UMC Reports Second Quarter 2020 Results
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UMC Reports Second Quarter 2020 Results

2Q20 operating income grows 71% QoQ to NT$5.85 billion with EPS of NT$0.55 Second Quarter 2020 Overview1:

TAIPEI, Taiwan — (BUSINESS WIRE) — July 29, 2020 — 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 2020.

Second quarter consolidated revenue was NT$44.39 billion, up 5.0% QoQ from NT$42.27 billion in 1Q20 and up 23.2% YoY from NT$36.03 billion in 2Q19. Consolidated gross margin for 2Q20 was 23.1%. Net income attributable to the stockholders of the parent was NT$6.68 billion, with earnings per ordinary share of NT$0.55.

Jason Wang, co-president of UMC, said, “During the second quarter, consolidated operating margin reached 13.2%, while utilization rate increased to 98%, lifting wafer shipments to 2.22 million 8-inch equivalent wafers. The increase in wafer shipments mainly reflected computing segment demand for connectivity, display driver and flash controller as well as inventory replenishment in computing markets. As we continue to strive to supply world-class foundry services, our efforts have been appreciated by our customers. In Q2, Texas Instruments recognized UMC with the 2019 Supplier Excellence Award for demonstrating exemplary performance in the areas of cost, environmental & social responsibility, technology, responsiveness, assurance of supply and quality. In addition to serving customers to the best of our ability, UMC also increased 2019 cash dividend distribution to approximately NT$0.803 per share, reflecting the recent company buyback of treasury shares.”

Co-president Wang continued, “Looking into the third quarter, current market demand remains strong. We have experienced a surge in 28nm tape outs during the first half of 2020 compared to a year ago, and expect additional 28nm and 22nm product tape outs in the third quarter. We are also moving new 28nm products into volume production for wireless applications such as 4G and 5G smartphones, which will enhance our business traction and diversify UMC’s customer exposure across different 28nm market segments. Moreover, we have observed efforts to minimize supply chain disruptions amid uncertainty during the COVID-19 pandemic, while inventory replenishment is continuing across multiple market segments. With the efforts continuing to push customer adoption of UMC’s specialty technologies, our ROI-driven corporate strategy remains unchanged. As UMC secures new business, we will closely examine returns on invested capital to optimize the company’s capital deployment and further enhance our financial performance.”

Summary of Operating Results

Operating Results

(Amount: NT$ million)

2Q20

1Q20

QoQ %
change

2Q19

YoY %
change

Operating Revenues

44,386

42,268

5.0

36,031

23.2

Gross Profit

10,257

8,122

26.3

5,652

81.5

Operating Expenses

(5,677)

(5,722)

(0.8)

(5,578)

1.8

Net Other Operating Income and Expenses

1,266

1,014

24.9

1,687

(25.0)

Operating Income

5,846

3,414

71.2

1,761

232.0

Net Non-Operating Income and Expenses

818

(2,592)

-

(617)

-

Net Income Attributable to Stockholders of the Parent

6,681

2,207

202.7

1,740

283.8

EPS (NT$ per share)

0.55

0.19

 

0.15

 

(US$ per ADS)

0.093

0.032

 

0.025

 

Operating revenues in 2Q20 grew 5.0% to NT$44.39 billion. Revenue contribution from 40nm and below technologies increased to 36%. Gross profit increased 26.3% QoQ to NT$10.26 billion, or 23.1% of revenue. Operating expenses declined 0.8% to NT$5.68 billion. Net other operating income increased 24.9% to NT$1.27 billion, leading to an operating income of NT$5.85 billion. Net non-operating income was NT$818 million. Net income attributable to stockholders of the parent tripled QoQ to NT$6.68 billion.

Earnings per ordinary share for the quarter was NT$0.55. Earnings per ADS was US$0.093. The basic weighted average number of outstanding shares in 2Q20 was 12,193,149,897, compared with 11,782,936,260 shares in 1Q20 and 11,817,657,562 shares in 2Q19. The diluted weighted average number of outstanding shares was 12,262,774,432 in 2Q20, compared with 13,087,825,472 shares in 1Q20 and 13,079,662,179 shares in 2Q19. The fully diluted share count on June 30, 2020 was approximately 12,215,996,000. On June 30, 2020, UMC held 76 million treasury shares acquired from the 21th share buy-back programs.

