4Q19 posts record high revenue of NT$41.85 billion; FY19 EPS up 41% YoY to NT$0.82
Fourth Quarter 2019 Overview1:
- Revenue: NT$41.85 billion (US$1.39 billion)
- Gross margin: 16.7%
- Foundry revenue from 28nm: 10%; Foundry operating margin: 4.9%
- Foundry capacity utilization rate: 92%
- Net income attributable to stockholders of the parent: NT$3.84 billion (US$128 million)
- Earnings per share: NT$0.33; earnings per ADS: US$0.055
TAIPEI, Taiwan — (BUSINESS WIRE) — February 5, 2020 — 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 2019.
Fourth quarter consolidated revenue was NT$41.85 billion, up 10.9% QoQ from NT$37.74 billion in 3Q19 and up 17.8% YoY from NT$35.52 billion in 4Q18. Consolidated gross margin for 4Q19 was 16.7%. Net income attributable to the stockholders of the parent was NT$3.84 billion, with earnings per ordinary share of NT$0.33.
Jason Wang, co-president of UMC, said, “During the fourth quarter, we started to account for the foundry operations at our recently acquired USJC (Fab 12M) in Japan. In spite of currency headwinds encountered in the foreign exchange markets, our foundry revenue increased 10.9% QoQ to NT$41.83 billion, leading to a foundry operating margin of 4.9%. Utilization rate increased to 92%, bringing wafer shipments to 2.04 million 8-inch equivalent wafers primarily driven by the communication and computing segments. For the year, our earnings per share increased 41% YoY to NT$0.82. Our continued disciplined CAPEX approach also enabled UMC to generate a total of NT$37.1 billion in free cash flow, up 19% YoY. In terms of technology, we recently validated our 22nm process on a USB 2.0 test vehicle, demonstrating the technology readiness of this design rule shrink from 28nm. UMC’s 22nm process features a 10% area reduction, better power-to-performance ratio and enhanced RF capabilities compared to our existing 28nm High-K/Metal Gate technology.”
Co-president Wang further commented, “Looking to the first quarter of 2020, based on customer forecasts, the overall business outlook appears to remain consistent with the previous quarter, primarily due to stable wafer demand across wireless communication and computer peripheral segments. As we receive new product tape-outs that will enter future production pipelines, we expect to benefit from 5G and IoT trends that will generate additional semiconductor demand, specifically in wireless devices as well as power management applications. While our focus remains to maintain a disciplined capital expenditure spending, owing to mid to long term customer and market demand, we have setup our 2020 capex budget of US$1 billion. In the meantime, UMC will continue to penetrate into new segments and expand our presence in existing markets; our core competence in process technology development, and world-class foundry service will strengthen our position in delivering logic and specialty manufacturing solutions.”
Summary of Operating Results
Operating Results |
|||||
(Amount: NT$ million) |
4Q19 |
3Q19 |
QoQ %
|
4Q18 |
YoY %
|
Operating Revenues |
41,849 |
37,738 |
10.9 |
35,517 |
17.8 |
Gross Profit |
6,968 |
6,433 |
8.3 |
4,601 |
51.4 |
Operating Expenses |
(6,165) |
(5,131) |
20.2 |
(6,396) |
(3.6) |
Net Other Operating Income and Expenses |
1,215 |
1,207 |
0.6 |
1,206 |
0.7 |
Operating Income (Loss) |
2,018 |
2,509 |
(19.6) |
(589) |
- |
Net Non-Operating Income and Expenses |
946 |
(532) |
- |
(1,998) |
- |
Net Income (Loss) Attributable to Stockholders of the Parent |
3,837 |
2,929 |
31.0 |
(1,707) |
- |
EPS (NT$ per share) |
0.33 |
0.25 |
|
(0.14) |
|
(US$ per ADS) |
0.055 |
0.042 |
|
(0.023) |
|
Operating revenues in 4Q19 increased 10.9% to NT$41.85 billion, including NT$41.83 billion from the foundry segment. Revenue contribution from 40nm and below technologies declined to 32%. Gross profit increased 8.3% quarterly to NT$6.97 billion, or 16.7% of revenue. Operating expenses increased 20.2% to NT$6.17 billion. Net other operating income remained flat at NT$1.22 billion, leading to an operating income of NT$2.02 billion. Net non-operating income was NT$946 million. Net income attributable to stockholders of the parent was NT$3.84 billion.
