3Q20 operating income grew 22% QoQ
Company posts 3Q20 net income of NT$9.11 billion or NT$0.75 EPS�
Third Quarter 2020 Overview1:
- Revenue: NT$44.87 billion (US$1.54 billion)
- Gross margin: 21.8%; Operating margin: 15.9%
- Revenue from 28nm: 14%
- Capacity utilization rate: 97%
- Net income attributable to stockholders of the parent: NT$9.11 billion (US$313 million)
- Earnings per share: NT$0.75; earnings per ADS: US$0.129
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 third quarter of 2020.
Third quarter consolidated revenue was NT$44.87 billion, compared to NT$44.39 billion in 2Q20 and up 18.9% YoY from NT$37.74 billion in 3Q19. Consolidated gross margin for 3Q20 was 21.8%. Net income attributable to the stockholders of the parent was NT$9.11 billion, with earnings per ordinary share of NT$0.75.
Jason Wang, co-president of UMC, said, �During the third quarter, consolidated operating margin reached 15.9%, while utilization rate remained firm at 97%. Wafer shipments reached 2.25 million 8-inch equivalent wafers. During Q3, work-from-home and home schooling trends continued to contribute to stable end market demand for applications in wireless connectivity, power management ICs used in smartphones as well as high speed interface I/O controllers found in computing devices. In addition to demand stability across various end markets, our 28nm revenue grew QoQ as customer product tape outs continued throughout the quarter. Moving forward, we expect to see a sustained increase in the number of 28nm tape outs, which will further diversify our 28nm exposure to end markets and customers.�
Co-president Wang continued, �Looking into the fourth quarter, demand from consumer and computer related applications will lead to a minor increase in wafer shipments, propelled by ongoing work-from-home initiatives and home schooling. Furthermore, we have seen an uptick in semiconductor demand due to more silicon content in particular applications such as newly deployed 5G smartphones, IoT devices and other consumer products. Therefore, the current industry landscape appears to show favorable supply and demand dynamics towards foundry; hence, UMC will pursue a delicate balance in strengthening our customer relationships while securing interests for our shareholders to ensure our long term growth.�
Summary of Operating Results
|
Operating Results |
|||||||||
|
(Amount: NT$ million) |
3Q20 |
� |
2Q20 |
� |
QoQ % |
3Q19 |
� |
YoY % |
|
|
Operating Revenues |
44,870 |
� |
44,386 |
� |
1.1 |
� |
37,738 |
� |
18.9 |
|
Gross Profit |
9,769 |
� |
10,257 |
� |
(4.8 |
) |
6,433 |
� |
51.9 |
|
Operating Expenses |
(5,508 |
) |
(5,677 |
) |
(3.0 |
) |
(5,131 |
) |
7.4 |
|
Net Other Operating Income and Expenses |
2,872 |
� |
1,266 |
� |
126.9 |
� |
1,207 |
� |
137.9 |
|
Operating Income |
7,133 |
� |
5,846 |
� |
22.0 |
� |
2,509 |
� |
184.3 |
|
Net Non-Operating Income and Expenses |
2,074 |
� |
818 |
� |
153.4 |
� |
(532 |
) |
– |
|
Net Income Attributable to Stockholders of the Parent |
9,106 |
� |
6,681 |
� |
36.3 |
� |
2,929 |
� |
210.9 |
|
EPS (NT$ per share) |
0.75 |
� |
0.55 |
� |
� |
0.25 |
� |
� |
|
|
(US$ per ADS) |
0.129 |
� |
0.095 |
� |
� |
0.043 |
� |
� |
|
Operating revenues in 3Q20 remained flat at NT$44.87 billion. Revenue contribution from 40nm and below technologies increased to 37%. Gross profit declined 4.8% QoQ to NT$9.77 billion, or 21.8% of revenue. Operating expenses declined 3.0% to NT$5.51 billion. Net other operating income increased 126.9% to NT$2.87 billion, which included the sale of Nexpower Technology Corporation�s manufacturing plant, leading to an operating income of NT$7.13 billion. Net non-operating income was NT$2.07 billion. Net income attributable to stockholders of the parent grew 36.3% QoQ to NT$9.11 billion.
Earnings per ordinary share for the quarter was NT$0.75. Earnings per ADS was US$0.129. The basic weighted average number of outstanding shares in 3Q20 was 12,107,651,452, compared with 12,193,149,897 shares in 2Q20 and 11,708,239,978 shares in 3Q19. The diluted weighted average number of outstanding shares was 12,179,561,492 in 3Q20, compared with 12,262,774,432 shares in 2Q20 and 13,049,025,428 shares in 3Q19. The fully diluted share count as of September 30, 2020 was approximately 12,294,281,000. On September 30, 2020, UMC sold 105 million treasury shares acquired from the 21th share buy-back programs to its employees.
