UMC Reports Second Quarter 2023 Results

Company’s differentiating specialty technologies accounted for 59% of Q2 revenue

Solid 22/28nm business momentum lifted contribution to 29%

Second Quarter 2023 Overview¹:

• Revenue: NT$56.30 billion (US$1.81 billion)
• Gross margin: 36.0%; Operating margin: 27.8%
• Revenue from 22/28nm: 29%
• Capacity utilization rate: 71%
• Net income attributable to shareholders of the parent: NT$15.64 billion (US$502 million)
• Earnings per share: NT$1.27; earnings per ADS: US$0.204

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 2023.

Second quarter consolidated revenue was NT$56.30 billion, increasing 3.8% QoQ from NT$54.21 billion in 1Q23. Compared to a year ago, 2Q23 revenue declined 21.9% YoY from NT$72.06 billion in 2Q22. Consolidated gross margin for 2Q23 was 36.0%. Net income attributable to the shareholders of the parent was NT$15.64 billion, with earnings per ordinary share of NT$1.27.

Jason Wang, co-president of UMC, said, “For the second quarter, we reported results in line with guidance, with wafer shipments remaining flat from the previous quarter and utilization rate of 71%. Second-quarter revenue grew 3.8% QoQ, mainly due to improved product mix within our 12-inch portfolio. Revenue from 22/28nm products continued to increase sequentially, representing 29% of second-quarter sales, while contribution from specialty technologies reached 59%. By segment, we saw short-term demand recovery in the consumer space for WiFi, digital TV, and display driver ICs, while demand for computer-related products also moderately rebounded from the previous quarter. We are pleased to share that we have completed the transaction to acquire remaining shares in USCXM, our 12-inch fab in Xiamen, China. As one of UMC’s four 12-inch fabs in geographically diverse locations, USCXM will continue to provide high-quality fabrication services to customers and increase its contribution to UMC’s financial performance as a wholly-owned subsidiary.”

Co-president Wang said: “Looking into the third quarter, wafer demand outlook is uncertain given prolonged inventory correction in the supply chain. While we saw spots of limited recovery in the second quarter, overall end market sentiment remains weak and we expect customers to continue stringent inventory management in the near term. Despite a weaker-than-expected environment going into the second half, we believe our 22/28nm business will remain resilient due to our strong position in leading edge specialty technologies such as embedded high voltage. In addition, we are gearing up to offer the necessary silicon interposer technology and capacity to fulfill emerging AI market demand from customers.”

“UMC continues to enhance communication of its corporate sustainability efforts to stakeholders. This month, UMC issued its first Climate Action Report, which follows the Task Force on Climate-Related Financial Disclosures (TCFD) framework, providing a detailed overview of how UMC is responding to climate change. In addition, UMC was ranked in the top 5% of listed firms in Taiwan Stock Exchange’s 2022 Corporate Governance Evaluation for the ninth consecutive year, demonstrating the company’s commitment to delivering long-term shareholder value and adhering to sustainable business practices,” Co-president Wang added.

Summary of Operating Results

Operating Results
(Amount: NT$ million)		2Q23			1Q23			QoQ % change			2Q22			YoY % change
Operating Revenues		56,296			54,209			3.8			72,055			(21.9	)
Gross Profit		20,252			19,224			5.3			33,472			(39.5	)
Operating Expenses		(5,718	)		(5,780	)		(1.1	)		(6,706	)		(14.7	)
Net Other Operating Income and Expenses		1,141			1,037			10.0			1,398			(18.4	)
Operating Income		15,675			14,481			8.2			28,164			(44.3	)
Net Non-Operating Income and Expenses		2,810			4,647			(39.5	)		(2,586	)		-
Net Income Attributable to Shareholders of the Parent		15,641			16,183			(3.3	)		21,327			(26.7	)
EPS (NT$ per share)		1.27			1.31						1.74
(US$ per ADS)		0.204			0.210						0.279

