Business Wire | Oct 27, 2021 04:35AM EDT

UMC Reports Third Quarter 2021 Results

Oct. 27, 2021

TAIPEI, Taiwan--(BUSINESS WIRE)--Oct. 27, 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 third quarter of 2021.

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

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

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

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

Summary of Operating Results

Operating Results

(Amount: NT$ million) 3Q21 2Q21 QoQ % 3Q20 YoY % change change

Operating Revenues 55,907 50,908 9.8 44,870 24.6

Gross Profit 20,544 15,908 29.1 9,769 110.3

Operating Expenses (6,636) (6,201) 7.0 (5,508) 20.5

Net Other Operating Income and 1,227 1,606 (23.6) 2,872 (57.3)Expenses

Operating Income 15,135 11,313 33.8 7,133 112.2

Net Non-Operating Income and 4,317 1,881 129.5 2,074 108.2Expenses

Net Income Attributable to 17,460 11,943 46.2 9,106 91.7Shareholders of the Parent

EPS (NT$ per share) 1.43 0.98 0.75

(US$ per ADS) 0.257 0.176 0.135

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

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

Detailed Financials Section

COGS & Expenses

(Amount: NT$ million) 3Q21 2Q21 QoQ % 3Q20 YoY % change change

Operating Revenues 55,907 50,908 9.8 44,870 24.6

COGS (35,363) (35,000) 1.0 (35,101) 0.7

Depreciation (9,900) (10,187) (2.8) (10,911) (9.3)

Other Mfg. Costs (25,463) (24,813) 2.6 (24,190) 5.3

Gross Profit 20,544 15,908 29.1 9,769 110.3

Gross Margin (%) 36.8% 31.3% ? 21.8% ?

Operating Expenses (6,636) (6,201) 7.0 (5,508) 20.5

G&A (2,119) (1,901) 11.5 (1,614) 31.2

Sales & Marketing (1,212) (1,131) 7.2 (1,009) 20.1

R&D (3,303) (3,168) 4.3 (3,314) (0.3)

Expected Credit Impairment Gain (2) (1) 46.7 429 -(Loss)

Net Other Operating Income & 1,227 1,606 (23.6) 2,872 (57.3)Expenses

Operating Income 15,135 11,313 33.8 7,133 112.2

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

Non-Operating Income and Expenses

(Amount: NT$ million) 3Q21 2Q21 3Q20

Non-Operating Income and Expenses 4,317 1,881 2,074

Net Interest Income and Expenses (367) (310) (314)

Net Investment Gain and Loss 4,534 2,276 3,944

Exchange Gain and Loss 164 (84) 259

Other Gain and Loss (14) (1) (1,815)

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

Cash Flow Summary For the 3-Month For the 3-Month(Amount: NT$ million) Period Ended Period Ended Sep. 30, 2021 Jun. 30, 2021

Cash Flow from Operating Activities 22,125 23,123

Net income before tax 19,452 13,194

Depreciation & Amortization 11,754 11,671

Share of profit of associates and joint (3,356) (881)ventures

Income tax paid (1,365) (300)

Changes in working capital & others (4,360) (561)

Cash Flow from Investing Activities (23,222) (18,482)

Acquisition of PP&E (17,457) (8,520)

Acquisition of intangible assets (371) (835)

Increase in other financial assets (5,677) (10,893)

Others 283 1,766

Cash Flow from Financing Activities (9,694) 13,238

Bank loans (4,510) (1,384)

Bonds Issued 11,161 9,600

Redemption of bonds - (2,000)

Increase in deposits-in 3,738 7,205

Cash dividends (19,870) -

Others (213) (183)

Effect of Exchange Rate (104) (1,164)

