Note 5: 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.
CAPEX
CAPEX plans for 2008 are revised down to US$400-500 million. By the end of the third quarter, UMC's year-to-date CAPEX totaled US$308 million.
UMC Capital Expenditure by Year -- in US$ billion
Year 2007 2006 2005 2004 2003 2002
CAPEX $0.9 $1.0 $0.7(1) $1.5 $0.4 $0.8
2008 CAPEX Plan
8"fab 12"fab 12"R&D Total
UMC 16% 52% 32% US$400-500 million
(1) 2005 CAPEX contained UMC 2005 full year CAPEX and UMCi CAPEX during
1Q05.
Recent Developments / Announcements
Oct. 27, 2008 UMC Announces Foundry Industry's First 28nm SRAMs
Sep. 29, 2008 UMC Names Arthur Kuo as Senior Vice President of UMC-USA
Sep. 08, 2008 UMC Selected as a Global Index Component for Down Jones
Sustainability Indexes
Aug. 27, 2008 UMC Announces Share Buy-Back Program
Aug. 04, 2008 UMC's Embedded DRAM, URAM(TM) Proven in 65nm Customer
Silicon
Please visit UMC's website http://www.umc.com/english/news/index.asp for further details regarding the above announcements.
Fourth Quarter of 2008 Outlook & Guidance
Quarter-over-quarter Guidance:
-- Wafer Shipments: to decrease by approximately 25% points
-- Wafer ASP in NT$: to increase by approximately 5% points
-- Capacity Utilization Rates: approximately 55%
-- Profitability: gross profit margin to be approximately 10%
-- Sales breakdown by three major applications remains unchanged
-- 2008 Capex Budget: US$400-500 million
Conference Call / Webcast Announcement
Wednesday, October 29, 2008
Time: 8:00 PM (Taipei) / 8:00 AM (New York) / 12:00 Noon (London)
Dial-in numbers and Access Codes:
USA Toll Free: 1 866 549 1292
Hong Kong and Other Areas: +852 3005 2050
Access Code: UMC
A live webcast and replay of the 3Q08 results announcement will be available at http://www.umc.com under the "Investor Relations \ Investor Events" section.
About UMC
UMC (NYSE: UMC) (TSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing services for applications spanning every major sector of the IC industry. UMC's customer-driven foundry solution allow chip designers to leverage the strength of the company's leading-edge processes, which include production proven 65nm, 45/40nm, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i are both in volume production for a variety of customer products. The company employs approximately 13,000 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, and the United States. UMC can be found on the web at http://www.umc.com .
Safe Harbor Statements
Except for statements in respect of historical matters, the statements in this release contain "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. 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, among other things: our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; the risks associated with international global business activities; our dependence upon key personnel; general economic and political conditions, including those related to the semiconductor, communications, consumer electronics and computer industries; possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; reduced end-user purchases relative to expectations and orders; fluctuations in foreign currency exchange rates; and those risks identified in the section entitled "Risk Factors" in UMC's Annual Report on Form 20-F ("20-F") for the year ended December 31, 2007 filed with the U.S. Securities and Exchange Commission on May 2, 2008.
The financial statements included in this release are unaudited and unconsolidated, and prepared and published in accordance with ROC GAAP. Investors are cautioned that there are many differences between ROC GAAP and US GAAP, as described in note 35 to the financial statements on 20-F.
The forward-looking statements in this release reflect the current belief of UMC as of the date of this release and UMC undertakes no obligation to update these forward-looking statements for events or circumstances that occur after such date or to reflect the occurrence of unanticipated events.
