UMC Reports Third Quarter 2024 Results

Rhea-AI Summary

UMC reported Q3 2024 revenue of NT$60.49 billion (US$1.91 billion), up 6.5% QoQ. Net income reached NT$14.47 billion (US$457 million), increasing 5% sequentially. 22/28nm shipments hit record levels, contributing 35% of wafer revenue. Gross margin was 33.8% with capacity utilization at 71%. The company's specialty portfolio reached a record high, accounting for 53.1% of total sales. For Q4 2024, UMC expects wafer shipments to remain flat with utilization in the high-60% range and gross margin close to 30%. The company maintains its 2024 CAPEX budget at US$3.0 billion.

Positive

• Revenue increased 6.5% QoQ to NT$60.49 billion
• Net income grew 5% sequentially to NT$14.47 billion
• 22/28nm revenue contribution reached record 35% of wafer revenue
• Specialty portfolio hit record high at 53.1% of total sales
• Wafer shipments increased 7.8% QoQ to 896K

Negative

• Capacity utilization remained low at 71%
• Gross margin declined from 35.2% to 33.8% QoQ
• Operating income decreased 7.9% YoY
• Q4 guidance indicates gross margin will decline to around 30%
• Net non-operating income decreased 26.1% YoY

Insights

Financial Analyst

UMC delivered solid Q3 results with notable performance in specialty technology. Key highlights include: NT$60.49 billion revenue (+6.5% QoQ), 33.8% gross margin and NT$14.47 billion net income (+5% QoQ). The 71% capacity utilization shows improvement from Q2's 68%.

The 22/28nm node achieved record shipments, contributing 35% of wafer revenue. The specialty portfolio hit an all-time high, accounting for 53.1% of sales. While Q4 guidance suggests flat shipments and ASP, margin pressure is expected with gross margin projected near 30%.

The US$3.0 billion CAPEX commitment for 2024 and ongoing fab expansion in Singapore demonstrate UMC's strategic focus on capacity growth and technology advancement.

Market Research Analyst

The geographic revenue distribution reveals strategic positioning, with Asia-Pacific growing to 65% and North America at 26%. The customer mix shows strong fabless relationships at 85% of revenue, while communication sector growth to 42% indicates robust demand in mobile and connectivity applications.

Inventory levels are improving, with days of inventory decreasing to 85 days from 88 days. The balanced debt-to-equity ratio of 56% and substantial cash position of NT$103.41 billion provide financial flexibility for future investments and market opportunities.

22/28nm shipments reached record high as Q3 net income increased 5% sequentially

Third Quarter 2024 Overview¹:

• Revenue: NT$60.49 billion (US$1.91 billion)
• Gross margin: 33.8%; Operating margin: 23.3%
• Revenue from 22/28nm: 35%
• Capacity utilization rate: 71%
• Net income attributable to shareholders of the parent: NT$14.47 billion (US$457 million)
• Earnings per share: NT$1.16; earnings per ADS: US$0.183

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 2024.

Third quarter consolidated revenue was NT$60.49 billion, increasing 6.5% from NT$56.80 billion in 2Q24. Compared to a year ago, 3Q24 revenue increased 6.0%. Consolidated gross margin for 3Q24 was 33.8%. Net income attributable to the shareholders of the parent was NT$14.47 billion, with earnings per ordinary share of NT$1.16.

Jason Wang, co-president of UMC, said, “In the third quarter, we delivered results that were in line with guidance. In particular, wafer shipments grew more than expected, increasing 7.8% sequentially due to strong demand for 22/28nm products. Our strategy is to develop specialty technology solutions that deliver best-in-class performance, and I am pleased to report that revenue in absolute dollar derived from our specialty portfolio hit a record high in the third quarter, accounting for 53.1% of total sales. In our industry, technology is fundamental. We continue to invest significantly in technology development every year to ensure we are ready to support customers’ next-generation product features with more advanced solutions. For instance, our 22nm display driver solution was the first to be made available to the market and offers unparalleled performance, and we foresee strong tape-out momentum in the upcoming months.”