Second quarter operating revenues increased by 3.8% sequentially to NT$56.30 billion as a better product mix from wafer shipments and a favorable foreign exchange rate slightly improved financial results amid continuing semiconductor inventory correction. Revenue contribution from 40nm and below technologies remained unchanged at 41% of wafer revenue. Gross profit grew 5.3% QoQ to NT$20.25 billion, or 36.0% of revenue. Operating expenses declined 1.1% QoQ to NT$5.72 billion. Net other operating income increased to NT$1.14 billion. Net non-operating income totaled NT$2.81 billion mainly reflecting the mark to market securities. Net income attributable to shareholders of the parent amounted to NT$15.64 billion.

Earnings per ordinary share for the quarter was NT$1.27. Earnings per ADS was US$0.204. The basic weighted average number of shares outstanding in 2Q23 was 12,348,986,144, compared with 12,348,880,384 shares in 1Q23 and 12,283,479,334 shares in 2Q22. The diluted weighted average number of shares outstanding was 12,526,182,161 in 2Q23, compared with 12,597,236,266 shares in 1Q23 and 12,553,373,552 shares in 2Q22. The fully diluted shares counted on June 30, 2023 were approximately 12,526,495,000.

Detailed Financials Section

Operating revenues grew slightly to NT$56.30 billion. COGS increased 3.0% to NT$36.04 billion. Gross profit grew 5.3% QoQ to NT$20.25 billion partly due to a better product mix. Operating expenses declined to NT$5.72 billion, as Sales & Marketing and G&A fell 24.6% and 18.4% respectively, while R&D increased 19.9% sequentially to NT$3.32 billion, representing 5.9% of revenue. Net other operating income was NT$1.14 billion. In 2Q23, operating income increased 8.2% QoQ to NT$15.68 billion.

COGS & Expenses
(Amount: NT$ million)	2Q23			1Q23			QoQ % change			2Q22			YoY % change
Operating Revenues	56,296			54,209			3.8			72,055			(21.9	)
COGS	(36,044	)		(34,985	)		3.0			(38,583	)		(6.6	)
Depreciation	(8,467	)		(8,439	)		0.3			(9,616	)		(11.9	)
Other Mfg. Costs	(27,577	)		(26,546	)		3.9			(28,967	)		(4.8	)
Gross Profit	20,252			19,224			5.3			33,472			(39.5	)
Gross Margin (%)	36.0	%		35.5	%					46.5	%
Operating Expenses	(5,718	)		(5,780	)		(1.1	)		(6,706	)		(14.7	)
G&A	(1,715	)		(2,102	)		(18.4	)		(2,579	)		(33.5	)
Sales & Marketing	(716	)		(950	)		(24.6	)		(915	)		(21.7	)
R&D	(3,317	)		(2,767	)		19.9			(3,209	)		3.4
Expected Credit Impairment gain (loss)	30			39			(21.6	)		(3	)		-
Net Other Operating Income & Expenses	1,141			1,037			10.0			1,398			(18.4	)
Operating Income	15,675			14,481			8.2			28,164			(44.3	)

Net non-operating income in 2Q23 was NT$2.81 billion, primarily reflecting the NT$1.04 billion in net investment gain, the NT$0.97 billion in net interest income and the NT$0.80 billion in exchange gain.

Non-Operating Income and Expenses
(Amount: NT$ million)		2Q23			1Q23			2Q22
Non-Operating Income and Expenses		2,810			4,647			(2,586	)
Net Interest Income and Expenses		974			908			(163	)
Net Investment Gain and Loss		1,042			3,987			(3,675	)
Exchange Gain and Loss		799			(239	)		1,361
Other Gain and Loss		(5	)		(9	)		(109	)

In 2Q23, cash inflow from operating activities was NT$13.76 billion. Cash outflow from investing activities amounted to NT$23.67 billion, which included NT$24.99 billion in capital expenditure, resulting in free cash outflow of NT$11.23 billion. Cash inflow from financing was NT$1.06 billion, primarily from a NT$0.94 billion in bank loans and a NT$0.29 billion in the increase in deposits-in. Net cash outflow in 2Q23 totaled NT$8.74 billion. Over the next 12 months, the company expects to repay NT$1.13 billion in bank loans.

