Business Wire | Apr 28, 2021 05:14AM EDT

UMC Reports First Quarter 2021 Results

Apr. 28, 2021

TAIPEI, Taiwan--(BUSINESS WIRE)--Apr. 28, 2021--United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the first quarter of 2021.

First quarter consolidated revenue was NT$47.10 billion, which increased 4.0% QoQ from NT$45.30 billion in 4Q20. Compared to a year ago, 1Q21 revenue was up 11.4% YoY from NT$42.27 billion in 1Q20. Consolidated gross margin for 1Q21 was 26.5%. Net income attributable to the stockholders of the parent was NT$10.43 billion, with earnings per ordinary share of NT$0.85.

Jason Wang, co-president of UMC, said, "Amid the semiconductor component shortage, we are working with our customers, suppliers and partners to alleviate the capacity tightness across the supply chain. In Q1, robust wafer demand led to full utilization in our manufacturing sites, bringing overall wafer shipments to 2.37 million 8-inch equivalents. For the quarter, our gross profit grew 15.2% QoQ to NT$12.49 billion which partly reflected higher contribution from our 28nm technologies. During the first quarter, we continued to see an increase in 28nm wafer shipments driven by strong wafer demand associated with digital TV, set top box and connectivity chips designed into smartphones. As a result, 28nm revenue grew 18% QoQ, representing 20% of our wafer business. Furthermore, we have started to ship 22nm products to fulfill consumer demand, leading to the recognition of 22nm wafer revenue in 1Q21. We foresee a significant pick up in 22nm product tape outs that will increase our 22/28nm product pipeline, optimize overall product mix and enhance UMC's foundry share."

Co-president Wang continued, "Looking into the second quarter, market demand will continue to outpace supply which will lift wafer shipments and blended ASP in USD. Recent market dynamics have provided us and our customers an opportunity to reinforce our capex strategy within our ROI boundary, while trying to alleviate the long term capacity constraint in the supply chain. Therefore, our Board of Directors has approved an investment plan which will expand the capacity at UMC Fab 12A capacity Phase 6 (P6) in Taiwan's Tainan Science Park through an innovative, win-win partnership model with several leading global customers. The P6 expansion is scheduled for production in the second quarter of 2023, with total investment for the project earmarked at NT$100 billion. In addition to UMC's previously announced 2021 CAPEX of US$1.5 billion, the bulk of which is allocated towards equipment for the company's Fab 12A P5 site adjacent to P6, total UMC investment in the Tainan Science Park will reach approximately NT$150 billion over the next three years. The P6 program is supported by a multi-year product alignment between UMC and the involved customers that includes a loading protection mechanism that will ensure the P6 capacity is maintained at a healthy loading level. We look forward to leveraging our No. 1 worldwide foundry market position in multiple areas such as 28nm OLED driver IC production, so we may further strengthen UMC's semiconductor industry relevance and capture new market opportunities down the road."

Summary of Operating Results

Operating Results

(Amount: NT$ million) 1Q21 4Q20 QoQ % 1Q20 YoY % change change

Operating Revenues 47,097 45,296 4.0 42,268 11.4

Gross Profit 12,494 10,848 15.2 8,122 53.8

Operating Expenses (5,932) (6,335) (6.4) (5,722) 3.7

Net Other Operating Income and Expenses 1,060 1,102 (3.8) 1,014 4.5

Operating Income 7,622 5,615 35.7 3,414 123.2

Net Non-Operating Income and Expenses 3,361 5,619 (40.2) (2,592) -

Net Income Attributable to Stockholders 10,428 11,196 (6.9) 2,207 372.5of the Parent

EPS (NT$ per share) 0.85 0.92 0.19

(US$ per ADS) 0.149 0.161 0.033

Operating revenues in 1Q21 grew 4.0% to NT$47.10 billion. Revenue contribution from 40nm and below technologies remained at to 40%. Gross profit grew 15.2% QoQ to NT$12.49 billion, or 26.5% of revenue. Operating expenses declined 6.4% to NT$5.93 billion. Net other operating income declined to NT$1.06 billion. Net non-operating income was NT$3.36 billion. Net income attributable to stockholders of the parent declined slightly to NT$10.43 billion.

