UMC Reports Second Quarter 2022 Results

Rhea-AI Summary

United Microelectronics Corporation (UMC) reported robust Q2 2022 results, with revenue rising 13.6% QoQ to NT$72.06 billion (US$2.43 billion) and a 41.5% YoY increase. Gross margin reached 46.5%, while net income attributable to shareholders was NT$21.33 billion (US$718 million), translating to NT$1.74 per share. The company maintained over 100% capacity utilization and reported strong demand for its 22/28nm technologies, accounting for 22% of wafer revenue. UMC anticipates stable business amid potential fluctuations in consumer electronics demand and emphasizes its commitment to sustainability with validated emissions reduction targets.

Positive

• Revenue increased 13.6% QoQ and 41.5% YoY to NT$72.06 billion.
• Gross margin improved to 46.5%, up from 43.4% in Q1 2022.
• Net income rose 7.7% QoQ to NT$21.33 billion.
• Wafer shipments grew 4.3% from the previous quarter.
• Capacity utilization remained above 100%.
• Sustainability goals validated by Science Based Targets initiative.

Negative

• Net non-operating loss of NT$2.59 billion due to investment losses.
• Operating expenses increased by 3.0% QoQ.

Q2 GM climbs to 46.5% as 1H 2022 operating income reaches NT$50.5bn

Second Quarter 2022 Overview¹:

• Revenue: NT$72.06 billion (US$2.43 billion)
• Gross margin: 46.5%; Operating margin: 39.1%
• Revenue from 22/28nm: 22%
• Capacity utilization rate: 100%+
• Net income attributable to shareholders of the parent: NT$21.33 billion (US$718 million)
• Earnings per share: NT$1.74; earnings per ADS: US$0.293

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 second quarter of 2022.

Second quarter consolidated revenue was NT$72.06 billion, increasing 13.6% QoQ from NT$63.42 billion in 1Q22. Compared to a year ago, 2Q22 revenue grew 41.5% YoY from NT$50.91 billion in 2Q21. Consolidated gross margin for 2Q22 reached 46.5%. Net income attributable to the shareholders of the parent was NT$21.33 billion, with earnings per ordinary share of NT$1.74.

Jason Wang, UMC co-president, said, “In the second quarter, we delivered results in line with guidance, thanks to continuous strong demand for UMC’s differentiated processes across our end markets. Overall wafer shipments rose 4.3% from the previous quarter, while higher average selling price and a favorable foreign exchange rate lifted second-quarter gross margin to 46.5%. Revenue from our 22/28nm portfolio increased 29% sequentially, driven by the additional capacity at Fab 12A P5 that came online during the second quarter. We are confident in the long-term growth prospects of our 22/28nm business, which now represents 22% of UMC’s overall wafer revenue, and has demonstrated solid traction for OLED display drivers, image processors, WiFi, and automotive applications. As structural trends drive semiconductor content increase in end devices from smartphones to automobiles, it is our conviction that 28nm is a long-lasting node that will be important for many existing and emerging applications for years to come.”

Co-president Wang said, “Going into the third quarter, we expect our business to remain firm. While cooling demand for smartphones, PCs, and consumer electronics may pose some short-term fluctuations, we are actively working with customers to adjust their product mix. Coming off a super cycle over the past two years, the semiconductor industry is now in a period of inventory correction. We believe UMC’s comprehensive portfolio of differentiated, leading specialty technologies and strong partnerships with leading customers will help us navigate the cyclical macro environment.”

Co-president Wang added, “Moving onto our progress in sustainability, we are pleased to become the first semiconductor foundry globally to have emissions reduction targets validated by the Science Based Targets initiative (SBTi), the leading body that independently assesses emissions targets of companies and ensure they align with the latest climate science. This reflects UMC’s commitment to accountability and confirms our roadmap to achieve our net-zero pledge. According to our roadmap, we will systematically lower direct emissions from our operations, indirect emissions from our electricity usage, as well as emissions from our value chain in order to minimize the environmental footprint of our operations and products.”

