Business Wire | Jan 25, 2022 03:30AM EST

UMC Reports Fourth Quarter 2021 Results

Jan. 25, 2022

TAIPEI, Taiwan--(BUSINESS WIRE)--Jan. 25, 2022--United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the fourth quarter of 2021.

Fourth quarter consolidated revenue was NT$59.10 billion, increasing 5.7% QoQ from NT$55.91 billion in 3Q21. Compared to a year ago, 4Q21 revenue grew 30.5% YoY from NT$45.30 billion in 4Q20. Consolidated gross margin for 4Q21 was 39.1%. Net income attributable to the shareholders of the parent was NT$15.95 billion, with earnings per ordinary share of NT$1.30.

Jason Wang, UMC co-president, said, "In the fourth quarter, strong demand continued to drive full loading across our fabs, while overall wafer shipments grew 1.7% QoQ to 2.55 million 8-inch equivalents. For the full year, revenue in 2021 rose by more than 20% YoY and operating income reached a record high, driven by a surge in our 28nm business. The 75% YoY revenue increase from 28nm technologies strengthened our overall wafer ASP and reflected the robust chip demand related to 5G, AIoT, and automotive mega-trends. It also substantially contributed to the improvement in the company's financial structure. Our healthy 28nm product pipeline will further diversify our portfolio and customer base, and enable UMC to capture additional market share."

Co-president Wang said, "Looking ahead into Q1 2022, we anticipate that demand across all nodes in UMC's addressable markets will continue to outpace supply. Our growth in the long term is supported by industry megatrends, which will be catapulted by structural changes occurring in the industry. We will continue to deepen collaboration with customers with our differentiated specialty technologies, manufacturing excellence, and capacity expansions closely linked to the demands of our partners. At the same time, we will keep pushing for cost reduction and meticulously manage our CapEx in order to deliver sustainable and healthy returns for our shareholders."

Co-president Wang added, "We were thrilled to receive a number of recognitions recently for our relentless focus on sustainability. Following our net-zero pledge in June, UMC was ranked no.1 among all semiconductor constituents listed on the Dow Jones Sustainability Indices (DJSI), which has included the company on its World Index for 14 straight years. We were also awarded Taiwan Intellectual Property Management System (TIPS) certification, Taiwan's official IP management benchmark for enterprises, underscoring our commitment to strengthen overall corporate governance. Sustainability is at the core of everything we do, and we will continue prioritizing resources to drive critical initiatives in our ESG roadmap."

Summary of Operating Results

Operating Results

(Amount: NT$ million) 4Q21 3Q21 QoQ % 4Q20 YoY % change change

Operating Revenues 59,100 55,907 5.7 45,296 30.5

Gross Profit 23,103 20,544 12.5 10,848 113.0

Operating Expenses (6,821 ) (6,636 ) 2.8 (6,335 ) 7.7

Net Other Operating Income and 1,334 1,227 8.7 1,102 21.1 Expenses

Operating Income 17,616 15,135 16.4 5,615 213.7

Net Non-Operating Income and 558 4,317 (87.1 ) 5,619 (90.1 )Expenses

Net Income Attributable to 15,949 17,460 (8.7 ) 11,196 42.5 Shareholders of the Parent

EPS (NT$ per share) 1.30 1.43 0.92

(US$ per ADS) 0.235 0.258 0.166

Fourth quarter operating revenues increased by 5.7% sequentially to NT$59.10 billion which was partly attributed to enhanced product mix and higher wafer shipments. Revenue contribution from 40nm and below technologies represented 38% of wafer revenue. Gross profit grew 12.5% QoQ to NT$23.10 billion, or 39.1% of revenue. Operating expenses was up 2.8% to NT$6.82 billion. Net other operating income reached NT$1.33 billion. Net non-operating income was NT$558 million. Net income attributable to shareholders of the parent amounted to NT$15.95 billion.

Earnings per ordinary share for the quarter was NT$1.30. Earnings per ADS was US$0.235. The basic weighted average number of outstanding shares in 4Q21 was 12,254,114,875, compared with 12,206,292,756 shares in 3Q21 and 12,206,292,756 shares in 4Q20. The diluted weighted average number of outstanding shares was 12,489,949,678 in 4Q21, compared with 12,411,100,649 shares in 3Q21 and 12,359,115,536 shares in 4Q20. The fully diluted shares counted on December 31, 2021 were approximately 12,519,315,000.

