Robust demand in 4Q20 propels utilization to 99%; GM reaches 23.9%
Company posts 2020 net income of NT$29.19 billion or NT$2.42 EPS
Fourth Quarter 2020 Overview1:
- Revenue: NT$45.30 billion (US$1.59 billion)
- Gross margin: 23.9%; Operating margin: 12.4%
- Revenue from 28nm: 18%
- Capacity utilization rate: 99%
- Net income attributable to stockholders of the parent: NT$11.20 billion (US$393 million)
- Earnings per share: NT$0.92; earnings per ADS: US$0.162
TAIPEI, Taiwan — (BUSINESS WIRE) — January 27, 2021 — Fourth quarter consolidated revenue was NT$45.30 billion, which increased from NT$44.87 billion in 3Q20. Compared to the previous year, 4Q20 revenue was up 8.2% YoY from NT$41.85 billion in 4Q19. Consolidated gross margin for 4Q20 was 23.9%. Net income attributable to the stockholders of the parent was NT$11.20 billion, with earnings per ordinary share of NT$0.92.
Jason Wang, co-president of UMC, said, “Our business traction in Q3 carried over into Q4, lifting utilization rate to 99% and raising wafer shipments to 2.3 million 8-inch equivalents. The stable capacity utilization was driven by robust end market demand from consumer and computing related applications such as WiFi, Digital TV, micro-controllers, and power management IC. For full year 2020, UMC's revenue grew 26% in USD while operating income surged to NT$22.01 billion, reflecting solid utilization rates across both 8" and 12" facilities and optimization of our blended product mix. In particular, our enhanced 12" product mix primarily resulted from the substantial pick-up in 28nm wafer business as well as our successful integration of USJC’s 12” operations.”
Co-president Wang continued, “Looking into the first quarter, stable demand outlook will lead to an incremental increase in wafer shipments and blended ASP in USD. However, due to the continuing unfavorable foreign exchange rate, we anticipate the appreciation of the NT dollar will offset more than half of the implied growth projected for 1Q. For full year 2021, UMC continues to share the foundry industry's positive view in wafer demand. Hence, we will continue with the company's disciplined and measured capex strategy by allocating a budget of US$1.5 billion to accommodate the strong demand outlook in advanced technologies.”
Co-president Wang added, “ In terms of corporate sustainability, UMC first launched its Corporate Sustainability Committee in the domestic semiconductor industry in 2008, adhering to the vision of "people-oriented, symbiosis with the environment, and co-prosperity with the society," and is committed to the promotion of the ESG (environment, society, governance) three-dimensional sustainability concept. Among them, in terms of environmental sustainability, UMC regards climate change, water and energy management issues as challenges and opportunities for the company. In 2020, UMC revealed its “Green 2025” environmental protection goals to achieve 15% water saving, 15% electricity saving, 25% waste reduction, and 65% reduction in fluorine-containing greenhouse gases. Given Taiwan’s lack of rainfall over the past few months, water conservation and water recycling have become increasingly important themes in helping communities cope with longer-term droughts. By 2025, UMC anticipates the company’s efforts in water and wastewater management will reduce water consumption per product unit by 15% compared to 2015. We will continue to enhance our competitiveness and ensure that continuous and effective water conservation management is conducted in our wafer manufacturing operations to increase the recovery and reuse of water resources.”
Summary of Operating Results
Operating Results |
||||||||||
(Amount: NT$ million) |
4Q20 |
|
3Q20 |
|
QoQ %
|
4Q19 |
|
YoY %
|
||
Operating Revenues |
45,296 |
|
44,870 |
|
0.9 |
|
41,849 |
|
8.2 |
|
Gross Profit |
10,848 |
|
9,769 |
|
11.0 |
|
6,968 |
|
55.7 |
|
Operating Expenses |
(6,335 |
) |
(5,508 |
) |
15.0 |
|
(6,165 |
) |
2.8 |
|
Net Other Operating Income and Expenses |
1,102 |
|
2,872 |
|
(61.6 |
) |
1,215 |
|
(9.3 |
) |
Operating Income |
5,615 |
|
7,133 |
|
(21.3 |
) |
2,018 |
|
178.3 |
|
Net Non-Operating Income and Expenses |
5,619 |
|
2,074 |
|
171.0 |
|
946 |
|
493.4 |
|
Net Income Attributable to Stockholders of the Parent |
11,196 |
|
9,106 |
|
22.9 |
|
3,837 |
|
191.8 |
|
EPS (NT$ per share) |
0.92 |
|
0.75 |
|
|
0.33 |
|
|
||
(US$ per ADS) |
0.162 |
|
0.132 |
|
|
0.058 |
|
|
||
Operating revenues in 4Q20 slightly increased to NT$45.30 billion. Revenue contribution from 40nm and below technologies increased to 40%. Gross profit grew 11.0% QoQ to NT$10.85 billion, or 23.9% of revenue. Operating expenses increased 15.0% to NT$6.34 billion. Net other operating income declined to NT$1.10 billion. Net non-operating income was NT$5.62 billion. Net income attributable to stockholders of the parent grew 22.9% QoQ to NT$11.20 billion.
Earnings per ordinary share for the quarter was NT$0.92. Earnings per ADS was US$0.162. The basic weighted average number of outstanding shares in 4Q20 was 12,206,292,756, compared with 12,107,651,452 shares in 3Q20 and 11,708,869,140 shares in 4Q19. The diluted weighted average number of outstanding shares was 12,359,115,536 in 4Q20, compared with 12,179,561,492 shares in 3Q20 and 13,073,000,039 shares in 4Q19. The fully diluted shares counted on December 31, 2020 were approximately 12,375,194,000.