Summary of Operating Results

Operating Results
(Amount: NT$ million)		2Q22			1Q22			QoQ % change		2Q21			YoY % change
Operating Revenues		72,055			63,423			13.6		50,908			41.5
Gross Profit		33,472			27,504			21.7		15,908			110.4
Operating Expenses		(6,706	)		(6,513	)		3.0		(6,201	)		8.2
Net Other Operating Income and Expenses		1,398			1,343			4.1		1,606			(12.9	)
Operating Income		28,164			22,334			26.1		11,313			149.0
Net Non-Operating Income and Expenses		(2,586	)		1,314			-		1,881			-
Net Income Attributable to Shareholders of the Parent		21,327			19,808			7.7		11,943			78.6
EPS (NT$ per share)		1.74			1.61					0.98
(US$ per ADS)		0.293			0.271					0.165

Second quarter operating revenues increased by 13.6% sequentially to NT$72.06 billion which was lifted to higher wafer shipments, increase in wafer pricing as well as favorable foreign exchange rate. Revenue contribution from 40nm and below technologies represented 40% of wafer revenue. Gross profit grew 21.7% QoQ to NT$33.47 billion, or 46.5% of revenue. Operating expenses grew 3.0% to NT$6.71 billion. Net other operating income remained relatively flat at NT$1.40 billion. Net non-operating loss amounted to NT$2.59 billion primarily from non-cash based items recognized as marked-to-market assets. Net income attributable to shareholders of the parent amounted to NT$21.33 billion.

Earnings per ordinary share for the quarter was NT$1.74. Earnings per ADS was US$0.293. The basic weighted average number of outstanding shares in 2Q22 was 12,283,479,334, compared with 12,283,479,334 shares in 1Q22 and 12,206,292,756 shares in 2Q21. The diluted weighted average number of outstanding shares was 12,553,373,552 in 2Q22, compared with 12,534,728,721 shares in 1Q22 and 12,382,592,798 shares in 2Q21. The fully diluted shares counted on June 30, 2022 were approximately 12,553,374,000.

Detailed Financials Section

Operating revenues increased to NT$72.06 billion. COGS increased to NT$38.58 billion, which included 1.9% sequential decrease in depreciation, mainly reflecting higher wafer shipments. Gross profit grew 21.7% QoQ to NT$33.47 billion. Operating expenses slightly increased 3.0% QoQ to NT$6.71 billion, as G&A grew 15.8% to NT$2.58 billion while R&D was up 5.8% QoQ to NT$3.21 billion, representing 4.5% of revenue. Net other operating income was NT$1.40 billion. In 2Q22, operating income grew 26.1% QoQ to NT$28.16 billion.

COGS & Expenses
(Amount: NT$ million)		2Q22			1Q22			QoQ % change			2Q21			YoY % change
Operating Revenues		72,055			63,423			13.6			50,908			41.5
COGS		(38,583	)		(35,919	)		7.4			(35,000	)		10.2
Depreciation		(9,616	)		(9,807	)		(1.9	)		(10,187	)		(5.6	)
Other Mfg. Costs		(28,967	)		(26,112	)		10.9			(24,813	)		16.7
Gross Profit		33,472			27,504			21.7			15,908			110.4
Gross Margin (%)		46.5	%		43.4	%					31.3	%
Operating Expenses		(6,706	)		(6,513	)		3.0			(6,201	)		8.2
G&A		(2,579	)		(2,226	)		15.8			(1,901	)		35.7
Sales & Marketing		(915	)		(1,255	)		(27.1	)		(1,131	)		(19.1	)
R&D		(3,209	)		(3,033	)		5.8			(3,168	)		1.3
Expected Credit Impairment Gain (Loss)		(3	)		1			-			(1	)		90.3
Net Other Operating Income & Expenses		1,398			1,343			4.1			1,606			(12.9	)
Operating Income		28,164			22,334			26.1			11,313			149.0

Net non-operating expense in 2Q22 was NT$2.59 billion, primarily reflecting NT$3.68 billion in net investment loss, offset by a NT$1.36 billion in exchange gain.

Non-Operating Income and Expenses
(Amount: NT$ million)		2Q22			1Q22			2Q21
Non-Operating Income and Expenses		(2,586	)		1,314			1,881
Net Interest Income and Expenses		(163	)		(323	)		(310	)
Net Investment Gain and Loss		(3,675	)		576			2,276
Exchange Gain and Loss		1,361			926			(84	)
Other Gain and Loss		(109	)		135			(1	)

In 2Q22, cash inflow from operating activities was NT$35.09 billion. Cash outflow from investing activities amounted to NT$11.72 billion, which included NT$11.63 billion in capital expenditure, resulting in free cash flow of NT$23.46 billion. Cash outflow from financing reached NT$13.42 billion, primarily from NT$11.62 billion repayment in bank loans and NT$2.48 billion in redemption of bonds. Net cash inflow in 2Q22 totaled NT$11.55 billion. Over the next 12 months, the company expects to repay NT$ 4.18 billion in bank loans.

