Core Viewpoint - United Microelectronics (UMC) is currently identified as a strong investment opportunity with a Zacks Rank of 2 (Buy) and a Value grade of A, indicating it is likely undervalued in the market [2][3]. Valuation Metrics - UMC has a Price-to-Book (P/B) ratio of 1.72, which is significantly lower than the industry average of 4.16, suggesting that UMC is undervalued compared to its peers [2]. - The stock's P/B ratio has fluctuated between a high of 1.96 and a low of 1.54 over the past year, with a median of 1.73 [2]. - UMC's Price-to-Sales (P/S) ratio stands at 2.81, again lower than the industry average of 3.97, reinforcing the notion of undervaluation [2]. Cash Flow Analysis - UMC's Price-to-Cash Flow (P/CF) ratio is 6.78, which is considerably lower than the industry average of 24.54, indicating a strong cash flow outlook relative to its market value [3]. - Over the past year, UMC's P/CF has ranged from a high of 7.31 to a low of 4.47, with a median of 6.05 [3]. Overall Investment Outlook - The combination of UMC's favorable valuation metrics and strong earnings outlook positions it as an attractive value stock in the current market [3].

Investors with an interest in Electronics - Semiconductors stocks have likely encountered both United Microelectronics Corporation (UMC) and Lattice Semiconductor (LSCC) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The prov ...

Investors interested in Electronics - Semiconductors stocks are likely familiar with United Microelectronics Corporation (UMC) and Lattice Semiconductor (LSCC) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings est ...

Core Viewpoint - Renovaro Inc. and Amsterdam UMC Cancer Center have signed a Memorandum of Understanding (MoU) to establish a joint company in the Netherlands focused on developing personalized cancer immunotherapy solutions [1][2]. Group 1: Partnership Details - The new company, referred to as "Newco," will be headquartered in Amsterdam and aims to combine Renovaro's vaccine technology with the Cancer Center's immunomodulatory expertise to create tailored cancer treatments [2]. - Both organizations emphasize the importance of corporate and scientific due diligence before finalizing the partnership, with any contractual commitments subject to approval from their executive boards [1][2]. Group 2: Technological Advancements - Renovaro's proprietary allogenic dendritic vaccine technology will be integrated with the Cancer Center's research capabilities to address immunotherapy resistance and enhance patient outcomes [2][3]. - The collaboration is expected to leverage the combined resources and expertise of both organizations, ensuring a strong foundation for success in cancer treatment innovation [2]. Group 3: Organizational Background - Renovaro aims to accelerate precision and personalized medicine through AI and biotechnology platforms, focusing on early diagnosis and targeted treatments [4]. - Amsterdam UMC is one of the largest university hospitals in the Benelux region, with a strong emphasis on cancer research and care, housing eight research institutes, including the prominent Cancer Center [6][7].

[Report of Independent Auditors](index=2&type=section&id=Report%20of%20Independent%20Auditors) [Auditor's Conclusion](index=2&type=section&id=Auditor%27s%20Conclusion) Ernst & Young concluded UMC's Q1 2024 and 2023 consolidated financial statements fairly present its financial position, performance, and cash flows, based on a review engagement - The auditors expressed a qualified conclusion, finding no material modifications needed for the consolidated financial statements to conform with endorsed accounting standards[6](index=6&type=chunk) - The auditors' conclusion on certain equity method investments relies solely on reports from other independent auditors, as they did not review those financial statements[8](index=8&type=chunk) Impact of Investments Reviewed by Other Auditors (As of March 31, 2024) | Metric | Amount (NT$ million) | % of Consolidated Total | | :--- | :--- | :--- | | Equity Method Investment Balance | 