Detailed Financials Section

COGS & Expenses

(Amount: NT$ million) 4Q21 3Q21 QoQ % 4Q20 YoY % change change

Operating Revenues 59,100 55,907 5.7 45,296 30.5

COGS (35,997 ) (35,363 ) 1.8 (34,448 ) 4.5

Depreciation (10,122 ) (9,900 ) 2.2 (10,436 ) (3.0 )

Other Mfg. Costs (25,875 ) (25,463 ) 1.6 (24,012 ) 7.8

Gross Profit 23,103 20,544 12.5 10,848 113.0

Gross Margin (%) 39.1 % 36.8 % 23.9 %

Operating Expenses (6,821 ) (6,636 ) 2.8 (6,335 ) 7.7

G&A (2,164 ) (2,119 ) 2.2 (1,966 ) 10.0

Sales & Marketing (1,240 ) (1,212 ) 2.3 (1,175 ) 5.5

R&D (3,414 ) (3,303 ) 3.4 (3,194 ) 6.9

Expected Credit Impairment Gain (3 ) (2 ) 37.8 0 - (Loss)

Net Other Operating Income & 1,334 1,227 8.7 1,102 21.1 Expenses

Operating Income 17,616 15,135 16.4 5,615 213.7

Operating revenues increased to NT$59.10 billion. COGS was up 1.8 % QoQ to NT$36.00 billion, which included 2.2% sequential increase in depreciation. Gross profit grew 12.5% QoQ to NT$23.10 billion, partly due to enhanced product mix. Operating expenses increased 2.8% QoQ to NT$6.82 billion, as R&D increased 3.4% QoQ to NT$3.41 billion, representing 5.8% of revenue. Net other operating income was NT$1.33 billion. In 4Q21, operating income grew 16.4% QoQ to NT$17.62 billion.

Non-Operating Income and Expenses

(Amount: NT$ million) 4Q21 3Q21 4Q20

Non-Operating Income and Expenses 558 4,317 5,619

Net Interest Income and Expenses (343 ) (367 ) (278 )

Net Investment Gain and Loss 2,689 4,534 5,703

Exchange Gain and Loss 312 164 199

Other Gain and Loss (2,100 ) (14 ) (5 )

Net non-operating income in 4Q21 was NT$558 million, primarily reflecting NT$2.69 billion in net investment gain, offset by a NT$2.10 billion in other loss which included the one-time legal settlement payment and the losses of financial instrument transaction.

Cash Flow Summary

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

Dec. 31, 2021 Sep. 30, 2021

Cash Flow from Operating Activities 26,822 22,125

Net income before tax 18,174 19,452

Depreciation & Amortization 11,817 11,754

Share of profit of associates and joint (2,491 ) (3,356 )ventures

Income tax paid (222 ) (1,365 )

Changes in working capital & others (456 ) (4,360 )

Cash Flow from Investing Activities (13,339 ) (23,222 )

Acquisition of PP&E (14,707 ) (17,457 )

Acquisition of intangible assets (100 ) (371 )

Decrease (Increase) in other financial assets 1,589 (5,677 )

Others (121 ) 283

Cash Flow from Financing Activities 6,367 (9,694 )

Bank loans (1,359 ) (4,510 )

Bonds Issued 5,000 11,161

Increase in deposits-in 2,896 3,738

Cash dividends (1 ) (19,870 )

Others (169 ) (213 )

Effect of Exchange Rate (333 ) (104 )

Net Cash Flow 19,517 (10,895 )

Beginning balance 113,105 124,000

Ending balance 132,622 113,105

In 4Q21, cash inflow from operating activities was NT$26.82 billion. Cash outflow from investing activities amounted to NT$13.34 billion, which included NT$14.95 billion in capital expenditure, resulting in free cash flow of NT$11.87 billion. Cash inflow from financing reached NT$6.37 billion, primarily from a NT$5.00 billion in bond issuance and a NT$2.90 billion payment as capacity deposit for 12A P6 offset by a NT$1.36 billion in repayment in bank loans. Net cash inflow in 4Q21 totaled NT$19.52 billion. Over the next 12 months, the company expects to repay NT$8.70 billion in bank loans.

