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UMC Reports 2008 Second Quarter Results

Muted Third Quarter Due to Global Economic Uncertainty

    TAIPEI, Taiwan, July 30 /Xinhua-PRNewswire-FirstCall/ --

    Second Quarter 2008 Overview (Note 1):

    -- Revenue increased 5.1% sequentially to NT$25.24 billion (US$833
       million)
    -- Gross profit margin of 23%, operating margin of 9.3%
    -- Net income increased to NT$2.4 billion (US$79 million)
    -- Revenue from 90nm technology and below was 36%
    -- EPS was NT$0.19; EPADS was US$0.032

    Note 1: Unless otherwise stated, all financial figures discussed in
            this announcement are prepared in accordance with ROC GAAP,
            which differ in some material respects from generally accepted
            accounting principles in the United States. They are un-audited,
            unconsolidated, and represent comparisons among the three-month
            period ending June 30, 2008, the three-month period ending
            March 31, 2007, and the equivalent three-month period that
            ended June 30, 2007. For all 2Q08 results, New Taiwan Dollar
            (NT$) amounts have been converted into U.S. Dollars at the June
            30, 2008 exchange rate of NT$30.33 per U.S. Dollar.

United Microelectronics Corporation (NYSE: UMC) (TSE: 2303) ("UMC" or "the Company"), a leading global semiconductor foundry, today announced its unconsolidated operating results for the second quarter of 2008.

"As the newly appointed CEO of UMC, I am happy to report that in Q2 2008 UMC saw improvements in revenue, gross margin, and operating margin compared to Q1," said UMC CEO, Dr. Shih-Wei Sun.

"These results were in line with our previously released guidance. Customer demand for advanced 90nm and 65nm technologies remained steady, with combined revenue from these process nodes totaling 36%. Looking forward to Q3, we see that the environment is more challenging than we previously expected. In general, customers have adopted a cautious attitude due to the rising uncertainty in the global economy. We will continue to monitor the situation closely and adjust our operations accordingly."

"Going forward as CEO, my top priority is to ensure that UMC's foundry solutions deliver the greatest benefits to our global customer base. This will enable us to increase our market share among our key foundry customers and maximize profitability. UMC will also continue to focus on operational efficiency and cost control activities through an emphasis on teamwork and execution. At the same time, we will continue to invest in the development of advanced technologies that are critical to our future growth and profitability. UMC is well positioned to weather the headwinds that face the overall economy due to our strengths in R&D and manufacturing, as well as our sound financial structure and our excellent team that has a wealth of experience dealing with the cyclical nature of the semiconductor industry."



    Summary of Operating Results



    Operating Results
                                                QoQ%               YoY%
    (Amount: NT$ million)    2Q08      1Q08   change     2Q07    change

    Revenue                25,238    24,003      5.1   25,097       0.6
    Gross Profit            5,795     3,576     62.1    4,958      16.9
    Operating Expenses     (3,454)   (3,386)     2.0   (3,732)     (7.4)
    Operating Income        2,341       190  1,132.1     1226      90.9
    Non-op. Income
     (Expenses)               120        71     69.0    4,182     (97.1)
    Net Income              2,397       206  1,063.6    4,911     (51.2)
    EPS (NT$ per share)      0.19      0.02       --     0.28        --
        (US$ per ADS)       0.032     0.003       --    0.046        --


Revenue increased 5.1% quarter-over-quarter to NT$25.24 billion, from NT$24 billion in 1Q08. Gross profit was NT$5.8 billion, or 23% of revenue, compared to NT$3.58 billion, or 14.9% of 1Q08 revenue. Operating income increased 1,132% sequentially to NT$2.34 billion, or 9.3% of 2Q08 revenue. Better capacity utilization and activities on cost control were the key reasons for the increase in revenue, gross profit and operating income during the second quarter. Net income in 2Q08 was NT$2.4 billion, an increase of 1,064% compared to NT$206 million in 1Q08.

