Business Wire | Jul 28, 2021 04:40AM EDT

UMC Reports Second Quarter 2021 Results

Jul. 28, 2021

TAIPEI, Taiwan--(BUSINESS WIRE)--Jul. 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 second quarter of 2021.

Second quarter consolidated revenue was NT$50.91 billion, increasing 8.1% QoQ from NT$47.10 billion in 1Q21. Compared to a year ago, 2Q21 revenue was up 14.7% YoY from NT$44.39 billion in 2Q20. Consolidated gross margin for 2Q21 was 31.3%. Net income attributable to the shareholders of the parent was NT$11.94 billion, with earnings per ordinary share of NT$0.98.

Jason Wang, co-president of UMC, said, "Strong demand fueled by 5G adoption and digital transformation underpinned our strong performance in the second quarter. Our manufacturing facilities exceeded 100% utilization while overall wafer shipments rose 3.0% QoQ to 2.44 million 8-inch equivalents. Revenue from 28nm technologies continued to grow sequentially, fueled by applications incorporated into 4G/5G smartphones, Solid State Drive, and Digital TV. During the quarter, we continued our product optimization and cost reduction efforts, lifting our gross margin. We expect the strength of structural demand to sustain and support the continuous improvement of blended ASP. As a result, the Company's gross profit in the first half of 2021 surged 54.5% YoY to NT$28.40 billion."

Co-president Wang continued, "Looking ahead, we anticipate demand to stay robust in the third quarter driven by megatrends such as 5G and EV. Supply tightness is expected to continue, across 8" and 12" facilities. We foresee margin momentum to continue into the third quarter, supported by further product mix optimization, cost reduction efforts and productivity enhancements. In addition, we expect the adoption rate of our 22nm technologies will continue to gain traction, reflected by a pickup in customers' 22nm product tape outs in connectivity and display applications. We will also focus on further strengthening our leadership position in a number of specialty technologies such as OLED display driver, RFSOI and imaging applications. Moreover, we continue to take important steps to enhance our corporate governance and lead sustainability efforts in our industry. Earlier this month, five independent directors were newly elected to the Company's Board of Directors, representing more than 50% of the board seats and including two female directors. The Company also announced its pledge to reach net zero carbon emissions by 2050, as well as our commitment to work alongside our partners to reduce carbon intensiveness and raise renewable energy usage in our supply chain. UMC is dedicated to enhance our corporate governance as well as addressing climate change to build a sustainable environment."

Summary of Operating Results

Operating Results

(Amount: NT$ million) 2Q21 1Q21 QoQ % 2Q20 YoY % change change

Operating Revenues 50,908 47,097 8.1 44,386 14.7

Gross Profit 15,908 12,494 27.3 10,257 55.1

Operating Expenses (6,201) (5,932) 4.5 (5,677) 9.2

Net Other Operating Income and Expenses 1,606 1,060 51.6 1,266 26.9

Operating Income 11,313 7,622 48.4 5,846 93.5

Net Non-Operating Income and Expenses 1,881 3,361 (44.0) 818 129.9

Net Income Attributable to Shareholders 11,943 10,428 14.5 6,681 78.8of the Parent

EPS (NT$ per share) 0.98 0.85 0.55

(US$ per ADS) 0.176 0.153 0.099

Operating revenues in 2Q21 increased 8.1% to NT$50.91 billion partly reflected by slightly higher wafer shipment and the enhancement in blended product mix. Revenue contribution from 40nm and below technologies was 38%. Gross profit grew 27.3% QoQ to NT$15.91 billion, or 31.3% of revenue. Operating expenses increased 4.5% to NT$6.20 billion. Net other operating income increased to NT$1.61 billion. Net non-operating income was NT$1.88 billion. Net income attributable to shareholders of the parent increased to NT$11.94 billion.

Earnings per ordinary share for the quarter was NT$0.98. Earnings per ADS was US$0.176. The basic weighted average number of outstanding shares in 2Q21 was 12,206,292,756, compared with 12,206,292,756 shares in 1Q21 and 12,193,149,897 shares in 2Q20. The diluted weighted average number of outstanding shares was 12,382,592,798 in 2Q21, compared with 12,381,821,873 shares in 1Q21 and 12,262,774,432 shares in 2Q20. The fully diluted shares counted on June 30, 2021 were approximately 12,398,671,000.

