UMC Reports First Quarter 2024 Results

Rhea-AI Summary

United Microelectronics (UMC) reported its first quarter 2024 results with revenue of NT$54.63 billion and net income of NT$10.46 billion. Gross margin was 30.9%, with wafer shipments up 4.5% QoQ. UMC aims for stable dividends and plans a shareholder cash distribution of approximately NT$3.00 per share.

Insights

Financial Analyst

United Microelectronics Corporation's latest financial report suggests a mixed performance for the first quarter of 2024. A 4.5% increase in wafer shipments indicates a rising demand, particularly in the computer segment, which is a positive signal for the company's production scale. However, a decline in the gross margin to 30.9% and a 20.8% drop in the net income attributed to shareholders compared to the previous quarter reflect some operational challenges.

The approval of a higher payout ratio for the cash dividend potentially makes UMC shares more attractive to income-seeking investors. The company's future capex plan of US$3.3 billion aligns with its strategic growth areas, showcasing a commitment to enhancing capabilities in the high-growth sectors of 5G and AI technologies. The current financial health and future investments of UMC need to be further analyzed against the backdrop of broader market conditions and the semiconductor industry's cyclical nature.

Market Research Analyst

UMC's focus on specialty businesses, which now accounts for 57% of total revenues, specifically in power management ICs and RFSOI chips, indicates a strategic shift to diversify from mainstream wafer production. This pivot towards specialty segments is important in the face of intense competition and price pressures in the semiconductor industry. The company's capacity utilization rate at 65% might raise some concerns about underutilization of resources, which could affect profitability if not addressed in subsequent quarters.

The shareholder cash distribution and the double "A" rating in CDP's Climate Change and Water Security assessment position UMC as a socially responsible investment. These factors could positively influence investor sentiment by highlighting UMC's commitment to sustainability and shareholder returns.

Tech Industry Analyst

UMC's advancements in key technology areas such as embedded high voltage and non-volatile memory could position the company favorably in the rapidly evolving tech landscape. The emphasis on R&D for 3D IC solutions hints at readiness to meet future demand for complex chip designs, a trend driven by the growing needs of AI servers and 5G-related applications.

The combination of a robust R&D strategy and the company's strategic investment in capacity expansion, particularly at the 12A P6 facility, aligns with industry trends towards more advanced fabrication requirements. However, potential investors should watch for how these technological investments translate into market share gains and financial performance in a sector known for rapid obsolescence and intense competition.

1Q24 results in line with guidance with wafer shipments up 4.5% QoQ

First Quarter 2024 Overview¹:

• Revenue: NT$54.63 billion (US$1.71 billion)
• Gross margin: 30.9%; Operating margin: 21.4%
• Revenue from 22/28nm: 33%
• Capacity utilization rate: 65%
• Net income attributable to shareholders of the parent: NT$10.46 billion (US$327 million)
• Earnings per share: NT$0.84; earnings per ADS: US$0.131

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 2024.

First quarter consolidated revenue was NT$54.63 billion, declining 0.6% QoQ from NT$54.96 billion in 4Q23. Compared to a year ago, 1Q24 revenue increased 0.8% YoY from NT$54.21 billion in 1Q23. Consolidated gross margin for 1Q24 was 30.9%. Net income attributable to the shareholders of the parent was NT$10.46 billion, with earnings per ordinary share of NT$0.84.

Jason Wang, co-president of UMC, said, “In the first quarter, our wafer shipments increased 4.5% QoQ as we saw a pick up in the computer segment. Despite a slight drop in utilization rate to 65%, we were able to maintain relatively healthy margins due to continuous cost control and operational efficiency efforts. Contribution from our specialty business increased to 57% of total revenue, driven by demand for power management ICs, RFSOI chips, and silicon interposers for AI servers. During the quarter, our teams continued to make good progress on key pipeline projects, both customized solutions for customers as well as new technology platforms to serve high-growth segments within the 5G, AIoT, and automotive markets. This includes embedded high voltage, embedded non-volatile memory, RFSOI, and 3D IC solutions. In line with our policy to provide stable and predictable dividends to our shareholders, UMC’s Board of Directors recently approved shareholder cash distribution of approximately NT$3.00 per share, which will be a higher payout ratio than the previous year’s. This is subject to approval by shareholders at the Annual General Meeting in May.”