Detailed Financials Section

COGS & Expenses

(Amount: NT$ million)

2Q20

1Q20

QoQ %
change

2Q19

YoY %
change

Operating Revenues

44,386

42,268

5.0

36,031

23.2

COGS

(34,129)

(34,146)

(0.0)

(30,379)

12.3

Depreciation

(10,544)

(11,124)

(5.2)

(11,424)

(7.7)

Other Mfg. Costs

(23,585)

(23,022)

2.4

(18,955)

24.4

Gross Profit

10,257

8,122

26.3

5,652

81.5

Gross Margin (%)

23.1%

19.2%

　

15.7%

　

Operating Expenses

(5,677)

(5,722)

(0.8)

(5,578)

1.8

G&A

(1,537)

(1,543)

(0.3)

(1,251)

23.0

Sales & Marketing

(929)

(1,040)

(10.7)

(953)

(2.6)

R&D

(3,203)

(3,185)

0.6

(2,787)

14.9

Expected Credit Impairment Gain (Loss)

(8)

46

-

(587)

(98.7)

Net Other Operating Income & Expenses

1,266

1,014

24.9

1,687

(25.0)

Operating Income

5,846

3,414

71.2

1,761

232.0

Operating revenues grew 5.0% QoQ to NT$44.39 billion. COGS remained flat at NT$34.13 billion as depreciation declined 5.2% to NT$10.54 billion, which was offset by other manufacturing costs increasing 2.4% to NT$23.59 billion, mainly due to the increase in wafer shipments. Gross profit grew 26.3% to NT$10.26 billion, driven by product mix enhancement and an increase in overall utilization rate. Operating expenses remained flat at NT$5.68 billion, as sales and marketing declined 10.7% QoQ to NT$929 million. G&A expenses remained flat at NT$1.54 billion. R&D expenses increased 0.6% sequentially to NT$3.20 billion, representing 7.2% of 2Q20 operating revenues. Net other operating income increased to NT$1.27 billion. In 2Q20, operating income increased 71.2% QoQ to NT$5.85 billion.

Non-Operating Income and Expenses

(Amount: NT$ million)

2Q20

1Q20

2Q19

Non-Operating Income and Expenses

818

(2,592)

(617)

Net Interest Income and Expenses

(307)

(368)

(497)

Net Investment Gain and Loss

1643

(1,974)

69

Exchange Gain and Loss

(411)

(148)

(182)

Other Gain and Loss

(107)

(102)

(7)

Net non-operating income in 2Q20 was NT$818 million, resulting from NT$1.64 billion in net investment gain, partially offset by NT$411 million in exchange loss, NT$307 million in net interest expense and NT$107 million in other loss.


Cash Flow Summary

(Amount: NT$ million)

For the 3-Month Period Ended

Jun. 30, 2020

For the 3-Month Period Ended

Mar. 31, 2020

Cash Flow from Operating Activities

16,403

14,732

Net income before tax

6,664

822

Depreciation & Amortization

12,248

12,497

Expected credit impairment loss (gain)

8

(46)

Share of loss (profit) of associates and joint ventures

(914)

847

Income tax received (paid)

505

(151)

Changes in working capital & others

(2,108)

763

Cash Flow from Investing Activities

(7,877)

(9,111)

Acquisition of PP&E

(4,270)

(3,631)

Acquisition of intangible assets

(448)

(453)

Increase in other financial assets

(2,979)

(5,114)

Others

(180)

87

Cash Flow from Financing Activities

(2,947)

(5,849)

Bank loans

9,483

(2,563)

Redemption of bonds

(11,203)

(2,500)

Treasury stock acquired

(1,201)

-

Others

(26)

(786)

Effect of Exchange Rate

(873)

(98)

Net Cash Flow

4,706

(326)

Beginning balance

95,166

95,492

Ending balance

99,872

95,166

In 2Q20, cash inflow from operating activities was NT$16.40 billion. Cash outflow from investing activities totaled NT$7.88 billion, which included NT$4.69 billion in capital expenditure, resulting in free cash flow of NT$11.72 billion. Cash outflow from financing activities totaled NT$2.95 billion, primarily from NT$11.20 billion in the redemption of bonds and NT$1.20 billion in the acquisition of treasury share buyback, offset by NT$9.48 billion in bank loans. Net cash inflow in 2Q20 was NT$4.71 billion. Over the next 12 months, the company expects to repay NT$5.71 billion in bank loans.