Detailed Financials Section

COGS & Expenses

(Amount: NT$ million) 2Q21 1Q21 QoQ % 2Q20 YoY % change change

Operating Revenues 50,908 47,097 8.1 44,386 14.7

COGS (35,000) (34,603) 1.1 (34,129) 2.6

Depreciation (10,187) (10,412) (2.2) (10,544) (3.4)

Other Mfg. Costs (24,813) (24,191) 2.6 (23,585) 5.2

Gross Profit 15,908 12,494 27.3 10,257 55.1

Gross Margin (%) 31.3% 26.5% ? 23.1% ?

Operating Expenses (6,201) (5,932) 4.5 (5,677) 9.2

G&A (1,901) (1,806) 5.2 (1,537) 23.5

Sales & Marketing (1,131) (1,089) 3.8 (929) 21.8

R&D (3,168) (3,049) 3.9 (3,203) (1.1)

Expected Credit Impairment Gain (Loss) (1) 12 - (8) (81.3)

Net Other Operating Income & Expenses 1,606 1,060 51.6 1,266 26.9

Operating Income 11,313 7,622 48.4 5,846 93.5

Operating revenues grew to NT$50.91 billion. COGS remained flattish at NT$35.00 billion, as the 2.2% sequential decline in depreciation was offset the 2.6% increase in other manufacturing costs primarily due to higher wafer shipments in 2Q21. Gross profit increased 27.3% QoQ to NT$15.91 billion, reflecting the uptick in overall average selling price across 8" and 12" wafer shipments. Operating expenses increased 4.5% QoQ to NT$6.20 billion, as G&A grew 5.2% sequentially to NT$1.90 billion while R&D increased 3.9% QoQ to NT$3.17 billion, representing 6.2% of revenue. Sales & Marketing was up 3.8% QoQ to NT$1.13 billion. Net other operating income was NT$1.61 billion. In 2Q21, operating income expanded 48.4% QoQ to NT$11.31 billion.

Non-Operating Income and Expenses

(Amount: NT$ million) 2Q21 1Q21 2Q20

Non-Operating Income and Expenses 1,881 3,361 818

Net Interest Income and Expenses (310) (272) (307)

Net Investment Gain and Loss 2,276 3,530 1,643

Exchange Gain and Loss (84) 93 (411)

Other Gain and Loss (1) 10 (107)

Net non-operating income in 2Q21 was NT$1.88 billion, mainly resulting from NT$2.28 billion in net investment gain, offset by a NT$310 million in net interest expense and a NT$84 million in exchange loss.

Cash Flow Summary

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

Jun. 30, 2021 Mar. 31, 2021

Cash Flow from Operating Activities 23,123 18,281

Net income before tax 13,194 10,983

Depreciation & Amortization 11,671 11,833

Share of profit of associates and (881) (1,767)joint ventures

Income tax paid (300) (51)

Changes in working capital & others (561) (2,717)

Cash Flow from Investing Activities (18,482) (7,120)

Acquisition of PP&E (8,520) (7,352)

Acquisition of intangible assets (835) (619)

Increase in other financial assets (10,893) (8)

Others 1,766 859

Cash Flow from Financing Activities 13,238 2,580

Bank loans (1,384) 2,368

Bonds Issued 9,600 -

Redemption of bonds (2,000) -

Increase in deposits-in 7,205 382

Others (183) (170)

Effect of Exchange Rate (1,164) (504)

Net Cash Flow 16,715 13,237

Beginning balance 107,285 94,048

Ending balance 124,000 107,285

In 2Q21, cash inflow from operating activities was NT$23.12 billion. Cash outflow from investing activities totaled NT$18.48 billion, which included NT$9.48 billion in capital expenditure, resulting in free cash flow of NT$13.64 billion. Cash inflow from financing activities was NT$13.24 billion, primarily from a NT$9.60 billion from the issuance of bonds and a NT$7.21 billion in deposit which included the capacity deposit from 12A P6 agreement, offset by a NT$2.00 billion in the redemption of bonds and a NT$1.38 billion payment in the bank loans. Net cash inflow in 2Q21 was NT$16.72 billion. Over the next 12 months, the company expects to repay NT$8.06 billion in bank loans.