Earnings per ordinary share for the quarter was NT$0.85. Earnings per ADS was US$0.149. The basic weighted average number of outstanding shares in 1Q21 was 12,206,292,756, compared with 12,206,292,756 shares in 4Q20 and 11,782,936,260 shares in 1Q20. The diluted weighted average number of outstanding shares was 12,381,821,873 in 1Q21, compared with 12,359,115,536 shares in 4Q20 and 13,087,825,472 shares in 1Q20. The fully diluted shares counted on March 31, 2021 were approximately 12,397,900,000.

Detailed Financials Section

COGS & Expenses

(Amount: NT$ million) 1Q21 4Q20 QoQ % 1Q20 YoY % change change

Operating Revenues 47,097 45,296 4.0 42,268 11.4

COGS (34,603) (34,448) 0.4 (34,146) 1.3

Depreciation (10,412) (10,436) (0.2) (11,124) (6.4)

Other Mfg. Costs (24,191) (24,012) 0.7 (23,022) 5.1

Gross Profit 12,494 10,848 15.2 8,122 53.8

Gross Margin (%) 26.5% 23.9% ? 19.2% ?

Operating Expenses (5,932) (6,335) (6.4) (5,722) 3.7

G&A (1,806) (1,966) (8.2) (1,543) 17.0

Sales & Marketing (1,089) (1,175) (7.2) (1,040) 4.8

R&D (3,049) (3,194) (4.5) (3,185) (4.3)

Expected Credit Impairment Gain 12 0 5,409.7 46 (73.1)(Loss)

Net Other Operating Income & Expenses 1,060 1,102 (3.8) 1,014 4.5

Operating Income 7,622 5,615 35.7 3,414 123.2

Operating revenues increased to NT$47.10 billion. COGS remained at NT$34.60 billion, as depreciation and other manufacturing costs remained relatively flat compared to 4Q20. Gross profit increased 15.2% QoQ to NT$12.49 billion, reflecting higher contribution from 28nm wafer shipments. Operating expenses decreased 6.4% QoQ to NT$5.93 billion, as G&A declined 8.2% sequentially to NT$1.81 billion and Sales & Marketing fell 7.2% QoQ to NT$1.09 billion. R&D declined 4.5% sequentially to NT$3.05 billion, representing 6.5% of 1Q21 operating revenues. Net other operating income was NT$1.06 billion. In 1Q21, operating income surged 35.7% QoQ to NT$7.62 billion.

Non-Operating Income and Expenses

(Amount: NT$ million) 1Q21 4Q20 1Q20

Non-Operating Income and Expenses 3,361 5,619 (2,592)

Net Interest Income and Expenses (272) (278) (368)

Net Investment Gain and Loss 3,530 5,703 (1,974)

Exchange Gain and Loss 93 199 (148)

Other Gain and Loss 10 (5) (102)

Net non-operating income in 1Q21 was NT$3.36 billion, mainly resulting from NT$3.53 billion in net investment gain, as well as a NT$93 million in exchange gain, offset by a NT$272 million in net interest expense.

Cash Flow Summary

For the 3-Month For the 3-Month(Amount: NT$ million) Period Ended Period Ended

Mar. 31, 2021 Dec. 31, 2020

Cash Flow from Operating Activities 18,281 16,072

Net income before tax 10,983 11,234

Depreciation & Amortization 11,833 11,993

Share of profit of associates and (1,767) (3,822)joint ventures

Income tax paid (51) (144)

Changes in working capital & others (2,717) (3,189)

Cash Flow from Investing Activities (7,120) (17,437)

Acquisition of PP&E (7,352) (11,738)

Acquisition of intangible assets (619) (293)

Increase in other financial assets (8) (4,625)

Others 859 (781)

Cash Flow from Financing Activities 2,580 (3,153)

Bank loans 2,368 (3,000)

Others 212 (153)

Effect of Exchange Rate (504) (273)

Net Cash Flow 13,237 (4,791)

Beginning balance 94,048 98,839

Ending balance 107,285 94,048

In 1Q21, cash inflow from operating activities was NT$18.28 billion. Cash outflow from investing activities totaled NT$7.12 billion, which included NT$7.81 billion in capital expenditure, resulting in free cash flow of NT$10.47 billion. Cash inflow from financing activities was NT$2.58 billion, mainly due to NT$2.37 billion in bank loans. Net cash inflow in 1Q21 was NT$13.24 billion. Over the next 12 months, the company expects to repay NT$5.43 billion in bank loans.