Net Cash Flow (10,895) 16,715

Beginning balance 124,000 107,285

Ending balance 113,105 124,000

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

Current Assets

(Amount: NT$ billion) 3Q21 2Q21 3Q20

Cash and Cash Equivalents 113.11 124.00 98.84

Notes & Accounts Receivable 32.99 30.11 26.96

Days Sales Outstanding 51 53 55

Inventories, net 23.15 22.44 22.86

Days of Inventory 59 58 60

Total Current Assets 211.60 207.83 163.48

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

Liabilities

(Amount: NT$ billion) 3Q21 2Q21 3Q20

Total Current Liabilities 84.55 85.00 59.15

Notes & Accounts Payable 8.26 8.42 7.70

Short-Term Credit / Bonds 24.26 19.65 16.40

Payables on Equipment 6.72 6.67 7.38

Dividends Payable - 19.88 -

Other 45.31 30.38 27.67

Long-Term Credit / Bonds 51.09 50.97 49.46

Long-Term Investment Liabilities 8.14 20.61 20.14

Total Liabilities 171.19 181.49 147.33

Debt to Equity 66% 76% 67%

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

Analysis of Revenue2

Revenue Breakdown by Region

Region 3Q21 2Q21 1Q21 4Q20 3Q20

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

Asia Pacific 65% 63% 63% 61% 57%

Europe 7% 8% 8% 5% 6%

Japan 6% 7% 6% 5% 7%

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

Revenue Breakdown by Geometry

Geometry 3Q21 2Q21 1Q21 4Q20 3Q20

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

14nm<x<=28nm 19% 20% 20% 18% 14%

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

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

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

90nm<x<=0.13um 12% 11% 11% 11% 11%

0.13um<x<=0.18um 13% 13% 13% 13% 13%

0.18um<x<=0.35um 8% 8% 8% 8% 8%

0.5um and above 3% 2% 2% 2% 2%

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

Revenue Breakdown by Customer Type

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

Fabless 86% 84% 86% 87% 88%

IDM 14% 16% 14% 13% 12%

Revenue from fabless customers accounted for 86% of revenue.

Revenue Breakdown by Application ^(1)

Application 3Q21 2Q21 1Q21 4Q20 3Q20

Computer 17% 17% 16% 16% 13%

Communication 46% 47% 46% 49% 54%

Consumer 27% 26% 27% 25% 24%

Others 10% 10% 11% 10% 9%

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

(1) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-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 3Q21.

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

Shipment and Utilization Rate3

Wafer Shipments

3Q21 2Q21 1Q21 4Q20 3Q20

Wafer Shipments 2,503 2,440 2,372 2,293 2,254(8" K equivalents)



Quarterly Capacity Utilization Rate

3Q21 2Q21 1Q21 4Q20 3Q20

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

Total Capacity 2,383 2,370 2,280 2,311 2,308(8" K equivalents)

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

Capacity4

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

Annual Capacity in Quarterly Capacity inthousands of wafers thousands of wafers

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

WTK 6" 3.5 - 0.45 371 370 396 422 WTK 81 80 84 84

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

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

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

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

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

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

8N 8" 0.5 - 0.11 917 831 771 753 8N 232 230 230 226

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

12i 12" 0.13 - 0.040 628 595 555 537 12i 164 160 160 157

12X 12" 0.040 - 0.028 217 203 183 97 12X 78 74 74 59

12M 12" 0.090 - 0.040 391 98 - - 12M 104 98 98 96

Total^(1) 9,188 8,148 7,673 7,304 Total 2,419 2,383 2,370 2,280

YoY Growth Rate 13% 6% 5% 5%

(1) One 6-inch wafer is converted into 0.5625 (62/82) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25 (122/82) 8-inch equivalent wafers. Total capacity figures are expressed in 8-inch equivalent wafers.

CAPEX

^(1) One 6-inch wafer is converted into 0.5625 (6^2/8^2) 8-inch equivalentwafer; one 12-inch wafer is converted into 2.25 (12^2/8^2) 8-inch equivalentwafers. Total capacity figures are expressed in 8-inch equivalent wafers.