Earnings per ordinary share (EPS) for the quarter were NT$0.19. Earnings per ADS (EPADS) were US$0.032. This compares with 1Q08 EPS of NT$0.02 and EPADS of US$0.003. One ADS represents five Taiwan-listed ordinary shares. The basic weighted average number of outstanding shares in 2Q08 was 12,494,809,580, compared with 12,494,809,580 shares in 1Q08 and 17,780,114,848 shares in 2Q07. The diluted weighted average number of outstanding shares was 12,507,200,403 in 2Q08, compared with 12,726,354,496 in 1Q08 and 18,413,194,360 shares in 2Q07. The fully diluted share count on June 30, 2008 was 13,856,573 thousand. On June 30, 2008, UMC held 704,299 thousand treasury shares acquired from the 8th, 9th, and 11th share buy-back programs. UMC will retire 348,583 thousand treasury shares acquired from the 8th share buy-back program in 3Q08.

Detailed Financials Section

Depreciation and amortization totaled NT$9.4 billion in 2Q08, compared with NT$9.61 billion in 1Q08. Depreciation within COGS of NT$7.51 billion went down by 7.3% from 1Q08. Other manufacturing costs within COGS decreased to NT$11.93 billion sequentially, which reflected the results of cost reduction activities. Total operating expenses increased by 2% to NT$3.45 billion. Higher General & Administrative expenses reflected consulting fees for goodwill valuation and additional lawyer fees associated with the LSI lawsuit issue. Sales & Marketing expenses decreased to NT$620 million, mainly due to reduced IP amortization and maintenance fees. The total R&D expenses were 8.28% of revenue in 2Q08.



    COGS & Expenses
                                                  QoQ%               YoY%
    (Amount: NT$ million)     2Q08      1Q08    change      2Q07   change

    Revenue                 25,238    24,003       5.1    25,097      0.6
    CoGS                   (19,443)  (20,427)     (4.8)  (20,139)    (3.5)
     Depreciation           (7,510)   (8,098)     (7.3)   (7,899)    (4.9)
     Other Mfg. Costs      (11,933)  (12,329)     (3.2)  (12,240)    (2.5)
    Gross Profit             5,795     3,576      62.1     4,958     16.9
    Gross Margin (%)         23.0%     14.9%        --     19.8%       --
    Total Operating Exp.    (3,454)   (3,386)      2.0    (3,732)    (7.4)
     G&A                      (744)     (636)     17.0      (691)     7.7
     Sales & Marketing        (620)     (716)    (13.4)     (732)   (15.3)
     R&D                    (2,090)   (2,034)      2.8    (2,309)    (9.5)
    Operating Income         2,341       190   1,132.1     1,226     90.9
    Operating Margin (%)      9.3%      0.8%        --      4.9%       --


Net non-operating income during 2Q08 was NT$120 million. Gains on the disposal of investments were NT$524 million, including a gain from the sale of MediaTek shares for NT$414 million. Net investment losses were NT$575 million, which included a NT$731 million loss from valuation of ProMos shares. Net foreign exchange gains were NT$103 million, which include NT$36 from foreign exchange gains and NT$67 million from hedging gains.



    Non-operating Income (Expenses)

    (Amount: NT$ million)                 2Q08      1Q08       2Q07

    Net Non-operating Income (Exp.)        120        71      4,182
     Net Interest Income (Expense)         160       116        349
     Net Investment Income (Loss)         (575)     (278)       760
     Gain on Disposal of Investment        524       652      2,634
     Exchange Gain (Loss)                   36      (718)       (46)
     Others                                (25)      299        485


Net cash outflow was NT$4.22 billion in 2Q08. Cash inflow from operations was NT$8.8 billion in 2Q08. The investing cash outflow primarily reflects the NT$2.49 billion of CAPEX in 2Q08. Free cash flow (Note 2) for 2Q08 was NT$6.31 billion. The NT$10.5 billion of financing cash outflow is mainly for the repayment of unsecured corporate bonds. Over the next 12 months, we expect to repay US$15 million in short-term loans.