Detailed Financials Section
|
COGS & Expenses |
|||||||||
|
(Amount: NT$ million) |
3Q20 |
� |
2Q20 |
� |
QoQ % |
3Q19 |
� |
YoY % |
|
|
Operating Revenues |
44,870 |
� |
44,386 |
� |
1.1 |
� |
37,738 |
� |
18.9 |
|
COGS |
(35,101 |
) |
(34,129 |
) |
2.8 |
� |
(31,305 |
) |
12.1 |
|
Depreciation |
(10,911 |
) |
(10,544 |
) |
3.5 |
� |
(10,707 |
) |
1.9 |
|
Other Mfg. Costs |
(24,190 |
) |
(23,585 |
) |
2.6 |
� |
(20,598 |
) |
17.4 |
|
Gross Profit |
9,769 |
� |
10,257 |
� |
(4.8 |
) |
6,433 |
� |
51.9 |
|
Gross Margin (%) |
21.8 |
% |
23.1 |
% |
? |
17.1 |
% |
? |
|
|
Operating Expenses |
(5,508 |
) |
(5,677 |
) |
(3.0 |
) |
(5,131 |
) |
7.4 |
|
G&A |
(1,614 |
) |
(1,537 |
) |
4.9 |
� |
(1,344 |
) |
20.1 |
|
Sales & Marketing |
(1,009 |
) |
(929 |
) |
8.7 |
� |
(970 |
) |
4.1 |
|
R&D |
(3,314 |
) |
(3,203 |
) |
3.5 |
� |
(2,813 |
) |
17.8 |
|
Expected Credit |
429 |
� |
(8 |
) |
– |
� |
(4 |
) |
– |
|
Net Other Operating |
2,872 |
� |
1,266 |
� |
126.9 |
� |
1,207 |
� |
137.9 |
|
Operating Income |
7,133 |
� |
5,846 |
� |
22.0 |
� |
2,509 |
� |
184.3 |
Operating revenues remained relatively flat at NT$44.87 billion. COGS increased 2.8% QoQ to NT$35.10 billion, which included low single digit increases in both depreciation and other manufacturing costs. Gross profit declined by 4.8% to NT$9.77 billion, partly due to the appreciation of the NT dollar. Operating expenses declined 3% QoQ to NT$5.51 billion, as sales and marketing expenses rose 8.7% QoQ to NT$1.01 billion. G&A expenses grew 4.9% to NT$1.61 billion. R&D expenses increased 3.5% sequentially to NT$3.31 billion, representing 7.4% of 3Q20 operating revenues. Net other operating income increased to NT$2.87 billion. In 3Q20, operating income increased 22.0% QoQ to NT$7.13 billion.
|
Non-Operating Income and Expenses |
||||||
|
(Amount: NT$ million) |
3Q20 |
� |
2Q20 |
� |
3Q19 |
� |
|
Non-Operating Income and Expenses |
2,074 |
� |
818 |
� |
(532 |
) |
|
Net Interest Income and Expenses |
(314 |
) |
(307 |
) |
(503 |
) |
|
Net Investment Gain and Loss |
3,944 |
� |
1,643 |
� |
736 |
� |
|
Exchange Gain and Loss |
259 |
� |
(411 |
) |
(752 |
) |
|
Other Gain and Loss |
(1,815 |
) |
(107 |
) |
(13 |
) |
Net non-operating income in 3Q20 was NT$2.07 billion, mainly resulting from NT$3.94 billion in net investment gain and NT$259 million in exchange gain, which was partly offset by NT$1.82 billion in other losses and NT$314 million in net interest expense.