Detailed Financials Section
COGS & Expenses |
||||||||||
(Amount: NT$ million) |
4Q20 |
|
3Q20 |
|
QoQ %
|
4Q19 |
|
YoY %
|
||
Operating Revenues |
45,296 |
|
44,870 |
|
0.9 |
|
41,849 |
|
8.2 |
|
COGS |
(34,448 |
) |
(35,101 |
) |
(1.9 |
) |
(34,881 |
) |
(1.2 |
) |
Depreciation |
(10,436 |
) |
(10,911 |
) |
(4.4 |
) |
(11,069 |
) |
(5.7 |
) |
Other Mfg. Costs |
(24,012 |
) |
(24,190 |
) |
(0.7 |
) |
(23,812 |
) |
0.8 |
|
Gross Profit |
10,848 |
|
9,769 |
|
11.0 |
|
6,968 |
|
55.7 |
|
Gross Margin (%) |
23.9 |
% |
21.8 |
% |
|
16.7 |
% |
|
||
Operating Expenses |
(6,335 |
) |
(5,508 |
) |
15.0 |
|
(6,165 |
) |
2.8 |
|
G&A |
(1,966 |
) |
(1,614 |
) |
21.9 |
|
(1,603 |
) |
22.7 |
|
Sales & Marketing |
(1,175 |
) |
(1,009 |
) |
16.4 |
|
(996 |
) |
17.9 |
|
R&D |
(3,194 |
) |
(3,314 |
) |
(3.6 |
) |
(3,453 |
) |
(7.5 |
) |
Expected Credit
|
0 |
|
429 |
|
(99.9 |
) |
(113 |
) |
- |
|
Net Other Operating
|
1,102 |
|
2,872 |
|
(61.6 |
) |
1,215 |
|
(9.3 |
) |
Operating Income |
5,615 |
|
7,133 |
|
(21.3 |
) |
2,018 |
|
178.3 |
|
Operating revenues increased slightly to NT$45.30 billion. COGS declined 1.9% QoQ to NT$34.45 billion, which included a 4.4% QoQ decline in depreciation. Gross profit grew 11.0% QoQ to NT$10.85 billion, which was partially offset from the continuous appreciation of the NT dollar. Operating expenses increased 15% QoQ to NT$6.34 billion, as G&A increased 21.9% sequentially to NT$1.97 billion while Sales & Marketing rose 16.4% QoQ to NT$1.18 billion. R&D decreased 3.6% QoQ to NT$3.19 billion, representing 7.1% of 4Q20 operating revenues. Net other operating income was NT$1.10 billion. In 4Q20, operating income declined 21.3% QoQ to NT$5.62 billion.
Non-Operating Income and Expenses |
||||||
(Amount: NT$ million) |
4Q20 |
|
3Q20 |
|
4Q19 |
|
Non-Operating Income and Expenses |
5,619 |
|
2,074 |
|
946 |
|
Net Interest Income and Expenses |
(278 |
) |
(314 |
) |
(468 |
) |
Net Investment Gain and Loss |
5,703 |
|
3,944 |
|
1,064 |
|
Exchange Gain and Loss |
199 |
|
259 |
|
188 |
|
Other Gain and Loss |
(5 |
) |
(1,815 |
) |
162 |
|
Net non-operating income in 4Q20 was NT$5.62 billion, mainly resulting from NT$5.70 billion in net investment gain and NT$199 million in exchange gain, which was primarily offset by NT$278 million in net interest expense.
| Cash Flow Summary | ||||
(Amount: NT$ million) |
For the 3-Month
|
For the 3-Month
|
||
Cash Flow from Operating Activities |
16,072 |
|
18,538 |
|
Net income before tax |
11,234 |
|
9,207 |
|
Depreciation & Amortization |
11,993 |
|
12,170 |
|
Expected credit impairment loss (gain) |
(0 |
) |
(429 |
) |
Share of profit of associates and joint ventures |
(3,822 |
) |
(2,778 |
) |
Income tax paid |
(144 |
) |
(229 |
) |
Changes in working capital & others |
(3,189 |
) |
597 |
|
Cash Flow from Investing Activities |
(17,437 |
) |
(5,686 |
) |
Acquisition of PP&E |
(11,738 |
) |
(6,707 |
) |
Proceeds from disposal of PP&E |
(20 |
) |
1,720 |
|
Acquisition of intangible assets |
(293 |
) |
(815 |
) |
Decrease (increase) in other financial assets |
(4,625 |
) |
281 |
|
Others |
(761 |
) |
(165 |
) |
Cash Flow from Financing Activities |
(3,153 |
) |
(13,652 |
) |
Bank loans |
(3,000 |
) |
(4,716 |
) |
Treasury stock acquired |
- |
|
(477 |
) |
Treasury stock sold to employees |
- |
|
1,678 |
|
Cash dividends |
- |
|
(9,765 |
) |
Others |
(153 |
) |
(372 |
) |
Effect of Exchange Rate |
(273 |
) |
(233 |
) |
Net Cash Flow |
(4,791 |
) |
(1,033 |
) |
Beginning balance |
98,839 |
|
99,872 |
|
Ending balance |
94,048 |
|
98,839 |
|
In 4Q20, cash inflow from operating activities was NT$16.07 billion. Cash outflow from investing activities totaled NT$17.44 billion, which included NT$12.04 billion in capital expenditure, resulting in free cash flow of NT$4.03 billion. Cash outflow from financing activities was NT$3.15 billion, primarily from NT$3.00 billion in the repayment of bank loans. Net cash outflow in 4Q20 was NT$4.79 billion. Over the next 12 months, the company expects to repay NT$6.34 billion in bank loans.