Current Assets

(Amount: NT$ billion) 1Q21 4Q20 1Q20

Cash and Cash Equivalents 107.29 94.05 95.17

Notes & Accounts Receivable 29.24 27.27 28.57

Days Sales Outstanding 55 55 59

Inventories, net 22.23 22.55 22.13

Days of Inventory 59 60 59

Total Current Assets 179.08 164.31 159.60

Cash and cash equivalents increased to NT$107.29 billion. Days of inventory decreased by a day to 59 days.

Liabilities

(Amount: NT$ billion) 1Q21 4Q20 1Q20

Total Current Liabilities 78.53 78.24 61.10

Notes & Accounts Payable 8.26 7.86 8.92

Short-Term Credit / Bonds 37.28 38.04 25.35

Payables on Equipment 5.29 5.45 2.78

Other 27.70 26.89 24.05

Long-Term Credit / Bonds 27.70 24.77 47.75

Long-Term Investment Liabilities 20.66 20.75 19.89

Total Liabilities 144.59 141.74 149.64

Debt to Equity 58% 60% 71%

Current liabilities remained at NT$78.53 billion, mainly from NT$37.28 billion in short-term credit/bonds, which was a decrease from NT$38.04 billion in Q4. Long-term credit/bonds increased to NT$27.70 billion. Total liabilities increased slightly to NT$144.59 billion, leading to a debt to equity ratio of 58%.

Analysis of Revenue2

Revenue Breakdown by Region

Region 1Q21 4Q20 3Q20 2Q20 1Q20

North America 23% 29% 30% 31% 29%

Asia Pacific 63% 61% 57% 55% 56%

Europe 8% 5% 6% 5% 6%

Japan 6% 5% 7% 9% 9%

Revenue from Asia Pacific rose to 63% as business from North America declined to 23% of sales. Business from Europe was 8% while contribution from Japan increased to 6%.

Revenue Breakdown by Geometry

Geometry 1Q21 4Q20 3Q20 2Q20 1Q20

14nm and below 0% 0% 0% 0% 0%

14nm<x<=28nm 20% 18% 14% 13% 9%

28nm<x<=40nm 20% 22% 23% 23% 25%

40nm<x<=65nm 18% 18% 19% 16% 16%

65nm<x<=90nm 8% 8% 10% 13% 15%

90nm<x<=0.13um 11% 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 2% 2% 2% 3% 3%

Revenue contribution from 28nm increased to 20% of the business while 40nm contribution declined to 20% of sales.

Revenue Breakdown by Customer Type

Customer Type 1Q21 4Q20 3Q20 2Q20 1Q20

Fabless 86% 87% 88% 88% 88%

IDM 14% 13% 12% 12% 12%

Revenue from fabless customers decreased to 86% of revenue.

Revenue Breakdown by Application ^(1)

Application 1Q21 4Q20 3Q20 2Q20 1Q20

Computer 16% 16% 13% 14% 13%

Communication 46% 49% 54% 51% 54%

Consumer 27% 25% 24% 24% 24%

Others 11% 10% 9% 11% 9%

Revenue from the communication segment declined to 46%, while business from computer applications remained at 16%. Business from consumer applications increased to 27% as other segments increased to 11%.

(1) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RWcontrol 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 DVDplayers, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart cards,toys, etc.

Blended ASP Trend

Blended average selling price (ASP) increased in 1Q21.

(To view blended ASP trend, please click here for 1Q21 ASP)

Shipment and Utilization Rate3

Wafer Shipments

1Q21 4Q20 3Q20 2Q20 1Q20

Wafer Shipments 2,372 2,293 2,254 2,218 2,148(8" K equivalents)



Quarterly Capacity Utilization Rate

1Q21 4Q20 3Q20 2Q20 1Q20

Utilization Rate 100% 99% 97% 98% 93%

Total Capacity 2,280 2,311 2,308 2,291 2,278(8" K equivalents)

In 1Q21, wafer shipments increased 3.4% QoQ to 2,372K, while quarterly capacity declined to 2,280K due to fewer working days. Overall utilization rate in 1Q21 was 100%.

Capacity4

Total capacity in the first quarter was 2,280K 8-inch equivalent wafers. Capacity is expected to increase by 4% QoQ in the second quarter to 2,370K 8-inch equivalent wafers, mainly reflecting the capacity expansion at Fab 8N, Fab 12A and Fab 12X.