Cash Flow Summary
(Amount: NT$ million)		For the 3-Month Period Ended Jun. 30, 2022			For the 3-Month Period Ended Mar. 31, 2022
Cash Flow from Operating Activities		35,091			30,118
Net income before tax		25,578			23,648
Depreciation & Amortization		11,107			11,390
Share of loss of associates and joint ventures		2,027			1,858
Income tax paid		(2,913	)		(769	)
Changes in working capital & others		(708	)		(6,009	)
Cash Flow from Investing Activities		(11,716	)		14,752
Decrease in financial assets measured at amortized cost		103			26,315
Acquisition of PP&E		(10,907	)		(10,803	)
Acquisition of intangible assets		(815	)		(421	)
Others		(97	)		(339	)
Cash Flow from Financing Activities		(13,423	)		(7,959	)
Bank loans		(11,615	)		(612	)
Redemption of bonds		(2,484	)		(7,249	)
Others		676			(98	)
Effect of Exchange Rate		1,601			2,637
Net Cash Flow		11,553			39,548
Beginning balance		172,170			132,622
Ending balance		183,723			172,170

Cash and cash equivalents increased to NT$183.72 billion. Days of inventory increased by 1 day to 62 days.

Current Assets
(Amount: NT$ billion)		2Q22		1Q22		2Q21
Cash and Cash Equivalents		183.72		172.17		124.00
Notes & Accounts Receivable		42.88		38.05		30.11
Days Sales Outstanding		51		53		53
Inventories, net		27.34		25.40		22.44
Days of Inventory		62		61		58
Total Current Assets		265.78		249.68		207.83

Current liabilities increased to NT$131.81 billion, mainly from NT$97.04 billion in other. Long-term credit/bonds decreased to NT$45.70 billion. Total liabilities increased to NT$216.51 billion, leading to a debt to equity ratio of 76%.

Liabilities
(Amount: NT$ billion)		2Q22		1Q22		2Q21
Total Current Liabilities		131.81		93.12		85.00
Notes & Accounts Payable		9.95		9.06		8.42
Short-Term Credit / Bonds		13.22		22.58		19.65
Payables on Equipment		11.60		7.63		6.67
Dividends Payable		-		-		19.88
Other		97.04		53.85		30.38
Long-Term Credit / Bonds		45.70		50.07		50.97
Long-Term Investment Liabilities		8.50		8.59		20.61
Total Liabilities		216.51		180.62		181.49
Debt to Equity		76%		60%		76%

Analysis of Revenue²

Revenue from Asia-Pacific increased to 65% while business from North America remained at 22% of sales. Business from Europe was 8% while contribution from Japan decreased to 5%.

Revenue Breakdown by Region
Region	2Q22	1Q22	4Q21	3Q21	2Q21
North America	22%	22%	21%	22%	22%
Asia Pacific	65%	64%	66%	65%	63%
Europe	8%	8%	7%	7%	8%
Japan	5%	6%	6%	6%	7%

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

Revenue Breakdown by Geometry
Geometry	2Q22	1Q22	4Q21	3Q21	2Q21
14nm and below	0%	0%	0%	0%	0%
14nm<x<=28nm	22%	20%	20%	19%	20%
28nm<x<=40nm	18%	18%	18%	18%	18%
40nm<x<=65nm	19%	19%	19%	19%	19%
65nm<x<=90nm	7%	8%	8%	8%	9%
90nm<x<=0.13um	12%	12%	12%	12%	11%
0.13um<x<=0.18um	12%	13%	13%	13%	13%
0.18um<x<=0.35um	8%	7%	7%	8%	8%
0.5um and above	2%	3%	3%	3%	2%

Revenue from fabless customers accounted for 86% of revenue.

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

Revenue from the communication segment represented 45%, while business from computer applications decreased to 16%. Business from consumer applications was 27% as other segments remained at 12% of revenue.