Cash Flow Summary
(Amount: NT$ million)	For the 3-Month Period Ended Jun. 30, 2023		For the 3-Month Period Ended Mar. 31, 2023
Cash Flow from Operating Activities	13,760		26,964
Net income before tax	18,485		19,128
Depreciation & Amortization	9,931		9,903
Share of profit of associates and joint ventures	(726	)	(3,248	)
Income tax paid	(11,845	)	(2,936	)
Changes in working capital & others	(2,085	)	4,117
Cash Flow from Investing Activities	(23,667	)	(29,586	)
Decrease in financial assets measured at amortized cost	60		598
Acquisition of PP&E	(24,139	)	(29,756	)
Acquisition of intangible assets	(684	)	(528	)
Others	1,096		100
Cash Flow from Financing Activities	1,061		1,347
Bank loans	939		(485	)
Increase in deposits-in	287		1,991
Others	(165	)	(159	)
Effect of Exchange Rate	109		(710	)
Net Cash Flow	(8,737	)	(1,985	)
Beginning balance	171,834		173,819
Ending balance	163,097		171,834

Cash and cash equivalents slightly decreased to NT$163.10 billion. Days of inventory increased by 2 days to 85 days.

Current Assets
(Amount: NT$ billion)		2Q23		1Q23		2Q22
Cash and Cash Equivalents		163.10		171.83		183.72
Accounts Receivable		30.62		27.07		42.88
Days Sales Outstanding		47		54		51
Inventories, net		34.55		32.68		27.34
Days of Inventory		85		83		62
Total Current Assets		239.03		241.97		265.78

Current liabilities increased to NT$142.98 billion partly due to the NT$45.02 in dividends payable. Long-term credit/bonds decreased to NT$36.06 billion. Total liabilities increased to NT$226.31 billion, leading to a debt to equity ratio of 69%.

Liabilities
(Amount: NT$ billion)		2Q23		1Q23		2Q22
Total Current Liabilities		142.98		105.89		131.81
Accounts Payable		8.83		9.21		9.95
Short-Term Credit / Bonds		11.59		9.77		13.22
Payables on Equipment		13.01		18.44		11.60
Dividends Payable		45.02		-		-
Other		64.53		68.47		97.04
Long-Term Credit / Bonds		36.06		37.30		45.70
Long-Term Investment Liabilities		-		4.26		8.50
Total Liabilities		226.31		194.08		216.51
Debt to Equity		69%		55%		76%

Analysis of Revenue²

Revenue from Asia-Pacific grew to 56% while business from North America declined to 27% of sales. Business from Europe increased to 12% while contribution from Japan was 5%.

Revenue Breakdown by Region
Region		2Q23		1Q23		4Q22		3Q22		2Q22
North America		27%		31%		30%		23%		22%
Asia Pacific		56%		50%		54%		62%		65%
Europe		12%		11%		9%		9%		8%
Japan		5%		8%		7%		6%		5%

Revenue contribution from 22/28nm increased to 29% of the wafer revenue, while 40nm contribution was 12% of sales.

Revenue Breakdown by Geometry
Geometry		2Q23		1Q23		4Q22		3Q22		2Q22
14nm and below		0%		0%		0%		0%		0%
14nm<x<=28nm		29%		26%		28%		25%		22%
28nm<x<=40nm		12%		15%		17%		17%		18%
40nm<x<=65nm		23%		19%		17%		18%		19%
65nm<x<=90nm		10%		10%		9%		8%		7%
90nm<x<=0.13um		10%		12%		12%		12%		12%
0.13um<x<=0.18um		9%		10%		10%		10%		12%
0.18um<x<=0.35um		5%		6%		5%		8%		8%
0.5um and above		2%		2%		2%		2%		2%

Revenue from fabless customers accounted for 79% of revenue.

