UMC Reports First Quarter 2021 Results

Rhea-AI Summary

United Microelectronics Corporation (UMC) reported robust Q1 2021 results with consolidated revenue of NT$47.10 billion, up 4.0% QoQ and 11.4% YoY. The gross margin improved to 26.5%, with a net income of NT$10.43 billion, translating to earnings per share of NT$0.85. Wafer shipments reached 2.37 million, fully utilizing capacity. The company plans a significant NT$100 billion investment to expand capacity at Fab 12A, aiming for production in Q2 2023, further solidifying its market position in 28nm and 22nm technologies.

Positive

• Consolidated revenue increased to NT$47.10 billion, up 4.0% QoQ and 11.4% YoY.
• Gross profit rose 15.2% QoQ to NT$12.49 billion, with a gross margin of 26.5%.
• Net income attributable to stockholders was NT$10.43 billion.
• Wafer shipments reached 2.37 million 8-inch equivalents, fully utilizing capacity.
• Investment of NT$100 billion approved for Fab 12A expansion to be operational in Q2 2023.

Negative

• Net income decreased slightly by 6.9% QoQ from NT$11.20 billion in Q4 2020.
• Revenue from North America declined to 23% from 29% in Q4 2020.
• Net non-operating income fell 40.2% QoQ to NT$3.36 billion.

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the first quarter of 2021.

First quarter consolidated revenue was NT$47.10 billion, which increased 4.0% QoQ from NT$45.30 billion in 4Q20. Compared to a year ago, 1Q21 revenue was up 11.4% YoY from NT$42.27 billion in 1Q20. Consolidated gross margin for 1Q21 was 26.5%. Net income attributable to the stockholders of the parent was NT$10.43 billion, with earnings per ordinary share of NT$0.85.

Jason Wang, co-president of UMC, said, “Amid the semiconductor component shortage, we are working with our customers, suppliers and partners to alleviate the capacity tightness across the supply chain. In Q1, robust wafer demand led to full utilization in our manufacturing sites, bringing overall wafer shipments to 2.37 million 8-inch equivalents. For the quarter, our gross profit grew 15.2% QoQ to NT$12.49 billion which partly reflected higher contribution from our 28nm technologies. During the first quarter, we continued to see an increase in 28nm wafer shipments driven by strong wafer demand associated with digital TV, set top box and connectivity chips designed into smartphones. As a result, 28nm revenue grew 18% QoQ, representing 20% of our wafer business. Furthermore, we have started to ship 22nm products to fulfill consumer demand, leading to the recognition of 22nm wafer revenue in 1Q21. We foresee a significant pick up in 22nm product tape outs that will increase our 22/28nm product pipeline, optimize overall product mix and enhance UMC’s foundry share.”

Co-president Wang continued, “Looking into the second quarter, market demand will continue to outpace supply which will lift wafer shipments and blended ASP in USD. Recent market dynamics have provided us and our customers an opportunity to reinforce our capex strategy within our ROI boundary, while trying to alleviate the long term capacity constraint in the supply chain. Therefore, our Board of Directors has approved an investment plan which will expand the capacity at UMC Fab 12A capacity Phase 6 (P6) in Taiwan’s Tainan Science Park through an innovative, win-win partnership model with several leading global customers. The P6 expansion is scheduled for production in the second quarter of 2023, with total investment for the project earmarked at NT$100 billion. In addition to UMC’s previously announced 2021 CAPEX of US$1.5 billion, the bulk of which is allocated towards equipment for the company’s Fab 12A P5 site adjacent to P6, total UMC investment in the Tainan Science Park will reach approximately NT$150 billion over the next three years. The P6 program is supported by a multi-year product alignment between UMC and the involved customers that includes a loading protection mechanism that will ensure the P6 capacity is maintained at a healthy loading level. We look forward to leveraging our No. 1 worldwide foundry market position in multiple areas such as 28nm OLED driver IC production, so we may further strengthen UMC’s semiconductor industry relevance and capture new market opportunities down the road.”

