UMC Reports Fourth Quarter 2020 Results

Rhea-AI Summary

United Microelectronics Corporation (UMC) reported a consolidated revenue of NT$45.30 billion for Q4 2020, marking a 8.2% increase year-over-year. The company achieved a gross margin of 23.9% and net income of NT$11.20 billion, with EPS at NT$0.92. For 2020, UMC's revenue grew 26% in USD, driven by robust demand in consumer and computing applications. Looking ahead, UMC anticipates stable wafer shipments and a budgeted capital expenditure of US$1.5 billion for 2021 to meet strong demand.

Positive

• Q4 2020 revenue increased 8.2% YoY to NT$45.30 billion.
• Net income rose 22.9% QoQ to NT$11.20 billion.
• 2020 revenue growth of 26% in USD.
• Gross margin improved to 23.9%.

Negative

• Operating income declined 21.3% QoQ to NT$5.62 billion.
• Operating expenses increased 15.0% QoQ to NT$6.34 billion.
• Net other operating income dropped 61.6% QoQ.

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the fourth quarter of 2020.

Fourth quarter consolidated revenue was NT$45.30 billion, which increased from NT$44.87 billion in 3Q20. Compared to the previous year, 4Q20 revenue was up 8.2% YoY from NT$41.85 billion in 4Q19. Consolidated gross margin for 4Q20 was 23.9%. Net income attributable to the stockholders of the parent was NT$11.20 billion, with earnings per ordinary share of NT$0.92.

Jason Wang, co-president of UMC, said, “Our business traction in Q3 carried over into Q4, lifting utilization rate to 99% and raising wafer shipments to 2.3 million 8-inch equivalents. The stable capacity utilization was driven by robust end market demand from consumer and computing related applications such as WiFi, Digital TV, micro-controllers, and power management IC. For full year 2020, UMC's revenue grew 26% in USD while operating income surged to NT$22.01 billion, reflecting solid utilization rates across both 8" and 12" facilities and optimization of our blended product mix. In particular, our enhanced 12" product mix primarily resulted from the substantial pick-up in 28nm wafer business as well as our successful integration of USJC’s 12” operations.”

Co-president Wang continued, “Looking into the first quarter, stable demand outlook will lead to an incremental increase in wafer shipments and blended ASP in USD. However, due to the continuing unfavorable foreign exchange rate, we anticipate the appreciation of the NT dollar will offset more than half of the implied growth projected for 1Q. For full year 2021, UMC continues to share the foundry industry's positive view in wafer demand. Hence, we will continue with the company's disciplined and measured capex strategy by allocating a budget of US$1.5 billion to accommodate the strong demand outlook in advanced technologies.”

Co-president Wang added, “ In terms of corporate sustainability, UMC first launched its Corporate Sustainability Committee in the domestic semiconductor industry in 2008, adhering to the vision of "people-oriented, symbiosis with the environment, and co-prosperity with the society," and is committed to the promotion of the ESG (environment, society, governance) three-dimensional sustainability concept. Among them, in terms of environmental sustainability, UMC regards climate change, water and energy management issues as challenges and opportunities for the company. In 2020, UMC revealed its “Green 2025” environmental protection goals to achieve 15% water saving, 15% electricity saving, 25% waste reduction, and 65% reduction in fluorine-containing greenhouse gases. Given Taiwan’s lack of rainfall over the past few months, water conservation and water recycling have become increasingly important themes in helping communities cope with longer-term droughts. By 2025, UMC anticipates the company’s efforts in water and wastewater management will reduce water consumption per product unit by 15% compared to 2015. We will continue to enhance our competitiveness and ensure that continuous and effective water conservation management is conducted in our wafer manufacturing operations to increase the recovery and reuse of water resources.”