Co-president Wang commented, “With regards to Q4 outlook, we are seeing demand stabilizing across end markets and a clear downward trend in inventory levels. Looking ahead, we have a number of exciting technology and collaboration projects in the pipeline as we continue to align closely with our customers’ product roadmaps. In addition, as we hear consistently from customers, UMC’s diversified manufacturing footprint is also very important in supporting their long-term strategies. Our new fab expansion in Singapore is nearing completion while our collaboration with Intel remains on track. These projects will further enhance our value proposition to customers and strengthen our position in the foundry industry.”

Co-president Wang added, “We released our 2023 Sustainability Report during the third quarter, which is available on our website for all stakeholders to read. I would like to highlight the progress we have made towards our energy transition goals, with renewable energy use doubling in 2023 from the previous year to account for 11.1% of UMC’s total energy consumption. With a 181-megawatt peak renewable energy purchase agreement coming into effect this year, we are on track to achieving our progressive targets of 25% renewable energy by 2025 and 50% by 2030.”

Summary of Operating Results

Operating Results
(Amount: NT$ million)	3Q24		2Q24		QoQ % change		3Q23		YoY % change
Operating Revenues	60,485		56,799		6.5		57,069		6.0
Gross Profit	20,429		19,983		2.2		20,461		(0.2	)
Operating Expenses	(6,559	)	(6,311	)	3.9		(5,722	)	14.6
Net Other Operating Income and Expenses	230		219		4.8		573		(59.9	)
Operating Income	14,100		13,891		1.5		15,312		(7.9	)
Net Non-Operating Income and Expenses	2,464		2,529		(2.5	)	3,336		(26.1	)
Net Income Attributable to Shareholders of the Parent	14,472		13,786		5.0		15,971		(9.4	)
EPS (NT$ per share)	1.16		1.11				1.29
(US$ per ADS)	0.183		0.175				0.204

Third quarter operating revenues increased 6.5% sequentially to NT$60.49 billion. Revenue contribution from 40nm and below technologies represented 48% of wafer revenue. Gross profit grew 2.2% QoQ to NT$20.43 billion, or 33.8% of revenue. Operating expenses increased 3.9% to NT$6.56 billion. Net other operating income was NT$0.23 billion. Net non-operating income totaled NT$2.46 billion. Net income attributable to shareholders of the parent amounted to NT$14.47 billion.

Earnings per ordinary share for the quarter was NT$1.16. Earnings per ADS was US$0.183. The basic weighted average number of shares outstanding in 3Q24 was 12,436,436,695, compared with 12,414,189,313 shares in 2Q24 and 12,371,129,866 shares in 3Q23. The diluted weighted average number of shares outstanding was 12,559,358,115 in 3Q24, compared with 12,529,942,186 shares in 2Q24 and 12,566,773,628 shares in 3Q23. The fully diluted shares counted on September 30, 2024 were approximately 12,602,544,000.

Detailed Financials Section

Operating revenues increased to NT$60.49 billion. COGS increased 8.8% to NT$40.06 billion, which included 10.5% increase in depreciation and 8.2% increase in other manufacturing costs. Gross profit increased 2.2% QoQ to NT$20.43 billion. Operating expenses increased to NT$6.56 billion, as R&D grew 4.4% to NT$4.02 billion or 6.6% of revenue, while Sales & Marketing also grew 5.7% to NT$0.72 billion. Net other operating income was NT$0.23 billion. In 3Q24, operating income increased 1.5% QoQ to NT$14.10 billion.

COGS & Expenses
(Amount: NT$ million)	3Q24		2Q24		QoQ % change	3Q23		YoY % change
Operating Revenues	60,485		56,799		6.5	57,069		6.0
COGS	(40,056	)	(36,816	)	8.8	(36,608	)	9.4
Depreciation	(10,449	)	(9,460	)	10.5	(8,485	)	23.1
Other Mfg. Costs	(29,607	)	(27,356	)	8.2	(28,123	)	5.3
Gross Profit	20,429		19,983		2.2	20,461		(0.2	)
Gross Margin (%)	33.8	%	35.2	%		35.9	%
Operating Expenses	(6,559	)	(6,311	)	3.9	(5,722	)	14.6
Sales & Marketing	(717	)	(678	)	5.7	(735	)	(2.6	)
G&A	(1,820	)	(1,804	)	0.9	(1,731	)	5.3
R&D	(4,022	)	(3,853	)	4.4	(3,255	)	23.5
Expected credit impairment gain (loss)	(0	)	24		-	(1	)	(91.9	)
Net Other Operating Income & Expenses	230		219		4.8	573		(59.9	)
Operating Income	14,100		13,891		1.5	15,312		(7.9	)

Net non-operating income in 3Q24 was NT$2.46 billion, primarily due to the NT$2.79 billion in net investment gain, the NT$0.32 billion in net interest income offset by the NT$0.65 billion in exchange loss.