| Cash Flow Summary | ||||
|
(Amount: NT$ million) |
For the 3-Month |
For the 3-Month |
||
|
Cash Flow from Operating Activities |
18,538 |
� |
16,403 |
� |
|
Net income before tax |
9,207 |
� |
6,664 |
� |
|
Depreciation & Amortization |
12,170 |
� |
12,248 |
� |
|
Expected credit impairment (gain) loss |
(429 |
) |
8 |
� |
|
Share of profit of associates and joint |
(2,778 |
) |
(914 |
) |
|
Income tax (paid) received |
(229 |
) |
505 |
� |
|
Changes in working capital & others |
597 |
� |
(2,108 |
) |
|
Cash Flow from Investing Activities |
(5,686 |
) |
(7,877 |
) |
|
Acquisition of PP&E |
(6,707 |
) |
(4,270 |
) |
|
Proceeds from disposal of PP&E |
1,720 |
� |
14 |
� |
|
Acquisition of intangible assets |
(815 |
) |
(448 |
) |
|
Decrease (increase) in other financial |
281 |
� |
(2,979 |
) |
|
Others |
(165 |
) |
(194 |
) |
|
Cash Flow from Financing Activities |
(13,652 |
) |
(2,947 |
) |
|
Bank loans |
(4,716 |
) |
9,483 |
� |
|
Redemption of bonds |
– |
� |
(11,203 |
) |
|
Treasury stock acquired |
(477 |
) |
(1,201 |
) |
|
Treasury stock sold to employees |
1,678 |
� |
– |
� |
|
Cash dividends |
(9,765 |
) |
– |
� |
|
Others |
(372 |
) |
(26 |
) |
|
Effect of Exchange Rate |
(233 |
) |
(873 |
) |
|
Net Cash Flow |
(1,033 |
) |
4,706 |
� |
|
Beginning balance |
99,872 |
� |
95,166 |
� |
|
Ending balance |
98,839 |
� |
99,872 |
� |
In 3Q20, cash inflow from operating activities was NT$18.54 billion. Cash outflow from investing activities totaled NT$5.69 billion, which included NT$7.42 billion in capital expenditure, resulting in free cash flow of NT$11.12 billion. Cash outflow from financing activities totaled NT$13.65 billion, primarily from NT$9.77 billion in the distribution of cash dividend and NT$4.72 billion in the repayment of bank loans, offset by NT$1.68 billion in the sale of treasury stock to employees. Net cash outflow in 3Q20 was NT$1.03 billion. Over the next 12 months, the company expects to repay NT$6.83 billion in bank loans.
|
Current Assets |
|||
|
(Amount: NT$ billion) |
3Q20 |
2Q20 |
3Q19 |
|
Cash and Cash Equivalents |
98.84 |
99.87 |
86.76 |
|
Notes & Accounts Receivable |
26.96 |
27.26 |
23.41 |
|
Days Sales Outstanding |
55 |
57 |
58 |
|
Inventories, net |
22.86 |
23.34 |
19.99 |
|
Days of Inventory |
60 |
61 |
58 |
|
Total Current Assets |
163.48 |
167.96 |
163.49 |
Cash and cash equivalents decreased to NT$98.84 billion. Days of inventory decreased to 60 days.
|
Liabilities |
||||||
|
(Amount: NT$ billion) |
3Q20 |
� |
2Q20 |
� |
3Q19 |
� |
|
Total Current Liabilities |
59.15 |
� |
65.11 |
� |
70.33 |
� |
|
Notes & Accounts Payable |
7.70 |
� |
8.56 |
� |
6.63 |
� |
|
Short-Term Credit / Bonds |
16.40 |
� |
17.32 |
� |
40.08 |
� |
|
Payables on Equipment |
7.38 |
� |
3.22 |
� |
3.00 |
� |
|
Dividends Payable |
– |
� |
9.77 |
� |
– |
� |
|
Other |
27.67 |
� |
26.24 |
� |
20.62 |
� |
|
Long-Term Credit / Bonds |
49.46 |
� |
53.50 |
� |
55.23 |
� |
|
Long-Term Investment Liabilities |
20.14 |
� |
19.69 |
� |
20.17 |
� |
|
Total Liabilities |
147.33 |
� |
158.34 |
� |
169.00 |
� |
|
Debt to Equity |
67 |
% |
76 |
% |
82 |
% |
Current liabilities decreased to NT$59.15 billion, mainly from NT$9.77 billion in the payment of cash dividends and NT$0.92 billion from the decline in short-term credit/bonds. Total liabilities declined to NT$147.33 billion, leading to a debt to equity ratio of 67%.
Analysis of Revenue2
|
Revenue Breakdown by Region |
||||||||||
|
Region |
3Q20 |
� |
2Q20 |
� |
1Q20 |
� |
4Q19 |
� |
3Q19 |
� |
|
North America |
30 |
% |
31 |
% |
29 |
% |
30 |
% |
33 |
% |
|
Asia Pacific |
57 |
% |
55 |
% |
56 |
% |
55 |
% |
59 |
% |
|
Europe |
6 |
% |
5 |
% |
6 |
% |
6 |
% |
6 |
% |
|
Japan |
7 |
% |
9 |
% |
9 |
% |
9 |
% |
2 |
% |
Revenue from Asia Pacific rose to 57% as business from North America declined to 30% of sales. Business from Europe rose to 6% while contribution from Japan decreased to 7%.
