Company Announcements

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)--Oct. 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

Operating Results

(Amount: NT$ million)

3Q21

 

2Q21

QoQ %
change

 

3Q20

YoY %
change

Operating Revenues

55,907

 

50,908

9.8

 

44,870

24.6

Gross Profit

20,544

 

15,908

29.1

 

9,769

110.3

Operating Expenses

(6,636)

 

(6,201)

7.0

 

(5,508)

20.5

Net Other Operating Income and Expenses

1,227

 

1,606

(23.6)

 

2,872

(57.3)

Operating Income

15,135

 

11,313

33.8

 

7,133

112.2

Net Non-Operating Income and Expenses

4,317

 

1,881

129.5

 

2,074

108.2

Net Income Attributable to Shareholders of the Parent

17,460

 

11,943

46.2

 

9,106

91.7

EPS (NT$ per share)

1.43

 

0.98

 

 

0.75

 

(US$ per ADS)

0.257

 

0.176

 

 

0.135

 

Operating revenues in 3Q21 increased 9.8% to NT$55.91 billion which included higher 12” wafer shipments and the optimization in product mix. Revenue contribution from 40nm and below technologies was 37%. Gross profit grew 29.1% QoQ to NT$20.54 billion, or 36.8% of revenue. Operating expenses increased 7.0% to NT$6.64 billion. Net other operating income declined to NT$1.23 billion. Net non-operating income increased to NT$4.32 billion. Net income attributable to shareholders of the parent increased to NT$17.46 billion.

Earnings per ordinary share for the quarter was NT$1.43. Earnings per ADS was US$0.257. The basic weighted average number of outstanding shares in 3Q21 was 12,206,292,756, compared with 12,206,292,756 shares in 2Q21 and 12,107,651,452 shares in 3Q20. The diluted weighted average number of outstanding shares was 12,411,100,649 in 3Q21, compared with 12,382,592,798 shares in 2Q21 and 12,179,561,492 shares in 3Q20. The fully diluted shares counted on September 30, 2021 were approximately 12,427,179,000.

Detailed Financials Section

COGS & Expenses

(Amount: NT$ million)

3Q21

 

2Q21

QoQ %
change

 

3Q20

YoY %
change

Operating Revenues

55,907

 

50,908

9.8

 

44,870

24.6

COGS

(35,363)

 

(35,000)

1.0

 

(35,101)

0.7

Depreciation

(9,900)

 

(10,187)

(2.8)

 

(10,911)

(9.3)

Other Mfg. Costs

(25,463)

 

(24,813)

2.6

 

(24,190)

5.3

Gross Profit

20,544

 

15,908

29.1

 

9,769

110.3

Gross Margin (%)

36.8%

 

31.3%

 

 

21.8%

 

Operating Expenses

(6,636)

 

(6,201)

7.0

 

(5,508)

20.5

G&A

(2,119)

 

(1,901)

11.5

 

(1,614)

31.2

Sales & Marketing

(1,212)

 

(1,131)

7.2

 

(1,009)

20.1

R&D

(3,303)

 

(3,168)

4.3

 

(3,314)

(0.3)

Expected Credit Impairment Gain (Loss)

(2)

(1)

46.7

429

-

Net Other Operating Income & Expenses

1,227

1,606

(23.6)

2,872

(57.3)

Operating Income

15,135

11,313

33.8

7,133

112.2

Operating revenues increased to NT$55.91 billion. COGS went up 1.0 % QoQ to NT$35.36 billion, as the 2.8% sequential decline in depreciation was offset by the 2.6% increase in other manufacturing costs mainly from higher wafer shipments in 3Q21. Gross profit increased 29.1% QoQ to NT$20.54 billion, reflecting the uptick in overall average selling price across 8” and 12” wafer shipments. Operating expenses increased 7.0% QoQ to NT$6.64 billion, as G&A grew 11.5% sequentially to NT$2.12 billion while Sales & Marketing increased 7.2% QoQ to NT$1.21 billion. R&D increased 4.3% to NT$3.30 billion, representing 5.91% of revenue. Net other operating income was NT$1.23 billion. In 3Q21, operating income grew 33.8% QoQ to NT$15.14 billion.