    Note 2: Free cash flow = Operating cash flow - Capital expenditures



    Cash Flow Summary

                                For the 3-Month     For the 3-Month
                                   Period Ended        Period Ended
    (Amount: NT$ million)         Jun. 30, 2008       Mar. 31, 2008

    Cash Flow from Operations             8,799               9,455
     Net Income (Loss)                    2,397                 206
     Depreciation & Amortization          9,404               9,605
     Changes in working capital          (3,403)                314
     Others                                 401                (670)
    Cash Flow from Investing             (2,489)             (5,362)
     Capital Expenditures                (2,488)             (5,685)
     Others                                  (1)                323
    Cash Flow from Financing            (10,503)            (11,763)
     Redemption of bonds                (10,500)            (12,217)
     Others                                  (3)                454
    Effect of Exchange Rate                 (24)               (148)
    Net Cash Flow                        (4,217)             (7,818)


Cash and cash equivalents decreased to NT$25.42 billion during 2Q08, which was mainly due to the cash outflow for capacity expansion and repayment of corporate bonds. The increase in notes and accounts receivable primarily reflected the upward trend of the business in 2Q08. The increase in inventory came from the increase of work-in-process wafers and finished goods.



    Current Assets

    (Amount: NT$ billion)              2Q08       1Q08       2Q07

    Cash & Cash Equivalents           25.42      29.63      77.06
    Notes & Accounts Receivable       14.79      12.78      14.15
     Days Sales Outstanding              50         50         49
    Inventory                         12.31      11.09      10.91
     Avg. Inventory Turnover             56         51         48
    Total Current Assets              58.37      60.06     113.73


Total liabilities decreased to NT$36.48 billion in 2Q08. The decrease was primarily due to the NT$10.5 billion bonds repayment but offset by NT$9.38 billion of dividends payable. UMC's Debt to Equity ratio was 18% at the end of 2Q08.



    Liabilities

    (Amount: NT$ billion)             2Q08       1Q08       2Q07

    Total Current Liabilities        25.22      26.92      54.92
     Accounts Payable                 4.62       4.50       4.96
     Short-term Credit / Bonds        0.46      10.96      23.02
     Others                          20.14      11.46      26.94
    Long-term Liabilities             7.54       7.50       7.49
    Total Liabilities                36.48      38.02      66.01
    Debt to Equity                     18%        17%        23%

Analysis of Revenue (Note 3)

The percentage of revenue from the Asia Pacific and Europe regions increased to 35% and 13%, respectively. This was mainly due to the stronger demand for communication chips.

    Note 3: Revenue in this section represents wafer sales



    Revenue Breakdown by Region

    Region                 2Q08     1Q08     4Q07     3Q07     2Q07

    North America           50%      58%      51%      49%      47%
    Asia Pacific            35%      29%      37%      40%      43%
    Europe                  13%      11%      10%       9%       8%
    Japan                    2%       2%       2%       2%       2%


The percentage of revenue from advanced 90nm business increased to 31%, compared to 30% in 1Q08, mainly due to stronger demand for wireless communication chips. The percentage of revenue from 90nm and below was 36% in 2Q08.

    Revenue Breakdown by Geometry

    Geometry               2Q08     1Q08     4Q07     3Q07     2Q07

    65nm                     5%       7%       3%       1%       --
    90nm                    31%      30%      23%      24%      17%
    90nm< x <=0.13um        21%      21%      22%      23%      25%
    0.13um< x <=0.18um      20%      22%      27%      26%      29%
    0.18um< x <=0.35um      18%      14%      18%      20%      22%
    0.5um and above          5%       6%       7%       6%       7%


The percentage of revenue from fabless customers increased to 71% in 2Q08 from 70% in 1Q08.



    Revenue Breakdown by Customer Type

    Customer Type       2Q08    1Q08     4Q07     3Q07     2Q07

    Fabless              71%     70%      76%      73%      75%
    IDM                  29%     30%      24%      27%      25%
    System                0%      0%       0%       0%       0%


Revenue from the computer segment decreased to 17% of total revenue in 2Q08 due to weaker demand for PC chipsets, graphics and DVD-ROM.