Summary of Operating Results

Operating Results
(Amount: NT$ million)	4Q20		3Q20		QoQ % change		4Q19		YoY % change
Operating Revenues	45,296		44,870		0.9		41,849		8.2
Gross Profit	10,848		9,769		11.0		6,968		55.7
Operating Expenses	(6,335	)	(5,508	)	15.0		(6,165	)	2.8
Net Other Operating Income and Expenses	1,102		2,872		(61.6	)	1,215		(9.3	)
Operating Income	5,615		7,133		(21.3	)	2,018		178.3
Net Non-Operating Income and Expenses	5,619		2,074		171.0		946		493.4
Net Income Attributable to Stockholders of the Parent	11,196		9,106		22.9		3,837		191.8
EPS (NT$ per share)	0.92		0.75				0.33
(US$ per ADS)	0.162		0.132				0.058

Operating revenues in 4Q20 slightly increased to NT$45.30 billion. Revenue contribution from 40nm and below technologies increased to 40%. Gross profit grew 11.0% QoQ to NT$10.85 billion, or 23.9% of revenue. Operating expenses increased 15.0% to NT$6.34 billion. Net other operating income declined to NT$1.10 billion. Net non-operating income was NT$5.62 billion. Net income attributable to stockholders of the parent grew 22.9% QoQ to NT$11.20 billion.

Earnings per ordinary share for the quarter was NT$0.92. Earnings per ADS was US$0.162. The basic weighted average number of outstanding shares in 4Q20 was 12,206,292,756, compared with 12,107,651,452 shares in 3Q20 and 11,708,869,140 shares in 4Q19. The diluted weighted average number of outstanding shares was 12,359,115,536 in 4Q20, compared with 12,179,561,492 shares in 3Q20 and 13,073,000,039 shares in 4Q19. The fully diluted shares counted on December 31, 2020 were approximately 12,375,194,000.

Detailed Financials Section

COGS & Expenses
(Amount: NT$ million)	4Q20		3Q20		QoQ % change		4Q19		YoY % change
Operating Revenues	45,296		44,870		0.9		41,849		8.2
COGS	(34,448	)	(35,101	)	(1.9	)	(34,881	)	(1.2	)
Depreciation	(10,436	)	(10,911	)	(4.4	)	(11,069	)	(5.7	)
Other Mfg. Costs	(24,012	)	(24,190	)	(0.7	)	(23,812	)	0.8
Gross Profit	10,848		9,769		11.0		6,968		55.7
Gross Margin (%)	23.9	%	21.8	%			16.7	%
Operating Expenses	(6,335	)	(5,508	)	15.0		(6,165	)	2.8
G&A	(1,966	)	(1,614	)	21.9		(1,603	)	22.7
Sales & Marketing	(1,175	)	(1,009	)	16.4		(996	)	17.9
R&D	(3,194	)	(3,314	)	(3.6	)	(3,453	)	(7.5	)
Expected Credit Impairment Gain (Loss)	0		429		(99.9	)	(113	)	-
Net Other Operating Income & Expenses	1,102		2,872		(61.6	)	1,215		(9.3	)
Operating Income	5,615		7,133		(21.3	)	2,018		178.3

Operating revenues increased slightly to NT$45.30 billion. COGS declined 1.9% QoQ to NT$34.45 billion, which included a 4.4% QoQ decline in depreciation. Gross profit grew 11.0% QoQ to NT$10.85 billion, which was partially offset from the continuous appreciation of the NT dollar. Operating expenses increased 15% QoQ to NT$6.34 billion, as G&A increased 21.9% sequentially to NT$1.97 billion while Sales & Marketing rose 16.4% QoQ to NT$1.18 billion. R&D decreased 3.6% QoQ to NT$3.19 billion, representing 7.1% of 4Q20 operating revenues. Net other operating income was NT$1.10 billion. In 4Q20, operating income declined 21.3% QoQ to NT$5.62 billion.

Non-Operating Income and Expenses
(Amount: NT$ million)	4Q20		3Q20		4Q19
Non-Operating Income and Expenses	5,619		2,074		946
Net Interest Income and Expenses	(278	)	(314	)	(468	)
Net Investment Gain and Loss	5,703		3,944		1,064
Exchange Gain and Loss	199		259		188
Other Gain and Loss	(5	)	(1,815	)	162

Net non-operating income in 4Q20 was NT$5.62 billion, mainly resulting from NT$5.70 billion in net investment gain and NT$199 million in exchange gain, which was primarily offset by NT$278 million in net interest expense.