Current Assets |
|||
(Amount: NT$ billion) |
4Q20 |
3Q20 |
4Q19 |
Cash and Cash Equivalents |
94.05 |
98.84 |
95.49 |
Notes & Accounts Receivable |
27.27 |
26.96 |
25.73 |
Days Sales Outstanding |
55 |
55 |
54 |
Inventories, net |
22.55 |
22.86 |
21.72 |
Days of Inventory |
60 |
60 |
55 |
Total Current Assets |
164.31 |
163.48 |
153.76 |
Cash and cash equivalents decreased to NT$94.05 billion. Days of inventory remained at 60 days.
Liabilities |
||||||
(Amount: NT$ billion) |
4Q20 |
|
3Q20 |
|
4Q19 |
|
Total Current Liabilities |
78.24 |
|
59.15 |
|
72.71 |
|
Notes & Accounts Payable |
7.86 |
|
7.70 |
|
8.88 |
|
Short-Term Credit / Bonds |
38.04 |
|
16.40 |
|
36.81 |
|
Payables on Equipment |
5.45 |
|
7.38 |
|
3.03 |
|
Other |
26.89 |
|
27.67 |
|
23.99 |
|
Long-Term Credit / Bonds |
24.77 |
|
49.46 |
|
47.89 |
|
Long-Term Investment Liabilities |
20.75 |
|
20.14 |
|
20.09 |
|
Total Liabilities |
141.74 |
|
147.33 |
|
162.97 |
|
Debt to Equity |
60 |
% |
67 |
% |
79 |
% |
Current liabilities increased to NT$78.24 billion, mainly from increase of short-term credit/bonds to NT$38.04 billion as long-term credit/bonds declined to NT$24.77 billion. Total liabilities declined to NT$141.74 billion, leading to a debt to equity ratio of 60%.
Analysis of Revenue2
Revenue Breakdown by Region |
||||||||||
Region |
4Q20 |
|
3Q20 |
|
2Q20 |
|
1Q20 |
|
4Q19 |
|
North America |
29 |
% |
30 |
% |
31 |
% |
29 |
% |
30 |
% |
Asia Pacific |
61 |
% |
57 |
% |
55 |
% |
56 |
% |
55 |
% |
Europe |
5 |
% |
6 |
% |
5 |
% |
6 |
% |
6 |
% |
Japan |
5 |
% |
7 |
% |
9 |
% |
9 |
% |
9 |
% |
Revenue from Asia Pacific rose to 61% as business from North America declined to 29% of sales. Business from Europe was 5% while contribution from Japan declined to 5%.
Revenue Breakdown by Geometry |
||||||||||
Geometry |
4Q20 |
|
3Q20 |
|
2Q20 |
|
1Q20 |
|
4Q19 |
|
14nm and below |
0 |
% |
0 |
% |
0 |
% |
0 |
% |
0 |
% |
14nm<x<=28nm |
18 |
% |
14 |
% |
13 |
% |
9 |
% |
10 |
% |
28nm<x<=40nm |
22 |
% |
23 |
% |
23 |
% |
25 |
% |
22 |
% |
40nm<x<=65nm |
18 |
% |
19 |
% |
16 |
% |
16 |
% |
16 |
% |
65nm<x<=90nm |
8 |
% |
10 |
% |
13 |
% |
15 |
% |
18 |
% |
90nm<x<=0.13um |
11 |
% |
11 |
% |
11 |
% |
11 |
% |
11 |
% |
0.13um<x<=0.18um |
13 |
% |
13 |
% |
13 |
% |
13 |
% |
12 |
% |
0.18um<x<=0.35um |
8 |
% |
8 |
% |
8 |
% |
8 |
% |
8 |
% |
0.5um and above |
2 |
% |
2 |
% |
3 |
% |
3 |
% |
3 |
% |
Revenue contribution from 28nm continued to increase, growing to 18% of the business while 40nm contribution declined to 22% of sales.
Revenue Breakdown by Customer Type |
||||||||||
Customer Type |
4Q20 |
|
3Q20 |
|
2Q20 |
|
1Q20 |
|
4Q19 |
|
Fabless |
87 |
% |
88 |
% |
88 |
% |
88 |
% |
87 |
% |
IDM |
13 |
% |
12 |
% |
12 |
% |
12 |
% |
13 |
% |
Revenue from fabless customers decreased to 87% of revenue.
Revenue Breakdown by Application (1) |
||||||||||
Application |
4Q20 |
|
3Q20 |
|
2Q20 |
|
1Q20 |
|
4Q19 |
|
Computer |
16 |
% |
13 |
% |
14 |
% |
13 |
% |
13 |
% |
Communication |
49 |
% |
54 |
% |
51 |
% |
54 |
% |
54 |
% |
Consumer |
25 |
% |
24 |
% |
24 |
% |
24 |
% |
24 |
% |
Others |
10 |
% |
9 |
% |
11 |
% |
9 |
% |
9 |
% |
Revenue from the communication segment declined to 49%, while business from computer applications grew to 16%. Business from consumer applications increased to 25% as other segments increased to 10%.
(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, WLAN. Communication consists of handset components, broadband, 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
Blended average selling price (ASP) increased in 4Q20.
