UMC Reports Third Quarter 2021 Results

Rhea-AI Summary

United Microelectronics Corporation (NYSE: UMC) reported consolidated revenue of NT$55.91 billion (US$2.01 billion) for Q3 2021, a 9.8% increase QoQ. This marks a 24.6% year-over-year growth. Gross margin stood at 36.8%, with net income attributable to shareholders reaching NT$17.46 billion (US$627 million), or NT$1.43 per share. Capacity utilization exceeded 100%, driven by strong demand across computing and consumer sectors. The company is focused on expanding its 22nm and 28nm technology offerings and maintaining strong customer relationships, positioning itself for continued growth in 2022.

Positive

• Revenue increased 9.8% QoQ and 24.6% YoY to NT$55.91 billion.
• Gross margin improved to 36.8%, reflecting higher average selling prices.
• Net income rose 46.2% QoQ to NT$17.46 billion.
• Capacity utilization exceeded 100%, indicating strong demand.
• Strong performance in 22nm and 28nm technologies enhances market position.

Negative

• Operating expenses increased by 7.0% QoQ, indicating rising costs.

Strategic focus in 5G, auto, AIoT markets will further strengthen UMC’s global leading specialty foundry position

Third Quarter 2021 Overview¹:

• Revenue: NT$55.91 billion (US$2.01 billion)
• Gross margin: 36.8%; Operating margin: 27.1%
• Revenue from 22/28nm: 19%
• Capacity utilization rate: 100%+
• Net income attributable to shareholders of the parent: NT$17.46 billion (US$627 million)
• Earnings per share: NT$1.43; earnings per ADS: US$0.257

 

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 third quarter of 2021.

Third quarter consolidated revenue was NT$55.91 billion, increasing 9.8% QoQ from NT$50.91 billion in 2Q21. Compared to a year ago, 3Q21 revenue grew 24.6% YoY from NT$44.87 billion in 3Q20. Consolidated gross margin for 3Q21 was 36.8%. Net income attributable to the shareholders of the parent was NT$17.46 billion, with earnings per ordinary share of NT$1.43.

Jason Wang, UMC co-president, said, “In the third quarter, we continued to experience robust chip demand across computing, consumer and communication end segments. Higher 12’’ wafer shipments in the quarter reflected ongoing product mix enhancements and partially contributed to the lift in blended ASP. Overall wafer shipments grew 2.6% QoQ to 2.50 million 8-inch equivalents. Revenue from 28nm technologies continued to rise while business engagements in 22nm have led to a growing number of customers’ tape outs across wireless, display, and IoT markets, further diversifying our product pipeline.”

Co-president Wang continued, “Looking into the fourth quarter, we anticipate wafer shipments and the ASP trend will remain firm. Capacity utilization across 8” and 12” facilities will continue to remain fully loaded, as gross margin continues to exhibit upward momentum, thanks to our team’s efforts in optimizing capacity productivity and product mix. The current business cycle provides an opportune time for UMC to strengthen customer relationships, along with our technology competitiveness and the incremental capacity growth to elevate our market position. Our focus on growing our comprehensive logic and specialty technology portfolio has been welcomed by our customers and we continue to broaden our product range to fulfill their needs. With the P5 & P6 expansion projects underway at our flagship 12A in Tainan, given the strong demand from our customers, we are well positioned to grow and capture additional market share in 2022.”

Co-president Wang added, “In addition, the company continue to make strides towards a greener future. Earlier this month, UMC was honored to receive the Green Chemistry Application and Innovation Award from Taiwan’s Environmental Protection Agency. The award recognizes our efforts to introduce chemical substitutes that minimize impact to the environment and the health of our employees. At our Outstanding Supplier Awards this year, UMC also took the opportunity to reiterate our commitment to achieve net zero carbon emissions by 2050 and to invite suppliers to work with us to build a low carbon supply chain. As a key semiconductor player, UMC understands that we have a responsibility to proactively respond to climate change and to promote sustainable practices in our industry. Together with our upstream and downstream partners, we will continue working towards our net zero carbon emissions target.”