Co-president Wang commented, “Looking ahead to the second quarter, we expect to see an increase in wafer shipments as the inventory situation in the computing, consumer, and communication segments improves to a healthier level. As for the automotive and industrial segments, demand remains muted as the pace of inventory digestion has been slower than anticipated. While we still expect some lingering impact from macro uncertainties and cost headwinds in the near term, we will continue to invest in technology, capacity, and people to ensure UMC is ready to capture the next phase of growth driven by 5G and AI innovations.”

Co-president Wang added, “UMC is proud to be the only semiconductor company globally to receive double “A” rating in CDP’s 2023 Climate Change and Water Security assessment, the foremost standard amongst investors and other stakeholders for measuring transparency and action on environmental issues, for two consecutive years. This is an incredible achievement and I commend all our teams for their commitment to minimizing the environment impact of our business and helping UMC become the sustainability leader in our industry.”

Summary of Operating Results

Operating Results
(Amount: NT$ million)	1Q24			4Q23			QoQ % change			1Q23			YoY % change
Operating Revenues	54,632			54,958			(0.6	)		54,209			0.8
Gross Profit	16,899			17,806			(5.1	)		19,224			(12.1	)
Operating Expenses	(5,747	)		(6,635	)		(13.4	)		(5,780	)		(0.6	)
Net Other Operating Income and Expenses	513			1,252			(59.0	)		1,037			(50.5	)
Operating Income	11,665			12,423			(6.1	)		14,481			(19.4	)
Net Non-Operating Income and Expenses	1,056			2,227			(52.6	)		4,647			(77.3	)
Net Income Attributable to Shareholders of the Parent	10,456			13,195			(20.8	)		16,183			(35.4	)
EPS (NT$ per share)	0.84			1.06						1.31
(US$ per ADS)	0.131			0.166						0.205

First quarter operating revenues declined 0.6% sequentially to NT$54.63 billion. Revenue contribution from 40nm and below technologies represented 47% of wafer revenue. Gross profit declined 5.1% QoQ to NT$16.90 billion, or 30.9% of revenue. Operating expenses decreased 13.4% to NT$5.75 billion. Net other operating income decreased to NT$0.51 billion. Net non-operating income totaled NT$1.06 billion. Net income attributable to shareholders of the parent amounted to NT$10.46 billion.

Earnings per ordinary share for the quarter was NT$0.84. Earnings per ADS was US$0.131. The basic weighted average number of shares outstanding in 1Q24 was 12,414,087,724, compared with 12,414,087,724 shares in 4Q23 and 12,348,880,384 shares in 1Q23. The diluted weighted average number of shares outstanding was 12,577,525,057 in 1Q24, compared with 12,589,138,701 shares in 4Q23 and 12,597,236,266 shares in 1Q23. The fully diluted shares counted on March 31, 2024 were approximately 12,577,525,000.

Detailed Financials Section

Operating revenues decreased to NT$54.63 billion. COGS grew 1.6% to NT$37.73 billion, which included 3.7% increase in depreciation. Gross profit fell 5.1% QoQ to NT$16.90 billion. Operating expenses declined to NT$5.75 billion, as Sales & Marketing fell 16.9% to NT$0.68 billion, R&D decreased 13.6% to NT$3.41 billion or 6.2% of revenue, and G&A also declined 11.8% to NT$1.70 billion. Net other operating income was NT$0.51 billion. In 1Q24, operating income declined 6.1% QoQ to NT$11.67 billion.

COGS & Expenses
(Amount: NT$ million)	1Q24			4Q23			QoQ % change			1Q23			YoY % change
Operating Revenues	54,632			54,958			(0.6	)		54,209			0.8
COGS	(37,733	)		(37,152	)		1.6			(34,985	)		7.9
Depreciation	(9,335	)		(9,006	)		3.7			(8,439	)		10.6
Other Mfg. Costs	(28,398	)		(28,146	)		0.9			(26,546	)		7.0
Gross Profit	16,899			17,806			(5.1	)		19,224			(12.1	)
Gross Margin (%)	30.9	%		32.4	%					35.5	%
Operating Expenses	(5,747	)		(6,635	)		(13.4	)		(5,780	)		(0.6	)
Sales & Marketing	(684	)		(823	)		(16.9	)		(950	)		(28.0	)
G&A	(1,702	)		(1,930	)		(11.8	)		(2,102	)		(19.0	)
R&D	(3,407	)		(3,945	)		(13.6	)		(2,767	)		23.2
Expected credit impairment gain	46			63			(27.9	)		39			18.0
Net Other Operating Income & Expenses	513			1,252			(59.0	)		1,037			(50.5	)
Operating Income	11,665			12,423			(6.1	)		14,481			(19.4	)

Net non-operating income in 1Q24 was NT$1.06 billion, mainly reflecting the NT$0.70 billion in exchange gain and the NT$0.68 billion in net interest income partially offset by the NT$0.32 billion in net investment loss.

