UMC Reports First Quarter 2022 Results

Rhea-AI Summary

United Microelectronics Corporation (UMC) reported impressive Q1 2022 results with a revenue of NT$63.42 billion, up 34.7% YoY. Gross margin stood at 43.4%, and net income attributable to shareholders reached NT$19.81 billion, translating to an EPS of NT$1.61. UMC's full-capacity utilization, despite slight wafer shipment declines, reflects strong demand. The company is expanding its Singapore facility to meet heightened demand for 22/28nm chips and is collaborating with DENSO for automotive power semiconductors. UMC's focus on specialty technologies is expected to bolster its market position.

Positive

• Revenue increased by 34.7% YoY to NT$63.42 billion.
• Gross margin improved to 43.4%.
• Net income attributable to shareholders rose by 24.2% QoQ to NT$19.81 billion.
• Full capacity utilization indicates strong demand.
• Expansion in Singapore aims to meet excess demand for 22/28nm chips.
• Collaboration with DENSO enhances position in automotive semiconductors.

Negative

• Wafer shipments declined slightly by 1.3% QoQ.

12i P3 Singapore expansion plan addresses long term structural demand in 22/28nm

First Quarter 2022 Overview¹:

• Revenue: NT$63.42 billion (US$2.22 billion)
• Gross margin: 43.4%; Operating margin: 35.2%
• Revenue from 22/28nm: 20%
• Capacity utilization rate: 100%+
• Net income attributable to shareholders of the parent: NT$19.81 billion (US$692 million)
• Earnings per share: NT$1.61; earnings per ADS: US$0.281

TAIPEI, Taiwan--(BUSINESS WIRE)-- 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 2022.

First quarter consolidated revenue was NT$63.42 billion, increasing 7.3% QoQ from NT$59.10 billion in 4Q21. Compared to a year ago, 1Q22 revenue grew 34.7% YoY from NT$47.10 billion in 1Q21. Consolidated gross margin for 1Q22 was 43.4%. Net income attributable to the shareholders of the parent was NT$19.81 billion, with earnings per ordinary share of NT$1.61.

Jason Wang, UMC co-president, said, “We started 2022 with solid first quarter, as strong wafer demand kept our fabs operating at full capacity. Although wafer shipments declined slightly, higher average blended pricing lifted our overall revenue. While we have observed general end-market’s tapering of cyclical demand associated with the COVID-19 pandemic, UMC’s business continued to be well supported by structural trends that are increasing silicon content in devices and driving new applications. Specialty technologies such as non-volatile memory, power management, RF-SOI, and OLED display drivers are necessary for applications across 5G, AIoT, and automotive mega-trends, and our strategy to focus on leading specialty technologies has been successful, which now contribute more than half of our wafer revenue. An increasing number of customers are recognizing the value of our customized specialty processes and forming long-term partnerships with UMC.”

Co-president Wang said, “Looking ahead, we expect the positive demand outlook will remain unchanged despite some market volatility caused by the pandemic and geopolitical issues. The expansion at our Fab 12A P5 is coming online in the current quarter, which will help us meet excess 28nm demand that we haven’t been able to fulfill. We are also actively adding capacity at our overseas bases to support our customers’ long-term growth. The announced new fab to be built at our Singapore site, which will address growing 22/28nm demand, has already secured multi-year supply agreements from 2024. We also announced a collaboration with DENSO on the production of power semiconductors at USJC’s 300mm fab in order to serve the growing demand in the automotive market. The collaboration demonstrates our strong commitment to supporting our customers amid constraints in the automotive value chain. As part of the industry mega-trends, the accelerating adoption of electric vehicles will serve as a growth catalyst for our automotive business. We are excited to be selected as the foundry partner for many global leading customers as we aim to expand our market share in the fast-growing automotive segment.”

