Company’s differentiating specialty technologies accounted for 59% of Q2 revenue

Solid 22/28nm business momentum lifted contribution to 29%

Second Quarter 2023 Overview¹:

• Revenue: NT$56.30 billion (US$1.81 billion)
• Gross margin: 36.0%; Operating margin: 27.8%
• Revenue from 22/28nm: 29%
• Capacity utilization rate: 71%
• Net income attributable to shareholders of the parent: NT$15.64 billion (US$502 million)
• Earnings per share: NT$1.27; earnings per ADS: US$0.204

TAIPEI, Taiwan — (BUSINESS WIRE) — July 26, 2023 — 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 2023.

Second quarter consolidated revenue was NT$56.30 billion, increasing 3.8% QoQ from NT$54.21 billion in 1Q23. Compared to a year ago, 2Q23 revenue declined 21.9% YoY from NT$72.06 billion in 2Q22. Consolidated gross margin for 2Q23 was 36.0%. Net income attributable to the shareholders of the parent was NT$15.64 billion, with earnings per ordinary share of NT$1.27.

Jason Wang, co-president of UMC, said, “For the second quarter, we reported results in line with guidance, with wafer shipments remaining flat from the previous quarter and utilization rate of 71%. Second-quarter revenue grew 3.8% QoQ, mainly due to improved product mix within our 12-inch portfolio. Revenue from 22/28nm products continued to increase sequentially, representing 29% of second-quarter sales, while contribution from specialty technologies reached 59%. By segment, we saw short-term demand recovery in the consumer space for WiFi, digital TV, and display driver ICs, while demand for computer-related products also moderately rebounded from the previous quarter. We are pleased to share that we have completed the transaction to acquire remaining shares in USCXM, our 12-inch fab in Xiamen, China. As one of UMC’s four 12-inch fabs in geographically diverse locations, USCXM will continue to provide high-quality fabrication services to customers and increase its contribution to UMC’s financial performance as a wholly-owned subsidiary.”

Co-president Wang said: “Looking into the third quarter, wafer demand outlook is uncertain given prolonged inventory correction in the supply chain. While we saw spots of limited recovery in the second quarter, overall end market sentiment remains weak and we expect customers to continue stringent inventory management in the near term. Despite a weaker-than-expected environment going into the second half, we believe our 22/28nm business will remain resilient due to our strong position in leading edge specialty technologies such as embedded high voltage. In addition, we are gearing up to offer the necessary silicon interposer technology and capacity to fulfill emerging AI market demand from customers.”

“UMC continues to enhance communication of its corporate sustainability efforts to stakeholders. This month, UMC issued its first Climate Action Report, which follows the Task Force on Climate-Related Financial Disclosures (TCFD) framework, providing a detailed overview of how UMC is responding to climate change. In addition, UMC was ranked in the top 5% of listed firms in Taiwan Stock Exchange’s 2022 Corporate Governance Evaluation for the ninth consecutive year, demonstrating the company’s commitment to delivering long-term shareholder value and adhering to sustainable business practices,” Co-president Wang added.

Summary of Operating Results