Current Assets

(Amount: NT$ billion) 4Q21 3Q21 4Q20

Cash and Cash Equivalents 132.62 113.11 94.05

Notes & Accounts Receivable 35.19 32.99 27.27

Days Sales Outstanding 53 51 55

Inventories, net 23.01 23.15 22.55

Days of Inventory 59 59 60

Total Current Assets 233.27 211.60 164.31

Cash and cash equivalents increased to NT$132.62 billion. Days of inventory remained at 59 days.

Liabilities

(Amount: NT$ billion) 4Q21 3Q21 4Q20

Total Current Liabilities 105.45 84.55 78.24

Notes & Accounts Payable 8.36 8.26 7.86

Short-Term Credit / Bonds 39.26 24.26 38.04

Payables on Equipment 7.88 6.72 5.45

Other 49.95 45.31 26.89

Long-Term Credit / Bonds 39.83 51.09 24.77

Long-Term Investment Liabilities 8.25 8.14 20.75

Total Liabilities 183.22 171.19 141.74

Debt to Equity 65 % 66 % 60 %

Current liabilities increased to NT$105.45 billion, which included a NT$39.26 billion in short-term credit/bonds. Long-term credit/bonds decreased to NT$39.83 billion. Total liabilities increased to NT$183.22 billion, leading to a debt to equity ratio of 65%.

Analysis of Revenue2

Revenue Breakdown by Region

Region 4Q21 3Q21 2Q21 1Q21 4Q20

North America 21% 22% 22% 23% 29%

Asia Pacific 66% 65% 63% 63% 61%

Europe 7% 7% 8% 8% 5%

Japan 6% 6% 7% 6% 5%

Revenue from Asia-Pacific increased to 66% while business from North America accounted for 21% of sales. Business from Europe was 7% while contribution from Japan remained at 6%.

Revenue Breakdown by Geometry

Geometry 4Q21 3Q21 2Q21 1Q21 4Q20

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

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

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

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

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

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

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

0.18um<x<=0.35um 7% 8% 8% 8% 8%

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

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

Revenue Breakdown by Customer Type

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

Fabless 86% 86% 84% 86% 87%

IDM 14% 14% 16% 14% 13%

Revenue from fabless customers accounted for 86% of revenue.

Revenue Breakdown by Application ^(1)

Application 4Q21 3Q21 2Q21 1Q21 4Q20

Computer 17% 17% 17% 16% 16%

Communication 46% 46% 47% 46% 49%

Consumer 26% 27% 26% 27% 25%

Others 11% 10% 10% 11% 10%

Revenue from the communication segment remained unchanged at 46%, while business from computer applications also stayed at 17%. Business from consumer applications declined to 26% as other segments accounted represented 11% 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 4Q21.

(To view blended ASP trend, please click here for 4Q21 ASP)

Shipment and Utilization Rate3

Wafer Shipments

4Q21 3Q21 2Q21 1Q21 4Q20

Wafer Shipments 2,546 2,503 2,440 2,372 2,293(8" K equivalents)



Quarterly Capacity Utilization Rate

4Q21 3Q21 2Q21 1Q21 4Q20

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

Total Capacity 2,419 2,383 2,370 2,280 2,311(8" K equivalents)

Wafer shipments increased 1.7% QoQ to 2,546K in the fourth quarter, while quarterly capacity grew to 2,419K. Overall utilization rate in 4Q21 surpassed 100%.

Capacity4

Overall capacity in the fourth quarter grew by 1.5% QoQ to 2,419K 8-inch equivalent wafers. Capacity will remain flattish for the first quarter of 2022 at 2,420K 8-inch equivalent wafers.

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

FAB Geometry 2021 2020 2019 2018 FAB 1Q22E 4Q21 3Q21 2Q21 (um)

