UMC Reports Third Quarter 2023 Results

Rhea-AI Summary

UMC reports Q3 2023 operating results with revenue of NT$57.07 billion, a 1.4% increase QoQ. Gross margin is 35.9% and net income is NT$15.97 billion. 22/28nm revenue contribution reaches 32%. UMC expects stable demand in Q4 and plans to enhance revenue from 22/28nm.

Positive

• UMC reports Q3 revenue of NT$57.07 billion, a 1.4% increase QoQ
• Gross margin for Q3 is 35.9%
• Net income for Q3 is NT$15.97 billion
• 22/28nm revenue contribution reaches 32%
• UMC expects stable demand in Q4
• UMC plans to enhance revenue from 22/28nm

Negative

• Revenue declined 24.3% YoY compared to Q3 2022
• Automotive business conditions appear challenging

12A P6 production ramp lifts 22/28nm revenue contribution to 32%

2023 Year to Date EPS totaled NT$3.87

Third Quarter 2023 Overview¹:

• Revenue: NT$57.07 billion (US$1.77 billion)
• Gross margin: 35.9%; Operating margin: 26.8%
• Revenue from 22/28nm: 32%
• Capacity utilization rate: 67%
• Net income attributable to shareholders of the parent: NT$15.97 billion (US$495 million)
• Earnings per share: NT$1.29; earnings per ADS: US$0.200

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 2023.

Third quarter consolidated revenue was NT$57.07 billion, increasing 1.4% QoQ from NT$56.30 billion in 2Q23. Compared to a year ago, 3Q23 revenue declined 24.3% YoY from NT$75.39 billion in 3Q22. Consolidated gross margin for 3Q23 was 35.9%. Net income attributable to the shareholders of the parent was NT$15.97 billion, with earnings per ordinary share of NT$1.29.

Jason Wang, co-president of UMC, said, “During the third quarter, despite a 2.3% decrease in wafer shipments, quarterly revenue and gross margin remained firm QoQ which primarily attributed to the demand strength in computing and communication segments, continuous product mix enhancement as well as favorable currency movement. From end markets perspective, strength in computing applications were propelled by LCD controller, WiFi, codec and touch IC controllers while shipments in communication segments increased due to demand for RF front end IC and networking chips. Looking back at 2023, although foundry industry experienced a significant decline in market demand, UMC maintained solid structural profitability supported by firmness in blended ASP due to continuous product mix optimization efforts and the increasing contribution from specialty technologies. As UMC continues to introduce new specialty technologies to solidify our differentiation, we will strengthen the competitiveness of our customers and enhance their respective market position.”

Co-president Wang said, “For the fourth quarter, with the recent rush orders from PC and smartphones, we expect demand has gradually stabilized. However, customers still employ a cautious and conservative approach in maintaining lean inventory levels while automotive business conditions appear challenging. For 2024, we anticipate the production ramp of our 12A Phase 6 fab will further enhance revenue contribution from 22/28nm continuing the robust business traction for UMC. In addition, through our technology leadership, we will ramp up our offering on 22nm derivative products which will further our specialty technology product pipeline.”

Co-president Wang continued, “Talent is UMC's most important and highly valued asset. We respect the uniqueness of every employee and are committed to creating a diverse, equal, and inclusive workplace environment. Receiving the ‘HR Asia’ award for the ‘Best Employer in Asia’ in July is a recognition of our years of effort. Our goal is to create a culture of diversity and inclusivity in our workplace that enables employees to leverage their strengths, thereby playing a pivotal role in the Company's sustained growth and enduring success.”

Summary of Operating Results

Operating Results
(Amount: NT$ million)		3Q23		2Q23		QoQ % change		3Q22		YoY % change
Operating Revenues		57,069		56,296		1.4		75,392		(24.3)
Gross Profit		20,461		20,252		1.0		35,664		(42.6)
Operating Expenses		(5,722)		(5,718)		0.1		(6,794)		(15.8)
Net Other Operating Income and Expenses		573		1,141		(49.8)		1,287		(55.5)
Operating Income		15,312		15,675		(2.3)		30,157		(49.2)
Net Non-Operating Income and Expenses		3,336		2,810		18.7		2,189		52.5
Net Income Attributable to Shareholders of the Parent		15,971		15,641		2.1		26,996		(40.8)
EPS (NT$ per share)		1.29		1.27				2.19
(US$ per ADS)		0.200		0.197				0.339