Cash Flow Summary
(Amount: NT$ million)	For the 3-Month Period Ended Dec. 31, 2020		For the 3-Month Period Ended Sep. 30, 2020
Cash Flow from Operating Activities	16,072		18,538
Net income before tax	11,234		9,207
Depreciation & Amortization	11,993		12,170
Expected credit impairment loss (gain)	(0	)	(429	)
Share of profit of associates and joint ventures	(3,822	)	(2,778	)
Income tax paid	(144	)	(229	)
Changes in working capital & others	(3,189	)	597
Cash Flow from Investing Activities	(17,437	)	(5,686	)
Acquisition of PP&E	(11,738	)	(6,707	)
Proceeds from disposal of PP&E	(20	)	1,720
Acquisition of intangible assets	(293	)	(815	)
Decrease (increase) in other financial assets	(4,625	)	281
Others	(761	)	(165	)
Cash Flow from Financing Activities	(3,153	)	(13,652	)
Bank loans	(3,000	)	(4,716	)
Treasury stock acquired	-		(477	)
Treasury stock sold to employees	-		1,678
Cash dividends	-		(9,765	)
Others	(153	)	(372	)
Effect of Exchange Rate	(273	)	(233	)
Net Cash Flow	(4,791	)	(1,033	)
Beginning balance	98,839		99,872
Ending balance	94,048		98,839

In 4Q20, cash inflow from operating activities was NT$16.07 billion. Cash outflow from investing activities totaled NT$17.44 billion, which included NT$12.04 billion in capital expenditure, resulting in free cash flow of NT$4.03 billion. Cash outflow from financing activities was NT$3.15 billion, primarily from NT$3.00 billion in the repayment of bank loans. Net cash outflow in 4Q20 was NT$4.79 billion. Over the next 12 months, the company expects to repay NT$6.34 billion in bank loans.

Current Assets
(Amount: NT$ billion)	4Q20	3Q20	4Q19
Cash and Cash Equivalents	94.05	98.84	95.49
Notes & Accounts Receivable	27.27	26.96	25.73
Days Sales Outstanding	55	55	54
Inventories, net	22.55	22.86	21.72
Days of Inventory	60	60	55
Total Current Assets	164.31	163.48	153.76

Cash and cash equivalents decreased to NT$94.05 billion. Days of inventory remained at 60 days.

Liabilities
(Amount: NT$ billion)	4Q20		3Q20		4Q19
Total Current Liabilities	78.24		59.15		72.71
Notes & Accounts Payable	7.86		7.70		8.88
Short-Term Credit / Bonds	38.04		16.40		36.81
Payables on Equipment	5.45		7.38		3.03
Other	26.89		27.67		23.99
Long-Term Credit / Bonds	24.77		49.46		47.89
Long-Term Investment Liabilities	20.75		20.14		20.09
Total Liabilities	141.74		147.33		162.97
Debt to Equity	60	%	67	%	79	%

Current liabilities increased to NT$78.24 billion, mainly from increase of short-term credit/bonds to NT$38.04 billion as long-term credit/bonds declined to NT$24.77 billion. Total liabilities declined to NT$141.74 billion, leading to a debt to equity ratio of 60%.

Analysis of Revenue²

Revenue Breakdown by Region
Region	4Q20		3Q20		2Q20		1Q20		4Q19
North America	29	%	30	%	31	%	29	%	30	%
Asia Pacific	61	%	57	%	55	%	56	%	55	%
Europe	5	%	6	%	5	%	6	%	6	%
Japan	5	%	7	%	9	%	9	%	9	%

Revenue from Asia Pacific rose to 61% as business from North America declined to 29% of sales. Business from Europe was 5% while contribution from Japan declined to 5%.

Revenue Breakdown by Geometry
Geometry	4Q20		3Q20		2Q20		1Q20		4Q19
14nm and below	0	%	0	%	0	%	0	%	0	%
14nm<x<=28nm	18	%	14	%	13	%	9	%	10	%
28nm<x<=40nm	22	%	23	%	23	%	25	%	22	%
40nm<x<=65nm	18	%	19	%	16	%	16	%	16	%
65nm<x<=90nm	8	%	10	%	13	%	15	%	18	%
90nm<x<=0.13um	11	%	11	%	11	%	11	%	11	%
0.13um<x<=0.18um	13	%	13	%	13	%	13	%	12	%
0.18um<x<=0.35um	8	%	8	%	8	%	8	%	8	%
0.5um and above	2	%	2	%	3	%	3	%	3	%

Revenue contribution from 28nm continued to increase, growing to 18% of the business while 40nm contribution declined to 22% of sales.