Summary of Operating Results

Operating Results
(Amount: NT$ million)		3Q21		2Q21	QoQ % change		3Q20	YoY % change
Operating Revenues		55,907		50,908	9.8		44,870	24.6
Gross Profit		20,544		15,908	29.1		9,769	110.3
Operating Expenses		(6,636)		(6,201)	7.0		(5,508)	20.5
Net Other Operating Income and Expenses		1,227		1,606	(23.6)		2,872	(57.3)
Operating Income		15,135		11,313	33.8		7,133	112.2
Net Non-Operating Income and Expenses		4,317		1,881	129.5		2,074	108.2
Net Income Attributable to Shareholders of the Parent		17,460		11,943	46.2		9,106	91.7
EPS (NT$ per share)		1.43		0.98			0.75
(US$ per ADS)		0.257		0.176			0.135

Operating revenues in 3Q21 increased 9.8% to NT$55.91 billion which included higher 12” wafer shipments and the optimization in product mix. Revenue contribution from 40nm and below technologies was 37%. Gross profit grew 29.1% QoQ to NT$20.54 billion, or 36.8% of revenue. Operating expenses increased 7.0% to NT$6.64 billion. Net other operating income declined to NT$1.23 billion. Net non-operating income increased to NT$4.32 billion. Net income attributable to shareholders of the parent increased to NT$17.46 billion.

Earnings per ordinary share for the quarter was NT$1.43. Earnings per ADS was US$0.257. The basic weighted average number of outstanding shares in 3Q21 was 12,206,292,756, compared with 12,206,292,756 shares in 2Q21 and 12,107,651,452 shares in 3Q20. The diluted weighted average number of outstanding shares was 12,411,100,649 in 3Q21, compared with 12,382,592,798 shares in 2Q21 and 12,179,561,492 shares in 3Q20. The fully diluted shares counted on September 30, 2021 were approximately 12,427,179,000.

Detailed Financials Section

COGS & Expenses
(Amount: NT$ million)		3Q21		2Q21	QoQ % change		3Q20	YoY % change
Operating Revenues		55,907		50,908	9.8		44,870	24.6
COGS		(35,363)		(35,000)	1.0		(35,101)	0.7
Depreciation		(9,900)		(10,187)	(2.8)		(10,911)	(9.3)
Other Mfg. Costs		(25,463)		(24,813)	2.6		(24,190)	5.3
Gross Profit		20,544		15,908	29.1		9,769	110.3
Gross Margin (%)		36.8%		31.3%			21.8%
Operating Expenses		(6,636)		(6,201)	7.0		(5,508)	20.5
G&A		(2,119)		(1,901)	11.5		(1,614)	31.2
Sales & Marketing		(1,212)		(1,131)	7.2		(1,009)	20.1
R&D		(3,303)		(3,168)	4.3		(3,314)	(0.3)
Expected Credit Impairment Gain (Loss)		(2)		(1)	46.7		429	-
Net Other Operating Income & Expenses		1,227		1,606	(23.6)		2,872	(57.3)
Operating Income		15,135		11,313	33.8		7,133	112.2

Operating revenues increased to NT$55.91 billion. COGS went up 1.0 % QoQ to NT$35.36 billion, as the 2.8% sequential decline in depreciation was offset by the 2.6% increase in other manufacturing costs mainly from higher wafer shipments in 3Q21. Gross profit increased 29.1% QoQ to NT$20.54 billion, reflecting the uptick in overall average selling price across 8” and 12” wafer shipments. Operating expenses increased 7.0% QoQ to NT$6.64 billion, as G&A grew 11.5% sequentially to NT$2.12 billion while Sales & Marketing increased 7.2% QoQ to NT$1.21 billion. R&D increased 4.3% to NT$3.30 billion, representing 5.91% of revenue. Net other operating income was NT$1.23 billion. In 3Q21, operating income grew 33.8% QoQ to NT$15.14 billion.