Current Assets

(Amount: NT$ billion) 2Q21 1Q21 2Q20

Cash and Cash Equivalents 124.00 107.29 99.87

Notes & Accounts Receivable 30.11 29.24 27.26

Days Sales Outstanding 53 55 57

Inventories, net 22.44 22.23 23.34

Days of Inventory 58 59 61

Total Current Assets 207.83 179.08 167.96

Cash and cash equivalents increased to NT$124.00 billion. Days of inventory decreased by a day to 58 days.

Liabilities

(Amount: NT$ billion) 2Q21 1Q21 2Q20

Total Current Liabilities 85.00 78.53 65.11

Notes & Accounts Payable 8.42 8.26 8.56

Short-Term Credit / Bonds 19.65 37.28 17.32

Payables on Equipment 6.67 5.29 3.22

Dividends Payable 19.88 - 9.77

Other 30.38 27.70 26.24

Long-Term Credit / Bonds 50.97 27.70 53.50

Long-Term Investment Liabilities 20.61 20.66 19.69

Total Liabilities 181.49 144.59 158.34

Debt to Equity 76% 58% 76%

Current liabilities increased to NT$85.00 billion, which included a NT$19.88 billion in dividends payable. Long-term credit/bonds increased to NT$50.97 billion. Total liabilities increased to NT$181.49 billion, leading to a debt to equity ratio of 76%.

Analysis of Revenue2

Revenue Breakdown by Region

Region 2Q21 1Q21 4Q20 3Q20 2Q20

North America 22% 23% 29% 30% 31%

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

Europe 8% 8% 5% 6% 5%

Japan 7% 6% 5% 7% 9%

Revenue from Asia-Pacific remained unchanged at 63% as business from North America declined to 22% of sales. Business from Europe was 8% while contribution from Japan increased to 7%.

Revenue Breakdown by Geometry

Geometry 2Q21 1Q21 4Q20 3Q20 2Q20

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

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

28nm<x<=40nm 18% 20% 22% 23% 23%

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

65nm<x<=90nm 9% 8% 8% 10% 13%

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% 2% 3%

Revenue contribution from 22/28nm stayed at 20% of the wafer revenue, while 40nm contribution declined to 18% of sales.

Revenue Breakdown by Customer Type

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

Fabless 84% 86% 87% 88% 88%

IDM 16% 14% 13% 12% 12%

Revenue from fabless customers decreased to 84% of revenue.

Revenue Breakdown by Application ^(1)

Application 2Q21 1Q21 4Q20 3Q20 2Q20

Computer 17% 16% 16% 13% 14%

Communication 47% 46% 49% 54% 51%

Consumer 26% 27% 25% 24% 24%

Others 10% 11% 10% 9% 11%

Revenue from the communication segment increased to 47%, while business from computer applications increased to 17%. Business from consumer applications declined to 26% as other segments accounted for 10% of revenue.

(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) grew in 2Q21.

(To view blended ASP trend, please click here for 2Q21 ASP)

Shipment and Utilization Rate3

Wafer Shipments

2Q21 1Q21 4Q20 3Q20 2Q20

Wafer Shipments 2,440 2,372 2,293 2,254 2,218(8" K equivalents)



Quarterly Capacity Utilization Rate

2Q21 1Q21 4Q20 3Q20 2Q20

Utilization Rate 100%+ 100% 99% 97% 98%

Total Capacity 2,370 2,280 2,311 2,308 2,291(8" K equivalents)

In 2Q21, wafer shipments increased 2.9% QoQ to 2,440K, while quarterly capacity grew to 2,370K. Overall utilization rate in 2Q21 exceeded 100%.

Capacity4

Total capacity in the second quarter expanded by 4% QoQ to 2,370K 8-inch equivalent wafers. Capacity is expected to slightly increase in the third quarter to 2,387K 8-inch equivalent wafers, mainly reflecting the capacity expansion at Fab 8F.

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

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

WTK 6" 3.5 - 0.45 371 370 396 422 WTK 86 84 84 93

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

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

8D 8" 0.18 - 0.09 371 359 347 341 8D 95 95 94 93

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

8F 8" 0.18 - 0.11 485 434 431 417 8F 137 122 120 122

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

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

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

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

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

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

Total^(1) 9,188 8,148 7,673 7,304 Total 2,387 2,370 2,280 2,311

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 2Q21 was US$339 million. Full year 2021 CAPEX is budgeted at US$2.3 billion, which includes the company's collaborative Fab 12A P6 expansion plan with customers.

