Quarter-over-Quarter Guidance:
- Wafer Shipments: To remain flat
- ASP in USD: To remain flat
- Profitability: Gross profit margin will be in the mid-teens % range
- Foundry Segment Capacity Utilization: around 90%
- 2020 CAPEX for Foundry Segment: US$1 billion
Recent Developments / Announcements
Feb 4, 2020 |
|
Feb 3, 2020 |
UMC Announces 14nm certification on Mentor’s Calibre Eco Fill Flow |
Jan 20, 2020 |
eMemory and UMC Qualify NeoFuse IP on the Foundry’s 28nm High Voltage Process |
Dec 2, 2019 |
UMC Announces 22nm Technology Readiness Following Silicon Validation |
Nov 18, 2019 |
Faraday and UMC Collaborate to Launch a Complete Set of 22nm Fundamental IP |
Oct 30, 2019 |
Please visit UMC’s website for further details regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, February 5, 2020
Time: 5:00 PM (Taipei) / 4:00 AM (New York) / 09:00 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 4Q19 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 mature and advanced IC production with a focus on Specialty Technologies to serve applications spanning every major sector of the electronics industry. UMC’s comprehensive foundry solutions enable chip designers to leverage the company’s sophisticated technology and manufacturing, which include high volume 28nm High-K/Metal Gate technology, volume production 14nm FinFET, specialty process platforms specifically developed for AI, 5G and IoT applications and the automotive industry’s highest-rated AEC-Q100 Grade-0 manufacturing capabilities for the production of ICs found in vehicles. UMC’s 12 wafer fabs are strategically located throughout Asia and are able to produce more than 700,000 wafers per month. The company employs approximately 19,000 people worldwide, with offices in Taiwan, China, Europe, Japan, Korea, Singapore, and the United States. UMC can be found on the web at 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 sales for first quarter; product releases and market shares; opportunities in the 5G and IoT markets; anticipated wafer demands in market segments; execution of corporate strategies; repayment of bank loans; expected foundry capacities; the ability to obtain new business opportunities; and information under the heading “First Quarter of 2020 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 risks 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, 2019 | |||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||
December 31, 2019 |
|||||||||
US$ |
NT$ |
% |
|||||||
| Assets | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | 3,175 |
95,492 |
25.8% |
||||||
| Notes & Accounts receivable, net | 855 |
25,729 |
7.0% |
||||||
| Inventories, net | 722 |
21,715 |
5.9% |
||||||
| Other current assets | 360 |
10,821 |
2.8% |
||||||
| Total current assets | 5,112 |
153,757 |
41.5% |
||||||
| Non-current assets | |||||||||
| Funds and investments | 1,375 |
41,362 |
11.2% |
||||||
| Property, plant and equipment | 4,999 |
150,374 |
40.6% |
||||||
| Right-of-use assets | 276 |
8,292 |
2.2% |
||||||
| Other non-current assets | 545 |
16,402 |
4.5% |
||||||
| Total non-current assets | 7,195 |
216,430 |
58.5% |
||||||
| Total assets | 12,307 |
370,187 |
100.0% |
||||||
| Liabilities | |||||||||
