

6,035

187,858

33.9

%

Total equity attributable to the parent company

10,490

326,545

59.0

%

Non-controlling interests

11

343

0.1

%

Total equity

10,501

326,888

59.1

%

Total liabilities and equity

17,771

553,196

100.0

%

  Note:New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2023 exchange rate of NT $31.13 per U.S. Dollar. UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated Condensed Statements of Comprehensive Income Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) Except Per Share and Per ADS Data     Year over Year Comparison Quarter over Quarter Comparison Three-Month Period Ended Three-Month Period Ended June 30, 2023 June 30, 2022 Chg. June 30, 2023 March 31, 2023 Chg. US$ NT$ US$ NT$ % US$ NT$ US$ NT$ % Operating revenues

1,808

 

56,296

 

2,315

 

72,055

 

(21.9

%)

1,808

 

56,296

 

1,741

 

54,209

 

3.8

%

Operating costs

(1,157

)

(36,044

)

(1,240

)

(38,583

)

(6.6

%)

(1,157

)

(36,044

)

(1,123

)

(34,985

)

3.0

%

Gross profit

651

 

20,252

 

1,075

 

33,472

 

(39.5

%)

651

 

20,252

 

618

 

19,224

 

5.3

%

36.0

%

36.0

%

46.5

%

46.5

%

36.0

%

36.0

%

35.5

%

35.5

%

Operating expenses - Sales and marketing expenses

(23

)

(716

)

(29

)

(915

)

(21.7

%)

(23

)

(716

)

(31

)

(950

)

(24.6

%)

- General and administrative expenses

(55

)

(1,715

)

(83

)

(2,579

)

(33.5

%)

(55

)

(1,715

)

(67

)

(2,102

)

(18.4

%)

- Research and development expenses

(107

)

(3,317

)

(103

)

(3,209

)

3.4

%

(107

)

(3,317

)

(89

)

(2,767

)

19.9

%

- Expected credit impairment gain (loss)

1

 

30

 

(0

)

(3

)

-

 

1

 

30

 

1

 

39

 

(21.6

%)

Subtotal

(184

)

(5,718

)

(215

)

(6,706

)

(14.7

%)

(184

)

(5,718

)

(186

)

(5,780

)

(1.1

%)

Net other operating income and expenses

37

 

1,141

 

45

 

1,398

 

(18.4

%)

37

 

1,141

 

33

 

1,037

 

10.0

%

Operating income

504

 

15,675

 

905

 

28,164

 

(44.3

%)

504

 

15,675

 

465

 

14,481

 

8.2

%

27.8

%

27.8

%

39.1

%

39.1

%

27.8

%

27.8

%

26.7

%

26.7

%

  Net non-operating income and expenses

90

 

2,810

 

(83

)

(2,586

)

-

 

90

 

2,810

 

149

 

4,647

 

(39.5

%)

Income from continuing operations   before income tax

594

 

18,485

 

822

 

25,578

 

(27.7

%)

594

 

18,485

 

614

 

19,128

 

(3.4

%)

32.8

%

32.8

%

35.5

%

35.5

%

32.8

%

32.8

%

35.3

%

35.3

%

  Income tax expense

(83

)

(2,588

)

(132

)

(4,088

)

(36.7

%)

(83

)

(2,588

)

(88

)

(2,743

)

(5.7

%)

Net income

511

 

15,897

 

690

 

21,490

 

(26.0

%)

511

 

15,897

 

526

 

16,385

 

(3.0

%)

28.2

%

28.2

%

29.8

%

29.8

%

28.2

%

28.2

%

30.2

%

30.2

%

  Other comprehensive income (loss)

(8

)

(238

)

(120

)

(3,749

)

(93.7

%)

(8

)

(238

)

107

 

3,325

 

-

 

  Total comprehensive income (loss)

503

 

15,659

 

570

 

17,741

 

(11.7

%)

503

 

15,659

 

633

 

19,710

 

(20.6

%)

  Net income attributable to:   Shareholders of the parent

502

 

15,641

 

685

 

21,327

 

(26.7

%)

502

 

15,641

 

520

 

16,183

 

(3.3

%)

  Non-controlling interests

9

 

256

 

5

 

163

 

56.3

%

9

 

256

 

6

 

202

 

26.9

%

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

495

 

15,403

 

565

 

17,578

 

(12.4

%)

495

 

15,403

 

627

 

19,508

 

(21.0

%)

  Non-controlling interests

8

 

256

 

5

 

163

 

56.3

%

8

 

256

 

6

 

202

 

26.9

%

  Earnings per share-basic

0.041

 

1.27

 

0.056

 

1.74

 

0.041

 

1.27

 

0.042

 

1.31

 

Earnings per ADS (2)

0.204

 

6.35

 

0.279

 

8.70

 

0.204

 