    Revenue Breakdown by Application (1)
    Application                 2Q08     1Q08     4Q07     3Q07     2Q07

    Computer                     17%      21%      19%      18%      17%
    Communication                58%      56%      56%      57%      55%
    Consumer                     22%      21%      23%      23%      26%
    Memory                        1%       1%       1%       1%       1%
    Others                        2%       1%       1%       1%       1%

    (1): Computer consists of ICs such as HDD controllers, DVD-ROM/CD-
         ROM drives ICs, LCD drivers, graphic processors, and PDAs.
         Communication consists of xDSL, DSP, WLAN, LAN controllers,
         handset components, caller ID devices, etc. Consumer consists
         of ICs used for DVD players, game consoles, digital cameras,
         smart cards, toys, etc. Memory consists of DRAM, SRAM, Flash,
         EPROM, ROM, and EEPROM.



    Blended Average Selling Price Trend
    The blended average selling price (ASP) decreased by 2% during 2Q08.
    (To view ASP trend, visit
    
www.umc.com/english/investors/2Q08_ASP_trend.asp )

    Shipment and Utilization Rate (Note 4)

875 thousand 8-inch equivalent wafers were shipped in 2Q08, a 8.4% increase from 807 thousand 8-inch equivalents shipped in the previous quarter. Overall utilization rate for the quarter was 85%.



    Wafer Shipments
                           2Q08    1Q08     4Q07      3Q07     2Q07
    Wafer Shipments
    ('000 8-inch eq.)       875     807      921     1,017      804

    Note 4: Utilization Rate = Quarterly Wafer Out / Quarterly Capacity



    Quarterly Capacity Utilization Rate

                           2Q08     1Q08     4Q07     3Q07     2Q07
    Utilization Rate        85%      73%      86%      93%      76%
    Total Capacity
    ('000 8-inch eq.)     1,107    1,100    1,100    1,095    1,070



    Capacity (Note 5)

Total capacity during the second quarter was 1,107 thousand 8-inch equivalent wafers. Compared to 1Q08, the increase of 7 thousand 8-inch equivalent wafers was due to capacity expansion at Fab 12A and some 200mm fabs. Estimated installed capacity in the third quarter is 1,140 thousand 8-inch equivalent wafers. The increase in estimated capacity during the third quarter is due to additional 12-inch capacity expansion for Fab 12i.

    Note 5: 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.



    Annual Capacity in thousands of 8-inch wafer equivalents

    FAB               Geometry (um)    2007    2006    2005    2004

    Fab 6A       6"     3.5 - 0.45      328     328     344     346
    Fab 8AB      8"     0.5 - 0.25      816     816     816     796
    Fab 8C       8"    0.35 - 0.15      400     400     401     386
    Fab 8D       8"    0.18 - 0.09      260     252     274     256
    Fab 8E       8"     0.5 - 0.18      408     406     404     401
    Fab 8F       8"    0.25 - 0.15      372     372     378     349
    Fab 8S (1)   8"    0.25 - 0.15      276     276     278     131
    Fab 12A     12"    0.18 - 0.065     847     754     597     392
    Fab 12i (2) 12"    0.13 - 0.065     601     413     363     101
    Total (3)                         4,308   4,017   3,855   3,158
    YoY Growth Rate                      7%      4%     22%     19%



    Quarterly Capacity in thousands of 8-inch wafer equivalents

    FAB             3Q08E     2Q08     1Q08      4Q07

    Fab 6A             82       82       82        82
    Fab 8AB           204      204      204       204
    Fab 8C            101      101      100       100
    Fab 8D             66       66       65        65
    Fab 8E            102      102      102       102
    Fab 8F             93       93       93        93
    Fab 8S             72       72       69        69
    Fab 12A           218      218      216       216
    Fab 12i           202      169      169       169
    Total (3)       1,140    1,107    1,100     1,100

    (1) Former fab of SiSMC, which was acquired from Silicon Integrated
        Systems in July 2004.
    (2) Former fab of UMCi, a UMC wholly owned subsidiary in December 2004
        that was merged into UMC in April 2005
    (3) One 6-inch wafer is converted into 0.5625(6sq/8sq) 8-inch
        equivalent wafer; one 12-inch wafer is converted into 2.25(12sq/8sq)
        8-inch equivalent wafers.


