Q2 GM climbs to 46.5% as 1H 2022 operating income reaches NT$50.5bn

Second Quarter 2022 Overview¹:

Revenue: NT$72.06 billion (US$2.43 billion)
Gross margin: 46.5%; Operating margin: 39.1%
Revenue from 22/28nm: 22%
Capacity utilization rate: 100%+
Net income attributable to shareholders of the parent: NT$21.33 billion (US$718 million)
Earnings per share: NT$1.74; earnings per ADS: US$0.293

United Microelectronics Corporation (NYSE:UMC, TWSE: 2303))) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the second quarter of 2022.

Second quarter consolidated revenue was NT$72.06 billion, increasing 13.6% QoQ from NT$63.42 billion in 1Q22. Compared to a year ago, 2Q22 revenue grew 41.5% YoY from NT$50.91 billion in 2Q21. Consolidated gross margin for 2Q22 reached 46.5%. Net income attributable to the shareholders of the parent was NT$21.33 billion, with earnings per ordinary share of NT$1.74.

Jason Wang, UMC co-president, said, "In the second quarter, we delivered results in line with guidance, thanks to continuous strong demand for UMC's differentiated processes across our end markets. Overall wafer shipments rose 4.3% from the previous quarter, while higher average selling price and a favorable foreign exchange rate lifted second-quarter gross margin to 46.5%. Revenue from our 22/28nm portfolio increased 29% sequentially, driven by the additional capacity at Fab 12A P5 that came online during the second quarter. We are confident in the long-term growth prospects of our 22/28nm business, which now represents 22% of UMC's overall wafer revenue, and has demonstrated solid traction for OLED display drivers, image processors, WiFi, and automotive applications. As structural trends drive semiconductor content increase in end devices from smartphones to automobiles, it is our conviction that 28nm is a long-lasting node that will be important for many existing and emerging applications for years to come."

Co-president Wang said, "Going into the third quarter, we expect our business to remain firm. While cooling demand for smartphones, PCs, and consumer electronics may pose some short-term fluctuations, we are actively working with customers to adjust their product mix. Coming off a super cycle over the past two years, the semiconductor industry is now in a period of inventory correction. We believe UMC's comprehensive portfolio of differentiated, leading specialty technologies and strong partnerships with leading customers will help us navigate the cyclical macro environment."

Co-president Wang added, "Moving onto our progress in sustainability, we are pleased to become the first semiconductor foundry globally to have emissions reduction targets validated by the Science Based Targets initiative (SBTi), the leading body that independently assesses emissions targets of companies and ensure they align with the latest climate science. This reflects UMC's commitment to accountability and confirms our roadmap to achieve our net-zero pledge. According to our roadmap, we will systematically lower direct emissions from our operations, indirect emissions from our electricity usage, as well as emissions from our value chain in order to minimize the environmental footprint of our operations and products."

Summary of Operating Results

Operating Results
(Amount: NT$ million)	2Q22		1Q22		QoQ % change	2Q21		YoY % change
Operating Revenues	72,055		63,423		13.6	50,908		41.5
Gross Profit	33,472		27,504		21.7	15,908		110.4
Operating Expenses	(6,706	)	(6,513	)	3.0	(6,201	)	8.2
Net Other Operating Income and Expenses	1,398		1,343		4.1	1,606		(12.9	)
Operating Income	28,164		22,334		26.1	11,313		149.0
Net Non-Operating Income and Expenses	(2,586	)	1,314		-	1,881		-
Net Income Attributable to Shareholders of the Parent	21,327		19,808		7.7	11,943		78.6
EPS (NT$ per share)	1.74		1.61			0.98
(US$ per ADS)	0.293		0.271			0.165

Second quarter operating revenues increased by 13.6% sequentially to NT$72.06 billion which was lifted to higher wafer shipments, increase in wafer pricing as well as favorable foreign exchange rate. Revenue contribution from 40nm and below technologies represented 40% of wafer revenue. Gross profit grew 21.7% QoQ to NT$33.47 billion, or 46.5% of revenue. Operating expenses grew 3.0% to NT$6.71 billion. Net other operating income remained relatively flat at NT$1.40 billion. Net non-operating loss amounted to NT$2.59 billion primarily from non-cash based items recognized as marked-to-market assets. Net income attributable to shareholders of the parent amounted to NT$21.33 billion.