Co-president Wang added, “Corporate sustainability has long been a key priority for UMC, and it is now also embedded in our new company vision and mission statements, which was unveiled earlier this year. We were pleased to be chosen from over 7,500 companies for the S&P Global 2022 Sustainability Yearbook released, for which we received the Gold Class Award. The company has ambitious goals when it comes to sustainability, and we will continue prioritizing resources so that we can deliver on our ESG promises.”

Summary of Operating Results

Operating Results
(Amount: NT$ million)	1Q22		4Q21		QoQ % change		1Q21		YoY % change
Operating Revenues	63,423		59,100		7.3		47,097		34.7
Gross Profit	27,504		23,103		19.0		12,494		120.1
Operating Expenses	(6,513	)	(6,821	)	(4.5	)	(5,932	)	9.8
Net Other Operating Income and Expenses	1,343		1,334		0.7		1,060		26.8
Operating Income	22,334		17,616		26.8		7,622		193.0
Net Non-Operating Income and Expenses	1,314		558		135.5		3,361		(60.9	)
Net Income Attributable to Shareholders of the Parent	19,808		15,949		24.2		10,428		89.9
EPS (NT$ per share)	1.61		1.30				0.85
(US$ per ADS)	0.281		0.227				0.148

First quarter operating revenues increased by 7.3% sequentially to NT$63.42 billion which was primarily lifted to higher wafer shipments. Revenue contribution from 40nm and below technologies represented 38% of wafer revenue. Gross profit grew 19.0% QoQ to NT$27.50 billion, or 43.4% of revenue. Operating expenses declined 4.5% to NT$6.51 billion. Net other operating income remained relatively flat at NT$1.34 billion. Net non-operating income was NT$1.31 billion. Net income attributable to shareholders of the parent amounted to NT$19.81 billion.

Earnings per ordinary share for the quarter was NT$1.61. Earnings per ADS was US$0.281. The basic weighted average number of outstanding shares in 1Q22 was 12,283,479,334, compared with 12,254,114,875 shares in 4Q21 and 12,206,292,756 shares in 1Q21. The diluted weighted average number of outstanding shares was 12,534,728,721 in 1Q22, compared with 12,489,949,678 shares in 4Q21 and 12,381,821,873 shares in 1Q21. The fully diluted shares counted on March 31, 2022 were approximately 12,534,729,000.

Detailed Financials Section

Operating revenues increased to NT$63.42 billion. COGS declined slightly to NT$35.92 billion, which included 3.1% sequential decrease in depreciation. Gross profit grew 19.0% QoQ to NT$27.50 billion, reflecting the uptick in ASP. Operating expenses decreased 4.5% QoQ to NT$6.51 billion, as R&D fell 11.2% QoQ to NT$3.03 billion, representing 4.8% of revenue. Net other operating income was NT$1.34 billion. In 1Q22, operating income grew 26.8% QoQ to NT$22.33 billion.

COGS & Expenses
(Amount: NT$ million)	1Q22			4Q21			QoQ % change			1Q21			YoY % change
Operating Revenues	63,423			59,100			7.3			47,097			34.7
COGS	(35,919	)		(35,997	)		(0.2	)		(34,603	)		3.8
Depreciation	(9,807	)		(10,122	)		(3.1	)		(10,412	)		(5.8	)
Other Mfg. Costs	(26,112	)		(25,875	)		0.9			(24,191	)		7.9
Gross Profit	27,504			23,103			19.0			12,494			120.1
Gross Margin (%)	43.4	%		39.1	%					26.5	%
Operating Expenses	(6,513	)		(6,821	)		(4.5	)		(5,932	)		9.8
G&A	(2,226	)		(2,164	)		2.9			(1,806	)		23.3
Sales & Marketing	(1,255	)		(1,240	)		1.2			(1,089	)		15.2
R&D	(3,033	)		(3,414	)		(11.2	)		(3,049	)		(0.5	)
Expected Credit Impairment Gain (Loss)	1			(3	)		-			12			(92.4	)
Net Other Operating Income & Expenses	1,343			1,334			0.7			1,060			26.8
Operating Income	22,334			17,616			26.8			7,622			193.0

Net non-operating income in 1Q22 was NT$1.31 billion, primarily reflecting NT$926 million in exchange gain and NT$576 million in net investment gain, offset by a NT$323 million in net interest expense.

