TAIPEI, Taiwan--(BUSINESS WIRE)--United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the fourth quarter of 2023. Fourth quarter consolidated revenue was NT$54.96 billion, decreasing 3.7% QoQ from NT$57.07 billion in 3Q23. Compared to a year ago, 4Q23 revenue declined 19.0% YoY from NT$67.84 billion in 4Q22. Consolidated gross margin for 4Q23 was 32.4%. Net income attributable t ...

Sunshine Seeds United Microelectronics (NYSE:UMC) shares have generally lagged the broader market in the past year and well behind semi leaders such as Nvidia (NVDA) and TSMC (TSM). UMC's revenue is estimated to be down about 21% in FY23 after growing 31% in FY22 due to a lackluster smartphone and PC market. The company does not currently have any advanced node processes for AI chip development, which can explain why it has not participated in the AI fueled rally. But, traditional end markets are showin ...

TAIPEI, Taiwan--(BUSINESS WIRE)--United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC”), today reported unaudited net sales for the month of December 2023. Revenues for December 2023 Period 2023 2022 Y/Y Change Y/Y (%) December 16,979,226 20,946,009 -3,966,783 -18.94% Jan.-Dec. 222,533,000 278,705,264 -56,172,264 -20.15% (*) All figures in thousands of New Taiwan Dollars (NT$), except for percentages. (**) All figures are consolidated Addit ...

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS WITH REPORT OF INDEPENDENT AUDITORS FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022 Address: No. 3 Li-Hsin 2nd Road, Hsinchu Science Park, Hsinchu, Taiwan, R.O.C. Telephone: 886-3-578-2258 The reader is advised that these consolidated financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in in ...