WTK 6" 5 - 0.25 329 371 370 396 WTK 82 81 80 84

8A 8" 3 - 0.18 755 802 825 825 8A 189 190 190 190

8C 8" 0.35 - 0.11 459 452 436 383 8C 113 115 115 115

8D 8" 0.18 - 0.09 380 371 359 347 8D 101 95 95 95

8E 8" 0.6 - 0.15 457 449 426 418 8E 116 115 115 115

8F 8" 0.18 - 0.11 514 485 434 431 8F 136 137 137 122

8S 8" 0.25 - 0.11 408 373 372 372 8S 109 102 102 102

8N 8" 0.5 - 0.11 917 917 831 771 8N 231 232 230 230

12A 12" 0.13 - 0.014 1,070 1,044 997 997 12A 267 271 271 271

12i 12" 0.13 - 0.040 641 628 595 555 12i 162 164 160 160

12X 12" 0.080 - 0.022 284 217 203 183 12X 77 78 74 74

12M 12" 0.13 - 0.040 395 391 98 - 12M 108 104 98 98

Total^(1) 9,453 9,188 8,148 7,673 Total 2,420 2,419 2,383 2,370

YoY Growth Rate 3% 13% 6% 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 2021 2020 2019 2018 2017

CAPEX $ 1.8 $ 1.0 $ 0.6 $ 0.7 $ 1.4

2022 CAPEX Plan8"

12"

Total

10%

90%

US$3.0 billion

CAPEX spending in 4Q21 reached US$537 million as full year 2021 CAPEX amounted to US$1.8 billion. 2022 cash-based CAPEX budget is US$3.0 billion, which including the company's collaborative Fab 12A P6 expansion plan with customers.

Brief Summary of Full Year 2021 Consolidated Results

2022 CAPEX Plan8" 12" Total

10% 90% US$3.0 billion

CAPEX spending in 4Q21 reached US$537 million as full year 2021 CAPEX amounted to US$1.8 billion. 2022 cash-based CAPEX budget is US$3.0 billion, which including the company's collaborative Fab 12A P6 expansion plan with customers.

Brief Summary of Full Year 2021 Consolidated Results

Operating Results

(Amount: NT$ million) 2021 2020 YoY % change

Operating Revenues 213,011 176,821 20.5

Gross Profit 72,050 38,997 84.8

Operating Expenses (25,590 ) (23,244 ) 10.1

Net Other Operating Income and Expenses 5,226 6,254 (16.4 )

Operating Income 51,686 22,007 134.9

Net Non-Operating Income and Expenses 10,117 5,919 70.9

Income Tax (Expense) Benefit (6,691 ) (746 ) 797.3

Net Income Attributable to Shareholders of the 55,780 29,189 91.1 Parent

EPS (NT$ per share) ?4.57 2.42

(US$ per ADS) 0.826 0.437

* Consolidated revenue in NTD increased 20.5% YoY to NT$213.01 billion, from NT$176.82 billion in 2020. * Gross profit increased 84.8%, compared to a year ago, representing 33.8% of 2021 revenue. * Operating income grew 134.9% year on year, accounting for 24.3% of 2021 revenue. * Net income attributable to stockholders of the parent increased 91.1% to NT$55.78 billion in 2021. * EPS was NT$4.57, or EPADS of US$0.826 for 2021. * 28nm revenue dollar grew 75% compared to 2020, as contribution from 28nm technologies and below accounted for 20% in 2021.

Annual Sales Breakdown in Revenue for Foundry Segment

Region 2021 2020

North America 22% 30%

Asia Pacific 65% 57%

Europe 7% 6%

Japan 6% 7%



Technology 2021 2020

14nm and below 0% 0%

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

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

40nm<x<=65nm 19% 17%

65nm<x<=90nm 8% 11%

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

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

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

0.5um and above 2% 3%



Customer Type 2021 2020

Fabless 85% 88%

IDM 15% 12%



Application 2021 2020

Computer 17% 14%

Communication 46% 52%

Consumer 27% 24%

Others 10% 10%

First Quarter 2022 Outlook & Guidance

Quarter-over-Quarter Guidance:

* Wafer Shipments: To remain flat * ASP in USD: To increase by 5% * Gross Profit Margin: To be approximately 40% * Capacity Utilization: 100% * 2022 CAPEX: US$3.0 billion

Recent Developments / Announcements

Oct. 21, 2021 UMC and suppliers join forces to build a low carbon supply chain

Nov. 13, 2021 UMC leads semiconductor foundries in 2021 Dow Jones Sustainability Indices (DJSI)

Nov. 26, 2021 Micron and UMC announce global settlement

Dec. 30, 2021 UMC awarded Taiwan Intellectual Property Management System (TIPS) Certification