Revenue Breakdown by Customer Type
Customer Type	4Q20		3Q20		2Q20		1Q20		4Q19
Fabless	87	%	88	%	88	%	88	%	87	%
IDM	13	%	12	%	12	%	12	%	13	%

Revenue from fabless customers decreased to 87% of revenue.

Revenue Breakdown by Application (1)
Application	4Q20		3Q20		2Q20		1Q20		4Q19
Computer	16	%	13	%	14	%	13	%	13	%
Communication	49	%	54	%	51	%	54	%	54	%
Consumer	25	%	24	%	24	%	24	%	24	%
Others	10	%	9	%	11	%	9	%	9	%

Revenue from the communication segment declined to 49%, while business from computer applications grew to 16%. Business from consumer applications increased to 25% as other segments increased to 10%.

(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 4Q20.

(To view blended ASP trend, please click here for 4Q20 ASP)

Shipment and Utilization Rate³

Wafer Shipments
	4Q20		3Q20		2Q20		1Q20		4Q19
Wafer Shipments (8” K equivalents)	2,293		2,254		2,218		2,148		2,042
Quarterly Capacity Utilization Rate
	4Q20		3Q20		2Q20		1Q20		4Q19
Utilization Rate	99	%	97	%	98	%	93	%	92	%
Total Capacity (8” K equivalents)	2,311		2,308		2,291		2,278		2,237

In 4Q20, wafer shipments increased 1.7% QoQ to 2,293K, while quarterly capacity remained flat at 2,311K. As a result, the overall utilization rate in 4Q20 was 99%.

Capacity⁴

Total capacity in the fourth quarter totaled 2,311K 8-inch equivalent wafers. We foresee in the first quarter, that capacity will decline to 2,280K 8-inch equivalent wafers, mainly reflecting the product mix changes at WTK and Fab 8A.

Annual Capacity in thousands of wafers												Quarterly Capacity in thousands of wafers
FAB		Geometry (um)	2020		2019		2018		2017			FAB	1Q21E	4Q20	3Q20	2Q20
WTK	6"	3.5 – 0.45	371		370		396		422			WTK	84	93	93	93
8A	8"	0.5 – 0.25	802		825		825		825			8A	186	201	201	201
8C	8"	0.35 – 0.11	452		436		383		357			8C	113	113	113	113
8D	8"	0.13 – 0.09	371		359		347		341			8D	94	93	93	93
8E	8"	0.5 – 0.15	449		426		418		418			8E	113	113	113	113
8F	8"	0.18 – 0.11	485		434		431		417			8F	120	122	122	122
8S	8"	0.18 – 0.11	373		372		372		347			8S	101	93	93	93
8N	8"	0.5 – 0.11	917		831		771		753			8N	226	230	230	230
12A	12"	0.13 – 0.014	1044		997		997		970			12A	257	261	261	261
12i	12"	0.13 – 0.040	628		595		555		537			12i	157	160	160	155
12X	12"	0.040 – 0.028	217		203		183		97			12X	59	57	56	53
12M	12"	0.090 – 0.040	391		98		-		-			12M	96	98	98	98
Total(1)			9,188		8,148		7,673		7,304			Total	2,280	2,311	2,308	2,291
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$1.5 billion

CAPEX spending in 4Q20 was US$418 million, leading to a total of US$1.0 billion in capital expenditure for 2020. Full year 2021 CAPEX is budgeted at US$1.5 billion.

Brief Summary of Full Year 2020 Consolidated Results

Operating Results
(Amount: NT$ million)	2020		2019		YoY % change
Operating Revenues	176,821		148,202		19.3
Gross Profit	38,997		21,315		83.0
Operating Expenses	(23,244	)	(21,807	)	6.6
Net Other Operating Income and Expenses	6,254		5,182		20.7
Operating Income	22,007		4,690		369.3
Net Non-Operating Income and Expenses	5,919		1,046		465.9
Income Tax (Expense) Benefit	(746	)	393		-
Net Income Attributable to Stockholders of the Parent	29,189		9,708		200.7
EPS (NT$ per share)	2.42		0.82
(US$ per ADS)	0.425		0.144

• Consolidated revenue in NTD increased 19.3% YoY to NT$176.82 billion, from NT$148.20 billion in 2019.
• Gross margin was 22.1%, compared to 14.4% in 2019.
• Operating margin was 12.5%, compared to 3.2% in 2019.
• Net income attributable to stockholders of the parent was NT$29.19 billion in 2020.
• EPS was NT$2.42, or EPADS of US$0.425 for 2020.
• The contribution from 28nm technologies and below accounted for 14% in 2020. 40nm business accounted for 23% in 2020.