| Current liabilities | |||||||||
| Short-term loans | 399 |
12,015 |
3.2% |
||||||
| Payables | 934 |
28,083 |
7.6% |
||||||
| Current portion of long-term liabilities | 824 |
24,796 |
6.7% |
||||||
| Other current liabilities | 260 |
7,820 |
2.1% |
||||||
| Total current liabilities | 2,417 |
72,714 |
19.6% |
||||||
| Non-current liabilities | |||||||||
| Bonds payable | 621 |
18,688 |
5.1% |
||||||
| Long-term loans | 971 |
29,200 |
7.9% |
||||||
| Lease liabilities, noncurrent | 182 |
5,461 |
1.5% |
||||||
| Other non-current liabilities | 1,227 |
36,910 |
9.9% |
||||||
| Total non-current liabilities | 3,001 |
90,259 |
24.4% |
||||||
| Total liabilities | 5,418 |
162,973 |
44.0% |
||||||
| Equity | |||||||||
| Equity attributable to the parent company | |||||||||
| Capital | 3,909 |
117,576 |
31.8% |
||||||
| Additional paid-in capital | 1,315 |
39,550 |
10.7% |
||||||
| Retained earnings, exchange differences on translation of
foreign operations, unrealized gains or losses on financial assets measured at fair value through other comprehensive income and gains or losses on hedging Instruments |
1,655 |
49,798 |
13.4% |
||||||
| Treasury stock | (4) |
(120) |
(0.0%) |
||||||
| Total equity attributable to the parent company | 6,875 |
206,804 |
55.9% |
||||||
| Non-controlling interests | 14 |
410 |
0.1% |
||||||
| Total equity | 6,889 |
207,214 |
56.0% |
||||||
| Total liabilities and equity | 12,307 |
370,187 |
100.0% |
||||||
| Note：New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2019 exchange rate of NT $30.08 per U.S. Dollar. | |||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||||||||||
| Except Per Share and Per ADS Data | |||||||||||||||||||
| Year over Year Comparison |
Quarter over Quarter Comparison |
||||||||||||||||||
| Three-Month Period Ended |
Three-Month Period Ended |
||||||||||||||||||
| December 31, 2019 |
December 31, 2018 |
Chg. |
December 31, 2019 |
September 30, 2019 |
Chg. |
||||||||||||||
| US$ | NT$ | US$ | NT$ | % | US$ | NT$ | US$ | NT$ | % | ||||||||||
| Operating revenues | 1,391 |
41,849 |
1,181 |
35,517 |
17.8% |
1,391 |
41,849 |
1,255 |
37,738 |
10.9% |
|||||||||
| Operating costs | (1,159) |
(34,881) |
(1,028) |
(30,916) |
12.8% |
(1,159) |
(34,881) |
(1,041) |
(31,305) |
11.4% |
|||||||||
| Gross profit | 232 |
6,968 |
153 |
4,601 |
51.4% |
232 |
6,968 |
214 |
6,433 |
8.3% |
|||||||||
| 16.7% |
16.7% |
13.0% |
13.0% |
16.7% |
16.7% |
17.1% |
17.1% |
||||||||||||
| Operating expenses | |||||||||||||||||||
| - Sales and marketing expenses | (33) |
(996) |
(30) |
(903) |
10.4% |
(33) |
(996) |
(32) |
(970) |
2.8% |
|||||||||
| - General and administrative expenses | (53) |
(1,603) |
(44) |
(1,339) |
19.7% |
(53) |
(1,603) |
(45) |
(1,344) |
19.2% |
|||||||||
| - Research and development expenses | (115) |
(3,453) |
(125) |
(3,745) |
(7.8%) |
(115) |
(3,453) |
(94) |
(2,813) |
22.7% |
|||||||||
| - Expected credit losses | (4) |
(113) |
(14) |
(409) |
(72.5%) |
(4) |
(113) |
(0) |
(4) |
2,903.5% |
|||||||||
| Subtotal | (205) |
(6,165) |
(213) |
(6,396) |
(3.6%) |
(205) |
(6,165) |
(171) |
(5,131) |
20.2% |
|||||||||
| Net other operating income and expenses | 40 |
1,215 |
40 |
1,206 |
0.7% |
40 |
1,215 |
40 |
1,207 |