Third quarter operating revenues slightly grew by 1.4% sequentially to NT$57.07 billion mainly lifted by a favorable exchange rate and a better product mix from wafer shipments. Revenue contribution from 40nm and below technologies increased to 45% of wafer revenue. Gross profit grew 1.0% QoQ to NT$20.46 billion, or 35.9% of revenue. Operating expenses remained flat QoQ to NT$5.72 billion. Net other operating income declined to NT$573 million. Net non-operating income reached NT$3.34 billion mainly reflecting the mark to market securities. Net income attributable to shareholders of the parent amounted to NT$15.97 billion.

Earnings per ordinary share for the quarter was NT$1.29. Earnings per ADS was US$0.200. The basic weighted average number of shares outstanding in 3Q23 was 12,371,129,866, compared with 12,348,986,144 shares in 2Q23 and 12,305,516,644 shares in 3Q22. The diluted weighted average number of shares outstanding was 12,566,773,628 in 3Q23, compared with 12,526,182,161 shares in 2Q23 and 12,635,661,561 shares in 3Q22. The fully diluted shares counted on September 30, 2023 were approximately 12,609,732,000.

Detailed Financials Section

Operating revenues grew slightly to NT$57.07 billion. COGS increased 1.6% to NT$36.61 billion. Gross profit grew 1.0% QoQ to NT$20.46 billion partly due to a better product mix. Operating expenses remained flat at NT$5.72 billion, as Sales & Marketing and G&A increased 2.7% and 0.9% respectively, while R&D declined 1.9% sequentially to NT$3.26 billion, representing 5.7% of revenue. Net other operating income was NT$573 million. In 3Q23, operating income decreased 2.3% QoQ to NT$15.31 billion.

COGS & Expenses
(Amount: NT$ million)	3Q23		2Q23		QoQ % change		3Q22		YoY % change
Operating Revenues	57,069		56,296		1.4		75,392		(24.3)
COGS	(36,608)		(36,044)		1.6		(39,728)		(7.9)
Depreciation	(8,485)		(8,467)		0.2		(9,622)		(11.8)
Other Mfg. Costs	(28,123)		(27,577)		2.0		(30,106)		(6.6)
Gross Profit	20,461		20,252		1.0		35,664		(42.6)
Gross Margin (%)	35.9%		36.0%				47.3%
Operating Expenses	(5,722)		(5,718)		0.1		(6,794)		(15.8)
Sales & Marketing	(735)		(716)		2.7		(1,061)		(30.7)
G&A	(1,731)		(1,715)		0.9		(2,428)		(28.8)
R&D	(3,255)		(3,317)		(1.9)		(3,304)		(1.5)
Expected Credit Impairment gain (loss)	(1)		30		-		(1)		129.2
Net Other Operating Income & Expenses	573		1,141		(49.8)		1,287		(55.5)
Operating Income	15,312		15,675		(2.3)		30,157		(49.2)

Net non-operating income in 3Q23 increased to NT$3.34 billion, mainly from the NT$1.89 billion in net investment gain, the NT$0.62 billion in net interest income and the NT$0.51 billion in other gain.

Non-Operating Income and Expenses
(Amount: NT$ million)	3Q23		2Q23		3Q22
Non-Operating Income and Expenses	3,336		2,810		2,189
Net Interest Income and Expenses	617		974		139
Net Investment Gain and Loss	1,885		1,042		780
Exchange Gain and Loss	324		799		1,293
Other Gain and Loss	510		(5)		(23)

In 3Q23, cash inflow from operating activities was NT$19.06 billion. Cash outflow from investing activities amounted to NT$17.72 billion, which included NT$17.91 billion in capital expenditure, resulting in free cash inflow of NT$1.15 billion. Cash outflow from financing was NT$27.60 billion, primarily the NT$45.02 billion in cash dividend distribution and the NT$21.21 billion in other financial liabilities offset, the NT$21.37 billion in bank loans, the NT$10.00 billion in bond issuance and the NT$7.43 billion increase in deposits-in. Net cash outflow in 3Q23 totaled NT$22.46 billion. Over the next 12 months, the company expects to repay NT$2.15 billion in bank loans.