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

Conference Call / Webcast Announcement

Tuesday, January 25, 2022

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 4Q21 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 fourth 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 "Fourth 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 December 31, 2021 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) December 31, 2021 US$ NT$ % Assets Current assets Cash and cash equivalents 4,793 132,622 28.6 %

Accounts receivable, net 1,272 35,190 7.6 %

Inventories, net 832 23,011 5.0 %

Other current assets 1,533 42,451 9.0 %

Total current assets 8,430 233,274 50.2 %



Non-current assets

Funds and investments 2,622 72,552 15.6 %

Property, plant and equipment 4,696 129,942 28.0 %

Right-of-use assets 258 7,127 1.5 %

Other non-current assets 778 21,532 4.7 %

Total non-current assets 8,354 231,153 49.8 %

Total assets 16,784 464,427 100.0 %



Liabilities

Current liabilities

Short-term loans 70 1,924 0.4 %

Payables 1,515 41,911 9.0 %

Current portion of long-term liabilities 1,349 37,332 8.0 %

Other current liabilities 877 24,287 5.3 %

Total current liabilities 3,811 105,454 22.7 %



Non-current liabilities

Bonds payable 834 23,078 5.0 %

Long-term loans 605 16,752 3.6 %

Lease liabilities, noncurrent 163 4,511 1.0 %

Other non-current liabilities 1,209 33,429 7.2 %

Total non-current liabilities 2,811 77,770 16.8 %

Total liabilities 6,622 183,224 39.5 %



Equity

Equity attributable to the parent company

Capital 4,511 124,832 26.9 %

Additional paid-in capital 1,731 47,898 10.3 %

Retained earnings and other components of equity 3,913 108,250 23.3 %

Total equity attributable to the parent company 10,155 280,980 60.5 %

Non-controlling interests 7 223 0.0 %

Total equity 10,162 281,203 60.5 %

Total liabilities and equity 16,784 464,427 100.0 %

Note?New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2021 exchange rate of NT $27.67 per U.S. Dollar. UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIESConsolidated Condensed Statements of Comprehensive IncomeFigures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)Except Per Share and Per ADS DataYear over Year ComparisonQuarter over Quarter ComparisonThree-Month Period EndedThree-Month Period EndedDecember 31, 2021December 31, 2020Chg.December 31, 2021September 30, 2021Chg.US$NT$US$NT$%US$NT$US$NT$%Operating revenues2,136

59,100

1,637

45,296

30.5

%

2,136

59,100

2,020

55,907

5.7

%

Operating costs(1,301

)

(35,997

)

(1,245

)

(34,448

)

4.5

%

(1,301

)

(35,997

)

(1,278

)

(35,363

)

1.8

%

Gross profit835

23,103

392

10,848

113.0

%

835

23,103

742

20,544

12.5

%

39.1

%

39.1

%

23.9

%

23.9

%

39.1

%

39.1

%

36.8

%

36.8

%

Operating expenses- Sales and marketing expenses(45

)

(1,240

)

(42

)

(1,175

)

5.5

%

(45

)

(1,240

)

(44

)

(1,212

)

2.3

%

- General and administrative expenses(79

)

(2,164

)

(72

)

(1,966

)

10.0

%

(79

)

(2,164

)

(77

)

(2,119

)

2.2

%

- Research and development expenses(123

)

(3,414

)

(115

)

(3,194

)

6.9

%

(123

)

(3,414

)

(119

)

(3,303

)

3.4

%

- Expected credit impairment gain (loss)(0

)

(3

)

0

0

-

(0

)

(3

)

(0

)

(2

)

37.8

%

Subtotal(247

)

(6,821

)

(229

)

(6,335

)

7.7

%

(247

)

(6,821

)

(240

)

(6,636

)

2.8

%

Net other operating income and expenses49

1,334

40

1,102

21.1

%

49

1,334

45

1,227

8.7

%

Operating income637

17,616

203

5,615

213.7

%

637

17,616

547

15,135

16.4

%

29.8

%

29.8

%

12.4

%

12.4

%

29.8

%

29.8

%

27.1

%

27.1

%

Net non-operating income and expenses20

558

203

5,619

(90.1

%)

20

558

156

4,317

(87.1

%)

Income from continuing operationsbefore income tax657

18,174

406

11,234

61.8

%

657

18,174

703

19,452

(6.6

%)

30.8

%

30.8

%

24.8

%

24.8

%

30.8

%

30.8

%

34.8

%

34.8

%

Income tax expenses(79

)