Non-Operating Income and Expenses
(Amount: NT$ million)	1Q24			4Q23			1Q23
Non-Operating Income and Expenses	1,056			2,227			4,647
Net Interest Income and Expenses	676			880			908
Net Investment Gain and Loss	(324	)		1,750			3,987
Exchange Gain and Loss	697			(405	)		(239	)
Other Gain and Loss	7			2			(9	)

In 1Q24, cash inflow from operating activities was NT$20.82 billion. Cash outflow from investing activities totaled NT$29.92 billion, which included NT$29.00 billion in capital expenditure, resulting in free cash outflow of NT$8.18 billion. Cash outflow from financing was NT$6.44 billion, primarily from NT$3.89 billion in bank loans and NT$2.10 billion in redemption of bonds. Net cash outflow in 1Q24 amounted to NT$13.12 billion. Over the next 12 months, the company expects to repay NT$2.74 billion in bank loans.

Cash Flow Summary
(Amount: NT$ million)	For the 3-Month Period Ended Mar. 31, 2024			For the 3-Month Period Ended Dec. 31, 2023
Cash Flow from Operating Activities	20,820			26,217
Net income before tax	12,721			14,650
Depreciation & Amortization	10,886			10,721
Share of profit of associates and joint ventures	(101	)		(1,918	)
Income tax paid	(253	)		(15	)
Changes in working capital & others	(2,433	)		2,779
Cash Flow from Investing Activities	(29,915	)		(26,813	)
Decrease (increase) in financial assets measured at amortized cost	739			(6,134	)
Acquisition of PP&E	(28,498	)		(20,334	)
Acquisition of intangible assets	(846	)		(774	)
Others	(1,310	)		429
Cash Flow from Financing Activities	(6,439	)		(3,892	)
Bank loans	(3,888	)		(4,435	)
Redemption of bonds	(2,100	)		-
Increase (decrease) in deposits-in	(282	)		720
Others	(169	)		(177	)
Effect of Exchange Rate	2,411			(3,600	)
Net Cash Flow	(13,123	)		(8,088	)
Beginning balance	132,554			140,642
Ending balance	119,431			132,554

`

Cash and cash equivalents decreased to NT$119.43 billion. Days of inventory declined 4 days to 85 days.

Current Assets
(Amount: NT$ billion)	1Q24		4Q23		1Q23
Cash and Cash Equivalents	119.43		132.55		171.83
Accounts Receivable	30.68		29.59		27.07
Days Sales Outstanding	50		50		54
Inventories, net	34.59		35.71		32.68
Days of Inventory	85		89		83
Total Current Assets	205.16		216.80		241.97

Current liabilities decreased to NT$88.40 billion. Long-term credit/bonds decreased to NT$43.45 billion. Total liabilities decreased to NT$188.85 billion, leading to a debt to equity ratio of 50%.

Liabilities
(Amount: NT$ billion)	1Q24		4Q23		1Q23
Total Current Liabilities	88.40		99.02		105.89
Accounts Payable	7.46		7.53		9.21
Short-Term Credit / Bonds	25.60		29.54		9.77
Payables on Equipment	13.97		19.20		18.44
Other	41.37		42.75		68.47
Long-Term Credit / Bonds	43.45		45.24		37.30
Long-Term Investment Liabilities	-		-		4.26
Total Liabilities	188.85		199.61		194.08
Debt to Equity	50%		56%		55%

Analysis of Revenue²

Revenue from Asia-Pacific increased to 63% while business from North America grew to 25% of sales. Business from Europe declined to 8% while contribution from Japan remained at 4%.