Annual Capacity in Quarterly Capacity in thousands of wafers thousands of wafers

FAB Geometry 2020 2019 2018 2017 FAB 2Q21E 1Q21 4Q20 3Q20 (um)

WTK 6" 3.5 - 0.45 371 370 396 422 WTK 84 84 93 93

8A 8" 0.5 - 0.25 802 825 825 825 8A 190 186 201 201

8C 8" 0.35 - 0.11 452 436 383 357 8C 115 113 113 113

8D 8" 0.13 - 0.09 371 359 347 341 8D 95 94 93 93

8E 8" 0.5 - 0.15 449 426 418 418 8E 115 113 113 113

8F 8" 0.18 - 0.11 485 434 431 417 8F 122 120 122 122

8S 8" 0.18 - 0.11 373 372 372 347 8S 102 101 93 93

8N 8" 0.5 - 0.11 917 831 771 753 8N 230 226 230 230

12A 12" 0.13 - 0.014 1044 997 997 970 12A 271 257 261 261

12i 12" 0.13 - 0.040 628 595 555 537 12i 160 157 160 160

12X 12" 0.040 - 0.028 217 203 183 97 12X 74 59 57 56

12M 12" 0.090 - 0.040 391 98 - - 12M 98 96 98 98

Total^(1) 9,188 8,148 7,673 7,304 Total 2,370 2,280 2,311 2,308

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 1Q21 was US$275 million. Full year 2021 CAPEX is budgeted at US$2.3 billion, which includes the company's collaborative Fab 12A P6 expansion plan with its customers.

Second Quarter 2021 Outlook & Guidance

Quarter-over-Quarter Guidance:

* Wafer Shipments: To increase by approximately 2% * ASP in USD: To increase by 3-4% * Gross Profit Margin: To challenge 30% * Capacity Utilization: 100% * 2021 CAPEX: US$2.3 billion

Recent Developments / Announcements

Apr 1, Taiwan's MoEA & the Economic Commissioner of the Legislative Yuan2021 visit UMC

Mar 8, Sensirion Gains Capacity Support from UMC as Both Companies Partner to2021 Support the Battle Against COVID-19

Feb 24, UMC Board of Directors Announces Proposals for its Annual Shareholders2021 Meeting

Jan 27, UMC 4Q20 Financial Results2021

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

Conference Call / Webcast Announcement

Wednesday, April 28, 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 1Q21 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 more than 750,000 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 first 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 "First 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 March 31, 2021Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) March 31, 2021 US$ NT$ %AssetsCurrent assetsCash and cash equivalents 3,760 107,285 27.2%

Accounts receivable, net 1,025 29,237 7.4%

Inventories, net 779 22,225 5.6%

Other current assets 713 20,336 5.2%

Total current assets 6,277 179,083 45.4%

Non-current assetsFunds and investments 2,273 64,835 16.4%

Property, plant and equipment 4,431 126,430 32.1%

Right-of-use assets 267 7,609 1.9%

Other non-current assets 571 16,305 4.2%

Total non-current assets 7,542 215,179 54.6%

Total assets 13,819 394,262 100.0%

LiabilitiesCurrent liabilitiesShort-term loans 181 5,163 1.3%

Payables 1,137 32,428 8.2%

Current portion of long-term liabilities 1,126 32,121 8.2%

Other current liabilities 309 8,819 2.2%

Total current liabilities 2,753 78,531 19.9%

Non-current liabilitiesBonds payable 368 10,492 2.7%

Long-term loans 603 17,210 4.4%

Lease liabilities, noncurrent 173 4,925 1.3%

Other non-current liabilities 1,171 33,431 8.4%

Total non-current liabilities 2,315 66,058 16.8%

Total liabilities 5,068 144,589 36.7%

EquityEquity attributable to the parent companyCapital 4,354 124,224 31.5%

Additional paid-in capital 1,509 43,057 10.9%

Retained earnings and other components of equity 2,889 82,416 20.9%

Treasury stock (4) (120) (0.0%)

Total equity attributable to the parent company 8,748 249,577 63.3%

Non-controlling interests 3 96 0.0%

Total equity 8,751 249,673 63.3%

Total liabilities and equity 13,819 394,262 100.0%

Note?New Taiwan Dollars have been translated into U.S. Dollars at the March 31,2021 exchange rate of NT $28.53 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 DataYear over Year ComparisonQuarter over Quarter ComparisonThree-Month Period EndedThree-Month Period EndedMarch 31, 2021March 31, 2020Chg.March 31, 2021December 31, 2020Chg.US$NT$US$NT$%US$NT$US$NT$%Operating revenues1,651