Non-Operating Income and Expenses
(Amount: NT$ million)	3Q24		2Q24		3Q23
Non-Operating Income and Expenses	2,464		2,529		3,336
Net Interest Income and Expenses	324		701		617
Net Investment Gain and Loss	2,791		1,440		1,885
Exchange Gain and Loss	(652	)	407		324
Other Gain and Loss	1		(19	)	510

In 3Q24, cash inflow from operating activities was NT$17.35 billion. Cash outflow from investing activities totaled NT$23.93 billion, which included NT$22.30 billion in capital expenditure, resulting in free cash outflow of NT$4.95 billion. Cash outflow from financing was NT$12.75 billion, primarily from NT$37.59 billion in dividend distribution offset by the NT$25.05 billion in bank loans. Net cash outflow in 3Q24 amounted to NT$18.26 billion. Over the next 12 months, the company expects to repay NT$4.97 billion in bank loans.

Cash Flow Summary
(Amount: NT$ million)	For the 3-Month Period Ended Sep. 30, 2024		For the 3-Month Period Ended Jun. 30, 2024
Cash Flow from Operating Activities	17,347		22,728
Net income before tax	16,564		16,420
Depreciation & Amortization	12,702		11,117
Share of profit of associates and joint ventures	(843	)	(1,267	)
Income tax paid	(3,755	)	(5,831	)
Changes in working capital & others	(7,321	)	2,289
Cash Flow from Investing Activities	(23,927	)	(15,131	)
Decrease (increase) in financial assets measured at amortized cost	(1,988	)	3,219
Acquisition of PP&E	(21,729	)	(20,042	)
Changes in refundable deposits	(205	)	1,507
Acquisition of intangible assets	(499	)	(578	)
Others	494		763
Cash Flow from Financing Activities	(12,750	)	(5,705	)
Bank loans	25,050		(2,503	)
Redemption of bonds	-		(3,000	)
Cash dividends	(37,585	)	-
Others	(215	)	(202	)
Effect of Exchange Rate	1,073		341
Net Cash Flow	(18,257	)	2,233
Beginning balance	121,234		119,431
Changes in non-current assets held for sale	430		(430	)
Ending balance	103,407		121,234

Cash and cash equivalents decreased to NT$103.41 billion. Days of inventory decreased 3 days to 85 days.

Current Assets
(Amount: NT$ billion)	3Q24		2Q24		3Q23
Cash and Cash Equivalents	103.41		121.23		140.64
Notes & Accounts Receivable	33.74		32.53		31.11
Days Sales Outstanding	50		51		49
Inventories, net	38.09		36.33		36.56
Days of Inventory	85		88		89
Total Current Assets	193.61		207.22		219.28

Current liabilities declined to NT$88.27 billion. Short-term credit / bonds increased to NT$30.86 billion while payables on equipment was NT$14.89 billion. Total liabilities decreased to NT$205.80 billion, leading to a debt to equity ratio of 56%.

Liabilities
(Amount: NT$ billion)	3Q24		2Q24		3Q23
Total Current Liabilities	88.27		124.97		92.07
Accounts Payable	9.01		8.18		8.37
Short-Term Credit / Bonds	30.86		16.21		30.07
Payables on Equipment	14.89		22.36		15.95
Dividends Payable	-		37.59		-
Other	33.51		40.63		37.68
Long-Term Credit / Bonds	58.13		47.48		49.38
Total Liabilities	205.80		230.87		197.26
Debt to Equity	56%		65%		56%

Analysis of Revenue²

Revenue from Asia-Pacific grew to 65% while business from North America was 26% of sales. Business from Europe declined to 5% while contribution from Japan remained unchanged at 4%.

Revenue Breakdown by Region
Region	3Q24	2Q24	1Q24	4Q23	3Q23
North America	26%	25%	25%	23%	27%
Asia Pacific	65%	64%	63%	62%	58%
Europe	5%	7%	8%	11%	12%
Japan	4%	4%	4%	4%	3%

Revenue contribution from 22/28nm was 35% of the wafer revenue, while 40nm contribution increased to 13% of sales.