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

(To view blended ASP trend, please click here for 2Q22 ASP)

Shipment and Utilization Rate³

Wafer shipments grew 4.3% QoQ to 2,622K in the second quarter, while quarterly capacity grew to 2,528K. Overall utilization rate in 2Q22 remained above 100%.

Wafer Shipments
	2Q22	1Q22	4Q21	3Q21	2Q21
Wafer Shipments (8” K equivalents)	2,622	2,513	2,546	2,503	2,440
Quarterly Capacity Utilization Rate
	2Q22	1Q22	4Q21	3Q21	2Q21
Utilization Rate	100%+	100%+	100%+	100%+	100%+
Total Capacity (8” K equivalents)	2,528	2,420	2,419	2,383	2,370

Capacity⁴

Overall capacity in the second quarter increased to 2,528K 8-inch equivalent wafers. Capacity will grow in the third quarter of 2022 to 2,539K 8-inch equivalent wafers, driven by the capacity expansion taking place at 12X and 8N.

Annual Capacity in thousands of wafers									Quarterly Capacity in thousands of wafers
FAB		Geometry (um)	2021	2020	2019	2018			FAB		3Q22E	2Q22	1Q22	4Q21
WTK	6"	5 – 0.15	329	371	370	396			WTK	6"	85	84	82	81
8A	8"	3 – 0.11	755	802	825	825			8A	8"	192	192	189	190
8C	8"	0.35 – 0.11	459	452	436	383			8C	8"	115	115	113	115
8D	8"	0.18 – 0.09	380	371	359	347			8D	8"	103	103	101	95
8E	8"	0.6 – 0.14	457	449	426	418			8E	8"	118	118	116	115
8F	8"	0.18 – 0.11	514	485	434	431			8F	8"	138	138	136	137
8S	8"	0.18 – 0.11	408	373	372	372			8S	8"	111	111	109	102
8N	8"	0.5 – 0.11	917	917	831	771			8N	8"	242	235	231	232
12A	12"	0.13 – 0.014	1,070	1,044	997	997			12A	12"	301	301	267	271
12i	12"	0.13 – 0.040	641	628	595	555			12i	12"	164	164	162	164
12X	12"	0.080 – 0.022	284	217	203	183			12X	12"	80	78	77	78
12M	12"	0.13 – 0.040	395	391	98	-			12M	12"	110	110	108	104
Total(1)			9,453	9,188	8,148	7,673			Total		2,539	2,528	2,420	2,419
YoY Growth Rate			3%	13%	6%	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

CAPEX spending in 2Q22 totaled US$395 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

Third Quarter 2022 Outlook & Guidance

Quarter-over-Quarter Guidance:

• Wafer Shipments: To remain flat
• ASP in USD: To remain flat
• Gross Profit Margin: To be in the mid-40% range
• Capacity Utilization: 100%
• 2022 CAPEX: US$3.6 billion

Recent Developments / Announcements

Apr. 29, 2022	UMC ranked top 5% in corporate governance evaluation for 8th consecutive year
May. 27, 2022	UMC shareholders approve NT$3 cash dividend at annual shareholders’ meeting
Jun. 23, 2022	UMC’s climate goals validated by Science Based Targets initiatives