Summary of Operating Results

Operating Results
(Amount: NT$ million)	1Q21	4Q20	QoQ % change	1Q20	YoY % change
Operating Revenues	47,097	45,296	4.0	42,268	11.4
Gross Profit	12,494	10,848	15.2	8,122	53.8
Operating Expenses	(5,932)	(6,335)	(6.4)	(5,722)	3.7
Net Other Operating Income and Expenses	1,060	1,102	(3.8)	1,014	4.5
Operating Income	7,622	5,615	35.7	3,414	123.2
Net Non-Operating Income and Expenses	3,361	5,619	(40.2)	(2,592)	-
Net Income Attributable to Stockholders of the Parent	10,428	11,196	(6.9)	2,207	372.5
EPS (NT$ per share)	0.85	0.92		0.19
(US$ per ADS)	0.149	0.161		0.033

Operating revenues in 1Q21 grew 4.0% to NT$47.10 billion. Revenue contribution from 40nm and below technologies remained at to 40%. Gross profit grew 15.2% QoQ to NT$12.49 billion, or 26.5% of revenue. Operating expenses declined 6.4% to NT$5.93 billion. Net other operating income declined to NT$1.06 billion. Net non-operating income was NT$3.36 billion. Net income attributable to stockholders of the parent declined slightly to NT$10.43 billion.

Earnings per ordinary share for the quarter was NT$0.85. Earnings per ADS was US$0.149. The basic weighted average number of outstanding shares in 1Q21 was 12,206,292,756, compared with 12,206,292,756 shares in 4Q20 and 11,782,936,260 shares in 1Q20. The diluted weighted average number of outstanding shares was 12,381,821,873 in 1Q21, compared with 12,359,115,536 shares in 4Q20 and 13,087,825,472 shares in 1Q20. The fully diluted shares counted on March 31, 2021 were approximately 12,397,900,000.

Detailed Financials Section

COGS & Expenses
(Amount: NT$ million)	1Q21	4Q20	QoQ % change	1Q20	YoY % change
Operating Revenues	47,097	45,296	4.0	42,268	11.4
COGS	(34,603)	(34,448)	0.4	(34,146)	1.3
Depreciation	(10,412)	(10,436)	(0.2)	(11,124)	(6.4)
Other Mfg. Costs	(24,191)	(24,012)	0.7	(23,022)	5.1
Gross Profit	12,494	10,848	15.2	8,122	53.8
Gross Margin (%)	26.5%	23.9%		19.2%
Operating Expenses	(5,932)	(6,335)	(6.4)	(5,722)	3.7
G&A	(1,806)	(1,966)	(8.2)	(1,543)	17.0
Sales & Marketing	(1,089)	(1,175)	(7.2)	(1,040)	4.8
R&D	(3,049)	(3,194)	(4.5)	(3,185)	(4.3)
Expected Credit Impairment Gain (Loss)	12	0	5,409.7	46	(73.1)
Net Other Operating Income & Expenses	1,060	1,102	(3.8)	1,014	4.5
Operating Income	7,622	5,615	35.7	3,414	123.2

Operating revenues increased to NT$47.10 billion. COGS remained at NT$34.60 billion, as depreciation and other manufacturing costs remained relatively flat compared to 4Q20. Gross profit increased 15.2% QoQ to NT$12.49 billion, reflecting higher contribution from 28nm wafer shipments. Operating expenses decreased 6.4% QoQ to NT$5.93 billion, as G&A declined 8.2% sequentially to NT$1.81 billion and Sales & Marketing fell 7.2% QoQ to NT$1.09 billion. R&D declined 4.5% sequentially to NT$3.05 billion, representing 6.5% of 1Q21 operating revenues. Net other operating income was NT$1.06 billion. In 1Q21, operating income surged 35.7% QoQ to NT$7.62 billion.

Non-Operating Income and Expenses
(Amount: NT$ million)	1Q21	4Q20	1Q20
Non-Operating Income and Expenses	3,361	5,619	(2,592)
Net Interest Income and Expenses	(272)	(278)	(368)
Net Investment Gain and Loss	3,530	5,703	(1,974)
Exchange Gain and Loss	93	199	(148)
Other Gain and Loss	10	(5)	(102)

Net non-operating income in 1Q21 was NT$3.36 billion, mainly resulting from NT$3.53 billion in net investment gain, as well as a NT$93 million in exchange gain, offset by a NT$272 million in net interest expense.

