UMC Reports First Quarter 2020 Results

2Q20 outlook stable; company prioritizes medical related ICs shipments amid COVID-19

First Quarter 2020 Overview¹:

• Revenue: NT$42.27 billion (US$1.40 billion)
• Gross margin: 19.2%
• Foundry operating margin: 8.2%
• Foundry capacity utilization rate: 93%
• Net income attributable to stockholders of the parent: NT$2.21 billion (US$73 million)
• Earnings per share: NT$0.19; earnings per ADS: US$0.031

TAIPEI, Taiwan–(BUSINESS WIRE)–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 2020.

First quarter consolidated revenue was NT$42.27 billion, up 1.0% QoQ from NT$41.85 billion in 4Q19 and up 29.7% YoY from NT$32.58 billion in 1Q19. Consolidated gross margin for 1Q20 was 19.2%. Net income attributable to the stockholders of the parent was NT$2.21 billion, with earnings per ordinary share of NT$0.19.

SC Chien, co-president of UMC, said, “In the first quarter, foundry revenue grew 1.0% QoQ to NT$42.27 billion, leading to a foundry operating margin of 8.2%. Utilization rate increased slightly to 93%, bringing wafer shipments to 2.15 million 8-inch equivalent wafers, primarily attributed to display driver demand in consumer and communication devices. The demand in consumer ICs partially reflected work-from-home initiatives adopted in many areas around the world to combat the spread of COVID-19. As this pandemic continues to impact populations across the globe, UMC has given priority to all wafer manufacturing of medical related ICs so that hospitals and care centers receive the equipment they need in the shortest time possible in order to deal with the coronavirus. We will continue to commit all resources within our means to accelerate the shipments of healthcare-related ICs in the universal fight against COVID-19.”

Co-president Chien further commented, “Looking into the second quarter of 2020, despite significantly higher levels of uncertainty caused by the COVID-19 pandemic, current outlook indicates slightly higher wafer demand, mainly supported by inventory replenishment across computer peripheral and consumer electronics end markets. We will continue to monitor market dynamics; meanwhile we anticipate a surge in the number of customer 28nm tape outs in the first half of 2020. While we strive to maintain the business momentum attained during the first quarter, UMC’s corporate strategy of delivering a high dividend payout ratio remains intact. In Q1, our Board of Directors proposed to distribute a cash dividend of approximately NT$0.75 per share, subject to shareholder approval during the annual shareholder meeting (AGM). We will also continue to strengthen our financial structure while gaining additional market share by executing on our technology development and corporate strategy. As the world navigates the COVID-19 situation, UMC is committed to the philosophy of “employee care, environmental focus and public service” while furthering sustainable development and corporate social responsibility. We will confront this challenge together with our employees, shareholders, and suppliers. We also deeply appreciate the efforts of all the front line professionals confronting this pandemic and will continue to support our communities in Taiwan and abroad.”

Summary of Operating Results

Operating Results
(Amount: NT$ million)	1Q20		4Q19		QoQ % change		1Q19		YoY % change
Operating Revenues	42,268		41,849		1.0		32,583		29.7
Gross Profit	8,122		6,968		16.6		2,262		259.1
Operating Expenses	(5,722	)	(6,165	)	(7.2	)	(4,932	)	16.0
Net Other Operating Income and Expenses	1,014		1,215		(16.5	)	1,073		(5.5	)
Operating Income (Loss)	3,414		2,018		69.2		(1,597	)	–
Net Non-Operating Income and Expenses	(2,592	)	946		–		1,247		–
Net Income Attributable to Stockholders of the Parent	2,207		3,837		(42.5	)	1,201		83.7
EPS (NT$ per share)	0.19		0.33				0.10
(US$ per ADS)	0.031		0.055				0.017

Operating revenues in 1Q20 increased 1.0% to NT$42.27 billion, including NT$42.27 billion from the foundry segment. Revenue contribution from 40nm and below technologies increased to 34%. Gross profit increased 16.6% quarterly to NT$8.12 billion, or 19.2% of revenue. Operating expenses declined 7.2% to NT$5.72 billion. Net other operating income declined 16.5% to NT$1.01 billion, leading to an operating income of NT$3.41 billion. Net non-operating expenses was NT$2.59 billion, including NT$1.97 billion in net investment loss. Net income attributable to stockholders of the parent was NT$2.21 billion.