Non-Operating Income and Expenses
(Amount: NT$ million)	1Q22			4Q21			1Q21
Non-Operating Income and Expenses	1,314			558			3,361
Net Interest Income and Expenses	(323	)		(343	)		(272	)
Net Investment Gain and Loss	576			2,689			3,530
Exchange Gain and Loss	926			312			93
Other Gain and Loss	135			(2,100	)		10

In 1Q22, cash inflow from operating activities was NT$30.12 billion. Cash inflow from investing activities amounted to NT$14.75 billion, which included NT$11.33 billion in capital expenditure, resulting in free cash flow of NT$18.79 billion. Cash outflow from financing reached NT$7.96 billion, primarily from a NT$7.25 billion in redemption of bonds and a NT$0.61 billion repayment in bank loans. Net cash inflow in 1Q22 totaled NT$39.55 billion. Over the next 12 months, the company expects to repay NT$10.77 billion in bank loans.

Cash Flow Summary
(Amount: NT$ million)	For the 3-Month Period Ended Mar. 31, 2022		For the 3-Month Period Ended Dec. 31, 2021
Cash Flow from Operating Activities	30,118		26,822
Net income before tax	23,648		18,174
Depreciation & Amortization	11,390		11,817
Share of loss (profit) of associates and joint ventures	1,858		(2,491	)
Income tax paid	(769	)	(222	)
Changes in working capital & others	(6,009	)	(456	)
Cash Flow from Investing Activities	14,752		(13,339	)
Acquisition of PP&E	(10,803	)	(14,707	)
Acquisition of intangible assets	(421	)	(100	)
Decrease in other financial assets	26,315		1,589
Others	(339	)	(121	)
Cash Flow from Financing Activities	(7,959	)	6,367
Bank loans	(612	)	(1,359	)
Bonds Issued	-		5,000
Redemption of bonds	(7,249	)	-
Increase in deposits-in	70		2,896
Others	(168	)	(170	)
Effect of Exchange Rate	2,637		(333	)
Net Cash Flow	39,548		19,517
Beginning balance	132,622		113,105
Ending balance	172,170		132,622

Cash and cash equivalents increased to NT$172.17 billion. Days of inventory increased by 2 days to 61 days.

Current Assets
(Amount: NT$ billion)	1Q22		4Q21		1Q21
Cash and Cash Equivalents	172.17		132.62		107.29
Notes & Accounts Receivable	38.05		35.19		29.24
Days Sales Outstanding	53		53		55
Inventories, net	25.40		23.01		22.23
Days of Inventory	61		59		59
Total Current Assets	249.68		233.27		179.08

Current liabilities decreased to NT$93.12 billion, which included a redemption of bonds lowering short-term credit/bonds to NT$22.58 billion. Long-term credit/bonds increased to NT$50.07 billion. Total liabilities decreased to NT$180.62 billion, leading to a debt to equity ratio of 60%.

Liabilities
(Amount: NT$ billion)	1Q22			4Q21			1Q21
Total Current Liabilities	93.12			105.45			78.53
Notes & Accounts Payable	9.06			8.36			8.26
Short-Term Credit / Bonds	22.58			39.26			37.28
Payables on Equipment	7.63			7.88			5.29
Other	53.85			49.95			27.70
Long-Term Credit / Bonds	50.07			39.83			27.70
Long-Term Investment Liabilities	8.59			8.25			20.66
Total Liabilities	180.62			183.22			144.59
Debt to Equity	60	%		65	%		58	%

Analysis of Revenue²

Revenue from Asia-Pacific decreased to 64% while business from North America increased to 22% of sales. Business from Europe was 8% while contribution from Japan remained at 6%.