Revenue Breakdown by Geometry
Geometry	3Q24	2Q24	1Q24	4Q23	3Q23
14nm and below	0%	0%	0%	0%	0%
14nm<x<=28nm	35%	33%	33%	36%	32%
28nm<x<=40nm	13%	12%	14%	14%	13%
40nm<x<=65nm	15%	15%	18%	16%	19%
65nm<x<=90nm	10%	12%	10%	9%	8%
90nm<x<=0.13um	10%	11%	9%	9%	12%
0.13um<x<=0.18um	11%	10%	11%	9%	9%
0.18um<x<=0.35um	5%	5%	4%	5%	5%
0.5um and above	1%	2%	1%	2%	2%

Revenue from fabless customers accounted for 85% of revenue.

Revenue Breakdown by Customer Type
Customer Type	3Q24	2Q24	1Q24	4Q23	3Q23
Fabless	85%	87%	82%	78%	79%
IDM	15%	13%	18%	22%	21%

Revenue from the communication segment increased to 42%, while business from computer applications declined to 13%. Business from consumer applications remained at 31% as other segments decreased to 14% of revenue.

Revenue Breakdown by Application (1)
Application	3Q24	2Q24	1Q24	4Q23	3Q23
Computer	13%	15%	13%	13%	13%
Communication	42%	39%	48%	47%	46%
Consumer	31%	31%	23%	23%	23%
Others	14%	15%	16%	17%	18%

(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) remained firm in 3Q24.

(To view blended ASP trend, please click here for 3Q24 ASP)

Shipment and Utilization Rate³

Wafer shipments increased 7.8% QoQ to 896K during the third quarter, while quarterly capacity was 1,274K. Overall utilization rate in 3Q24 grew to 71%.

Wafer Shipments
	3Q24	2Q24	1Q24	4Q23	3Q23
Wafer Shipments (12” K equivalents)	896	831	810	775	795
Quarterly Capacity Utilization Rate
	3Q24	2Q24	1Q24	4Q23	3Q23
Utilization Rate	71%	68%	65%	66%	67%
Total Capacity (12” K equivalents)	1,274	1,257	1,212	1,204	1,182

Capacity⁴

Total capacity in the third quarter increased to 1,274K 12-inch equivalent wafers. Capacity in the fourth quarter of 2024 will slightly grow to 1,280K 12-inch equivalent wafers.

Annual Capacity in thousands of wafers								Quarterly Capacity in thousands of wafers
FAB		Geometry (um)	2023	2022	2021	2020		FAB		4Q24E	3Q24	2Q24	1Q24
WTK	6"	5 – 0.15	328	335	329	371		WTK	6"	83	83	83	82
8A	8"	3 – 0.11	811	765	755	802		8A	8"	207	207	207	206
8C	8"	0.35 – 0.11	473	459	459	452		8C	8"	119	119	119	119
8D	8"	0.18 – 0.11	440	410	380	371		8D	8"	118	118	118	118
8E	8"	0.6 – 0.14	490	469	457	449		8E	8"	131	131	131	130
8F	8"	0.18 – 0.11	570	550	514	485		8F	8"	145	145	145	144
8S	8"	0.18 – 0.11	447	443	408	373		8S	8"	114	114	114	113
8N	8"	0.5 – 0.11	996	952	917	917		8N	8"	254	254	254	252
12A	12"	0.13 – 0.014	1,305	1,170	1,070	1,044		12A	12"	409	403	386	358
12i	12"	0.13 – 0.040	655	655	641	628		12i	12"	172	172	172	164
12X	12"	0.080 – 0.022	317	314	284	217		12X	12"	80	80	80	79
12M	12"	0.13 – 0.040	438	436	395	391		12M	12"	115	115	115	110
Total (1)			4,674	4,458	4,201	4,083		Total		1,280	1,274	1,257	1,212
YoY Growth Rate			5%	6%	3%	13%

⁽¹⁾ One 6-inch wafer is converted into 0.25 (6²/12²) 12-inch equivalent wafer; one 8-inch wafer is converted into 0.44 (8²/12²) 12-inch equivalent wafers. Total capacity figures are expressed in 12-inch equivalent wafers.