Earnings per ordinary share for the quarter was NT$0.19. Earnings per ADS was US$0.031. The basic weighted average number of outstanding shares in 1Q20 was 11,782,936,260, compared with 11,708,869,140 shares in 4Q19 and 11,908,706,645 shares in 1Q19. The diluted weighted average number of outstanding shares was 13,087,825,472 in 1Q20, compared with 13,073,000,039 shares in 4Q19 and 13,238,181,278 shares in 1Q19. The fully diluted share count on March 31, 2020 was approximately 13,103,904,000.

Detailed Financials Section

COGS & Expenses
(Amount: NT$ million)	1Q20		4Q19		QoQ % change		1Q19		YoY % change
Operating Revenues	42,268		41,849		1.0		32,583		29.7
COGS	(34,146	)	(34,881	)	(2.1	)	(30,321	)	12.6
Depreciation	(11,124	)	(11,069	)	0.5		(10,497	)	6.0
Other Mfg. Costs	(23,022	)	(23,812	)	(3.3	)	(19,824	)	16.1
Gross Profit	8,122		6,968		16.6		2,262		259.1
Gross Margin (%)	19.2	%	16.7	%			6.9	%
Operating Expenses	(5,722	)	(6,165	)	(7.2	)	(4,932	)	16.0
G&A	(1,543	)	(1,603	)	(3.7	)	(1,236	)	24.8
Sales & Marketing	(1,040	)	(996	)	4.3		(889	)	17.0
R&D	(3,185	)	(3,453	)	(7.8	)	(2,807	)	13.5
Expected Credit Impairment Gain (Loss)	46		(113	)	–		–		100.0
Net Other Operating Income & Expenses	1,014		1,215		(16.5	)	1,073		(5.5	)
Operating Income (Loss)	3,414		2,018		69.2		(1,597	)	–

Operating revenues grew 1.0% QoQ to NT$42.27 billion. COGS declined 2.1% to NT$34.15 billion, as other manufacturing costs declined 3.3% to NT$23.02 billion due to flattish depreciation of NT$11.12 billion. Gross profit grew 16.6% to NT$8.12 billion. Operating expenses decreased 7.2% to NT$5.72 billion. R&D expenses fell 7.8% sequentially to NT$3.19 billion, representing 7.5% of 1Q20 operating revenues. Sales & Marketing expenses were up 4.3% to NT$1.04 billion. Net other operating income was NT$1.01 billion. In 1Q20, operating income totaled NT$3.41 billion.

Non-Operating Income and Expenses
(Amount: NT$ million)	1Q20		4Q19		1Q19
Non-Operating Income and Expenses	(2,592	)	946		1,247
Net Interest Income and Expenses	(368	)	(468	)	(473	)
Net Investment Gain and Loss	(1,974	)	1,064		1,228
Exchange Gain and Loss	(148	)	188		507
Other Gain and Loss	(102	)	162		(15	)

Net non-operating expenses in 1Q20 was NT$2.59 billion, resulting from NT$1.97 billion in net investment loss, NT$368 million in net interest expense and NT$148 million in exchange loss.

Cash Flow Summary
(Amount: NT$ million)	For the 3-Month Period Ended Mar. 31, 2020		For the 3-Month Period Ended Dec. 31, 2019
Cash Flow from Operating Activities	14,732		37,533
Net income before tax	822		2,964
Depreciation & Amortization	12,497		12,775
Expected credit impairment loss (gain)	(46	)	113
Share of loss (profit) of associates and joint ventures	847		(642	)
Income tax paid	(151	)	(52	)
Changes in working capital & others	763		22,375
Cash Flow from Investing Activities	(9,111	)	(17,844	)
Acquisition of subsidiaries	–		(12,801	)
Acquisition of PP&E	(3,631	)	(3,502	)
Acquisition of intangible assets	(453	)	(935	)
Increase in other financial assets	(5,114	)	–
Others	87		(606	)
Cash Flow from Financing Activities	(5,849	)	(9,716	)
Bank loans	(2,563	)	(9,551	)
Redemption of bonds	(2,500	)	–
Cash dividends	–		3
Others	(786	)	(168	)
Effect of Exchange Rate	(98	)	(1,238	)
Net Cash Flow	(326	)	8,735
Beginning balance	95,492		86,755
Changes in non-current assets held for sale	–		2
Ending balance	95,166		95,492

