Company posts full-year 2023 EPS of NT$4.93; 22/28nm contribution in Q4 reaches 36% 12nm collaboration will propel long-term growth beyond 22/28nm

Fourth Quarter 2023 Overview¹:

Revenue: NT$54.96 billion (US$1.79 billion)
Gross margin: 32.4%; Operating margin: 22.6%
Revenue from 22/28nm: 36%
Capacity utilization rate: 66%
Net income attributable to shareholders of the parent: NT$13.20 billion (US$430 million)
Earnings per share: NT$1.06; earnings per ADS: US$0.173

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 2023.

Fourth quarter consolidated revenue was NT$54.96 billion, decreasing 3.7% QoQ from NT$57.07 billion in 3Q23. Compared to a year ago, 4Q23 revenue declined 19.0% YoY from NT$67.84 billion in 4Q22. Consolidated gross margin for 4Q23 was 32.4%. Net income attributable to the shareholders of the parent was NT$13.20 billion, with earnings per ordinary share of NT$1.06.

Jason Wang, co-president of UMC, said, "In the fourth quarter, challenging macroeconomic conditions continued to prolong the inventory correction in the semiconductor industry as our wafer shipments decreased 2.5% QoQ while overall fab utilization rate slightly fell to 66%. As our Tainan 12A P6 facility continues to ramp, our 22/28nm represented 36% of our Q4 wafer revenue, reflecting record high in revenue as well as percentage of wafer sales."

"Overall, 2023 was a year where UMC demonstrated its resilience in face of challenging external environment, as optimization in product mix continued to lift 2023 blended ASP by mid-single digit YoY. In addition, we were successful in safeguarding the company's structural profitability with a gross margin of 34.9% in 2023 even as utilization rate significantly declined YoY. Our financial performance also showed strong resilience, which can be attributed to diversified customer base and higher contribution from stronger business stickiness of our specialty technologies offering."

Co-president Wang commented, "Looking into the first quarter of 2024, we anticipate overall wafer demand will increase mildly, however, customers maintain a cautious approach in their inventory management. Moving forward, UMC will continue to navigate headwinds amid an increasingly competitive landscape and swelling geopolitical tensions via diversified manufacturing base and differentiation in 12-inch specialty technologies. Our 12nm FinFET collaboration is a step forward in advancing our strategy of pursuing cost-efficient capacity expansion and technology node advancement in continuing our commitment to customers. This effort will enable our customers to smoothly migrate to this critical new node, and also benefit from the resiliency of an added Western footprint. We anticipate 12nm FinFET collaboration will broaden our addressable market and significantly accelerate our development roadmap."

Co-president Wang added, "Over the years, UMC has invested in a number of circular economy initiatives. In 2023, we broke ground for the UMC Circular Economy & Recycling Innovation Center, which will serve to consolidate our efforts to maximize resource recovery and minimize waste. Once operational in 2025, the facility is expected to reduce waste from UMC's Taiwan fabs by one-third. In addition, UMC continues to be recognized for its unwavering contributions to ESG by global institutions, receiving awards in consecutive years from DJSI, FTSE4Good and ISS. UMC also achieved a remarkable AA rating in the MSCI ESG Ratings. And for the first time, UMC was named as one of the "Best Companies to Work for in Asia" by HR Asia, an authoritative publication for HR professionals. UMC is committed to tackle growing sustainability issues with innovative and long-term solutions that can only be achieved through the hard work and collaboration of its stakeholders and employees."

Summary of Operating Results

Operating Results
(Amount: NT$ million)	4Q23		3Q23		QoQ % change		4Q22		YoY % change
Operating Revenues	54,958		57,069		(3.7	)	67,836		(19.0	)
Gross Profit	17,806		20,461		(13.0	)	29,124		(38.9	)
Operating Expenses	(6,635	)	(5,722	)	16.0		(6,798	)	(2.4	)
Net Other Operating Income and Expenses	1,252		573		118.7		1,311		(4.5	)
Operating Income	12,423		15,312		(18.9	)	23,637		(47.4	)
Net Non-Operating Income and Expenses	2,227		3,336		(33.3	)	889		150.4
Net Income Attributable to Shareholders of the Parent	13,195		15,971		(17.4	)	19,068		(30.8	)
EPS (NT$ per share)	1.06		1.29				1.54
(US$ per ADS)	0.173		0.210				0.251

Fourth quarter operating revenues declined 3.7% sequentially to NT$54.96 billion. Revenue contribution from 40nm and below technologies represented 50% of wafer revenue, propelled by the revenue growth from 22/28nm in 4Q23. Gross profit decreased 13.0% QoQ to NT$17.81 billion, or 32.4% of revenue. Operating expenses increased 16.0% to NT$6.64 billion. Net other operating income increased to NT$1.25 billion. Net non-operating income totaled NT$2.23 billion. Net income attributable to shareholders of the parent amounted to NT$13.20 billion.