Cash Flow Summary
(Amount: NT$ million)	For the 3-Month Period Ended Mar. 31, 2021	For the 3-Month Period Ended Dec. 31, 2020
Cash Flow from Operating Activities	18,281	16,072
Net income before tax	10,983	11,234
Depreciation & Amortization	11,833	11,993
Share of profit of associates and joint ventures	(1,767)	(3,822)
Income tax paid	(51)	(144)
Changes in working capital & others	(2,717)	(3,189)
Cash Flow from Investing Activities	(7,120)	(17,437)
Acquisition of PP&E	(7,352)	(11,738)
Acquisition of intangible assets	(619)	(293)
Increase in other financial assets	(8)	(4,625)
Others	859	(781)
Cash Flow from Financing Activities	2,580	(3,153)
Bank loans	2,368	(3,000)
Others	212	(153)
Effect of Exchange Rate	(504)	(273)
Net Cash Flow	13,237	(4,791)
Beginning balance	94,048	98,839
Ending balance	107,285	94,048

In 1Q21, cash inflow from operating activities was NT$18.28 billion. Cash outflow from investing activities totaled NT$7.12 billion, which included NT$7.81 billion in capital expenditure, resulting in free cash flow of NT$10.47 billion. Cash inflow from financing activities was NT$2.58 billion, mainly due to NT$2.37 billion in bank loans. Net cash inflow in 1Q21 was NT$13.24 billion. Over the next 12 months, the company expects to repay NT$5.43 billion in bank loans.

Current Assets
(Amount: NT$ billion)	1Q21	4Q20	1Q20
Cash and Cash Equivalents	107.29	94.05	95.17
Notes & Accounts Receivable	29.24	27.27	28.57
Days Sales Outstanding	55	55	59
Inventories, net	22.23	22.55	22.13
Days of Inventory	59	60	59
Total Current Assets	179.08	164.31	159.60

Cash and cash equivalents increased to NT$107.29 billion. Days of inventory decreased by a day to 59 days.

Liabilities
(Amount: NT$ billion)	1Q21	4Q20	1Q20
Total Current Liabilities	78.53	78.24	61.10
Notes & Accounts Payable	8.26	7.86	8.92
Short-Term Credit / Bonds	37.28	38.04	25.35
Payables on Equipment	5.29	5.45	2.78
Other	27.70	26.89	24.05
Long-Term Credit / Bonds	27.70	24.77	47.75
Long-Term Investment Liabilities	20.66	20.75	19.89
Total Liabilities	144.59	141.74	149.64
Debt to Equity	58%	60%	71%

Current liabilities remained at NT$78.53 billion, mainly from NT$37.28 billion in short-term credit/bonds, which was a decrease from NT$38.04 billion in Q4. Long-term credit/bonds increased to NT$27.70 billion. Total liabilities increased slightly to NT$144.59 billion, leading to a debt to equity ratio of 58%.

Analysis of Revenue²

Revenue Breakdown by Region
Region	1Q21	4Q20	3Q20	2Q20	1Q20
North America	23%	29%	30%	31%	29%
Asia Pacific	63%	61%	57%	55%	56%
Europe	8%	5%	6%	5%	6%
Japan	6%	5%	7%	9%	9%

Revenue from Asia Pacific rose to 63% as business from North America declined to 23% of sales. Business from Europe was 8% while contribution from Japan increased to 6%.

Revenue Breakdown by Geometry
Geometry	1Q21	4Q20	3Q20	2Q20	1Q20
14nm and below	0%	0%	0%	0%	0%
14nm<x<=28nm	20%	18%	14%	13%	9%
28nm<x<=40nm	20%	22%	23%	23%	25%
40nm<x<=65nm	18%	18%	19%	16%	16%
65nm<x<=90nm	8%	8%	10%	13%	15%
90nm<x<=0.13um	11%	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	2%	2%	2%	3%	3%

Revenue contribution from 28nm increased to 20% of the business while 40nm contribution declined to 20% of sales.

Revenue Breakdown by Customer Type
Customer Type	1Q21	4Q20	3Q20	2Q20	1Q20
Fabless	86%	87%	88%	88%	88%
IDM	14%	13%	12%	12%	12%

Revenue from fabless customers decreased to 86% of revenue.

Revenue Breakdown by Application (1)
Application	1Q21	4Q20	3Q20	2Q20	1Q20
Computer	16%	16%	13%	14%	13%
Communication	46%	49%	54%	51%	54%
Consumer	27%	25%	24%	24%	24%
Others	11%	10%	9%	11%	9%

Revenue from the communication segment declined to 46%, while business from computer applications remained at 16%. Business from consumer applications increased to 27% as other segments increased to 11%.