Earnings per ordinary share for the quarter was NT$1.74. Earnings per ADS was US$0.293. The basic weighted average number of outstanding shares in 2Q22 was 12,283,479,334, compared with 12,283,479,334 shares in 1Q22 and 12,206,292,756 shares in 2Q21. The diluted weighted average number of outstanding shares was 12,553,373,552 in 2Q22, compared with 12,534,728,721 shares in 1Q22 and 12,382,592,798 shares in 2Q21. The fully diluted shares counted on June 30, 2022 were approximately 12,553,374,000.

Detailed Financials Section

Operating revenues increased to NT$72.06 billion. COGS increased to NT$38.58 billion, which included 1.9% sequential decrease in depreciation, mainly reflecting higher wafer shipments. Gross profit grew 21.7% QoQ to NT$33.47 billion. Operating expenses slightly increased 3.0% QoQ to NT$6.71 billion, as G&A grew 15.8% to NT$2.58 billion while R&D was up 5.8% QoQ to NT$3.21 billion, representing 4.5% of revenue. Net other operating income was NT$1.40 billion. In 2Q22, operating income grew 26.1% QoQ to NT$28.16 billion.

COGS & Expenses
(Amount: NT$ million)	2Q22		1Q22		QoQ % change		2Q21		YoY % change
Operating Revenues	72,055		63,423		13.6		50,908		41.5
COGS	(38,583	)	(35,919	)	7.4		(35,000	)	10.2
Depreciation	(9,616	)	(9,807	)	(1.9	)	(10,187	)	(5.6	)
Other Mfg. Costs	(28,967	)	(26,112	)	10.9		(24,813	)	16.7
Gross Profit	33,472		27,504		21.7		15,908		110.4
Gross Margin (%)	46.5	%	43.4	%			31.3	%
Operating Expenses	(6,706	)	(6,513	)	3.0		(6,201	)	8.2
G&A	(2,579	)	(2,226	)	15.8		(1,901	)	35.7
Sales & Marketing	(915	)	(1,255	)	(27.1	)	(1,131	)	(19.1	)
R&D	(3,209	)	(3,033	)	5.8		(3,168	)	1.3
Expected Credit Impairment Gain (Loss)	(3	)	1		-		(1	)	90.3
Net Other Operating Income & Expenses	1,398		1,343		4.1		1,606		(12.9	)
Operating Income	28,164		22,334		26.1		11,313		149.0

Net non-operating expense in 2Q22 was NT$2.59 billion, primarily reflecting NT$3.68 billion in net investment loss, offset by a NT$1.36 billion in exchange gain.

Non-Operating Income and Expenses
(Amount: NT$ million)	2Q22		1Q22		2Q21
Non-Operating Income and Expenses	(2,586	)	1,314		1,881
Net Interest Income and Expenses	(163	)	(323	)	(310	)
Net Investment Gain and Loss	(3,675	)	576		2,276
Exchange Gain and Loss	1,361		926		(84	)
Other Gain and Loss	(109	)	135		(1	)

In 2Q22, cash inflow from operating activities was NT$35.09 billion. Cash outflow from investing activities amounted to NT$11.72 billion, which included NT$11.63 billion in capital expenditure, resulting in free cash flow of NT$23.46 billion. Cash outflow from financing reached NT$13.42 billion, primarily from NT$11.62 billion repayment in bank loans and NT$2.48 billion in redemption of bonds. Net cash inflow in 2Q22 totaled NT$11.55 billion. Over the next 12 months, the company expects to repay NT$ 4.18 billion in bank loans.