Earnings per ordinary share for the quarter was NT$1.06. Earnings per ADS was US$0.173. The basic weighted average number of shares outstanding in 4Q23 was 12,414,087,724, compared with 12,371,129,866 shares in 3Q23 and 12,348,880,384 shares in 4Q22. The diluted weighted average number of shares outstanding was 12,589,138,701 in 4Q23, compared with 12,566,773,628 shares in 3Q23 and 12,684,106,050 shares in 4Q22. The fully diluted shares counted on December 31, 2023 were approximately 12,589,139,000.

Detailed Financials Section

Operating revenues decreased to NT$54.96 billion. COGS grew 1.5% to NT$37.15 billion, which included 6.1% sequential increase in depreciation. Gross profit fell 13.0% QoQ to NT$17.81 billion. Operating expenses increased to NT$6.64 billion, as R&D grew 21.2% sequentially to NT$3.95 billion or 7.2% of revenue, while Sales & Marketing increased 12.0% to NT$0.82 billion and G&A was up 11.6% QoQ to NT$1.93 billion. Net other operating income was NT$1.25 billion. In 4Q23, operating income declined 18.9% QoQ to NT$12.42 billion.

COGS & Expenses
(Amount: NT$ million)	4Q23		3Q23		QoQ % change		4Q22		YoY % change
Operating Revenues	54,958		57,069		(3.7	)	67,836		(19.0	)
COGS	(37,152	)	(36,608	)	1.5		(38,712	)	(4.0	)
Depreciation	(9,006	)	(8,485	)	6.1		(8,898	)	1.2
Other Mfg. Costs	(28,146	)	(28,123	)	0.1		(29,814	)	(5.6	)
Gross Profit	17,806		20,461		(13.0	)	29,124		(38.9	)
Gross Margin (%)	32.4	%	35.9	%			42.9	%
Operating Expenses	(6,635	)	(5,722	)	16.0		(6,798	)	(2.4	)
Sales & Marketing	(823	)	(735	)	12.0		(953	)	(13.6	)
G&A	(1,930	)	(1,731	)	11.6		(2,438	)	(20.8	)
R&D	(3,945	)	(3,255	)	21.2		(3,407	)	15.8
Expected Credit Impairment gain (loss)	63		(1	)	-		(0	)	-
Net Other Operating Income & Expenses	1,252		573		118.7		1,311		(4.5	)
Operating Income	12,423		15,312		(18.9	)	23,637		(47.4	)

Net non-operating income in 4Q23 was NT$2.23 billion, primarily reflecting the NT$1.75 billion in net investment gain and the NT$0.88 billion in net interest income partially offset by the NT$0.41 billion in exchange loss.

Non-Operating Income and Expenses
(Amount: NT$ million)	4Q23		3Q23	4Q22
Non-Operating Income and Expenses	2,227		3,336	889
Net Interest Income and Expenses	880		617	584
Net Investment Gain and Loss	1,750		1,885	1,382
Exchange Gain and Loss	(405	)	324	(1,057	)
Other Gain and Loss	2		510	(20	)

In 4Q23, cash inflow from operating activities was NT$26.22 billion. Cash outflow from investing activities totaled NT$26.81 billion, which included NT$20.81 billion in capital expenditure, resulting in free cash flow of NT$5.41 billion. Cash outflow from financing was NT$3.89 billion, primarily from NT$4.44 billion in bank loans. Net cash outflow in 4Q23 amounted to NT$8.09 billion. Over the next 12 months, the company expects to repay NT$2.23 billion in bank loans.