(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 1Q21.

(To view blended ASP trend, please click here for 1Q21 ASP)

Shipment and Utilization Rate³

Wafer Shipments
	1Q21	4Q20	3Q20	2Q20	1Q20
Wafer Shipments (8” K equivalents)	2,372	2,293	2,254	2,218	2,148
Quarterly Capacity Utilization Rate
	1Q21	4Q20	3Q20	2Q20	1Q20
Utilization Rate	100%	99%	97%	98%	93%
Total Capacity (8” K equivalents)	2,280	2,311	2,308	2,291	2,278

In 1Q21, wafer shipments increased 3.4% QoQ to 2,372K, while quarterly capacity declined to 2,280K due to fewer working days. Overall utilization rate in 1Q21 was 100%.

Capacity⁴

Total capacity in the first quarter was 2,280K 8-inch equivalent wafers. Capacity is expected to increase by 4% QoQ in the second quarter to 2,370K 8-inch equivalent wafers, mainly reflecting the capacity expansion at Fab 8N, Fab 12A and Fab 12X.

Annual Capacity in thousands of wafers								Quarterly Capacity in thousands of wafers
FAB		Geometry (um)	2020	2019	2018	2017		FAB	2Q21E	1Q21	4Q20	3Q20
WTK	6"	3.5 – 0.45	371	370	396	422		WTK	84	84	93	93
8A	8"	0.5 – 0.25	802	825	825	825		8A	190	186	201	201
8C	8"	0.35 – 0.11	452	436	383	357		8C	115	113	113	113
8D	8"	0.13 – 0.09	371	359	347	341		8D	95	94	93	93
8E	8"	0.5 – 0.15	449	426	418	418		8E	115	113	113	113
8F	8"	0.18 – 0.11	485	434	431	417		8F	122	120	122	122
8S	8"	0.18 – 0.11	373	372	372	347		8S	102	101	93	93
8N	8"	0.5 – 0.11	917	831	771	753		8N	230	226	230	230
12A	12"	0.13 – 0.014	1044	997	997	970		12A	271	257	261	261
12i	12"	0.13 – 0.040	628	595	555	537		12i	160	157	160	160
12X	12"	0.040 – 0.028	217	203	183	97		12X	74	59	57	56
12M	12"	0.090 – 0.040	391	98	-	-		12M	98	96	98	98
Total(1)			9,188	8,148	7,673	7,304		Total	2,370	2,280	2,311	2,308
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 1Q21 was US$275 million. Full year 2021 CAPEX is budgeted at US$2.3 billion, which includes the company’s collaborative Fab 12A P6 expansion plan with its customers.

Second Quarter 2021 Outlook & Guidance

Quarter-over-Quarter Guidance:

• Wafer Shipments: To increase by approximately 2%
• ASP in USD: To increase by 3-4%
• Gross Profit Margin: To challenge 30%
• Capacity Utilization: 100%
• 2021 CAPEX: US$2.3 billion

Recent Developments / Announcements

Apr 1, 2021	Taiwan’s MoEA & the Economic Commissioner of the Legislative Yuan visit UMC
Mar 8, 2021	Sensirion Gains Capacity Support from UMC as Both Companies Partner to Support the Battle Against COVID-19
Feb 24, 2021	UMC Board of Directors Announces Proposals for its Annual Shareholders Meeting
Jan 27, 2021	UMC 4Q20 Financial Results