Financial Data and Key Metrics - Q3 2023 consolidated revenue was NT$57.1 billion, with a gross margin of 35.9% [5] - Net income attributable to shareholders was NT$16 billion, with earnings per share (EPS) of NT$1.29, slightly better than the previous quarter's NT$1.27 [5] - Shipments declined by 2% sequentially, and capacity utilization was 67% in Q3 2023 [5] - Revenue for the first nine months of 2023 was NT$167.5 billion, a 20.5% YoY decline, with gross margin dropping from 45.8% in 2022 to 35.8% in 2023 [6] - Cash on hand was NT$140 billion, with total assets exceeding NT$547 billion [7] Business Line Data and Key Metrics - Communication segment revenue increased to 46% in Q3 2023, while consumer segment revenue dropped from 26% in Q2 to 23% in Q3 [7] - Revenue from 49nm and below technologies reached 45% of total revenue in Q3, up from 41% in the previous quarter [8] - P6 facility capacity increased by more than 1% in Q3, with an expected 2% sequential growth in Q4 [8] Market Data and Key Metrics - Asia remained the largest revenue segment at 58%, growing 2 percentage points from the previous quarter [7] - Europe and North America revenue remained unchanged, while Japan declined by 2 percentage points [7] - Revenue from 22nm and 28nm technologies is expected to grow further in 2024, driven by the P6 facility [11] Company Strategy and Industry Competition - The company is focusing on product mix optimization and specialty technologies to maintain profitability [10] - UMC plans to introduce new specialty technologies to strengthen customer competitiveness and market positions [10] - The company expects demand to stabilize in Q4 2023, with cautious inventory management by customers [11] - UMC is expanding its 22nm and 28nm market share, particularly in applications like OLED drivers, Wi-Fi, and SoC processors [18] Management Commentary on Operating Environment and Future Outlook - Management noted a gradual stabilization in demand for PCs and smartphones, but automotive business conditions remain challenging [11] - For Q4 2023, wafer shipments are expected to decline by 5%, with flat ASPs and gross margins in the low 30% range [12] - The company anticipates increased revenue contributions from 22nm and 28nm technologies in 2024 [11] Other Important Information - CapEx for 2023 remains unchanged at $3 billion [8] - The company is monitoring market dynamics and adjusting pricing strategies, particularly in the 8-inch market [16][91] Q&A Session Summary Question: Factors affecting Q4 gross margin [13] - Answer: Q4 gross margin is expected to be in the low 30% range due to a decline in utilization rates and a 5% drop in shipments [14] Question: Pricing environment and competition [15] - Answer: UMC is aware of market dynamics and will adjust pricing for some segments, particularly in the 8-inch market, while maintaining pricing for 12-inch business [16] Question: 20nm competition and product opportunities [17] - Answer: UMC remains resilient in 22nm and 28nm markets, with plans to expand market share in applications like OLED drivers and Wi-Fi [18] Question: Segment-specific shipment decline in Q4 [20] - Answer: The decline is primarily attributed to the automotive market, while PC and smartphone demand remains stable [21] Question: Depreciation outlook [24] - Answer: Depreciation expenses are expected to increase in 2024 due to P6 expansion and new facility construction [25] Question: Long-term pricing strategy and LPA coverage [28] - Answer: UMC will maintain competitiveness through technology innovation, diversified capacity, and manufacturing excellence [29][30] Question: Capacity expansion plans [36] - Answer: UMC is ramping up P6 capacity and expects to reach design capacity by September 2024, with adjustments based on market dynamics [37] Question: 2024 revenue growth outlook [38] - Answer: UMC expects loading and wafer shipments to increase in 2024, but will provide quarterly guidance due to cautious customer behavior [39] Question: Gross margin outlook for 2024 [55] - Answer: Management aims to maintain profitability despite headwinds like rising depreciation and utility costs [57] Question: AI-related business opportunities [76] - Answer: UMC is preparing solutions for AI applications, including interposer technology, with capacity expected to double by Q1 2024 [77][78] Question: Wafer-to-wafer technology [81] - Answer: UMC is developing hybrid bonding technology for RF front-end modules, with expectations of future benefits [82] Question: Medium-term gross margin targets [85] - Answer: UMC aims to achieve gross margins in the high 30% to 40% range in high-loading situations [86] Question: 8-inch market evolution [89] - Answer: UMC expects 8-inch loading to improve with market recovery, but competition remains intense, particularly from 12-inch suppliers [91]

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS WITH REPORT OF INDEPENDENT AUDITORS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2023 AND 2022 Address: No. 3 Li-Hsin 2nd Road, Hsinchu Science Park, Hsinchu, Taiwan, R.O.C. Telephone: 886-3-578-2258 The reader is advised that these consolidated financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpre ...

United Microelectronics Corp (NYSE:UMC) Q2 2023 Earnings Conference Call July 26, 2023 5:00 AM ET Company Participants Michael Lin - IR Chi-Tung Liu - CFO, SVP, Head, Corporate Governance & Company Secretary Jason Wang - President & Representative Director Conference Call Participants Randy Abrams - Crédit Suisse Brett Simpson - Arete Research Services Charlie Chan - Morgan Stanley Bruce Lu - Goldman Sachs Group Szeho Ng - China Renaissance Securities Gokul Hariharan - JPMorgan Chase & Co. Sunny Lin - UBS O ...

UMC 2Q23 Financial Review NOTE CONCERNING FORWARD-LOOKING STATEMENTS This presentation 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 relating toanticipatedquarterlyFabcapacity, foundryca ...