Cash Flow Summary
(Amount: NT$ million)	For the 3-Month Period Ended Dec. 31, 2023	For the 3-Month Period Ended Sep. 30, 2023
Cash Flow from Operating Activities	26,217	19,059
Net income before tax	14,650	18,648
Depreciation & Amortization	10,721	9,928
Share of profit of associates and joint ventures	(1,918)	(1,022)
Income tax paid	(15)	(1,216)
Changes in working capital & others	2,779	(7,279)
Cash Flow from Investing Activities	(26,813)	(17,720)
Increase in financial assets measured at amortized cost	(6,134)	(141)
Acquisition of PP&E	(20,334)	(17,245)
Acquisition of intangible assets	(774)	(560)
Others	429	226
Cash Flow from Financing Activities	(3,892)	(27,602)
Bank loans	(4,435)	21,369
Bonds issued	-	10,000
Increase in deposits-in	720	7,425
Decrease in other financial liabilities	-	(21,209)
Cash dividends	-	(45,018)
Others	(177)	(169)
Effect of Exchange Rate	(3,600)	3,808
Net Cash Flow	(8,088)	(22,455)
Beginning balance	140,642	163,097
Ending balance	132,554	140,642

Cash and cash equivalents decreased to NT$132.55 billion. Days of inventory remained unchanged at 89 days.

Current Assets
(Amount: NT$ billion)	4Q23	3Q23	4Q22
Cash and Cash Equivalents	132.55	140.64	173.82
Notes & Accounts Receivable	29.59	31.11	36.98
Days Sales Outstanding	50	49	55
Inventories, net	35.71	36.56	31.07
Days of Inventory	89	89	72
Total Current Assets	216.80	219.28	252.37

Current liabilities slightly increased to NT$99.02 billion. Long-term credit/bonds decreased to NT$45.24 billion. Total liabilities increased to NT$199.61 billion, leading to a debt to equity ratio of 56%.

Liabilities
(Amount: NT$ billion)	4Q23	3Q23	4Q22
Total Current Liabilities	99.02	92.07	108.57
Accounts Payable	7.53	8.37	8.98
Short-Term Credit / Bonds	29.54	30.07	7.59
Payables on Equipment	19.20	15.95	18.63
Other	42.75	37.68	73.37
Long-Term Credit / Bonds	45.24	49.38	39.88
Long-Term Investment Liabilities	-	-	4.22
Total Liabilities	199.61	197.26	197.60
Debt to Equity	56%	56%	59%

Analysis of Revenue²

Revenue from Asia-Pacific increased to 62% while business from North America fell to 23% of sales. Business from Europe was 11% while contribution from Japan increased to 4%.

Revenue Breakdown by Region
Region	4Q23	3Q23	2Q23	1Q23	4Q22
North America	23%	27%	27%	31%	30%
Asia Pacific	62%	58%	56%	50%	54%
Europe	11%	12%	12%	11%	9%
Japan	4%	3%	5%	8%	7%

Revenue contribution from 22/28nm grew to 36% of the wafer revenue, while 40nm contribution was 14% of sales.

Revenue Breakdown by Geometry
Geometry	4Q23	3Q23	2Q23	1Q23	4Q22
14nm and below	0%	0%	0%	0%	0%
14nm<x<=28nm	36%	32%	29%	26%	28%
28nm<x<=40nm	14%	13%	12%	15%	17%
40nm<x<=65nm	16%	19%	23%	19%	17%
65nm<x<=90nm	9%	8%	10%	10%	9%
90nm<x<=0.13um	9%	12%	10%	12%	12%
0.13um<x<=0.18um	9%	9%	9%	10%	10%
0.18um<x<=0.35um	5%	5%	5%	6%	5%
0.5um and above	2%	2%	2%	2%	2%

Revenue from fabless customers accounted for 78% of revenue.

Revenue Breakdown by Customer Type
Customer Type	4Q23	3Q23	2Q23	1Q23	4Q22
Fabless	78%	79%	79%	77%	81%
IDM	22%	21%	21%	23%	19%

Revenue from the communication segment accounted for 47%, while business from computer applications remained at 13%. Business from consumer applications was 23% as other segments declined to 17% of revenue.

Revenue Breakdown by Application ⁽¹⁾
Application	4Q23	3Q23	2Q23	1Q23	4Q22
Computer	13%	13%	9%	9%	12%
Communication	47%	46%	44%	44%	45%
Consumer	23%	23%	26%	24%	25%
Others	17%	18%	21%	23%	18%

(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) remained flat in 4Q23.