Current Assets

(Amount: NT$ billion)

2Q20

1Q20

2Q19

Cash and Cash Equivalents

99.87

95.17

90.36

Notes & Accounts Receivable

27.26

28.57

24.39

Days Sales Outstanding

57

59

60

Inventories, net

23.34

22.13

19.63

Days of Inventory

61

59

58

Total Current Assets

167.96

159.60

150.51

Cash and cash equivalents increased to NT$99.87 billion. Days of inventory increased to 61 days.

Liabilities

(Amount: NT$ billion)

2Q20

1Q20

2Q19

Total Current Liabilities

65.11

61.10

77.06

Notes & Accounts Payable

8.56

8.92

6.91

Short-Term Credit / Bonds

17.32

25.35

39.43

Payables on Equipment

3.22

2.78

2.60

Dividends Payable

9.77

-

6.92

Other

26.24

24.05

21.20

Long-Term Credit / Bonds

53.50

47.75

45.39

Long-Term Investment Liabilities

19.69

19.89

20.83

Total Liabilities

158.34

149.64

167.84

Debt to Equity

76%

71%

83%

Current liabilities increased to NT$65.11 billion, mainly due to NT$9.77 billion in dividends payable, which was partially offset by the decline in short-term credit/bonds. Total liabilities increased to NT$158.34 billion, leading to a debt to equity ratio of 76%.

Analysis of Revenue2

Revenue Breakdown by Region

Region

2Q20

1Q20

4Q19

3Q19

2Q19

North America

31%

29%

30%

33%

31%

Asia Pacific

55%

56%

55%

59%

59%

Europe

5%

6%

6%

6%

7%

Japan

9%

9%

9%

2%

3%

Revenue from North America increased to 31%, while revenue contribution from Asia Pacific customers declined to 55%. Revenue from Japan remained at 9% while European business was 5%.

Revenue Breakdown by Geometry

Geometry

2Q20

1Q20

4Q19

3Q19

2Q19

14nm and below

0%

0%

0%

0%

0%

14nm<x<=28nm

13%

9%

10%

12%

13%

28nm<x<=40nm

23%

25%

22%

26%

24%

40nm<x<=65nm

16%

16%

16%

14%

14%

65nm<x<=90nm

13%

15%

18%

12%

12%

90nm<x<=0.13um

11%

11%

11%

11%

14%

0.13um<x<=0.18um

13%

13%

12%

13%

12%

0.18um<x<=0.35um

8%

8%

8%

9%

8%

0.5um and above

3%

3%

3%

3%

3%

Revenue contribution from 28nm increased to 13% while 40nm business represented 23% of sales.

Revenue Breakdown by Customer Type

Customer Type

2Q20

1Q20

4Q19

3Q19

2Q19

Fabless

88%

88%

87%

92%

93%

IDM

12%

12%

13%

8%

7%

Revenue from fabless customers was 88% of revenue.

Revenue Breakdown by Application (1)

Application

2Q20

1Q20

4Q19

3Q19

2Q19

Computer

14%

13%

13%

13%

14%

Communication

51%

54%

54%

54%

52%

Consumer

24%

24%

24%

26%

28%

Others

11%

9%

9%

7%

6%

Revenue from the computer segment increased to 14%, while business from communication applications declined to 51%. Business from consumer applications remained unchanged at 24% as other segments increased to 11%.

(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. Communication consists of handset components, broadband, WLAN, 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 2Q20.

(To view blended ASP trend, please click here for 2Q20 ASP)

Shipment and Utilization Rate3

Wafer Shipments

 

2Q20

1Q20

4Q19

3Q19

2Q19

Wafer Shipments
(8” K equivalents)

2,218

2,148

2,042

1,806

1,730

 

Quarterly Capacity Utilization Rate

 

2Q20

1Q20

4Q19

3Q19

2Q19

Utilization Rate

98%

93%

92%

91%

88%

Total Capacity
(8” K equivalents)

2,291

2,278

2,237

2,004

1,970

In 2Q20, wafer shipments increased 3.3% QoQ to 2,218K, while quarterly capacity rose 0.6% QoQ to 2,291K. As a result, the overall utilization rate in 2Q20 was 98%.