Revenue Breakdown by Customer Type
Customer Type		2Q23		1Q23		4Q22		3Q22		2Q22
Fabless		79%		77%		81%		83%		86%
IDM		21%		23%		19%		17%		14%

Revenue from the communication segment remained at 44%, while business from computer applications stayed unchanged at 9%. Business from consumer applications was 26% as other segments accounted for 21% of revenue.

Revenue Breakdown by Application (1)
Application		2Q23		1Q23		4Q22		3Q22		2Q22
Computer		9%		9%		12%		14%		16%
Communication		44%		44%		45%		45%		45%
Consumer		26%		24%		25%		27%		27%
Others		21%		23%		18%		14%		12%

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 slightly in 2Q23.

(To view blended ASP trend, please click here for 2Q23 ASP)

Shipment and Utilization Rate³

Wafer shipments remained flat QoQ at 1,831K in the second quarter, while quarterly capacity was 2,626K. Overall utilization rate in 2Q23 was 71%.

Wafer Shipments
		2Q23		1Q23		4Q22		3Q22		2Q22
Wafer Shipments (8” K equivalents)		1,831		1,826		2,213		2,597		2,622

Quarterly Capacity Utilization Rate
		2Q23		1Q23		4Q22		3Q22		2Q22
Utilization Rate		71%		70%		90%		100%+		100%+
Total Capacity (8” K equivalents)		2,626		2,522		2,543		2,539		2,528

Capacity⁴

Total capacity in the second quarter increased to 2,626K 8-inch equivalent wafers. Capacity will grow in the third quarter of 2023 to 2,659K 8-inch equivalent wafers, primarily reflecting the 22/28nm capacity expansion at Fab 12A Phase 6.

Annual Capacity in thousands of wafers												Quarterly Capacity in thousands of wafers
FAB		Geometry (um)	2022		2021		2020		2019			FAB		3Q23E		2Q23		1Q23		4Q22
WTK	6"	5 – 0.15	335		329		371		370			WTK	6"	83		82		80		85
8A	8"	3 – 0.11	765		755		802		825			8A	8"	207		207		189		192
8C	8"	0.35 – 0.11	459		459		452		436			8C	8"	120		120		113		115
8D	8"	0.18 – 0.09	410		380		371		359			8D	8"	111		109		101		103
8E	8"	0.6 – 0.14	469		457		449		426			8E	8"	122		122		116		118
8F	8"	0.18 – 0.11	550		514		485		434			8F	8"	145		145		136		138
8S	8"	0.18 – 0.11	443		408		373		372			8S	8"	112		112		109		111
8N	8"	0.5 – 0.11	952		917		917		831			8N	8"	250		248		244		245
12A	12"	0.13 – 0.014	1,170		1,070		1,044		997			12A	12"	333		321		305		301
12i	12"	0.13 – 0.040	655		641		628		595			12i	12"	164		164		162		164
12X	12"	0.080 – 0.022	314		284		217		203			12X	12"	80		80		78		80
12M	12"	0.13 – 0.040	436		395		391		98			12M	12"	110		110		108		110
Total(1)			10,031		9,453		9,188		8,148			Total		2,659		2,626		2,522		2,543
YoY Growth Rate			6	%	3	%	13	%	6	%

⁽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 2Q23 totaled US$0.82 billion. 2023 cash-based CAPEX budget will be US$3.0 billion.