(To view blended ASP trend, please click here for 4Q23 ASP)

Shipment and Utilization Rate³

Wafer shipments decreased 2.5% QoQ to 775K in the fourth quarter, while quarterly capacity was 1,204K. Overall utilization rate in 4Q23 declined to 66%.

Wafer Shipments
	4Q23	3Q23	2Q23	1Q23	4Q22
Wafer Shipments (12" K equivalents)	775	795	814	811	984

Quarterly Capacity Utilization Rate
	4Q23	3Q23	2Q23	1Q23	4Q22
Utilization Rate	66%	67%	71%	70%	90%
Total Capacity (12" K equivalents)	1,204	1,182	1,167	1,121	1,130

Capacity⁴

Total capacity in the fourth quarter increased to 1,204K 12-inch equivalent wafers. Capacity will grow in the first quarter of 2024 to 1,212K 12-inch equivalent wafers, reflecting the continuous capacity expansion at 12A P6 facility.

Annual Capacity in thousands of wafers							Quarterly Capacity in thousands of wafers
FAB		Geometry (um)	2023	2022	2021	2020	FAB		1Q24E	4Q23	3Q23	2Q23
WTK	6"	5 – 0.15	328	335	329	371	WTK	6"	82	83	83	82
8A	8"	3 – 0.11	811	765	755	802	8A	8"	206	207	207	207
8C	8"	0.35 – 0.11	473	459	459	452	8C	8"	119	119	120	120
8D	8"	0.18 – 0.09	440	410	380	371	8D	8"	118	118	111	109
8E	8"	0.6 – 0.14	490	469	457	449	8E	8"	130	131	122	122
8F	8"	0.18 – 0.11	570	550	514	485	8F	8"	144	145	145	145
8S	8"	0.18 – 0.11	447	443	408	373	8S	8"	113	114	112	112
8N	8"	0.5 – 0.11	996	952	917	917	8N	8"	252	254	250	248
12A	12"	0.13 – 0.014	1,305	1,170	1,070	1,044	12A	12"	358	346	333	321
12i	12"	0.13 – 0.040	655	655	641	628	12i	12"	164	164	164	164
12X	12"	0.080 – 0.022	317	314	284	217	12X	12"	79	80	80	80
12M	12"	0.13 – 0.040	438	436	395	391	12M	12"	110	110	110	110
Total⁽¹⁾			4,674	4,458	4,201	4,083	Total		1,212	1,204	1,182	1,167
YoY Growth Rate			5%	6%	3%	13%

⁽¹⁾One 6-inch wafer is converted into 0.25 (6²/12²) 12-inch equivalent wafer; one 8-inch wafer is converted into 0.44 (8²/12²) 12-inch equivalent wafers. Total capacity figures are expressed in 12-inch equivalent wafers.

CAPEX

CAPEX spending in 4Q23 totaled US$657 million as 2023 CAPEX amounted to US$3.0 billion. 2024 cash-based CAPEX budget will be US$3.3 billion.

Capital Expenditure by Year - in US$ billion
Year	2023	2022	2021	2020	2019
CAPEX	$ 3.0	$ 2.7	$ 1.8	$ 1.0	$ 0.6

2024 CAPEX Plan
8"	12"	Total
5%	95%	US$3.3 billion

Brief Summary of Full Year 2023 Consolidated Results

Consolidated revenue in NTD declined 20.2% YoY to NT$222.53 billion, from NT$278.71 billion in 2022.
Gross profit decreased 38.2%, compared to a year ago, representing 34.9% of 2023 revenue.
Operating income decreased 44.5% year on year, accounting for 26.0% of 2023 revenue.
Net income attributable to shareholders of the parent fell 30.1% to NT$60.99 billion in 2023.
EPS was NT$4.93, or EPADS of US$0.803 for 2023.
22/28nm revenue contribution accounted for 31% in 2023.