In 1Q20, cash inflow from operating activities was NT$14.73 billion. Cash outflow from investing activities totaled NT$9.11 billion, which included NT$3.96 billion in capital expenditure, resulting in free cash flow of NT$10.77 billion. Cash outflow from financing activities totaled NT$5.85 billion, primarily from NT$2.56 billion in the repayment of bank loans and NT$2.50 billion in redemption of bonds. Net cash outflow in 1Q20 was NT$326 million. Over the next 12 months, the company expects to repay NT$4.74 billion in bank loans.

Current Assets
(Amount: NT$ billion)	1Q20	4Q19	1Q19
Cash and Cash Equivalents	95.17	95.49	88.74
Notes & Accounts Receivable	28.57	25.73	22.99
Days Sales Outstanding	59	54	66
Inventories, net	22.13	21.72	18.87
Days of Inventory	59	55	56
Total Current Assets	159.60	153.76	146.80

Cash and cash equivalents decreased slightly to NT$95.17 billion. Days of inventory increased to 59 days.

Liabilities
(Amount: NT$ billion)	1Q20		4Q19		1Q19
Total Current Liabilities	61.10		72.71		52.64
Notes & Accounts Payable	8.92		8.88		6.78
Short-Term Credit / Bonds	25.35		36.81		23.35
Payables on Equipment	2.78		3.03		2.95
Other	24.05		23.99		19.56
Long-Term Credit / Bonds	47.75		47.89		64.98
Long-Term Investment Liabilities	19.89		20.09		20.99
Total Liabilities	149.64		162.97		164.32
Debt to Equity	71	%	79	%	78	%

Current liabilities declined to NT$61.10 billion. Total liabilities decreased to NT$149.64 billion, leading to a debt to equity ratio of 71%.

Analysis of Revenue² for Foundry Segment

Revenue Breakdown by Region
Region	1Q20		4Q19		3Q19		2Q19		1Q19
North America	29	%	30	%	33	%	31	%	32	%
Asia Pacific	56	%	55	%	59	%	59	%	57	%
Europe	6	%	6	%	6	%	7	%	7	%
Japan	9	%	9	%	2	%	3	%	4	%

Revenue from Asia Pacific increased to 56%, while revenue contribution from North American customers declined to 29%. Revenue from Japan remained at 9% while European business stayed at 6%.

Revenue Breakdown by Geometry
Geometry	1Q20		4Q19		3Q19		2Q19		1Q19
14nm and below	0	%	0	%	0	%	0	%	0	%
14nm<x<=28nm	9	%	10	%	12	%	13	%	10	%
28nm<x<=40nm	25	%	22	%	26	%	24	%	20	%
40nm<x<=65nm	16	%	16	%	14	%	14	%	14	%
65nm<x<=90nm	15	%	18	%	12	%	12	%	12	%
90nm<x<=0.13um	11	%	11	%	11	%	14	%	15	%
0.13um<x<=0.18um	13	%	12	%	13	%	12	%	15	%
0.18um<x<=0.35um	8	%	8	%	9	%	8	%	11	%
0.5um and above	3	%	3	%	3	%	3	%	3	%

Revenue contribution from 28nm declined to 9% while 40nm business represented 25% of sales.

Revenue Breakdown by Customer Type
Customer Type	1Q20		4Q19		3Q19		2Q19		1Q19
Fabless	88	%	87	%	92	%	93	%	94	%
IDM	12	%	13	%	8	%	7	%	6	%

Revenue from fabless customers was 88% of revenue.

Revenue Breakdown by Application (1)
Application	1Q20	4Q19	3Q19	2Q19	1Q19
Computer	13%	13%	13%	14%	15%
Communication	54%	54%	54%	52%	48%
Consumer	24%	24%	26%	28%	29%
Others	9%	9%	7%	6%	8%

Revenue from communication remained flat at 54%, while business from consumer applications and computing peripherals remained unchanged at 24% and 13% respectively.

(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. Communication consists of handset components, broadband, WLAN, 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 for Foundry Segment

Blended average selling price (ASP) in 1Q20 declined slightly.