Cash Flow Summary
(Amount: NT$ million)	For the 3-Month Period Ended Sep. 30, 2023		For the 3-Month Period Ended Jun. 30, 2023
Cash Flow from Operating Activities	19,059		13,760
Net income before tax	18,648		18,485
Depreciation & Amortization	9,928		9,931
Share of profit of associates and joint ventures	(1,022)		(726)
Income tax paid	(1,216)		(11,845)
Changes in working capital & others	(7,279)		(2,085)
Cash Flow from Investing Activities	(17,720)		(23,667)
Acquisition of PP&E	(17,245)		(24,139)
Acquisition of intangible assets	(560)		(684)
Others	85		1,156
Cash Flow from Financing Activities	(27,602)		1,061
Bank loans	21,369		939
Bonds Issued	10,000		-
Increase in deposits-in	7,425		287
Decrease in other financial liabilities	(21,209)		-
Cash dividends	(45,018)		-
Others	(169)		(165)
Effect of Exchange Rate	3,808		109
Net Cash Flow	(22,455)		(8,737)
Beginning balance	163,097		171,834
Ending balance	140,642		163,097

Cash and cash equivalents decreased to NT$140.64 billion. Days of inventory increased by 4 days to 89 days.

Current Assets
(Amount: NT$ billion)	3Q23		2Q23		3Q22
Cash and Cash Equivalents	140.64		163.10		180.65
Notes & Accounts Receivable	31.11		30.62		44.84
Days Sales Outstanding	49		47		53
Inventories, net	36.56		34.55		30.10
Days of Inventory	89		85		66
Total Current Assets	219.28		239.03		266.95

Current liabilities decreased to NT$92.07 billion. Long-term credit/bonds increased to NT$49.38 billion. Total liabilities declined to NT$197.26 billion, leading to a debt to equity ratio of 56%.

Liabilities
(Amount: NT$ billion)	3Q23		2Q23		3Q22
Total Current Liabilities	92.07		142.98		108.01
Accounts Payable	8.37		8.83		10.04
Short-Term Credit / Bonds	30.07		11.59		12.19
Payables on Equipment	15.95		13.01		19.40
Dividends Payable	-		45.02		-
Other	37.68		64.53		66.38
Long-Term Credit / Bonds	49.38		36.06		46.15
Long-Term Investment Liabilities	-		-		4.26
Total Liabilities	197.26		226.31		204.21
Debt to Equity	56%		69%		65%

Analysis of Revenue²

Revenue from Asia-Pacific grew to 58% while business from North America remain unchanged at 27% of sales. Business from Europe stayed firm at 12% while contribution from Japan decreased to 3%.

Revenue Breakdown by Region
Region		3Q23		2Q23		1Q23		4Q22		3Q22
North America		27%		27%		31%		30%		23%
Asia Pacific		58%		56%		50%		54%		62%
Europe		12%		12%		11%		9%		9%
Japan		3%		5%		8%		7%		6%

Revenue contribution from 22/28nm grew to 32% of the wafer revenue, while 40nm contribution was 13% of sales.

Revenue Breakdown by Geometry
Geometry		3Q23		2Q23		1Q23		4Q22		3Q22
14nm and below		0%		0%		0%		0%		0%
14nm<x<=28nm		32%		29%		26%		28%		25%
28nm<x<=40nm		13%		12%		15%		17%		17%
40nm<x<=65nm		19%		23%		19%		17%		18%
65nm<x<=90nm		8%		10%		10%		9%		8%
90nm<x<=0.13um		12%		10%		12%		12%		12%
0.13um<x<=0.18um		9%		9%		10%		10%		10%
0.18um<x<=0.35um		5%		5%		6%		5%		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		3Q23		2Q23		1Q23		4Q22		3Q22
Fabless		79%		79%		77%		81%		83%
IDM		21%		21%		23%		19%		17%

Revenue from the communication segment accounted for 46%, while business from consumer represented 23%. Business from computing applications grew to 13% as other segments declined to 18% of revenue.

Revenue Breakdown by Application (1)
Application	3Q23		2Q23		1Q23		4Q22		3Q22
Computer	13%		9%		9%		12%		14%
Communication	46%		44%		44%		45%		45%
Consumer	23%		26%		24%		25%		27%
Others	18%		21%		23%		18%		14%

(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 3Q23.