(To view blended ASP trend, please click here for 4Q20 ASP)
Shipment and Utilization Rate3
Wafer Shipments |
||||||||||
|
4Q20 |
|
3Q20 |
|
2Q20 |
|
1Q20 |
|
4Q19 |
|
Wafer Shipments
|
2,293 |
|
2,254 |
|
2,218 |
|
2,148 |
|
2,042 |
|
|
||||||||||
Quarterly Capacity Utilization Rate |
||||||||||
|
4Q20 |
|
3Q20 |
|
2Q20 |
|
1Q20 |
|
4Q19 |
|
Utilization Rate |
99 |
% |
97 |
% |
98 |
% |
93 |
% |
92 |
% |
Total Capacity
|
2,311 |
|
2,308 |
|
2,291 |
|
2,278 |
|
2,237 |
|
In 4Q20, wafer shipments increased 1.7% QoQ to 2,293K, while quarterly capacity remained flat at 2,311K. As a result, the overall utilization rate in 4Q20 was 99%.
Capacity4
Total capacity in the fourth quarter totaled 2,311K 8-inch equivalent wafers. We foresee in the first quarter, that capacity will decline to 2,280K 8-inch equivalent wafers, mainly reflecting the product mix changes at WTK and Fab 8A.
Annual Capacity in
|
|
Quarterly Capacity in
|
||||||||||||||
FAB |
Geometry
|
2020 |
|
2019 |
|
2018 |
|
2017 |
|
|
FAB |
1Q21E |
4Q20 |
3Q20 |
2Q20 |
|
WTK |
6" |
3.5 – 0.45 |
371 |
|
370 |
|
396 |
|
422 |
|
|
WTK |
84 |
93 |
93 |
93 |
8A |
8" |
0.5 – 0.25 |
802 |
|
825 |
|
825 |
|
825 |
|
|
8A |
186 |
201 |
201 |
201 |
8C |
8" |
0.35 – 0.11 |
452 |
|
436 |
|
383 |
|
357 |
|
|
8C |
113 |
113 |
113 |
113 |
8D |
8" |
0.13 – 0.09 |
371 |
|
359 |
|
347 |
|
341 |
|
|
8D |
94 |
93 |
93 |
93 |
8E |
8" |
0.5 – 0.15 |
449 |
|
426 |
|
418 |
|
418 |
|
|
8E |
113 |
113 |
113 |
113 |
8F |
8" |
0.18 – 0.11 |
485 |
|
434 |
|
431 |
|
417 |
|
|
8F |
120 |
122 |
122 |
122 |
8S |
8" |
0.18 – 0.11 |
373 |
|
372 |
|
372 |
|
347 |
|
|
8S |
101 |
93 |
93 |
93 |
8N |
8" |
0.5 – 0.11 |
917 |
|
831 |
|
771 |
|
753 |
|
|
8N |
226 |
230 |
230 |
230 |
12A |
12" |
0.13 – 0.014 |
1044 |
|
997 |
|
997 |
|
970 |
|
|
12A |
257 |
261 |
261 |
261 |
12i |
12" |
0.13 – 0.040 |
628 |
|
595 |
|
555 |
|
537 |
|
|
12i |
157 |
160 |
160 |
155 |
12X |
12" |
0.040 – 0.028 |
217 |
|
203 |
|
183 |
|
97 |
|
|
12X |
59 |
57 |
56 |
53 |
12M |
12" |
0.090 – 0.040 |
391 |
|
98 |
|
- |
|
- |
|
|
12M |
96 |
98 |
98 |
98 |
Total(1) |
9,188 |
|
8,148 |
|
7,673 |
|
7,304 |
|
|
Total |
2,280 |
2,311 |
2,308 |
2,291 |
||
YoY Growth Rate |
13 |
% |
6 |
% |
5 |
% |
5 |
% |
|
|
|
|
|
|
||
(1) One 6-inch wafer is converted into 0.5625 (62/82) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25 (122/82) 8-inch equivalent wafers. Total capacity figures are expressed in 8-inch equivalent wafers.
CAPEX
Capital Expenditure by Year - in US$ billion |
||||||||||
Year |
|
2020 |
|
2019 |
|
2018 |
|
2017 |
|
2016 |
CAPEX |
$ |
1.0 |
$ |
0.6 |
$ |
0.7 |
$ |
1.4 |
$ |
2.8 |
| 2021 CAPEX Plan | ||||
8" |
12" |
Total |
||
15 |
% |
85 |
% |
US$1.5 billion |
CAPEX spending in 4Q20 was US$418 million, leading to a total of US$1.0 billion in capital expenditure for 2020. Full year 2021 CAPEX is budgeted at US$1.5 billion.
Brief Summary of Full Year 2020 Consolidated Results
Operating Results |
|||||
(Amount: NT$ million) |
2020 |
|
2019 |
|
YoY %
|
Operating Revenues |
176,821 |
|
148,202 |
|
19.3 |
Gross Profit |
38,997 |
|
21,315 |
|
83.0 |
Operating Expenses |
(23,244 |
) |
(21,807 |
) |
6.6 |
Net Other Operating Income
|
6,254 |
|
5,182 |
|
20.7 |
Operating Income |
22,007 |
|
4,690 |
|
369.3 |
Net Non-Operating Income
|
5,919 |
|
1,046 |
|
465.9 |
Income Tax (Expense)
|
(746 |
) |
393 |
|
- |
Net Income Attributable to
|
29,189 |
|
9,708 |
|
200.7 |
EPS (NT$ per share) |
2.42 |
0.82 |
|
|
|
(US$ per ADS) |
0.425 |
|
0.144 |
|
|
- Consolidated revenue in NTD increased 19.3% YoY to NT$176.82 billion, from NT$148.20 billion in 2019.
