UMC Reports Fourth Quarter 2022 Results

First Quarter 2023 Outlook & Guidance

Quarter-over-Quarter Guidance:

Wafer Shipments: To decrease in the high teens % range
ASP in USD: To remain flat
Gross Profit Margin: Will be in the mid-30% range
Capacity Utilization: approximately 70%
2023 CAPEX: US$3.0 billion

Recent Developments / Announcements

Nov. 9, 2022	UMC Drives Low-carbon Supply Chain with GHG Inventory Initiative
Nov. 30, 2022	Cadence and UMC Certified mmWave Reference Flow Delivers First-Pass Silicon Success
Dec. 10, 2022	UMC Again Leads Semiconductor Foundries in the 2022 Dow Jones Sustainability Indices
Dec. 16, 2022	UMC Earns Top Rating in CDP’s Climate Change and Water Security Assessments
Dec. 30, 2022	UMC Achieves AA Certification for Excellence in Intellectual Property Management and Protection

Please visit UMC’s website for further details regarding the above announcements

Conference Call / Webcast Announcement

Monday, January 16, 2023

Time: 5:00 PM (Taipei) / 4:00 AM (New York) / 09:00 AM (London)

Dial-in numbers and Access Codes:
Hong Kong Number: +852-2112-1888
Taiwan Number: 02-2162-6306
Other Areas: +852-2112-1888

Access Code: 9603516#

A live webcast and replay of the 4Q22 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 approximately 850,000 8-inch equivalent wafers per month. The company employs approximately 20,000 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 fourth quarter of 2022; 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 “Fourth Quarter of 2022 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.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheet
As of December 31, 2022
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

	December 31, 2022
	US$	NT$	%
Assets
Current assets
Cash and cash equivalents	5,662	173,819	32.6%
Accounts receivable, net	1,204	36,975	6.9%
Inventories, net	1,012	31,070	5.8%
Other current assets	342	10,507	2.0%
Total current assets	8,220	252,371	47.3%

Non-current assets
Funds and investments	2,113	64,855	12.2%
Property, plant and equipment	5,569	170,982	32.1%
Right-of-use assets	248	7,612	1.4%
Other non-current assets	1,213	37,232	7.0%
Total non-current assets	9,143	280,681	52.7%
Total assets	17,363	533,052	100.0%

Liabilities
Current liabilities
Payables	2,420	74,301	13.9%
Current portion of long-term liabilities	247	7,587	1.4%
Other current liabilities	869	26,677	5.1%
Total current liabilities	3,536	108,565	20.4%

Non-current liabilities
Bonds payable	752	23,083	4.3%
Long-term loans	547	16,794	3.2%
Lease liabilities, noncurrent	169	5,200	1.0%
Other non-current liabilities	1,432	43,959	8.2%
Total non-current liabilities	2,900	89,036	16.7%
Total liabilities	6,436	197,601	37.1%

Equity
Equity attributable to the parent company
Capital	4,073	125,047	23.5%
Additional paid-in capital	404	12,378	2.3%
Retained earnings and other components of equity	6,439	197,682	37.1%
Total equity attributable to the parent company	10,916	335,107	62.9%
Non-controlling interests	11	344	0.0%
Total equity	10,927	335,451	62.9%
Total liabilities and equity	17,363	533,052	100.0%

Note：New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2022 exchange rate of NT $30.70 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, 2022		December 31, 2021		Chg.	December 31, 2022		September 30, 2022		Chg.
	US$	NT$	US$	NT$	%	US$	NT$	US$	NT$	%
Operating revenues	2,210	67,836	1,925	59,100	14.8%	2,210	67,836	2,456	75,392	(10.0%)
Operating costs	(1,261)	(38,712)	(1,172)	(35,997)	7.5%	(1,261)	(38,712)	(1,294)	(39,728)	(2.6%)
Gross profit	949	29,124	753	23,103	26.1%	949	29,124	1,162	35,664	(18.3%)
	42.9%	42.9%	39.1%	39.1%		42.9%	42.9%	47.3%	47.3%
Operating expenses
Sales and marketing expenses	(31)	(953)	(40)	(1,240)	(23.1%)	(31)	(953)	(35)	(1,061)	(10.2%)
General and administrative expenses	(80)	(2,438)	(71)	(2,164)	12.7%	(80)	(2,438)	(79)	(2,428)	0.4%
Research and development expenses	(111)	(3,407)	(111)	(3,414)	(0.2%)	(111)	(3,407)	(108)	(3,304)	3.1%
Expected credit impairment loss	(0)	(0)	(0)	(3)	(88.3%)	(0)	(0)	(0)	(1)	(48.5%)
Subtotal	(222)	(6,798)	(222)	(6,821)	(0.3%)	(222)	(6,798)	(222)	(6,794)	0.1%
Net other operating income and expenses	43	1,311	43	1,334	(1.7%)	43	1,311	42	1,287	1.9%
Operating income	770	23,637	574	17,616	34.2%	770	23,637	982	30,157	(21.6%)
	34.8%	34.8%	29.8%	29.8%		34.8%	34.8%	40.0%	40.0%