CAPEX

Capital Expenditure by Year - in US$ billion

Year 2020 2019 2018 2017 2016

CAPEX $ 1.0 $ 0.6 $ 0.7 $ 1.4 $ 2.8

2021 CAPEX Plan

8"

12"

Total

15%

85%

US$2.3 billion

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

Fourth Quarter 2021 Outlook & Guidance

Quarter-over-Quarter Guidance:

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

Recent Developments / Announcements

2021 CAPEX Plan

8" 12" Total

15% 85% US$2.3 billion

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

Fourth Quarter 2021 Outlook & Guidance

Quarter-over-Quarter Guidance:

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

Recent Developments / Announcements

Sep 3, UMC and Chipbond to Establish Strategic Cooperation Through the2021 Exchange of New Share Issuance

Jun 1, UMC Pledges Net Zero Carbon Emissions by 20502021

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

Conference Call / Webcast Announcement

Wednesday, October 27, 2021

Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM (London)



Dial-in numbers and Access Codes:

USA Toll Free: 1-866 836-0101

Taiwan Number: 02-2192-8016

Other Areas: +886-2-2192-8016



Access Code: UMC

A live webcast and replay of the 3Q21 results announcement will be available at www.umc.com under the "Investors / Events" section.

About UMC

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

Safe Harbor Statements

This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding anticipated financial results for the third quarter of 2021; the expected wafer shipment and ASP; the anticipated annual budget; capex strategies; environmental protection goals and water management strategies; impact of foreign currency exchange rates; expected foundry capacities; the ability to obtain new business opportunities; and information under the heading "Third Quarter of 2021 Outlook and Guidance."

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) dependence upon the frequent introduction of new services and technologies based on the latest developments in the industry in which UMC operates; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international business activities; (iv) dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including natural disasters, terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risk factors is included in UMC's filings with the United States Securities and Exchange Commission, including its Annual Report on Form 20-F. All information provided in this release is as of the date of this release and are based on assumptions that UMC believes to be reasonable as of this date, and UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

The financial statements included in this release are prepared and published in accordance with Taiwan International Financial Reporting Standards, or TIFRSs, recognized by the Financial Supervisory Commission in the ROC, which is different from International Financial Reporting Standards, or IFRSs, issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from generally accepted accounting principles in the ROC and generally accepted accounting principles in the United States.

- FINANCIAL TABLES TO FOLLOW -

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIESConsolidated Condensed Balance SheetAs of September 30, 2021Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) September 30, 2021 US$ NT$ %AssetsCurrent assetsCash and cash equivalents 4,063 113,105 26.4%