CAPEX

CAPEX spending in 3Q24 totaled US$688 million. 2024 cash-based CAPEX budget will be US$3.0 billion.

Capital Expenditure by Year - in US$ billion
Year	2023	2022	2021	2020	2019
CAPEX	$ 3.0	$ 2.7	$ 1.8	$ 1.0	$ 0.6

2024 CAPEX Plan
8"	12"	Total
5%	95%	US$3.0 billion

Fourth Quarter 2024 Outlook & Guidance

Quarter-over-Quarter Guidance:

• Wafer Shipments: Will remain flat
• ASP in USD: Will remain flat
  NTD appreciation will lead to a decline in our reported Q4 NTD revenue
• Gross Profit Margin: Will be close to 30%
• Capacity Utilization: high-60% range
• 2024 CAPEX: US$3.0 billion

Recent Developments / Announcements

Apr. 25, 2024	UMC Files Form 20-F for 2023 with US Securities and Exchange Commission
Apr. 30, 2024	UMC Achieves Highest Corporate Governance Ranking among Taiwan Listed Companies for 10th Consecutive Year
May 2, 2024	UMC Introduces Industry’s First 3D IC Solution for RFSOI, Accelerating Innovations in the 5G Era
May 21, 2024	UMC’s Singapore Fab 12i Celebrates First Tool Move-In for New Phase 3 Expansion
May 30, 2024	UMC Shareholders Elect 16th Term of Directors at Annual Shareholders’ Meeting
Jun. 20, 2024	UMC Launches Most Advanced 22nm eHV Platform to Power Next-Generation Smartphone Displays

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

Conference Call / Webcast Announcement

Wednesday, October 30, 2024

Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 9:00 AM (London)

Dial-in numbers and Access Codes:
Taiwan Number:		02 3396 1191
Taiwan Toll Free:		0080 119 6666
US Toll Free:		+1 866 212 5567
Other Areas:		+886 2 3396 1191
Access Code:		1116030#

