UMC Reports Fourth Quarter 2020 Results

·19 min read

Robust demand in 4Q20 propels utilization to 99%; GM reaches 23.9%

Company posts 2020 net income of NT$29.19 billion or NT$2.42 EPS

Fourth Quarter 2020 Overview1:

  • Revenue: NT$45.30 billion (US$1.59 billion)

  • Gross margin: 23.9%; Operating margin: 12.4%

  • Revenue from 28nm: 18%

  • Capacity utilization rate: 99%

  • Net income attributable to stockholders of the parent: NT$11.20 billion (US$393 million)

  • Earnings per share: NT$0.92; earnings per ADS: US$0.162

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the fourth quarter of 2020.

Fourth quarter consolidated revenue was NT$45.30 billion, which increased from NT$44.87 billion in 3Q20. Compared to the previous year, 4Q20 revenue was up 8.2% YoY from NT$41.85 billion in 4Q19. Consolidated gross margin for 4Q20 was 23.9%. Net income attributable to the stockholders of the parent was NT$11.20 billion, with earnings per ordinary share of NT$0.92.

Jason Wang, co-president of UMC, said, "Our business traction in Q3 carried over into Q4, lifting utilization rate to 99% and raising wafer shipments to 2.3 million 8-inch equivalents. The stable capacity utilization was driven by robust end market demand from consumer and computing related applications such as WiFi, Digital TV, micro-controllers, and power management IC. For full year 2020, UMC's revenue grew 26% in USD while operating income surged to NT$22.01 billion, reflecting solid utilization rates across both 8" and 12" facilities and optimization of our blended product mix. In particular, our enhanced 12" product mix primarily resulted from the substantial pick-up in 28nm wafer business as well as our successful integration of USJC’s 12" operations."

Co-president Wang continued, "Looking into the first quarter, stable demand outlook will lead to an incremental increase in wafer shipments and blended ASP in USD. However, due to the continuing unfavorable foreign exchange rate, we anticipate the appreciation of the NT dollar will offset more than half of the implied growth projected for 1Q. For full year 2021, UMC continues to share the foundry industry's positive view in wafer demand. Hence, we will continue with the company's disciplined and measured capex strategy by allocating a budget of US$1.5 billion to accommodate the strong demand outlook in advanced technologies."

Co-president Wang added, " In terms of corporate sustainability, UMC first launched its Corporate Sustainability Committee in the domestic semiconductor industry in 2008, adhering to the vision of "people-oriented, symbiosis with the environment, and co-prosperity with the society," and is committed to the promotion of the ESG (environment, society, governance) three-dimensional sustainability concept. Among them, in terms of environmental sustainability, UMC regards climate change, water and energy management issues as challenges and opportunities for the company. In 2020, UMC revealed its "Green 2025" environmental protection goals to achieve 15% water saving, 15% electricity saving, 25% waste reduction, and 65% reduction in fluorine-containing greenhouse gases. Given Taiwan’s lack of rainfall over the past few months, water conservation and water recycling have become increasingly important themes in helping communities cope with longer-term droughts. By 2025, UMC anticipates the company’s efforts in water and wastewater management will reduce water consumption per product unit by 15% compared to 2015. We will continue to enhance our competitiveness and ensure that continuous and effective water conservation management is conducted in our wafer manufacturing operations to increase the recovery and reuse of water resources."

Summary of Operating Results

Operating Results

(Amount: NT$ million)

4Q20

3Q20

QoQ %
change

4Q19

YoY %
change

Operating Revenues

45,296

44,870

0.9

41,849

8.2

Gross Profit

10,848

9,769

11.0

6,968

55.7

Operating Expenses

(6,335

)

(5,508

)

15.0

(6,165

)

2.8

Net Other Operating Income and Expenses

1,102

2,872

(61.6

)

1,215

(9.3

)

Operating Income

5,615

7,133

(21.3

)

2,018

178.3

Net Non-Operating Income and Expenses

5,619

2,074

171.0

946

493.4

Net Income Attributable to Stockholders of the Parent

11,196

9,106

22.9

3,837

191.8

EPS (NT$ per share)

0.92

0.75

0.33

(US$ per ADS)

0.162

0.132

0.058

Operating revenues in 4Q20 slightly increased to NT$45.30 billion. Revenue contribution from 40nm and below technologies increased to 40%. Gross profit grew 11.0% QoQ to NT$10.85 billion, or 23.9% of revenue. Operating expenses increased 15.0% to NT$6.34 billion. Net other operating income declined to NT$1.10 billion. Net non-operating income was NT$5.62 billion. Net income attributable to stockholders of the parent grew 22.9% QoQ to NT$11.20 billion.