Notes & Accounts receivable, net 1,185 32,986 7.7%

Inventories, net 832 23,150 5.4%

Other current assets 1,521 42,363 9.8%

Total current assets 7,601 211,604 49.3%

Non-current assetsFunds and investments 2,256 62,817 14.7%

Property, plant and equipment 4,515 125,702 29.3%

Right-of-use assets 260 7,239 1.7%

Other non-current assets 770 21,431 5.0%

Total non-current assets 7,801 217,189 50.7%

Total assets 15,402 428,793 100.0%

LiabilitiesCurrent liabilitiesShort-term loans 77 2,135 0.5%

Payables 1,322 36,800 8.6%

Current portion of long-term liabilities 795 22,128 5.2%

Other current liabilities 843 23,482 5.4%

Total current liabilities 3,037 84,545 19.7%

Non-current liabilitiesBonds payable 721 20,083 4.7%

Long-term loans 1,114 31,006 7.2%

Lease liabilities, noncurrent 166 4,622 1.1%

Other non-current liabilities 1,111 30,933 7.2%

Total non-current liabilities 3,112 86,644 20.2%

Total liabilities 6,149 171,189 39.9%

EquityEquity attributable to the parent companyCapital 4,462 124,233 29.0%

Additional paid-in capital 1,555 43,293 10.0%

Retained earnings and other components of equity 3,234 90,043 21.0%

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

Total equity attributable to the parent company 9,247 257,449 60.0%

Non-controlling interests 6 155 0.1%

Total equity 9,253 257,604 60.1%

Total liabilities and equity 15,402 428,793 100.0%

Note?New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2021 exchange rate of NT $27.84 per U.S. Dollar.Note?New Taiwan Dollars have been translated into U.S. Dollars at the September30, 2021 exchange rate of NT $27.84 per U.S. Dollar.UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIESConsolidated Condensed Statements of Comprehensive IncomeFigures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)Except Per Share and Per ADS DataYear over Year ComparisonQuarter over Quarter ComparisonThree-Month Period EndedThree-Month Period EndedSeptember 30, 2021September 30, 2020Chg.September 30, 2021June 30, 2021Chg.US$NT$US$NT$%US$NT$US$NT$%Operating revenues2,008

55,907

1,612

44,870

24.6%

2,008

55,907

1,829

50,908

9.8%

Operating costs(1,270)

(35,363)

(1,261)

(35,101)

0.7%

(1,270)

(35,363)

(1,258)

(35,000)

1.0%

Gross profit738

20,544

351

9,769

110.3%

738

20,544

571

15,908

29.1%

36.8%

36.8%

21.8%

21.8%

36.8%

36.8%

31.3%

31.3%

Operating expenses- Sales and marketing expenses(44)

(1,212)

(36)

(1,009)

20.1%

(44)

(1,212)

(41)

(1,131)

7.2%

- General and administrative expenses(75)

(2,119)

(58)

(1,614)

31.2%

(75)

(2,119)

(68)

(1,901)

11.5%

- Research and development expenses(119)

(3,303)

(119)

(3,314)

(0.3%)

(119)

(3,303)

(114)

(3,168)

4.3%

- Expected credit impairment gain (loss)(0)

(2)

15

429

-

(0)

(2)

(0)

(1)

46.7%

Subtotal(238)

(6,636)

(198)

(5,508)

20.5%

(238)

(6,636)

(223)

(6,201)

7.0%

Net other operating income and expenses44

1,227

103

2,872

(57.3%)

44

1,227

58

1,606

(23.6%)

Operating income544

15,135

256

7,133

112.2%

544

15,135

406

11,313

33.8%

27.1%

27.1%

15.9%

15.9%

27.1%

27.1%

22.2%

22.2%

Net non-operating income and expenses155

4,317

75

2,074

108.2%

155

4,317

68

1,881

129.5%

Income from continuing operationsbefore income tax699

19,452

331

9,207

111.3%

699

19,452

474

13,194

47.4%

34.8%

34.8%

20.5%

20.5%

34.8%

34.8%

25.9%

25.9%

Income tax expenses(76)

(2,100)

(7)

(197)

966.1%

(76)

(2,100)

(48)

(1,327)

58.2%

Net income623

17,352

324

9,010

92.6%

623

17,352

426

11,867

46.2%

31.0%

31.0%

20.1%

20.1%

31.0%

31.0%

23.3%

23.3%

Other comprehensive income (loss)(13)

(370)

50

1,390

-

(13)

(370)

(69)

(1,935)

(80.9%)

Total comprehensive income (loss)610

16,982

374

10,400

63.3%

610

16,982

357

9,932

71.0%

Net income attributable to:??Shareholders of the parent627

17,460

327

9,106

91.7%

627

17,460

429

11,943

46.2%

??Non-controlling interests(4)

(108)

(3)

(96)

12.0%

(4)

(108)

(3)

(76)

41.6%

Comprehensive income (loss) attributable to:??Shareholders of the parent614

17,090

377

10,497

62.8%

614

17,090

359

10,008

70.8%

??Non-controlling interests(4)

(108)

(3)

(97)

12.0%

(4)

(108)

(2)

(76)