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

Conference Call / Webcast Announcement

Wednesday, April 28, 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 1Q21 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 March 31, 2021
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
	March 31, 2021
	US$		NT$		%
Assets
Current assets
Cash and cash equivalents	3,760		107,285		27.2%
Accounts receivable, net	1,025		29,237		7.4%
Inventories, net	779		22,225		5.6%
Other current assets	713		20,336		5.2%
Total current assets	6,277		179,083		45.4%
Non-current assets
Funds and investments	2,273		64,835		16.4%
Property, plant and equipment	4,431		126,430		32.1%
Right-of-use assets	267		7,609		1.9%
Other non-current assets	571		16,305		4.2%
Total non-current assets	7,542		215,179		54.6%
Total assets	13,819		394,262		100.0%
Liabilities
Current liabilities
Short-term loans	181		5,163		1.3%
Payables	1,137		32,428		8.2%
Current portion of long-term liabilities	1,126		32,121		8.2%
Other current liabilities	309		8,819		2.2%
Total current liabilities	2,753		78,531		19.9%
Non-current liabilities
Bonds payable	368		10,492		2.7%
Long-term loans	603		17,210		4.4%
Lease liabilities, noncurrent	173		4,925		1.3%
Other non-current liabilities	1,171		33,431		8.4%
Total non-current liabilities	2,315		66,058		16.8%
Total liabilities	5,068		144,589		36.7%
Equity
Equity attributable to the parent company
Capital	4,354		124,224		31.5%
Additional paid-in capital	1,509		43,057		10.9%
Retained earnings and other components of equity	2,889		82,416		20.9%
Treasury stock	(4)		(120)		(0.0%)
Total equity attributable to the parent company	8,748		249,577		63.3%
Non-controlling interests	3		96		0.0%
Total equity	8,751		249,673		63.3%
Total liabilities and equity	13,819		394,262		100.0%
Note：New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2021 exchange rate of NT $28.53 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
	March 31, 2021				March 31, 2020				Chg.		March 31, 2021				December 31, 2020				Chg.
	US$		NT$		US$		NT$		%		US$		NT$		US$		NT$		%
Operating revenues	1,651		47,097		1,482		42,268		11.4%		1,651		47,097		1,588		45,296		4.0%
Operating costs	(1,213)		(34,603)		(1,197)		(34,146)		1.3%		(1,213)		(34,603)		(1,208)		(34,448)		0.4%
Gross profit	438		12,494		285		8,122		53.8%		438		12,494		380		10,848		15.2%
	26.5%		26.5%		19.2%		19.2%				26.5%		26.5%		23.9%		23.9%
Operating expenses
- Sales and marketing expenses	(38)		(1,089)		(36)		(1,040)		4.8%		(38)		(1,089)		(41)		(1,175)		(7.2%)
- General and administrative expenses	(63)		(1,806)		(55)		(1,543)		17.0%		(63)		(1,806)		(69)		(1,966)		(8.2%)
- Research and development expenses	(107)		(3,049)		(112)		(3,185)		(4.3%)		(107)		(3,049)		(112)		(3,194)		(4.5%)
- Expected credit impairment gain	0		12		2		46		(73.1%)		0		12		0		0		5,409.7%
Subtotal	(208)		(5,932)		(201)		(5,722)		3.7%		(208)		(5,932)		(222)		(6,335)		(6.4%)
Net other operating income and expenses	37		1,060		36		1,014		4.5%		37		1,060		39		1,102		(3.8%)
Operating income	267		7,622		120		3,414		123.2%		267		7,622		197		5,615		35.7%
	16.2%		16.2%		8.1%		8.1%				16.2%		16.2%		12.4%		12.4%
Net non-operating income and expenses	118		3,361		(91)		(2,592)		-		118		3,361		197		5,619		(40.2%)
Income from continuing operations before income tax	385		10,983		29		822		1,236.3%		385		10,983		394		11,234		(2.2%)
	23.3%		23.3%		1.9%		1.9%				23.3%		23.3%		24.8%		24.8%
Income tax benefit (expenses)	(38)		(1,094)		14		408		-		(38)		(1,094)		(12)		(344)		217.9%
Net income	347		9,889		43		1,230		703.8%		347		9,889		382		10,890		(9.2%)
	21.0%		21.0%		2.9%		2.9%				21.0%		21.0%		24.0%		24.0%
Other comprehensive income (loss)	124		3,556		(130)		(3,714)		-		124		3,556		134		3,831		(7.2%)
Total comprehensive income (loss)	471		13,445		(87)		(2,484)		-		471		13,445		516		14,721		(8.7%)
Net income attributable to:
Stockholders of the parent	366		10,428		77		2,207		372.5%		366		10,428		393		11,196		(6.9%)
Non-controlling interests	(19)		(539)		(34)		(977)		(44.8%)		(19)		(539)		(11)		(306)		76.1%
Comprehensive income (loss) attributable to:
Stockholders of the parent	490		13,984		(57)		(1,634)		-		490		13,984		527		15,027		(6.9%)
Non-controlling interests	(19)		(539)		(30)		(850)		(36.6%)		(19)		(539)		(11)		(306)		76.1%
Earnings per share-basic	0.030		0.85		0.007		0.19				0.030		0.85		0.032		0.92
