UMC Reports Second Quarter 2023 Results

Safe Harbor Statements

This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding anticipated financial results for the second quarter of 2023; the expected wafer shipment and ASP; the anticipated annual budget; capex strategies; environmental protection goals and water management strategies; impact of foreign currency exchange rates; expected foundry capacities; the ability to obtain new business opportunities; and information under the heading “Third Quarter of 2023 Outlook and Guidance.”

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) dependence upon the frequent introduction of new services and technologies based on the latest developments in the industry in which UMC operates; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international business activities; (iv) dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including natural disasters, terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risk factors is included in UMC’s filings with the United States Securities and Exchange Commission, including its Annual Report on Form 20-F. All information provided in this release is as of the date of this release and are based on assumptions that UMC believes to be reasonable as of this date, and UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

The financial statements included in this release are prepared and published in accordance with Taiwan International Financial Reporting Standards, or TIFRSs, recognized by the Financial Supervisory Commission in the ROC, which is different from International Financial Reporting Standards, or IFRSs, issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from generally accepted accounting principles in the ROC and generally accepted accounting principles in the United States.

- FINANCIAL TABLES TO FOLLOW -

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheet
As of June 30, 2023
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)


	June 30, 2023
	US$	NT$	%
Assets
Current assets
Cash and cash equivalents	5,239	163,097	29.5	%
Accounts receivable, net	984	30,618	5.5	%
Inventories, net	1,110	34,553	6.3	%
Other current assets	346	10,765	1.9	%
Total current assets	7,679	239,033	43.2	%

Non-current assets
Funds and investments	2,263	70,455	12.7	%
Property, plant and equipment	6,380	198,618	35.9	%
Right-of-use assets	234	7,287	1.3	%
Other non-current assets	1,215	37,803	6.9	%
Total non-current assets	10,092	314,163	56.8	%
Total assets	17,771	553,196	100.0	%

Liabilities
Current liabilities
Short-term loans	5	170	0.0	%
Payables	1,839	57,254	10.4	%
Dividends payable	1,446	45,017	8.1	%
Current portion of long-term liabilities	367	11,422	2.1	%
Other current liabilities	936	29,115	5.2	%
Total current liabilities	4,593	142,978	25.8	%

Non-current liabilities
Bonds payable	578	17,988	3.2	%
Long-term loans	581	18,074	3.3	%
Lease liabilities, noncurrent	162	5,038	0.9	%
Other non-current liabilities	1,356	42,230	7.7	%
Total non-current liabilities	2,677	83,330	15.1	%
Total liabilities	7,270	226,308	40.9	%

Equity
Equity attributable to the parent company
Capital	4,016	125,031	22.6	%
Additional paid-in capital	439	13,656	2.5	%
Retained earnings and other components of equity	6,035	187,858	33.9	%
Total equity attributable to the parent company	10,490	326,545	59.0	%
Non-controlling interests	11	343	0.1	%
Total equity	10,501	326,888	59.1	%
Total liabilities and equity	17,771	553,196	100.0	%

Note：New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2023 exchange rate of NT $31.13 per U.S. Dollar.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data


	Year over Year Comparison										Quarter over Quarter Comparison
	Three-Month Period Ended										Three-Month Period Ended
	June 30, 2023				June 30, 2022				Chg.		June 30, 2023				March 31, 2023				Chg.
	US$		NT$		US$		NT$		%		US$		NT$		US$		NT$		%
Operating revenues	1,808		56,296		2,315		72,055		(21.9	%)	1,808		56,296		1,741		54,209		3.8	%
Operating costs	(1,157	)	(36,044	)	(1,240	)	(38,583	)	(6.6	%)	(1,157	)	(36,044	)	(1,123	)	(34,985	)	3.0	%
Gross profit	651		20,252		1,075		33,472		(39.5	%)	651		20,252		618		19,224		5.3	%
	36.0	%	36.0	%	46.5	%	46.5	%			36.0	%	36.0	%	35.5	%	35.5	%
Operating expenses
- Sales and marketing expenses	(23	)	(716	)	(29	)	(915	)	(21.7	%)	(23	)	(716	)	(31	)	(950	)	(24.6	%)
- General and administrative expenses	(55	)	(1,715	)	(83	)	(2,579	)	(33.5	%)	(55	)	(1,715	)	(67	)	(2,102	)	(18.4	%)
- Research and development expenses	(107	)	(3,317	)	(103	)	(3,209	)	3.4	%	(107	)	(3,317	)	(89	)	(2,767	)	19.9	%
- Expected credit impairment gain (loss)	1		30		(0	)	(3	)	-		1		30		1		39		(21.6	%)
Subtotal	(184	)	(5,718	)	(215	)	(6,706	)	(14.7	%)	(184	)	(5,718	)	(186	)	(5,780	)	(1.1	%)
Net other operating income and expenses	37		1,141		45		1,398		(18.4	%)	37		1,141		33		1,037		10.0	%
Operating income	504		15,675		905		28,164		(44.3	%)	504		15,675		465		14,481		8.2	%
	27.8	%	27.8	%	39.1	%	39.1	%			27.8	%	27.8	%	26.7	%	26.7	%

Net non-operating income and expenses	90		2,810		(83	)	(2,586	)	-		90		2,810		149		4,647		(39.5	%)
Income from continuing operations before income tax	594		18,485		822		25,578		(27.7	%)	594		18,485		614		19,128		(3.4	%)
	32.8	%	32.8	%	35.5	%	35.5	%			32.8	%	32.8	%	35.3	%	35.3	%