41.6%

Earnings per share-basic0.051

1.43

0.027

0.75

0.051

1.43

0.035

0.98

Earnings per ADS (2)0.257

7.15

0.135

3.75

0.257

7.15

0.176

4.90

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

12,108

12,206

12,206

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 September 30, 2021 September 30, 2020 Chg. September 30, 2021 June 30, 2021 Chg. US$ NT$ US$ NT$ % US$ NT$ US$ NT$ %Operating 2,008 55,907 1,612 44,870 24.6% 2,008 55,907 1,829 50,908 9.8%revenuesOperating costs (1,270) (35,363) (1,261) (35,101) 0.7% (1,270) (35,363) (1,258) (35,000) 1.0%

Gross profit 738 20,544 351 9,769 110.3% 738 20,544 571 15,908 29.1%

36.8% 36.8% 21.8% 21.8% 36.8% 36.8% 31.3% 31.3%

Operatingexpenses- Sales and (44) (1,212) (36) (1,009) 20.1% (44) (1,212) (41) (1,131) 7.2%marketingexpenses- General and (75) (2,119) (58) (1,614) 31.2% (75) (2,119) (68) (1,901) 11.5%administrativeexpenses- Research and (119) (3,303) (119) (3,314) (0.3%) (119) (3,303) (114) (3,168) 4.3%developmentexpenses- Expectedcredit (0) (2) 15 429 - (0) (2) (0) (1) 46.7%impairment gain(loss)Subtotal (238) (6,636) (198) (5,508) 20.5% (238) (6,636) (223) (6,201) 7.0%

Net otheroperating 44 1,227 103 2,872 (57.3%) 44 1,227 58 1,606 (23.6%)income andexpensesOperating 544 15,135 256 7,133 112.2% 544 15,135 406 11,313 33.8%income 27.1% 27.1% 15.9% 15.9% 27.1% 27.1% 22.2% 22.2%

Netnon-operating 155 4,317 75 2,074 108.2% 155 4,317 68 1,881 129.5%income andexpensesIncome fromcontinuing 699 19,452 331 9,207 111.3% 699 19,452 474 13,194 47.4%operationsbefore incometax 34.8% 34.8% 20.5% 20.5% 34.8% 34.8% 25.9% 25.9%

Income tax (76) (2,100) (7) (197) 966.1% (76) (2,100) (48) (1,327) 58.2%expensesNet income 623 17,352 324 9,010 92.6% 623 17,352 426 11,867 46.2%

31.0% 31.0% 20.1% 20.1% 31.0% 31.0% 23.3% 23.3%

Other (13) (370) 50 1,390 - (13) (370) (69) (1,935) (80.9%)comprehensiveincome (loss) Total 610 16,982 374 10,400 63.3% 610 16,982 357 9,932 71.0%comprehensiveincome (loss) Net incomeattributableto:??Shareholders 627 17,460 327 9,106 91.7% 627 17,460 429 11,943 46.2%of the parent?? (4) (108) (3) (96) 12.0% (4) (108) (3) (76) 41.6%Non-controllinginterests Comprehensiveincome (loss)attributableto:??Shareholders 614 17,090 377 10,497 62.8% 614 17,090 359 10,008 70.8%of the parent?? (4) (108) (3) (97) 12.0% (4) (108) (2) (76) 41.6%Non-controllinginterests Earnings per 0.051 1.43 0.027 0.75 0.051 1.43 0.035 0.98share-basicEarnings per 0.257 7.15 0.135 3.75 0.257 7.15 0.176 4.90ADS ^(2)Weightedaverage numberof sharesoutstanding (in 12,206 12,108 12,206 12,206millions)Notes:(1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2021 exchange rate of NT $27.84 per U.S. Dollar.(2) 1 ADS equals 5 common shares.Notes:(1) New Taiwan Dollars have been translated into U.S. Dollars at the September30, 2021 exchange rate of NT $27.84 per U.S. Dollar.(2) 1 ADS equals 5 common shares.UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIESConsolidated Condensed Statements of Comprehensive IncomeFigures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)Except Per Share and Per ADS DataFor the Three-Month Period EndedFor the Nine-Month Period EndedSeptember 30, 2021September 30, 2021US$NT$%US$NT$%Operating revenues2,008