Revenue Breakdown by Region
Region	1Q22		4Q21		3Q21		2Q21		1Q21
North America	22%		21%		22%		22%		23%
Asia Pacific	64%		66%		65%		63%		63%
Europe	8%		7%		7%		8%		8%
Japan	6%		6%		6%		7%		6%

Revenue contribution from 22/28nm amounted to 20% of the wafer revenue, while 40nm contribution stayed at 18% of sales.

Revenue Breakdown by Geometry
Geometry	1Q22			4Q21			3Q21			2Q21			1Q21
14nm and below	0	%		0	%		0	%		0	%		0	%
14nm<x<=28nm	20	%		20	%		19	%		20	%		20	%
28nm<x<=40nm	18	%		18	%		18	%		18	%		20	%
40nm<x<=65nm	19	%		19	%		19	%		19	%		18	%
65nm<x<=90nm	8	%		8	%		8	%		9	%		8	%
90nm<x<=0.13um	12	%		12	%		12	%		11	%		11	%
0.13um<x<=0.18um	13	%		13	%		13	%		13	%		13	%
0.18um<x<=0.35um	7	%		7	%		8	%		8	%		8	%
0.5um and above	3	%		3	%		3	%		2	%		2	%

Revenue from fabless customers accounted for 87% of revenue.

Revenue Breakdown by Customer Type
Customer Type		1Q22			4Q21			3Q21			2Q21			1Q21
Fabless		87	%		86	%		86	%		84	%		86	%
IDM		13	%		14	%		14	%		16	%		14	%

Revenue from the communication segment represented 45%, while business from computer applications stayed at 17%. Business from consumer applications remained at 26% as other segments accounted for 12% of revenue.

Revenue Breakdown by Application (1)
Application	1Q22			4Q21			3Q21			2Q21			1Q21
Computer	17	%		17	%		17	%		17	%		16	%
Communication	45	%		46	%		46	%		47	%		46	%
Consumer	26	%		26	%		27	%		26	%		27	%
Others	12	%		11	%		10	%		10	%		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) grew in 1Q22.

(To view blended ASP trend, please click here for 1Q22 ASP)

Shipment and Utilization Rate³

Wafer shipments declined 1.3% QoQ to 2,513K in the first quarter, while quarterly capacity grew to 2,420K. Overall utilization rate in 1Q22 exceeded 100%.

Wafer Shipments
	1Q22		4Q21		3Q21		2Q21		1Q21
Wafer Shipments (8” K equivalents)	2,513		2,546		2,503		2,440		2,372
Quarterly Capacity Utilization Rate
	1Q22		4Q21		3Q21		2Q21		1Q21
Utilization Rate	100%+		100%+		100%+		100%+		100	%
Total Capacity (8” K equivalents)	2,420		2,419		2,383		2,370		2,280

Capacity⁴

Overall capacity in the first quarter remained at 2,420K 8-inch equivalent wafers. Capacity will grow in the second quarter of 2022 to 2,528K 8-inch equivalent wafers, driven by the 28nm capacity expansion taking place at 12A P5.

Annual Capacity in thousands of wafers
FAB		Geometry (um)	2021		2020		2019		2018
WTK	6"	5 – 0.15	329		371		370		396
8A	8"	3 – 0.11	755		802		825		825
8C	8"	0.35 – 0.11	459		452		436		383
8D	8"	0.18 – 0.09	380		371		359		347
8E	8"	0.6 – 0.14	457		449		426		418
8F	8"	0.18 – 0.11	514		485		434		431
8S	8"	0.18 – 0.11	408		373		372		372
8N	8"	0.5 – 0.11	917		917		831		771
12A	12"	0.13 – 0.014	1,070		1,044		997		997
12i	12"	0.13 – 0.040	641		628		595		555
12X	12"	0.080 – 0.022	284		217		203		183
12M	12"	0.13 – 0.040	395		391		98		-
Total(1)			9,453		9,188		8,148		7,673
YoY Growth Rate			3	%	13	%	6	%	5	%

Quarterly Capacity in thousands of wafers
FAB	2Q22E		1Q22		4Q21		3Q21
WTK	84		82		81		80
8A	192		189		190		190
8C	115		113		115		115
8D	103		101		95		95
8E	118		116		115		115
8F	138		136		137		137
8S	111		109		102		102
8N	235		231		232		230
12A	301		267		271		271
12i	164		162		164		160
12X	78		77		78		74
12M	110		108		104		98
Total	2,528		2,420		2,419		2,383

⁽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

CAPEX spending in 1Q22 amounted to US$405 million. 2022 cash-based CAPEX budget will be US$3.6 billion.