-- FINANCIAL TABLES TO FOLLOW --
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Balance Sheet
As of Sep 30, 2008
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Sep 30, 2008
US$ NT$ %
ASSETS
Current Assets
Cash and Cash Equivalents 782 25,194 11.2%
Financial assets at fair value
through profit or loss, current 60 1,939 0.9%
Notes & Accounts Receivable 438 14,120 6.3%
Inventories 365 11,762 5.2%
Other Current Assets 58 1,877 0.8%
Total Current Assets 1,703 54,892 24.4%
Non-Current Assets
Funds and Long-term Investments 1,616 52,061 23.2%
Property, Plant and Equipment 3,326 107,171 47.7%
Intangible Assets 116 3,745 1.7%
Other Assets 207 6,654 3.0%
Total Non-Current Assets 5,265 169,631 75.6%
TOTAL ASSETS 6,968 224,523 100.0%
LIABILITIES
Current Liabilities
Financial liabilities at fair value
through profit or loss, current 6 176 0.1%
Payables 441 14,221 6.3%
Other Current Liabilities 7 239 0.1%
Total Current Liabilities 454 14,636 6.5%
Non-Current Liabilities
Bonds Payable 233 7,496 3.3%
Other Liabilities 115 3,721 1.7%
Total Non-Current Liabilities 348 11,217 5.0%
TOTAL LIABILITIES 802 25,853 11.5%
STOCKHOLDERS' EQUITY
Capital Stock 4,203 135,435 60.3%
Additional Paid-in Capital 1,872 60,321 26.9%
Retained Earnings, Unrealized Gain
on Financial Assets and
Translation Adjustment 372 11,995 5.3%
Treasury Stock (281) (9,081) (4.0%)
TOTAL STOCKHOLDERS' EQUITY 6,166 198,670 88.5%
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY 6,968 224,523 100.0%
Note: New Taiwan Dollars have been translated into U.S. Dollars at
the September 30, 2008 exchange rate of NT $32.22 per U.S.
Dollar.
All figures are in ROC GAAP.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Year over Year Comparison
Three-Month Period Ended
Sep 30, 2008 Sep 30, 2007 %
US$ NT$ US$ NT$ Chg.
Net Sales 768 24,748 963 31,028 (20.2%)
Cost of Goods Sold (633) (20,380) (708) (22,805) (10.6%)
Net Gross Profit 135 4,368 255 8,223 (46.9%)
17.6% 17.6% 26.5% 26.5% --
Operating Expenses
-- Sales & Marketing 21 673 29 922 (27.0%)
-- General & Administrative 20 639 23 753 (15.1%)
-- Research & Development 65 2,109 72 2,313 (8.8%)
106 3,421 124 3,988 (14.2%)
Operating Income (Loss) 29 947 131 4,235 (77.6%)
3.8% 3.8% 13.6% 13.6% --
Net Non-Operating Income
(Expenses) (65) (2,105) 179 5,764 (136.5%)
Income (Loss) from continuing
operations before income tax (36) (1,158) 310 9,999 (111.6%)
(4.7%) (4.7%) 32.2% 32.2% --
Income Tax (Expense) Benefit (8) (255) (23) (766) (66.7%)
Net Income (Loss) (44) (1,413) 287 9,233 (115.3%)
(5.7%) (5.7%) 29.8% 29.8% --
Earnings per Share (0.003) (0.11) 0.017 0.55 --
Earnings per ADS (2) (0.017) (0.55) 0.085 2.75 --
Weighted Average Number of Shares
Outstanding (in millions) -- 13,130 -- 15,412 --
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Quarter over Quarter Comparison
Three-Month Period Ended
Sep 30, 2008 Jun 30, 2008 %
US$ NT$ US$ NT$ Chg.