Non-Operating Income and Expenses

(Amount: NT$ million)

3Q21

 

2Q21

 

3Q20

Non-Operating Income and Expenses

4,317

 

1,881

 

2,074

Net Interest Income and Expenses

(367)

 

(310)

 

(314)

Net Investment Gain and Loss

4,534

 

2,276

 

3,944

Exchange Gain and Loss

164

 

(84)

 

259

Other Gain and Loss

(14)

 

(1)

 

(1,815)

Net non-operating income in 3Q21 was NT$4.32 billion, primarily reflecting NT$4.53 billion in net investment gain and a NT$164 million in exchange gain, offset by a NT$367 million in net interest expense.

Cash Flow Summary

(Amount: NT$ million)

For the 3-Month
Period Ended
Sep. 30, 2021

For the 3-Month
Period Ended
Jun. 30, 2021

Cash Flow from Operating Activities

22,125

23,123

Net income before tax

19,452

13,194

Depreciation & Amortization

11,754

11,671

Share of profit of associates and joint ventures

(3,356)

(881)

Income tax paid

(1,365)

(300)

Changes in working capital & others

(4,360)

(561)

Cash Flow from Investing Activities

(23,222)

(18,482)

Acquisition of PP&E

(17,457)

(8,520)

Acquisition of intangible assets

(371)

(835)

Increase in other financial assets

(5,677)

(10,893)

Others

283

1,766

Cash Flow from Financing Activities

(9,694)

13,238

Bank loans

(4,510)

(1,384)

Bonds Issued

11,161

9,600

Redemption of bonds

-

(2,000)

Increase in deposits-in

3,738

7,205

Cash dividends

(19,870)

-

Others

(213)

(183)

Effect of Exchange Rate

(104)

(1,164)

Net Cash Flow

(10,895)

16,715

Beginning balance

124,000

107,285

Ending balance

113,105

124,000

In 3Q21, cash inflow from operating activities was NT$22.13 billion. Cash outflow from investing activities amounted to NT$23.22 billion, which included NT$17.88 billion in capital expenditure, resulting in free cash flow of NT$4.25 billion. Cash outflow from financing activities was NT$9.69 billion, mainly from a NT$19.87 billion in the distribution of cash dividend and a NT$4.51 billion in payment in bank loans, offset by a NT$11.16 billion in bond issuance and a NT$3.74 billion payment as capacity deposit for 12A P6. Net cash outflow in 3Q21 was NT$10.90 billion. Over the next 12 months, the company expects to repay NT$6.75 billion in bank loans.

Current Assets

(Amount: NT$ billion)

3Q21

2Q21

3Q20

Cash and Cash Equivalents

113.11

124.00

98.84

Notes & Accounts Receivable

32.99

30.11

26.96

Days Sales Outstanding

51

53

55

Inventories, net

23.15

22.44

22.86

Days of Inventory

59

58

60

Total Current Assets

211.60

207.83

163.48

Cash and cash equivalents decreased to NT$113.11 billion. Days of inventory increased by a day to 59 days.

Liabilities

(Amount: NT$ billion)

3Q21

2Q21

3Q20

Total Current Liabilities

84.55

85.00

59.15

Notes & Accounts Payable

8.26

8.42

7.70

Short-Term Credit / Bonds

24.26

19.65

16.40

Payables on Equipment

6.72

6.67

7.38

Dividends Payable

-

19.88

-

Other

45.31

30.38

27.67

Long-Term Credit / Bonds

51.09

50.97

49.46

Long-Term Investment Liabilities

8.14

20.61

20.14

Total Liabilities

171.19

181.49

147.33

Debt to Equity

66%

76%

67%

Current liabilities decreased to NT$84.55 billion, which included a NT$24.26 billion in short-term credit/bonds. Long-term credit/bonds increased slightly to NT$51.09 billion. Total liabilities declined to NT$171.19 billion, leading to a debt to equity ratio of 66%.