(2,169

)

(12

)

(344

)

530.3

%

(79

)

(2,169

)

(76

)

(2,100

)

3.3

%

Net income578

16,005

394

10,890

47.0

%

578

16,005

627

17,352

(7.8

%)

27.1

%

27.1

%

24.0

%

24.0

%

27.1

%

27.1

%

31.0

%

31.0

%

Other comprehensive income (loss)105

2,880

138

3,831

(24.8

%)

105

2,880

(13

)

(370

)

-

Total comprehensive income (loss)683

18,885

532

14,721

28.3

%

683

18,885

614

16,982

11.2

%

Net income attributable to:??Shareholders of the parent576

15,949

405

11,196

42.5

%

576

15,949

631

17,460

(8.7

%)

??Non-controlling interests2

56

(11

)

(306

)

-

2

56

(4

)

(108

)

-

Comprehensive income (loss) attributable to:??Shareholders of the parent681

18,830

543

15,027

25.3

%

681

18,830

618

17,090

10.2

%

??Non-controlling interests2

55

(11

)

(306

)

-

2

55

(4

)

(108

)

-

Earnings per share-basic0.047

1.30

0.033

0.92

0.047

1.30

0.052

1.43

Earnings per ADS (2)0.235

6.50

0.166

4.60

0.235

6.50

0.258

7.15

Weighted average number of sharesoutstanding (in millions)12,254

12,206

12,254

12,206

Notes:(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2021 exchange rate of NT $27.67 per U.S. Dollar.(2) 1 ADS equals 5 common shares.UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIESConsolidated Condensed Statements of Comprehensive IncomeFigures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)Except Per Share and Per ADS Data Year over Year Comparison Quarter over Quarter Comparison Three-Month Period Ended Three-Month Period Ended December 31, 2021 December 31, 2020 Chg. December 31, 2021 September 30, 2021 Chg. US$ NT$ US$ NT$ % US$ NT$ US$ NT$ %Operating 2,136 59,100 1,637 45,296 30.5 % 2,136 59,100 2,020 55,907 5.7 %revenuesOperating costs (1,301 ) (35,997 ) (1,245 ) (34,448 ) 4.5 % (1,301 ) (35,997 ) (1,278 ) (35,363 ) 1.8 %

Gross profit 835 23,103 392 10,848 113.0 % 835 23,103 742 20,544 12.5 %

39.1 % 39.1 % 23.9 % 23.9 % 39.1 % 39.1 % 36.8 % 36.8 %

Operating expenses- Sales and (45 ) (1,240 ) (42 ) (1,175 ) 5.5 % (45 ) (1,240 ) (44 ) (1,212 ) 2.3 %marketingexpenses- General and (79 ) (2,164 ) (72 ) (1,966 ) 10.0 % (79 ) (2,164 ) (77 ) (2,119 ) 2.2 %administrativeexpenses- Research and (123 ) (3,414 ) (115 ) (3,194 ) 6.9 % (123 ) (3,414 ) (119 ) (3,303 ) 3.4 %developmentexpenses- Expectedcredit (0 ) (3 ) 0 0 - (0 ) (3 ) (0 ) (2 ) 37.8 %impairment gain(loss)Subtotal (247 ) (6,821 ) (229 ) (6,335 ) 7.7 % (247 ) (6,821 ) (240 ) (6,636 ) 2.8 %

Net otheroperating 49 1,334 40 1,102 21.1 % 49 1,334 45 1,227 8.7 %income andexpensesOperating 637 17,616 203 5,615 213.7 % 637 17,616 547 15,135 16.4 %income 29.8 % 29.8 % 12.4 % 12.4 % 29.8 % 29.8 % 27.1 % 27.1 %



Netnon-operating 20 558 203 5,619 (90.1 %) 20 558 156 4,317 (87.1 %)income andexpensesIncome fromcontinuing 657 18,174 406 11,234 61.8 % 657 18,174 703 19,452 (6.6 %)operationsbefore incometax 30.8 % 30.8 % 24.8 % 24.8 % 30.8 % 30.8 % 34.8 % 34.8 %



Income tax (79 ) (2,169 ) (12 ) (344 ) 530.3 % (79 ) (2,169 ) (76 ) (2,100 ) 3.3 %expensesNet income 578 16,005 394 10,890 47.0 % 578 16,005 627 17,352 (7.8 %)