Third Quarter 2021 Outlook & Guidance

Quarter-over-Quarter Guidance:

* Wafer Shipments: To increase by 1-2% * ASP in USD: To increase by approximately 6% * Gross Profit Margin: To be in the mid-30% range * Capacity Utilization: 100% * 2021 CAPEX: US$2.3 billion

Recent Developments / Announcements

Jul 13, Cadence and UMC Collaborate on 22ULP/ULL Reference Flow2021 Certification

Jun 1, UMC Pledges Net Zero Carbon Emissions by 20502021

May 7, UMC Ranked Top 5% in Corporate Governance Evaluation for 7^th2021 Consecutive Year

Apr 29, UMC Files Form 20-F for 2020 with US Securities and Exchange2021 Commission

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

Conference Call / Webcast Announcement

Wednesday, July 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 2Q21 results announcement will be available at www.umc.com under the "Investors / Events" section.

About UMC

UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry. The company provides high quality IC production with a focus on both logic and specialty technologies to serve every major sector of the electronics industry. UMC's comprehensive technology and manufacturing solutions include logic/RF, embedded high voltage, embedded flash, RFSOI/BCD and IATF-16949 automotive manufacturing certification for all its manufacturing facilities. UMC operates 12 fabs that are strategically located throughout Asia with a maximum capacity of approximately 800,000 8-inch equivalent wafers per month. The company employs approximately 19,500 people worldwide, with offices in Taiwan, China, United States, Europe, Japan, Korea and Singapore. For more information, please visit: http://www.umc.com.

Safe Harbor Statements

This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding anticipated financial results for the second 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 "Second 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 SheetAs of June 30, 2021 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) June 30, 2021 US$ NT$ %AssetsCurrent assets Cash and cash equivalents 4,451 124,000 29.4%

Accounts receivable, net 1,081 30,113 7.2%

Inventories, net 805 22,439 5.3%

Other current assets 1,123 31,281 7.4%

Total current assets 7,460 207,833 49.3%

Non-current assets Funds and investments 2,389 66,570 15.8%

Property, plant and equipment 4,450 123,983 29.4%

Right-of-use assets 266 7,413 1.8%

Other non-current assets 571 15,878 3.7%

Total non-current assets 7,676 213,844 50.7%

Total assets 15,136 421,677 100.0%

LiabilitiesCurrent liabilities Short-term loans 193 5,386 1.3%

Payables 1,319 36,753 8.7%

Dividends payable 713 19,876 4.7%

Current portion of long-term liabilities 512 14,263 3.4%

Other current liabilities 314 8,726 2.0%

Total current liabilities 3,051 85,004 20.1%

Non-current liabilities Bonds payable 721 20,082 4.8%

Long-term loans 1,109 30,885 7.3%

Lease liabilities, noncurrent 171 4,771 1.1%

Other non-current liabilities 1,462 40,743 9.7%

Total non-current liabilities 3,463 96,481 22.9%

Total liabilities 6,514 181,485 43.0%

EquityEquity attributable to the parent company Capital 4,459 124,233 29.5%

Additional paid-in capital 1,550 43,182 10.2%

Retained earnings and other components of equity 2,613 72,791 17.3%

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

Total equity attributable to the parent company 8,618 240,086 57.0%

Non-controlling interests 4 106 0.0%

Total equity 8,622 240,192 57.0%

Total liabilities and equity 15,136 421,677 100.0%

Note?New Taiwan Dollars have been translated into U.S. Dollars at the June 30,2021 exchange rate of NT $27.86 per U.S. Dollar.UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIESConsolidated Condensed Statements of Comprehensive IncomeFigures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)Except Per Share and Per ADS DataYear over Year ComparisonQuarter over Quarter ComparisonThree-Month Period EndedThree-Month Period EndedJune 30, 2021June 30, 2020Chg.June 30, 2021March 31, 2021Chg.US$NT$US$NT$%US$NT$US$NT$%Operating revenues1,827

50,908

1,593

44,386

14.7%

1,827

50,908

1,690

47,097

8.1%

Operating costs(1,256)

(35,000)

(1,225)

(34,129)

2.6%

(1,256)

(35,000)

(1,242)

(34,603)

1.1%

Gross profit571

15,908

368

10,257

55.1%

571

15,908

448

12,494

27.3%

31.3%

31.3%

23.1%

23.1%

31.3%

31.3%

26.5%

26.5%

Operating expenses - Sales and marketing expenses(41)