|
Revenue Breakdown by Geometry |
||||||||||
|
Geometry |
3Q20 |
� |
2Q20 |
� |
1Q20 |
� |
4Q19 |
� |
3Q19 |
� |
|
14nm and below |
0 |
% |
0 |
% |
0 |
% |
0 |
% |
0 |
% |
|
14nm<x<=28nm |
14 |
% |
13 |
% |
9 |
% |
10 |
% |
12 |
% |
|
28nm<x<=40nm |
23 |
% |
23 |
% |
25 |
% |
22 |
% |
26 |
% |
|
40nm<x<=65nm |
19 |
% |
16 |
% |
16 |
% |
16 |
% |
14 |
% |
|
65nm<x<=90nm |
10 |
% |
13 |
% |
15 |
% |
18 |
% |
12 |
% |
|
90nm<x<=0.13um |
11 |
% |
11 |
% |
11 |
% |
11 |
% |
11 |
% |
|
0.13um<x<=0.18um |
13 |
% |
13 |
% |
13 |
% |
12 |
% |
13 |
% |
|
0.18um<x<=0.35um |
8 |
% |
8 |
% |
8 |
% |
8 |
% |
9 |
% |
|
0.5um and above |
2 |
% |
3 |
% |
3 |
% |
3 |
% |
3 |
% |
Revenue contribution from 28nm increased to 14% while 40nm business remained unchanged at 23% of sales.
|
Revenue Breakdown by Customer Type |
||||||||||
|
Customer Type |
3Q20 |
� |
2Q20 |
� |
1Q20 |
� |
4Q19 |
� |
3Q19 |
� |
|
Fabless |
88 |
% |
88 |
% |
88 |
% |
87 |
% |
92 |
% |
|
IDM |
12 |
% |
12 |
% |
12 |
% |
13 |
% |
8 |
% |
Revenue from fabless customers stayed at 88% of revenue.
|
Revenue Breakdown by Application (1) |
||||||||||
|
Application |
3Q20 |
� |
2Q20 |
� |
1Q20 |
� |
4Q19 |
� |
3Q19 |
� |
|
Computer |
13 |
% |
14 |
% |
13 |
% |
13 |
% |
13 |
% |
|
Communication |
54 |
% |
51 |
% |
54 |
% |
54 |
% |
54 |
% |
|
Consumer |
24 |
% |
24 |
% |
24 |
% |
24 |
% |
26 |
% |
|
Others |
9 |
% |
11 |
% |
9 |
% |
9 |
% |
7 |
% |
Revenue from the communication segment increased to 54%, while business from computer applications declined to 13%. Business from consumer applications remained unchanged at 24% as other segments decreased to 9%.
|
(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
Blended average selling price (ASP) increased slightly in 3Q20.
(To view blended ASP trend, please click here for 3Q20 ASP)
Shipment and Utilization Rate3
|
Wafer Shipments |
|||||
|
� |
3Q20 |
2Q20 |
1Q20 |
4Q19 |
3Q19 |
|
Wafer Shipments |
2,254 |
2,218 |
2,148 |
2,042 |
1,806 |
|
Quarterly Capacity Utilization Rate |
||||||||||
|
� |
3Q20 |
� |
2Q20 |
� |
1Q20 |
� |
4Q19 |
� |
3Q19 |
� |
|
Utilization Rate |
97 |
% |
98 |
% |
93 |
% |
92 |
% |
91 |
% |
|
Total Capacity |
2,308 |
2,291 |
2,278 |
2,237 |
2,004 |
|||||
In 3Q20, wafer shipments increased 1.6% QoQ to 2,254K, while quarterly capacity rose 0.7% QoQ to 2,308K. As a result, the overall utilization rate in 3Q20 was 97%.
Capacity4
|
Annual Capacity in |
� |
Quarterly Capacity in |
||||||||||||||
|
FAB |
Geometry |
2019 |
� |
2018 |
� |
2017 |
� |
2016 |
� |
� |
FAB |
4Q20E |
3Q20 |
2Q20 |
1Q20 |
|
|
WTK |
6″ |
3.5 � 0.45 |
370 |
� |
396 |
� |
422 |
� |
423 |
� |
� |
WTK |
93 |
93 |
93 |
92 |
|
Fab 8A |
8″ |
0.5 � 0.25 |
825 |
� |
825 |
� |
825 |
� |
827 |
� |
� |
Fab 8A |
201 |
201 |
201 |
200 |
|
Fab 8C |
8″ |
0.35 � 0.11 |
436 |
� |
383 |
� |
357 |
� |
348 |
� |
� |
Fab 8C |
113 |
113 |
113 |
112 |
|
Fab 8D |
8″ |
0.13 � 0.09 |
359 |
� |
347 |
� |
341 |
� |
342 |
� |
� |
Fab 8D |
93 |
93 |
93 |
92 |
|
Fab 8E |
8″ |
0.5 � 0.15 |
426 |
� |
418 |
� |
418 |
� |
419 |
� |
� |
Fab 8E |
113 |
113 |
113 |
112 |
|
Fab 8F |
8″ |
0.18 � 0.11 |
434 |
� |
431 |
� |
417 |
� |
401 |
� |
� |
Fab 8F |
122 |
122 |
122 |
121 |
|
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 |
230 |
230 |
228 |
|
Fab 12A |
12″ |
0.13 � 0.014 |
997 |
� |
997 |
� |
970 |
� |
885 |
� |
� |
Fab 12A |
261 |
261 |
261 |
260 |
|
Fab 12i |
12″ |
0.13 � 0.040 |
595 |
� |
555 |
� |
537 |
� |
584 |
� |
� |
Fab 12i |
160 |
160 |
155 |
154 |
|
Fab 12X |
12″ |
0.040 � 0.028 |
203 |
� |
183 |
� |
97 |
� |
9 |
� |
� |
Fab 12X |
57 |
56 |
53 |
52 |
|
Fab 12M |
12″ |
0.090 � 0.040 |
98 |
� |
– |
� |
– |
� |
– |
� |
� |
Fab 12M |
98 |
98 |
98 |
97 |
|
Total(1) |
8,148 |
� |
7,673 |
� |
7,304 |
� |
6,983 |
� |
� |
Total |
2,311 |
2,308 |
2,291 |
2,278 |
||
|
YoY Growth Rate |
6 |
% |
5 |
% |
5 |
% |
6 |
% |
� |
|||||||
Total capacity in the third quarter totaled 2,308K 8-inch equivalent wafers. We foresee fourth quarter capacity will grow to 2,311K 8-inch equivalent wafers, mainly reflecting capacity increase at Fab 12X.