Net non-operating income and expenses	29	889	18	558	59.4%	29	889	72	2,189	(59.4%)
Income from continuing operations before income tax	799	24,526	592	18,174	35.0%	799	24,526	1,054	32,346	(24.2%)
	36.2%	36.2%	30.8%	30.8%		36.2%	36.2%	42.9%	42.9%

Income tax expense	(176)	(5,406)	(71)	(2,169)	149.2%	(176)	(5,406)	(163)	(5,004)	8.1%
Net income	623	19,120	521	16,005	19.5%	623	19,120	891	27,342	(30.1%)
	28.2%	28.2%	27.1%	27.1%		28.2%	28.2%	36.3%	36.3%

Other comprehensive income (loss)	14	429	94	2,880	(85.1%)	14	429	141	4,336	(90.1%)

Total comprehensive income (loss)	637	19,549	615	18,885	3.5%	637	19,549	1,032	31,678	(38.3%)

Net income attributable to:
Shareholders of the parent	621	19,068	520	15,949	19.6%	621	19,068	879	26,996	(29.4%)
Non-controlling interests	2	52	1	56	(6.3%)	2	52	12	346	(85.0%)

Comprehensive income (loss) attributable to:
Shareholders of the parent	635	19,497	613	18,830	3.5%	635	19,497	1,021	31,332	(37.8%)
Non-controlling interests	2	52	2	55	(6.4%)	2	52	11	346	(85.0%)

Earnings per share-basic	0.050	1.54	0.042	1.30		0.050	1.54	0.071	2.19
Earnings per ADS ⁽²⁾	0.251	7.70	0.212	6.50		0.251	7.70	0.357	10.95
Weighted average number of shares
outstanding (in millions)		12,349		12,254			12,349		12,306

Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2022 exchange rate of NT $30.70 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, 2022			December 31, 2022
	US$	NT$	%	US$	NT$	%
Operating revenues	2,210	67,836	100.0%	9,078	278,705	100.0%
Operating costs	(1,261)	(38,712)	(57.1%)	(4,981)	(152,941)	(54.9%)
Gross profit	949	29,124	42.9%	4,097	125,764	45.1%


Operating expenses
Sales and marketing expenses	(31)	(953)	(1.4%)	(136)	(4,183)	(1.5%)
General and administrative expenses	(80)	(2,438)	(3.6%)	(316)	(9,672)	(3.4%)
Research and development expenses	(111)	(3,407)	(5.0%)	(422)	(12,954)	(4.7%)
Expected credit impairment loss	(0)	(0)	(0.0%)	(0)	(3)	(0.0%)
Subtotal	(222)	(6,798)	(10.0%)	(874)	(26,812)	(9.6%)
Net other operating income and expenses	43	1,311	1.9%	174	5,340	1.9%
Operating income	770	23,637	34.8%	3,397	104,292	37.4%

Net non-operating income and expenses	29	889	1.4%	59	1,805	0.7%
Income from continuing operations before income tax	799	24,526	36.2%	3,456	106,097	38.1%


Income tax expense	(176)	(5,406)	(8.0%)	(589)	(18,079)	(6.5%)
Net income	623	19,120	28.2%	2,867	88,018	31.6%

Other comprehensive income (loss)	14	429	0.6%	79	2,438	0.9%

Total comprehensive income (loss)	637	19,549	28.8%	2,946	90,456	32.5%

Net income attributable to:
Shareholders of the parent	621	19,068	28.1%	2,840	87,198	31.3%
Non-controlling interests	2	52	0.1%	27	820	0.3%

Comprehensive income (loss) attributable to:
Shareholders of the parent	635	19,497	28.7%	2,920	89,636	32.2%
Non-controlling interests	2	52	0.1%	26	820	0.3%

Earnings per share-basic	0.050	1.54		0.231	7.09
Earnings per ADS ⁽²⁾	0.251	7.70		1.155	35.45

Weighted average number of shares outstanding (in millions)		12,349			12,306

Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2022 exchange rate of NT $30.70 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, 2022
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

	US$	NT$
Cash flows from operating activities :
Net income before tax	3,456	106,097
Depreciation & Amortization	1,439	44,170
Share of loss of associates and joint ventures	60	1,852
Income tax paid	(154)	(4,718)
Changes in working capital & others	(50)	(1,540)
Net cash provided by operating activities	4,751	145,861

Cash flows from investing activities :
Decrease in financial assets measured at amortized cost	928	28,497
Acquisition of property, plant and equipment	(2,610)	(80,128)
Acquisition of intangible assets	(90)	(2,756)
Others	(1)	(40)
Net cash used in investing activities	(1,773)	(54,427)

Cash flows from financing activities :
Decrease in short-term loans	(64)	(1,966)
Redemption of bonds	(433)	(13,305)
Proceeds from long-term loans	76	2,319
Repayments of long-term loans	(688)	(21,136)
Increase in guarantee deposits	488	14,985
Cash distributed from additional paid-in capital	(1,220)	(37,446)
Others	(24)	(706)
Net cash used in financing activities	(1,865)	(57,255)

Effect of exchange rate changes on cash and cash equivalents	229	7,018
Net increase in cash and cash equivalents	1,342	41,197

Cash and cash equivalents at beginning of period	4,320	132,622

Cash and cash equivalents at end of period	5,662	173,819

Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2022 exchange rate of NT $30.70 per U.S. Dollar.

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 Next Page »