(To view ASP trend, visit http://www.umc.com/english/investors/1Q20_ASP_trend.asp)

Shipment and Utilization Rate³ for Foundry Segment

Wafer Shipments
	1Q20		4Q19		3Q19		2Q19		1Q19
Wafer Shipments (8” K equivalents)	2,148		2,042		1,806		1,730		1,611
Quarterly Capacity Utilization Rate
	1Q20		4Q19		3Q19		2Q19		1Q19
Utilization Rate	93	%	92	%	91	%	88	%	83	%
Total Capacity (8” K equivalents)	2,278		2,237		2,004		1,970		1,937

In 1Q20, wafer shipments increased 5.2% QoQ to 2,148K, while quarterly capacity rose 1.8% QoQ to 2,278K. As a result, the overall utilization rate in 1Q20 was 93%.

Capacity⁴ for Foundry Segment

Total capacity in the first quarter reached 2,278K 8-inch equivalent wafers. We expect that second quarter capacity will grow to 2,291K 8-inch equivalent wafers, mainly reflecting the capacity de-bottlenecking efforts at Fab 12A, Fab 12i and Fab 8N.

Annual Capacity in thousands of wafers												Quarterly Capacity in thousands of wafers
FAB		Geometry (um)	2019		2018		2017		2016			FAB	2Q20E	1Q20	4Q19	3Q19
WTK	6″	3.5 – 0.45	370		396		422		423			WTK	93	92	93	93
Fab 8A	8″	0.5 – 0.25	825		825		825		827			Fab 8A	201	200	207	207
Fab 8C	8″	0.35 – 0.11	436		383		357		348			Fab 8C	113	112	111	111
Fab 8D	8″	0.13 – 0.09	359		347		341		342			Fab 8D	93	92	90	90
Fab 8E	8″	0.5 – 0.18	426		418		418		419			Fab 8E	113	112	111	107
Fab 8F	8″	0.18 – 0.11	434		431		417		401			Fab 8F	122	121	110	110
Fab 8S	8″	0.18 – 0.11	372		372		347		336			Fab 8S	93	93	93	93
Fab 8N	8″	0.5 – 0.11	831		771		753		750			Fab 8N	230	228	218	208
Fab 12A	12″	0.13 – 0.014	997		997		970		885			Fab 12A	261	260	250	250
Fab 12i	12″	0.13 – 0.040	595		555		537		584			Fab 12i	155	154	155	155
Fab 12X	12″	0.040 – 0.028	203		183		97		9			Fab 12X	53	52	51	51
Fab 12M	12″	0.090 – 0.040	98		–		–		–			Fab 12M	98	97	98	–
Total(1)			8,148		7,673		7,304		6,983			Total	2,291	2,278	2,237	2,004
YoY Growth Rate			6	%	5	%	5	%	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. Capacity total figures are expressed in 8-inch equivalent wafers.

CAPEX for Foundry Segment

Capital Expenditure by Year – in US$ billion
Year		2019		2018		2017		2016		2015
CAPEX	$	0.6	$	0.7	$	1.4	$	2.8	$	1.9

2020 CAPEX Plan
8″		12″		Total
15	%	85	%	US$1.0 billion

CAPEX spending in 1Q20 was US$131 million. 2020 CAPEX is budgeted at US$1.0 billion.

Second Quarter of 2020 Outlook & Guidance

Quarter-over-Quarter Guidance:

• Wafer Shipments: To increase by 1-2%
• ASP in USD: To increase by 1-2%
• Profitability: Gross profit margin will be approximately 20%
• Foundry Segment Capacity Utilization: mid-90% range
• 2020 CAPEX for Foundry Segment: US$1 billion

Recent Developments / Announcements

Mar 23, 2020	Faraday’s 28Gbps SerDes IP Now Available on UMC’s 28HPC Process
Feb 26, 2020	UMC Board of Directors Announces Proposals for its Annual Shareholders Meeting
Feb 5, 2020	UMC 4Q 2019 Financial Results
Please visit UMC’s website for further details regarding the above announcements

Conference Call / Webcast Announcement

Monday, April 27, 2020

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 1Q20 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 on 8″ & 12″ wafers 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 19,000 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 sales for first quarter; product releases and market shares; opportunities in the 5G and IoT markets; anticipated wafer demands in market segments; execution of corporate strategies; repayment of bank loans; expected foundry capacities; the ability to obtain new business opportunities; and information under the heading “First Quarter of 2020 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 risks 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 –