(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.
| 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 3Q20 was US$252 million, leading to a total of US$540 million in capital expenditure investment during the first nine months of 2020. Full year 2020 CAPEX is budgeted at US$1.0 billion.
Fourth Quarter 2020 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Wafer Shipments: To increase by 1-2%
- ASP in USD: To increase by 1%
- Gross Profit Margin: To remain flat
- Capacity Utilization: mid-90% range
- 2020 CAPEX: US$1 billion
|
Recent Developments / Announcements |
|
| � | |
|
Oct 29, 2020 |
UMC and US Department of Justice Reach Plea Agreement on Trade Secret Case |
|
Jul 29, 2020 |
|
|
Please visit UMC�s website for further details regarding the above announcements |
|
Conference Call / Webcast Announcement
Thursday, October 29, 2020
Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 09:00 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 3Q20 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 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 –
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | ||||||||||
| Consolidated Condensed Balance Sheet | ||||||||||
| As of September 30, 2020 | ||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | ||||||||||
| � | ||||||||||
| � | ||||||||||
| September 30, 2020 | ||||||||||
| US$ | NT$ | % | ||||||||
| Assets | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents |
3,397 |
� |
98,839 |
� |
26.8 |
% |
||||
| Notes & Accounts receivable, net |
926 |
� |
26,959 |
� |
7.3 |
% |
||||
| Inventories, net |
786 |
� |
22,863 |
� |
6.2 |
% |
||||
| Other current assets |
509 |
� |
14,816 |
� |
4.1 |
% |
||||
| Total current assets |
5,618 |
� |
163,477 |
� |
44.4 |
% |
||||
| � | ||||||||||
| Non-current assets | ||||||||||
| Funds and investments |
1,617 |
� |
47,041 |
� |
12.8 |
% |
||||
| Property, plant and equipment |
4,559 |
� |
132,662 |
� |
36.0 |
% |
||||
| Right-of-use assets |
272 |
� |
7,901 |
� |
2.2 |
% |
||||
| Other non-current assets |
588 |
� |
17,163 |
� |
4.6 |
% |
||||
| Total non-current assets |
7,036 |
� |
204,767 |
� |
55.6 |
% |
||||
| Total assets |
12,654 |
� |
368,244 |
� |
100.0 |
% |
||||
| � | ||||||||||
| Liabilities | ||||||||||
| Current liabilities | ||||||||||
| Short-term loans |
260 |
� |
7,572 |
� |
2.1 |
% |
||||
| Payables |
1,196 |
� |
34,806 |
� |
9.5 |
% |
||||
| Current portion of long-term liabilities |
303 |
� |
8,826 |
� |
2.4 |
% |
||||
| Other current liabilities |
274 |
� |
7,947 |
� |
2.1 |
% |
||||
| Total current liabilities |
2,033 |
� |
59,151 |
� |
16.1 |
% |
||||
| � | ||||||||||
| Non-current liabilities | ||||||||||
| Bonds payable |
574 |
� |
16,690 |
� |
4.5 |
% |
||||
| Long-term loans |
1,126 |
� |
32,767 |
� |
8.9 |
% |
||||
| Lease liabilities, noncurrent |
178 |
� |
5,184 |
� |
1.4 |
% |
||||
| Other non-current liabilities |
1,152 |
� |
33,537 |
� |
9.1 |
% |
||||
| Total non-current liabilities |
3,030 |
� |
88,178 |
� |
23.9 |
% |
||||
| Total liabilities |
5,063 |
� |
147,329 |
� |
40.0 |
% |
||||
| � | ||||||||||
| Equity | ||||||||||
| Equity attributable to the parent company | ||||||||||
| Capital |
4,269 |
� |
124,224 |
� |
33.7 |