Capital Expenditure by Year - in US$ billion
Year		2021		2020		2019		2018		2017
CAPEX	$	1.8	$	1.0	$	0.6	$	0.7	$	1.4

2022 CAPEX Plan

8"			12"			Total
10	%		90	%		US$3.6 billion

Second Quarter 2022 Outlook & Guidance

Quarter-over-Quarter Guidance:

• Wafer Shipments: To increase by 4-5%
• ASP in USD: To increase by 3-4%
• Gross Profit Margin: To be approximately 45%
• Capacity Utilization: 100%
• 2022 CAPEX: US$3.6 billion

Recent Developments / Announcements

Feb. 9, 2022	UMC awarded Gold Class in S&P Global Sustainability Yearbook
Feb. 24, 2022	UMC announces new 22nm wafer fab in Singapore
Feb. 24, 2022	UMC Board of Directors announces proposals for its annual shareholders meeting
Apr. 26, 2022	DENSO and USJC collaborate on automotive power semiconductors

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

Conference Call / Webcast Announcement

Wednesday, April 27, 2022

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 1Q22 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 20,000 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 2022; 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 2022 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, 2022
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
	March 31, 2022
	US$		NT$		%
Assets
Current assets
Cash and cash equivalents	6,016		172,170		35.7	%
Accounts receivable, net	1,329		38,048		7.9	%
Inventories, net	888		25,401		5.3	%
Other current assets	491		14,064		2.8	%
Total current assets	8,724		249,683		51.7	%
Non-current assets
Funds and investments	2,532		72,468		15.0	%
Property, plant and equipment	4,576		130,956		27.1	%
Right-of-use assets	250		7,157		1.5	%
Other non-current assets	791		22,645		4.7	%
Total non-current assets	8,149		233,226		48.3	%
Total assets	16,873		482,909		100.0	%
Liabilities
Current liabilities
Short-term loans	47		1,340		0.3	%
Payables	1,606		45,953		9.5	%
Current portion of long-term liabilities	742		21,238		4.4	%
Other current liabilities	859		24,590		5.1	%
Total current liabilities	3,254		93,121		19.3	%
Non-current liabilities
Bonds payable	806		23,079		4.8	%
Long-term loans	943		26,988		5.6	%
Lease liabilities, noncurrent	157		4,482		0.9	%
Other non-current liabilities	1,151		32,954		6.8	%
Total non-current liabilities	3,057		87,503		18.1	%
Total liabilities	6,311		180,624		37.4	%
Equity
Equity attributable to the parent company
Capital	4,361		124,821		25.9	%
Additional paid-in capital	1,659		47,468		9.8	%
Retained earnings and other components of equity	4,532		129,702		26.8	%
Total equity attributable to the parent company	10,552		301,991		62.5	%
Non-controlling interests	10		294		0.1	%
Total equity	10,562		302,285		62.6	%
Total liabilities and equity	16,873		482,909		100.0	%
Note：New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2022 exchange rate of NT $28.62 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, 2022						March 31, 2021						Chg.			March 31, 2022						December 31, 2021						Chg.
	US$			NT$			US$			NT$			%			US$			NT$			US$			NT$			%
Operating revenues	2,216			63,423			1,646			47,097			34.7	%		2,216			63,423			2,065			59,100			7.3	%
Operating costs	(1,255	)		(35,919	)		(1,209	)		(34,603	)		3.8	%		(1,255	)		(35,919	)		(1,258	)		(35,997	)		(0.2	%)
Gross profit	961			27,504			437			12,494			120.1	%		961			27,504			807			23,103			19.0	%
	43.4	%		43.4	%		26.5	%		26.5	%					43.4	%		43.4	%		39.1	%		39.1	%
Operating expenses