Earnings per ordinary share for the quarter was NT$0.33. Earnings per ADS was US$0.055. The basic weighted average number of outstanding shares in 4Q19 was 11,708,869,140, compared with 11,708,239,978 shares in 3Q19 and 12,111,826,935 shares in 4Q18. The diluted weighted average number of outstanding shares was 13,073,000,039 in 4Q19, compared with 13,049,025,428 shares in 3Q19 and 12,111,826,935 shares in 4Q18. The fully diluted share count on December 31, 2019 was approximately 13,089,079,000.
Detailed Financials Section
COGS & Expenses |
|||||
(Amount: NT$ million) |
4Q19 |
3Q19 |
QoQ %
|
4Q18 |
YoY %
|
Operating Revenues |
41,849 |
37,738 |
10.9 |
35,517 |
17.8 |
COGS |
(34,881) |
(31,305) |
11.4 |
(30,916) |
12.8 |
Depreciation |
(11,069) |
(10,707) |
3.4 |
(10,228) |
8.2 |
Other Mfg. Costs |
(23,812) |
(20,598) |
15.6 |
(20,688) |
15.1 |
Gross Profit |
6,968 |
6,433 |
8.3 |
4,601 |
51.4 |
Gross Margin (%) |
16.7% |
17.1% |
|
13.0% |
|
Operating Expenses |
(6,165) |
(5,131) |
20.2 |
(6,396) |
(3.6) |
G&A |
(1,603) |
(1,344) |
19.2 |
(1,339) |
19.7 |
Sales & Marketing |
(996) |
(970) |
2.8 |
(903) |
10.4 |
R&D |
(3,453) |
(2,813) |
22.7 |
(3,745) |
(7.8) |
Expected Credit Losses |
(113) |
(4) |
2,903.5 |
(409) |
(72.5) |
Net Other Operating Income & Expenses |
1,215 |
1,207 |
0.6 |
1,206 |
0.7 |
Operating Income (Loss) |
2,018 |
2,509 |
(19.6) |
(589) |
- |
Operating revenues grew 10.9% QoQ to NT$41.85 billion. COGS increased 11.4% to NT$34.88 billion, as other manufacturing costs increased 15.6% to NT$23.81 billion, mainly as a result of higher wafer shipments while depreciation was up 3.4% to NT$11.07 billion. Gross profit grew 8.3% to NT$6.97 billion. Operating expenses rose 20.2% to NT$6.17 billion. R&D expenses grew 22.7% sequentially to NT$3.45 billion, representing 8.3% of 4Q19 operating revenues. General & Administrative (G&A) expenses were up 19.2% to NT$1.60 billion. Net other operating income was NT$1.22 billion. In 4Q19, operating income totaled NT$2.02 billion.
Non-Operating Income and Expenses |
|||
(Amount: NT$ million) |
4Q19 |
3Q19 |
4Q18 |
Non-Operating Income and Expenses |
946 |
(532) |
(1,998) |
Net Interest Income and Expenses |
(468) |
(503) |
(438) |
Net Investment Gain and Loss |
1,064 |
736 |
(1,859) |
Exchange Gain and Loss |
188 |
(752) |
304 |
Other Gain and Loss |
162 |
(13) |
(5) |
Net non-operating income in 4Q19 was NT$946 million, mainly resulting from NT$1.06 billion in net investment gain, partly offset by NT$468 million in net interest expense.