Analysis of Revenue2

Revenue Breakdown by Region

Region

3Q21

2Q21

1Q21

4Q20

3Q20

North America

22%

22%

23%

29%

30%

Asia Pacific

65%

63%

63%

61%

57%

Europe

7%

8%

8%

5%

6%

Japan

6%

7%

6%

5%

7%

Revenue from Asia-Pacific increased to 65% as business from North America remained at 22% of sales. Business from Europe was 7% while contribution from Japan declined to 6%.

Revenue Breakdown by Geometry

Geometry

3Q21

2Q21

1Q21

4Q20

3Q20

14nm and below

0%

0%

0%

0%

0%

14nm<x<=28nm

19%

20%

20%

18%

14%

28nm<x<=40nm

18%

18%

20%

22%

23%

40nm<x<=65nm

19%

19%

18%

18%

19%

65nm<x<=90nm

8%

9%

8%

8%

10%

90nm<x<=0.13um

12%

11%

11%

11%

11%

0.13um<x<=0.18um

13%

13%

13%

13%

13%

0.18um<x<=0.35um

8%

8%

8%

8%

8%

0.5um and above

3%

2%

2%

2%

2%

Revenue contribution from 22/28nm was 19% of the wafer revenue, while 40nm contribution stayed at 18% of sales.

Revenue Breakdown by Customer Type

Customer Type

3Q21

2Q21

1Q21

4Q20

3Q20

Fabless

86%

84%

86%

87%

88%

IDM

14%

16%

14%

13%

12%

Revenue from fabless customers accounted for 86% of revenue.

Revenue Breakdown by Application (1)

Application

3Q21

2Q21

1Q21

4Q20

3Q20

Computer

17%

17%

16%

16%

13%

Communication

46%

47%

46%

49%

54%

Consumer

27%

26%

27%

25%

24%

Others

10%

10%

11%

10%

9%

Revenue from the communication segment declined to 46%, while business from computer applications remained at 17%. Business from consumer applications increased to 27% as other segments accounted for 10% of revenue.

(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) grew in 3Q21.

(To view blended ASP trend, please click here for 3Q21 ASP)

Shipment and Utilization Rate3

Wafer Shipments

 

3Q21

2Q21

1Q21

4Q20

3Q20

Wafer Shipments
(8” K equivalents)

2,503

2,440

2,372

2,293

2,254

 

Quarterly Capacity Utilization Rate

 

3Q21

2Q21

1Q21

4Q20

3Q20

Utilization Rate

100%+

100%+

100%

99%

97%

Total Capacity
(8” K equivalents)

2,383

2,370

2,280

2,311

2,308

In 3Q21, wafer shipments increased 2.6% QoQ to 2,503K, while quarterly capacity grew to 2,383K. Overall utilization rate in 3Q21 exceeded 100%.

Capacity4

Total capacity in the third quarter grew by 0.5% QoQ to 2,383K 8-inch equivalent wafers. Capacity is expected to slightly increase in the fourth quarter to 2,419K 8-inch equivalent wafers, mainly reflecting the capacity expansion at Fab 12i, 12M, 12X and 8N.