- Sales and marketing expenses	(44	)		(1,255	)		(38	)		(1,089	)		15.2	%		(44	)		(1,255	)		(43	)		(1,240	)		1.2	%
- General and administrative expenses	(78	)		(2,226	)		(63	)		(1,806	)		23.3	%		(78	)		(2,226	)		(76	)		(2,164	)		2.9	%
- Research and development expenses	(106	)		(3,033	)		(107	)		(3,049	)		(0.5	%)		(106	)		(3,033	)		(119	)		(3,414	)		(11.2	%)
- Expected credit impairment gain (loss)	0			1			0			12			(92.4	%)		0			1			(0	)		(3	)		-
Subtotal	(228	)		(6,513	)		(208	)		(5,932	)		9.8	%		(228	)		(6,513	)		(238	)		(6,821	)		(4.5	%)
Net other operating income and expenses	47			1,343			37			1,060			26.8	%		47			1,343			47			1,334			0.7	%
Operating income	780			22,334			266			7,622			193.0	%		780			22,334			616			17,616			26.8	%
	35.2	%		35.2	%		16.2	%		16.2	%					35.2	%		35.2	%		29.8	%		29.8	%
Net non-operating income and expenses	46			1,314			118			3,361			(60.9	%)		46			1,314			19			558			135.5	%
Income from continuing operations before income tax	826			23,648			384			10,983			115.3	%		826			23,648			635			18,174			30.1	%
	37.3	%		37.3	%		23.3	%		23.3	%					37.3	%		37.3	%		30.8	%		30.8	%
Income tax expense	(125	)		(3,582	)		(38	)		(1,094	)		227.4	%		(125	)		(3,582	)		(76	)		(2,169	)		65.1	%
Net income	701			20,066			346			9,889			102.9	%		701			20,066			559			16,005			25.4	%
	31.6	%		31.6	%		21.0	%		21.0	%					31.6	%		31.6	%		27.1	%		27.1	%
Other comprehensive income (loss)	50			1,422			124			3,556			(60.0	%)		50			1,422			101			2,880			(50.6	%)
Total comprehensive income (loss)	751			21,488			470			13,445			59.8	%		751			21,488			660			18,885			13.8	%
Net income attributable to:
Shareholders of the parent	692			19,808			364			10,428			89.9	%		692			19,808			557			15,949			24.2	%
Non-controlling interests	9			258			(18	)		(539	)		-			9			258			2			56			364.7	%
Comprehensive income (loss) attributable to:
Shareholders of the parent	742			21,229			489			13,984			51.8	%		742			21,229			658			18,830			12.7	%
Non-controlling interests	9			259			(19	)		(539	)		-			9			259			2			55			364.8	%
Earnings per share-basic	0.056			1.61			0.030			0.85						0.056			1.61			0.045			1.30
Earnings per ADS (2)	0.281			8.05			0.148			4.25						0.281			8.05			0.227			6.50
Weighted average number of shares
outstanding (in millions)				12,283						12,206									12,283						12,254
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2022 exchange rate of NT $28.62 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, 2022									March 31, 2022
	US$			NT$			%			US$			NT$			%
Operating revenues	2,216			63,423			100.0	%		2,216			63,423			100.0	%
Operating costs	(1,255	)		(35,919	)		(56.6	%)		(1,255	)		(35,919	)		(56.6	%)
Gross profit	961			27,504			43.4	%		961			27,504			43.4	%
Operating expenses
- Sales and marketing expenses	(44	)		(1,255	)		(2.0	%)		(44	)		(1,255	)		(2.0	%)
- General and administrative expenses	(78	)		(2,226	)		(3.5	%)		(78	)		(2,226	)		(3.5	%)
- Research and development expenses	(106	)		(3,033	)		(4.8	%)		(106	)		(3,033	)		(4.8	%)
- Expected credit impairment gain	0			1			0.0	%		0			1			0.0	%
Subtotal	(228	)		(6,513	)		(10.3	%)		(228	)		(6,513	)		(10.3	%)
Net other operating income and expenses	47			1,343			2.1	%		47			1,343			2.1	%
Operating income	780			22,334			35.2	%		780			22,334			35.2	%
Net non-operating income and expenses	46			1,314			2.1	%		46			1,314			2.1	%
Income from continuing operations    before income tax	826			23,648			37.3	%		826			23,648			37.3	%