Income tax expense	(83	)	(2,588	)	(132	)	(4,088	)	(36.7	%)	(83	)	(2,588	)	(88	)	(2,743	)	(5.7	%)
Net income	511		15,897		690		21,490		(26.0	%)	511		15,897		526		16,385		(3.0	%)
	28.2	%	28.2	%	29.8	%	29.8	%			28.2	%	28.2	%	30.2	%	30.2	%

Other comprehensive income (loss)	(8	)	(238	)	(120	)	(3,749	)	(93.7	%)	(8	)	(238	)	107		3,325		-

Total comprehensive income (loss)	503		15,659		570		17,741		(11.7	%)	503		15,659		633		19,710		(20.6	%)

Net income attributable to:
Shareholders of the parent	502		15,641		685		21,327		(26.7	%)	502		15,641		520		16,183		(3.3	%)
Non-controlling interests	9		256		5		163		56.3	%	9		256		6		202		26.9	%

Comprehensive income (loss) attributable to:
Shareholders of the parent	495		15,403		565		17,578		(12.4	%)	495		15,403		627		19,508		(21.0	%)
Non-controlling interests	8		256		5		163		56.3	%	8		256		6		202		26.9	%

Earnings per share-basic	0.041		1.27		0.056		1.74				0.041		1.27		0.042		1.31
Earnings per ADS ⁽²⁾	0.204		6.35		0.279		8.70				0.204		6.35		0.210		6.55
Weighted average number of shares
outstanding (in millions)			12,349				12,283						12,349				12,349


Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2023 exchange rate of NT $31.13 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data

	For the Three-Month Period Ended						For the Six-Month Period Ended
	June 30, 2023						June 30, 2023
	US$		NT$		%		US$		NT$		%
Operating revenues	1,808		56,296		100.0	%	3,550		110,506		100.0	%
Operating costs	(1,157	)	(36,044	)	(64.0	%)	(2,282	)	(71,029	)	(64.3	%)
Gross profit	651		20,252		36.0	%	1,268		39,477		35.7	%


Operating expenses
- Sales and marketing expenses	(23	)	(716	)	(1.3	%)	(54	)	(1,667	)	(1.5	%)
- General and administrative expenses	(55	)	(1,715	)	(3.1	%)	(122	)	(3,817	)	(3.5	%)
- Research and development expenses	(107	)	(3,317	)	(5.9	%)	(195	)	(6,084	)	(5.5	%)
- Expected credit impairment gain	1		30		0.1	%	2		69		0.1	%
Subtotal	(184	)	(5,718	)	(10.2	%)	(369	)	(11,499	)	(10.4	%)
Net other operating income and expenses	37		1,141		2.0	%	70		2,177		2.0	%
Operating income	504		15,675		27.8	%	969		30,155		27.3	%

Net non-operating income and expenses	90		2,810		5.0	%	239		7,459		6.7	%
Income from continuing operations before income tax	594		18,485		32.8	%	1,208		37,614		34.0	%


Income tax expense	(83	)	(2,588	)	(4.6	%)	(171	)	(5,333	)	(4.8	%)
Net income	511		15,897		28.2	%	1,037		32,281		29.2	%

Other comprehensive income (loss)	(8	)	(238	)	(0.4	%)	99		3,088		2.8	%

Total comprehensive income (loss)	503		15,659		27.8	%	1,136		35,369		32.0	%

Net income attributable to:
Shareholders of the parent	502		15,641		27.8	%	1,022		31,824		28.8	%
Non-controlling interests	9		256		0.4	%	15		457		0.4	%

Comprehensive income (loss) attributable to:
Shareholders of the parent	495		15,403		27.4	%	1,121		34,911		31.6	%
Non-controlling interests	8		256		0.4	%	15		458		0.4	%

Earnings per share-basic	0.041		1.27				0.083		2.58
Earnings per ADS ⁽²⁾	0.204		6.35				0.414		12.90

Weighted average number of shares outstanding (in millions)			12,349						12,349

Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2023 exchange rate of NT $31.13 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statement of Cash Flows
For The Six-Month Period Ended June 30, 2023
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

	US$		NT$
Cash flows from operating activities :
Net income before tax	1,208		37,614
Depreciation & Amortization	637		19,834
Share of profit of associates and joint ventures	(128	)	(3,974	)
Income tax paid	(475	)	(14,781	)
Changes in working capital & others	66		2,031
Net cash provided by operating activities	1,308		40,724

Cash flows from investing activities :
Decrease in financial assets measured at amortized cost	21		658
Acquisition of property, plant and equipment	(1,731	)	(53,895	)
Acquisition of intangible assets	(39	)	(1,212	)
Others	38		1,196
Net cash used in investing activities	(1,711	)	(53,253	)

Cash flows from financing activities :
Increase in short-term loans	5		170
Proceeds from long-term loans	130		4,050
Repayments of long-term loans	(121	)	(3,766	)
Increase in guarantee deposits	73		2,278
Others	(10	)	(324	)
Net cash provided by financing activities	77		2,408

Effect of exchange rate changes on cash and cash equivalents	(19	)	(601	)
Net decrease in cash and cash equivalents	(345	)	(10,722	)

Cash and cash equivalents at beginning of period	5,584		173,819

Cash and cash equivalents at end of period	5,239		163,097

Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2023 exchange rate of NT $31.13 per U.S. Dollar.

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