Earnings per ordinary share for the quarter was NT$0.92. Earnings per ADS was US$0.162. The basic weighted average number of outstanding shares in 4Q20 was 12,206,292,756, compared with 12,107,651,452 shares in 3Q20 and 11,708,869,140 shares in 4Q19. The diluted weighted average number of outstanding shares was 12,359,115,536 in 4Q20, compared with 12,179,561,492 shares in 3Q20 and 13,073,000,039 shares in 4Q19. The fully diluted shares counted on December 31, 2020 were approximately 12,375,194,000.

Detailed Financials Section

COGS & Expenses

(Amount: NT$ million)

4Q20

3Q20

QoQ %
change

4Q19

YoY %
change

Operating Revenues

45,296

44,870

0.9

41,849

8.2

COGS

(34,448

)

(35,101

)

(1.9

)

(34,881

)

(1.2

)

Depreciation

(10,436

)

(10,911

)

(4.4

)

(11,069

)

(5.7

)

Other Mfg. Costs

(24,012

)

(24,190

)

(0.7

)

(23,812

)

0.8

Gross Profit

10,848

9,769

11.0

6,968

55.7

Gross Margin (%)

23.9

%

21.8

%

16.7

%

Operating Expenses

(6,335

)

(5,508

)

15.0

(6,165

)

2.8

G&A

(1,966

)

(1,614

)

21.9

(1,603

)

22.7

Sales & Marketing

(1,175

)

(1,009

)

16.4

(996

)

17.9

R&D

(3,194

)

(3,314

)

(3.6

)

(3,453

)

(7.5

)

Expected Credit
Impairment Gain
(Loss)

0

429

(99.9

)

(113

)

-

Net Other Operating
Income & Expenses

1,102

2,872

(61.6

)

1,215

(9.3

)

Operating Income

5,615

7,133

(21.3

)

2,018

178.3

Operating revenues increased slightly to NT$45.30 billion. COGS declined 1.9% QoQ to NT$34.45 billion, which included a 4.4% QoQ decline in depreciation. Gross profit grew 11.0% QoQ to NT$10.85 billion, which was partially offset from the continuous appreciation of the NT dollar. Operating expenses increased 15% QoQ to NT$6.34 billion, as G&A increased 21.9% sequentially to NT$1.97 billion while Sales & Marketing rose 16.4% QoQ to NT$1.18 billion. R&D decreased 3.6% QoQ to NT$3.19 billion, representing 7.1% of 4Q20 operating revenues. Net other operating income was NT$1.10 billion. In 4Q20, operating income declined 21.3% QoQ to NT$5.62 billion.

Non-Operating Income and Expenses

(Amount: NT$ million)

4Q20

3Q20

4Q19

Non-Operating Income and Expenses

5,619

2,074

946

Net Interest Income and Expenses

(278

)

(314

)

(468

)

Net Investment Gain and Loss

5,703

3,944

1,064

Exchange Gain and Loss

199

259

188

Other Gain and Loss

(5

)

(1,815

)

162

Net non-operating income in 4Q20 was NT$5.62 billion, mainly resulting from NT$5.70 billion in net investment gain and NT$199 million in exchange gain, which was primarily offset by NT$278 million in net interest expense.