CAPEX

CAPEX plans for 2008 were maintained at the original guidance range. Capital expenditure for UMC during 2Q08 was US$82 million. Accumulated CAPEX in 1H08 was US$269 million.



    UMC Capital Expenditure by Year -- in US$ billion

    Year        2007    2006      2005    2004    2003    2002
    CAPEX       $0.9    $1.0    $0.7(1)   $1.5    $0.4    $0.8

    2008 CAPEX Plan

               8" fab     12" fab    12" R&D           Total
    UMC           15%         52%        33%     US$500-700 million

    (1) 2005 CAPEX contained UMC 2005 full year CAPEX and UMCi CAPEX during
        1Q05.



    Recent Developments / Announcements

    Jul. 29, 2008   UMC Joins SEMATECH Research Consortium
    Jul. 16, 2008   UMC Announces Restructuring of Executive Team
    Jun. 13, 2008   UMC Shareholders Approve NT$1.2 Dividend for Fiscal
                    Year 2007 at Annual Shareholders Meeting
                    At the meeting, shareholders approved:

                    -- The 2007 Business Report and Financial Statements.
                       The Company's revenue for 2007 was NT$106.77 billion
                       and net income after tax was NT$16.96 billion, with
                       earnings per share of NT$1.09.
                    -- A capitalization of NT$6,775,753,830, which includes
                       NT$2,146,981,340 from un-appropriated earnings for
                       and prior to the year 2007 and NT$4,628,772,490 rom
                       capital reserve.
                    -- Shareholder cash dividend of NT$9,382,646,949 and
                       stock dividend of NT$1,000,815,670. The total issued
                       to shareholders is estimated at NT$1.20 per share,
                       including cash dividend of estimated NT$0.75 per
                       share, stock dividend of estimated NT$0.08 per share,
                       and an estimated NT$0.37 per share from capital
                       reserve in stock.
                    -- A total of NT$1,433 million for employee bonus (cash
                      Bonus of NT$286,541,418 and stock bonus of
                       NT$1,146,165,670), which is 8.45% of net income after
                       tax.
    Jun. 10, 2008   Magma and UMC Announce UPF-Compliant Low-Power
                    Reference Flow
    Jun. 10, 2008   Extreme DA and UMC Collaborate to Provide Sub 65-nm
                    Variation-Aware IC Design Flows
    Jun. 09, 2008   Synopsys and UMC Release 65-Nanometer Low Power Design
                    Flow Enabled by the Unified Power Format
    Jun. 09, 2008   Cadence Collaborates with UMC to Deliver 65nm CPF-Based
                    Low-Power Reference Design Flow
    May 13, 2008    UMC and Mentor Graphics Introduce Foundry Design Kits
                    (FDK) for Mixed-Mode and RF Technologies
    May 02, 2008    UMC Files Form 20-F for 2007 with US Securities and
                    Exchange Commission
    Apr. 30, 2008   UMC 1Q 2008 Financial Result

Please visit UMC's website http://www.umc.com/english/news/index.asp for further details regarding the above announcements.

    Third Quarter of 2008 Outlook & Guidance
    Quarter-over-quarter Guidance:

    -- Wafer Shipments: to be flat from previous quarter
    -- Wafer ASP in US$: to decrease by approximately 0-2% points
    -- Impact from Currency Fluctuation: 0% to -2% on revenue
    -- Capacity Utilization Rates: approximately 80%
    -- Profitability: gross profit margin to be in high teen % points
    -- The consumer segment is expected to be the strongest followed by the
       communication and computer segments
    -- 2008 Capex Budget: US$500-700 million

    Conference Call / Webcast Announcement
    Wednesday, July 30, 2008
    Time:  8:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM (London)

    Dial-in numbers and Access Codes:

    USA Toll Free:              1866 549 1292
    UK Toll Free:               0808 234 6305
    Singapore Toll Free:        800 852 3576
    Hong Kong and Other Areas:  +852 3005 2050

    Access Code:                UMC

A live webcast and replay of the 2Q08 results announcement will be available at http://www.umc.com under the "Investor Relations \ Investor Events" section.