Capital Expenditure by Year - in US$ billion
Year		2022		2021		2020		2019		2018
CAPEX	$	2.7	$	1.8	$	1.0	$	0.6	$	0.7

2023 CAPEX Plan
8"			12"			Total
10	%		90	%		US$3.0 billion

Third Quarter 2023 Outlook & Guidance

Quarter-over-Quarter Guidance:

• Wafer Shipments: Will decline by approximately 3-4%
• ASP in USD: Will increase by 2%
• Gross Profit Margin: Rising costs will erode GM by low-single digit percentage point
• Capacity Utilization: mid-60% range
• 2023 CAPEX: US$3.0 billion

Recent Developments / Announcements

Apr. 27, 2023		UMC Files Form 20-F for 2022 with US Securities and Exchange Commission
Apr. 28, 2023		UMC Among Highest Ranked in Corporate Governance Evaluation for 9th Consecutive Year
May 3, 2023		UMC Announces 40nm RFSOI Platform to Accelerate 5G mmWave Applications
May 10, 2023		DENSO and USJC Announce Mass Production Shipment of Automotive IGBT, Targeting Expanding Electric Vehicle Market
May 31, 2023		UMC Shareholders Approve NT$3.60 Cash Dividend at Annual Shareholders’ Meeting
Jul. 21, 2023		UMC Wins HR Asia 2023 Best Companies to Work for in Asia Award

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

Conference Call / Webcast Announcement

Wednesday, July 26, 2023

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 185 4007
USA Toll Free:		+1 866 212 5567
Other Areas:		+886 2 3396 1191
Access Code:		9509526#