Annual Sales Breakdown in Revenue for Foundry Segment

Region	2020		2019
North America	30	%	32	%
Asia Pacific	57	%	57	%
Europe	6	%	6	%
Japan	7	%	5	%
Technology	2020		2019
14nm and below	0	%	0	%
14nm<x<=28nm	14	%	11	%
28nm<x<=40nm	23	%	23	%
40nm<x<=65nm	17	%	15	%
65nm<x<=90nm	11	%	14	%
90nm<x<=0.13um	11	%	12	%
0.13um<x<=0.18um	13	%	13	%
0.18um<x<=0.35um	8	%	9	%
0.5um and above	3	%	3	%
Customer Type	2020		2019
Fabless	88	%	91	%
IDM	12	%	9	%
Application	2020		2019
Computer	14	%	14	%
Communication	52	%	52	%
Consumer	24	%	26	%
Others	10	%	8	%

First Quarter 2021 Outlook & Guidance

Quarter-over-Quarter Guidance:

• Wafer Shipments: To increase by approximately 2%
• ASP in USD: To increase by 2-3%
• Gross Profit Margin: To be in the mid-20% range
• Capacity Utilization: 100%
• 2021 CAPEX: US$1.5 billion

Recent Developments / Announcements

Dec 10, 2020	eMemory and PUFsecurity Announce with UMC World’s 1st Secure Embedded Solution
Oct 29, 2020	UMC 3Q20 Financial Results