A live webcast and replay of the 3Q24 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, BCD etc. Most of UMC’s 12-in and 8-in fabs with its core R&D are in Taiwan, with additional ones throughout Asia. UMC has a total of 12 fabs in production with a combined capacity of more than 400,000 wafers per month (12-in equivalent), and all of them are certified with IATF 16949 automotive quality standards. UMC is headquartered in Hsinchu, Taiwan, plus local offices in the United States, Europe, China, Japan, Korea, and Singapore, with a worldwide total of 20,000 employees. 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 2024; 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 2024 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, 2024
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
	September 30, 2024
	US$		NT$		%
Assets
Current assets
Cash and cash equivalents	3,267		103,407		18.0	%
Accounts receivable, net	1,066		33,744		5.9	%
Inventories, net	1,203		38,090		6.6	%
Other current assets	581		18,367		3.2	%
Total current assets	6,117		193,608		33.7	%
Non-current assets
Funds and investments	2,423		76,693		13.4	%
Property, plant and equipment	8,734		276,445		48.1	%
Right-of-use assets	255		8,057		1.4	%
Other non-current assets	616		19,489		3.4	%
Total non-current assets	12,028		380,684		66.3	%
Total assets	18,145		574,292		100.0	%
Liabilities
Current liabilities
Short-term loans	539		17,069		3.0	%
Payables	1,486		47,035		8.2	%
Current portion of long-term liabilities	436		13,787		2.4	%
Other current liabilities	328		10,383		1.8	%
Total current liabilities	2,789		88,274		15.4	%
Non-current liabilities
Bonds payable	777		24,584		4.3	%
Long-term loans	1,060		33,550		5.8	%
Lease liabilities, noncurrent	186		5,882		1.0	%
Other non-current liabilities	1,690		53,511		9.3	%
Total non-current liabilities	3,713		117,527		20.4	%
Total liabilities	6,502		205,801		35.8	%
Equity
Equity attributable to the parent company
Capital	3,958		125,285		21.8	%
Additional paid-in capital	454		14,342		2.5	%
Retained earnings and other components of equity	7,222		228,577		39.8	%
Total equity attributable to the parent company	11,634		368,204		64.1	%
Non-controlling interests	9		287		0.1	%
Total equity	11,643		368,491		64.2	%
Total liabilities and equity	18,145		574,292		100.0	%
Note: New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2024 exchange rate of NT $31.65 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, 2024						September 30, 2023						Chg.			September 30, 2024						June 30, 2024						Chg.
	US$			NT$			US$			NT$			%			US$			NT$			US$			NT$			%
Operating revenues	1,911			60,485			1,803			57,069			6.0	%		1,911			60,485			1,795			56,799			6.5	%
Operating costs	(1,266	)		(40,056	)		(1,157	)		(36,608	)		9.4	%		(1,266	)		(40,056	)		(1,164	)		(36,816	)		8.8	%
Gross profit	645			20,429			646			20,461			(0.2	%)		645			20,429			631			19,983			2.2	%
	33.8	%		33.8	%		35.9	%		35.9	%					33.8	%		33.8	%		35.2	%		35.2	%
Operating expenses
- Sales and marketing expenses	(23	)		(717	)		(23	)		(735	)		(2.6	%)		(23	)		(717	)		(21	)		(678	)		5.7	%
- General and administrative expenses	(57	)		(1,820	)		(54	)		(1,731	)		5.3	%		(57	)		(1,820	)		(57	)		(1,804	)		0.9	%
- Research and development expenses	(127	)		(4,022	)		(103	)		(3,255	)		23.5	%		(127	)		(4,022	)		(122	)		(3,853	)		4.4	%
- Expected credit impairment gain (loss)	(0	)		(0	)		(0	)		(1	)		(91.9	%)		(0	)		(0	)		1			24			-
Subtotal	(207	)		(6,559	)		(180	)		(5,722	)		14.6	%		(207	)		(6,559	)		(199	)		(6,311	)		3.9	%
Net other operating income and expenses	7			230			18			573			(59.9	%)		7			230			7			219			4.8	%
Operating income	445			14,100			484			15,312			(7.9	%)		445			14,100			439			13,891			1.5	%
	23.3	%		23.3	%		26.8	%		26.8	%					23.3	%		23.3	%		24.5	%		24.5	%
Net non-operating income and expenses	78			2,464			105			3,336			(26.1	%)		78			2,464			80			2,529			(2.5	%)
Income from continuing operations before income tax	523			16,564			589			18,648			(11.2	%)		523			16,564			519			16,420			0.9	%
	27.4	%		27.4	%		32.7	%		32.7	%					27.4	%		27.4	%		28.9	%		28.9	%
Income tax expense	(67	)		(2,122	)		(85	)		(2,682	)		(20.9	%)		(67	)		(2,122	)		(84	)		(2,645	)		(19.8	%)
Net income	456			14,442			504			15,966			(9.5	%)		456			14,442			435			13,775			4.8	%
	23.9	%		23.9	%		28.0	%		28.0	%					23.9	%		23.9	%		24.3	%		24.3	%
Other comprehensive income (loss)	(72	)		(2,299	)		226			7,138			-			(72	)		(2,299	)		44			1,375			-
Total comprehensive income (loss)	384			12,143			730			23,104			(47.4	%)		384			12,143			479			15,150			(19.8	%)
Net income attributable to:
Shareholders of the parent	457			14,472			505			15,971			(9.4	%)		457			14,472			436			13,786			5.0	%
Non-controlling interests	(1	)		(30	)		(1	)		(5	)		490.9	%		(1	)		(30	)		(1	)		(11	)		176.6	%
Comprehensive income (loss) attributable to:
Shareholders of the parent	385			12,173			730			23,109			(47.3	%)		385			12,173			479			15,161			(19.7	%)