(To view blended ASP trend, please click here for 3Q23 ASP)

Shipment and Utilization Rate³

Wafer shipments declined by 2.3% QoQ to 1,788K in the third quarter, while quarterly capacity was 2,659K. Overall utilization rate in 3Q23 was 67%.

Wafer Shipments
		3Q23		2Q23		1Q23		4Q22		3Q22
Wafer Shipments (8” K equivalents)		1,788		1,831		1,826		2,213		2,597
Quarterly Capacity Utilization Rate
		3Q23		2Q23		1Q23		4Q22		3Q22
Utilization Rate		67%		71%		70%		90%		100%+
Total Capacity (8” K equivalents)		2,659		2,626		2,522		2,543		2,539

Capacity⁴

Total capacity in the third quarter increased to 2,659K 8-inch equivalent wafers. Capacity will grow in the fourth quarter of 2023 to 2,710K 8-inch equivalent wafers, primarily reflecting the 22/28nm capacity expansion at 12A Phase 6.

Annual Capacity in thousands of wafers								Quarterly Capacity in thousands of wafers
FAB		Geometry (um)	2022	2021	2020	2019		FAB		4Q23E	3Q23	2Q23	1Q23
WTK	6"	5 – 0.15	335	329	371	370		WTK	6"	83	83	82	80
8A	8"	3 – 0.11	765	755	802	825		8A	8"	207	207	207	189
8C	8"	0.35 – 0.11	459	459	452	436		8C	8"	119	120	120	113
8D	8"	0.18 – 0.09	410	380	371	359		8D	8"	118	111	109	101
8E	8"	0.6 – 0.14	469	457	449	426		8E	8"	131	122	122	116
8F	8"	0.18 – 0.11	550	514	485	434		8F	8"	145	145	145	136
8S	8"	0.18 – 0.11	443	408	373	372		8S	8"	114	112	112	109
8N	8"	0.5 – 0.11	952	917	917	831		8N	8"	254	250	248	244
12A	12"	0.13 – 0.014	1,170	1,070	1,044	997		12A	12"	346	333	321	305
12i	12"	0.13 – 0.040	655	641	628	595		12i	12"	164	164	164	162
12X	12"	0.080 – 0.022	314	284	217	203		12X	12"	80	80	80	78
12M	12"	0.13 – 0.040	436	395	391	98		12M	12"	110	110	110	108
Total(1)			10,031	9,453	9,188	8,148		Total		2,710	2,659	2,626	2,522
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 3Q23 totaled US$0.57 billion, as total expenditure year to date reached US$2.4 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

Fourth Quarter 2023 Outlook & Guidance

Quarter-over-Quarter Guidance:

• Wafer Shipments: Will decline by approximately 5%
• ASP in USD: Will remain flat
• Gross Profit Margin: Will be in the low-30% range
• Capacity Utilization: low-60% range
• 2023 CAPEX: US$3.0 billion

Recent Developments / Announcements

Aug. 17, 2023

Faraday Announces Infineon’s SONOS eFlash Qualified on UMC’s 40nm ULP Process

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

Conference Call / Webcast Announcement

Wednesday, October 25, 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:		9517025#

