Analysis of Revenue (Note 3)

The percentage of revenue from the Asia Pacific and Europe regions increased to 35% and 13%, respectively. This was mainly due to the stronger demand for communication chips.

    Note 3: Revenue in this section represents wafer sales



    Revenue Breakdown by Region

    Region                 2Q08     1Q08     4Q07     3Q07     2Q07

    North America           50%      58%      51%      49%      47%
    Asia Pacific            35%      29%      37%      40%      43%
    Europe                  13%      11%      10%       9%       8%
    Japan                    2%       2%       2%       2%       2%

The percentage of revenue from advanced 90nm business increased to 31%, compared to 30% in 1Q08, mainly due to stronger demand for wireless communication chips. The percentage of revenue from 90nm and below was 36% in 2Q08.

    Revenue Breakdown by Geometry

    Geometry               2Q08     1Q08     4Q07     3Q07     2Q07

    65nm                     5%       7%       3%       1%       --
    90nm                    31%      30%      23%      24%      17%
    90nm< x <=0.13um        21%      21%      22%      23%      25%
    0.13um< x <=0.18um      20%      22%      27%      26%      29%
    0.18um< x <=0.35um      18%      14%      18%      20%      22%
    0.5um and above          5%       6%       7%       6%       7%

The percentage of revenue from fabless customers increased to 71% in 2Q08 from 70% in 1Q08.

    Revenue Breakdown by Customer Type

    Customer Type       2Q08    1Q08     4Q07     3Q07     2Q07

    Fabless              71%     70%      76%      73%      75%
    IDM                  29%     30%      24%      27%      25%
    System                0%      0%       0%       0%       0%

Revenue from the computer segment decreased to 17% of total revenue in 2Q08 due to weaker demand for PC chipsets, graphics and DVD-ROM.

    Revenue Breakdown by Application (1)
    Application                 2Q08     1Q08     4Q07     3Q07     2Q07

    Computer                     17%      21%      19%      18%      17%
    Communication                58%      56%      56%      57%      55%
    Consumer                     22%      21%      23%      23%      26%
    Memory                        1%       1%       1%       1%       1%
    Others                        2%       1%       1%       1%       1%

    (1): Computer consists of ICs such as HDD controllers, DVD-ROM/CD-
         ROM drives ICs, LCD drivers, graphic processors, and PDAs.
         Communication consists of xDSL, DSP, WLAN, LAN controllers,
         handset components, caller ID devices, etc. Consumer consists
         of ICs used for DVD players, game consoles, digital cameras,
         smart cards, toys, etc. Memory consists of DRAM, SRAM, Flash,
         EPROM, ROM, and EEPROM.



    Blended Average Selling Price Trend
    The blended average selling price (ASP) decreased by 2% during 2Q08.
    (To view ASP trend, visit
    
www.umc.com/english/investors/2Q08_ASP_trend.asp )

    Shipment and Utilization Rate (Note 4)

875 thousand 8-inch equivalent wafers were shipped in 2Q08, a 8.4% increase from 807 thousand 8-inch equivalents shipped in the previous quarter. Overall utilization rate for the quarter was 85%.

    Wafer Shipments
                           2Q08    1Q08     4Q07      3Q07     2Q07
    Wafer Shipments
    ('000 8-inch eq.)       875     807      921     1,017      804

    Note 4: Utilization Rate = Quarterly Wafer Out / Quarterly Capacity



    Quarterly Capacity Utilization  Rate

                                                      2Q08          1Q08          4Q07          3Q07          2Q07
        Utilization  Rate                85%            73%            86%            93%            76%
        Total  Capacity
        ('000  8-inch  eq.)          1,107        1,100        1,100        1,095        1,070



        Capacity  (Note  5)