Revenue Breakdown by Region
Region	1Q24		4Q23		3Q23		2Q23		1Q23
North America	25	%	23	%	27	%	27	%	31	%
Asia Pacific	63	%	62	%	58	%	56	%	50	%
Europe	8	%	11	%	12	%	12	%	11	%
Japan	4	%	4	%	3	%	5	%	8	%

Revenue contribution from 22/28nm declined to 33% of the wafer revenue, while 40nm contribution remained unchanged at 14% of sales.

Revenue Breakdown by Geometry
Geometry	1Q24		4Q23		3Q23		2Q23		1Q23
14nm and below	0	%	0	%	0	%	0	%	0	%
14nm<x<=28nm	33	%	36	%	32	%	29	%	26	%
28nm<x<=40nm	14	%	14	%	13	%	12	%	15	%
40nm<x<=65nm	18	%	16	%	19	%	23	%	19	%
65nm<x<=90nm	10	%	9	%	8	%	10	%	10	%
90nm<x<=0.13um	9	%	9	%	12	%	10	%	12	%
0.13um<x<=0.18um	11	%	9	%	9	%	9	%	10	%
0.18um<x<=0.35um	4	%	5	%	5	%	5	%	6	%
0.5um and above	1	%	2	%	2	%	2	%	2	%

Revenue from fabless customers accounted for 82% of revenue.

Revenue Breakdown by Customer Type
Customer Type	1Q24		4Q23		3Q23		2Q23		1Q23
Fabless	82	%	78	%	79	%	79	%	77	%
IDM	18	%	22	%	21	%	21	%	23	%

Revenue from the communication segment accounted for 48%, while business from computer applications remained at 13%. Business from consumer applications was 23% as other segments declined to 16% of revenue.

Revenue Breakdown by Application (1)
Application	1Q24		4Q23		3Q23		2Q23		1Q23
Computer	13	%	13	%	13	%	9	%	9	%
Communication	48	%	47	%	46	%	44	%	44	%
Consumer	23	%	23	%	23	%	26	%	24	%
Others	16	%	17	%	18	%	21	%	23	%

(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) declined in 1Q24.

(To view blended ASP trend, please click here for 1Q24 ASP)

Shipment and Utilization Rate³

Wafer shipments increased 4.5% QoQ to 810K in the first quarter, while quarterly capacity was 1,212K. Overall utilization rate in 1Q24 declined to 65%.

Wafer Shipments
	1Q24	4Q23	3Q23	2Q23	1Q23
Wafer Shipments (12” K equivalents)	810	775	795	814	811
Quarterly Capacity Utilization Rate
	1Q24	4Q23	3Q23	2Q23	1Q23
Utilization Rate	65%	66%	67%	71%	70%
Total Capacity (12” K equivalents)	1,212	1,204	1,182	1,167	1,121

Capacity⁴

Total capacity in the first quarter increased to 1,212K 12-inch equivalent wafers. Capacity will grow in the second quarter of 2024 to 1,257K 12-inch equivalent wafers, primarily reflecting the continuous capacity expansion at 12A P6 facility.

Annual Capacity in thousands of wafers								Quarterly Capacity in thousands of wafers
FAB		Geometry (um)	2023	2022	2021	2020		FAB		2Q24E	1Q24	4Q23	3Q23
WTK	6"	5 – 0.15	328	335	329	371		WTK	6"	83	82	83	83
8A	8"	3 – 0.11	811	765	755	802		8A	8"	207	206	207	207
8C	8"	0.35 – 0.11	473	459	459	452		8C	8"	119	119	119	120
8D	8"	0.18 – 0.09	440	410	380	371		8D	8"	118	118	118	111
8E	8"	0.6 – 0.14	490	469	457	449		8E	8"	131	130	131	122
8F	8"	0.18 – 0.11	570	550	514	485		8F	8"	145	144	145	145
8S	8"	0.18 – 0.11	447	443	408	373		8S	8"	114	113	114	112
8N	8"	0.5 – 0.11	996	952	917	917		8N	8"	254	252	254	250
12A	12"	0.13 – 0.014	1,305	1,170	1,070	1,044		12A	12"	386	358	346	333
12i	12"	0.13 – 0.040	655	655	641	628		12i	12"	172	164	164	164
12X	12"	0.080 – 0.022	317	314	284	217		12X	12"	80	79	80	80
12M	12"	0.13 – 0.040	438	436	395	391		12M	12"	115	110	110	110
Total(1)			4,674	4,458	4,201	4,083		Total		1,257	1,212	1,204	1,182
YoY Growth Rate			5%	6%	3%	13%

(1) One 6-inch wafer is converted into 0.25 (62/122) 12-inch equivalent wafer; one 8-inch wafer is converted into 0.44 (82/122) 12-inch equivalent wafers. Total capacity figures are expressed in 12-inch equivalent wafers.