Annual Capacity in
thousands of wafers

 

Quarterly Capacity in
thousands of wafers

FAB

Geometry
(um)

2020

2019

2018

2017

 

FAB

4Q21E

3Q21

2Q21

1Q21

WTK

6"

3.5 – 0.45

371

370

396

422

 

WTK

81

80

84

84

8A

8"

0.5 – 0.25

802

825

825

825

 

8A

190

190

190

186

8C

8"

0.35 – 0.11

452

436

383

357

 

8C

115

115

115

113

8D

8"

0.18 – 0.09

371

359

347

341

 

8D

95

95

95

94

8E

8"

0.5 – 0.15

449

426

418

418

 

8E

115

115

115

113

8F

8"

0.18 – 0.11

485

434

431

417

 

8F

137

137

122

120

8S

8"

0.18 – 0.11

373

372

372

347

 

8S

102

102

102

101

8N

8"

0.5 – 0.11

917

831

771

753

 

8N

232

230

230

226

12A

12"

0.13 – 0.014

1044

997

997

970

 

12A

271

271

271

257

12i

12"

0.13 – 0.040

628

595

555

537

 

12i

164

160

160

157

12X

12"

0.040 – 0.028

217

203

183

97

 

12X

78

74

74

59

12M

12"

0.090 – 0.040

391

98

-

-

 

12M

104

98

98

96

Total(1)

9,188

8,148

7,673

7,304

 

Total

2,419

2,383

2,370

2,280

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$2.3 billion

CAPEX spending in 3Q21 was US$642 million. Full year 2021 CAPEX is budgeted at US$2.3 billion, which includes the company’s collaborative Fab 12A P6 expansion plan with customers.

Fourth Quarter 2021 Outlook & Guidance

Quarter-over-Quarter Guidance:

  • Wafer Shipments: To increase by 1-2%
  • ASP in USD: To increase by 1-2%
  • Gross Profit Margin: To be in the high-30% range
  • Capacity Utilization: 100%
  • 2021 CAPEX: US$2.3 billion

Recent Developments / Announcements

Sep 3, 2021

UMC and Chipbond to Establish Strategic Cooperation Through the Exchange of New Share Issuance

Jun 1, 2021

UMC Pledges Net Zero Carbon Emissions by 2050

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

Conference Call / Webcast Announcement

Wednesday, October 27, 2021

Time:5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 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 3Q21 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 approximately 800,000 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 third 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 “Third 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 September 30, 2021
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
 
 
September 30, 2021
US$ NT$ %
Assets
Current assets
Cash and cash equivalents

4,063

113,105

26.4%

Notes & Accounts receivable, net

1,185

32,986

7.7%

Inventories, net

832

23,150

5.4%

Other current assets

1,521

42,363

9.8%

Total current assets

7,601

211,604

49.3%

 
Non-current assets
Funds and investments

2,256

62,817

14.7%

Property, plant and equipment

4,515

125,702

29.3%

Right-of-use assets

260

7,239

1.7%

Other non-current assets

770

21,431

5.0%

Total non-current assets

7,801

217,189

50.7%

Total assets

15,402

428,793

100.0%

 
Liabilities
Current liabilities
Short-term loans

77

2,135

0.5%

Payables

1,322

36,800

8.6%

Current portion of long-term liabilities

795

22,128

5.2%

Other current liabilities

843

23,482

5.4%

Total current liabilities

3,037

84,545

19.7%

 
Non-current liabilities
Bonds payable

721

20,083

4.7%

Long-term loans

1,114

31,006

7.2%

Lease liabilities, noncurrent

166

4,622

1.1%

Other non-current liabilities

1,111

30,933

7.2%

Total non-current liabilities

3,112

86,644

20.2%

Total liabilities

6,149

171,189

39.9%

 
Equity
Equity attributable to the parent company
Capital

4,462

124,233

29.0%

Additional paid-in capital

1,555

43,293

10.0%

Retained earnings and other components of equity

3,234

90,043

21.0%

Treasury stock

(4)

(120)

(0.0%)

Total equity attributable to the parent company

9,247

257,449

60.0%

Non-controlling interests

6

155

0.1%

Total equity

9,253

257,604

60.1%

Total liabilities and equity

15,402

428,793

100.0%

Note:New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2021 exchange rate of NT $27.84 per U.S. Dollar.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) 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, 2021 September 30, 2020 Chg. September 30, 2021 June 30, 2021 Chg.
US$ NT$ US$ NT$ % US$ NT$ US$ NT$ %
Operating revenues