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

Conference Call / Webcast Announcement

Wednesday, January 27, 2021

Time: 5:00 PM (Taipei) / 4:00 AM (New York) / 09:00 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 4Q20 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 December 31, 2020
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
	December 31, 2020
	US$			NT$			%
Assets
Current assets
Cash and cash equivalents	3,302			94,048			24.9	%
Accounts receivable, net	958			27,273			7.2	%
Inventories, net	792			22,552			6.0	%
Other current assets	717			20,433			5.4	%
Total current assets	5,769			164,306			43.5	%
Non-current assets
Funds and investments	1,987			56,578			15.0	%
Property, plant and equipment	4,662			132,775			35.2	%
Right-of-use assets	272			7,748			2.1	%
Other non-current assets	565			16,109			4.2	%
Total non-current assets	7,486			213,210			56.5	%
Total assets	13,255			377,516			100.0	%
Liabilities
Current liabilities
Short-term loans	388			11,057			2.9	%
Payables	1,132			32,240			8.5	%
Current portion of long-term liabilities	948			26,985			7.2	%
Other current liabilities	279			7,961			2.2	%
Total current liabilities	2,747			78,243			20.8	%
Non-current liabilities
Bonds payable	586			16,690			4.4	%
Long-term loans	284			8,081			2.1	%
Lease liabilities, noncurrent	177			5,027			1.3	%
Other non-current liabilities	1,183			33,702			9.0	%
Total non-current liabilities	2,230			63,500			16.8	%
Total liabilities	4,977			141,743			37.6	%
Equity
Equity attributable to the parent company
Capital	4,362			124,224			32.9	%
Additional paid-in capital	1,517			43,211			11.4	%
Retained earnings and other components of equity	2,400			68,345			18.1	%
Treasury stock	(4	)		(120	)		(0.0	%)
Total equity attributable to the parent company	8,275			235,660			62.4	%
Non-controlling interests	3			113			0.0	%
Total equity	8,278			235,773			62.4	%
Total liabilities and equity	13,255			377,516			100.0	%
Note：New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2020 exchange rate of NT $28.48 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
	December 31, 2020						December 31, 2019						Chg.			December 31, 2020						September 30, 2020						Chg.
	US$			NT$			US$			NT$			%			US$			NT$			US$			NT$			%
Operating revenues	1,590			45,296			1,469			41,849			8.2	%		1,590			45,296			1,575			44,870			0.9	%
Operating costs	(1,209	)		(34,448	)		(1,224	)		(34,881	)		(1.2	%)		(1,209	)		(34,448	)		(1,232	)		(35,101	)		(1.9	%)
Gross profit	381			10,848			245			6,968			55.7	%		381			10,848			343			9,769			11.0	%
	23.9	%		23.9	%		16.7	%		16.7	%					23.9	%		23.9	%		21.8	%		21.8	%
Operating expenses
- Sales and marketing expenses	(41	)		(1,175	)		(35	)		(996	)		17.9	%		(41	)		(1,175	)		(35	)		(1,009	)		16.4	%
- General and administrative expenses	(69	)		(1,966	)		(56	)		(1,603	)		22.7	%		(69	)		(1,966	)		(58	)		(1,614	)		21.9	%
- Research and development expenses	(112	)		(3,194	)		(121	)		(3,453	)		(7.5	%)		(112	)		(3,194	)		(116	)		(3,314	)		(3.6	%)
- Expected credit impairment gain (loss)	0			0			(4	)		(113	)		-			0			0			15			429			(99.9	%)
Subtotal	(222	)		(6,335	)		(216	)		(6,165	)		2.8	%		(222	)		(6,335	)		(194	)		(5,508	)		15.0	%
Net other operating income and expenses	38			1,102			42			1,215			(9.3	%)		38			1,102			101			2,872			(61.6	%)
Operating income	197			5,615			71			2,018			178.3	%		197			5,615			250			7,133			(21.3	%)
	12.4	%		12.4	%		4.8	%		4.8	%					12.4	%		12.4	%		15.9	%		15.9	%
Net non-operating income and expenses	197			5,619			33			946			493.4	%		197			5,619			73			2,074			171.0	%
Income from continuing operations    before income tax	394			11,234			104			2,964			278.9	%		394			11,234			323			9,207			22.0	%
	24.8	%		24.8	%		7.1	%		7.1	%					24.8	%		24.8	%		20.5	%		20.5	%
Income tax benefit (expenses)	(12	)		(344	)		7			191			-			(12	)		(344	)		(7	)		(197	)		74.8	%
Net income	382			10,890			111			3,155			245.1	%		382			10,890			316			9,010			20.9	%
	24.0	%		24.0	%		7.5	%		7.5	%					24.0	%		24.0	%		20.1	%		20.1	%
Other comprehensive income (loss)	135			3,831			(54	)		(1,538	)		-			135			3,831			49			1,390			175.6	%
Total comprehensive income (loss)	517			14,721			57			1,617			810.3	%		517			14,721			365			10,400			41.5	%
Net income attributable to:
Stockholders of the parent	393			11,196			135			3,837			191.8	%		393			11,196			320			9,106			22.9	%
Non-controlling interests	(11	)		(306	)		(24	)		(682	)		(55.1	%)		(11	)		(306	)		(4	)		(96	)		216.5	%
Comprehensive income (loss) attributable to:
Stockholders of the parent	528			15,027			80			2,291			556.0	%		528			15,027			369			10,497			43.2	%
Non-controlling interests	(11	)		(306	)		(23	)		(674	)		(54.6	%)		(11	)		(306	)		(4	)		(97	)		216.5	%
Earnings per share-basic	0.032			0.92			0.012			0.33						0.032			0.92			0.026			0.75