Cash Flow Summary

(Amount: NT$ million)

For the 3-Month
Period Ended
Dec. 31, 2020

For the 3-Month
Period Ended
Sep. 30, 2020

Cash Flow from Operating Activities

16,072

18,538

Net income before tax

11,234

9,207

Depreciation & Amortization

11,993

12,170

Expected credit impairment loss (gain)

(0

)

(429

)

Share of profit of associates and joint ventures

(3,822

)

(2,778

)

Income tax paid

(144

)

(229

)

Changes in working capital & others

(3,189

)

597

Cash Flow from Investing Activities

(17,437

)

(5,686

)

Acquisition of PP&E

(11,738

)

(6,707

)

Proceeds from disposal of PP&E

(20

)

1,720

Acquisition of intangible assets

(293

)

(815

)

Decrease (increase) in other financial assets

(4,625

)

281

Others

(761

)

(165

)

Cash Flow from Financing Activities

(3,153

)

(13,652

)

Bank loans

(3,000

)

(4,716

)

Treasury stock acquired

-

(477

)

Treasury stock sold to employees

-

1,678

Cash dividends

-

(9,765

)

Others

(153

)

(372

)

Effect of Exchange Rate

(273

)

(233

)

Net Cash Flow

(4,791

)

(1,033

)

Beginning balance

98,839

99,872

Ending balance

94,048

98,839

In 4Q20, cash inflow from operating activities was NT$16.07 billion. Cash outflow from investing activities totaled NT$17.44 billion, which included NT$12.04 billion in capital expenditure, resulting in free cash flow of NT$4.03 billion. Cash outflow from financing activities was NT$3.15 billion, primarily from NT$3.00 billion in the repayment of bank loans. Net cash outflow in 4Q20 was NT$4.79 billion. Over the next 12 months, the company expects to repay NT$6.34 billion in bank loans.

Current Assets

(Amount: NT$ billion)

4Q20

3Q20

4Q19

Cash and Cash Equivalents

94.05

98.84

95.49

Notes & Accounts Receivable

27.27

26.96

25.73

Days Sales Outstanding

55

55

54

Inventories, net

22.55

22.86

21.72

Days of Inventory

60

60

55

Total Current Assets

164.31

163.48

153.76

Cash and cash equivalents decreased to NT$94.05 billion. Days of inventory remained at 60 days.

Liabilities

(Amount: NT$ billion)

4Q20

3Q20

4Q19

Total Current Liabilities

78.24

59.15

72.71

Notes & Accounts Payable

7.86

7.70

8.88

Short-Term Credit / Bonds

38.04

16.40

36.81

Payables on Equipment

5.45

7.38

3.03

Other

26.89

27.67

23.99

Long-Term Credit / Bonds

24.77

49.46

47.89

Long-Term Investment Liabilities

20.75

20.14

20.09

Total Liabilities

141.74

147.33

162.97

Debt to Equity

60

%

67

%

79

%

Current liabilities increased to NT$78.24 billion, mainly from increase of short-term credit/bonds to NT$38.04 billion as long-term credit/bonds declined to NT$24.77 billion. Total liabilities declined to NT$141.74 billion, leading to a debt to equity ratio of 60%.

Analysis of Revenue2

Revenue Breakdown by Region

Region

4Q20

3Q20

2Q20

1Q20

4Q19

North America

29

%

30

%

31

%

29

%

30

%

Asia Pacific

61

%

57

%

55

%

56

%

55

%

Europe

5

%

6

%

5

%

6

%

6

%

Japan

5

%

7

%

9

%

9

%

9

%

Revenue from Asia Pacific rose to 61% as business from North America declined to 29% of sales. Business from Europe was 5% while contribution from Japan declined to 5%.

Revenue Breakdown by Geometry

Geometry

4Q20

3Q20

2Q20

1Q20

4Q19

14nm and below

0

%

0

%

0

%

0

%

0

%

14nm<x<=28nm

18

%

14

%

13

%

9

%

10

%

28nm<x<=40nm

22

%

23

%

23

%

25

%

22

%

40nm<x<=65nm

18

%

19

%

16

%

16

%

16

%

65nm<x<=90nm

8

%

10

%

13

%

15

%

18

%

90nm<x<=0.13um

11

%

11

%

11

%

11

%

11

%

0.13um<x<=0.18um

13

%

13

%

13

%

13

%

12

%

0.18um<x<=0.35um

8

%

8

%

8

%

8

%

8

%

0.5um and above

2

%

2

%

3

%

3

%

3

%

Revenue contribution from 28nm continued to increase, growing to 18% of the business while 40nm contribution declined to 22% of sales.