Non-Operating Income and Expenses
(Amount: NT$ million)		3Q21		2Q21		3Q20
Non-Operating Income and Expenses		4,317		1,881		2,074
Net Interest Income and Expenses		(367)		(310)		(314)
Net Investment Gain and Loss		4,534		2,276		3,944
Exchange Gain and Loss		164		(84)		259
Other Gain and Loss		(14)		(1)		(1,815)

Net non-operating income in 3Q21 was NT$4.32 billion, primarily reflecting NT$4.53 billion in net investment gain and a NT$164 million in exchange gain, offset by a NT$367 million in net interest expense.

Cash Flow Summary
(Amount: NT$ million)	For the 3-Month Period Ended Sep. 30, 2021	For the 3-Month Period Ended Jun. 30, 2021
Cash Flow from Operating Activities	22,125	23,123
Net income before tax	19,452	13,194
Depreciation & Amortization	11,754	11,671
Share of profit of associates and joint ventures	(3,356)	(881)
Income tax paid	(1,365)	(300)
Changes in working capital & others	(4,360)	(561)
Cash Flow from Investing Activities	(23,222)	(18,482)
Acquisition of PP&E	(17,457)	(8,520)
Acquisition of intangible assets	(371)	(835)
Increase in other financial assets	(5,677)	(10,893)
Others	283	1,766
Cash Flow from Financing Activities	(9,694)	13,238
Bank loans	(4,510)	(1,384)
Bonds Issued	11,161	9,600
Redemption of bonds	-	(2,000)
Increase in deposits-in	3,738	7,205
Cash dividends	(19,870)	-
Others	(213)	(183)
Effect of Exchange Rate	(104)	(1,164)
Net Cash Flow	(10,895)	16,715
Beginning balance	124,000	107,285
Ending balance	113,105	124,000

In 3Q21, cash inflow from operating activities was NT$22.13 billion. Cash outflow from investing activities amounted to NT$23.22 billion, which included NT$17.88 billion in capital expenditure, resulting in free cash flow of NT$4.25 billion. Cash outflow from financing activities was NT$9.69 billion, mainly from a NT$19.87 billion in the distribution of cash dividend and a NT$4.51 billion in payment in bank loans, offset by a NT$11.16 billion in bond issuance and a NT$3.74 billion payment as capacity deposit for 12A P6. Net cash outflow in 3Q21 was NT$10.90 billion. Over the next 12 months, the company expects to repay NT$6.75 billion in bank loans.

Current Assets
(Amount: NT$ billion)	3Q21	2Q21	3Q20
Cash and Cash Equivalents	113.11	124.00	98.84
Notes & Accounts Receivable	32.99	30.11	26.96
Days Sales Outstanding	51	53	55
Inventories, net	23.15	22.44	22.86
Days of Inventory	59	58	60
Total Current Assets	211.60	207.83	163.48

Cash and cash equivalents decreased to NT$113.11 billion. Days of inventory increased by a day to 59 days.

Liabilities
(Amount: NT$ billion)	3Q21	2Q21	3Q20
Total Current Liabilities	84.55	85.00	59.15
Notes & Accounts Payable	8.26	8.42	7.70
Short-Term Credit / Bonds	24.26	19.65	16.40
Payables on Equipment	6.72	6.67	7.38
Dividends Payable	-	19.88	-
Other	45.31	30.38	27.67
Long-Term Credit / Bonds	51.09	50.97	49.46
Long-Term Investment Liabilities	8.14	20.61	20.14
Total Liabilities	171.19	181.49	147.33
Debt to Equity	66%	76%	67%

Current liabilities decreased to NT$84.55 billion, which included a NT$24.26 billion in short-term credit/bonds. Long-term credit/bonds increased slightly to NT$51.09 billion. Total liabilities declined to NT$171.19 billion, leading to a debt to equity ratio of 66%.

Analysis of Revenue²

Revenue Breakdown by Region
Region	3Q21	2Q21	1Q21	4Q20	3Q20
North America	22%	22%	23%	29%	30%
Asia Pacific	65%	63%	63%	61%	57%
Europe	7%	8%	8%	5%	6%
Japan	6%	7%	6%	5%	7%

Revenue from Asia-Pacific increased to 65% as business from North America remained at 22% of sales. Business from Europe was 7% while contribution from Japan declined to 6%.