2,008

55,907

1,612

44,870

24.6%

2,008

55,907

1,829

50,908

9.8%

Operating costs

(1,270)

(35,363)

(1,261)

(35,101)

0.7%

(1,270)

(35,363)

(1,258)

(35,000)

1.0%

Gross profit

738

20,544

351

9,769

110.3%

738

20,544

571

15,908

29.1%

36.8%

36.8%

21.8%

21.8%

36.8%

36.8%

31.3%

31.3%

Operating expenses
- Sales and marketing expenses

(44)

(1,212)

(36)

(1,009)

20.1%

(44)

(1,212)

(41)

(1,131)

7.2%

- General and administrative expenses

(75)

(2,119)

(58)

(1,614)

31.2%

(75)

(2,119)

(68)

(1,901)

11.5%

- Research and development expenses

(119)

(3,303)

(119)

(3,314)

(0.3%)

(119)

(3,303)

(114)

(3,168)

4.3%

- Expected credit impairment gain (loss)

(0)

(2)

15

429

-

(0)

(2)

(0)

(1)

46.7%

Subtotal

(238)

(6,636)

(198)

(5,508)

20.5%

(238)

(6,636)

(223)

(6,201)

7.0%

Net other operating income and expenses

44

1,227

103

2,872

(57.3%)

44

1,227

58

1,606

(23.6%)

Operating income

544

15,135

256

7,133

112.2%

544

15,135

406

11,313

33.8%

27.1%

27.1%

15.9%

15.9%

27.1%

27.1%

22.2%

22.2%

 
Net non-operating income and expenses

155

4,317

75

2,074

108.2%

155

4,317

68

1,881

129.5%

Income from continuing operations
before income tax

699

19,452

331

9,207

111.3%

699

19,452

474

13,194

47.4%

34.8%

34.8%

20.5%

20.5%

34.8%

34.8%

25.9%

25.9%

 
Income tax expenses

(76)

(2,100)

(7)

(197)

966.1%

(76)

(2,100)

(48)

(1,327)

58.2%

Net income

623

17,352

324

9,010

92.6%

623

17,352

426

11,867

46.2%

31.0%

31.0%

20.1%

20.1%

31.0%

31.0%

23.3%

23.3%

 
Other comprehensive income (loss)

(13)

(370)

50

1,390

-

(13)

(370)

(69)

(1,935)

(80.9%)

 
Total comprehensive income (loss)

610

16,982

374

10,400

63.3%

610

16,982

357

9,932

71.0%

 
Net income attributable to:
  Shareholders of the parent

627

17,460

327

9,106

91.7%

627

17,460

429

11,943

46.2%

  Non-controlling interests

(4)

(108)

(3)

(96)

12.0%

(4)

(108)

(3)

(76)

41.6%

 
Comprehensive income (loss) attributable to:
  Shareholders of the parent

614

17,090

377

10,497

62.8%

614

17,090

359

10,008

70.8%

  Non-controlling interests

(4)

(108)

(3)

(97)

12.0%

(4)

(108)

(2)

(76)

41.6%

 
Earnings per share-basic

0.051

1.43

0.027

0.75

0.051

1.43

0.035

0.98

Earnings per ADS (2)

0.257

7.15

0.135

3.75

0.257

7.15

0.176

4.90

Weighted average number of shares
outstanding (in millions)

12,206

12,108

12,206

12,206

Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2021 exchange rate of NT $27.84 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) 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, 2021 September 30, 2021
US$ NT$ % US$ NT$ %
Operating revenues

2,008

55,907

100.0%

5,528

153,911

100.0%

Operating costs

(1,270)

(35,363)