Revenue Breakdown by Customer Type

Customer Type

4Q20

3Q20

2Q20

1Q20

4Q19

Fabless

87

%

88

%

88

%

88

%

87

%

IDM

13

%

12

%

12

%

12

%

13

%

Revenue from fabless customers decreased to 87% of revenue.

Revenue Breakdown by Application (1)

Application

4Q20

3Q20

2Q20

1Q20

4Q19

Computer

16

%

13

%

14

%

13

%

13

%

Communication

49

%

54

%

51

%

54

%

54

%

Consumer

25

%

24

%

24

%

24

%

24

%

Others

10

%

9

%

11

%

9

%

9

%

Revenue from the communication segment declined to 49%, while business from computer applications grew to 16%. Business from consumer applications increased to 25% as other segments increased to 10%.

(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 4Q20.

(To view blended ASP trend, please click here for 4Q20 ASP)

Shipment and Utilization Rate3

Wafer Shipments

4Q20

3Q20

2Q20

1Q20

4Q19

Wafer Shipments
(8" K equivalents)

2,293

2,254

2,218

2,148

2,042

Quarterly Capacity Utilization Rate

4Q20

3Q20

2Q20

1Q20

4Q19

Utilization Rate

99

%

97

%

98

%

93

%

92

%

Total Capacity
(8" K equivalents)

2,311

2,308

2,291

2,278

2,237

In 4Q20, wafer shipments increased 1.7% QoQ to 2,293K, while quarterly capacity remained flat at 2,311K. As a result, the overall utilization rate in 4Q20 was 99%.

Capacity4

Total capacity in the fourth quarter totaled 2,311K 8-inch equivalent wafers. We foresee in the first quarter, that capacity will decline to 2,280K 8-inch equivalent wafers, mainly reflecting the product mix changes at WTK and Fab 8A.

Annual Capacity in
thousands of wafers

Quarterly Capacity in
thousands of wafers

FAB

Geometry
(um)

2020

2019

2018

2017

FAB

1Q21E

4Q20

3Q20

2Q20

WTK

6"

3.5 – 0.45

371

370

396

422

WTK

84

93

93

93

8A

8"

0.5 – 0.25

802

825

825

825

8A

186

201

201

201

8C

8"

0.35 – 0.11

452

436

383

357

8C

113

113

113

113

8D

8"

0.13 – 0.09

371

359

347

341

8D

94

93

93

93

8E

8"

0.5 – 0.15

449

426

418

418

8E

113

113

113

113

8F

8"

0.18 – 0.11

485

434

431

417

8F

120

122

122

122

8S

8"

0.18 – 0.11

373

372

372

347

8S

101

93

93

93

8N

8"

0.5 – 0.11

917

831

771

753

8N

226

230

230

230

12A

12"

0.13 – 0.014

1044

997

997

970

12A

257

261

261

261

12i

12"

0.13 – 0.040

628

595

555

537

12i

157

160

160

155

12X

12"

0.040 – 0.028

217

203

183

97

12X

59

57

56

53

12M

12"

0.090 – 0.040

391

98

-

-

12M

96

98

98

98

Total(1)

9,188

8,148

7,673

7,304

Total

2,280

2,311

2,308

2,291

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$1.5 billion

CAPEX spending in 4Q20 was US$418 million, leading to a total of US$1.0 billion in capital expenditure for 2020. Full year 2021 CAPEX is budgeted at US$1.5 billion.

Brief Summary of Full Year 2020 Consolidated Results

Operating Results

(Amount: NT$ million)

2020

2019

YoY %
change

Operating Revenues

176,821

148,202

19.3

Gross Profit

38,997

21,315

83.0

Operating Expenses

(23,244

)

(21,807

)

6.6

Net Other Operating Income
and Expenses

6,254

5,182

20.7

Operating Income

22,007

4,690

369.3

Net Non-Operating Income
and Expenses

5,919

1,046

465.9

Income Tax (Expense)
Benefit

(746

)

393

-

Net Income Attributable to
Stockholders of the Parent

29,189

9,708

200.7

EPS (NT$ per share)

2.42

0.82

(US$ per ADS)

0.425

0.144

  • Consolidated revenue in NTD increased 19.3% YoY to NT$176.82 billion, from NT$148.20 billion in 2019.