Financial Position - Total assets as of March 31, 2023, reached NT$549,631,114 thousand, an increase from NT$533,052,092 thousand as of December 31, 2022, representing a growth of 3.3%[12] - Current assets decreased to NT$241,967,215 thousand as of March 31, 2023, from NT$252,371,038 thousand as of December 31, 2022, a decline of 4.3%[12] - Total non-current assets increased to NT$307,663,899 thousand as of March 31, 2023, from NT$280,681,054 thousand as of December 31, 2022, reflecting a growth of 9.6%[12] - Total liabilities as of March 31, 2023, were $194,081,051, a slight decrease from $197,601,153 as of December 31, 2022[15] - Total equity attributable to the parent company increased to $355,205,636 from $335,107,260 as of December 31, 2022, representing a growth of 6.5%[15] Revenue and Profitability - Operating revenues for Q1 2023 were $54,209,447, a decrease of 14.4% compared to $63,422,820 in Q1 2022[18] - Gross profit for Q1 2023 was $19,224,440, down 30.1% from $27,504,330 in Q1 2022[18] - Net income for Q1 2023 was $16,384,547, a decline of 18.4% from $20,065,623 in Q1 2022[18] - Total comprehensive income for Q1 2023 was $19,709,634, compared to $21,487,507 in Q1 2022, indicating a decline of 8.3%[18] - Operating income for Q1 2023 was $14,480,698, down 35.1% from $22,334,187 in Q1 2022[18] Cash Flow and Investments - Cash generated from operations for the three-month period ended March 31, 2023, was $28,733,130, compared to $30,340,563 in 2022, indicating a decrease of about 5.3%[23] - Cash flows from investing activities showed a net outflow of $29,586,209 compared to an inflow of $14,752,138 in the same period last year[25] - The acquisition of property, plant, and equipment amounted to $29,756,200, significantly higher than $10,802,553 in the previous year[25] - The company reported an increase in guarantee deposits of $2,327,873 compared to a decrease of $2,119 in the same period last year[25] Assets and Liabilities - Accounts receivable, net, fell to NT$26,674,425 thousand as of March 31, 2023, down 26.8% from NT$36,444,510 thousand as of December 31, 2022[12] - Inventories, net, increased to NT$32,678,867 thousand as of March 31, 2023, compared to NT$31,069,960 thousand as of December 31, 2022, reflecting a rise of 5.2%[12] - Current liabilities totaled $105,885,984 as of March 31, 2023, a decrease from $108,565,165 as of December 31, 2022[15] - The company reported a net gain of financial assets and liabilities at fair value through profit or loss of $(705,829) for the three-month period ended March 31, 2023, compared to $(2,417,830) in 2022, showing an improvement[23] Shareholder Information - Earnings per share for Q1 2023 were $1.31, compared to $1.61 in Q1 2022, reflecting a decrease of 18.6%[18] - The company reported a net income attributable to non-controlling interests of $201,545 for Q1 2023, compared to $258,088 in Q1 2022, a decrease of 22%[109] - Cash dividends for 2022 were set at NT$3.60 per share, totaling $45,017,096, marking the first cash dividend distribution since 2021[106] Research and Development - Research and development expenses for Q1 2023 were $2,766,607, a decrease from $3,032,939 in Q1 2022[18] Financial Instruments and Risk Management - The company has a liquidity risk management strategy that includes maintaining a balance between funding continuity and flexibility through cash, bank loans, bonds, and leases[184] - The Company limits credit risk by trading only with approved and creditworthy third parties and monitoring accounts receivable balances[181] - A 10% strengthening of NTD against USD would decrease profit by NT$988 million for the three-month period ended March 31, 2023[173] Accounting and Compliance - The company continues to evaluate the impact of newly issued accounting standards on its financial position and performance[40] - The company utilizes valuation techniques that maximize the use of observable inputs and minimize unobservable inputs for fair value measurement[194]