A live webcast and replay of the 3Q23 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 third 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 “Fourth 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 September 30, 2023
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
	September 30, 2023
	US$		NT$		%
Assets
Current assets
Cash and cash equivalents	4,360		140,642		25.7%
Notes & Accounts receivable, net	964		31,105		5.7%
Inventories, net	1,133		36,561		6.7%
Other current assets	340		10,972		2.0%
Total current assets	6,797		219,280		40.1%
Non-current assets
Funds and investments	2,197		70,890		13.0%
Property, plant and equipment	6,583		212,367		38.8%
Right-of-use assets	226		7,279		1.3%
Other non-current assets	1,161		37,455		6.8%
Total non-current assets	10,167		327,991		59.9%
Total assets	16,964		547,271		100.0%
Liabilities
Current liabilities
Short-term loans	545		17,590		3.2%
Payables	1,646		53,108		9.7%
Current portion of long-term liabilities	387		12,484		2.3%
Other current liabilities	276		8,888		1.6%
Total current liabilities	2,854		92,070		16.8%
Non-current liabilities
Bonds payable	867		27,977		5.1%
Long-term loans	663		21,403		3.9%
Lease liabilities, noncurrent	155		5,009		0.9%
Other non-current liabilities	1,575		50,796		9.3%
Total non-current liabilities	3,260		105,185		19.2%
Total liabilities	6,114		197,255		36.0%
Equity
Equity attributable to the parent company
Capital	3,876		125,031		22.9%
Additional paid-in capital	416		13,423		2.4%
Retained earnings and other components of equity	6,547		211,223		38.6%
Total equity attributable to the parent company	10,839		349,677		63.9%
Non-controlling interests	11		339		0.1%
Total equity	10,850		350,016		64.0%
Total liabilities and equity	16,964		547,271		100.0%
Note: New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2023 exchange rate of NT $32.26 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, 2023				September 30, 2022				Chg.		September 30, 2023				June 30, 2023				Chg.
	US$		NT$		US$		NT$		%		US$		NT$		US$		NT$		%
Operating revenues	1,769		57,069		2,337		75,392		(24.3%)		1,769		57,069		1,745		56,296		1.4%
Operating costs	(1,135)		(36,608)		(1,231)		(39,728)		(7.9%)		(1,135)		(36,608)		(1,117)		(36,044)		1.6%
Gross profit	634		20,461		1,106		35,664		(42.6%)		634		20,461		628		20,252		1.0%
	35.9%		35.9%		47.3%		47.3%				35.9%		35.9%		36.0%		36.0%
Operating expenses
- Sales and marketing expenses	(23)		(735)		(33)		(1,061)		(30.7%)		(23)		(735)		(22)		(716)		2.7%
- General and administrative expenses	(53)		(1,731)		(76)		(2,428)		(28.8%)		(53)		(1,731)		(53)		(1,715)		0.9%
- Research and development expenses	(101)		(3,255)		(102)		(3,304)		(1.5%)		(101)		(3,255)		(103)		(3,317)		(1.9%)
- Expected credit impairment gain (loss)	(0)		(1)		(0)		(1)		129.2%		(0)		(1)		1		30		-
Subtotal	(177)		(5,722)		(211)		(6,794)		(15.8%)		(177)		(5,722)		(177)		(5,718)		0.1%
Net other operating income and expenses	18		573		40		1,287		(55.5%)		18		573		35		1,141		(49.8%)
Operating income	475		15,312		935		30,157		(49.2%)		475		15,312		486		15,675		(2.3%)
	26.8%		26.8%		40.0%		40.0%				26.8%		26.8%		27.8%		27.8%
Net non-operating income and expenses	103		3,336		68		2,189		52.5%		103		3,336		87		2,810		18.7%
Income from continuing operations
before income tax	578		18,648		1,003		32,346		(42.3%)		578		18,648		573		18,485		0.9%
	32.7%		32.7%		42.9%		42.9%				32.7%		32.7%		32.8%		32.8%
Income tax expense	(83)		(2,682)		(155)		(5,004)		(46.4%)		(83)		(2,682)		(80)		(2,588)		3.6%
Net income	495		15,966		848		27,342		(41.6%)		495		15,966		493		15,897		0.4%
	28.0%		28.0%		36.3%		36.3%				28.0%		28.0%		28.2%		28.2%
Other comprehensive income (loss)	221		7,138		134		4,336		64.6%		221		7,138		(8)		(238)		-
Total comprehensive income (loss)	716		23,104		982		31,678		(27.1%)		716		23,104		485		15,659		47.5%
Net income attributable to:
Shareholders of the parent	495		15,971		837		26,996		(40.8%)		495		15,971		485		15,641		2.1%
Non-controlling interests	(0)		(5)		11		346		-		(0)		(5)		8		256		-
Comprehensive income (loss) attributable to:
Shareholders of the parent	716		23,109		971		31,332		(26.2%)		716		23,109		477		15,403		50.0%
Non-controlling interests	(0)		(5)		11		346		-		(0)		(5)		8		256		-
Earnings per share-basic	0.040		1.29		0.068		2.19				0.040		1.29		0.039		1.27
Earnings per ADS (2)	0.200		6.45		0.339		10.95				0.200		6.45		0.197		6.35
Weighted average number of shares