47,097

1,482

42,268

11.4%

1,651

47,097

1,588

45,296

4.0%

Operating costs(1,213)

(34,603)

(1,197)

(34,146)

1.3%

(1,213)

(34,603)

(1,208)

(34,448)

0.4%

Gross profit438

12,494

285

8,122

53.8%

438

12,494

380

10,848

15.2%

26.5%

26.5%

19.2%

19.2%

26.5%

26.5%

23.9%

23.9%

Operating expenses- Sales and marketing expenses(38)

(1,089)

(36)

(1,040)

4.8%

(38)

(1,089)

(41)

(1,175)

(7.2%)

- General and administrative expenses(63)

(1,806)

(55)

(1,543)

17.0%

(63)

(1,806)

(69)

(1,966)

(8.2%)

- Research and development expenses(107)

(3,049)

(112)

(3,185)

(4.3%)

(107)

(3,049)

(112)

(3,194)

(4.5%)

- Expected credit impairment gain0

12

2

46

(73.1%)

0

12

0

0

5,409.7%

Subtotal(208)

(5,932)

(201)

(5,722)

3.7%

(208)

(5,932)

(222)

(6,335)

(6.4%)

Net other operating income and expenses37

1,060

36

1,014

4.5%

37

1,060

39

1,102

(3.8%)

Operating income267

7,622

120

3,414

123.2%

267

7,622

197

5,615

35.7%

16.2%

16.2%

8.1%

8.1%

16.2%

16.2%

12.4%

12.4%

Net non-operating income and expenses118

3,361

(91)

(2,592)

-

118

3,361

197

5,619

(40.2%)

Income from continuing operationsbefore income tax385

10,983

29

822

1,236.3%

385

10,983

394

11,234

(2.2%)

23.3%

23.3%

1.9%

1.9%

23.3%

23.3%

24.8%

24.8%

Income tax benefit (expenses)(38)

(1,094)

14

408

-

(38)

(1,094)

(12)

(344)

217.9%

Net income347

9,889

43

1,230

703.8%

347

9,889

382

10,890

(9.2%)

21.0%

21.0%

2.9%

2.9%

21.0%

21.0%

24.0%

24.0%

Other comprehensive income (loss)124

3,556

(130)

(3,714)

-

124

3,556

134

3,831

(7.2%)

Total comprehensive income (loss)471

13,445

(87)

(2,484)

-

471

13,445

516

14,721

(8.7%)

Net income attributable to:??Stockholders of the parent366

10,428

77

2,207

372.5%

366

10,428

393

11,196

(6.9%)

??Non-controlling interests(19)

(539)

(34)

(977)

(44.8%)

(19)

(539)

(11)

(306)

76.1%

Comprehensive income (loss) attributable to:??Stockholders of the parent490

13,984

(57)

(1,634)

-

490

13,984

527

15,027

(6.9%)

??Non-controlling interests(19)

(539)

(30)

(850)

(36.6%)

(19)

(539)

(11)

(306)

76.1%

Earnings per share-basic0.030

0.85

0.007

0.19

0.030

0.85

0.032

0.92

Earnings per ADS (2)0.149

4.25

0.033

0.95

0.149

4.25

0.161

4.60

Weighted average number of sharesoutstanding (in millions)12,206

11,783

12,206

12,206

Notes:(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2021 exchange rate of NT $28.53 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 Year over Year Comparison Quarter over Quarter Comparison Three-Month Period Ended Three-Month Period Ended March 31, 2021 March 31, 2020 Chg. March 31, 2021 December 31, 2020 Chg. US$ NT$ US$ NT$ % US$ NT$ US$ NT$ %Operating 1,651 47,097 1,482 42,268 11.4% 1,651 47,097 1,588 45,296 4.0%revenuesOperating costs (1,213) (34,603) (1,197) (34,146) 1.3% (1,213) (34,603) (1,208) (34,448) 0.4%