Revenue Breakdown by Geometry
Geometry	3Q21	2Q21	1Q21	4Q20	3Q20
14nm and below	0%	0%	0%	0%	0%
14nm<x<=28nm	19%	20%	20%	18%	14%
28nm<x<=40nm	18%	18%	20%	22%	23%
40nm<x<=65nm	19%	19%	18%	18%	19%
65nm<x<=90nm	8%	9%	8%	8%	10%
90nm<x<=0.13um	12%	11%	11%	11%	11%
0.13um<x<=0.18um	13%	13%	13%	13%	13%
0.18um<x<=0.35um	8%	8%	8%	8%	8%
0.5um and above	3%	2%	2%	2%	2%

Revenue contribution from 22/28nm was 19% of the wafer revenue, while 40nm contribution stayed at 18% of sales.

Revenue Breakdown by Customer Type
Customer Type	3Q21	2Q21	1Q21	4Q20	3Q20
Fabless	86%	84%	86%	87%	88%
IDM	14%	16%	14%	13%	12%

Revenue from fabless customers accounted for 86% of revenue.

Revenue Breakdown by Application (1)
Application	3Q21	2Q21	1Q21	4Q20	3Q20
Computer	17%	17%	16%	16%	13%
Communication	46%	47%	46%	49%	54%
Consumer	27%	26%	27%	25%	24%
Others	10%	10%	11%	10%	9%

Revenue from the communication segment declined to 46%, while business from computer applications remained at 17%. Business from consumer applications increased to 27% as other segments accounted for 10% of revenue.

(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 3Q21.

(To view blended ASP trend, please click here for 3Q21 ASP)

Shipment and Utilization Rate³

Wafer Shipments
	3Q21	2Q21	1Q21	4Q20	3Q20
Wafer Shipments (8” K equivalents)	2,503	2,440	2,372	2,293	2,254
Quarterly Capacity Utilization Rate
	3Q21	2Q21	1Q21	4Q20	3Q20
Utilization Rate	100%+	100%+	100%	99%	97%
Total Capacity (8” K equivalents)	2,383	2,370	2,280	2,311	2,308

In 3Q21, wafer shipments increased 2.6% QoQ to 2,503K, while quarterly capacity grew to 2,383K. Overall utilization rate in 3Q21 exceeded 100%.

Capacity⁴

Total capacity in the third quarter grew by 0.5% QoQ to 2,383K 8-inch equivalent wafers. Capacity is expected to slightly increase in the fourth quarter to 2,419K 8-inch equivalent wafers, mainly reflecting the capacity expansion at Fab 12i, 12M, 12X and 8N.

Annual Capacity in thousands of wafers								Quarterly Capacity in thousands of wafers
FAB		Geometry (um)	2020	2019	2018	2017		FAB	4Q21E	3Q21	2Q21	1Q21
WTK	6"	3.5 – 0.45	371	370	396	422		WTK	81	80	84	84
8A	8"	0.5 – 0.25	802	825	825	825		8A	190	190	190	186
8C	8"	0.35 – 0.11	452	436	383	357		8C	115	115	115	113
8D	8"	0.18 – 0.09	371	359	347	341		8D	95	95	95	94
8E	8"	0.5 – 0.15	449	426	418	418		8E	115	115	115	113
8F	8"	0.18 – 0.11	485	434	431	417		8F	137	137	122	120
8S	8"	0.18 – 0.11	373	372	372	347		8S	102	102	102	101
8N	8"	0.5 – 0.11	917	831	771	753		8N	232	230	230	226
12A	12"	0.13 – 0.014	1044	997	997	970		12A	271	271	271	257
12i	12"	0.13 – 0.040	628	595	555	537		12i	164	160	160	157
12X	12"	0.040 – 0.028	217	203	183	97		12X	78	74	74	59
12M	12"	0.090 – 0.040	391	98	-	-		12M	104	98	98	96
Total(1)			9,188	8,148	7,673	7,304		Total	2,419	2,383	2,370	2,280
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$2.3 billion

CAPEX spending in 3Q21 was US$642 million. Full year 2021 CAPEX is budgeted at US$2.3 billion, which includes the company’s collaborative Fab 12A P6 expansion plan with customers.