CAPEX

CAPEX spending in 1Q24 totaled US$924 million. 2024 cash-based CAPEX budget will be US$3.3 billion.

Capital Expenditure by Year - in US$ billion

Year		2023		2022		2021		2020		2019
CAPEX		$ 3.0		$ 2.7		$ 1.8		$ 1.0		$ 0.6

2024 CAPEX Plan

8"		12"		Total
5%		95%		US$3.3 billion

Second Quarter 2024 Outlook & Guidance

Quarter-over-Quarter Guidance:

• Wafer Shipments: Will increase by low single digit %
• ASP in USD: Will remain firm
• Gross Profit Margin: Will be approximately 30%
• Capacity Utilization: mid-60% range
• 2024 CAPEX: US$3.3 billion

Recent Developments / Announcements

Feb. 7, 2024	UMC Earns top rating in CDP’s Climate Change and Water Security for Two Consecutive Years
Feb. 27, 2024	UMC Board of Directors Announces Proposals for its Annual Shareholders Meeting

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

Conference Call / Webcast Announcement

Wednesday, April 24, 2024

Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM (London)

Dial-in numbers and Access Codes:
Taiwan Number:	02 3396 1191
Taiwan Toll Free:	0080 119 6666
US Toll Free:	+1 866 212 5567
Other Areas:	+886 2 3396 1191
Access Code:	1023024#

