TAIPEI, Taiwan--(BUSINESS WIRE)--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 2020.

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 % change		4Q19		YoY % change
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 % change		4Q19		YoY % change
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 Impairment Gain (Loss)	0		429		(99.9	)	(113	)	-
Net Other Operating Income & Expenses	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 Period Ended Dec. 31, 2020		For the 3-Month Period Ended Sep. 30, 2020
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 (8” K equivalents)	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 (8” K equivalents)	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 thousands of wafers											Quarterly Capacity in thousands of wafers
FAB		Geometry (um)	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 % change
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 and Expenses	6,254		5,182		20.7
Operating Income	22,007		4,690		369.3
Net Non-Operating Income and Expenses	5,919		1,046		465.9
Income Tax (Expense) Benefit	(746	)	393		-
Net Income Attributable to Stockholders of the Parent	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 1^st Secure Embedded Solution

Oct 29, 2020	UMC 3Q20 Financial Results

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.