Income tax expense	(125	)		(3,582	)		(5.7	%)		(125	)		(3,582	)		(5.7	%)
Net income	701			20,066			31.6	%		701			20,066			31.6	%
Other comprehensive income (loss)	50			1,422			2.3	%		50			1,422			2.3	%
Total comprehensive income (loss)	751			21,488			33.9	%		751			21,488			33.9	%
Net income attributable to:
Shareholders of the parent	692			19,808			31.2	%		692			19,808			31.2	%
Non-controlling interests	9			258			0.4	%		9			258			0.4	%
Comprehensive income (loss) attributable to:
Shareholders of the parent	742			21,229			33.5	%		742			21,229			33.5	%
Non-controlling interests	9			259			0.4	%		9			259			0.4	%
Earnings per share-basic	0.056			1.61						0.056			1.61
Earnings per ADS (2)	0.281			8.05						0.281			8.05
Weighted average number of shares outstanding (in millions)				12,283									12,283
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2022 exchange rate of NT $28.62 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, 2022
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
	US$			NT$
Cash flows from operating activities :
Net income before tax	826			23,648
Depreciation & Amortization	398			11,390
Share of loss of associates and joint ventures	65			1,858
Income tax paid	(27	)		(769	)
Changes in working capital & others	(210	)		(6,009	)
Net cash provided by operating activities	1,052			30,118
Cash flows from investing activities :
Acquisition of property, plant and equipment	(377	)		(10,803	)
Acquisition of intangible assets	(15	)		(421	)
Decrease in other financial assets	919			26,315
Others	(12	)		(339	)
Net cash provided by investing activities	515			14,752
Cash flows from financing activities :
Decrease in short-term loans	(22	)		(640	)
Redemption of bonds	(253	)		(7,249	)
Proceeds from long-term loans	8			231
Repayments of long-term loans	(7	)		(203	)
Others	(4	)		(98	)
Net cash used in financing activities	(278	)		(7,959	)
Effect of exchange rate changes on cash and cash equivalents	93			2,637
Net increase in cash and cash equivalents	1,382			39,548
Cash and cash equivalents at beginning of period	4,634			132,622
Cash and cash equivalents at end of period	6,016			172,170
Note: New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2022 exchange rate of NT $28.62 per U.S. Dollar.

¹ Unless 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, 2022, the three-month period ending December 31, 2021, and the equivalent three-month period that ended March 31, 2021. For all 1Q22 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the March 31, 2022 exchange rate of NT$ 28.62 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220427005451/en/

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

FAQ

What were UMC's revenue figures for Q1 2022?

UMC reported revenue of NT$63.42 billion for Q1 2022, marking a 34.7% increase year-over-year.

What is UMC's gross margin for Q1 2022?

The gross margin for UMC in Q1 2022 was 43.4%.

How much net income did UMC report in Q1 2022?

UMC reported a net income attributable to shareholders of NT$19.81 billion in Q1 2022.

What is the capacity utilization rate for UMC in Q1 2022?

UMC achieved a capacity utilization rate of over 100% in Q1 2022.

What expansion plans does UMC have in Singapore?

UMC is set to expand its Singapore site to address the growing demand for 22/28nm semiconductors.

What collaboration did UMC announce for automotive semiconductors?

UMC announced a collaboration with DENSO for the production of power semiconductors.