29,288 | 5.16% of Total Assets | | Share of Profit/Loss | 1 | 0.01% of Pre-tax Income | | Share of Other Comprehensive Income | 241 | 1.31% of Total Comprehensive Income | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets increased to **NT$567.1 billion**, liabilities decreased to **NT$188.8 billion**, and equity rose to **NT$378.2 billion** Key Balance Sheet Items (in thousands of NT$) | Account | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | | **Total Current Assets** | 205,162,356 | 216,797,392 | 241,967,215 | | **Total Non-Current Assets** | 361,910,230 | 342,389,535 | 307,663,899 | | **Total Assets** | **567,072,586** | **559,186,927** | **549,631,114** | | **Total Current Liabilities** | 88,403,119 | 99,014,733 | 105,885,984 | | **Total Non-Current Liabilities** | 100,441,417 | 100,593,622 | 88,195,067 | | **Total Liabilities** | **188,844,536** | **199,608,355** | **194,081,051** | | **Total Equity** | **378,228,050** | **359,578,572** | **355,550,063** | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Q1 2024 operating revenues slightly increased to **NT$54.6 billion**, but gross profit decreased to **NT$16.9 billion**, and net income attributable to parent fell to **NT$10.5 billion** Key Income Statement Items (in thousands of NT$) | Account | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Operating Revenues | 54,632,099 | 54,209,447 | | Gross Profit | 16,899,430 | 19,224,440 | | Operating Income | 11,664,501 | 14,480,698 | | Net Income | 10,429,595 | 16,384,547 | | Net Income (attributable to parent) | 10,456,142 | 16,183,002 | Earnings Per Share (in NT$) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Basic EPS | 0.84 | 1.31 | | Diluted EPS | 0.83 | 1.28 | [Consolidated Statements of Changes in Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity increased from **NT$359.6 billion** to **NT$378.2 billion** in Q1 2024, primarily driven by **NT$18.4 billion** in total comprehensive income Changes in Equity for Q1 2024 (in thousands of NT$) | Item | Amount | | :--- | :--- | | **Balance as of January 1, 2024** | **359,578,572** | | Net income for the period | 10,429,595 | | Other comprehensive income for the period | 7,954,208 | | **Total comprehensive income** | **18,383,803** | | Share-based payment transaction | 275,572 | | Other changes | (9,907) | | **Balance as of March 31, 2024** | **378,228,050** | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 operating cash flow was **NT$20.8 billion**, investing activities used **NT$29.9 billion**, and financing used **NT$6.4 billion**, resulting in a **NT$13.1 billion** net cash decrease Summary of Cash Flows (in thousands of NT$) | Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | 20,819,871 | 26,964,199 | | Net Cash Used in Investing Activities | (29,914,635) | (29,586,209) | | Net Cash Provided by (Used in) Financing Activities | (6,438,908) | 1,347,089 | | **Net Decrease in Cash and Cash Equivalents** | **(13,122,355)** | **(1,984,319)** | - The primary use of cash in investing activities was the acquisition of property, plant, and equipment, totaling **NT$28.5 billion** in Q1 2024[23](index=23&type=chunk) [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [General Information and Accounting Policies](index=12&type=section&id=Note%201-5%3A%20General%20Information%20and%20Accounting%20Policies) UMC, a semiconductor wafer foundry incorporated in 1980, prepared its financial statements under IFRS endorsed by the R.O.C. FSC, applying all effective standards - United Microelectronics Corporation (UMC), a full-service semiconductor wafer foundry incorporated in May 1980, is listed on the TWSE and NYSE[25](index=25&type=chunk) - The consolidated financial statements adhere to R.O.C. Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 "Interim Financial Reporting" as endorsed by the FSC[39](index=39&type=chunk) - The company is evaluating the potential impact of IFRS 18 "Presentation and Disclosure in Financial Statements", effective January 1, 2027, which is not yet endorsed by the FSC[38](index=38&type=chunk) [Contents of Significant Accounts](index=18&type=section&id=Note%206%3A%20Contents%20of%20Significant%20Accounts) This note details significant accounts, including **NT$119.4 billion** cash, **NT$30.2 billion** net accounts receivable, and **NT$34.6 billion** net inventories as of March 31, 2024, along with other financial details [Financial Assets and Liabilities](index=18&type=section&id=Financial%20Assets%20and%20Liabilities) As of March 31, 2024, cash and equivalents were **NT$119.4 billion**, with **NT$18.1 billion** in FVTPL assets, **NT$36.3 billion** in bonds payable, and **NT$21.6 billion** in long-term loans Cash and Cash Equivalents (in thousands of NT$) | Category | March 31, 2024 | | :--- | :--- | | Checking and savings accounts | 47,369,157 | | Time deposits | 70,492,163 | | Repurchase agreements | 1,563,725 | | **Total** | **119,431,260** | Bonds Payable (in thousands of NT$) | Category | March 31, 2024 | | :--- | :--- | | Unsecured domestic bonds payable | 31,000,000 | | Unsecured exchangeable bonds payable | 5,757,373 | | Less: Discounts & Current Portion | (12,176,391) | | **Net Bonds Payable (Non-current)** | **24,580,982** | - The company holds unsecured exchangeable bonds due in 2026, convertible into common shares of NOVATEK MICROELECTRONICS CORPORATION[96](index=96&type=chunk)[98](index=98&type=chunk) [Operational Assets and Investments](index=20&type=section&id=Operational%20Assets%20and%20Investments) Net accounts receivable increased to **NT$30.2 billion**, inventories decreased to **NT$34.6 billion**, and PP&E grew to **NT$254.1 billion** with equity method investments at **NT$46.8 billion** Key Operational Assets (in thousands of NT$) | Asset | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Accounts Receivable, Net | 30,206,711 | 29,237,550 | | Inventories, Net | 34,593,276 | 35,712,558 | | Investments (Equity Method) | 46,793,606 | 45,406,511 | | Property, Plant and Equipment | 254,135,871 | 239,123,248 | - The fair value of listed equity method investments was **NT$55.8 billion** as of March 31, 2024, significantly exceeding their **NT$20.6 billion** carrying amount[66](index=66&type=chunk) [Equity and Share-Based Payments](index=42&type=section&id=Equity%20and%20Share-Based%20Payments) As of March 31, 2024, UMC had **12.53 billion** shares issued, proposed a **NT$3.00** cash dividend for 2023, and recognized **NT$275 million** in Q1 2024 share-based compensation costs - The Board proposed a **NT$3.00** cash dividend per share for 2023 earnings, a decrease from **NT$3.60** paid for 2022[117](index=117&type=chunk) - The company issued **27 million** shares of restricted stock to employees in December 2023 as part of its compensation plan[123](index=123&type=chunk) - Q1 2024 share-based compensation costs totaled **NT$275 million** for restricted stock and **NT$11 million** for stock appreciation rights[127](index=127&type=chunk)[128](index=128&type=chunk) [Revenue, Expenses, and Earnings Per Share](index=46&type=section&id=Revenue%2C%20Expenses%2C%20and%20Earnings%20Per%20Share) Q1 2024 wafer sales were **NT$51.5 billion**, with Taiwan (**35%**) and USA (**25%**) as largest markets; basic EPS was **NT$0.84** based on **NT$10.5 billion** net income Revenue by Geography for Q1 2024 | Region | Revenue (NT$ million) | % of Total | | :--- | :--- | :--- | | Taiwan | 19,361 | 35.4% | | USA | 13,768 | 25.2% | | China (incl. HK) | 7,489 | 13.7% | | Korea | 7,265 | 13.3% | | Europe | 4,477 | 8.2% | | Japan | 2,273 | 4.2% | Basic Earnings Per Share Calculation for Q1 2024 | Item | Amount | | :--- | :--- | | Net income attributable to parent (thousands NT$) | 10,456,142 | | Weighted-average ordinary shares (thousand) | 12,414,088 | | **Basic EPS (NT$)** | **0.84** | [Related Party Transactions](index=56&type=section&id=Note%207%3A%20Related%20Party%20Transactions) Q1 2024 operating revenues from associates totaled **NT$680 million**, with an additional **NT$534 million** investment in FARADAY, and key management compensation amounted to **NT$605 million** - Operating revenues from associates increased to **NT$680 million** in