  • Gross margin was 22.1%, compared to 14.4% in 2019.

  • Operating margin was 12.5%, compared to 3.2% in 2019.

  • Net income attributable to stockholders of the parent was NT$29.19 billion in 2020.

  • EPS was NT$2.42, or EPADS of US$0.425 for 2020.

  • The contribution from 28nm technologies and below accounted for 14% in 2020. 40nm business accounted for 23% in 2020.

Annual Sales Breakdown in Revenue for Foundry Segment

Region

2020

2019

North America

30

%

32

%

Asia Pacific

57

%

57

%

Europe

6

%

6

%

Japan

7

%

5

%

Technology

2020

2019

14nm and below

0

%

0

%

14nm<x<=28nm

14

%

11

%

28nm<x<=40nm

23

%

23

%

40nm<x<=65nm

17

%

15

%

65nm<x<=90nm

11

%

14

%

90nm<x<=0.13um

11

%

12

%

0.13um<x<=0.18um

13

%

13

%

0.18um<x<=0.35um

8

%

9

%

0.5um and above

3

%

3

%

Customer Type

2020

2019

Fabless

88

%

91

%

IDM

12

%

9

%

Application

2020

2019

Computer

14

%

14

%

Communication

52

%

52

%

Consumer

24

%

26

%

Others

10

%

8

%

First Quarter 2021 Outlook & Guidance

Quarter-over-Quarter Guidance:

  • Wafer Shipments: To increase by approximately 2%

  • ASP in USD: To increase by 2-3%

  • Gross Profit Margin: To be in the mid-20% range

  • Capacity Utilization: 100%

  • 2021 CAPEX: US$1.5 billion

Recent Developments / Announcements

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

Conference Call / Webcast Announcement

Wednesday, January 27, 2021

Time: 5:00 PM (Taipei) / 4:00 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 4Q20 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 December 31, 2020

Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

December 31, 2020

US$

NT$

%

Assets

Current assets

Cash and cash equivalents

3,302

94,048

24.9

%

Accounts receivable, net

958

27,273

7.2

%

Inventories, net

792

22,552

6.0

%

Other current assets

717

20,433

5.4

%

Total current assets

5,769

164,306

43.5

%

Non-current assets

Funds and investments

1,987

56,578

15.0

%

Property, plant and equipment

4,662

132,775

35.2

%

Right-of-use assets

272

7,748

2.1

%

Other non-current assets

565

16,109

4.2

%

Total non-current assets

7,486

213,210

56.5

%

Total assets

13,255

377,516

100.0

%

Liabilities

Current liabilities

Short-term loans

388

11,057

2.9

%

Payables

1,132

32,240

8.5

%

Current portion of long-term liabilities

948

26,985

7.2

...

%

Other current liabilities

279

7,961

2.2

%

Total current liabilities

2,747

78,243

20.8

%

Non-current liabilities

Bonds payable

586

16,690

4.4

%

Long-term loans

284

8,081

2.1

%

Lease liabilities, noncurrent

177

5,027

1.3

%

Other non-current liabilities

1,183

33,702

9.0

%

Total non-current liabilities

2,230

63,500

16.8

%

Total liabilities

4,977

141,743

37.6

%

Equity

Equity attributable to the parent company

Capital

4,362

124,224

32.9

%

Additional paid-in capital

1,517

43,211

11.4

%

Retained earnings and other components of equity

2,400

68,345

18.1

%

Treasury stock

(4

)

(120

)

(0.0

%)

Total equity attributable to the parent company

8,275

235,660

62.4

%

Non-controlling interests

3

113

0.0

%

Total equity

8,278

235,773

62.4

%

Total liabilities and equity

13,255

377,516

100.0

%

Note:New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2020 exchange rate of NT $28.48 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

December 31, 2020

December 31, 2019

Chg.