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

Conference Call / Webcast Announcement

Wednesday, July 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 2Q22 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 850,000 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 second 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 “Second 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 June 30, 2022
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
		June 30, 2022
		US$		NT$		%
Assets
Current assets
Cash and cash equivalents		6,184		183,723		36.8%
Accounts receivable, net		1,443		42,884		8.6%
Inventories, net		920		27,341		5.5%
Other current assets		399		11,830		2.3%
Total current assets		8,946		265,778		53.2%
Non-current assets
Funds and investments		2,234		66,373		13.3%
Property, plant and equipment		4,518		134,243		26.9%
Right-of-use assets		266		7,900		1.6%
Other non-current assets		857		25,460		5.0%
Total non-current assets		7,875		233,976		46.8%
Total assets		16,821		499,754		100.0%
Liabilities
Current liabilities
Short-term loans		21		624		0.1%
Payables		3,194		94,907		19.0%
Current portion of long-term liabilities		424		12,593		2.5%
Other current liabilities		798		23,689		4.8%
Total current liabilities		4,437		131,813		26.4%
Non-current liabilities
Bonds payable		777		23,080		4.6%
Long-term loans		761		22,619		4.5%
Lease liabilities, noncurrent		180		5,346		1.1%
Other non-current liabilities		1,132		33,648		6.7%
Total non-current liabilities		2,850		84,693		16.9%
Total liabilities		7,287		216,506		43.3%
Equity
Equity attributable to the parent company
Capital		4,201		124,821		25.0%
Additional paid-in capital		350		10,400		2.1%
Retained earnings and other components of equity		4,970		147,661		29.5%
Total equity attributable to the parent company		9,521		282,882		56.6%
Non-controlling interests		13		366		0.1%
Total equity		9,534		283,248		56.7%
Total liabilities and equity		16,821		499,754		100.0%
Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2022 exchange rate of NT $29.71 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
	June 30, 2022				June 30, 2021				Chg.		June 30, 2022				March 31, 2022				Chg.
	US$		NT$		US$		NT$		%		US$		NT$		US$		NT$		%
Operating revenues	2,425		72,055		1,713		50,908		41.5%		2,425		72,055		2,135		63,423		13.6%
Operating costs	(1,298)		(38,583)		(1,178)		(35,000)		10.2%		(1,298)		(38,583)		(1,209)		(35,919)		7.4%
Gross profit	1,127		33,472		535		15,908		110.4%		1,127		33,472		926		27,504		21.7%
	46.5%		46.5%		31.3%		31.3%				46.5%		46.5%		43.4%		43.4%
Operating expenses
- Sales and marketing expenses	(31)		(915)		(38)		(1,131)		(19.1%)		(31)		(915)		(42)		(1,255)		(27.1%)
- General and administrative expenses	(87)		(2,579)		(63)		(1,901)		35.7%		(87)		(2,579)		(75)		(2,226)		15.8%
- Research and development expenses	(108)		(3,209)		(107)		(3,168)		1.3%		(108)		(3,209)		(102)		(3,033)		5.8%
- Expected credit impairment gain (loss)	(0)		(3)		(0)		(1)		90.3%		(0)		(3)		0		1		-
Subtotal	(226)		(6,706)		(208)		(6,201)		8.2%		(226)		(6,706)		(219)		(6,513)		3.0%
Net other operating income and expenses	47		1,398		54		1,606		(12.9%)		47		1,398		45		1,343		4.1%
Operating income	948		28,164		381		11,313		149.0%		948		28,164		752		22,334		26.1%
	39.1%		39.1%		22.2%		22.2%				39.1%		39.1%		35.2%		35.2%
Net non-operating income and expenses	(87)		(2,586)		63		1,881		-		(87)		(2,586)		44		1,314		-
Income from continuing operations
before income tax	861		25,578		444		13,194		93.9%		861		25,578		796		23,648		8.2%
	35.5%		35.5%		25.9%		25.9%				35.5%		35.5%		37.3%		37.3%
Income tax expense	(138)		(4,088)		(45)		(1,327)		207.8%		(138)		(4,088)		(121)		(3,582)		14.1%
Net income	723		21,490		399		11,867		81.1%		723		21,490		675		20,066		7.1%
	29.8%		29.8%		23.3%		23.3%				29.8%		29.8%		31.6%		31.6%
Other comprehensive income (loss)	(126)		(3,749)		(65)		(1,935)		93.8%		(126)		(3,749)		48		1,422		-
Total comprehensive income (loss)	597		17,741		334		9,932		78.6%		597		17,741		723		21,488		(17.4%)
Net income attributable to:
Shareholders of the parent	718		21,327		402		11,943		78.6%		718		21,327		667		19,808		7.7%
Non-controlling interests	5		163		(3)		(76)		-		5		163		8		258		(36.6%)
Comprehensive income (loss) attributable to:
Shareholders of the parent	592		17,578		337		10,008		75.6%		592		17,578		715		21,229		(17.2%)
Non-controlling interests	5		163		(3)		(76)		-		5		163		8		259		(36.6%)
Earnings per share-basic	0.059		1.74		0.033		0.98				0.059		1.74		0.054		1.61