27.1 % 27.1 % 24.0 % 24.0 % 27.1 % 27.1 % 31.0 % 31.0 %



Other 105 2,880 138 3,831 (24.8 %) 105 2,880 (13 ) (370 ) - comprehensiveincome (loss)

Total 683 18,885 532 14,721 28.3 % 683 18,885 614 16,982 11.2 %comprehensiveincome (loss)

Net income attributableto:??Shareholders 576 15,949 405 11,196 42.5 % 576 15,949 631 17,460 (8.7 %)of the parent?? 2 56 (11 ) (306 ) - 2 56 (4 ) (108 ) - Non-controllinginterests

Comprehensiveincome (loss) attributableto:??Shareholders 681 18,830 543 15,027 25.3 % 681 18,830 618 17,090 10.2 %of the parent?? 2 55 (11 ) (306 ) - 2 55 (4 ) (108 ) - Non-controllinginterests

Earnings per 0.047 1.30 0.033 0.92 0.047 1.30 0.052 1.43 share-basicEarnings per 0.235 6.50 0.166 4.60 0.235 6.50 0.258 7.15 ADS ^(2)Weighted average numberof sharesoutstanding (in 12,254 12,206 12,254 12,206 millions) Notes:(1) New Taiwan Dollars have been translatedinto U.S. Dollars at the December 31, 2021exchange rate of NT $27.67 per U.S. Dollar.(2) 1 ADS equals 5 common shares.UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIESConsolidated Condensed Statements of Comprehensive IncomeFigures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)Except Per Share and Per ADS DataFor the Three-Month Period EndedFor the Twelve-Month Period EndedDecember 31, 2021December 31, 2021US$NT$%US$NT$%Operating revenues2,136

59,100

100.0

%

7,698

213,011

100.0

%

Operating costs(1,301

)

(35,997

)

(60.9

%)

(5,094

)

(140,961

)

(66.2

%)

Gross profit835

23,103

39.1

%

2,604

72,050

33.8

%

Operating expenses- Sales and marketing expenses(45

)

(1,240

)

(2.1

%)

(169

)

(4,672

)

(2.2

%)

- General and administrative expenses(79

)

(2,164

)

(3.6

%)

(289

)

(7,989

)

(3.7

%)

- Research and development expenses(123

)

(3,414

)

(5.8

%)

(467

)

(12,935

)

(6.1

%)

- Expected credit impairment gain (loss)(0

)

(3

)

(0.0

%)

0

6

0.0

%

Subtotal(247

)

(6,821

)

(11.5

%)

(925

)

(25,590

)

(12.0

%)

Net other operating income and expenses49

1,334

2.2

%

189

5,226

2.5

%

Operating income637

17,616

29.8

%

1,868

51,686

24.3

%

Net non-operating income and expenses20

558

1.0

%

366

10,117

4.7

%

Income from continuing operationsbefore income tax657

18,174

30.8

%

2,234

61,803

29.0

%

Income tax expense(79

)

(2,169

)

(3.7

%)

(242

)

(6,691

)

(3.1

%)

Net income578

16,005

27.1

%

1,992

55,112

25.9

%

Other comprehensive income (loss)105

2,880

4.9

%

149

4,132

1.9

%

Total comprehensive income (loss)683

18,885

32.0

%

2,141

59,244

27.8

%

Net income attributable to:??Shareholders of the parent576

15,949

27.0

%

2,016

55,780

26.2

%

??Non-controlling interests2

56

0.1

%

(24

)

(668

)

(0.3

%)

Comprehensive income (loss) attributable to:??Shareholders of the parent681

18,830

31.9

%

2,165

59,912

28.1

%

??Non-controlling interests2

55

0.1

%

(24

)

(668

)

(0.3

%)

Earnings per share-basic0.047

1.30

0.165

4.57

Earnings per ADS (2)0.235

6.50

0.826

22.85

Weighted average number of sharesoutstanding (in millions)12,254

12,218

Notes:(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2021 exchange rate of NT $27.67 per U.S. Dollar.(2) 1 ADS equals 5 common shares.UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIESConsolidated Condensed Statements of Comprehensive IncomeFigures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)Except Per Share and Per ADS Data For the Three-Month Period Ended For the Twelve-Month Period Ended December 31, 2021 December 31, 2021 US$ NT$ % US$ NT$ %Operating 2,136 59,100 100.0 % 7,698 213,011 100.0 %revenuesOperating costs (1,301 ) (35,997 ) (60.9 %) (5,094 ) (140,961 ) (66.2 %)