Cash Flow Summary
(Amount: NT$ million)	For the 3-Month Period Ended Jun. 30, 2022		For the 3-Month Period Ended Mar. 31, 2022
Cash Flow from Operating Activities	35,091		30,118
Net income before tax	25,578		23,648
Depreciation & Amortization	11,107		11,390
Share of loss of associates and joint ventures	2,027		1,858
Income tax paid	(2,913	)	(769	)
Changes in working capital & others	(708	)	(6,009	)
Cash Flow from Investing Activities	(11,716	)	14,752
Decrease in financial assets measured at amortized cost	103		26,315
Acquisition of PP&E	(10,907	)	(10,803	)
Acquisition of intangible assets	(815	)	(421	)
Others	(97	)	(339	)
Cash Flow from Financing Activities	(13,423	)	(7,959	)
Bank loans	(11,615	)	(612	)
Redemption of bonds	(2,484	)	(7,249	)
Others	676		(98	)
Effect of Exchange Rate	1,601		2,637
Net Cash Flow	11,553		39,548
Beginning balance	172,170		132,622
Ending balance	183,723		172,170

Cash and cash equivalents increased to NT$183.72 billion. Days of inventory increased by 1 day to 62 days.

Current Assets
(Amount: NT$ billion)	2Q22	1Q22	2Q21
Cash and Cash Equivalents	183.72	172.17	124.00
Notes & Accounts Receivable	42.88	38.05	30.11
Days Sales Outstanding	51	53	53
Inventories, net	27.34	25.40	22.44
Days of Inventory	62	61	58
Total Current Assets	265.78	249.68	207.83

Current liabilities increased to NT$131.81 billion, mainly from NT$97.04 billion in other. Long-term credit/bonds decreased to NT$45.70 billion. Total liabilities increased to NT$216.51 billion, leading to a debt to equity ratio of 76%.

Liabilities
(Amount: NT$ billion)	2Q22	1Q22	2Q21
Total Current Liabilities	131.81	93.12	85.00
Notes & Accounts Payable	9.95	9.06	8.42
Short-Term Credit / Bonds	13.22	22.58	19.65
Payables on Equipment	11.60	7.63	6.67
Dividends Payable	-	-	19.88
Other	97.04	53.85	30.38
Long-Term Credit / Bonds	45.70	50.07	50.97
Long-Term Investment Liabilities	8.50	8.59	20.61
Total Liabilities	216.51	180.62	181.49
Debt to Equity	76%	60%	76%

Analysis of Revenue²

Revenue from Asia-Pacific increased to 65% while business from North America remained at 22% of sales. Business from Europe was 8% while contribution from Japan decreased to 5%.

Revenue Breakdown by Region
Region	2Q22	1Q22	4Q21	3Q21	2Q21
North America	22%	22%	21%	22%	22%
Asia Pacific	65%	64%	66%	65%	63%
Europe	8%	8%	7%	7%	8%
Japan	5%	6%	6%	6%	7%

Revenue contribution from 22/28nm grew to 22% of the wafer revenue, while 40nm contribution stayed at 18% of sales.

Revenue Breakdown by Geometry
Geometry	2Q22	1Q22	4Q21	3Q21	2Q21
14nm and below	0%	0%	0%	0%	0%
14nm<x<=28nm	22%	20%	20%	19%	20%
28nm<x<=40nm	18%	18%	18%	18%	18%
40nm<x<=65nm	19%	19%	19%	19%	19%
65nm<x<=90nm	7%	8%	8%	8%	9%
90nm<x<=0.13um	12%	12%	12%	12%	11%
0.13um<x<=0.18um	12%	13%	13%	13%	13%
0.18um<x<=0.35um	8%	7%	7%	8%	8%
0.5um and above	2%	3%	3%	3%	2%

Revenue from fabless customers accounted for 86% of revenue.