6.35

 

0.210

 

6.55

 

Weighted average number of shares outstanding (in millions)

12,349

 

12,283

 

12,349

 

12,349

 

    Notes: (1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2023 exchange rate of NT $31.13 per U.S. Dollar. (2) 1 ADS equals 5 common shares. UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated Condensed Statements of Comprehensive Income Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) Except Per Share and Per ADS Data  

For the Three-Month Period Ended

For the Six-Month Period Ended

June 30, 2023

June 30, 2023

US$

NT$

%

US$

NT$

%

Operating revenues

1,808

 

56,296

 

100.0

%

3,550

 

110,506

 

100.0

%

Operating costs

(1,157

)

(36,044

)

(64.0

%)

(2,282

)

(71,029

)

(64.3

%)

Gross profit

651

 

20,252

 

36.0

%

1,268

 

39,477

 

35.7

%

    Operating expenses - Sales and marketing expenses

(23

)

(716

)

(1.3

%)

(54

)

(1,667

)

(1.5

%)

- General and administrative expenses

(55

)

(1,715

)

(3.1

%)

(122

)

(3,817

)

(3.5

%)

- Research and development expenses

(107

)

(3,317

)

(5.9

%)

(195

)

(6,084

)

(5.5

%)

- Expected credit impairment gain

1

 

30

 

0.1

%

2

 

69

 

0.1

%

Subtotal

(184

)

(5,718

)

(10.2

%)

(369

)

(11,499

)

(10.4

%)

Net other operating income and expenses

37

 

1,141

 

2.0

%

70

 

2,177

 

2.0

%

Operating income

504

 

15,675

 

27.8

%

969

 

30,155

 

27.3

%

  Net non-operating income and expenses

90

 

2,810

 

5.0

%

239

 

7,459

 

6.7

%

Income from continuing operations   before income tax

594

 

18,485

 

32.8

%

1,208

 

37,614

 

34.0

%

    Income tax expense

(83

)

(2,588

)

(4.6

%)

(171

)

(5,333

)

(4.8

%)

Net income

511

 

15,897

 

28.2

%

1,037

 

32,281

 

29.2

%

  Other comprehensive income (loss)

(8

)

(238

)

(0.4

%)

99

 

3,088

 

2.8

%

  Total comprehensive income (loss)

503

 

15,659

 

27.8

%

1,136

 

35,369

 

32.0

%

  Net income attributable to:   Shareholders of the parent

502

 

15,641

 

27.8

%

1,022

 

31,824

 

28.8

%

  Non-controlling interests

9

 

256

 

0.4

%

15

 

457

 

0.4

%

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

495

 

15,403

 

27.4

%

1,121

 

34,911

 

31.6

%

  Non-controlling interests

8

 

256

 

0.4

%

15

 

458

 

0.4

%

  Earnings per share-basic

0.041

 

1.27

 

0.083

 

2.58

 

Earnings per ADS (2)

0.204

 

6.35

 

0.414

 

12.90

 

  Weighted average number of shares   outstanding (in millions)

12,349

 

12,349

 

  Notes: (1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2023 exchange rate of NT $31.13 per U.S. Dollar. (2) 1 ADS equals 5 common shares. UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated Condensed Statement of Cash Flows For The Six-Month Period Ended June 30, 2023 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)   US$ NT$ Cash flows from operating activities : Net income before tax

1,208

 

37,614

 

Depreciation & Amortization

637

 

19,834

 

Share of profit of associates and joint ventures

(128

)

(3,974

)

Income tax paid

(475

)

(14,781

)

Changes in working capital & others

66

 

2,031

 

Net cash provided by operating activities

1,308

 

40,724

 

  Cash flows from investing activities : Decrease in financial assets measured at amortized cost

21

 

658

 

Acquisition of property, plant and equipment

(1,731

)

(53,895

)

Acquisition of intangible assets

(39

)

(1,212

)

Others

38

 

1,196

 

Net cash used in investing activities

(1,711

)

(53,253

)

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

5

 

170

 

Proceeds from long-term loans

130

 

4,050

 

Repayments of long-term loans

(121

)

(3,766

)

Increase in guarantee deposits

73

 

2,278

 

Others

(10

)

(324

)

Net cash provided by financing activities

77

 

2,408

 

  Effect of exchange rate changes on cash and cash equivalents

(19

)

(601

)

Net decrease in cash and cash equivalents

(345

)

(10,722

)

  Cash and cash equivalents at beginning of period

5,584

 

173,819

 

  Cash and cash equivalents at end of period

5,239

 

163,097

 

  Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2023 exchange rate of NT $31.13 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 June 30, 2023, the three-month period ending March 31, 2023, and the equivalent three-month period that ended June 30, 2022. For all 2Q23 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the June 30, 2023 exchange rate of NT$ 31.13 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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