Operating Results
(Amount: NT$ million)	2023		2022		YoY % change
Operating Revenues	222,533		278,705		(20.2	)
Gross Profit	77,744		125,764		(38.2	)
Operating Expenses	(23,855	)	(26,812	)	(11.0	)
Net Other Operating Income and Expenses	4,002		5,340		(25.0	)
Operating Income	57,891		104,292		(44.5	)
Net Non-Operating Income and Expenses	13,021		1,805		621.4
Income Tax Expense	(9,472	)	(18,079	)	(47.6	)
Net Income Attributable to Shareholders of the Parent	60,990		87,198		(30.1	)
EPS (NT$ per share)	4.93		7.09
(US$ per ADS)	0.803		1.154

Annual Sales Breakdown in Revenue for Foundry Segment

Region	2023	2022
North America	27%	24%
Asia Pacific	57%	61%
Europe	11%	9%
Japan	5%	6%

Technology	2023	2022
14nm and below	0%	0%
14nm<x<=28nm	31%	24%
28nm<x<=40nm	14%	18%
40nm<x<=65nm	19%	18%
65nm<x<=90nm	10%	8%
90nm<x<=0.13um	10%	12%
0.13um<x<=0.18um	9%	11%
0.18um<x<=0.35um	5%	7%
0.5um and above	2%	2%

Customer Type	2023	2022
Fabless	78%	84%
IDM	22%	16%

Application	2023	2022
Computer	11%	15%
Communication	45%	45%
Consumer	24%	26%
Others	20%	14%

First Quarter 2024 Outlook & Guidance

Quarter-over-Quarter Guidance:

Wafer Shipments: Will increase by approximately 2-3%
ASP in USD: Will decrease by 5%
Gross Profit Margin: Will be approximately 30%
Capacity Utilization: low-60% range
2024 CAPEX: US$3.3 billion

Recent Developments / Announcements

Oct. 31, 2023		UMC Launches W2W 3D IC Project with Partners, Targeting Growth in Edge AI
Dec. 11, 2023		UMC recognized for ESG strength with DJSI World & Emerging Markets Index and MSCI-ESG AA Rating
Jan. 2, 2024		UMC Achieves AAA Certification for Excellence in Intellectual Property Management and Protection
Jan. 25, 2024		Intel and UMC Announce New Foundry Collaboration

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

Conference Call / Webcast Announcement

Wednesday, January 31, 2024

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

Dial-in numbers and Access Codes:
Taiwan Number:				02 3396 1191
Taiwan Toll Free:				0080 185 4007
US Toll Free:				+1 866 212 5567
Other Areas:				+886 2 3396 1191

Access Code:				1029531#

A live webcast and replay of the 4Q23 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 company. The company provides high-quality IC fabrication services, focusing on logic and various specialty technologies to serve all major sectors of the electronics industry. UMC's comprehensive IC processing technologies and manufacturing solutions include Logic/Mixed-Signal, embedded High-Voltage, embedded Non-Volatile-Memory, RFSOI, BCD, etc. Most of UMC's 12-in and 8-in fabs with its core R&D are in Taiwan, with additional ones throughout Asia. UMC has a total of 12 fabs in production with a combined capacity of more than 400,000 wafers per month (12-in equivalent), and all of them are certified with IATF 16949 automotive quality standards. UMC is headquartered in Hsinchu, Taiwan, plus local offices in the United States, Europe, China, Japan, Korea, and Singapore, with a worldwide total of 20,000 employees. 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 2023; 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 2024 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, 2023
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

	December 31, 2023
	US$	NT$	%
Assets
Current assets
Cash and cash equivalents	4,316	132,554	23.7%
Accounts receivable, net	963	29,586	5.3%
Inventories, net	1,163	35,713	6.4%
Other current assets	618	18,944	3.4%
Total current assets	7,060	216,797	38.8%

Non-current assets
Funds and investments	2,418	74,255	13.3%
Property, plant and equipment	7,786	239,123	42.8%
Right-of-use assets	228	7,000	1.3%
Other non-current assets	717	22,012	3.8%
Total non-current assets	11,149	342,390	61.2%
Total assets	18,209	559,187	100.0%

Liabilities
Current liabilities
Short-term loans	441	13,530	2.4%
Payables	1,923	59,051	10.6%
Current portion of long-term liabilities	521	16,007	2.9%
Other current liabilities	339	10,427	1.8%
Total current liabilities	3,224	99,015	17.7%

Non-current liabilities
Bonds payable	800	24,580	4.4%
Long-term loans	673	20,656	3.7%
Lease liabilities, noncurrent	159	4,879	0.9%
Other non-current liabilities	1,644	50,478	9.0%
Total non-current liabilities	3,276	100,593	18.0%
Total liabilities	6,500	199,608	35.7%