(1,131)

(33)

(929)

21.8%

(41)

(1,131)

(39)

(1,089)

3.8%

- General and administrative expenses(68)

(1,901)

(56)

(1,537)

23.5%

(68)

(1,901)

(64)

(1,806)

5.2%

- Research and development expenses(114)

(3,168)

(115)

(3,203)

(1.1%)

(114)

(3,168)

(109)

(3,049)

3.9%

- Expected credit impairment gain (loss)(0)

(1)

(0)

(8)

(81.3%)

(0)

(1)

0

12

-

Subtotal(223)

(6,201)

(204)

(5,677)

9.2%

(223)

(6,201)

(212)

(5,932)

4.5%

Net other operating income and expenses58

1,606

46

1,266

26.9%

58

1,606

38

1,060

51.6%

Operating income406

11,313

210

5,846

93.5%

406

11,313

274

7,622

48.4%

22.2%

22.2%

13.2%

13.2%

22.2%

22.2%

16.2%

16.2%

Net non-operating income and expenses68

1,881

29

818

129.9%

68

1,881

120

3,361

(44.0%)

Income from continuing operations before income tax474

13,194

239

6,664

98.0%

474

13,194

394

10,983

20.1%

25.9%

25.9%

15.0%

15.0%

25.9%

25.9%

23.3%

23.3%

Income tax expenses(48)

(1,327)

(22)

(613)

116.6%

(48)

(1,327)

(39)

(1,094)

21.3%

Net income426

11,867

217

6,051

96.1%

426

11,867

355

9,889

20.0%

23.3%

23.3%

13.6%

13.6%

23.3%

23.3%

21.0%

21.0%

Other comprehensive income (loss)(70)

(1,935)

114

3,178

-

(70)

(1,935)

128

3,556

-

Total comprehensive income (loss)356

9,932

331

9,229

7.6%

356

9,932

483

13,445

(26.1%)

Net income attributable to:??Shareholders of the parent429

11,943

240

6,681

78.8%

429

11,943

374

10,428

14.5%

??Non-controlling interests(3)

(76)

(23)

(630)

(87.9%)

(3)

(76)

(19)

(539)

(85.8%)

Comprehensive income (loss) attributable to:??Shareholders of the parent359

10,008

354

9,859

1.5%

359

10,008

502

13,984

(28.4%)

??Non-controlling interests(3)

(76)

(23)

(630)

(87.9%)

(3)

(76)

(19)

(539)

(85.8%)

Earnings per share-basic0.035

0.98

0.020

0.55

0.035

0.98

0.031

0.85

Earnings per ADS (2)0.176

4.90

0.099

2.75

0.176

4.90

0.153

4.25

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

12,193

12,206

12,206

Notes:(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2021 exchange rate of NT $27.86 per U.S. Dollar.(2) 1 ADS equals 5 common shares.UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIESConsolidated Condensed Statements of Comprehensive IncomeFigures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)Except Per Share and Per ADS Data Year over Year Comparison Quarter over Quarter Comparison Three-Month Period Ended Three-Month Period Ended June 30, 2021 June 30, 2020 Chg. June 30, 2021 March 31, 2021 Chg. US$ NT$ US$ NT$ % US$ NT$ US$ NT$ %Operating 1,827 50,908 1,593 44,386 14.7% 1,827 50,908 1,690 47,097 8.1%revenuesOperating costs (1,256) (35,000) (1,225) (34,129) 2.6% (1,256) (35,000) (1,242) (34,603) 1.1%

Gross profit 571 15,908 368 10,257 55.1% 571 15,908 448 12,494 27.3%

31.3% 31.3% 23.1% 23.1% 31.3% 31.3% 26.5% 26.5%

Operatingexpenses - Sales and (41) (1,131) (33) (929) 21.8% (41) (1,131) (39) (1,089) 3.8%marketingexpenses - General and (68) (1,901) (56) (1,537) 23.5% (68) (1,901) (64) (1,806) 5.2%administrativeexpenses - Research (114) (3,168) (115) (3,203) (1.1%) (114) (3,168) (109) (3,049) 3.9%and developmentexpenses - Expected credit (0) (1) (0) (8) (81.3%) (0) (1) 0 12 -impairment gain(loss) Subtotal (223) (6,201) (204) (5,677) 9.2% (223) (6,201) (212) (5,932) 4.5%