Cash Flow Summary |
||
(Amount: NT$ million) |
For the 3-Month Period Ended Dec. 31, 2019 |
For the 3-Month Period Ended Sep. 30, 2019 |
Cash Flow from Operating Activities |
37,533 |
(3,080) |
Net income before tax |
2,964 |
1,977 |
Depreciation & Amortization |
12,775 |
12,050 |
Expected credit losses |
113 |
4 |
Share of profit of associates and joint ventures |
(642) |
(109) |
Income tax paid |
(52) |
(99) |
Changes in working capital & others |
22,375 |
(16,903) |
Cash Flow from Investing Activities |
(17,844) |
(3,968) |
Acquisition of subsidiaries |
(12,801) |
- |
Acquisition of PP&E |
(3,502) |
(3,550) |
Acquisition of intangible assets |
(935) |
(732) |
Others |
(606) |
314 |
Cash Flow from Financing Activities |
(9,716) |
4,137 |
Bank loans |
(9,551) |
11,168 |
Cash dividends |
3 |
(6,914) |
Others |
(168) |
(117) |
Effect of Exchange Rate |
(1,238) |
(692) |
Net Cash Flow |
8,735 |
(3,603) |
Beginning balance |
86,755 |
90,356 |
Changes in non-current assets held for sale |
2 |
2 |
Ending balance |
95,492 |
86,755 |
In 4Q19, cash inflow from operating activities was NT$37.53 billion. Cash outflow from investing activities totaled NT$17.84 billion, which included NT$12.80 billion in the acquisition of USJC and NT$3.50 billion in PP&E spending, resulting in free cash flow of NT$33.81 billion. Cash outflow from financing activities totaled NT$9.72 billion, primarily from NT$9.55 billion in the repayment of bank loans. Net cash inflow in 4Q19 was NT$8.74 billion. Over the next 12 months, the company expects to repay NT$4.70 billion in bank loans.
Current Assets |
|||
(Amount: NT$ billion) |
4Q19 |
3Q19 |
4Q18 |
Cash and Cash Equivalents |
95.49 |
86.76 |
83.66 |
Notes & Accounts Receivable |
25.73 |
23.41 |
23.88 |
Days Sales Outstanding |
54 |
58 |
64 |
Inventories, net |
21.72 |
19.99 |
18.20 |
Days of Inventory |
55 |
58 |
53 |
Total Current Assets |
153.76 |
163.49 |
141.19 |
Cash and cash equivalents increased to NT$95.49 billion. Days of inventory decreased to 55 days.
Liabilities |
|||
(Amount: NT$ billion) |
4Q19 |
3Q19 |
4Q18 |
Total Current Liabilities |
72.71 |
70.33 |
49.90 |
Notes & Accounts Payable |
8.88 |
6.63 |
6.80 |
Short-Term Credit / Bonds |
36.81 |
40.08 |
18.23 |
Payable on Equipment |
3.03 |
3.00 |
4.01 |
Other |
23.99 |
20.62 |
20.86 |
Long-Term Credit / Bonds |
47.89 |
55.23 |
67.08 |
Long-Term Investment Liabilities |
20.09 |
20.17 |
20.41 |
Total Liabilities |
162.97 |
169.00 |
158.07 |
Debt to Equity |
79% |
82% |
77% |
Current liabilities increased to NT$72.71 billion. Total liabilities decreased to NT$162.97 billion, leading to a debt to equity ratio of 79%.
Analysis of Revenue2 for Foundry Segment
Revenue Breakdown by Region |
|||||
Region |
4Q19 |
3Q19 |
2Q19 |
1Q19 |
4Q18 |
North America |
30% |
33% |
31% |
32% |
38% |
Asia Pacific |
55% |
59% |
59% |
57% |
51% |
Europe |
6% |
6% |
7% |
7% |
8% |
Japan |
9% |
2% |
3% |
4% |
3% |
Revenue from Asia Pacific decreased to 55%, while revenue contribution from North American customers declined to 30%. Revenue from Japan rose to 9% while European business remained flat at 6%.
Revenue Breakdown by Geometry |
|||||
Geometry |
4Q19 |
3Q19 |
2Q19 |
1Q19 |
4Q18 |
14nm and below |
0% |
0% |
0% |
0% |
1% |
14nm<x<=28nm |
10% |
12% |
13% |
10% |
10% |
28nm<x<=40nm |
22% |
26% |
24% |
20% |
23% |
40nm<x<=65nm |
16% |
14% |
14% |
14% |
13% |
65nm<x<=90nm |
18% |
12% |
12% |
12% |
11% |
90nm<x<=0.13um |
11% |
11% |
14% |
15% |
13% |
0.13um<x<=0.18um |
12% |
13% |
12% |
15% |
15% |
0.18um<x<=0.35um |
8% |
9% |
8% |
11% |
11% |
0.5um and above |
3% |
3% |
3% |
3% |
3% |
Revenue contribution from 28nm was 10% while 40nm business accounted for 22% of sales.