% |
||||
| Additional paid-in capital |
1,474 |
� |
42,903 |
� |
11.7 |
% |
||||
| Retained earnings and other components of equity |
1,847 |
� |
53,754 |
� |
14.6 |
% |
||||
| Treasury stock |
(4 |
) |
(120 |
) |
(0.0 |
%) |
||||
| Total equity attributable to the parent company |
7,586 |
� |
220,761 |
� |
60.0 |
% |
||||
| Non-controlling interests |
5 |
� |
154 |
� |
0.0 |
% |
||||
| Total equity |
7,591 |
� |
220,915 |
� |
60.0 |
% |
||||
| Total liabilities and equity |
12,654 |
� |
368,244 |
� |
100.0 |
% |
||||
| � | ||||||||||
| � | ||||||||||
| Note?New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2020 exchange rate of NT $29.10 per U.S. Dollar. | ||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||||||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||||||||||||||||||||
| Except Per Share and Per ADS Data | |||||||||||||||||||||||||||||
| � | |||||||||||||||||||||||||||||
| � | |||||||||||||||||||||||||||||
| Year over Year Comparison | Quarter over Quarter Comparison | ||||||||||||||||||||||||||||
| Three-Month Period Ended | Three-Month Period Ended | ||||||||||||||||||||||||||||
| September 30, 2020 | September 30, 2019 | Chg. | September 30, 2020 | June 30, 2020 | Chg. | ||||||||||||||||||||||||
| US$ | NT$ | US$ | NT$ | % | US$ | NT$ | US$ | NT$ | % | ||||||||||||||||||||
| Operating revenues |
1,542 |
� |
44,870 |
� |
1,297 |
� |
37,738 |
� |
18.9 |
% |
1,542 |
� |
44,870 |
� |
1,525 |
� |
44,386 |
� |
1.1 |
% |
|||||||||
| Operating costs |
(1,206 |
) |
(35,101 |
) |
(1,076 |
) |
(31,305 |
) |
12.1 |
% |
(1,206 |
) |
(35,101 |
) |
(1,173 |
) |
(34,129 |
) |
2.8 |
% |
|||||||||
| Gross profit |
336 |
� |
9,769 |
� |
221 |
� |
6,433 |
� |
51.9 |
% |
336 |
� |
9,769 |
� |
352 |
� |
10,257 |
� |
(4.8 |
%) |
|||||||||
|
21.8 |
% |
21.8 |
% |
17.1 |
% |
17.1 |
% |
21.8 |
% |
21.8 |
% |
23.1 |
% |
23.1 |
% |
||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||
| – Sales and marketing expenses |
(35 |
) |
(1,009 |
) |
(33 |
) |
(970 |
) |
4.1 |
% |
(35 |
) |
(1,009 |
) |
(32 |
) |
(929 |
) |
8.7 |
% |
|||||||||
| – General and administrative expenses |
(56 |
) |
(1,614 |
) |
(46 |
) |
(1,344 |
) |
20.1 |
% |
(56 |
) |
(1,614 |
) |
(53 |
) |
(1,537 |
) |
4.9 |
% |
|||||||||
| – Research and development expenses |
(114 |
) |
(3,314 |
) |
(97 |
) |
(2,813 |
) |
17.8 |
% |
(114 |
) |
(3,314 |
) |
(110 |
) |
(3,203 |
) |
3.5 |
% |
|||||||||
| – Expected credit impairment gain (loss) |
15 |
� |
429 |
� |
(0 |
) |
(4 |
) |
– |
� |
15 |
� |
429 |
� |
(0 |
) |
(8 |
) |
– |
� |
|||||||||
| Subtotal |
(190 |
) |
(5,508 |
) |
(176 |
) |
(5,131 |
) |
7.4 |
% |
(190 |
) |
(5,508 |
) |
(195 |
) |
(5,677 |
) |
(3.0 |
%) |
|||||||||
| Net other operating income and expenses |
99 |
� |
2,872 |
� |
41 |
� |
1,207 |
� |
137.9 |
% |
99 |
� |
2,872 |
� |
44 |
� |
1,266 |
� |
126.9 |
% |
|||||||||
| Operating income |
245 |
� |
7,133 |
� |
86 |
� |
2,509 |
� |
184.3 |
% |
245 |
� |
7,133 |
� |
201 |
� |
5,846 |
� |
22.0 |
% |
|||||||||
|
15.9 |
% |
15.9 |
% |
6.7 |
% |
6.7 |
% |
15.9 |
% |
15.9 |
% |
13.2 |
% |
13.2 |
% |
||||||||||||||
| � | |||||||||||||||||||||||||||||
| Net non-operating income and expenses |
71 |
� |
2,074 |
� |
(18 |
) |
(532 |
) |
– |
� |
71 |