Earnings per ADS (2)	0.149		4.25		0.033		0.95				0.149		4.25		0.161		4.60
Weighted average number of shares
outstanding (in millions)			12,206				11,783						12,206				12,206
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2021 exchange rate of NT $28.53 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 Three-Month Period Ended
	March 31, 2021						March 31, 2021
	US$		NT$		%		US$		NT$		%
Operating revenues	1,651		47,097		100.0%		1,651		47,097		100.0%
Operating costs	(1,213)		(34,603)		(73.5%)		(1,213)		(34,603)		(73.5%)
Gross profit	438		12,494		26.5%		438		12,494		26.5%
Operating expenses
- Sales and marketing expenses	(38)		(1,089)		(2.3%)		(38)		(1,089)		(2.3%)
- General and administrative expenses	(63)		(1,806)		(3.8%)		(63)		(1,806)		(3.8%)
- Research and development expenses	(107)		(3,049)		(6.5%)		(107)		(3,049)		(6.5%)
- Expected credit impairment gain	0		12		0.0%		0		12		0.0%
Subtotal	(208)		(5,932)		(12.6%)		(208)		(5,932)		(12.6%)
Net other operating income and expenses	37		1,060		2.3%		37		1,060		2.3%
Operating income	267		7,622		16.2%		267		7,622		16.2%
Net non-operating income and expenses	118		3,361		7.1%		118		3,361		7.1%
Income from continuing operations before income tax	385		10,983		23.3%		385		10,983		23.3%
Income tax expense	(38)		(1,094)		(2.3%)		(38)		(1,094)		(2.3%)
Net income	347		9,889		21.0%		347		9,889		21.0%
Other comprehensive income (loss)	124		3,556		7.6%		124		3,556		7.6%
Total comprehensive income (loss)	471		13,445		28.6%		471		13,445		28.6%
Net income attributable to:
Stockholders of the parent	366		10,428		22.1%		366		10,428		22.1%
Non-controlling interests	(19)		(539)		(1.1%)		(19)		(539)		(1.1%)
Comprehensive income (loss) attributable to:
Stockholders of the parent	490		13,984		29.7%		490		13,984		29.7%
Non-controlling interests	(19)		(539)		(1.1%)		(19)		(539)		(1.1%)
Earnings per share-basic	0.030		0.85				0.030		0.85
Earnings per ADS (2)	0.149		4.25				0.149		4.25
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 March 31, 2021 exchange rate of NT $28.53 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statement of Cash Flows
For The Three-Month Period Ended March 31, 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	385		10,983
Depreciation & Amortization	415		11,833
Share of profit of associates and joint ventures	(62)		(1,767)
Changes in working capital & others	(97)		(2,768)
Net cash provided by operating activities	641		18,281
Cash flows from investing activities :
Acquisition of property, plant and equipment	(258)		(7,352)
Acquisition of intangible assets	(22)		(619)
Others	30		851
Net cash used in investing activities	(250)		(7,120)
Cash flows from financing activities :
Decrease in short-term loans	(204)		(5,815)
Proceeds from long-term loans	440		12,560
Repayments of long-term loans	(153)		(4,377)
Others	7		212
Net cash provided by financing activities	90		2,580
Effect of exchange rate changes on cash and cash equivalents	(17)		(504)
Net increase in cash and cash equivalents	464		13,237
Cash and cash equivalents at beginning of period	3,296		94,048
Cash and cash equivalents at end of period	3,760		107,285
Note: New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2021 exchange rate of NT $28.53 per U.S. Dollar.

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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 March 31, 2021, the three-month period ending December 31, 2020, and the equivalent three-month period that ended March 31, 2020. For all 1Q21 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the March 31, 2021 exchange rate of NT$ 28.53 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.

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FAQ

What were UMC's Q1 2021 revenues?

United Microelectronics Corporation (UMC) reported consolidated revenues of NT$47.10 billion for Q1 2021.

How much did UMC invest in its capacity expansion?

UMC approved a total investment of NT$100 billion for expanding capacity at Fab 12A.

What is UMC's net income for Q1 2021?

UMC's net income attributable to stockholders for Q1 2021 was NT$10.43 billion.

What is the EPS for UMC in Q1 2021?

UMC reported earnings per share (EPS) of NT$0.85 for the first quarter of 2021.

What percentage of UMC's revenue came from North America in Q1 2021?

Revenue from North America comprised 23% of UMC's total sales in Q1 2021.