About UMC

UMC (NYSE: UMC) (TSE: 2303) is a leading global semiconductor foundry that manufactures advanced system-on-chip (SoC) designs for applications spanning every major sector of the IC industry. UMC's SoC Solution Foundry strategy is based on the strength of the company's advanced technologies, which include production proven 90nm, 65nm, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i are both in volume production for a variety of customer products. The company employs approximately 13,000 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, and the United States. UMC can be found on the web at http://www.umc.com .

Safe Harbor Statements

Except for statements in respect of historical matters, the statements in this release contain "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. 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, among other things: our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; the risks associated with international global business activities; our dependence upon key personnel; general economic and political conditions, including those related to the semiconductor, communications, consumer electronics and computer industries; possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; reduced end-user purchases relative to expectations and orders; fluctuations in foreign currency exchange rates; and those risks identified in the section entitled "Risk Factors" in UMC's Annual Report on Form 20-F ("20-F") for the year ended December 31, 2007 filed with the U.S. Securities and Exchange Commission on May 2, 2008.

The financial statements included in this release are unaudited and unconsolidated, and prepared and published in accordance with ROC GAAP. Investors are cautioned that there are many differences between ROC GAAP and US GAAP, as described in note 35 to the financial statements on 20-F.

The forward-looking statements in this release reflect the current belief of UMC as of the date of this release and UMC undertakes no obligation to update these forward-looking statements for events or circumstances that occur after such date or to reflect the occurrence of unanticipated events.

                       -- FINANCIAL TABLES TO FOLLOW --



                        UNITED MICROELECTRONICS CORPORATION
                  Unaudited Condensed Unconsolidated Balance Sheet
                                As of  June 30, 2008
      Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

                                                    June 30, 2008
                                             US$        NT$           %
    ASSETS
    Current Assets
     Cash and Cash Equivalents               838       25,418       10.4%
     Financial assets at fair value
      through profit or loss, current        109        3,309        1.4%
     Notes & Accounts Receivable             488       14,790        6.1%
     Inventories                             406       12,309        5.1%
     Other Current Assets                     84        2,546        1.0%
      Total Current Assets                 1,925       58,372       24.0%

    Non-Current Assets
     Funds and Long-term Investments       2,041       61,903       25.5%
     Property, Plant and Equipment         3,707      112,430       46.2%
     Intangible Assets                       123        3,745        1.5%
     Other Assets                            223        6,768        2.8%
      Total Non-Current Assets             6,094      184,846       76.0%
     TOTAL ASSETS                          8,019      243,218      100.0%

    LIABILITIES
     Current Liabilities
     Short-term Loans                         15          456        0.2%
     Financial liabilities at fair
      value through profit or loss,
      current                                  1           33        0.0%
     Payables                                500       15,135        6.2%
     Dividends payable                       309        9,383        3.9%
     Other Current Liabilities                 7          215        0.1%
      Total Current Liabilities              832       25,222       10.4%

    Non-Current Liabilities
     Financial liabilities at fair
      value through profit or loss,
      non-current                              1           43        0.0%
     Bonds Payable                           247        7,496        3.1%
     Other Liabilities                       123        3,719        1.5%
      Total Non-Current Liabilities          371       11,258        4.6%
    TOTAL LIABILITIES                      1,203       36,480       15.0%

    STOCKHOLDERS' EQUITY
    Capital Stock                          4,580      138,921       57.1%
    Additional Paid-in Capital             2,028       61,520       25.3%
    Retained Earnings, Unrealized Gain
     on Financial Assets and
    Translation Adjustment                   703       21,300        8.8%
    Treasury Stock                          (495)     (15,003)      -6.2%
    TOTAL STOCKHOLDERS' EQUITY             6,816      206,738       85.0%
    TOTAL LIABILITIES AND
     STOCKHOLDERS' EQUITY                  8,019      243,218      100.0%


    Note: New Taiwan Dollars have been translated into U.S. Dollars at the
          June 30, 2008 exchange rate of NT$30.33 per U.S. Dollar.
          All figures are in ROC GAAP.