Revenue Breakdown by Customer Type
Customer Type	2Q22	1Q22	4Q21	3Q21	2Q21
Fabless	86%	87%	86%	86%	84%
IDM	14%	13%	14%	14%	16%

Revenue from the communication segment represented 45%, while business from computer applications decreased to 16%. Business from consumer applications was 27% as other segments remained at 12% of revenue.

Revenue Breakdown by Application ⁽¹⁾
Application	2Q22	1Q22	4Q21	3Q21	2Q21
Computer	16%	17%	17%	17%	17%
Communication	45%	45%	46%	46%	47%
Consumer	27%	26%	26%	27%	26%
Others	12%	12%	11%	10%	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) grew in 2Q22.

(To view blended ASP trend, please click here for 2Q22 ASP)

Shipment and Utilization Rate³

Wafer shipments grew 4.3% QoQ to 2,622K in the second quarter, while quarterly capacity grew to 2,528K. Overall utilization rate in 2Q22 remained above 100%.

Wafer Shipments
	2Q22	1Q22	4Q21	3Q21	2Q21
Wafer Shipments (8" K equivalents)	2,622	2,513	2,546	2,503	2,440

Quarterly Capacity Utilization Rate
	2Q22	1Q22	4Q21	3Q21	2Q21
Utilization Rate	100%+	100%+	100%+	100%+	100%+
Total Capacity (8" K equivalents)	2,528	2,420	2,419	2,383	2,370

Capacity⁴

Overall capacity in the second quarter increased to 2,528K 8-inch equivalent wafers. Capacity will grow in the third quarter of 2022 to 2,539K 8-inch equivalent wafers, driven by the capacity expansion taking place at 12X and 8N.

Annual Capacity in *thousands of wafers*							Quarterly Capacity in *thousands of wafers*
FAB		Geometry (um)	2021	2020	2019	2018	FAB		3Q22E	2Q22	1Q22	4Q21
WTK	6"	5 – 0.15	329	371	370	396	WTK	6"	85	84	82	81
8A	8"	3 – 0.11	755	802	825	825	8A	8"	192	192	189	190
8C	8"	0.35 – 0.11	459	452	436	383	8C	8"	115	115	113	115
8D	8"	0.18 – 0.09	380	371	359	347	8D	8"	103	103	101	95
8E	8"	0.6 – 0.14	457	449	426	418	8E	8"	118	118	116	115
8F	8"	0.18 – 0.11	514	485	434	431	8F	8"	138	138	136	137
8S	8"	0.18 – 0.11	408	373	372	372	8S	8"	111	111	109	102
8N	8"	0.5 – 0.11	917	917	831	771	8N	8"	242	235	231	232
12A	12"	0.13 – 0.014	1,070	1,044	997	997	12A	12"	301	301	267	271
12i	12"	0.13 – 0.040	641	628	595	555	12i	12"	164	164	162	164
12X	12"	0.080 – 0.022	284	217	203	183	12X	12"	80	78	77	78
12M	12"	0.13 – 0.040	395	391	98	-	12M	12"	110	110	108	104
Total⁽¹⁾			9,453	9,188	8,148	7,673	Total		2,539	2,528	2,420	2,419
YoY Growth Rate			3%	13%	6%	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

CAPEX spending in 2Q22 totaled US$395 million. 2022 cash-based CAPEX budget will be US$3.6 billion.