Net otheroperating 58 1,606 46 1,266 26.9% 58 1,606 38 1,060 51.6%income andexpensesOperating 406 11,313 210 5,846 93.5% 406 11,313 274 7,622 48.4%income 22.2% 22.2% 13.2% 13.2% 22.2% 22.2% 16.2% 16.2%

Netnon-operating 68 1,881 29 818 129.9% 68 1,881 120 3,361 (44.0%)income andexpensesIncome fromcontinuing 474 13,194 239 6,664 98.0% 474 13,194 394 10,983 20.1%operations beforeincome tax 25.9% 25.9% 15.0% 15.0% 25.9% 25.9% 23.3% 23.3%

Income tax (48) (1,327) (22) (613) 116.6% (48) (1,327) (39) (1,094) 21.3%expensesNet income 426 11,867 217 6,051 96.1% 426 11,867 355 9,889 20.0%

23.3% 23.3% 13.6% 13.6% 23.3% 23.3% 21.0% 21.0%

Other (70) (1,935) 114 3,178 (70) (1,935) 128 3,556 comprehensive - -income (loss) Total 356 9,932 331 9,229 7.6% 356 9,932 483 13,445 (26.1%)comprehensiveincome (loss) Net incomeattributableto:??Shareholders 429 11,943 240 6,681 78.8% 429 11,943 374 10,428 14.5%of the parent?? (3) (76) (23) (630) (87.9%) (3) (76) (19) (539) (85.8%)Non-controllinginterests Comprehensiveincome (loss)attributableto:??Shareholders 359 10,008 354 9,859 1.5% 359 10,008 502 13,984 (28.4%)of the parent?? (3) (76) (23) (630) (87.9%) (3) (76) (19) (539) (85.8%)Non-controllinginterests Earnings per 0.035 0.98 0.020 0.55 0.035 0.98 0.031 0.85share-basicEarnings per 0.176 4.90 0.099 2.75 0.176 4.90 0.153 4.25ADS ^(2)Weightedaverage numberof sharesoutstanding (in 12,206 12,193 12,206 12,206millions) Notes:(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30,2021 exchange rate of NT $27.86 per U.S. Dollar.(2) 1 ADS equals 5 common shares.UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIESConsolidated Condensed Statements of Comprehensive IncomeFigures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)Except Per Share and Per ADS DataFor the Three-Month Period EndedFor the Six-Month Period EndedJune 30, 2021June 30, 2021US$NT$%US$ NT$ %Operating revenues1,827

50,908

100.0%

3,518

98,005

100.0%

Operating costs(1,256)

(35,000)

(68.7%)

(2,499)

(69,603)

(71.0%)

Gross profit571

15,908

31.3%

1,019

28,402

29.0%

Operating expenses - Sales and marketing expenses(41)

(1,131)

(2.2%)

(80)

(2,220)

(2.3%)

- General and administrative expenses(68)

(1,901)

(3.8%)

(132)

(3,707)

(3.8%)

- Research and development expenses(114)

(3,168)

(6.2%)

(223)

(6,217)

(6.3%)

- Expected credit impairment gain (loss)(0)

(1)

(0.0%)

0

11

0.0%

Subtotal(223)

(6,201)

(12.2%)

(435)

(12,133)

(12.4%)

Net other operating income and expenses58

1,606

3.1%

96

2,666

2.7%

Operating income406

11,313

22.2%

680

18,935

19.3%

Net non-operating income and expenses68

1,881

3.7%

188

5,242

5.4%

Income from continuing operations before income tax474

13,194

25.9%

868

24,177

24.7%

Income tax expense(48)

(1,327)

(2.6%)

(87)

(2,422)

(2.5%)

Net income426

11,867

23.3%

781

21,755

22.2%

Other comprehensive income (loss)(70)

(1,935)

(3.8%)

58

1,622

1.7%

Total comprehensive income (loss)356

9,932

19.5%

839

23,377

23.9%

Net income attributable to:??Shareholders of the parent429

11,943

23.5%

803

22,371

22.8%

??Non-controlling interests(3)

(76)

(0.2%)

(22)

(616)

(0.6%)

Comprehensive income (loss) attributable to:??Shareholders of the parent359

10,008

19.7%

861

23,992

24.5%

??Non-controlling interests(3)

(76)

(0.2%)

(22)

(615)

(0.6%)