� |
2,074 |
� |
28 |
� |
818 |
� |
153.4 |
% |
|||||||||
| Income from continuing operations ���before income tax |
316 |
� |
9,207 |
� |
68 |
� |
1,977 |
� |
365.6 |
% |
316 |
� |
9,207 |
� |
229 |
� |
6,664 |
� |
38.2 |
% |
|||||||||
|
20.5 |
% |
20.5 |
% |
5.2 |
% |
5.2 |
% |
20.5 |
% |
20.5 |
% |
15.0 |
% |
15.0 |
% |
||||||||||||||
| � | |||||||||||||||||||||||||||||
| Income tax expenses |
(6 |
) |
(197 |
) |
(1 |
) |
(39 |
) |
405.4 |
% |
(6 |
) |
(197 |
) |
(21 |
) |
(613 |
) |
(67.9 |
%) |
|||||||||
| Net income |
310 |
� |
9,010 |
� |
67 |
� |
1,938 |
� |
364.8 |
% |
310 |
� |
9,010 |
� |
208 |
� |
6,051 |
� |
48.9 |
% |
|||||||||
|
20.1 |
% |
20.1 |
% |
5.1 |
% |
5.1 |
% |
20.1 |
% |
20.1 |
% |
13.6 |
% |
13.6 |
% |
||||||||||||||
| � | |||||||||||||||||||||||||||||
| Other comprehensive income (loss) |
47 |
� |
1,390 |
� |
20 |
� |
591 |
� |
135.5 |
% |
47 |
� |
1,390 |
� |
109 |
� |
3,178 |
� |
(56.2 |
%) |
|||||||||
| � | |||||||||||||||||||||||||||||
| Total comprehensive income (loss) |
357 |
� |
10,400 |
� |
87 |
� |
2,529 |
� |
311.3 |
% |
357 |
� |
10,400 |
� |
317 |
� |
9,229 |
� |
12.7 |
% |
|||||||||
| � | |||||||||||||||||||||||||||||
| ���Net income attributable to: | |||||||||||||||||||||||||||||
| ??Stockholders of the parent |
313 |
� |
9,106 |
� |
101 |
� |
2,929 |
� |
210.9 |
% |
313 |
� |
9,106 |
� |
230 |
� |
6,681 |
� |
36.3 |
% |
|||||||||
| ??Non-controlling interests |
(3 |
) |
(96 |
) |
(34 |
) |
(991 |
) |
(90.2 |
%) |
(3 |
) |
(96 |
) |
(22 |
) |
(630 |
) |
(84.6 |
%) |
|||||||||
| � | |||||||||||||||||||||||||||||
| ���Comprehensive income (loss) attributable to: | |||||||||||||||||||||||||||||
| ??Stockholders of the parent |
361 |
� |
10,497 |
� |
122 |
� |
3,540 |
� |
196.5 |
% |
361 |
� |
10,497 |
� |
339 |
� |
9,859 |
� |
6.5 |
% |
|||||||||
| ??Non-controlling interests |
(4 |
) |
(97 |
) |
(35 |
) |
(1,011 |
) |
(90.4 |
%) |
(4 |
) |
(97 |
) |
(22 |
) |
(630 |
) |
(84.6 |
%) |
|||||||||
| � | |||||||||||||||||||||||||||||
| Earnings per share-basic |
0.026 |
� |
0.75 |
� |
0.009 |
� |
0.25 |
� |
0.026 |
� |
0.75 |
� |
0.019 |
� |
0.55 |
� |
|||||||||||||
| Earnings per ADS (2) |
0.129 |
� |
3.75 |
� |
0.043 |
� |
1.25 |
� |
0.129 |
� |
3.75 |
� |
0.095 |
� |
2.75 |
� |
|||||||||||||
| Weighted average number of shares | |||||||||||||||||||||||||||||
| ���outstanding (in millions) |
12,108 |
� |
11,708 |
� |
12,108 |
� |
12,193 |
� |
|||||||||||||||||||||
| � | |||||||||||||||||||||||||||||
| � | |||||||||||||||||||||||||||||
| Notes: | |||||||||||||||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2020 exchange rate of NT $29.10 per U.S. Dollar. | |||||||||||||||||||||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||||||||||||||||||||
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES |
|||||||||||||||||
|
Consolidated Condensed Statements of Comprehensive Income |
|||||||||||||||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) |
|||||||||||||||||
|
Except Per Share and Per ADS Data |
|||||||||||||||||
| � | |||||||||||||||||
|
For the Three-Month Period Ended |
For the Nine-Month Period Ended |
||||||||||||||||
|
September 30, 2020 |
September 30, 2020 |
||||||||||||||||
|
US$ |
NT$ |
% |
US$ |
NT$ |
% |