A live webcast and replay of the 2Q23 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 and BCD. UMC has total 12 fabs in production with combined capacity of more than 850,000 8-inch equivalent wafers per month, and all of them are certified with IATF 16949 automotive quality standard. Most of UMC's 12-inch and 8-inch fabs with its core R&D are located in Taiwan, with additional ones throughout Asia. UMC is headquartered in Hsinchu, Taiwan, plus local offices in China, United States, Europe, Japan, Korea and Singapore, with worldwide total 20,000 employees. For more information, please visit: https://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 2023; 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 “Third Quarter of 2023 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, 2023
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
	June 30, 2023
	US$		NT$		%
Assets
Current assets
Cash and cash equivalents	5,239		163,097		29.5	%
Accounts receivable, net	984		30,618		5.5	%
Inventories, net	1,110		34,553		6.3	%
Other current assets	346		10,765		1.9	%
Total current assets	7,679		239,033		43.2	%
Non-current assets
Funds and investments	2,263		70,455		12.7	%
Property, plant and equipment	6,380		198,618		35.9	%
Right-of-use assets	234		7,287		1.3	%
Other non-current assets	1,215		37,803		6.9	%
Total non-current assets	10,092		314,163		56.8	%
Total assets	17,771		553,196		100.0	%
Liabilities
Current liabilities
Short-term loans	5		170		0.0	%
Payables	1,839		57,254		10.4	%
Dividends payable	1,446		45,017		8.1	%
Current portion of long-term liabilities	367		11,422		2.1	%
Other current liabilities	936		29,115		5.2	%
Total current liabilities	4,593		142,978		25.8	%
Non-current liabilities
Bonds payable	578		17,988		3.2	%
Long-term loans	581		18,074		3.3	%
Lease liabilities, noncurrent	162		5,038		0.9	%
Other non-current liabilities	1,356		42,230		7.7	%
Total non-current liabilities	2,677		83,330		15.1	%
Total liabilities	7,270		226,308		40.9	%
Equity
Equity attributable to the parent company
Capital	4,016		125,031		22.6	%
Additional paid-in capital	439		13,656		2.5	%
Retained earnings and other components of equity	6,035		187,858		33.9	%
Total equity attributable to the parent company	10,490		326,545		59.0	%
Non-controlling interests	11		343		0.1	%
Total equity	10,501		326,888		59.1	%
Total liabilities and equity	17,771		553,196		100.0	%
Note：New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2023 exchange rate of NT $31.13 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, 2023						June 30, 2022						Chg.			June 30, 2023						March 31, 2023						Chg.
	US$			NT$			US$			NT$			%			US$			NT$			US$			NT$			%
Operating revenues	1,808			56,296			2,315			72,055			(21.9	%)		1,808			56,296			1,741			54,209			3.8	%
Operating costs	(1,157	)		(36,044	)		(1,240	)		(38,583	)		(6.6	%)		(1,157	)		(36,044	)		(1,123	)		(34,985	)		3.0	%
Gross profit	651			20,252			1,075			33,472			(39.5	%)		651			20,252			618			19,224			5.3	%
	36.0	%		36.0	%		46.5	%		46.5	%					36.0	%		36.0	%		35.5	%		35.5	%
Operating expenses
- Sales and marketing expenses	(23	)		(716	)		(29	)		(915	)		(21.7	%)		(23	)		(716	)		(31	)		(950	)		(24.6	%)
- General and administrative expenses	(55	)		(1,715	)		(83	)		(2,579	)		(33.5	%)		(55	)		(1,715	)		(67	)		(2,102	)		(18.4	%)
- Research and development expenses	(107	)		(3,317	)		(103	)		(3,209	)		3.4	%		(107	)		(3,317	)		(89	)		(2,767	)		19.9	%
- Expected credit impairment gain (loss)	1			30			(0	)		(3	)		-			1			30			1			39			(21.6	%)
Subtotal	(184	)		(5,718	)		(215	)		(6,706	)		(14.7	%)		(184	)		(5,718	)		(186	)		(5,780	)		(1.1	%)
Net other operating income and expenses	37			1,141			45			1,398			(18.4	%)		37			1,141			33			1,037			10.0	%
Operating income	504			15,675			905			28,164			(44.3	%)		504			15,675			465			14,481			8.2	%
	27.8	%		27.8	%		39.1	%		39.1	%					27.8	%		27.8	%		26.7	%		26.7	%
Net non-operating income and expenses	90			2,810			(83	)		(2,586	)		-			90			2,810			149			4,647			(39.5	%)
Income from continuing operations    before income tax	594			18,485			822			25,578			(27.7	%)		594			18,485			614			19,128			(3.4	%)
	32.8	%		32.8	%		35.5	%		35.5	%					32.8	%		32.8	%		35.3	%		35.3	%
Income tax expense	(83	)		(2,588	)		(132	)		(4,088	)		(36.7	%)		(83	)		(2,588	)		(88	)		(2,743	)		(5.7	%)
Net income	511			15,897			690			21,490			(26.0	%)		511			15,897			526			16,385			(3.0	%)
	28.2	%		28.2	%		29.8	%		29.8	%					28.2	%		28.2	%		30.2	%		30.2	%
Other comprehensive income (loss)	(8	)		(238	)		(120	)		(3,749	)		(93.7	%)		(8	)		(238	)		107			3,325			-