Equity
Equity attributable to the parent company
Capital	4,080	125,298	22.4%
Additional paid-in capital	467	14,325	2.5%
Retained earnings and other components of equity	7,151	219,615	39.3%
Total equity attributable to the parent company	11,698	359,238	64.2%
Non-controlling interests	11	341	0.1%
Total equity	11,709	359,579	64.3%
Total liabilities and equity	18,209	559,187	100.0%

Note：New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2023 exchange rate of NT $30.71 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, 2023				December 31, 2022				Chg.		December 31, 2023				September 30, 2023				Chg.
	US$		NT$		US$		NT$		%		US$		NT$		US$		NT$		%
Operating revenues	1,790		54,958		2,209		67,836		(19.0	%)	1,790		54,958		1,858		57,069		(3.7	%)
Operating costs	(1,210	)	(37,152	)	(1,261	)	(38,712	)	(4.0	%)	(1,210	)	(37,152	)	(1,192	)	(36,608	)	1.5	%
Gross profit	580		17,806		948		29,124		(38.9	%)	580		17,806		666		20,461		(13.0	%)
	32.4	%	32.4	%	42.9	%	42.9	%			32.4	%	32.4	%	35.9	%	35.9	%
Operating expenses
- Sales and marketing expenses	(27	)	(823	)	(31	)	(953	)	(13.6	%)	(27	)	(823	)	(24	)	(735	)	12.0	%
- General and administrative expenses	(63	)	(1,930	)	(79	)	(2,438	)	(20.8	%)	(63	)	(1,930	)	(56	)	(1,731	)	11.6	%
- Research and development expenses	(128	)	(3,945	)	(111	)	(3,407	)	15.8	%	(128	)	(3,945	)	(106	)	(3,255	)	21.2	%
- Expected credit impairment gain (loss)	2		63		(0	)	(0	)	-		2		63		(0	)	(1	)	-
Subtotal	(216	)	(6,635	)	(221	)	(6,798	)	(2.4	%)	(216	)	(6,635	)	(186	)	(5,722	)	16.0	%
Net other operating income and expenses	41		1,252		43		1,311		(4.5	%)	41		1,252		19		573		118.7	%
Operating income	405		12,423		770		23,637		(47.4	%)	405		12,423		499		15,312		(18.9	%)
	22.6	%	22.6	%	34.8	%	34.8	%			22.6	%	22.6	%	26.8	%	26.8	%

Net non-operating income and expenses	72		2,227		29		889		150.4	%	72		2,227		108		3,336		(33.3	%)
Income from continuing operations before income tax	477		14,650		799		24,526		(40.3	%)	477		14,650		607		18,648		(21.4	%)
	26.7	%	26.7	%	36.2	%	36.2	%			26.7	%	26.7	%	32.7	%	32.7	%

Income tax expense	(47	)	(1,457	)	(176	)	(5,406	)	(73.0	%)	(47	)	(1,457	)	(87	)	(2,682	)	(45.7	%)
Net income	430		13,193		623		19,120		(31.0	%)	430		13,193		520		15,966		(17.4	%)
	24.0	%	24.0	%	28.2	%	28.2	%			24.0	%	24.0	%	28.0	%	28.0	%

Other comprehensive income (loss)	(124	)	(3,808	)	14		429		-		(124	)	(3,808	)	232		7,138		-

Total comprehensive income (loss)	306		9,385		637		19,549		(52.0	%)	306		9,385		752		23,104		(59.4	%)

Net income attributable to:
Shareholders of the parent	430		13,195		621		19,068		(30.8	%)	430		13,195		520		15,971		(17.4	%)
Non-controlling interests	(0	)	(2	)	2		52		-		(0	)	(2	)	(0	)	(5	)	(61.1	%)

Comprehensive income (loss) attributable to:
Shareholders of the parent	306		9,387		635		19,497		(51.9	%)	306		9,387		752		23,109		(59.4	%)
Non-controlling interests	(0	)	(2	)	2		52		-		(0	)	(2	)	(0	)	(5	)	(59.9	%)

Earnings per share-basic	0.035		1.06		0.050		1.54				0.035		1.06		0.042		1.29
Earnings per ADS ⁽²⁾	0.173		5.30		0.251		7.70				0.173		5.30		0.210		6.45
Weighted average number of shares outstanding (in millions)			12,414				12,349						12,414				12,371


Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2023 exchange rate of NT $30.71 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, 2023						December 31, 2023
	US$		NT$		%		US$		NT$		%
Operating revenues	1,790		54,958		100.0	%	7,246		222,533		100.0	%
Operating costs	(1,210	)	(37,152	)	(67.6	%)	(4,714	)	(144,789	)	(65.1	%)
Gross profit	580		17,806		32.4	%	2,532		77,744		34.9	%

Operating expenses
- Sales and marketing expenses	(27	)	(823	)	(1.5	%)	(105	)	(3,225	)	(1.5	%)
- General and administrative expenses	(63	)	(1,930	)	(3.5	%)	(243	)	(7,477	)	(3.3	%)
- Research and development expenses	(128	)	(3,945	)	(7.2	%)	(433	)	(13,284	)	(6.0	%)
- Expected credit impairment gain	2		63		0.1	%	4		131		0.1	%
Subtotal	(216	)	(6,635	)	(12.1	%)	(777	)	(23,855	)	(10.7	%)
Net other operating income and expenses	41		1,252		2.3	%	130		4,002		1.8	%
Operating income	405		12,423		22.6	%	1,885		57,891		26.0	%

Net non-operating income and expenses	72		2,227		4.1	%	424		13,021		5.9	%
Income from continuing operations before income tax	477		14,650		26.7	%	2,309		70,912		31.9	%

Income tax expense	(47	)	(1,457	)	(2.7	%)	(308	)	(9,472	)	(4.3	%)
Net income	430		13,193		24.0	%	2,001		61,440		27.6	%

Other comprehensive income (loss)	(124	)	(3,808	)	(6.9	%)	209		6,418		2.9	%

Total comprehensive income (loss)	306		9,385		17.1	%	2,210		67,858		30.5	%

Net income attributable to:
Shareholders of the parent	430		13,195		24.0	%	1,986		60,990		27.4	%
Non-controlling interests	(0	)	(2	)	(0.0	%)	15		450		0.2	%

Comprehensive income (loss) attributable to:
Shareholders of the parent	306		9,387		17.1	%	2,195		67,408		30.3	%
Non-controlling interests	(0	)	(2	)	(0.0	%)	15		450		0.2	%

Earnings per share-basic	0.035		1.06				0.161		4.93
Earnings per ADS ⁽²⁾	0.173		5.30				0.803		24.65

Weighted average number of shares outstanding (in millions)			12,414						12,371

Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2023 exchange rate of NT $30.71 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, 2023
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

	US$		NT$
Cash flows from operating activities :
Net income before tax	2,309		70,912
Depreciation & Amortization	1,318		40,484
Share of profit of associates and joint ventures	(225	)	(6,913	)
Income tax paid	(521	)	(16,012	)
Changes in working capital & others	(81	)	(2,471	)
Net cash provided by operating activities	2,800		86,000

Cash flows from investing activities :
Increase in financial assets measured at amortized cost	(183	)	(5,617	)
Acquisition of property, plant and equipment	(2,979	)	(91,474	)
Acquisition of intangible assets	(83	)	(2,547	)
Others	61		1,851
Net cash used in investing activities	(3,184	)	(97,787	)

Cash flows from financing activities :
Increase in short-term loans	441		13,530
Proceeds from bonds issued	326		10,000
Proceeds from long-term loans	502		15,416
Repayments of long-term loans	(376	)	(11,558	)
Increase in guarantee deposits	339		10,423
Decrease in other financial liabilities	(691	)	(21,209	)
Cash dividends	(1,466	)	(45,015	)
Others	(22	)	(673	)
Net cash used in financing activities	(947	)	(29,086	)

Effect of exchange rate changes on cash and cash equivalents	(13	)	(392	)
Net decrease in cash and cash equivalents	(1,344	)	(41,265	)

Cash and cash equivalents at beginning of period	5,660		173,819

Cash and cash equivalents at end of period	4,316		132,554


Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2023 exchange rate of NT $30.71 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, 2023, the three-month period ending September 30, 2023, and the equivalent three-month period that ended December 31, 2022. For all 4Q23 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the December 31, 2023 exchange rate of NT$ 30.71 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.

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UMC Reports Fourth Quarter 2023 Results