A live webcast and replay of the 1Q24 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 company. The company provides high-quality IC fabrication services, focusing on logic and various specialty technologies to serve all major sectors of the electronics industry. UMC’s comprehensive IC processing technologies and manufacturing solutions include Logic/Mixed-Signal, embedded High-Voltage, embedded Non-Volatile-Memory, RFSOI, BCD etc. Most of UMC’s 12-in and 8-in fabs with its core R&D are in Taiwan, with additional ones throughout Asia. UMC has a total of 12 fabs in production with a combined capacity of more than 400,000 wafers per month (12-in equivalent), and all of them are certified with IATF 16949 automotive quality standards. UMC is headquartered in Hsinchu, Taiwan, plus local offices in the United States, Europe, China, Japan, Korea, and Singapore, with a worldwide total of 20,000 employees. 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 2024; 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 “Second Quarter 2024 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, 2024
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
	March 31, 2024
	US$		NT$		%
Assets
Current assets
Cash and cash equivalents	3,733		119,431		21.1	%
Accounts receivable, net	959		30,677		5.4	%
Inventories, net	1,081		34,593		6.1	%
Other current assets	641		20,462		3.6	%
Total current assets	6,414		205,163		36.2	%
Non-current assets
Funds and investments	2,424		77,542		13.7	%
Property, plant and equipment	7,944		254,136		44.8	%
Right-of-use assets	239		7,659		1.4	%
Other non-current assets	706		22,573		3.9	%
Total non-current assets	11,313		361,910		63.8	%
Total assets	17,727		567,073		100.0	%
Liabilities
Current liabilities
Short-term loans	348		11,130		2.0	%
Payables	1,645		52,618		9.3	%
Current portion of long-term liabilities	452		14,466		2.6	%
Other current liabilities	318		10,189		1.7	%
Total current liabilities	2,763		88,403		15.6	%
Non-current liabilities
Bonds payable	768		24,581		4.3	%
Long-term loans	590		18,869		3.3	%
Lease liabilities, noncurrent	169		5,416		1.0	%
Other non-current liabilities	1,613		51,576		9.1	%
Total non-current liabilities	3,140		100,442		17.7	%
Total liabilities	5,903		188,845		33.3	%
Equity
Equity attributable to the parent company
Capital	3,917		125,290		22.1	%
Additional paid-in capital	448		14,322		2.5	%
Retained earnings and other components of equity	7,449		238,300		42.0	%
Total equity attributable to the parent company	11,814		377,912		66.6	%
Non-controlling interests	10		316		0.1	%
Total equity	11,824		378,228		66.7	%
Total liabilities and equity	17,727		567,073		100.0	%
Note：New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2024 exchange rate of NT $31.99 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, 2024						March 31, 2023						Chg.			March 31, 2024						December 31, 2023						Chg.
	US$			NT$			US$			NT$			%			US$			NT$			US$			NT$			%
Operating revenues	1,708			54,632			1,695			54,209			0.8	%		1,708			54,632			1,718			54,958			(0.6	%)
Operating costs	(1,180	)		(37,733	)		(1,094	)		(34,985	)		7.9	%		(1,180	)		(37,733	)		(1,161	)		(37,152	)		1.6	%
Gross profit	528			16,899			601			19,224			(12.1	%)		528			16,899			557			17,806			(5.1	%)
	30.9	%		30.9	%		35.5	%		35.5	%					30.9	%		30.9	%		32.4	%		32.4	%
Operating expenses
- Sales and marketing expenses	(21	)		(684	)		(30	)		(950	)		(28.0	%)		(21	)		(684	)		(26	)		(823	)		(16.9	%)
- General and administrative expenses	(52	)		(1,702	)		(66	)		(2,102	)		(19.0	%)		(52	)		(1,702	)		(61	)		(1,930	)		(11.8	%)
- Research and development expenses	(107	)		(3,407	)		(86	)		(2,767	)		23.2	%		(107	)		(3,407	)		(123	)		(3,945	)		(13.6	%)
- Expected credit impairment gain	1			46			1			39			18.0	%		1			46			2			63			(27.9	%)
Subtotal	(179	)		(5,747	)		(181	)		(5,780	)		(0.6	%)		(179	)		(5,747	)		(208	)		(6,635	)		(13.4	%)
Net other operating income and expenses	16			513			33			1,037			(50.5	%)		16			513			39			1,252			(59.0	%)
Operating income	365			11,665			453			14,481			(19.4	%)		365			11,665			388			12,423			(6.1	%)
	21.4	%		21.4	%		26.7	%		26.7	%					21.4	%		21.4	%		22.6	%		22.6	%
Net non-operating income and expenses	33			1,056			145			4,647			(77.3	%)		33			1,056			70			2,227			(52.6	%)
Income from continuing operations before income tax	398			12,721			598			19,128			(33.5	%)		398			12,721			458			14,650			(13.2	%)
	23.3	%		23.3	%		35.3	%		35.3	%					23.3	%		23.3	%		26.7	%		26.7	%
Income tax expense	(72	)		(2,291	)		(86	)		(2,743	)		(16.5	%)		(72	)		(2,291	)		(46	)		(1,457	)		57.3	%
Net income	326			10,430			512			16,385			(36.3	%)		326			10,430			412			13,193			(20.9	%)
	19.1	%		19.1	%		30.2	%		30.2	%					19.1	%		19.1	%		24.0	%		24.0	%
Other comprehensive income (loss)	249			7,954			104			3,325			139.2	%		249			7,954			(119	)		(3,808	)		-
Total comprehensive income (loss)	575			18,384			616			19,710			(6.7	%)		575			18,384			293			9,385			95.9	%
Net income attributable to:
Shareholders of the parent	327			10,456			506			16,183			(35.4	%)		327			10,456			412			13,195			(20.8	%)