- Gross margin was 22.1%, compared to 14.4% in 2019.
- Operating margin was 12.5%, compared to 3.2% in 2019.
- Net income attributable to stockholders of the parent was NT$29.19 billion in 2020.
- EPS was NT$2.42, or EPADS of US$0.425 for 2020.
- The contribution from 28nm technologies and below accounted for 14% in 2020. 40nm business accounted for 23% in 2020.
Annual Sales Breakdown in Revenue for Foundry Segment
Region |
2020 |
|
2019 |
|
North America |
30 |
% |
32 |
% |
Asia Pacific |
57 |
% |
57 |
% |
Europe |
6 |
% |
6 |
% |
Japan |
7 |
% |
5 |
% |
|
|
|
||
Technology |
2020 |
|
2019 |
|
14nm and below |
0 |
% |
0 |
% |
14nm<x<=28nm |
14 |
% |
11 |
% |
28nm<x<=40nm |
23 |
% |
23 |
% |
40nm<x<=65nm |
17 |
% |
15 |
% |
65nm<x<=90nm |
11 |
% |
14 |
% |
90nm<x<=0.13um |
11 |
% |
12 |
% |
0.13um<x<=0.18um |
13 |
% |
13 |
% |
0.18um<x<=0.35um |
8 |
% |
9 |
% |
0.5um and above |
3 |
% |
3 |
% |
|
|
|
||
Customer Type |
2020 |
|
2019 |
|
Fabless |
88 |
% |
91 |
% |
IDM |
12 |
% |
9 |
% |
|
|
|
||
Application |
2020 |
|
2019 |
|
Computer |
14 |
% |
14 |
% |
Communication |
52 |
% |
52 |
% |
Consumer |
24 |
% |
26 |
% |
Others |
10 |
% |
8 |
% |
First Quarter 2021 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Wafer Shipments: To increase by approximately 2%
- ASP in USD: To increase by 2-3%
- Gross Profit Margin: To be in the mid-20% range
- Capacity Utilization: 100%
- 2021 CAPEX: US$1.5 billion
Recent Developments / Announcements
Dec 10, 2020 |
eMemory and PUFsecurity Announce with UMC World’s 1st Secure Embedded Solution |
Oct 29, 2020 |
Please visit UMC’s website for further details regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, January 27, 2021
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 4Q20 results announcement will be available at
www.umc.com under the “Investors / Events” section.
About UMC
UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry. The company provides high quality IC production with a focus on both logic and specialty technologies to serve every major sector of the electronics industry. UMC’s comprehensive technology and manufacturing solutions include logic/RF, embedded high voltage, embedded flash, RFSOI/BCD and IATF-16949 automotive manufacturing certification for all its manufacturing facilities. UMC operates 12 fabs that are strategically located throughout Asia with a maximum capacity of more than 750,000 8-inch equivalent wafers per month. The company employs approximately 19,500 people worldwide, with offices in Taiwan, China, United States, Europe, Japan, Korea and Singapore. For more information, please visit: http://www.umc.com.
Safe Harbor Statements
This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding anticipated financial results for the first quarter of 2021; the expected wafer shipment and ASP; the anticipated annual budget; capex strategies; environmental protection goals and water management strategies; impact of foreign currency exchange rates; expected foundry capacities; the ability to obtain new business opportunities; and information under the heading “First Quarter of 2021 Outlook and Guidance.”
These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) dependence upon the frequent introduction of new services and technologies based on the latest developments in the industry in which UMC operates; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international business activities; (iv) dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including natural disasters, terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risk factors is included in UMC’s filings with the United States Securities and Exchange Commission, including its Annual Report on Form 20-F. All information provided in this release is as of the date of this release and are based on assumptions that UMC believes to be reasonable as of this date, and UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
The financial statements included in this release are prepared and published in accordance with Taiwan International Financial Reporting Standards, or TIFRSs, recognized by the Financial Supervisory Commission in the ROC, which is different from International Financial Reporting Standards, or IFRSs, issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from generally accepted accounting principles in the ROC and generally accepted accounting principles in the United States.