Capacity4

Total capacity in the second quarter totaled 2,291K 8-inch equivalent wafers. We foresee third quarter capacity will grow to 2,308K 8-inch equivalent wafers, mainly reflecting capacity increases at Fab 12i and Fab 12X.

Annual Capacity in

thousands of wafers

 

Quarterly Capacity in

thousands of wafers

FAB

Geometry
(um)

2019

2018

2017

2016

 

FAB

3Q20E

2Q20

1Q20

4Q19

WTK

6"

3.5 – 0.45

370

396

422

423

 

WTK

93

93

92

93

Fab 8A

8"

0.5 – 0.25

825

825

825

827

 

Fab 8A

201

201

200

207

Fab 8C

8"

0.35 – 0.11

436

383

357

348

 

Fab 8C

113

113

112

111

Fab 8D

8"

0.13 – 0.09

359

347

341

342

 

Fab 8D

93

93

92

90

Fab 8E

8"

0.5 – 0.18

426

418

418

419

 

Fab 8E

113

113

112

111

Fab 8F

8"

0.18 – 0.11

434

431

417

401

 

Fab 8F

122

122

121

110

Fab 8S

8"

0.18 – 0.11

372

372

347

336

 

Fab 8S

93

93

93

93

Fab 8N

8"

0.5 – 0.11

831

771

753

750

 

Fab 8N

230

230

228

218

Fab 12A

12"

0.13 – 0.014

997

997

970

885

 

Fab 12A

261

261

260

250

Fab 12i

12"

0.13 – 0.040

595

555

537

584

 

Fab 12i

160

155

154

155

Fab 12X

12"

0.040 – 0.028

203

183

97

9

 

Fab 12X

56

53

52

51

Fab 12M

12"

0.090 – 0.040

98

-

-

-

 

Fab 12M

98

98

97

98

Total(1)

8,148

7,673

7,304

6,983

 

Total

2,308

2,291

2,278

2,237

YoY Growth Rate

6%

5%

5%

6%

 

 

 

 

 

 

(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

2019

2018

2017

2016

2015

CAPEX

$0.60

$0.70

$1.40

$2.80

$1.90

 
 
2020 CAPEX Plan
8" 12" Total

15%

85%

US$1.0 billion

 

CAPEX spending in 2Q20 was US$157 million, leading to a total of US$288 million in capital expenditure investment during the first half of 2020. Full year 2020 CAPEX is budgeted at US$1.0 billion.

Third Quarter 2020 Outlook & Guidance

Quarter-over-Quarter Guidance:

  1. Wafer Shipments: To remain flat
  2. ASP in USD: To remain flat
  3. Gross Profit Margin: approximately 20%
  4. Capacity Utilization: mid-90% range
  5. 2020 CAPEX: US$1 billion

Recent Developments / Announcements

Jul 23, 2020

Cadence and UMC Certify mmWave Reference Flow for 28HPC+ Process

Jun 24, 2020

UMC Recognized for Excellence by Texas Instruments

May 7, 2020

UMC Ranked Top 5% in Corporate Governance Evaluation for 6th Consecutive Year

Apr 28, 2020

UMC Files Form 20-F for 2019 with US Securities and Exchange Commission

Apr 27, 2020

UMC 1Q20 Financial Results

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

Conference Call / Webcast Announcement

Wednesday, July 29, 2020

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 2Q20 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 19,000 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 sales for first quarter; product releases and market shares; opportunities in the 5G and IoT markets; anticipated wafer demands in market segments; execution of corporate strategies; repayment of bank loans; expected foundry capacities; the ability to obtain new business opportunities; and information under the heading “First Quarter of 2020 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 risks 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, 2020
 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
 