Gross profit 835 23,103 39.1 % 2,604 72,050 33.8 %





Operating expenses- Sales and (45 ) (1,240 ) (2.1 %) (169 ) (4,672 ) (2.2 %)marketingexpenses- General and (79 ) (2,164 ) (3.6 %) (289 ) (7,989 ) (3.7 %)administrativeexpenses- Research and (123 ) (3,414 ) (5.8 %) (467 ) (12,935 ) (6.1 %)developmentexpenses- Expectedcredit (0 ) (3 ) (0.0 %) 0 6 0.0 %impairment gain(loss)Subtotal (247 ) (6,821 ) (11.5 %) (925 ) (25,590 ) (12.0 %)

Net otheroperating 49 1,334 2.2 % 189 5,226 2.5 %income andexpensesOperating 637 17,616 29.8 % 1,868 51,686 24.3 %income

Netnon-operating 20 558 1.0 % 366 10,117 4.7 %income andexpensesIncome fromcontinuing 657 18,174 30.8 % 2,234 61,803 29.0 %operationsbefore incometax



Income tax (79 ) (2,169 ) (3.7 %) (242 ) (6,691 ) (3.1 %)expenseNet income 578 16,005 27.1 % 1,992 55,112 25.9 %



Other 105 2,880 4.9 % 149 4,132 1.9 %comprehensiveincome (loss)

Total 683 18,885 32.0 % 2,141 59,244 27.8 %comprehensiveincome (loss)

Net income attributableto:??Shareholders 576 15,949 27.0 % 2,016 55,780 26.2 %of the parent?? 2 56 0.1 % (24 ) (668 ) (0.3 %)Non-controllinginterests

Comprehensiveincome (loss) attributableto:??Shareholders 681 18,830 31.9 % 2,165 59,912 28.1 %of the parent?? 2 55 0.1 % (24 ) (668 ) (0.3 %)Non-controllinginterests

Earnings per 0.047 1.30 0.165 4.57 share-basicEarnings per 0.235 6.50 0.826 22.85 ADS ^(2)

Weightedaverage number 12,254 12,218 of sharesoutstanding (inmillions) Notes:(1) New Taiwan Dollars have beentranslated into U.S. Dollars at theDecember 31, 2021 exchange rate ofNT $27.67 per U.S. Dollar.(2) 1 ADS equals 5 common shares.UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIESConsolidated Condensed Statement of Cash FlowsFor The Twelve-Month Period Ended December 31, 2021Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)US$NT$Cash flows from operating activities :Net income before tax2,234

61,803

Depreciation & Amortization1,701

47,075

Share of profit of associates and joint ventures(307)

(8,495)

Income tax paid(70)

(1,937)

Changes in working capital & others(293)

(8,094)

Net cash provided by operating activities3,265

90,352

Cash flows from investing activities :Acquisition of property, plant and equipment(1,736)

(48,035)

Acquisition of intangible assets(70)

(1,925)

Increase in other financial assets(542)

(14,989)

Others101

2,786

Net cash used in investing activities(2,247)

(62,163)

Cash flows from financing activities :Decrease in short-term loans(324)

(8,974)

Proceeds from bonds issued931

25,761

Redemption of bonds(72)

(2,000)

Proceeds from long-term loans562

15,561

Repayments of long-term loans(415)

(11,472)

Increase in guarantee deposits514

14,219

Cash dividends(718)

(19,871)

Others(27)

(734)

Net cash provided by financing activities451

12,490

Effect of exchange rate changes on cash and cash equivalents(75)

(2,105)

Net increase in cash and cash equivalents1,394

38,574

Cash and cash equivalents at beginning of period3,399

94,048

Cash and cash equivalents at end of period4,793

132,622

Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2021 exchange rate of NT $27.67 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 December 31, 2021, the three-month period ending September 30, 2021, and the equivalent three-month period that ended December 31, 2020. For all 4Q21 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the December 31, 2021 exchange rate of NT$ 27.67 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