||||||||||||
| Operating revenues |
1,542 |
� |
44,870 |
� |
100.0 |
% |
4,520 |
� |
131,525 |
� |
100.0 |
% |
|||||
| Operating costs |
(1,206 |
) |
(35,101 |
) |
(78.2 |
%) |
(3,553 |
) |
(103,376 |
) |
(78.6 |
%) |
|||||
| Gross profit |
336 |
� |
9,769 |
� |
21.8 |
% |
967 |
� |
28,149 |
� |
21.4 |
% |
|||||
| � | |||||||||||||||||
| � | |||||||||||||||||
| Operating expenses | |||||||||||||||||
| – Sales and marketing expenses |
(35 |
) |
(1,009 |
) |
(2.3 |
%) |
(102 |
) |
(2,978 |
) |
(2.3 |
%) |
|||||
| – General and administrative expenses |
(56 |
) |
(1,614 |
) |
(3.6 |
%) |
(162 |
) |
(4,696 |
) |
(3.5 |
%) |
|||||
| – Research and development expenses |
(114 |
) |
(3,314 |
) |
(7.4 |
%) |
(333 |
) |
(9,702 |
) |
(7.4 |
%) |
|||||
| – Expected credit impairment gain |
15 |
� |
429 |
� |
1.0 |
% |
16 |
� |
468 |
� |
0.4 |
% |
|||||
| ���Subtotal |
(190 |
) |
(5,508 |
) |
(12.3 |
%) |
(581 |
) |
(16,908 |
) |
(12.8 |
%) |
|||||
| Net other operating income and expenses |
99 |
� |
2,872 |
� |
6.4 |
% |
177 |
� |
5,152 |
� |
3.9 |
% |
|||||
| Operating income |
245 |
� |
7,133 |
� |
15.9 |
% |
563 |
� |
16,393 |
� |
12.5 |
% |
|||||
| � | |||||||||||||||||
| Net non-operating income and expenses |
71 |
� |
2,074 |
� |
4.6 |
% |
11 |
� |
299 |
� |
0.2 |
% |
|||||
| Income from continuing operations ���before income tax |
316 |
� |
9,207 |
� |
20.5 |
% |
574 |
� |
16,692 |
� |
12.7 |
% |
|||||
| � | |||||||||||||||||
| � | |||||||||||||||||
| Income tax expense |
(6 |
) |
(197 |
) |
(0.4 |
%) |
(14 |
) |
(401 |
) |
(0.3 |
%) |
|||||
| Net income |
310 |
� |
9,010 |
� |
20.1 |
% |
560 |
� |
16,291 |
� |
12.4 |
% |
|||||
| � | |||||||||||||||||
| Other comprehensive income (loss) |
47 |
� |
1,390 |
� |
3.1 |
% |
29 |
� |
854 |
� |
0.6 |
% |
|||||
| � | |||||||||||||||||
| Total comprehensive income (loss) |
357 |
� |
10,400 |
� |
23.2 |
% |
589 |
� |
17,145 |
� |
13.0 |
% |
|||||
| � | |||||||||||||||||
| Net income attributable to: | |||||||||||||||||
| ??Stockholders of the parent |
313 |
� |
9,106 |
� |
20.3 |
% |
618 |
� |
17,994 |
� |
13.7 |
% |
|||||
| ??Non-controlling interests |
(3 |
) |
(96 |
) |
(0.2 |
%) |
(58 |
) |
(1,703 |
) |
(1.3 |
%) |
|||||
| � | |||||||||||||||||
| Comprehensive income (loss) attributable to: | |||||||||||||||||
| ??Stockholders of the parent |
361 |
� |
10,497 |
� |
23.4 |
% |
643 |
� |
18,721 |
� |
14.2 |
% |
|||||
| ??Non-controlling interests |
(4 |
) |
(97 |
) |
(0.2 |
%) |
(54 |
) |
(1,576 |
) |
(1.2 |
%) |
|||||
| � | |||||||||||||||||
| Earnings per share-basic |
0.026 |
� |
0.75 |
� |
0.052 |
� |
1.50 |
� |
|||||||||
| Earnings per ADS (2) |
0.129 |
� |
3.75 |
� |
0.258 |
� |
7.50 |
� |
|||||||||
| � | |||||||||||||||||
| Weighted average number of shares ���outstanding (in millions) |
12,108 |
� |
12,028 |
� |
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| � | |||||||||||||||||
| Notes: | |||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2020 exchange rate of NT $29.10 per U.S. Dollar. | |||||||||||||||||
|
(2) 1 ADS equals 5 common shares. |
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Contacts
Michael Lin / David Wong
UMC, Investor Relations
+ 886-2-2658-9168, ext. 16900
[email protected]
[email protected]