55,907

100.0%

5,528

153,911

100.0%

Operating costs(1,270)

(35,363)

(63.2%)

(3,770)

(104,965)

(68.2%)

Gross profit738

20,544

36.8%

1,758

48,946

31.8%

Operating expenses- Sales and marketing expenses(44)

(1,212)

(2.2%)

(123)

(3,432)

(2.2%)

- General and administrative expenses(75)

(2,119)

(3.8%)

(209)

(5,825)

(3.8%)

- Research and development expenses(119)

(3,303)

(5.9%)

(342)

(9,521)

(6.2%)

- Expected credit impairment gain (loss)(0)

(2)

(0.0%)

0

9

0.0%

Subtotal(238)

(6,636)

(11.9%)

(674)

(18,769)

(12.2%)

Net other operating income and expenses44

1,227

2.2%

140

3,893

2.5%

Operating income544

15,135

27.1%

1,224

34,070

22.1%

Net non-operating income and expenses155

4,317

7.7%

343

9,559

6.3%

Income from continuing operationsbefore income tax699

19,452

34.8%

1,567

43,629

28.4%

Income tax expense(76)

(2,100)

(3.8%)

(162)

(4,522)

(3.0%)

Net income623

17,352

31.0%

1,405

39,107

25.4%

Other comprehensive income (loss)(13)

(370)

(0.6%)

45

1,251

0.8%

Total comprehensive income (loss)610

16,982

30.4%

1,450

40,358

26.2%

Net income attributable to:??Shareholders of the parent627

17,460

31.2%

1,431

39,831

25.9%

??Non-controlling interests(4)

(108)

(0.2%)

(26)

(724)

(0.5%)

Comprehensive income (loss) attributable to:??Shareholders of the parent614

17,090

30.6%

1,476

41,082

26.7%

??Non-controlling interests(4)

(108)

(0.2%)

(26)

(724)

(0.5%)

Earnings per share-basic0.051

1.43

0.117

3.26

Earnings per ADS (2)0.257

7.15

0.585

16.30

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

12,206

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 Nine-Month Period Ended Ended September 30, 2021 September 30, 2021 US$ NT$ % US$ NT$ %Operating 2,008 55,907 100.0% 5,528 153,911 100.0%revenuesOperating costs (1,270) (35,363) (63.2%) (3,770) (104,965) (68.2%)

Gross profit 738 20,544 36.8% 1,758 48,946 31.8%

Operatingexpenses- Sales and (44) (1,212) (2.2%) (123) (3,432) (2.2%)marketingexpenses- General and (75) (2,119) (3.8%) (209) (5,825) (3.8%)administrativeexpenses- Research and (119) (3,303) (5.9%) (342) (9,521) (6.2%)developmentexpenses- Expected credit (0) (2) (0.0%) 0 9 0.0%impairment gain(loss)Subtotal (238) (6,636) (11.9%) (674) (18,769) (12.2%)

Net other 44 1,227 2.2% 140 3,893 2.5%operating incomeand expensesOperating income 544 15,135 27.1% 1,224 34,070 22.1%

Net non-operating 155 4,317 7.7% 343 9,559 6.3%income andexpensesIncome fromcontinuing 699 19,452 34.8% 1,567 43,629 28.4%operationsbefore income tax Income tax (76) (2,100) (3.8%) (162) (4,522) (3.0%)expenseNet income 623 17,352 31.0% 1,405 39,107 25.4%