 
June 30, 2020
US$ NT$ %
Assets
Current assets
 Cash and cash equivalents

3,371

99,872

27.2%

 Notes & Accounts receivable, net

920

27,260

7.4%

 Inventories, net

788

23,342

6.4%

 Other current assets

589

17,481

4.7%

    Total current assets

5,668

167,955

45.7%

 
Non-current assets
 Funds and investments

1,415

41,939

11.4%

 Property, plant and equipment

4,449

131,817

35.9%

 Right-of-use assets

274

8,117

2.2%

 Other non-current assets

598

17,716

4.8%

    Total non-current assets

6,736

199,589

54.3%

Total assets

12,404

367,544

100.0%

 
Liabilities
Current liabilities
 Short-term loans

324

9,612

2.6%

 Payables

1,004

29,763

8.1%

 Dividends payable

330

9,765

2.7%

 Current portion of long-term liabilities

260

7,712

2.1%

 Other current liabilities

279

8,256

2.2%

    Total current liabilities

2,197

65,108

17.7%

 
Non-current liabilities
 Bonds payable

563

16,689

4.5%

 Long-term loans

1,242

36,807

10.0%

 Lease liabilities, noncurrent

182

5,382

1.5%

 Other non-current liabilities

1,160

34,355

9.4%

    Total non-current liabilities

3,147

93,233

25.4%

    Total liabilities

5,344

158,341

43.1%

 
Equity
Equity attributable to the parent company
 Capital

4,125

122,224

33.3%

 Additional paid-in capital

1,378

40,828

11.1%

 Retained earnings, exchange differences on translation of 
    foreign operations and unrealized gains or losses on financial 
    assets measured at fair value through other comprehensive
    income

1,600

47,395

12.9%

 Treasury stock

(45)

(1,320)

(0.4%)

    Total equity attributable to the parent company

7,058

209,127

56.9%

Non-controlling interests

2

76

0.0%

    Total equity

7,060

209,203

56.9%

Total liabilities and equity

12,404

367,544

100.0%

 
 
 
 
 
 
           
Note：New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2020 exchange rate of NT $29.63 per U.S. Dollar.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) 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, 2020 June 30, 2019 Chg. June 30, 2020 March 31, 2020 Chg.
US$ NT$ US$ NT$ % US$ NT$ US$ NT$ %
Operating revenues

1,498

44,386

1,216

36,031

23.2%

1,498

44,386

1,427

42,268

5.0%

Operating costs

(1,152)

(34,129)

(1,025)

(30,379)

12.3%

(1,152)

(34,129)

(1,153)

(34,146)

             (0.0%)

Gross profit

346

10,257

191

5,652

81.5%

346

10,257

274

8,122

26.3%

23.1%

23.1%

15.7%

15.7%

23.1%

23.1%

19.2%

19.2%

Operating expenses
  - Sales and marketing expenses

(31)

(929)

(32)

(953)

(2.6%)

(31)

(929)

(35)

(1,040)

(10.7%)

  - General and administrative expenses

(53)

(1,537)

(43)

(1,251)

23.0%

(53)

(1,537)

(53)

(1,543)

(0.3%)

  - Research and development expenses

(108)

(3,203)

(94)

(2,787)

14.9%

(108)

(3,203)

(107)

(3,185)

0.6%

  - Expected credit impairment gain (loss) 

                   (0)

(8)

(20)

(587)

(98.7%)

                   (0)

(8)

2

46

                    -

      Subtotal

(192)

(5,677)

(189)

(5,578)

1.8%

(192)

(5,677)

(193)

(5,722)

(0.8%)

Net other operating income and expenses

43

1,266

57

1,687

(25.0%)

43

1,266

34

1,014

24.9%

Operating income

197

5,846

59

1,761

232.0%

197

5,846

115

3,414

71.2%

13.2%

13.2%

4.9%

4.9%

13.2%

13.2%

8.1%

8.1%

 
Net non-operating income and expenses

28

818

(20)

(617)

                    -

28

818

(87)

(2,592)

                    -

Income from continuing operations
   before income tax

225

6,664

39

1,144

482.6%

225

6,664

28

822

710.8%

15.0%

15.0%

3.2%

3.2%

  

15.0%

15.0%

1.9%

1.9%

 
Income tax benefit (expense)

(21)

(613)

(7)

(202)

204.2%

(21)

(613)

14

408

                    -

Net income

204

6,051

32

942

542.1%

204

6,051

42

1,230

391.8%

13.6%

13.6%

2.6%

2.6%

13.6%

13.6%

2.9%

2.9%

 
Other comprehensive income (loss)

107

3,178

25

743

328.2%

107

3,178

(126)

(3,714)

                    -

 
Total comprehensive income (loss)

311

9,229

57

1,685

447.9%

311

9,229

(84)

(2,484)

                    -

 
    Net income attributable to:
　　Stockholders of the parent

225

6,681

59

1,740

283.8%

225

6,681

74

2,207

202.7%

　　Non-controlling interests

(21)