0.6% |
|||||||||
| Operating income (loss) | 67 |
2,018 |
(20) |
(589) |
- |
67 |
2,018 |
83 |
2,509 |
(19.6%) |
|||||||||
| 4.8% |
4.8% |
(1.7%) |
(1.7%) |
4.8% |
4.8% |
6.7% |
6.7% |
||||||||||||
| Net non-operating income and expenses | 32 |
946 |
(66) |
(1,998) |
- |
32 |
946 |
(17) |
(532) |
- |
|||||||||
| Income (loss) from continuing operations
before income tax |
99 |
2,964 |
(86) |
(2,587) |
- |
99 |
2,964 |
66 |
1,977 |
49.9% |
|||||||||
| 7.1% |
7.1% |
(7.3%) |
(7.3%) |
7.1% |
7.1% |
5.2% |
5.2% |
||||||||||||
| Income tax benefit (expense) | 6 |
191 |
(14) |
(413) |
- |
6 |
191 |
(2) |
(39) |
- |
|||||||||
| Net income (loss) | 105 |
3,155 |
(100) |
(3,000) |
- |
105 |
3,155 |
64 |
1,938 |
62.8% |
|||||||||
| 7.5% |
7.5% |
(8.4%) |
(8.4%) |
7.5% |
7.5% |
5.1% |
5.1% |
||||||||||||
| Other comprehensive income (loss) | (51) |
(1,538) |
4 |
110 |
- |
(51) |
(1,538) |
20 |
591 |
- |
|||||||||
| Total comprehensive income (loss) | 54 |
1,617 |
(96) |
(2,890) |
- |
54 |
1,617 |
84 |
2,529 |
(36.0%) |
|||||||||
| Net income (loss) attributable to: | |||||||||||||||||||
| Stockholders of the parent | 128 |
3,837 |
(57) |
(1,707) |
- |
128 |
3,837 |
97 |
2,929 |
31.0% |
|||||||||
| Non-controlling interests | (23) |
(682) |
(43) |
(1,293) |
(47.3%) |
(23) |
(682) |
(33) |
(991) |
(31.2%) |
|||||||||
| Comprehensive income (loss) attributable to: | |||||||||||||||||||
| Stockholders of the parent | 76 |
2,291 |
(53) |
(1,608) |
- |
76 |
2,291 |
118 |
3,540 |
(35.3%) |
|||||||||
| Non-controlling interests | (22) |
(674) |
(43) |
(1,282) |
(47.5%) |
(22) |
(674) |
(34) |
(1,011) |
(33.4%) |
|||||||||
| Earnings per share-basic | 0.011 |
0.33 |
(0.005) |
(0.14) |
0.011 |
0.33 |
0.008 |
0.25 |
|||||||||||
| Earnings per ADS (2) | 0.055 |
1.65 |
(0.023) |
(0.70) |
0.055 |
1.65 |
0.042 |
1.25 |
|||||||||||
| Weighted average number of shares | |||||||||||||||||||
| outstanding (in millions) | 11,709 |
12,112 |
11,709 |
11,708 |
|||||||||||||||
| Notes: | |||||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2019 exchange rate of NT $30.08 per U.S. Dollar. | |||||||||||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||||
| Except Per Share and Per ADS Data | |||||||||||||
| For the Three-Month Period Ended |
For the Twelve-Month Period Ended |
||||||||||||
| December 31, 2019 |
December 31, 2019 |
||||||||||||
| US$ |
NT$ |
% |
US$ |
NT$ |
% |
||||||||
| Operating revenues | 1,391 |
41,849 |
100.0% |
4,927 |
148,202 |
100.0% |
|||||||
| Operating costs | (1,159) |
(34,881) |
(83.3%) |
(4,218) |
(126,887) |
(85.6%) |
|||||||
| Gross profit | 232 |
6,968 |
16.7% |
709 |
21,315 |
14.4% |
|||||||
| Operating expenses | |||||||||||||
| - Sales and marketing expenses | (33) |
(996) |
(2.4%) |
(127) |
(3,808) |
(2.6%) |
|||||||
| - General and administrative expenses | (53) |
(1,603) |
(3.8%) |
(181) |
(5,436) |
(3.6%) |
|||||||
| - Research and development expenses | (115) |
(3,453) |
(8.3%) |
(394) |
(11,860) |
(8.0%) |
|||||||
| - Expected credit losses | (4) |
(113) |
(0.3%) |
(23) |
(703) |
(0.5%) |
|||||||
| Subtotal | (205) |
(6,165) |
(14.8%) |
(725) |
(21,807) |
(14.7%) |
|||||||
| Net other operating income and expenses | 40 |
1,215 |
2.9% |
172 |
5,182 |