Capital Expenditure by Year - in US$ billion
Year	2021	2020	2019	2018	2017
CAPEX	$ 1.8	$ 1.0	$ 0.6	$ 0.7	$ 1.4

2022 CAPEX Plan
8"	12"	Total
10%	90%	US$3.6 billion

Third Quarter 2022 Outlook & Guidance

Quarter-over-Quarter Guidance:

Wafer Shipments: To remain flat
ASP in USD: To remain flat
Gross Profit Margin: To be in the mid-40% range
Capacity Utilization: 100%
2022 CAPEX: US$3.6 billion

Recent Developments / Announcements

Apr. 29, 2022	UMC ranked top 5% in corporate governance evaluation for 8^th consecutive year
May. 27, 2022	UMC shareholders approve NT$3 cash dividend at annual shareholders' meeting
Jun. 23, 2022	UMC's climate goals validated by Science Based Targets initiatives

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

Conference Call / Webcast Announcement

Wednesday, July 27, 2022

Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 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 2Q22 results announcement will be available at www.umc.com under the "Investors / Events" section.

About UMC

UMC (NYSE:UMC, TWSE: 2303))) is a leading global semiconductor foundry. The company provides high quality IC production with a focus on both logic and specialty technologies to serve every major sector of the electronics industry. UMC's comprehensive technology and manufacturing solutions include logic/RF, embedded high voltage, embedded flash, RFSOI/BCD and IATF-16949 automotive manufacturing certification for all its manufacturing facilities. UMC operates 12 fabs that are strategically located throughout Asia with a maximum capacity of approximately 850,000 8-inch equivalent wafers per month. The company employs approximately 20,000 people worldwide, with offices in Taiwan, China, United States, Europe, Japan, Korea and Singapore. For more information, please visit: http://www.umc.com.

Safe Harbor Statements

This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding anticipated financial results for the second quarter of 2022; the expected wafer shipment and ASP; the anticipated annual budget; capex strategies; environmental protection goals and water management strategies; impact of foreign currency exchange rates; expected foundry capacities; the ability to obtain new business opportunities; and information under the heading "Second Quarter of 2022 Outlook and Guidance."

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) dependence upon the frequent introduction of new services and technologies based on the latest developments in the industry in which UMC operates; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international business activities; (iv) dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including natural disasters, terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risk factors is included in UMC's filings with the United States Securities and Exchange Commission, including its Annual Report on Form 20-F. All information provided in this release is as of the date of this release and are based on assumptions that UMC believes to be reasonable as of this date, and UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

The financial statements included in this release are prepared and published in accordance with Taiwan International Financial Reporting Standards, or TIFRSs, recognized by the Financial Supervisory Commission in the ROC, which is different from International Financial Reporting Standards, or IFRSs, issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from generally accepted accounting principles in the ROC and generally accepted accounting principles in the United States.

- FINANCIAL TABLES TO FOLLOW -

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheet
As of June 30, 2022
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

	June 30, 2022
	US$	NT$	%
Assets
Current assets
Cash and cash equivalents	6,184	183,723	36.8%
Accounts receivable, net	1,443	42,884	8.6%
Inventories, net	920	27,341	5.5%
Other current assets	399	11,830	2.3%
Total current assets	8,946	265,778	53.2%

Non-current assets
Funds and investments	2,234	66,373	13.3%
Property, plant and equipment	4,518	134,243	26.9%
Right-of-use assets	266	7,900	1.6%
Other non-current assets	857	25,460	5.0%
Total non-current assets	7,875	233,976	46.8%
Total assets	16,821	499,754	100.0%

Liabilities
Current liabilities
Short-term loans	21	624	0.1%
Payables	3,194	94,907	19.0%
Current portion of long-term liabilities	424	12,593	2.5%
Other current liabilities	798	23,689	4.8%
Total current liabilities	4,437	131,813	26.4%

Non-current liabilities
Bonds payable	777	23,080	4.6%
Long-term loans	761	22,619	4.5%
Lease liabilities, noncurrent	180	5,346	1.1%
Other non-current liabilities	1,132	33,648	6.7%
Total non-current liabilities	2,850	84,693	16.9%
Total liabilities	7,287	216,506	43.3%