Industry Challenges - United Microelectronics Corporation reported a significant downturn in the semiconductor industry, leading to reduced demand for consumer electronics and related products [17]. - The company highlighted the risks associated with global economic and financial crises, which could negatively impact business operations and financial condition [16]. - The semiconductor industry is characterized by seasonality and cyclical nature, making the company vulnerable to prolonged economic downturns [18]. - The company is currently facing challenges due to economic downturns, which may lead to reduced orders and potential insolvency of key suppliers [17]. - The semiconductor industry is highly cyclical, with significant downturns affecting demand for services, leading to revenue volatility [19]. - The company faces risks from overcapacity in the semiconductor industry, which could pressure pricing and reduce margins [25]. - The outbreak of infectious diseases, such as COVID-19, may disrupt operations and adversely affect financial conditions [30]. - The ongoing conflict between Ukraine and Russia has resulted in trade barriers that could increase manufacturing costs and limit access to supplies [95]. Competition and Market Position - The company emphasized the importance of frequent introduction of new products and technologies to remain competitive in the market [9]. - The semiconductor industry is characterized by intense competition, with competitors having greater access to capital and resources [31]. - The inability to implement new technologies may result in decreased profitability and loss of market share [27]. Customer Dependence - The top ten customers accounted for 53.7%, 54.5%, and 52.4% of operating revenues in 2020, 2021, and 2022, respectively, indicating a reliance on a small customer base [37]. - The company is dependent on a limited number of customers, and any loss could significantly impact operating revenues [36]. Financial Risks - Fluctuations in foreign currency exchange rates could impact the company's financial results [9]. - The company has outlined that additional accounting-related allowances may be required in the future, potentially increasing operating expenses [17]. - Currency fluctuations could adversely affect profitability, as more than half of operating revenues are in currencies other than New Taiwan dollars [50]. - The company expects significant capital expenditures for growth, which may lead to operating losses if revenues do not offset these costs [34]. - Changes in R.O.C. governmental policies, taxation, and social instability may adversely impact the company's financial condition and market price of its shares [77]. - The company has benefited from tax incentives provided by the R.O.C. government, but future changes in tax regulations could decrease net income [79]. Operational Risks - The company is dependent on key personnel, which poses a risk to its operations [9]. - The company may struggle to attract and retain skilled employees, which is critical for future success [40]. - The company has faced challenges in obtaining raw materials timely, with a significant portion of silicon wafers sourced from five major suppliers, which may affect production [60]. - Manufacturing processes are complex and costly, with potential disruptions leading to increased costs and delays in product shipments [51]. - The company has experienced production difficulties that have caused delivery delays and quality control problems, common in the semiconductor industry [52]. - The company is vulnerable to natural disasters, which could disrupt operations and impact financial performance [66]. - Climate change regulations, such as carbon taxes, may increase operational costs and affect business operations [70]. - The company has developed a climate change risk assessment tool and meets TCFD performance assessment at the management level of "Pioneer" [73]. Geopolitical and Regulatory Risks - The trend of protectionist measures in countries like the U.S. could materially impact the company's operations and financial condition [45]. - Geopolitical tensions, particularly between the U.S. and China, may lead to increased tariffs and restrictions that could disrupt the company's operations and affect profitability [92]. - The company is subject to U.S. disclosure rules on conflict minerals, which may impact its ability to source materials effectively [83]. - Strategic acquisitions may introduce significant risks and uncertainties, including integration challenges and potential dilution of existing shareholders [49]. - The company faces substantial political risks due to the tense relationship between Taiwan and the People's Republic of China, which could negatively affect investment value [76]. Shareholder and Investment Considerations - The limited ability to deposit common shares into the ADS program may affect the liquidity and market price of the company's ADSs [96]. - Holders of ADSs have limited voting rights and can only propose one matter per year if they hold at least 51% of the outstanding ADSs [101]. - The company may distribute rights to shareholders, but ADS holders may not be able to participate, leading to potential dilution of their holdings [104]. - Changes in exchange controls could adversely affect the ability to convert proceeds from ADS ownership, impacting investment value [105]. - The company does not expect to be classified as a passive foreign investment company (PFIC) for 2022, which could have adverse tax consequences for U.S. investors [114]. - The trading price of common shares and ADSs may be affected by the volatility of the Taiwan Stock Exchange and U.S. stock exchanges, as well as economic conditions in Taiwan [117].