Gross profit 438 12,494 285 8,122 53.8% 438 12,494 380 10,848 15.2%

26.5% 26.5% 19.2% 19.2% 26.5% 26.5% 23.9% 23.9%

Operatingexpenses- Sales and (38) (1,089) (36) (1,040) 4.8% (38) (1,089) (41) (1,175) (7.2%)marketingexpenses- General and (63) (1,806) (55) (1,543) 17.0% (63) (1,806) (69) (1,966) (8.2%)administrativeexpenses- Research and (107) (3,049) (112) (3,185) (4.3%) (107) (3,049) (112) (3,194) (4.5%)developmentexpenses- Expected 0 12 2 46 (73.1%) 0 12 0 0 5,409.7%creditimpairment gainSubtotal (208) (5,932) (201) (5,722) 3.7% (208) (5,932) (222) (6,335) (6.4%)

Net otheroperating 37 1,060 36 1,014 4.5% 37 1,060 39 1,102 (3.8%)income andexpensesOperating 267 7,622 120 3,414 123.2% 267 7,622 197 5,615 35.7%income 16.2% 16.2% 8.1% 8.1% 16.2% 16.2% 12.4% 12.4%

Netnon-operating 118 3,361 (91) (2,592) - 118 3,361 197 5,619 (40.2%)income andexpensesIncome fromcontinuing 385 10,983 29 822 1,236.3% 385 10,983 394 11,234 (2.2%)operationsbefore incometax 23.3% 23.3% 1.9% 1.9% 23.3% 23.3% 24.8% 24.8%

Income tax (38) (1,094) 14 408 - (38) (1,094) (12) (344) 217.9%benefit(expenses)Net income 347 9,889 43 1,230 703.8% 347 9,889 382 10,890 (9.2%)

21.0% 21.0% 2.9% 2.9% 21.0% 21.0% 24.0% 24.0%

Other 124 3,556 (130) (3,714) - 124 3,556 134 3,831 (7.2%)comprehensiveincome (loss) Total 471 13,445 (87) (2,484) - 471 13,445 516 14,721 (8.7%)comprehensiveincome (loss) Net incomeattributableto:??Stockholders 366 10,428 77 2,207 372.5% 366 10,428 393 11,196 (6.9%)of the parent?? (19) (539) (34) (977) (44.8%) (19) (539) (11) (306) 76.1%Non-controllinginterests Comprehensiveincome (loss)attributableto:??Stockholders 490 13,984 (57) (1,634) - 490 13,984 527 15,027 (6.9%)of the parent?? (19) (539) (30) (850) (36.6%) (19) (539) (11) (306) 76.1%Non-controllinginterests Earnings per 0.030 0.85 0.007 0.19 0.030 0.85 0.032 0.92share-basicEarnings per 0.149 4.25 0.033 0.95 0.149 4.25 0.161 4.60ADS ^(2)Weightedaverage numberof sharesoutstanding (in 12,206 11,783 12,206 12,206millions) Notes:(1) New Taiwan Dollars have been translated into U.S. Dollars at theMarch 31, 2021 exchange rate of NT $28.53 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 DataFor the Three-Month Period EndedFor the Three-Month Period EndedMarch 31, 2021March 31, 2021US$NT$%US$NT$%Operating revenues1,651

47,097

100.0%

1,651

47,097

100.0%

Operating costs(1,213)

(34,603)

(73.5%)

(1,213)

(34,603)

(73.5%)

Gross profit438

12,494

26.5%

438

12,494

26.5%

Operating expenses- Sales and marketing expenses(38)

(1,089)

(2.3%)

(38)

(1,089)

(2.3%)

- General and administrative expenses(63)

(1,806)

(3.8%)

(63)

(1,806)

(3.8%)

- Research and development expenses(107)

(3,049)

(6.5%)

(107)

(3,049)

(6.5%)

- Expected credit impairment gain0

12

0.0%

0

12

0.0%

Subtotal(208)

(5,932)

(12.6%)

(208)

(5,932)

(12.6%)

Net other operating income and expenses37

1,060

2.3%

37

1,060

2.3%

Operating income267

7,622

16.2%

267

7,622

16.2%

Net non-operating income and expenses118

3,361

7.1%

118

3,361

7.1%

Income from continuing operationsbefore income tax385

10,983

23.3%

385

10,983

23.3%

Income tax expense(38)

(1,094)

(2.3%)

(38)

(1,094)

(2.3%)

Net income347

9,889

21.0%

347

9,889

21.0%

Other comprehensive income (loss)124

3,556

7.6%

124

3,556

7.6%

Total comprehensive income (loss)471

13,445

28.6%

471

13,445

28.6%

Net income attributable to:??Stockholders of the parent366

10,428

22.1%

366

10,428

22.1%

??Non-controlling interests(19)