- FINANCIAL TABLES TO FOLLOW -
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | ||||||||
| Consolidated Condensed Balance Sheet | ||||||||
| As of December 31, 2020 | ||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | ||||||||
| December 31, 2020 | ||||||||
| US$ | NT$ | % | ||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | 3,302 |
|
94,048 |
|
24.9 |
% |
||
| Accounts receivable, net | 958 |
|
27,273 |
|
7.2 |
% |
||
| Inventories, net | 792 |
|
22,552 |
|
6.0 |
% |
||
| Other current assets | 717 |
|
20,433 |
|
5.4 |
% |
||
| Total current assets | 5,769 |
|
164,306 |
|
43.5 |
% |
||
| Non-current assets | ||||||||
| Funds and investments | 1,987 |
|
56,578 |
|
15.0 |
% |
||
| Property, plant and equipment | 4,662 |
|
132,775 |
|
35.2 |
% |
||
| Right-of-use assets | 272 |
|
7,748 |
|
2.1 |
% |
||
| Other non-current assets | 565 |
|
16,109 |
|
4.2 |
% |
||
| Total non-current assets | 7,486 |
|
213,210 |
|
56.5 |
% |
||
| Total assets | 13,255 |
|
377,516 |
|
100.0 |
% |
||
| Liabilities | ||||||||
| Current liabilities | ||||||||
| Short-term loans | 388 |
|
11,057 |
|
2.9 |
% |
||
| Payables | 1,132 |
|
32,240 |
|
8.5 |
% |
||
| Current portion of long-term liabilities | 948 |
|
26,985 |
|
7.2 |
% |
||
| Other current liabilities | 279 |
|
7,961 |
|
2.2 |
% |
||
| Total current liabilities | 2,747 |
|
78,243 |
|
20.8 |
% |
||
| Non-current liabilities | ||||||||
| Bonds payable | 586 |
|
16,690 |
|
4.4 |
% |
||
| Long-term loans | 284 |
|
8,081 |
|
2.1 |
% |
||
| Lease liabilities, noncurrent | 177 |
|
5,027 |
|
1.3 |
% |
||
| Other non-current liabilities | 1,183 |
|
33,702 |
|
9.0 |
% |
||
| Total non-current liabilities | 2,230 |
|
63,500 |
|
16.8 |
% |
||
| Total liabilities | 4,977 |
|
141,743 |
|
37.6 |
% |
||
| Equity | ||||||||
| Equity attributable to the parent company | ||||||||
| Capital | 4,362 |
|
124,224 |
|
32.9 |
% |
||
| Additional paid-in capital | 1,517 |
|
43,211 |
|
11.4 |
% |
||
| Retained earnings and other components of equity | 2,400 |
|
68,345 |
|
18.1 |
% |
||
| Treasury stock | (4 |
) |
(120 |
) |
(0.0 |
%) |
||
| Total equity attributable to the parent company | 8,275 |
|
235,660 |
|
62.4 |
% |
||
| Non-controlling interests | 3 |
|
113 |
|
0.0 |
% |
||
| Total equity | 8,278 |
|
235,773 |
|
62.4 |
% |
||
| Total liabilities and equity | 13,255 |
|
377,516 |
|
100.0 |
% |
||
| Note：New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2020 exchange rate of NT $28.48 per U.S.Dollar. | ||||||||
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES |
|||||||||||||||||||||||||||||
Consolidated Condensed Statements of Comprehensive Income |
|||||||||||||||||||||||||||||
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) |
|||||||||||||||||||||||||||||
Except Per Share and Per ADS Data |
|||||||||||||||||||||||||||||
Year over Year Comparison |
Quarter over Quarter Comparison |
||||||||||||||||||||||||||||
Three-Month Period Ended |
Three-Month Period Ended |
||||||||||||||||||||||||||||
December 31, 2020 |
December 31, 2019 |
Chg. |
December 31, 2020 |
September 30, 2020 |
Chg. |
||||||||||||||||||||||||
| US$ | NT$ | US$ | NT$ | % | US$ | NT$ | US$ | NT$ | % | ||||||||||||||||||||
| Operating revenues | 1,590 |
|
45,296 |
|
1,469 |
|
41,849 |
|
8.2 |
% |
1,590 |
|
45,296 |
|
1,575 |
|
44,870 |
|
0.9 |
% |
|||||||||
| Operating costs | (1,209 |
) |
(34,448 |
) |
(1,224 |
) |
(34,881 |
) |
(1.2 |
%) |
(1,209 |
) |
(34,448 |
) |
(1,232 |
) |
(35,101 |
) |
(1.9 |
%) |
|||||||||
| Gross profit | 381 |
|
10,848 |
|
245 |
|
6,968 |
|
55.7 |
% |
381 |
|
10,848 |
|
343 |
|
9,769 |
|
11.0 |
% |
|||||||||
23.9 |
% |
23.9 |
% |
16.7 |
% |
16.7 |
% |
23.9 |
% |
23.9 |
% |
21.8 |
% |
21.8 |
% |
||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||
| - Sales and marketing expenses | (41 |
) |
(1,175 |
) |
(35 |
) |
(996 |
) |
17.9 |
% |
(41 |
) |
(1,175 |
) |
(35 |
) |
(1,009 |
) |
16.4 |
% |
|||||||||
| - General and administrative expenses | (69 |
) |
(1,966 |
) |
(56 |
) |
(1,603 |
) |
22.7 |
% |
(69 |
) |
(1,966 |
) |
(58 |
) |
(1,614 |
) |
21.9 |
% |
|||||||||
| - Research and development expenses | (112 |
) |
(3,194 |
) |
(121 |
) |
(3,453 |
) |
(7.5 |
%) |
(112 |
) |
(3,194 |
) |
(116 |
) |
(3,314 |
) |
(3.6 |
%) |
|||||||||
| - Expected credit impairment gain (loss) | 0 |