Total comprehensive income (loss)	503			15,659			570			17,741			(11.7	%)		503			15,659			633			19,710			(20.6	%)
Net income attributable to:
Shareholders of the parent	502			15,641			685			21,327			(26.7	%)		502			15,641			520			16,183			(3.3	%)
Non-controlling interests	9			256			5			163			56.3	%		9			256			6			202			26.9	%
Comprehensive income (loss) attributable to:
Shareholders of the parent	495			15,403			565			17,578			(12.4	%)		495			15,403			627			19,508			(21.0	%)
Non-controlling interests	8			256			5			163			56.3	%		8			256			6			202			26.9	%
Earnings per share-basic	0.041			1.27			0.056			1.74						0.041			1.27			0.042			1.31
Earnings per ADS (2)	0.204			6.35			0.279			8.70						0.204			6.35			0.210			6.55
Weighted average number of shares
outstanding (in millions)				12,349						12,283									12,349						12,349
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2023 exchange rate of NT $31.13 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, 2023									June 30, 2023
	US$			NT$			%			US$			NT$			%
Operating revenues	1,808			56,296			100.0	%		3,550			110,506			100.0	%
Operating costs	(1,157	)		(36,044	)		(64.0	%)		(2,282	)		(71,029	)		(64.3	%)
Gross profit	651			20,252			36.0	%		1,268			39,477			35.7	%
Operating expenses
- Sales and marketing expenses	(23	)		(716	)		(1.3	%)		(54	)		(1,667	)		(1.5	%)
- General and administrative expenses	(55	)		(1,715	)		(3.1	%)		(122	)		(3,817	)		(3.5	%)
- Research and development expenses	(107	)		(3,317	)		(5.9	%)		(195	)		(6,084	)		(5.5	%)
- Expected credit impairment gain	1			30			0.1	%		2			69			0.1	%
Subtotal	(184	)		(5,718	)		(10.2	%)		(369	)		(11,499	)		(10.4	%)
Net other operating income and expenses	37			1,141			2.0	%		70			2,177			2.0	%
Operating income	504			15,675			27.8	%		969			30,155			27.3	%
Net non-operating income and expenses	90			2,810			5.0	%		239			7,459			6.7	%
Income from continuing operations    before income tax	594			18,485			32.8	%		1,208			37,614			34.0	%
Income tax expense	(83	)		(2,588	)		(4.6	%)		(171	)		(5,333	)		(4.8	%)
Net income	511			15,897			28.2	%		1,037			32,281			29.2	%
Other comprehensive income (loss)	(8	)		(238	)		(0.4	%)		99			3,088			2.8	%
Total comprehensive income (loss)	503			15,659			27.8	%		1,136			35,369			32.0	%
Net income attributable to:
Shareholders of the parent	502			15,641			27.8	%		1,022			31,824			28.8	%
Non-controlling interests	9			256			0.4	%		15			457			0.4	%
Comprehensive income (loss) attributable to:
Shareholders of the parent	495			15,403			27.4	%		1,121			34,911			31.6	%
Non-controlling interests	8			256			0.4	%		15			458			0.4	%
Earnings per share-basic	0.041			1.27						0.083			2.58
Earnings per ADS (2)	0.204			6.35						0.414			12.90
Weighted average number of shares    outstanding (in millions)				12,349									12,349
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2023 exchange rate of NT $31.13 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, 2023
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
	US$			NT$
Cash flows from operating activities :
Net income before tax	1,208			37,614
Depreciation & Amortization	637			19,834
Share of profit of associates and joint ventures	(128	)		(3,974	)
Income tax paid	(475	)		(14,781	)
Changes in working capital & others	66			2,031
Net cash provided by operating activities	1,308			40,724
Cash flows from investing activities :
Decrease in financial assets measured at amortized cost	21			658
Acquisition of property, plant and equipment	(1,731	)		(53,895	)
Acquisition of intangible assets	(39	)		(1,212	)
Others	38			1,196
Net cash used in investing activities	(1,711	)		(53,253	)
Cash flows from financing activities :
Increase in short-term loans	5			170
Proceeds from long-term loans	130			4,050
Repayments of long-term loans	(121	)		(3,766	)
Increase in guarantee deposits	73			2,278
Others	(10	)		(324	)
Net cash provided by financing activities	77			2,408
Effect of exchange rate changes on cash and cash equivalents	(19	)		(601	)
Net decrease in cash and cash equivalents	(345	)		(10,722	)
Cash and cash equivalents at beginning of period	5,584			173,819
Cash and cash equivalents at end of period	5,239			163,097
Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2023 exchange rate of NT $31.13 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, 2023, the three-month period ending March 31, 2023, and the equivalent three-month period that ended June 30, 2022. For all 2Q23 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the June 30, 2023 exchange rate of NT$ 31.13 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/20230726375347/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