(539)

(1.1%)

(19)

(539)

(1.1%)

Comprehensive income (loss) attributable to:??Stockholders of the parent490

13,984

29.7%

490

13,984

29.7%

??Non-controlling interests(19)

(539)

(1.1%)

(19)

(539)

(1.1%)

Earnings per share-basic0.030

0.85

0.030

0.85

Earnings per ADS (2)0.149

4.25

0.149

4.25

Weighted average number of sharesoutstanding (in millions)12,206

12,206

Notes:(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2021 exchange rate of NT $28.53 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 For the Three-Month Period Ended Ended March 31, 2021 March 31, 2021 US$ NT$ % US$ NT$ %Operating revenues 1,651 47,097 100.0% 1,651 47,097 100.0%

Operating costs (1,213) (34,603) (73.5%) (1,213) (34,603) (73.5%)

Gross profit 438 12,494 26.5% 438 12,494 26.5%

Operating expenses- Sales and marketing (38) (1,089) (2.3%) (38) (1,089) (2.3%)expenses- General and (63) (1,806) (3.8%) (63) (1,806) (3.8%)administrativeexpenses- Research and (107) (3,049) (6.5%) (107) (3,049) (6.5%)development expenses- Expected credit 0 12 0.0% 0 12 0.0%impairment gainSubtotal (208) (5,932) (12.6%) (208) (5,932) (12.6%)

Net other operating 37 1,060 2.3% 37 1,060 2.3%income and expensesOperating income 267 7,622 16.2% 267 7,622 16.2%

Net non-operating 118 3,361 7.1% 118 3,361 7.1%income and expensesIncome from 385 10,983 23.3% 385 10,983 23.3%continuing operationsbefore income tax Income tax expense (38) (1,094) (2.3%) (38) (1,094) (2.3%)

Net income 347 9,889 21.0% 347 9,889 21.0%

Other comprehensive 124 3,556 7.6% 124 3,556 7.6%income (loss) Total comprehensive 471 13,445 28.6% 471 13,445 28.6%income (loss) Net incomeattributable to:??Stockholders of the 366 10,428 22.1% 366 10,428 22.1%parent??Non-controlling (19) (539) (1.1%) (19) (539) (1.1%)interests Comprehensive income(loss) attributableto:??Stockholders of the 490 13,984 29.7% 490 13,984 29.7%parent??Non-controlling (19) (539) (1.1%) (19) (539) (1.1%)interests Earnings per 0.030 0.85 0.030 0.85share-basicEarnings per ADS ^(2) 0.149 4.25 0.149 4.25

Weighted averagenumber of shares 12,206 12,206outstanding (inmillions) Notes:(1) New Taiwan Dollars have been translated into U.S. Dollars atthe March 31, 2021 exchange rate of NT $28.53 per U.S. Dollar.(2) 1 ADS equals 5 common shares.UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statement of Cash Flows

For The Three-Month Period Ended March 31, 2021Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)US$NT$Cash flows from operating activities :Net income before tax385

10,983

Depreciation & Amortization415

11,833

Share of profit of associates and joint ventures(62)

(1,767)

Changes in working capital & others(97)

(2,768)

Net cash provided by operating activities641

18,281

Cash flows from investing activities :Acquisition of property, plant and equipment(258)

(7,352)

Acquisition of intangible assets(22)

(619)

Others30

851

Net cash used in investing activities(250)

(7,120)

Cash flows from financing activities :Decrease in short-term loans(204)

(5,815)

Proceeds from long-term loans440

12,560

Repayments of long-term loans(153)

(4,377)

Others7

212

Net cash provided by financing activities90

2,580

Effect of exchange rate changes on cash and cash equivalents(17)

(504)

Net increase in cash and cash equivalents464

13,237

Cash and cash equivalents at beginning of period3,296

94,048

Cash and cash equivalents at end of period3,760

107,285

Note: New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2021 exchange rate of NT $28.53 per U.S. Dollar. 1Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending March 31, 2021, the three-month period ending December 31, 2020, and the equivalent three-month period that ended March 31, 2020. For all 1Q21 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the March 31, 2021 exchange rate of NT$ 28.53 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.

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CONTACT: Michael Lin / David Wong UMC, Investor Relations + 886-2-2658-9168, ext. 16900 jinhong_lin@umc.com david_wong@umc.com