Net Sales 768 24,748 783 25,238 (1.9%)
Cost of Goods Sold (633) (20,380) (603) (19,443) 4.8%
Net Gross Profit 135 4,368 180 5,795 (24.6%)
17.6% 17.6% 23.0% 23.0% --
Operating Expenses
- Sales & Marketing 21 673 19 620 8.6%
- General & Administrative 20 639 23 744 (14.1%)
- Research & Development 65 2,109 65 2,090 0.9%
106 3,421 107 3,454 (1.0%)
Operating Income (Loss) 29 947 73 2,341 (59.5%)
3.8% 3.8% 9.3% 9.3% --
Net Non-Operating Income
(Expenses) (65) (2,105) 3 120 (1,854.2%)
Income (Loss) from continuing
operations before income tax (36) (1,158) 76 2,461 (147.1%)
(4.7%) (4.7%) 9.8% 9.8% --
Income Tax (Expense) Benefit (8) (255) (2) (64) 298.4%
Net Income (Loss) (44) (1,413) 74 2,397 (158.9%)
(5.7%) (5.7%) 9.5% 9.5% --
Earnings per Share (0.003) (0.11) 0.006 0.18 --
Earnings per ADS (2) (0.017) (0.55) 0.028 0.90 --
Weighted Average Number of Shares
Outstanding (in millions) -- 13,130 -- 13,172 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
September 30, 2008 exchange rate of NT$32.22 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
For the Three-Month
Period Ended For the year Ended
Sep 30, 2008 Sep 30, 2008
US$ NT$ % US$ NT$ %
Net Sales 768 24,748 100.0% 2,296 73,989 100.0%
Cost of Goods Sold (633) (20,380) (82.4%) (1,870) (60,250) (81.4%)
Net Gross Profit 135 4,368 17.6% 426 13,739 18.6%
Operating Expenses
- Sales & Marketing 21 673 2.7% 62 2,009 2.7%
- General &
Administrative 20 639 2.6% 63 2,019 2.7%
- Research &
Development 65 2,109 8.5% 193 6,233 8.5%
106 3,421 13.8% 318 10,261 13.9%
Operating Income (Loss) 29 947 3.8% 108 3,478 4.7%
Net Non-Operating Income
(Expenses) (65) (2,105) (8.5%) (59) (1,914) (2.6%)
Income (Loss) from
continuing operations
before income tax (36) (1,158) (4.7%) 49 1,564 2.1%
Income Tax (Expense)
Benefit (8) (255) (1.0%) (12) (374) (0.5%)
Net Income (Loss) (44) (1,413) (5.7%) 37 1,190 1.6%
Earnings per Share (0.003) (0.11) -- 0.003 0.09 --
Earnings per ADS (2) (0.017) (0.55) -- 0.014 0.45 --
Weighted Average Number
of Shares Outstanding
(in millions) -- 13,130 -- -- 13,158 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
September 30, 2008 exchange rate of NT$32.22 per U.S. Dollar. All
figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Statement of Cash Flows
For The Nine Months Ended Sep 30, 2008
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
USD NTD
Cash flows from operating activities
Net Income 37 1,190
Depreciation & Amortization 876 28,233
Loss on decline in market value
and obsolescence of inventories 11 369
Cash dividends received under the
equity method 15 493
Investment loss accounted for
under the equity method 2 50
Loss on valuation of financial
assets and liabilities 85 2,744
Impairment loss 103 3,308
Gain on disposal of investments (55) (1,787)
Gain on disposal of property,
plant and equipment (1) (26)
Exchange gain on financial assets
and liabilities (0) (8)
Exchange gain on long-term liabilities (5) (179)
Amortization of bond discounts 0 7
Amortization of deferred income (4) (124)
Change in assets, liabilities and others (69) (2,224)
Net cash provided by operating activities 995 32,046
Cash flows from investing activities:
Proceeds from disposal of
available-for-sales financial assets 60 1,939
Acquisition of financial assets
measured at cost (7) (216)
Acquisition of long-term
investments accounted for under
the equity method (45) (1,445)
Proceeds from liquidation of
long-term investments 6 198
Acquisition of property, plant
and equipment (308) (9,951)
Proceeds from disposal of
property, plant and equipment 3 107
Increase in deferred charges (19) (628)
Decrease in other assets -- others 0 2
Net cash used in investing activities (310) (9,994)
Cash flows from financing activities:
Redemption of bonds (705) (22,717)
Cash dividends (291) (9,383)
Payment of employee bonus (9) (286)
Remuneration paid to directors
and supervisors (0) (12)
Purchase of treasury stock (65) (2,087)
Decrease in deposits-in (0) (6)
Net cash used in financing activities (1,070) (34,491)
Effect of exchange rate changes on
cash and cash equivalents 5 180
Net decrease in cash and cash equivalents (380) (12,259)
Cash and cash equivalents at
beginning of period 1,162 37,453
Cash and cash equivalents at end of period 782 25,194
Note: (1) New Taiwan Dollars have been translated into U.S. Dollars at the
September 30, 2008 exchange rate of NT$32.22 per U.S. Dollar.
All figures are in ROC GAAP.
Contacts:
Bowen Huang or I Cheng Lu
UMC, Investor Relations
Tel: +886-2-2700-6999 ext. 6957
Email: bowen_huang@umc.com or i_cheng_lu@umc.com
Web site: http://www.umc.com/