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UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheet
As of March 31, 2020
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
	March 31, 2020
	US$		NT$		%
Assets
Current assets
Cash and cash equivalents	3,148		95,166		26.4	%
Notes & Accounts receivable, net	945		28,569		7.9	%
Inventories, net	732		22,126		6.1	%
Other current assets	454		13,734		3.9	%
Total current assets	5,279		159,595		44.3	%
Non-current assets
Funds and investments	1,187		35,887		10.0	%
Property, plant and equipment	4,669		141,151		39.2	%
Right-of-use assets	265		7,998		2.2	%
Other non-current assets	524		15,826		4.3	%
Total non-current assets	6,645		200,862		55.7	%
Total assets	11,924		360,457		100.0	%
Liabilities
Current liabilities
Short-term loans	312		9,432		2.6	%
Payables	912		27,584		7.7	%
Current portion of long-term liabilities	527		15,919		4.4	%
Other current liabilities	270		8,169		2.2	%
Total current liabilities	2,021		61,104		16.9	%
Non-current liabilities
Bonds payable	618		18,688		5.2	%
Long-term loans	961		29,059		8.1	%
Lease liabilities, noncurrent	171		5,170		1.4	%
Other non-current liabilities	1,179		35,616		9.9	%
Total non-current liabilities	2,929		88,533		24.6	%
Total liabilities	4,950		149,637		41.5	%
Equity
Equity attributable to the parent company
Capital	4,043		122,224		33.9	%
Additional paid-in capital	1,368		41,345		11.5	%
Retained earnings, exchange differences on translation of foreign operations and unrealized gains or losses on financial assets measured at fair value through other comprehensive income	1,565		47,302		13.1	%
Treasury stock	(4	)	(120	)	(0.0	%)
Total equity attributable to the parent company	6,972		210,751		58.5	%
Non-controlling interests	2		69		0.0	%
Total equity	6,974		210,820		58.5	%
Total liabilities and equity	11,924		360,457		100.0	%

Note：New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2020 exchange rate of NT $30.23 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, 2020						March 31, 2019						Chg.			March 31, 2020						December 31, 2019						Chg.
	US$			NT$			US$			NT$			%			US$			NT$			US$			NT$			%
Operating revenues	1,398			42,268			1,078			32,583			29.7	%		1,398			42,268			1,384			41,849			1.0	%
Operating costs	(1,129	)		(34,146	)		(1,003	)		(30,321	)		12.6	%		(1,129	)		(34,146	)		(1,154	)		(34,881	)		(2.1	%)
Gross profit	269			8,122			75			2,262			259.1	%		269			8,122			230			6,968			16.6	%
	19.2	%		19.2	%		6.9	%		6.9	%					19.2	%		19.2	%		16.7	%		16.7	%
Operating expenses
– Sales and marketing expenses	(34	)		(1,040	)		(29	)		(889	)		17.0	%		(34	)		(1,040	)		(33	)		(996	)		4.3	%
– General and administrative expenses	(52	)		(1,543	)		(41	)		(1,236	)		24.8	%		(52	)		(1,543	)		(53	)		(1,603	)		(3.7	%)
– Research and development expenses	(105	)		(3,185	)		(93	)		(2,807	)		13.5	%		(105	)		(3,185	)		(114	)		(3,453	)		(7.8	%)
– Expected credit impairment gain (loss)	2			46			–			–			100.0	%		2			46			(4	)		(113	)		–
Subtotal	(189	)		(5,722	)		(163	)		(4,932	)		16.0	%		(189	)		(5,722	)		(204	)		(6,165	)		(7.2	%)
Net other operating income and expenses	33			1,014			35			1,073			(5.5	%)		33			1,014			41			1,215			(16.5	%)
Operating income (loss)	113			3,414			(53	)		(1,597	)		–			113			3,414			67			2,018			69.2	%
	8.1	%		8.1	%		(4.9	%)		(4.9	%)					8.1	%		8.1	%		4.8	%		4.8	%
Net non-operating income and expenses	(86	)		(2,592	)		41			1,247			–			(86	)		(2,592	)		31			946			–
Income (loss) from continuing operations before income tax	27			822			(12	)		(350	)		–			27			822			98			2,964			(72.3	%)
	1.9	%		1.9	%		(1.1	%)		(1.1	%)					1.9	%		1.9	%		7.1	%		7.1	%
Income tax benefit	14			408			15			443			(7.7	%)		14			408			6			191			113.9	%
Net income	41			1,230			3			93			1,228.5	%		41			1,230			104			3,155			(61.0	%)
	2.9	%		2.9	%		0.3	%		0.3	%					2.9	%		2.9	%		7.5	%		7.5	%
Other comprehensive income (loss)	(123	)		(3,714	)		120			3,614			–			(123	)		(3,714	)		(51	)		(1,538	)		141.5	%
Total comprehensive income (loss)	(82	)		(2,484	)		123			3,707			–			(82	)		(2,484	)		53			1,617			–
Net income attributable to:
Stockholders of the parent	73			2,207			40			1,201			83.7	%		73			2,207			127			3,837			(42.5	%)
Non-controlling interests	(32	)		(977	)		(37	)		(1,108	)		(11.9	%)		(32	)		(977	)		(23	)		(682	)		43.3	%
Comprehensive income (loss) attributable to:
Stockholders of the parent	(54	)		(1,634	)		159			4,813			–			(54	)		(1,634	)		76			2,291			–
Non-controlling interests	(28	)		(850	)		(36	)		(1,106	)		(23.1	%)		(28	)		(850	)		(23	)		(674	)		26.2	%
Earnings per share-basic	0.006			0.19			0.003			0.10						0.006			0.19			0.011			0.33
Earnings per ADS (2)	0.031			0.95			0.017			0.50						0.031			0.95			0.055			1.65
Weighted average number of shares
outstanding (in millions)				11,783						11,909									11,783						11,709