|
0 |
|
(4 |
) |
(113 |
) |
- |
|
0 |
|
0 |
|
15 |
|
429 |
|
(99.9 |
%) |
|||||||||
| Subtotal | (222 |
) |
(6,335 |
) |
(216 |
) |
(6,165 |
) |
2.8 |
% |
(222 |
) |
(6,335 |
) |
(194 |
) |
(5,508 |
) |
15.0 |
% |
|||||||||
| Net other operating income and expenses | 38 |
|
1,102 |
|
42 |
|
1,215 |
|
(9.3 |
%) |
38 |
|
1,102 |
|
101 |
|
2,872 |
|
(61.6 |
%) |
|||||||||
| Operating income | 197 |
|
5,615 |
|
71 |
|
2,018 |
|
178.3 |
% |
197 |
|
5,615 |
|
250 |
|
7,133 |
|
(21.3 |
%) |
|||||||||
12.4 |
% |
12.4 |
% |
4.8 |
% |
4.8 |
% |
12.4 |
% |
12.4 |
% |
15.9 |
% |
15.9 |
% |
||||||||||||||
| Net non-operating income and expenses | 197 |
|
5,619 |
|
33 |
|
946 |
|
493.4 |
% |
197 |
|
5,619 |
|
73 |
|
2,074 |
|
171.0 |
% |
|||||||||
| Income from continuing operations
before income tax |
394 |
|
11,234 |
|
104 |
|
2,964 |
|
278.9 |
% |
394 |
|
11,234 |
|
323 |
|
9,207 |
|
22.0 |
% |
|||||||||
24.8 |
% |
24.8 |
% |
7.1 |
% |
7.1 |
% |
24.8 |
% |
24.8 |
% |
20.5 |
% |
20.5 |
% |
||||||||||||||
| Income tax benefit (expenses) | (12 |
) |
(344 |
) |
7 |
|
191 |
|
- |
|
(12 |
) |
(344 |
) |
(7 |
) |
(197 |
) |
74.8 |
% |
|||||||||
| Net income | 382 |
|
10,890 |
|
111 |
|
3,155 |
|
245.1 |
% |
382 |
|
10,890 |
|
316 |
|
9,010 |
|
20.9 |
% |
|||||||||
24.0 |
% |
24.0 |
% |
7.5 |
% |
7.5 |
% |
24.0 |
% |
24.0 |
% |
20.1 |
% |
20.1 |
% |
||||||||||||||
| Other comprehensive income (loss) | 135 |
|
3,831 |
|
(54 |
) |
(1,538 |
) |
- |
|
135 |
|
3,831 |
|
49 |
|
1,390 |
|
175.6 |
% |
|||||||||
| Total comprehensive income (loss) | 517 |
|
14,721 |
|
57 |
|
1,617 |
|
810.3 |
% |
517 |
|
14,721 |
|
365 |
|
10,400 |
|
41.5 |
% |
|||||||||
| Net income attributable to: | |||||||||||||||||||||||||||||
| Stockholders of the parent | 393 |
|
11,196 |
|
135 |
|
3,837 |
|
191.8 |
% |
393 |
|
11,196 |
|
320 |
|
9,106 |
|
22.9 |
% |
|||||||||
| Non-controlling interests | (11 |
) |
(306 |
) |
(24 |
) |
(682 |
) |
(55.1 |
%) |
(11 |
) |
(306 |
) |
(4 |
) |
(96 |
) |
216.5 |
% |
|||||||||
| Comprehensive income (loss) attributable to: | |||||||||||||||||||||||||||||
| Stockholders of the parent | 528 |
|
15,027 |
|
80 |
|
2,291 |
|
556.0 |
% |
528 |
|
15,027 |
|
369 |
|
10,497 |
|
43.2 |
% |
|||||||||
| Non-controlling interests | (11 |
) |
(306 |
) |
(23 |
) |
(674 |
) |
(54.6 |
%) |
(11 |
) |
(306 |
) |
(4 |
) |
(97 |
) |
216.5 |
% |
|||||||||
| Earnings per share-basic | 0.032 |
|
0.92 |
|
0.012 |
|
0.33 |
|
0.032 |
|
0.92 |
|
0.026 |
|
0.75 |
|
|||||||||||||
| Earnings per ADS (2) | 0.162 |
|
4.60 |
|
0.058 |
|
1.65 |
|
0.162 |
|
4.60 |
|
0.132 |
|
3.75 |
|
|||||||||||||
| Weighted average number of shares | |||||||||||||||||||||||||||||
| outstanding (in millions) | 12,206 |
|
11,709 |
|
12,206 |
|
12,108 |
|
|||||||||||||||||||||
| Notes: | |||||||||||||||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2020 exchange rate of NT $28.48 per U.S. Dollar. | |||||||||||||||||||||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||||||||||||||||||||
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES |
|||||||||||||||||
Consolidated Condensed Statements of Comprehensive Income |
|||||||||||||||||
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) |
|||||||||||||||||
Except Per Share and Per ADS Data |
|||||||||||||||||
For the Three-Month Period Ended |
For the Twelve-Month Period Ended |
||||||||||||||||
December 31, 2020 |
December 31, 2020 |
||||||||||||||||
US$ |
NT$ |
% |
US$ |
NT$ |
% |
||||||||||||
| Operating revenues | 1,590 |
|
45,296 |
|
100.0 |
% |
6,209 |
|
176,821 |
|
100.0 |
% |
|||||
| Operating costs | (1,209 |
) |
(34,448 |
) |
(76.1 |
%) |
(4,840 |
) |
(137,824 |
) |
(77.9 |
%) |
|||||
| Gross profit | 381 |
|
10,848 |
|
23.9 |
% |
1,369 |
|
38,997 |
|
22.1 |
% |
|||||
| Operating expenses | |||||||||||||||||
| - Sales and marketing expenses | (41 |
) |
(1,175 |
) |
(2.6 |
%) |
(146 |
) |
(4,152 |
) |
(2.4 |
%) |
|||||
| - General and administrative expenses | (69 |
) |
(1,966 |
) |
(4.3 |
%) |
(233 |
) |
(6,664 |
) |
(3.7 |
%) |
|||||
| - Research and development expenses | (112 |
) |
(3,194 |
) |
(7.1 |
%) |
(453 |
) |
(12,896 |
) |
(7.3 |
%) |
|||||
| - Expected credit impairment gain | 0 |
|
0 |
|
0.0 |
% |
16 |
|
468 |
|
0.3 |
% |
|||||
| Subtotal | (222 |
) |
(6,335 |
) |
(14.0 |
%) |
(816 |
) |
(23,244 |
) |