                     UNITED MICROELECTRONICS CORPORATION
             Unaudited Condensed Unconsolidated Income Statement
    Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
                      Except Per Share and Per ADS Data

                                           Year over Year Comparison
                                          Three-Month Period Ended
                                        Jun 30, 2008    Jun 30, 2007    %
                                     US$     NT$     US$     NT$       Chg.
    Net Sales                        833   25,238    827   25,097      0.6%
    Cost of Goods Sold              (642) (19,443)  (664) (20,139)    -3.5%
    Net Gross Profit                 191    5,795    163    4,958     16.9%
                                   23.0%    23.0%  19.8%    19.8%        --
    Operating Expenses
     -- Sales & Marketing             20      620     24      732    -15.3%
     -- General & Administrative      25      744     23      691      7.7%
     -- Research & Development        69    2,090     76    2,309     -9.5%
                                     114    3,454    123    3,732     -7.4%
    Operating Income (Loss)           77    2,341     40    1,226     90.9%
                                    9.3%     9.3%   4.9%     4.9%        --

    Net Non-Operating Income
     (Expenses)                        4      120    138    4,182    -97.1%
    Income (Loss) from continuing
     operations before income tax     81    2,461    178    5,408    -54.5%
                                    9.8%     9.8%  21.6%    21.6%        --

    Income Tax (Expense) Benefit      (2)     (64)   (16)    (497)   -87.1%
    Net Income (Loss)                 79    2,397    162    4,911    -51.2%
                                    9.5%     9.5%  19.6%    19.6%        --

    Earnings per Share             0.006     0.19  0.009     0.28        --
    Earnings per ADS (2)           0.032     0.95  0.046     1.40        --
    Weighted Average
     Number of Shares
     Outstanding (in millions)        --   12,495     --   17,780        --



                     UNITED MICROELECTRONICS CORPORATION
             Unaudited Condensed Unconsolidated Income Statement
    Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
                      Except Per Share and Per ADS Data

                                      Quarter over Quarter Comparison
                                          Three-Month Period Ended
                                      Jun 30, 2008    Mar 31, 2008      %
                                      US$     NT$     US$     NT$      Chg.
    Net Sales                        833   25,238    791   24,003      5.1%
    Cost of Goods Sold              (642) (19,443)  (673) (20,427)    -4.8%
    Net Gross Profit                 191    5,795    118    3,576     62.1%
                                   23.0%    23.0%  14.9%    14.9%        --
    Operating Expenses
     -- Sales & Marketing             20      620     24      716    -13.4%
     -- General & Administrative      25      744     21      636     17.0%
     -- Research & Development        69    2,090     67    2,034      2.8%
                                     114    3,454    112    3,386      2.0%
    Operating Income (Loss)           77    2,341      6      190  1,132.1%
                                     9.3%     9.3%   0.8%     0.8%       --

    Net Non-Operating Income
     (Expenses)                        4      120      3       71     69.0%
    Income (Loss) from continuing
     operations before income tax     81    2,461      9      261    842.9%
                                    9.8%     9.8%   1.1%     1.1%        --

    Income Tax (Expense) Benefit      (2)     (64)    (2)     (55)    16.4%
    Net Income (Loss)                 79    2,397      7      206  1,063.6%
                                    9.5%     9.5%   0.9%     0.9%

    Earnings per Share             0.006     0.19  0.001     0.02        --
    Earnings per ADS (2)           0.032     0.95  0.003     0.10        --
    Weighted Average
     Number of Shares
     Outstanding (in millions)        --   12,495     --   12,495        --


    Note:
    (1) New Taiwan Dollars have been translated into U.S. Dollars at the
        June 30, 2008 exchange rate of NT$30.33 per U.S. Dollar.
        All figures are in ROC GAAP.
    (2) 1 ADS equals 5 common shares.