Earnings per share-basic0.035

0.98

0.066

1.83

Earnings per ADS (2)0.176

4.90

0.328

9.15

Weighted average number of shares outstanding (in millions)12,206

12,206

Notes:(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2021 exchange rate of NT $27.86 per U.S. Dollar.(2) 1 ADS equals 5 common shares.UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIESConsolidated Condensed Statements of Comprehensive IncomeFigures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)Except Per Share and Per ADS Data For the Three-Month Period For the Six-Month Period Ended Ended June 30, 2021 June 30, 2021 US$ NT$ % US$ NT$ %Operating 1,827 50,908 100.0% 3,518 98,005 100.0%revenuesOperating costs (1,256) (35,000) (68.7%) (2,499) (69,603) (71.0%)

Gross profit 571 15,908 31.3% 1,019 28,402 29.0%

Operatingexpenses - Sales and (41) (1,131) (2.2%) (80) (2,220) (2.3%)marketingexpenses - General and (68) (1,901) (3.8%) (132) (3,707) (3.8%)administrativeexpenses - Research and (114) (3,168) (6.2%) (223) (6,217) (6.3%)developmentexpenses - Expectedcredit (0) (1) (0.0%) 0 11 0.0%impairment gain(loss) Subtotal (223) (6,201) (12.2%) (435) (12,133) (12.4%)

Net other 58 1,606 3.1% 96 2,666 2.7%operating incomeand expensesOperating income 406 11,313 22.2% 680 18,935 19.3%

Netnon-operating 68 1,881 3.7% 188 5,242 5.4%income andexpensesIncome fromcontinuing 474 13,194 25.9% 868 24,177 24.7%operations before incometax Income tax (48) (1,327) (2.6%) (87) (2,422) (2.5%)expenseNet income 426 11,867 23.3% 781 21,755 22.2%

Other (70) (1,935) (3.8%) 58 1,622 1.7%comprehensiveincome (loss) Total 356 9,932 19.5% 839 23,377 23.9%comprehensiveincome (loss) Net incomeattributable to:??Shareholders 429 11,943 23.5% 803 22,371 22.8%of the parent?? (3) (76) (0.2%) (22) (616) (0.6%)Non-controllinginterests Comprehensiveincome (loss)attributable to:??Shareholders 359 10,008 19.7% 861 23,992 24.5%of the parent?? (3) (76) (0.2%) (22) (615) (0.6%)Non-controllinginterests Earnings per 0.035 0.98 0.066 1.83share-basicEarnings per ADS 0.176 4.90 0.328 9.15^(2) Weighted averagenumber of shares 12,206 12,206 outstanding(in millions) Notes:(1) New Taiwan Dollars have been translated into U.S. Dollars atthe June 30, 2021 exchange rate of NT $27.86 per U.S. Dollar.(2) 1 ADS equals 5 common shares.UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIESConsolidated Condensed Statement of Cash FlowsFor The Six-Month Period Ended June 30, 2021Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)US$NT$Cash flows from operating activities : Net income before tax868

24,177

Depreciation & Amortization844

23,504

Share of profit of associates and joint ventures(95)

(2,648)

Changes in working capital & others(131)

(3,629)

Net cash provided by operating activities1,486

41,404

Cash flows from investing activities : Acquisition of property, plant and equipment(570)

(15,872)

Acquisition of intangible assets(52)

(1,454)

Increase in other financial assets(391)

(10,901)

Others94

2,625

Net cash used in investing activities(919)

(25,602)

Cash flows from financing activities : Decrease in short-term loans(198)

(5,509)

Proceeds from bonds issued345

9,600

Redemption of bonds(72)

(2,000)

Proceeds from long-term loans500

13,943

Repayments of long-term loans(267)

(7,450)

Increase in guarantee deposits272

7,587

Others(12)

(353)

Net cash provided by financing activities568

15,818

Effect of exchange rate changes on cash and cash equivalents(60)

(1,668)

Net increase in cash and cash equivalents1,075

29,952

Cash and cash equivalents at beginning of period3,376

94,048

Cash and cash equivalents at end of period4,451

124,000

Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2021 exchange rate of NT $27.86 per U.S. Dollar. 1Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending June 30, 2021, the three-month period ending March 31, 2021, and the equivalent three-month period that ended June 30, 2020. For all 2Q21 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the June 30, 2021 exchange rate of NT$ 27.86 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