Earnings per ADS (2)	0.162			4.60			0.058			1.65						0.162			4.60			0.132			3.75
Weighted average number of shares
outstanding (in millions)				12,206						11,709									12,206						12,108
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2020 exchange rate of NT $28.48 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 Twelve-Month Period Ended
	December 31, 2020									December 31, 2020
	US$			NT$			%			US$			NT$			%
Operating revenues	1,590			45,296			100.0	%		6,209			176,821			100.0	%
Operating costs	(1,209	)		(34,448	)		(76.1	%)		(4,840	)		(137,824	)		(77.9	%)
Gross profit	381			10,848			23.9	%		1,369			38,997			22.1	%
Operating expenses
- Sales and marketing expenses	(41	)		(1,175	)		(2.6	%)		(146	)		(4,152	)		(2.4	%)
- General and administrative expenses	(69	)		(1,966	)		(4.3	%)		(233	)		(6,664	)		(3.7	%)
- Research and development expenses	(112	)		(3,194	)		(7.1	%)		(453	)		(12,896	)		(7.3	%)
- Expected credit impairment gain	0			0			0.0	%		16			468			0.3	%
Subtotal	(222	)		(6,335	)		(14.0	%)		(816	)		(23,244	)		(13.1	%)
Net other operating income and expenses	38			1,102			2.5	%		220			6,254			3.5	%
Operating income	197			5,615			12.4	%		773			22,007			12.5	%
Net non-operating income and expenses	197			5,619			12.4	%		208			5,919			3.3	%
Income from continuing operations     before income tax	394			11,234			24.8	%		981			27,926			15.8	%
Income tax expense	(12	)		(344	)		(0.8	%)		(27	)		(746	)		(0.4	%)
Net income	382			10,890			24.0	%		954			27,180			15.4	%
Other comprehensive income (loss)	135			3,831			8.5	%		165			4,686			2.6	%
Total comprehensive income (loss)	517			14,721			32.5	%		1,119			31,866			18.0	%
Net income attributable to:
Stockholders of the parent	393			11,196			24.7	%		1,025			29,189			16.5	%
Non-controlling interests	(11	)		(306	)		(0.7	%)		(71	)		(2,009	)		(1.1	%)
Comprehensive income (loss) attributable to:
Stockholders of the parent	528			15,027			33.2	%		1,185			33,748			19.1	%
Non-controlling interests	(11	)		(306	)		(0.7	%)		(66	)		(1,882	)		(1.1	%)
Earnings per share-basic	0.032			0.92						0.085			2.42
Earnings per ADS (2)	0.162			4.60						0.425			12.10
Weighted average number of shares      outstanding (in millions)				12,206									12,073
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2020 exchange rate of NT $28.48 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statement of Cash Flows
For The Twelve-Month Period Ended December 31, 2020
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
	US$			NT$
Cash flows from operating activities :
Net income before tax	981			27,926
Depreciation & Amortization	1,717			48,908
Share of profit of associates and joint ventures	(234	)		(6,668	)
Changes in working capital & others	(156	)		(4,421	)
Net cash provided by operating activities	2,308			65,745
Cash flows from investing activities :
Acquisition of property, plant and equipment	(925	)		(26,345	)
Proceeds from disposal of property, plant and equipment	61			1,737
Acquisition of intangible assets	(71	)		(2,009	)
Increase in other financial assets	(437	)		(12,438	)
Others	(36	)		(1,057	)
Net cash used in investing activities	(1,408	)		(40,112	)
Cash flows from financing activities :
Decrease in short-term loans	(33	)		(933	)
Redemption of bonds	(481	)		(13,703	)
Proceeds from long-term loans	475			13,529
Repayments of long-term loans	(470	)		(13,392	)
Cash dividends	(343	)		(9,766	)
Treasury stock acquired	(59	)		(1,678	)
Treasury stock sold to employees	59			1,678
Others	(47	)		(1,336	)
Net cash used in financing activities	(899	)		(25,601	)
Effect of exchange rate changes on cash and cash equivalents	(52	)		(1,476	)
Net decrease in cash and cash equivalents	(51	)		(1,444	)
Cash and cash equivalents at beginning of period	3,353			95,492
Cash and cash equivalents at end of period	3,302			94,048
Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2020 exchange rate of NT $28.48 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 December 31, 2020, the three-month period ending September 30, 2020, and the equivalent three-month period that ended December 31, 2019. For all 4Q20 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the December 31, 2020 exchange rate of NT$ 28.48 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 Q4 2020 revenues and growth rate?

UMC reported Q4 2020 revenues of NT$45.30 billion, reflecting an 8.2% year-over-year increase.

What is the projected capital expenditure for UMC in 2021?

UMC has budgeted a capital expenditure of US$1.5 billion for 2021.

How much did UMC earn in net income for Q4 2020?

UMC's net income for Q4 2020 was NT$11.20 billion.

What was UMC's gross margin in Q4 2020?

UMC reported a gross margin of 23.9% in Q4 2020.

How did UMC's operating income change in Q4 2020?

Operating income for Q4 2020 declined 21.3% QoQ to NT$5.62 billion.