(13.1 |
%) |
|||||
| Net other operating income and expenses | 38 |
|
1,102 |
|
2.5 |
% |
220 |
|
6,254 |
|
3.5 |
% |
|||||
| Operating income | 197 |
|
5,615 |
|
12.4 |
% |
773 |
|
22,007 |
|
12.5 |
% |
|||||
| Net non-operating income and expenses | 197 |
|
5,619 |
|
12.4 |
% |
208 |
|
5,919 |
|
3.3 |
% |
|||||
| Income from continuing operations
before income tax |
394 |
|
11,234 |
|
24.8 |
% |
981 |
|
27,926 |
|
15.8 |
% |
|||||
| Income tax expense | (12 |
) |
(344 |
) |
(0.8 |
%) |
(27 |
) |
(746 |
) |
(0.4 |
%) |
|||||
| Net income | 382 |
|
10,890 |
|
24.0 |
% |
954 |
|
27,180 |
|
15.4 |
% |
|||||
| Other comprehensive income (loss) | 135 |
|
3,831 |
|
8.5 |
% |
165 |
|
4,686 |
|
2.6 |
% |
|||||
| Total comprehensive income (loss) | 517 |
|
14,721 |
|
32.5 |
% |
1,119 |
|
31,866 |
|
18.0 |
% |
|||||
| Net income attributable to: | |||||||||||||||||
| Stockholders of the parent | 393 |
|
11,196 |
|
24.7 |
% |
1,025 |
|
29,189 |
|
16.5 |
% |
|||||
| Non-controlling interests | (11 |
) |
(306 |
) |
(0.7 |
%) |
(71 |
) |
(2,009 |
) |
(1.1 |
%) |
|||||
| Comprehensive income (loss) attributable to: | |||||||||||||||||
| Stockholders of the parent | 528 |
|
15,027 |
|
33.2 |
% |
1,185 |
|
33,748 |
|
19.1 |
% |
|||||
| Non-controlling interests | (11 |
) |
(306 |
) |
(0.7 |
%) |
(66 |
) |
(1,882 |
) |
(1.1 |
%) |
|||||
| Earnings per share-basic | 0.032 |
|
0.92 |
|
0.085 |
|
2.42 |
|
|||||||||
| Earnings per ADS (2) | 0.162 |
|
4.60 |
|
0.425 |
|
12.10 |
|
|||||||||
| Weighted average number of shares
outstanding (in millions) |
12,206 |
|
12,073 |
|
|||||||||||||
| Notes: | |||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2020 exchange rate of NT $28.48 per U.S. Dollar. | |||||||||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||||||||
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES |
|||||
Consolidated Condensed Statement of Cash Flows |
|||||
For The Twelve-Month Period Ended December 31, 2020 |
|||||
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) |
|||||
US$ |
NT$ |
||||
| Cash flows from operating activities : | |||||
| Net income before tax | 981 |
|
27,926 |
|
|
| Depreciation & Amortization | 1,717 |
|
48,908 |
|
|
| Share of profit of associates and joint ventures | (234 |
) |
(6,668 |
) |
|
| Changes in working capital & others | (156 |
) |
(4,421 |
) |
|
| Net cash provided by operating activities | 2,308 |
|
65,745 |
|
|
| Cash flows from investing activities : | |||||
| Acquisition of property, plant and equipment | (925 |
) |
(26,345 |
) |
|
| Proceeds from disposal of property, plant and equipment | 61 |
|
1,737 |
|
|
| Acquisition of intangible assets | (71 |
) |
(2,009 |
) |
|
| Increase in other financial assets | (437 |
) |
(12,438 |
) |
|
| Others | (36 |
) |
(1,057 |
) |
|
| Net cash used in investing activities | (1,408 |
) |
(40,112 |
) |
|
| Cash flows from financing activities : | |||||
| Decrease in short-term loans | (33 |
) |
(933 |
) |
|
| Redemption of bonds | (481 |
) |
(13,703 |
) |
|
| Proceeds from long-term loans | 475 |
|
13,529 |
|
|
| Repayments of long-term loans | (470 |
) |
(13,392 |
) |
|
| Cash dividends | (343 |
) |
(9,766 |
) |
|
| Treasury stock acquired | (59 |
) |
(1,678 |
) |
|
| Treasury stock sold to employees | 59 |
|
1,678 |
|
|
| Others | (47 |
) |
(1,336 |
) |
|
| Net cash used in financing activities | (899 |
) |
(25,601 |
) |
|
| Effect of exchange rate changes on cash and cash equivalents | (52 |
) |
(1,476 |
) |
|
| Net decrease in cash and cash equivalents | (51 |
) |
(1,444 |
) |
|
| Cash and cash equivalents at beginning of period | 3,353 |
|
95,492 |
|
|
| Cash and cash equivalents at end of period | 3,302 |
|
94,048 |
|
|
| Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2020 exchange rate of NT $28.48 per U.S. Dollar. | |||||
1Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending December 31, 2020, the three-month period ending September 30, 2020, and the equivalent three-month period that ended December 31, 2019. For all 4Q20 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the December 31, 2020 exchange rate of NT$ 28.48 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/20210127005391/en/
Contact:
Michael Lin / David Wong
UMC, Investor Relations
+ 886-2-2658-9168, ext. 16900
jinhong_lin@umc.com
david_wong@umc.com