(630)

(27)

(798)

(21.1%)

(21)

(630)

(32)

(977)

(35.5%)

 
    Comprehensive income (loss) attributable to:
　　Stockholders of the parent

333

9,859

84

2,488

296.3%

333

9,859

(55)

(1,634)

                    -

　　Non-controlling interests

(22)

(630)

(27)

(803)

(21.6%)

(22)

(630)

(29)

(850)

(25.9%)

 
Earnings per share-basic

0.019

0.55

0.005

0.15

0.019

0.55

0.006

0.19

Earnings per ADS (2)

0.093

2.75

0.025

0.75

0.093

2.75

0.032

0.95

Weighted average number of shares
outstanding (in millions)   

12,193

  

11,818

  

12,193

  

11,783

 
                                       
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2020 exchange rate of NT $29.63 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
 
 
Year over Year Comparison Quarter over Quarter Comparison
Three-Month Period Ended Three-Month Period Ended
June 30, 2020 June 30, 2019 Chg. June 30, 2020 March 31, 2020 Chg.
US$ NT$ US$ NT$ % US$ NT$ US$ NT$ %
Operating revenues

1,498

44,386

1,216

36,031

23.2%

1,498

44,386

1,427

42,268

5.0%

Operating costs

(1,152)

(34,129)

(1,025)

(30,379)

12.3%

(1,152)

(34,129)

(1,153)

(34,146)

             (0.0%)

Gross profit

346

10,257

191

5,652

81.5%

346

10,257

274

8,122

26.3%

23.1%

23.1%

15.7%

15.7%

23.1%

23.1%

19.2%

19.2%

Operating expenses
  - Sales and marketing expenses

(31)

(929)

(32)

(953)

(2.6%)

(31)

(929)

(35)

(1,040)

(10.7%)

  - General and administrative expenses

(53)

(1,537)

(43)

(1,251)

23.0%

(53)

(1,537)

(53)

(1,543)

(0.3%)

  - Research and development expenses

(108)

(3,203)

(94)

(2,787)

14.9%

(108)

(3,203)

(107)

(3,185)

0.6%

  - Expected credit impairment gain (loss) 

                   (0)

(8)

(20)

(587)

(98.7%)

                   (0)

(8)

2

46

                    -

      Subtotal

(192)

(5,677)

(189)

(5,578)

1.8%

(192)

(5,677)

(193)

(5,722)

(0.8%)

Net other operating income and expenses

43

1,266

57

1,687

(25.0%)

43

1,266

34

1,014

24.9%

Operating income

197

5,846

59

1,761

232.0%

197

5,846

115

3,414

71.2%

13.2%

13.2%

4.9%

4.9%

13.2%

13.2%

8.1%

8.1%

 
Net non-operating income and expenses

28

818

(20)

(617)

                    -

28

818

(87)

(2,592)

                    -

Income from continuing operations
   before income tax

225

6,664

39

1,144

482.6%

225

6,664

28

822

710.8%

15.0%

15.0%

3.2%

3.2%

  

15.0%

15.0%

1.9%

1.9%

 
Income tax benefit (expense)

(21)

(613)

(7)

(202)

204.2%

(21)

(613)

14

408

                    -

Net income

204

6,051

32

942

542.1%

204

6,051

42

1,230

391.8%

13.6%

13.6%

2.6%

2.6%

13.6%

13.6%

2.9%

2.9%

 
Other comprehensive income (loss)

107

3,178

25

743

328.2%

107

3,178

(126)

(3,714)

                    -

 
Total comprehensive income (loss)

311

9,229

57

1,685

447.9%

311

9,229

(84)

(2,484)

                    -

 
    Net income attributable to:
　　Stockholders of the parent

225

6,681

59

1,740

283.8%

225

6,681

74

2,207

202.7%

　　Non-controlling interests

(21)

(630)

(27)

(798)

(21.1%)

(21)

(630)

(32)

(977)

(35.5%)

 
    Comprehensive income (loss) attributable to:
　　Stockholders of the parent

333

9,859

84

2,488

296.3%

333

9,859

(55)

(1,634)

                    -

　　Non-controlling interests

(22)

(630)

(27)

(803)

(21.6%)

(22)

(630)

(29)

(850)

(25.9%)

 
Earnings per share-basic

0.019

0.55

0.005

0.15

0.019

0.55

0.006

0.19

Earnings per ADS (2)

