Proposed cash dividend of NT$0.70; company currently engaged in share buyback program

First Quarter 2018 Overview¹:

• Revenue: NT$37.50 billion (US$1.29 billion)
• Gross margin: 12.4%
• Foundry revenue from 28nm: 12%; Foundry operating margin: 2.3%
• Foundry capacity utilization rate: 94%
• Net income attributable to stockholders of the parent: NT$3.40 billion (US$117 million)
• Earnings per share: NT$0.28; earnings per ADS: US$0.048

TAIPEI, Taiwan — (BUSINESS WIRE) — April 25, 2018 — United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the first quarter of 2018.

First quarter consolidated revenue was NT$37.50 billion, up 2.4% from NT$36.63 billion in 4Q17 and flat YoY from NT$37.42 billion in 1Q17. Consolidated gross margin for 1Q18 was 12.4%. Net income attributable to stockholders of the parent was NT$3.40 billion, with earnings per ordinary share of NT$0.28.

Jason Wang, co-president of UMC, said, “In the first quarter of 2018, despite the unfavorable movement of the NT dollar, our foundry revenue increased 2.5% QoQ to NT$37.44 billion. Stable loading across 8" and mature 12" technologies resulted in an overall utilization rate of 94%, bringing wafer shipments to 1.75 million 8-inch equivalent wafers. Softening demand in smartphone and other wireless devices was more than offset by strength in the computer and consumer segments.”

Co-president Wang continued, “Looking into the second quarter, we anticipate our wafer shipments to increase, mainly due to growing business opportunities from wireless communication as well as computer peripheral related chip demand. As we secure new product tape outs across advanced and mature technologies including 28nm, we will leverage our collaborative efforts with customers supported by UMC’s manufacturing excellence to enhance our market share and financial results. While we focus on revenue and profit growth, we also seek to maximize shareholder returns. Subject to shareholders’ approval, the board of directors recently proposed a cash dividend distribution of approximately NT$0.70 per share, which constitutes around an 88% cash dividend payout ratio. In addition, we began our 18th share buyback program in March 8, 2018 and will complete the purchase of shares for cancellation by May 7, 2018. Moving forward, we will continue to improve UMC’s profitability and maintaining business growth to maximize benefits to our shareholders.”

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¹ Unless 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 March 31, 2018, the three-month period ending December 31, 2017, and the equivalent three-month period that ended March 31, 2017. For all 1Q18 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the March 31, 2018 exchange rate of NT$ 29.11 per U.S. Dollar.

Summary of Operating Results