Notes:

(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2020 exchange rate of NT $30.23 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, 2020									March 31, 2020
	US$			NT$			%			US$			NT$			%
Operating revenues	1,398			42,268			100.0	%		1,398			42,268			100.0	%
Operating costs	(1,129	)		(34,146	)		(80.8	%)		(1,129	)		(34,146	)		(80.8	%)
Gross profit	269			8,122			19.2	%		269			8,122			19.2	%
Operating expenses
– Sales and marketing expenses	(34	)		(1,040	)		(2.5	%)		(34	)		(1,040	)		(2.5	%)
– General and administrative expenses	(52	)		(1,543	)		(3.6	%)		(52	)		(1,543	)		(3.6	%)
– Research and development expenses	(105	)		(3,185	)		(7.5	%)		(105	)		(3,185	)		(7.5	%)
– Expected credit impairment gain	2			46			0.1	%		2			46			0.1	%
Subtotal	(189	)		(5,722	)		(13.5	%)		(189	)		(5,722	)		(13.5	%)
Net other operating income and expenses	33			1,014			2.4	%		33			1,014			2.4	%
Operating income	113			3,414			8.1	%		113			3,414			8.1	%
Net non-operating income and expenses	(86	)		(2,592	)		(6.2	%)		(86	)		(2,592	)		(6.2	%)
Income from continuing operations before income tax	27			822			1.9	%		27			822			1.9	%
Income tax benefit	14			408			1.0	%		14			408			1.0	%
Net income	41			1,230			2.9	%		41			1,230			2.9	%
Other comprehensive income (loss)	(123	)		(3,714	)		(8.8	%)		(123	)		(3,714	)		(8.8	%)
Total comprehensive income (loss)	(82	)		(2,484	)		(5.9	%)		(82	)		(2,484	)		(5.9	%)
Net income attributable to:
Stockholders of the parent	73			2,207			5.2	%		73			2,207			5.2	%
Non-controlling interests	(32	)		(977	)		(2.3	%)		(32	)		(977	)		(2.3	%)
Comprehensive income (loss) attributable to:
Stockholders of the parent	(54	)		(1,634	)		(3.9	%)		(54	)		(1,634	)		(3.9	%)
Non-controlling interests	(28	)		(850	)		(2.0	%)		(28	)		(850	)		(2.0	%)
Earnings per share-basic	0.006			0.19						0.006			0.19
Earnings per ADS (2)	0.031			0.95						0.031			0.95
Weighted average number of shares outstanding (in millions)				11,783									11,783

Contacts

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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