Non-controlling interests	(1	)		(26	)		6			202			-			(1	)		(26	)		(0	)		(2	)		1,232.7	%
Comprehensive income (loss) attributable to:
Shareholders of the parent	575			18,410			610			19,508			(5.6	%)		575			18,410			293			9,387			96.1	%
Non-controlling interests	(0	)		(26	)		6			202			-			(0	)		(26	)		(0	)		(2	)		1,202.7	%
Earnings per share-basic	0.026			0.84			0.041			1.31						0.026			0.84			0.033			1.06
Earnings per ADS (2)	0.131			4.20			0.205			6.55						0.131			4.20			0.166			5.30
Weighted average number of shares outstanding (in millions)
				12,414						12,349									12,414						12,414
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2024 exchange rate of NT $31.99 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, 2024									March 31, 2024
	US$			NT$			%			US$			NT$			%
Operating revenues	1,708			54,632			100.0	%		1,708			54,632			100.0	%
Operating costs	(1,180	)		(37,733	)		(69.1	%)		(1,180	)		(37,733	)		(69.1	%)
Gross profit	528			16,899			30.9	%		528			16,899			30.9	%
Operating expenses
- Sales and marketing expenses	(21	)		(684	)		(1.3	%)		(21	)		(684	)		(1.3	%)
- General and administrative expenses	(52	)		(1,702	)		(3.1	%)		(52	)		(1,702	)		(3.1	%)
- Research and development expenses	(107	)		(3,407	)		(6.2	%)		(107	)		(3,407	)		(6.2	%)
- Expected credit impairment gain	1			46			0.1	%		1			46			0.1	%
Subtotal	(179	)		(5,747	)		(10.5	%)		(179	)		(5,747	)		(10.5	%)
Net other operating income and expenses	16			513			1.0	%		16			513			1.0	%
Operating income	365			11,665			21.4	%		365			11,665			21.4	%
Net non-operating income and expenses	33			1,056			1.9	%		33			1,056			1.9	%
Income from continuing operations before income tax	398			12,721			23.3	%		398			12,721			23.3	%
Income tax expense	(72	)		(2,291	)		(4.2	%)		(72	)		(2,291	)		(4.2	%)
Net income	326			10,430			19.1	%		326			10,430			19.1	%
Other comprehensive income (loss)	249			7,954			14.6	%		249			7,954			14.6	%
Total comprehensive income (loss)	575			18,384			33.7	%		575			18,384			33.7	%
Net income attributable to:
Shareholders of the parent	327			10,456			19.1	%		327			10,456			19.1	%
Non-controlling interests	(1	)		(26	)		(0.0	%)		(1	)		(26	)		(0.0	%)
Comprehensive income (loss) attributable to:
Shareholders of the parent	575			18,410			33.7	%		575			18,410			33.7	%
Non-controlling interests	(0	)		(26	)		(0.0	%)		(0	)		(26	)		(0.0	%)
Earnings per share-basic	0.026			0.84						0.026			0.84
Earnings per ADS (2)	0.131			4.20						0.131			4.20
Weighted average number of shares outstanding (in millions)				12,414									12,414
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2024 exchange rate of NT $31.99 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, 2024
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
	US$			NT$
Cash flows from operating activities :
Net income before tax	398			12,721
Depreciation & Amortization	340			10,886
Share of profit of associates and joint ventures	(3	)		(101	)
Income tax paid	(8	)		(253	)
Changes in working capital & others	(76	)		(2,433	)
Net cash provided by operating activities	651			20,820
Cash flows from investing activities :
Acquisition of property, plant and equipment	(891	)		(28,498	)
Acquisition of intangible assets	(26	)		(846	)
Others	(18	)		(571	)
Net cash used in investing activities	(935	)		(29,915	)
Cash flows from financing activities :
Decrease in short-term loans	(75	)		(2,400	)
Redemption of bonds	(66	)		(2,100	)
Proceeds from long-term loans	177			5,663
Repayments of long-term loans	(224	)		(7,151	)
Others	(13	)		(451	)
Net cash used in financing activities	(201	)		(6,439	)
Effect of exchange rate changes on cash and cash equivalents	74			2,411
Net decrease in cash and cash equivalents	(411	)		(13,123	)
Cash and cash equivalents at beginning of period	4,144			132,554
Cash and cash equivalents at end of period	3,733			119,431
Note: New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2024 exchange rate of NT $31.99 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 March 31, 2024, the three-month period ending December 31, 2023, and the equivalent three-month period that ended March 31, 2023. For all 1Q24 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the March 31, 2024 exchange rate of NT$ 31.99 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/20240424961964/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 and net income for the first quarter of 2024?

UMC reported revenue of NT$54.63 billion and net income of NT$10.46 billion for the first quarter of 2024.

What was UMC's gross margin for the first quarter of 2024?

UMC's gross margin for the first quarter of 2024 was 30.9%.

By how much did UMC's wafer shipments increase in the first quarter of 2024?

UMC's wafer shipments increased by 4.5% QoQ in the first quarter of 2024.

What was the shareholder cash distribution approved by UMC's Board of Directors?

UMC's Board of Directors approved a shareholder cash distribution of approximately NT$3.00 per share.

What percentage of revenue did UMC report from 22/28nm technologies in the first quarter of 2024?

UMC reported 33% of revenue from 22/28nm technologies in the first quarter of 2024.