Strategic focus in 5G, auto, AIoT markets will further strengthen UMC’s global leading specialty foundry position

Third Quarter 2021 Overview¹:

• Revenue: NT$55.91 billion (US$2.01 billion)
• Gross margin: 36.8%; Operating margin: 27.1%
• Revenue from 22/28nm: 19%
• Capacity utilization rate: 100%+
• Net income attributable to shareholders of the parent: NT$17.46 billion (US$627 million)
• Earnings per share: NT$1.43; earnings per ADS: US$0.257

TAIPEI, Taiwan — (BUSINESS WIRE) — October 27, 2021 — 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 2021.

Third quarter consolidated revenue was NT$55.91 billion, increasing 9.8% QoQ from NT$50.91 billion in 2Q21. Compared to a year ago, 3Q21 revenue grew 24.6% YoY from NT$44.87 billion in 3Q20. Consolidated gross margin for 3Q21 was 36.8%. Net income attributable to the shareholders of the parent was NT$17.46 billion, with earnings per ordinary share of NT$1.43.

Jason Wang, UMC co-president, said, “In the third quarter, we continued to experience robust chip demand across computing, consumer and communication end segments. Higher 12’’ wafer shipments in the quarter reflected ongoing product mix enhancements and partially contributed to the lift in blended ASP. Overall wafer shipments grew 2.6% QoQ to 2.50 million 8-inch equivalents. Revenue from 28nm technologies continued to rise while business engagements in 22nm have led to a growing number of customers’ tape outs across wireless, display, and IoT markets, further diversifying our product pipeline.”

Co-president Wang continued, “Looking into the fourth quarter, we anticipate wafer shipments and the ASP trend will remain firm. Capacity utilization across 8” and 12” facilities will continue to remain fully loaded, as gross margin continues to exhibit upward momentum, thanks to our team’s efforts in optimizing capacity productivity and product mix. The current business cycle provides an opportune time for UMC to strengthen customer relationships, along with our technology competitiveness and the incremental capacity growth to elevate our market position. Our focus on growing our comprehensive logic and specialty technology portfolio has been welcomed by our customers and we continue to broaden our product range to fulfill their needs. With the P5 & P6 expansion projects underway at our flagship 12A in Tainan, given the strong demand from our customers, we are well positioned to grow and capture additional market share in 2022.”

Co-president Wang added, “In addition, the company continue to make strides towards a greener future. Earlier this month, UMC was honored to receive the Green Chemistry Application and Innovation Award from Taiwan’s Environmental Protection Agency. The award recognizes our efforts to introduce chemical substitutes that minimize impact to the environment and the health of our employees. At our Outstanding Supplier Awards this year, UMC also took the opportunity to reiterate our commitment to achieve net zero carbon emissions by 2050 and to invite suppliers to work with us to build a low carbon supply chain. As a key semiconductor player, UMC understands that we have a responsibility to proactively respond to climate change and to promote sustainable practices in our industry. Together with our upstream and downstream partners, we will continue working towards our net zero carbon emissions target.”

Summary of Operating Results