December 31, 2020

September 30, 2020

Chg.

US$

NT$

US$

NT$

%

US$

NT$

US$

NT$

%

Operating revenues

1,590

45,296

1,469

41,849

8.2

%

1,590

45,296

1,575

44,870

0.9

%

Operating costs

(1,209

)

(34,448

)

(1,224

)

(34,881

)

(1.2

%)

(1,209

)

(34,448

)

(1,232

)

(35,101

)

(1.9

%)

Gross profit

381

10,848

245

6,968

55.7

%

381

10,848

343

9,769

11.0

%

23.9

%

23.9

%

16.7

%

16.7

%

23.9

%

23.9

%

21.8

%

21.8

%

Operating expenses

- Sales and marketing expenses

(41

)

(1,175

)

(35

)

(996

)

17.9

%

(41

)

(1,175

)

(35

)

(1,009

)

16.4

%

- General and administrative expenses

(69

)

(1,966

)

(56

)

(1,603

)

22.7

%

(69

)

(1,966

)

(58

)

(1,614

)

21.9

%

- Research and development expenses

(112

)

(3,194

)

(121

)

(3,453

)

(7.5

%)

(112

)

(3,194

)

(116

)

(3,314

)

(3.6

%)

- Expected credit impairment gain (loss)

0

0

(4

)

(113

)

-

0

0

15

429

(99.9

%)

Subtotal

(222

)

(6,335

)

(216

)

(6,165

)

2.8

%

(222

)

(6,335

)

(194

)

(5,508

)

15.0

%

Net other operating income and expenses

38

1,102

42

1,215

(9.3

%)

38

1,102

101

2,872

(61.6

%)

Operating income

197

5,615

71

2,018

178.3

%

197

5,615

250

7,133

(21.3

%)

12.4

%

12.4

%

4.8

%

4.8

%

12.4

%

12.4

%

15.9

%

15.9

%

Net non-operating income and expenses

197

5,619

33

946

493.4

%

197

5,619

73

2,074

171.0

%

Income from continuing operations
before income tax

394

11,234

104

2,964

278.9

%

394

11,234

323

9,207

22.0

%

24.8

%

24.8

%

7.1

%

7.1

%

24.8

%

24.8

%

20.5

%

20.5

%

Income tax benefit (expenses)

(12

)

(344

)

7

191

-

(12

)

(344

)

(7

)

(197

)

74.8

%

Net income

382

10,890

111

3,155

245.1

%

382

10,890

316

9,010

20.9

%

24.0

%

24.0

%

7.5

%

7.5

%

24.0

%

24.0

%

20.1

%

20.1

%

Other comprehensive income (loss)

135

3,831

(54

)

(1,538

)

-

135

3,831

49

1,390

175.6

%

Total comprehensive income (loss)

517

14,721

57

1,617

810.3

%

517

14,721

365

10,400

41.5

%

Net income attributable to:

Stockholders of the parent

393

11,196

135

3,837

191.8

%

393

11,196

320

9,106

22.9

%

Non-controlling interests

(11

)

(306

)

(24

)

(682

)

(55.1

%)

(11

)

(306

)

(4

)

(96

)

216.5

%

Comprehensive income (loss) attributable to:

Stockholders of the parent

528

15,027

80

2,291

556.0

%

528

15,027

369

10,497

43.2

%

Non-controlling interests

(11

)

(306

)

(23

)

(674

)

(54.6

%)

(11

)

(306

)

(4

)

(97

)

216.5

%

Earnings per share-basic

0.032

0.92

0.012

0.33

0.032

0.92

0.026

0.75

Earnings per ADS (2)

0.162

4.60

0.058

1.65

0.162

4.60

0.132

3.75

Weighted average number of shares

outstanding (in millions)

12,206

11,709

12,206

12,108

Notes:

(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2020 exchange rate of NT $28.48 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 Twelve-Month Period Ended

December 31, 2020

December 31, 2020

US$

NT$

%

US$

NT$

%

Operating revenues

1,590

45,296

100.0

%

6,209

176,821

100.0

%

Operating costs

(1,209

)