3.5% |
|||||||
| Operating income | 67 |
2,018 |
4.8% |
156 |
4,690 |
3.2% |
|||||||
| Net non-operating income and expenses | 32 |
946 |
2.3% |
35 |
1,046 |
0.7% |
|||||||
| Income from continuing operations
before income tax |
99 |
2,964 |
7.1% |
191 |
5,736 |
3.9% |
|||||||
| Income tax benefit | 6 |
191 |
0.4% |
13 |
393 |
0.2% |
|||||||
| Net income | 105 |
3,155 |
7.5% |
204 |
6,129 |
4.1% |
|||||||
| Other comprehensive income (loss) | (51) |
(1,538) |
(3.7%) |
113 |
3,409 |
2.3% |
|||||||
| Total comprehensive income (loss) | 54 |
1,617 |
3.8% |
317 |
9,538 |
6.4% |
|||||||
| Net income attributable to: | |||||||||||||
| Stockholders of the parent | 128 |
3,837 |
9.2% |
323 |
9,708 |
6.6% |
|||||||
| Non-controlling interests | (23) |
(682) |
(1.7%) |
(119) |
(3,579) |
(2.5%) |
|||||||
| Comprehensive income (loss) attributable to: | |||||||||||||
| Stockholders of the parent | 76 |
2,291 |
5.5% |
437 |
13,132 |
8.9% |
|||||||
| Non-controlling interests | (22) |
(674) |
(1.7%) |
(120) |
(3,594) |
(2.5%) |
|||||||
| Earnings per share-basic | 0.011 |
0.33 |
0.027 |
0.82 |
|||||||||
| Earnings per ADS (2) | 0.055 |
1.65 |
0.136 |
4.10 |
|||||||||
| Weighted average number of shares
outstanding (in millions) |
11,709 |
11,785 |
|||||||||||
| Notes: | |||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2019 exchange rate of NT $30.08 per U.S. Dollar. | |||||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | ||||
| Consolidated Condensed Statement of Cash Flows | ||||
| For The Twelve-Month Period Ended December 31, 2019 | ||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | ||||
| US$ |
NT$ |
|||
| Cash flows from operating activities : | ||||
| Net income before tax | 191 |
5,736 |
||
| Depreciation & Amortization | 1,642 |
49,390 |
||
| Expected credit losses | 23 |
703 |
||
| Share of profit of associates and joint ventures | (38) |
(1,147) |
||
| Income tax paid | (21) |
(619) |
||
| Changes in working capital & others | 28 |
841 |
||
| Net cash provided by operating activities | 1,825 |
54,904 |
||
| Cash flows from investing activities : | ||||
| Acquisition of subsidiaries (net of cash acquired) | (426) |
(12,801) |
||
| Acquisition of property, plant and equipment | (549) |
(16,518) |
||
| Acquisition of intangible assets | (81) |
(2,444) |
||
| Others | 3 |
81 |
||
| Net cash used in investing activities | (1,053) |
(31,682) |
||
| Cash flows from financing activities : | ||||
| Increase in short-term loans | (33) |
(994) |
||
| Redemption of bonds | (83) |
(2,500) |
||
| Proceeds from long-term loans | 381 |
11,450 |
||
| Repayments of long-term loans | (252) |
(7,573) |
||
| Cash dividends | (230) |
(6,911) |
||
| Treasury stock acquired | (99) |
(2,972) |
||
| Others | (12) |
(367) |
||
| Net cash used in financing activities | (328) |
(9,867) |
||
| Effect of exchange rate changes on cash and cash equivalents | (51) |
(1,525) |
||
| Net increase in cash and cash equivalents | 393 |
11,830 |
||
| Cash and cash equivalents at beginning of period | 2,782 |
83,662 |
||
| Cash and cash equivalents at end of period | 3,175 |
95,492 |
||
| Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2019 exchange rate of NT $30.08 per U.S. Dollar. | ||||