Revenue Breakdown by Customer Type |
|||||
Customer Type |
4Q19 |
3Q19 |
2Q19 |
1Q19 |
4Q18 |
Fabless |
87% |
92% |
93% |
94% |
92% |
IDM |
13% |
8% |
7% |
6% |
8% |
Revenue from fabless customers decreased to 87% of revenue.
Revenue Breakdown by Application (1) |
|||||
Application |
4Q19 |
3Q19 |
2Q19 |
1Q19 |
4Q18 |
Computer |
13% |
13% |
14% |
15% |
15% |
Communication |
54% |
54% |
52% |
48% |
44% |
Consumer |
24% |
26% |
28% |
29% |
30% |
Others |
9% |
7% |
6% |
8% |
11% |
Revenue from communication remained flat at 54%, while business from consumer applications declined to 24%. Computer related applications remained at 13% of revenue.
(1) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec, keyboard controller, monitor scaler, USB, I/O chipset. Communication consists of handset components, broadband, WLAN, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart cards, toys, etc.
|
Blended ASP Trend for Foundry Segment
Blended average selling price (ASP) in 4Q19 remained flat.
(To view ASP trend, visit http://www.umc.com/english/investors/4Q19_ASP_trend.asp)
Shipment and Utilization Rate3 for Foundry Segment
Wafer Shipments |
|||||
|
4Q19 |
3Q19 |
2Q19 |
1Q19 |
4Q18 |
Wafer Shipments
|
2,042 |
1,806 |
1,730 |
1,611 |
1,711 |
Quarterly Capacity Utilization Rate |
|||||
|
4Q19 |
3Q19 |
2Q19 |
1Q19 |
4Q18 |
Utilization Rate |
92% |
91% |
88% |
83% |
88% |
Total Capacity
|
2,237 |
2,004 |
1,970 |
1,937 |
1,958 |
In 4Q19, the acquisition of USJC helped to lift wafer shipments to increase 13.1% QoQ to 2,042K, while quarterly capacity rose 11.6% QoQ to 2,237K. As a result, the overall utilization rate in 4Q19 was 92%. Full-year 2019 utilization rate was 89%.
Capacity4 for Foundry Segment
Total capacity in the fourth quarter reached 2,237K 8-inch equivalent wafers, which included 98K 12-inch equivalent wafers from Fab 12M. We foresee that first quarter capacity will grow 1.8% sequentially to 2,278K 8-inch equivalent wafers, mainly reflecting the capacity expansion at Fab 8N and Fab 12A.
Annual Capacity in thousands of wafers |
|
Quarterly Capacity in thousands of wafers |
||||||||||
FAB |
Geometry
|
2019 |
2018 |
2017 |
2016 |
|
FAB |
1Q20E |
4Q19 |
3Q19 |
2Q19 |
|
WTK |
6" |
3.5 – 0.45 |
370 |
396 |
422 |
423 |
|
WTK |
92 |
93 |
93 |
93 |
Fab 8A |
8" |
0.5 – 0.25 |
825 |
825 |
825 |
827 |
|
Fab 8A |
200 |
207 |
207 |
207 |
Fab 8C |
8" |
0.35 – 0.11 |
436 |
383 |
357 |
348 |
|
Fab 8C |
112 |
111 |
111 |
109 |
Fab 8D |
8" |
0.13 – 0.09 |
359 |
347 |
341 |
342 |
|
Fab 8D |
92 |
90 |
90 |
90 |
Fab 8E |
8" |
0.5 – 0.18 |
426 |
418 |
418 |
419 |
|
Fab 8E |
112 |
111 |
107 |
105 |
Fab 8F |
8" |
0.18 – 0.11 |
434 |
431 |
417 |
401 |
|
Fab 8F |
121 |
110 |
110 |
108 |
Fab 8S |
8" |
0.18 – 0.11 |
372 |
372 |
347 |
336 |
|
Fab 8S |
93 |
93 |
93 |
93 |
Fab 8N |
8" |
0.5 – 0.11 |
831 |
771 |
753 |
750 |
|
Fab 8N |
228 |
218 |
208 |
205 |
Fab 12A |
12" |
0.13 – 0.014 |
997 |
997 |
970 |
885 |
|
Fab 12A |
260 |
250 |
250 |
250 |
Fab 12i |
12" |
0.13 – 0.040 |
595 |
555 |
537 |
584 |
|
Fab 12i |
154 |
155 |
155 |
144 |
Fab 12X |
12" |
0.040 – 0.028 |
203 |
183 |
97 |
9 |
|
Fab 12X |
52 |
51 |
51 |
51 |
Fab 12M |
12" |
0.090 – 0.040 |
98 |
- |
- |
- |
|
Fab 12M |
97 |
98 |
- |
- |
Total(1) |
8,148 |
7,673 |
7,304 |
6,983 |
|
Total |
2,278 |
2,237 |
2,004 |
1,970 |
||
YoY Growth Rate |
6% |
5% |
5% |
6% |
|
|
|
|
|
|
||
(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. Capacity total figures are expressed in 8-inch equivalent wafers.