Q1 2024 from **NT$562 million** in Q1 2023[164](index=164&type=chunk) - The company acquired **1.72 million** shares in FARADAY TECHNOLOGY CORP. for **NT$534 million** during a Q1 2024 capital increase[166](index=166&type=chunk) Key Management Personnel Compensation (in thousands of NT$) | Category | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Short-term employee benefits | 492,162 | 587,360 | | Share-based payment | 111,683 | 137,450 | | **Total** | **604,659** | **725,739** | [Assets Pledged as Collateral](index=59&type=section&id=Note%208%3A%20Assets%20Pledged%20as%20Collateral) As of March 31, 2024, **NT$13.8 billion** in assets were pledged as collateral, primarily buildings (**NT$4.5 billion**) and machinery and equipment (**NT$5.9 billion**), securing long-term loans Pledged Assets by Type (Carrying Amount, in thousands of NT$) | Asset Type | March 31, 2024 | | :--- | :--- | | Refundable Deposits | 3,160,800 | | Buildings | 4,503,806 | | Machinery and equipment | 5,860,455 | | Right-of-use assets | 269,888 | | **Total** | **13,794,959** | [Contingencies and Subsequent Events](index=61&type=section&id=Note%209%20%26%2011%3A%20Contingencies%20and%20Subsequent%20Events) Legal proceedings with Micron Technology, Inc. were settled with no material financial effect, and a 7.2 magnitude earthquake on April 3, 2024, had no material operational or financial impact - The company settled all worldwide legal proceedings with Micron Technology, Inc., with the recorded fine having no material ongoing financial or operational effect[172](index=172&type=chunk)[174](index=174&type=chunk) - As of March 31, 2024, the company had unrecognized construction contract commitments of approximately **NT$26.6 billion** for operational expansion[172](index=172&type=chunk) - A 7.2 magnitude earthquake on April 3, 2024, had no material impact on the company's operations, finances, or business, with normal resumption of activities[177](index=177&type=chunk) [Financial Instruments and Risk Management](index=63&type=section&id=Note%2012%3A%20Financial%20Instruments%20and%20Risk%20Management) The company manages market, credit, and liquidity risks, with a **15.51%** debt-to-capital ratio as of March 31, 2024, and a 10% NTD appreciation would decrease profit by **NT$817 million** - The company's primary financial risk exposures include foreign currency, interest rate, equity price, credit, and liquidity risks[179](index=179&type=chunk)[181](index=181&type=chunk) - A **10%** appreciation of the NTD against the USD would decrease profit for the three-month period by **NT$817 million**[184](index=184&type=chunk) Capital Structure Ratios | Metric | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | | Net Debt (NT$ million) | 69,413 | 67,055 | 22,247 | | Total Capital (NT$ million) | 447,641 | 426,633 | 377,797 | | **Debt to Capital Ratio** | **15.51%** | **15.72%** | **5.89%** | [Additional Disclosures and Segment Information](index=79&type=section&id=Additional%20Disclosures%20and%20Segment%20Information) [Additional Disclosures](index=79&type=section&id=Additional%20Disclosures) This section provides supplementary information required by the R.O.C. Securities and Futures Bureau, covering financing, guarantees, securities, asset transactions, and related party details - The report includes additional disclosures required by Taiwanese regulations, covering guarantees, securities holdings, and investments in Mainland China[233](index=233&type=chunk)[235](index=235&type=chunk) [Operating Segment Information](index=80&type=section&id=Operating%20Segment%20Information) The company operates as a single operating segment: wafer fabrication, with consolidated financial statements representing this core activity of manufacturing chips based on customer designs - UMC has determined it operates as a single operating segment, which is wafer fabrication[234](index=234&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ...

UMC 1Q24 Financial Review April 24, 2024 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 toanticipated quarterlyFabcap ...