Fourth Quarter 2021 Outlook & Guidance

Quarter-over-Quarter Guidance:

• Wafer Shipments: To increase by 1-2%
• ASP in USD: To increase by 1-2%
• Gross Profit Margin: To be in the high-30% range
• Capacity Utilization: 100%
• 2021 CAPEX: US$2.3 billion

Recent Developments / Announcements

Sep 3, 2021		UMC and Chipbond to Establish Strategic Cooperation Through the Exchange of New Share Issuance
Jun 1, 2021		UMC Pledges Net Zero Carbon Emissions by 2050

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

Conference Call / Webcast Announcement

Wednesday, October 27, 2021

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 3Q21 results announcement will be available at www.umc.com under the “Investors / Events” section.

About UMC

UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry. The company provides high quality IC production with a focus on both logic and specialty technologies to serve every major sector of the electronics industry. UMC’s comprehensive technology and manufacturing solutions include logic/RF, embedded high voltage, embedded flash, RFSOI/BCD and IATF-16949 automotive manufacturing certification for all its manufacturing facilities. UMC operates 12 fabs that are strategically located throughout Asia with a maximum capacity of approximately 800,000 8-inch equivalent wafers per month. The company employs approximately 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 third 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 “Third 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 September 30, 2021
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
		September 30, 2021
		US$			NT$			%
Assets
Current assets
Cash and cash equivalents		4,063			113,105			26.4%
Notes & Accounts receivable, net		1,185			32,986			7.7%
Inventories, net		832			23,150			5.4%
Other current assets		1,521			42,363			9.8%
Total current assets		7,601			211,604			49.3%
Non-current assets
Funds and investments		2,256			62,817			14.7%
Property, plant and equipment		4,515			125,702			29.3%
Right-of-use assets		260			7,239			1.7%
Other non-current assets		770			21,431			5.0%
Total non-current assets		7,801			217,189			50.7%
Total assets		15,402			428,793			100.0%
Liabilities
Current liabilities
Short-term loans		77			2,135			0.5%
Payables		1,322			36,800			8.6%
Current portion of long-term liabilities		795			22,128			5.2%
Other current liabilities		843			23,482			5.4%
Total current liabilities		3,037			84,545			19.7%
Non-current liabilities
Bonds payable		721			20,083			4.7%
Long-term loans		1,114			31,006			7.2%
Lease liabilities, noncurrent		166			4,622			1.1%
Other non-current liabilities		1,111			30,933			7.2%
Total non-current liabilities		3,112			86,644			20.2%
Total liabilities		6,149			171,189			39.9%
Equity
Equity attributable to the parent company
Capital		4,462			124,233			29.0%
Additional paid-in capital		1,555			43,293			10.0%
Retained earnings and other components of equity		3,234			90,043			21.0%
Treasury stock		(4)			(120)			(0.0%)
Total equity attributable to the parent company		9,247			257,449			60.0%
Non-controlling interests		6			155			0.1%
Total equity		9,253			257,604			60.1%
Total liabilities and equity		15,402			428,793			100.0%