0.093

2.75

0.025

0.75

0.093

2.75

0.032

0.95

Weighted average number of shares
outstanding (in millions)   

12,193

  

11,818

  

12,193

  

11,783

 
                                       
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2020 exchange rate of NT $29.63 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) 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, 2020 June 30, 2020
US$ NT$ % US$  NT$  %
Operating revenues

1,498

44,386

100.0%

2,925

86,654

100.0%

Operating costs

(1,152)

(34,129)

(76.9%)

(2,305)

(68,274)

(78.8%)

Gross profit

346

10,257

23.1%

620

18,380

21.2%

 
 
Operating expenses
  - Sales and marketing expenses

(31)

(929)

(2.1%)

(66)

(1,968)

(2.3%)

  - General and administrative expenses

(53)

(1,537)

(3.5%)

(103)

(3,083)

(3.5%)

  - Research and development expenses

(108)

(3,203)

(7.2%)

(216)

(6,388)

(7.4%)

  - Expected credit impairment gain (loss)

                   (0)

(8)

(0.0%)

1

39

0.1%

      Subtotal

(192)

(5,677)

(12.8%)

(384)

(11,400)

(13.1%)

Net other operating income and expenses

43

1,266

2.9%

77

2,280

2.6%

Operating income

197

5,846

13.2%

313

9,260

10.7%

 
Net non-operating income and expenses

28

818

1.8%

(60)

(1,774)

(2.1%)

Income from continuing operations 
   before income tax

225

6,664

15.0%

253

7,486

8.6%

 
 
Income tax expense

(21)

(613)

(1.4%)

(7)

(205)

(0.2%)

Net income

204

6,051

13.6%

246

7,281

8.4%

 
Other comprehensive income (loss)

107

3,178

7.2%

(18)

(536)

(0.6%)

 
Total comprehensive income (loss)

311

9,229

20.8%

228

6,745

7.8%

 
    Net income attributable to:
　　Stockholders of the parent

225

6,681

15.1%

300

8,888

10.3%

　　Non-controlling interests

(21)

(630)

(1.5%)

(54)

(1,607)

(1.9%)

 
    Comprehensive income (loss) attributable to:
　　Stockholders of the parent

333

9,859

22.2%

278

8,225

9.5%

　　Non-controlling interests

(22)

(630)

(1.4%)

(50)

(1,480)

(1.7%)

 
Earnings per share-basic

0.019

0.55

0.025

0.74

Earnings per ADS (2)

0.093

2.75

0.125

3.70

 
Weighted average number of shares
     outstanding (in millions)

12,193

11,988

                       
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2020 exchange rate of NT $29.63 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statement of Cash Flows
For The Six-Month Period Ended June 30, 2020
 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
 
US$ NT$
Cash flows from operating activities :
    Net income before tax

253

7,486

    Depreciation & Amortization

835

24,745

    Changes in working capital & others

(37)

(1,096)

Net cash provided by operating activities

1,051

31,135

 
Cash flows from investing activities :
    Acquisition of property, plant and equipment

(267)

(7,901)

    Acquisition of intangible assets

(30)

(901)

    Increase in other financial assets

(273)

(8,093)

    Others

(3)

(93)

Net cash used in investing activities

(573)

(16,988)

 
Cash flows from financing activities :
    Decrease in short-term loans

(74)

(2,202)

    Redemption of bonds

(462)

(13,703)

    Proceeds from long-term loans

405

12,000

    Repayments of long-term loans

(97)

(2,878)

    Treasury stock acquired

(41)

(1,201)

    Others

(28)

(812)

Net cash used in financing activities

(297)

(8,796)

 
Effect of exchange rate changes on cash and cash equivalents

(33)

(971)

Net increase in cash and cash equivalents

148

4,380

 
Cash and cash equivalents at beginning of period

3,223

95,492

 
Cash and cash equivalents at end of period

3,371

99,872

 

 

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, 2020, the three-month period ending March 31, 2020, and the equivalent three-month period that ended June 30, 2019. For all 2Q20 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the June 30, 2020 exchange rate of NT$ 29.63 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.


Contact:

Michael Lin / David Wong
UMC, Investor Relations
+ 886-2-2658-9168, ext. 16900
jinhong_lin@umc.com
david_wong@umc.com