                       UNITED MICROELECTRONICS CORPORATION
               Unaudited Condensed Unconsolidated Income Statement
      Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
                        Except Per Share and Per ADS Data


                           For the Three-Month Period     For the year
                                    Ended                    Ended
                                  Jun 30, 2008            Jun 30, 2008
                              US$     NT$     %        US$      NT$    %
    Net Sales                 833   25,238  100.0%   1,624   49,241  100.0%
    Cost of Goods Sold       (642) (19,443) -77.0%  (1,315) (39,870) -81.0%
    Net Gross Profit          191    5,795   23.0%     309    9,371   19.0%

    Operating Expenses
     -- Sales & Marketing      20      620    2.5%      44    1,336    2.7%
     -- General &
         Administrative        25      744    2.9%      46    1,380    2.8%
     -- Research &
         Development           69    2,090    8.3%     136    4,124    8.4%
                              114    3,454   13.7%     226    6,840   13.9%
    Operating Income (Loss)    77    2,341    9.3%      83    2,531    5.1%

    Net Non-Operating Income
     (Expenses)                 4      120    0.5%       7      191    0.4%
    Income (Loss) from
     continuing operations
     before income tax         81    2,461    9.8%      90    2,722    5.5%

    Income Tax (Expense)
     Benefit                   (2)     (64)  -0.3%      (4)    (119)  -0.2%
    Net Income (Loss)          79    2,397    9.5%      86    2,603    5.3%

    Earnings per Share      0.006     0.19      --   0.007     0.21      --
    Earnings per ADS (2)    0.032     0.95      --   0.035     1.05      --

    Weighted Average
     Number of Shares
     Outstanding (in millions) --   12,495      --      --   12,495      --


    Note:
    (1) New Taiwan Dollars have been translated into U.S. Dollars at the
        June 30, 2008 exchange rate of NT$30.33 per U.S. Dollar.
        All figures are in ROC GAAP.
    (2) 1 ADS equals 5 common shares.



                       UNITED MICROELECTRONICS CORPORATION
           Unaudited Condensed Unconsolidated Statement of Cash Flows
                     For The Six Months Ended Jun. 30, 2008
      Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

                                                   USD               NTD
    Cash flows from operating activities:
     Net Income                                     86             2,603
     Depreciation & Amortization                   627            19,009
     Gain on recovery in market value
      and obsolescence of inventories                3               106
     Cash dividends received under the
      equity method                                  4               135
     Investment loss accounted for
      under the equity method                        3                87
     Gain on valuation of financial
      assets and liabilities                        26               775
     Impairment loss                                 3                86
     Gain on disposal of investments               (39)           (1,176)
     Gain on disposal of property,
      plant and equipment                           (1)              (17)
     Exchange gain on financial assets
      and liabilities                               (0)              (14)
     Exchange gain on long-term
      liabilities                                   (6)             (179)
     Amortization of bond discounts                  0                 7
     Amortization of deferred income                (3)              (79)
     Change in assets, liabilities and
      others                                      (102)           (3,089)
     Net cash provided from operating
      activities                                   601            18,254

    Cash flows from investing activities:
     Proceeds from disposal of
      available-for-sales financial
      assets                                        28               851
     Acquisition of financial assets
      measured at cost                              (1)              (37)
     Acquisition of long-term
      investments accounted for the
      equity method                                 (1)              (27)
     Acquisition of property, plant
      and equipment                               (270)           (8,173)
     Proceeds from disposal of
      property, plant and equipment                  1                28
     Acquisition of deferred charges               (16)             (495)
     Decrease in other assets -- others              0                 2
     Net cash used in investing activities        (259)           (7,851)

    Cash flows from financing activities:
     Proceeds from short-term Loans                 15               456
     Redemption of bonds                          (749)          (22,717)
     Decrease in deposits-in                        (0)               (5)
     Net cash used in financing activities        (734)          (22,266)

    Effect of exchange rate changes on
     cash and cash equivalents                      (5)             (172)
    Decrease in cash and cash equivalents         (397)          (12,035)

    Cash and cash equivalents at
     beginning of period                         1,235            37,453

    Cash and cash equivalents at end of
     period                                        838            25,418


    Note: New Taiwan Dollars have been translated into U.S. Dollars at the
          June 30, 2008 exchange rate of NT$30.33 per U.S. Dollar.

          All figures are in ROC GAAP.



    Contacts:

     Bowen Huang or I Cheng Lu
     UMC, Investor Relations
     Tel:   +886-2-2700-6999 ext. 6957
     Email: bowen_huang@umc.com or i_cheng_lu@umc.com

Web site: http://www.umc.com/