Equity
Equity attributable to the parent company
Capital	4,201	124,821	25.0%
Additional paid-in capital	350	10,400	2.1%
Retained earnings and other components of equity	4,970	147,661	29.5%
Total equity attributable to the parent company	9,521	282,882	56.6%
Non-controlling interests	13	366	0.1%
Total equity	9,534	283,248	56.7%
Total liabilities and equity	16,821	499,754	100.0%



Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2022 exchange rate of NT $29.71 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
	June 30, 2022		June 30, 2021		Chg.	June 30, 2022		March 31, 2022		Chg.
	US$	NT$	US$	NT$	%	US$	NT$	US$	NT$	%
Operating revenues	2,425	72,055	1,713	50,908	41.5%	2,425	72,055	2,135	63,423	13.6%
Operating costs	(1,298)	(38,583)	(1,178)	(35,000)	10.2%	(1,298)	(38,583)	(1,209)	(35,919)	7.4%
Gross profit	1,127	33,472	535	15,908	110.4%	1,127	33,472	926	27,504	21.7%
	46.5%	46.5%	31.3%	31.3%		46.5%	46.5%	43.4%	43.4%
Operating expenses
- Sales and marketing expenses	(31)	(915)	(38)	(1,131)	(19.1%)	(31)	(915)	(42)	(1,255)	(27.1%)
- General and administrative expenses	(87)	(2,579)	(63)	(1,901)	35.7%	(87)	(2,579)	(75)	(2,226)	15.8%
- Research and development expenses	(108)	(3,209)	(107)	(3,168)	1.3%	(108)	(3,209)	(102)	(3,033)	5.8%
- Expected credit impairment gain (loss)	(0)	(3)	(0)	(1)	90.3%	(0)	(3)	0	1	-
Subtotal	(226)	(6,706)	(208)	(6,201)	8.2%	(226)	(6,706)	(219)	(6,513)	3.0%
Net other operating income and expenses	47	1,398	54	1,606	(12.9%)	47	1,398	45	1,343	4.1%
Operating income	948	28,164	381	11,313	149.0%	948	28,164	752	22,334	26.1%
	39.1%	39.1%	22.2%	22.2%		39.1%	39.1%	35.2%	35.2%

Net non-operating income and expenses	(87)	(2,586)	63	1,881	-	(87)	(2,586)	44	1,314	-
Income from continuing operations
before income tax	861	25,578	444	13,194	93.9%	861	25,578	796	23,648	8.2%
	35.5%	35.5%	25.9%	25.9%		35.5%	35.5%	37.3%	37.3%

Income tax expense	(138)	(4,088)	(45)	(1,327)	207.8%	(138)	(4,088)	(121)	(3,582)	14.1%
Net income	723	21,490	399	11,867	81.1%	723	21,490	675	20,066	7.1%
	29.8%	29.8%	23.3%	23.3%		29.8%	29.8%	31.6%	31.6%

Other comprehensive income (loss)	(126)	(3,749)	(65)	(1,935)	93.8%	(126)	(3,749)	48	1,422	-

Total comprehensive income (loss)	597	17,741	334	9,932	78.6%	597	17,741	723	21,488	(17.4%)

Net income attributable to:
Shareholders of the parent	718	21,327	402	11,943	78.6%	718	21,327	667	19,808	7.7%
Non-controlling interests	5	163	(3)	(76)	-	5	163	8	258	(36.6%)

Comprehensive income (loss) attributable to:
Shareholders of the parent	592	17,578	337	10,008	75.6%	592	17,578	715	21,229	(17.2%)
Non-controlling interests	5	163	(3)	(76)	-	5	163	8	259	(36.6%)

Earnings per share-basic	0.059	1.74	0.033	0.98		0.059	1.74	0.054	1.61
Earnings per ADS ⁽²⁾	0.293	8.70	0.165	4.90		0.293	8.70	0.271	8.05
Weighted average number of shares
outstanding (in millions)		12,283		12,206			12,283		12,283


Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2022 exchange rate of NT $29.71 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 Six-Month Period Ended
	June 30, 2022			June 30, 2022
	US$	NT$	%	US$	NT$	%
Operating revenues	2,425	72,055	100.0%	4,560	135,478	100.0%
Operating costs	(1,298)	(38,583)	(53.5%)	(2,508)	(74,501)	(55.0%)
Gross profit	1,127	33,472	46.5%	2,052	60,977	45.0%


Operating expenses
- Sales and marketing expenses	(31)	(915)	(1.3%)	(73)	(2,170)	(1.6%)
- General and administrative expenses	(87)	(2,579)	(3.5%)	(162)	(4,806)	(3.5%)
- Research and development expenses	(108)	(3,209)	(4.5%)	(210)	(6,242)	(4.6%)
- Expected credit impairment loss	(0)	(3)	(0.0%)	(0)	(2)	(0.0%)
Subtotal	(226)	(6,706)	(9.3%)	(445)	(13,220)	(9.7%)
Net other operating income and expenses	47	1,398	1.9%	93	2,741	2.0%
Operating income	948	28,164	39.1%	1,700	50,498	37.3%

Net non-operating income and expenses	(87)	(2,586)	(3.6%)	(43)	(1,273)	(1.0%)
Income from continuing operations
before income tax	861	25,578	35.5%	1,657	49,225	36.3%


Income tax expense	(138)	(4,088)	(5.7%)	(258)	(7,669)	(5.6%)
Net income	723	21,490	29.8%	1,399	41,556	30.7%

Other comprehensive income (loss)	(126)	(3,749)	(5.2%)	(79)	(2,327)	(1.7%)

Total comprehensive income (loss)	597	17,741	24.6%	1,320	39,229	29.0%

Net income attributable to:
Shareholders of the parent	718	21,327	29.6%	1,385	41,134	30.4%
Non-controlling interests	5	163	0.2%	14	422	0.3%

Comprehensive income (loss) attributable to:
Shareholders of the parent	592	17,578	24.4%	1,306	38,807	28.7%
Non-controlling interests	5	163	0.2%	14	422	0.3%

Earnings per share-basic	0.059	1.74		0.113	3.35
Earnings per ADS ⁽²⁾	0.293	8.70		0.564	16.75

Weighted average number of shares
outstanding (in millions)		12,283			12,283

Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2022 exchange rate of NT $29.71 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statement of Cash Flows
For The Six-Month Period Ended June 30, 2022
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

	US$	NT$
Cash flows from operating activities :
Net income before tax	1,657	49,225
Depreciation & Amortization	757	22,497
Share of loss of associates and joint ventures	131	3,885
Income tax paid	(124)	(3,682)
Changes in working capital & others	(226)	(6,716)
Net cash provided by operating activities	2,195	65,209

Cash flows from investing activities :
Decrease in financial assets measured at amortized cost	889	26,418
Acquisition of property, plant and equipment	(731)	(21,710)
Acquisition of intangible assets	(42)	(1,236)
Others	(14)	(436)
Net cash provided by investing activities	102	3,036

Cash flows from financing activities :
Decrease in short-term loans	(45)	(1,349)
Redemption of bonds	(328)	(9,733)
Proceeds from long-term loans	24	710
Repayments of long-term loans	(390)	(11,588)
Others	19	578
Net cash used in financing activities	(720)	(21,382)

Effect of exchange rate changes on cash and cash equivalents	143	4,238
Net increase in cash and cash equivalents	1,720	51,101

Cash and cash equivalents at beginning of period	4,464	132,622

Cash and cash equivalents at end of period	6,184	183,723



Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2022 exchange rate of NT $29.71 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 June 30, 2022, the three-month period ending March 31, 2022, and the equivalent three-month period that ended June 30, 2021. For all 2Q22 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the June 30, 2022 exchange rate of NT$ 29.71 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 Second Quarter 2022 Results