(34,448

)

(76.1

%)

(4,840

)

(137,824

)

(77.9

%)

Gross profit

381

10,848

23.9

%

1,369

38,997

22.1

%

Operating expenses

- Sales and marketing expenses

(41

)

(1,175

)

(2.6

%)

(146

)

(4,152

)

(2.4

%)

- General and administrative expenses

(69

)

(1,966

)

(4.3

%)

(233

)

(6,664

)

(3.7

%)

- Research and development expenses

(112

)

(3,194

)

(7.1

%)

(453

)

(12,896

)

(7.3

%)

- Expected credit impairment gain

0

0

0.0

%

16

468

0.3

%

Subtotal

(222

)

(6,335

)

(14.0

%)

(816

)

(23,244

)

(13.1

%)

Net other operating income and expenses

38

1,102

2.5

%

220

6,254

3.5

%

Operating income

197

5,615

12.4

%

773

22,007

12.5

%

Net non-operating income and expenses

197

5,619

12.4

%

208

5,919

3.3

%

Income from continuing operations
before income tax

394

11,234

24.8

%

981

27,926

15.8

%

Income tax expense

(12

)

(344

)

(0.8

%)

(27

)

(746

)

(0.4

%)

Net income

382

10,890

24.0

%

954

27,180

15.4

%

Other comprehensive income (loss)

135

3,831

8.5

%

165

4,686

2.6

%

Total comprehensive income (loss)

517

14,721

32.5

%

1,119

31,866

18.0

%

Net income attributable to:

Stockholders of the parent

393

11,196

24.7

%

1,025

29,189

16.5

%

Non-controlling interests

(11

)

(306

)

(0.7

%)

(71

)

(2,009

)

(1.1

%)

Comprehensive income (loss) attributable to:

Stockholders of the parent

528

15,027

33.2

%

1,185

33,748

19.1

%

Non-controlling interests

(11

)

(306

)

(0.7

%)

(66

)

(1,882

)

(1.1

%)

Earnings per share-basic

0.032

0.92

0.085

2.42

Earnings per ADS (2)

0.162

4.60

0.425

12.10

Weighted average number of shares
outstanding (in millions)

12,206

12,073

Notes:

(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2020 exchange rate of NT $28.48 per U.S. Dollar.

(2) 1 ADS equals 5 common shares.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statement of Cash Flows

For The Twelve-Month Period Ended December 31, 2020

Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

US$

NT$

Cash flows from operating activities :

Net income before tax

981

27,926

Depreciation & Amortization

1,717

48,908

Share of profit of associates and joint ventures

(234

)

(6,668

)

Changes in working capital & others

(156

)

(4,421

)

Net cash provided by operating activities

2,308

65,745

Cash flows from investing activities :

Acquisition of property, plant and equipment

(925

)

(26,345

)

Proceeds from disposal of property, plant and equipment

61

1,737

Acquisition of intangible assets

(71

)

(2,009

)

Increase in other financial assets

(437

)

(12,438

)

Others

(36

)

(1,057

)

Net cash used in investing activities

(1,408

)

(40,112

)

Cash flows from financing activities :

Decrease in short-term loans

(33

)

(933

)

Redemption of bonds

(481

)

(13,703

)

Proceeds from long-term loans

475

13,529

Repayments of long-term loans

(470

)

(13,392

)

Cash dividends

(343

)

(9,766

)

Treasury stock acquired

(59

)

(1,678

)

Treasury stock sold to employees

59

1,678

Others

(47

)

(1,336

)

Net cash used in financing activities

(899

)

(25,601

)

Effect of exchange rate changes on cash and cash equivalents

(52

)

(1,476

)

Net decrease in cash and cash equivalents

(51

)

(1,444

)

Cash and cash equivalents at beginning of period

3,353

95,492

Cash and cash equivalents at end of period

3,302

94,048

Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2020 exchange rate of NT $28.48 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 December 31, 2020, the three-month period ending September 30, 2020, and the equivalent three-month period that ended December 31, 2019. For all 4Q20 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the December 31, 2020 exchange rate of NT$ 28.48 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210127005391/en/

Contacts

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