Earnings per ADS (2)	0.293		8.70		0.165		4.90				0.293		8.70		0.271		8.05
Weighted average number of shares
outstanding (in millions)			12,283				12,206						12,283				12,283
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2022 exchange rate of NT $29.71 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 Six-Month Period Ended
	June 30, 2022						June 30, 2022
	US$		NT$		%		US$		NT$		%
Operating revenues	2,425		72,055		100.0%		4,560		135,478		100.0%
Operating costs	(1,298)		(38,583)		(53.5%)		(2,508)		(74,501)		(55.0%)
Gross profit	1,127		33,472		46.5%		2,052		60,977		45.0%
Operating expenses
- Sales and marketing expenses	(31)		(915)		(1.3%)		(73)		(2,170)		(1.6%)
- General and administrative expenses	(87)		(2,579)		(3.5%)		(162)		(4,806)		(3.5%)
- Research and development expenses	(108)		(3,209)		(4.5%)		(210)		(6,242)		(4.6%)
- Expected credit impairment loss	(0)		(3)		(0.0%)		(0)		(2)		(0.0%)
Subtotal	(226)		(6,706)		(9.3%)		(445)		(13,220)		(9.7%)
Net other operating income and expenses	47		1,398		1.9%		93		2,741		2.0%
Operating income	948		28,164		39.1%		1,700		50,498		37.3%
Net non-operating income and expenses	(87)		(2,586)		(3.6%)		(43)		(1,273)		(1.0%)
Income from continuing operations
before income tax	861		25,578		35.5%		1,657		49,225		36.3%
Income tax expense	(138)		(4,088)		(5.7%)		(258)		(7,669)		(5.6%)
Net income	723		21,490		29.8%		1,399		41,556		30.7%
Other comprehensive income (loss)	(126)		(3,749)		(5.2%)		(79)		(2,327)		(1.7%)
Total comprehensive income (loss)	597		17,741		24.6%		1,320		39,229		29.0%
Net income attributable to:
Shareholders of the parent	718		21,327		29.6%		1,385		41,134		30.4%
Non-controlling interests	5		163		0.2%		14		422		0.3%
Comprehensive income (loss) attributable to:
Shareholders of the parent	592		17,578		24.4%		1,306		38,807		28.7%
Non-controlling interests	5		163		0.2%		14		422		0.3%
Earnings per share-basic	0.059		1.74				0.113		3.35
Earnings per ADS (2)	0.293		8.70				0.564		16.75
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 June 30, 2022 exchange rate of NT $29.71 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statement of Cash Flows
For The Six-Month Period Ended June 30, 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	1,657		49,225
Depreciation & Amortization	757		22,497
Share of loss of associates and joint ventures	131		3,885
Income tax paid	(124)		(3,682)
Changes in working capital & others	(226)		(6,716)
Net cash provided by operating activities	2,195		65,209
Cash flows from investing activities :
Decrease in financial assets measured at amortized cost	889		26,418
Acquisition of property, plant and equipment	(731)		(21,710)
Acquisition of intangible assets	(42)		(1,236)
Others	(14)		(436)
Net cash provided by investing activities	102		3,036
Cash flows from financing activities :
Decrease in short-term loans	(45)		(1,349)
Redemption of bonds	(328)		(9,733)
Proceeds from long-term loans	24		710
Repayments of long-term loans	(390)		(11,588)
Others	19		578
Net cash used in financing activities	(720)		(21,382)
Effect of exchange rate changes on cash and cash equivalents	143		4,238
Net increase in cash and cash equivalents	1,720		51,101
Cash and cash equivalents at beginning of period	4,464		132,622
Cash and cash equivalents at end of period	6,184		183,723
Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2022 exchange rate of NT $29.71 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 June 30, 2022, the three-month period ending March 31, 2022, and the equivalent three-month period that ended June 30, 2021. For all 2Q22 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the June 30, 2022 exchange rate of NT$ 29.71 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/20220727005418/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 Q2 2022 financial results?

UMC reported revenue of NT$72.06 billion, gross margin of 46.5%, and net income of NT$21.33 billion.

How did UMC's revenue change compared to last year?

Revenue grew 41.5% YoY from NT$50.91 billion in Q2 2021.

What is the outlook for UMC in the third quarter of 2022?

UMC expects stable business despite potential short-term demand fluctuations in consumer electronics.

What percentage of UMC's revenue comes from 22/28nm technologies?

Revenue from the 22/28nm portfolio represents 22% of overall wafer revenue.

How has UMC addressed sustainability targets?

UMC became the first semiconductor foundry to have emissions reduction targets validated by the Science Based Targets initiative.