CAPEX for Foundry Segment
Capital Expenditure by Year - in US$ billion |
|||||
Year |
2019 |
2018 |
2017 |
2016 |
2015 |
CAPEX |
$ 0.6 |
$ 0.7 |
$ 1.4 |
$ 2.8 |
$ 1.9 |
| 2020 CAPEX Plan | ||
8" |
12" |
Total |
15% |
85% |
US$1.0 billion |
CAPEX spending in 4Q19 was US$122 million, leading to a total spending US$574 million in capital expenditure for full year 2019. 2020 capex budget will be US$1.0 billion.
Brief Summary of Full Year 2019 Consolidated Results
Operating Results |
|||
(Amount: NT$ million) |
2019 |
2018 |
YoY %
|
Operating Revenues |
148,202 |
151,253 |
(2.0) |
Gross Profit |
21,315 |
22,840 |
(6.7) |
Operating Expenses |
(21,807) |
(22,160) |
(1.6) |
Net Other Operating Income & Expenses |
5,182 |
5,117 |
1.3 |
Operating Income |
4,690 |
5,797 |
(19.1) |
Net Non-Operating Income & Expenses |
1,046 |
(3,613) |
- |
Income Tax Benefit |
393 |
459 |
(14.3) |
Net Income Attributable to Stockholders of the Parent |
9,708 |
7,073 |
37.2 |
EPS (NT$ per share) |
0 .82 |
0.58 |
|
(US$ per ADS) |
0.136 |
0.096 |
|
- Consolidated revenue in NTD declined 2.0% YoY to NT$148.20 billion, from NT$151.25 billion in 2018.
- Gross margin was 14.4%, compared to 15.1% in 2018.
- Operating margin was 3.2%, compared to 3.8% in 2018.
- Net income attributable to stockholders of the parent was NT$9.71 billion in 2019.
- EPS was NT$0.82, or EPADS of US$0.136 for 2019.
- The contribution from 28nm technologies and below accounted for 11% in 2019. 40nm business accounted for 23% in 2019.
Annual Sales Breakdown in Revenue for Foundry Segment
Region |
2019 |
2018 |
North America |
32% |
38% |
Asia Pacific |
57% |
50% |
Europe |
6% |
9% |
Japan |
5% |
3% |
|
|
|
Technology |
2019 |
2018 |
14nm and below |
0% |
3% |
14nm<x<=28nm |
11% |
13% |
28nm<x<=40nm |
23% |
25% |
40nm<x<=65nm |
15% |
12% |
65nm<x<=90nm |
14% |
8% |
90nm<x<=0.13um |
12% |
12% |
0.13um<x<=0.18um |
13% |
14% |
0.18um<x<=0.35um |
9% |
10% |
0.5um and above |
3% |
3% |
|
|
|
Customer Type |
2019 |
2018 |
Fabless |
91% |
92% |
IDM |
9% |
8% |
|
|
|
Application |
2019 |
2018 |
Computer |
14% |
16% |
Communication |
52% |
45% |
Consumer |
26% |
29% |
Others |
8% |
10% |
First Quarter of 2020 Outlook & Guidance
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 $30.08 per U.S. Dollar. | ||||
1Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending December 31, 2019, the three-month period ending September 30, 2019, and the equivalent three-month period that ended December 31, 2018. For all 4Q19 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the December 31, 2019 exchange rate of NT$ 30.08 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200205005286/en/
Contact:
Michael Lin / David Wong
UMC, Investor Relations
+ 886-2-2658-9168, ext. 16900
jinhong_lin@umc.com
david_wong@umc.com