outstanding (in millions)			12,371				12,306						12,371				12,349
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2023 exchange rate of NT $32.26 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheet
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, 2023						September 30, 2023
	US$		NT$		%		US$		NT$		%
Operating revenues	1,769		57,069		100.0%		5,195		167,575		100.0%
Operating costs	(1,135)		(36,608)		(64.1%)		(3,337)		(107,637)		(64.2%)
Gross profit	634		20,461		35.9%		1,858		59,938		35.8%
Operating expenses
- Sales and marketing expenses	(23)		(735)		(1.3%)		(74)		(2,402)		(1.4%)
- General and administrative expenses	(53)		(1,731)		(3.1%)		(173)		(5,547)		(3.3%)
- Research and development expenses	(101)		(3,255)		(5.7%)		(289)		(9,339)		(5.6%)
- Expected credit impairment gain (loss)	(0)		(1)		(0.0%)		2		67		0.0%
Subtotal	(177)		(5,722)		(10.1%)		(534)		(17,221)		(10.3%)
Net other operating income and expenses	18		573		1.0%		85		2,750		1.6%
Operating income	475		15,312		26.8%		1,409		45,467		27.1%
Net non-operating income and expenses	103		3,336		5.9%		335		10,795		6.5%
Income from continuing operations	578		18,648		32.7%		1,744		56,262		33.6%
before income tax
Income tax expense	(83)		(2,682)		(4.7%)		(248)		(8,015)		(4.8%)
Net income	495		15,966		28.0%		1,496		48,247		28.8%
Other comprehensive income (loss)	221		7,138		12.5%		317		10,225		6.1%
Total comprehensive income (loss)	716		23,104		40.5%		1,813		58,472		34.9%
Net income attributable to:
Shareholders of the parent	495		15,971		28.0%		1,482		47,795		28.5%
Non-controlling interests	(0)		(5)		(0.0%)		14		452		0.3%
Comprehensive income (loss) attributable to:
Shareholders of the parent	716		23,109		40.5%		1,799		58,020		34.6%
Non-controlling interests	(0)		(5)		(0.0%)		14		452		0.3%
Earnings per share-basic	0.040		1.29				0.120		3.87
Earnings per ADS (2)	0.200		6.45				0.600		19.35
Weighted average number of shares
outstanding (in millions)			12,371						12,356
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2023 exchange rate of NT $32.26 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, 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	1,744		56,262
Depreciation & Amortization	923		29,763
Share of profit of associates and joint ventures	(155)		(4,996)
Income tax paid	(496)		(15,997)
Changes in working capital & others	(163)		(5,249)
Net cash provided by operating activities	1,853		59,783
Cash flows from investing activities :
Acquisition of property, plant and equipment	(2,205)		(71,140)
Acquisition of intangible assets	(55)		(1,772)
Others	60		1,939
Net cash used in investing activities	(2,200)		(70,973)
Cash flows from financing activities :
Increase in short-term loans	545		17,590
Proceeds from bonds issued	310		10,000
Proceeds from long-term loans	477		15,382
Repayments of long-term loans	(346)		(11,149)
Increase in guarantee deposits	301		9,703
Decrease in other financial liabilities	(657)		(21,209)
Cash dividends	(1,395)		(45,018)
Others	(16)		(493)
Net cash used in financing activities	(781)		(25,194)
Effect of exchange rate changes on cash and cash equivalents	100		3,207
Net decrease in cash and cash equivalents	(1,028)		(33,177)
Cash and cash equivalents at beginning of period	5,388		173,819
Cash and cash equivalents at end of period	4,360		140,642
Note: New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2023 exchange rate of NT $32.26 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, 2023, the three-month period ending June 30, 2023, and the equivalent three-month period that ended September 30, 2022. For all 3Q23 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the September 30, 2023 exchange rate of NT$ 32.26 per U.S. Dollar.

²Revenue in this section represents wafer sales

³Utilization Rate = Quarterly Wafer Out / Quarterly Capacity

⁴Estimated 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/20231025926162/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 is UMC's Q3 revenue?

UMC's Q3 revenue is NT$57.07 billion, a 1.4% increase QoQ.

What is UMC's gross margin for Q3?

UMC's gross margin for Q3 is 35.9%.

What is UMC's net income for Q3?

UMC's net income for Q3 is NT$15.97 billion.

What is the revenue contribution from 22/28nm?

The revenue contribution from 22/28nm is 32%.

What does UMC expect for Q4?

UMC expects stable demand in Q4.

What is UMC's plan to enhance revenue?

UMC plans to enhance revenue from 22/28nm.