Other (13) (370) (0.6%) 45 1,251 0.8%comprehensiveincome (loss) Total 610 16,982 30.4% 1,450 40,358 26.2%comprehensiveincome (loss) Net incomeattributable to:??Shareholders of 627 17,460 31.2% 1,431 39,831 25.9%the parent??Non-controlling (4) (108) (0.2%) (26) (724) (0.5%)interests Comprehensiveincome (loss)attributable to:??Shareholders of 614 17,090 30.6% 1,476 41,082 26.7%the parent??Non-controlling (4) (108) (0.2%) (26) (724) (0.5%)interests Earnings per 0.051 1.43 0.117 3.26share-basicEarnings per ADS 0.257 7.15 0.585 16.30^(2) Weighted averagenumber of shares 12,206 12,206outstanding (inmillions)Notes:(1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2021 exchange rate of NT $27.84 per U.S. Dollar.(2) 1 ADS equals 5 common shares.Notes:(1) New Taiwan Dollars have been translated into U.S. Dollars at the September30, 2021 exchange rate of NT $27.84 per U.S. Dollar.(2) 1 ADS equals 5 common shares.UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIESConsolidated Condensed Statement of Cash FlowsFor The Nine-Month Period Ended September 30, 2021Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)US$NT$Cash flows from operating activities :Net income before tax1,567

43,629

Depreciation & Amortization1,266

35,258

Share of profit of associates and joint ventures(216)

(6,004)

Income tax paid(62)

(1,715)

Changes in working capital & others(273)

(7,638)

Net cash provided by operating activities2,282

63,530

Cash flows from investing activities :Acquisition of property, plant and equipment(1,197)

(33,328)

Acquisition of intangible assets(66)

(1,825)

Increase in other financial assets(595)

(16,578)

Others104

2,906

Net cash used in investing activities(1,754)

(48,825)

Cash flows from financing activities :Decrease in short-term loans(314)

(8,750)

Proceeds from bonds issued746

20,761

Redemption of bonds(72)

(2,000)

Proceeds from long-term loans524

14,591

Repayments of long-term loans(336)

(9,367)

Increase in guarantee deposits407

11,324

Cash dividends(714)

(19,870)

Others(21)

(565)

Net cash provided by financing activities220

6,124

Effect of exchange rate changes on cash and cash equivalents(63)

(1,772)

Net increase in cash and cash equivalents685

19,057

Cash and cash equivalents at beginning of period3,378

94,048

Cash and cash equivalents at end of period4,063

113,105

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIESConsolidated Condensed Statement of Cash FlowsFor The Nine-Month Period Ended September 30, 2021Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) US$ NT$Cash flows from operating activities :Net income before tax 1,567 43,629

Depreciation & Amortization 1,266 35,258

Share of profit of associates and joint ventures (216) (6,004)

Income tax paid (62) (1,715)

Changes in working capital & others (273) (7,638)

Net cash provided by operating activities 2,282 63,530

Cash flows from investing activities :Acquisition of property, plant and equipment (1,197) (33,328)

Acquisition of intangible assets (66) (1,825)

Increase in other financial assets (595) (16,578)

Others 104 2,906

Net cash used in investing activities (1,754) (48,825)

Cash flows from financing activities :Decrease in short-term loans (314) (8,750)

Proceeds from bonds issued 746 20,761

Redemption of bonds (72) (2,000)

Proceeds from long-term loans 524 14,591

Repayments of long-term loans (336) (9,367)

Increase in guarantee deposits 407 11,324

Cash dividends (714) (19,870)

Others (21) (565)

Net cash provided by financing activities 220 6,124

Effect of exchange rate changes on cash and cash (63) (1,772)equivalentsNet increase in cash and cash equivalents 685 19,057

Cash and cash equivalents at beginning of period 3,378 94,048

Cash and cash equivalents at end of period 4,063 113,105

Note: New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2021 exchange rate of NT $27.84 per U.S. Dollar.Note: New Taiwan Dollars have been translated into U.S. Dollars at theSeptember 30, 2021 exchange rate of NT $27.84 per U.S. Dollar.________________________

1Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending September 30, 2021, the three-month period ending June 30, 2021, and the equivalent three-month period that ended September 30, 2020. For all 3Q21 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the September 30, 2021 exchange rate of NT$ 27.84 per U.S. Dollar.

2 Revenue in this section represents wafer sales

3 Utilization Rate = Quarterly Wafer Out / Quarterly Capacity

4 Estimated capacity numbers are based on calculated maximum output rather than designed capacity. The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp-up.

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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