(63.2%)

(3,770)

(104,965)

(68.2%)

Gross profit

738

20,544

36.8%

1,758

48,946

31.8%

 
 
Operating expenses
- Sales and marketing expenses

(44)

(1,212)

(2.2%)

(123)

(3,432)

(2.2%)

- General and administrative expenses

(75)

(2,119)

(3.8%)

(209)

(5,825)

(3.8%)

- Research and development expenses

(119)

(3,303)

(5.9%)

(342)

(9,521)

(6.2%)

- Expected credit impairment gain (loss)

(0)

(2)

(0.0%)

0

9

0.0%

Subtotal

(238)

(6,636)

(11.9%)

(674)

(18,769)

(12.2%)

Net other operating income and expenses

44

1,227

2.2%

140

3,893

2.5%

Operating income

544

15,135

27.1%

1,224

34,070

22.1%

 
Net non-operating income and expenses

155

4,317

7.7%

343

9,559

6.3%

Income from continuing operations
before income tax

699

19,452

34.8%

1,567

43,629

28.4%

 
 
Income tax expense

(76)

(2,100)

(3.8%)

(162)

(4,522)

(3.0%)

Net income

623

17,352

31.0%

1,405

39,107

25.4%

 
Other comprehensive income (loss)

(13)

(370)

(0.6%)

45

1,251

0.8%

 
Total comprehensive income (loss)

610

16,982

30.4%

1,450

40,358

26.2%

 
Net income attributable to:
  Shareholders of the parent

627

17,460

31.2%

1,431

39,831

25.9%

  Non-controlling interests

(4)

(108)

(0.2%)

(26)

(724)

(0.5%)

 
Comprehensive income (loss) attributable to:
  Shareholders of the parent

614

17,090

30.6%

1,476

41,082

26.7%

  Non-controlling interests

(4)

(108)

(0.2%)

(26)

(724)

(0.5%)

 
Earnings per share-basic

0.051

1.43

0.117

3.26

Earnings per ADS (2)

0.257

7.15

0.585

16.30

 
Weighted average number of shares
outstanding (in millions)

12,206

12,206

Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2021 exchange rate of NT $27.84 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statement of Cash Flows
For The Nine-Month Period Ended September 30, 2021
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
 
US$ NT$
Cash flows from operating activities :
Net income before tax

1,567

43,629

Depreciation & Amortization

1,266

35,258

Share of profit of associates and joint ventures

(216)

(6,004)

Income tax paid

(62)

(1,715)

Changes in working capital & others

(273)

(7,638)

Net cash provided by operating activities

2,282

63,530

 
Cash flows from investing activities :
Acquisition of property, plant and equipment

(1,197)

(33,328)

Acquisition of intangible assets

(66)

(1,825)

Increase in other financial assets

(595)

(16,578)

Others

104

2,906

Net cash used in investing activities

(1,754)

(48,825)

 
Cash flows from financing activities :
Decrease in short-term loans

(314)

(8,750)

Proceeds from bonds issued

746

20,761

Redemption of bonds

(72)

(2,000)

Proceeds from long-term loans

524

14,591

Repayments of long-term loans

(336)

(9,367)

Increase in guarantee deposits

407

11,324

Cash dividends

(714)

(19,870)

Others

(21)

(565)

Net cash provided by financing activities

220

6,124

 
Effect of exchange rate changes on cash and cash equivalents

(63)

(1,772)

Net increase in cash and cash equivalents

685

19,057

 
Cash and cash equivalents at beginning of period

3,378

94,048

 
Cash and cash equivalents at end of period

4,063

113,105

Note: New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2021 exchange rate of NT $27.84 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 September 30, 2021, the three-month period ending June 30, 2021, and the equivalent three-month period that ended September 30, 2020. For all 3Q21 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the September 30, 2021 exchange rate of NT$ 27.84 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.

 

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

Source: United Microelectronics Corporation