Note：New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2021 exchange rate of NT $27.84 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
		September 30, 2021						September 30, 2020						Chg.			September 30, 2021						June 30, 2021						Chg.
		US$			NT$			US$			NT$			%			US$			NT$			US$			NT$			%
Operating revenues		2,008			55,907			1,612			44,870			24.6%			2,008			55,907			1,829			50,908			9.8%
Operating costs		(1,270)			(35,363)			(1,261)			(35,101)			0.7%			(1,270)			(35,363)			(1,258)			(35,000)			1.0%
Gross profit		738			20,544			351			9,769			110.3%			738			20,544			571			15,908			29.1%
		36.8%			36.8%			21.8%			21.8%						36.8%			36.8%			31.3%			31.3%
Operating expenses
- Sales and marketing expenses		(44)			(1,212)			(36)			(1,009)			20.1%			(44)			(1,212)			(41)			(1,131)			7.2%
- General and administrative expenses		(75)			(2,119)			(58)			(1,614)			31.2%			(75)			(2,119)			(68)			(1,901)			11.5%
- Research and development expenses		(119)			(3,303)			(119)			(3,314)			(0.3%)			(119)			(3,303)			(114)			(3,168)			4.3%
- Expected credit impairment gain (loss)		(0)			(2)			15			429			-			(0)			(2)			(0)			(1)			46.7%
Subtotal		(238)			(6,636)			(198)			(5,508)			20.5%			(238)			(6,636)			(223)			(6,201)			7.0%
Net other operating income and expenses		44			1,227			103			2,872			(57.3%)			44			1,227			58			1,606			(23.6%)
Operating income		544			15,135			256			7,133			112.2%			544			15,135			406			11,313			33.8%
		27.1%			27.1%			15.9%			15.9%						27.1%			27.1%			22.2%			22.2%
Net non-operating income and expenses		155			4,317			75			2,074			108.2%			155			4,317			68			1,881			129.5%
Income from continuing operations before income tax		699			19,452			331			9,207			111.3%			699			19,452			474			13,194			47.4%
		34.8%			34.8%			20.5%			20.5%						34.8%			34.8%			25.9%			25.9%
Income tax expenses		(76)			(2,100)			(7)			(197)			966.1%			(76)			(2,100)			(48)			(1,327)			58.2%
Net income		623			17,352			324			9,010			92.6%			623			17,352			426			11,867			46.2%
		31.0%			31.0%			20.1%			20.1%						31.0%			31.0%			23.3%			23.3%
Other comprehensive income (loss)		(13)			(370)			50			1,390			-			(13)			(370)			(69)			(1,935)			(80.9%)
Total comprehensive income (loss)		610			16,982			374			10,400			63.3%			610			16,982			357			9,932			71.0%
Net income attributable to:
Shareholders of the parent		627			17,460			327			9,106			91.7%			627			17,460			429			11,943			46.2%
Non-controlling interests		(4)			(108)			(3)			(96)			12.0%			(4)			(108)			(3)			(76)			41.6%
Comprehensive income (loss) attributable to:
Shareholders of the parent		614			17,090			377			10,497			62.8%			614			17,090			359			10,008			70.8%
Non-controlling interests		(4)			(108)			(3)			(97)			12.0%			(4)			(108)			(2)			(76)			41.6%
Earnings per share-basic		0.051			1.43			0.027			0.75						0.051			1.43			0.035			0.98
Earnings per ADS (2)		0.257			7.15			0.135			3.75						0.257			7.15			0.176			4.90
Weighted average number of shares
outstanding (in millions)					12,206						12,108									12,206						12,206

Notes:

(1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2021 exchange rate of NT $27.84 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 Nine-Month Period Ended
		September 30, 2021									September 30, 2021
		US$			NT$			%			US$			NT$			%
Operating revenues		2,008			55,907			100.0%			5,528			153,911			100.0%
Operating costs		(1,270)			(35,363)			(63.2%)			(3,770)			(104,965)			(68.2%)
Gross profit		738			20,544			36.8%			1,758			48,946			31.8%
Operating expenses
- Sales and marketing expenses		(44)			(1,212)			(2.2%)			(123)			(3,432)			(2.2%)
- General and administrative expenses		(75)			(2,119)			(3.8%)			(209)			(5,825)			(3.8%)
- Research and development expenses		(119)			(3,303)			(5.9%)			(342)			(9,521)			(6.2%)
- Expected credit impairment gain (loss)		(0)			(2)			(0.0%)			0			9			0.0%
Subtotal		(238)			(6,636)			(11.9%)			(674)			(18,769)			(12.2%)
Net other operating income and expenses		44			1,227			2.2%			140			3,893			2.5%
Operating income		544			15,135			27.1%			1,224			34,070			22.1%
Net non-operating income and expenses		155			4,317			7.7%			343			9,559			6.3%
Income from continuing operations before income tax		699			19,452			34.8%			1,567			43,629			28.4%
Income tax expense		(76)			(2,100)			(3.8%)			(162)			(4,522)			(3.0%)
Net income		623			17,352			31.0%			1,405			39,107			25.4%
Other comprehensive income (loss)		(13)			(370)			(0.6%)			45			1,251			0.8%
Total comprehensive income (loss)		610			16,982			30.4%			1,450			40,358			26.2%
Net income attributable to:
Shareholders of the parent		627			17,460			31.2%			1,431			39,831			25.9%
Non-controlling interests		(4)			(108)			(0.2%)			(26)			(724)			(0.5%)
Comprehensive income (loss) attributable to:
Shareholders of the parent		614			17,090			30.6%			1,476			41,082			26.7%
Non-controlling interests		(4)			(108)			(0.2%)			(26)			(724)			(0.5%)
Earnings per share-basic		0.051			1.43						0.117			3.26
Earnings per ADS (2)		0.257			7.15						0.585			16.30
Weighted average number of shares outstanding (in millions)					12,206									12,206

Notes:

(1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2021 exchange rate of NT $27.84 per U.S. Dollar.

(2) 1 ADS equals 5 common shares.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statement of Cash Flows
For The Nine-Month Period Ended September 30, 2021
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
		US$			NT$
Cash flows from operating activities :
Net income before tax		1,567			43,629
Depreciation & Amortization		1,266			35,258
Share of profit of associates and joint ventures		(216)			(6,004)
Income tax paid		(62)			(1,715)
Changes in working capital & others		(273)			(7,638)
Net cash provided by operating activities		2,282			63,530
Cash flows from investing activities :
Acquisition of property, plant and equipment		(1,197)			(33,328)
Acquisition of intangible assets		(66)			(1,825)
Increase in other financial assets		(595)			(16,578)
Others		104			2,906
Net cash used in investing activities		(1,754)			(48,825)
Cash flows from financing activities :
Decrease in short-term loans		(314)			(8,750)
Proceeds from bonds issued		746			20,761
Redemption of bonds		(72)			(2,000)
Proceeds from long-term loans		524			14,591
Repayments of long-term loans		(336)			(9,367)
Increase in guarantee deposits		407			11,324
Cash dividends		(714)			(19,870)
Others		(21)			(565)
Net cash provided by financing activities		220			6,124
Effect of exchange rate changes on cash and cash equivalents		(63)			(1,772)
Net increase in cash and cash equivalents		685			19,057
Cash and cash equivalents at beginning of period		3,378			94,048
Cash and cash equivalents at end of period		4,063			113,105

Note: New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2021 exchange rate of NT $27.84 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 September 30, 2021, the three-month period ending June 30, 2021, and the equivalent three-month period that ended September 30, 2020. For all 3Q21 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the September 30, 2021 exchange rate of NT$ 27.84 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/20211027005443/en/

Michael Lin / David Wong

UMC, Investor Relations

+ 886-2-2658-9168, ext. 16900

jinhong_lin@umc.com

david_wong@umc.com

Source: United Microelectronics Corporation

FAQ

What were UMC's revenue and net income for Q3 2021?

UMC reported revenue of NT$55.91 billion and net income of NT$17.46 billion for Q3 2021.

How did UMC's Q3 2021 performance compare to Q2 2021?

Revenue increased by 9.8% and net income rose by 46.2% compared to Q2 2021.

What is UMC's capacity utilization rate for Q3 2021?

UMC's capacity utilization rate exceeded 100% in Q3 2021.

What are UMC's earnings per share for Q3 2021?

Earnings per share for Q3 2021 were NT$1.43.

What is the outlook for UMC in Q4 2021?

UMC anticipates wafer shipments and average selling prices to remain firm in Q4 2021.