Financial Data and Key Metrics - Consolidated revenue for Q1 2024 was NT$54.63 billion, with a gross margin of 30.9% [6] - Net income attributable to stockholders was NT$10.46 billion, with earnings per ordinary share of NT$0.84 [6] - Utilization rate in Q1 2024 was 65%, similar to 66% in Q4 2023, while wafer shipments increased by 4.5% sequentially [6] - Operating expenses decreased by 13.4% to NT$5.7 billion in Q1 2024, reflecting seasonal low points [7] - Cash position stood at NT$119 billion, with total equity of NT$378 billion, primarily driven by increases in PP&E, which reached NT$254 billion [8] Business Line Data and Key Metrics - Specialty business contributed 57% of total revenue, driven by demand for power management ICs, RFSOI chips, and silicon interposers for AI servers [11] - Revenue from Europe declined from 11% in Q4 2023 to 8% in Q1 2024 [9] - IDM compensation versus fabless revenue shifted to 18% versus 82% in Q1 2024, compared to 22% versus 78% in the previous quarter [10] - 20-28nm revenue percentage decreased to 33% due to seasonal adjustments, while other technology geometries remained stable [12] Market Data and Key Metrics - 12-inch equivalent capacity increased to 1.2 million in Q1 2024, primarily driven by the expansion of the Tainan fab (P6) [13] - CapEx for 2024 remains unchanged at NT$3.3 billion, with the majority allocated to 12-inch capacity expansion [10] Company Strategy and Industry Competition - The company is focusing on high-growth segments such as 5G, AIoT, and automotive markets, with advancements in embedded high-voltage, embedded non-volatile memory, RFSOI, and 3D IC solutions [12] - UMC plans to maintain a stable and predictable dividend policy, with a proposed cash distribution of NT$3 per share, subject to shareholder approval [12] - The company expects to capture 10%-20% of the AI semiconductor market, focusing on data transmission and power management ICs for AI servers [29] Management Commentary on Operating Environment and Future Outlook - Management expects wafer shipments to increase in Q2 2024 as inventory levels in computing, consumer, and communication segments improve [13] - Automotive and industrial segments remain muted due to slower-than-expected inventory digestion [13] - UMC anticipates macro uncertainties and cost headwinds in the near term but remains committed to investing in technology, capacity, and people to capture growth opportunities driven by 5G and AI innovations [14] Other Important Information - The company completed a one-time annual adjustment in ASP in Q1 2024, which offset the 4%-5% increase in wafer shipments [8] - Government subsidies declined significantly to NT$513 million in Q1 2024, aligning with the depreciation curve [7] Q&A Session Summary Question: Outlook for 28nm recovery and P6 capacity utilization [16] - Answer: 28nm wafer shipments are expected to recover in Q2 2024, supported by demand from communication and consumer segments [17] Question: Pricing environment and negotiations [18] - Answer: ASPs are expected to remain firm, with pricing adjustments focused on enhancing customer competitiveness [19] Question: CapEx allocation for Singapore fab expansion [21] - Answer: 60% of 2024 CapEx is allocated to infrastructure for the Singapore fab (P3), with production expected to start in January 2026 [23] Question: AI market opportunities and silicon interposer capacity [26] - Answer: UMC targets 10%-20% of the AI semiconductor market, focusing on data transmission and power management ICs, while maintaining 6,000 interposer capacity [29][31] Question: Specialty platforms like RFSOI and OLED driver ICs [36] - Answer: UMC is gaining market share in RFSOI and maintaining its position in embedded high-voltage and non-volatile memory [37] Question: 8-inch capacity flexibility and potential conversion to compound semiconductors [42] - Answer: UMC is exploring silicon carbide and gallium nitride technologies but remains focused on 8-inch mainstream applications [43] Question: Advanced packaging and 3D IC profitability [57] - Answer: UMC is cautious about expanding interposer capacity and focuses on cost-effective 3D IC solutions for edge AI and data center applications [31][59] Question: Depreciation and gross margin impact [72] - Answer: Depreciation is expected to grow by around 20% in 2024, with minimal impact on gross margin due to operational efficiency improvements [72] Question: Inventory correction and demand recovery [52] - Answer: Inventory levels are improving, but customers remain cautious, with AI servers driving growth while other segments recover more slowly [53][56] Question: Long-term competition and capacity expansion in China [98] - Answer: UMC is well-positioned with geographically diversified manufacturing sites and a comprehensive technology portfolio to navigate geopolitical challenges and competition [101][102]

Monty Rakusen/DigitalVision via Getty Images Introduction It has been around a year since I covered United Microelectronics (NYSE:UMC) first, so I wanted to look at the company’s performance throughout 2023 and see what’s in store going forward. The company’s share price went nowhere in the last year and only the dividend helped to push it to green. Given the tough macro environment in ´23, it was no surprise, however, now that the bottom seems to be setting in, I believe the company is going to see top ...

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS WITH REPORT OF INDEPENDENT AUDITORS FOR THE YEARS ENDED DECEMBER 31, 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 interpretation b ...