Non-controlling interests	(1	)		(30	)		(0	)		(5	)		496.6	%		(1	)		(30	)		(0	)		(11	)		177.0	%
Earnings per share-basic	0.037			1.16			0.041			1.29						0.037			1.16			0.035			1.11
Earnings per ADS (2)	0.183			5.80			0.204			6.45						0.183			5.80			0.175			5.55
Weighted average number of shares outstanding (in millions)				12,436						12,371									12,436						12,414
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2024 exchange rate of NT $31.65 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, 2024									September 30, 2024
	US$			NT$			%			US$			NT$			%
Operating revenues	1,911			60,485			100.0	%		5,432			171,916			100.0	%
Operating costs	(1,266	)		(40,056	)		(66.2	%)		(3,621	)		(114,605	)		(66.7	%)
Gross profit	645			20,429			33.8	%		1,811			57,311			33.3	%
Operating expenses
- Sales and marketing expenses	(23	)		(717	)		(1.2	%)		(66	)		(2,078	)		(1.2	%)
- General and administrative expenses	(57	)		(1,820	)		(3.0	%)		(168	)		(5,326	)		(3.0	%)
- Research and development expenses	(127	)		(4,022	)		(6.6	%)		(356	)		(11,282	)		(6.6	%)
- Expected credit impairment gain (loss)	(0	)		(0	)		(0.0	%)		2			69			0.0	%
Subtotal	(207	)		(6,559	)		(10.8	%)		(588	)		(18,617	)		(10.8	%)
Net other operating income and expenses	7			230			0.3	%		30			962			0.6	%
Operating income	445			14,100			23.3	%		1,253			39,656			23.1	%
Net non-operating income and expenses	78			2,464			4.1	%		191			6,049			3.5	%
Income from continuing operations before income tax	523			16,564			27.4	%		1,444			45,705			26.6	%
Income tax expense	(67	)		(2,122	)		(3.5	%)		(223	)		(7,058	)		(4.1	%)
Net income	456			14,442			23.9	%		1,221			38,647			22.5	%
Other comprehensive income (loss)	(72	)		(2,299	)		(3.8	%)		222			7,030			4.1	%
Total comprehensive income (loss)	384			12,143			20.1	%		1,443			45,677			26.6	%
Net income attributable to:
Shareholders of the parent	457			14,472			23.9	%		1,223			38,714			22.5	%
Non-controlling interests	(1	)		(30	)		(0.0	%)		(2	)		(67	)		(0.0	%)
Comprehensive income (loss) attributable to:
Shareholders of the parent	385			12,173			20.1	%		1,445			45,745			26.6	%
Non-controlling interests	(1	)		(30	)		(0.0	%)		(2	)		(68	)		(0.0	%)
Earnings per share-basic	0.037			1.16						0.099			3.12
Earnings per ADS (2)	0.183			5.80						0.493			15.60
Weighted average number of shares outstanding (in millions)				12,436									12,422
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2024 exchange rate of NT $31.65 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, 2024
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
	US$			NT$
Cash flows from operating activities :
Net income before tax	1,444			45,705
Depreciation & Amortization	1,097			34,705
Share of profit of associates and joint ventures	(70	)		(2,211	)
Income tax paid	(311	)		(9,839	)
Changes in working capital & others	(236	)		(7,465	)
Net cash provided by operating activities	1,924			60,895
Cash flows from investing activities :
Acquisition of property, plant and equipment	(2,220	)		(70,268	)
Acquisition of intangible assets	(61	)		(1,922	)
Others	102			3,217
Net cash used in investing activities	(2,179	)		(68,973	)
Cash flows from financing activities :
Increase in short-term loans	112			3,539
Redemption of bonds	(161	)		(5,100	)
Proceeds from long-term loans	803			25,410
Repayments of long-term loans	(325	)		(10,290	)
Cash dividends	(1,188	)		(37,585	)
Others	(28	)		(868	)
Net cash used in financing activities	(787	)		(24,894	)
Effect of exchange rate changes on cash and cash equivalents	121			3,825
Net decrease in cash and cash equivalents	(921	)		(29,147	)
Cash and cash equivalents at beginning of period	4,188			132,554
Cash and cash equivalents at end of period	3,267			103,407
Note: New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2024 exchange rate of NT $31.65 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, 2024, the three-month period ending June 30, 2024, and the equivalent three-month period that ended September 30, 2023. For all 3Q24 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the September 30, 2024 exchange rate of NT$ 31.65 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/20241030558224/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 was UMC's revenue in Q3 2024?

UMC reported revenue of NT$60.49 billion (US$1.91 billion) in Q3 2024, representing a 6.5% increase from the previous quarter.

What was UMC's capacity utilization rate in Q3 2024?

UMC's capacity utilization rate in Q3 2024 was 71%, showing an improvement from 68% in Q2 2024.

What is UMC's guidance for Q4 2024?

For Q4 2024, UMC expects wafer shipments to remain flat, with utilization in the high-60% range and gross margin close to 30%.

What percentage of UMC's revenue came from 22/28nm technology in Q3 2024?

Revenue from 22/28nm technology accounted for 35% of UMC's wafer revenue in Q3 2024.