Q2 gross margin rose to 31.3%; margin momentum expected to continue into Q3

Second Quarter 2021 Overview¹:

Revenue: NT$50.91 billion (US$1.83 billion)
Gross margin: 31.3%; Operating margin: 22.2%
Revenue from 22/28nm: 20%
Capacity utilization rate: 100%+
Net income attributable to shareholders of the parent: NT$11.94 billion (US$429 million)
Earnings per share: NT$0.98; earnings per ADS: US$0.176

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 2021.

Second quarter consolidated revenue was NT$50.91 billion, increasing 8.1% QoQ from NT$47.10 billion in 1Q21. Compared to a year ago, 2Q21 revenue was up 14.7% YoY from NT$44.39 billion in 2Q20. Consolidated gross margin for 2Q21 was 31.3%. Net income attributable to the shareholders of the parent was NT$11.94 billion, with earnings per ordinary share of NT$0.98.

Jason Wang, co-president of UMC, said, "Strong demand fueled by 5G adoption and digital transformation underpinned our strong performance in the second quarter. Our manufacturing facilities exceeded 100% utilization while overall wafer shipments rose 3.0% QoQ to 2.44 million 8-inch equivalents. Revenue from 28nm technologies continued to grow sequentially, fueled by applications incorporated into 4G/5G smartphones, Solid State Drive, and Digital TV. During the quarter, we continued our product optimization and cost reduction efforts, lifting our gross margin. We expect the strength of structural demand to sustain and support the continuous improvement of blended ASP. As a result, the Company's gross profit in the first half of 2021 surged 54.5% YoY to NT$28.40 billion."

Co-president Wang continued, "Looking ahead, we anticipate demand to stay robust in the third quarter driven by megatrends such as 5G and EV. Supply tightness is expected to continue, across 8" and 12" facilities. We foresee margin momentum to continue into the third quarter, supported by further product mix optimization, cost reduction efforts and productivity enhancements. In addition, we expect the adoption rate of our 22nm technologies will continue to gain traction, reflected by a pickup in customers' 22nm product tape outs in connectivity and display applications. We will also focus on further strengthening our leadership position in a number of specialty technologies such as OLED display driver, RFSOI and imaging applications. Moreover, we continue to take important steps to enhance our corporate governance and lead sustainability efforts in our industry. Earlier this month, five independent directors were newly elected to the Company's Board of Directors, representing more than 50% of the board seats and including two female directors. The Company also announced its pledge to reach net zero carbon emissions by 2050, as well as our commitment to work alongside our partners to reduce carbon intensiveness and raise renewable energy usage in our supply chain. UMC is dedicated to enhance our corporate governance as well as addressing climate change to build a sustainable environment."

Summary of Operating Results

Operating Results
(Amount: NT$ million)	2Q21	1Q21	QoQ % change	2Q20	YoY % change
Operating Revenues	50,908	47,097	8.1	44,386	14.7
Gross Profit	15,908	12,494	27.3	10,257	55.1
Operating Expenses	(6,201)	(5,932)	4.5	(5,677)	9.2
Net Other Operating Income and Expenses	1,606	1,060	51.6	1,266	26.9
Operating Income	11,313	7,622	48.4	5,846	93.5
Net Non-Operating Income and Expenses	1,881	3,361	(44.0)	818	129.9
Net Income Attributable to Shareholders of the Parent	11,943	10,428	14.5	6,681	78.8
EPS (NT$ per share)	0.98	0.85		0.55
(US$ per ADS)	0.176	0.153		0.099

Operating revenues in 2Q21 increased 8.1% to NT$50.91 billion partly reflected by slightly higher wafer shipment and the enhancement in blended product mix. Revenue contribution from 40nm and below technologies was 38%. Gross profit grew 27.3% QoQ to NT$15.91 billion, or 31.3% of revenue. Operating expenses increased 4.5% to NT$6.20 billion. Net other operating income increased to NT$1.61 billion. Net non-operating income was NT$1.88 billion. Net income attributable to shareholders of the parent increased to NT$11.94 billion.

Earnings per ordinary share for the quarter was NT$0.98. Earnings per ADS was US$0.176. The basic weighted average number of outstanding shares in 2Q21 was 12,206,292,756, compared with 12,206,292,756 shares in 1Q21 and 12,193,149,897 shares in 2Q20. The diluted weighted average number of outstanding shares was 12,382,592,798 in 2Q21, compared with 12,381,821,873 shares in 1Q21 and 12,262,774,432 shares in 2Q20. The fully diluted shares counted on June 30, 2021 were approximately 12,398,671,000.

Detailed Financials Section

COGS & Expenses
(Amount: NT$ million)	2Q21	1Q21	QoQ % change	2Q20	YoY % change
Operating Revenues	50,908	47,097	8.1	44,386	14.7
COGS	(35,000)	(34,603)	1.1	(34,129)	2.6
Depreciation	(10,187)	(10,412)	(2.2)	(10,544)	(3.4)
Other Mfg. Costs	(24,813)	(24,191)	2.6	(23,585)	5.2
Gross Profit	15,908	12,494	27.3	10,257	55.1
Gross Margin (%)	31.3%	26.5%		23.1%
Operating Expenses	(6,201)	(5,932)	4.5	(5,677)	9.2
G&A	(1,901)	(1,806)	5.2	(1,537)	23.5
Sales & Marketing	(1,131)	(1,089)	3.8	(929)	21.8
R&D	(3,168)	(3,049)	3.9	(3,203)	(1.1)
Expected Credit Impairment Gain (Loss)	(1)	12	-	(8)	(81.3)
Net Other Operating Income & Expenses	1,606	1,060	51.6	1,266	26.9
Operating Income	11,313	7,622	48.4	5,846	93.5

Operating revenues grew to NT$50.91 billion. COGS remained flattish at NT$35.00 billion, as the 2.2% sequential decline in depreciation was offset the 2.6% increase in other manufacturing costs primarily due to higher wafer shipments in 2Q21. Gross profit increased 27.3% QoQ to NT$15.91 billion, reflecting the uptick in overall average selling price across 8" and 12" wafer shipments. Operating expenses increased 4.5% QoQ to NT$6.20 billion, as G&A grew 5.2% sequentially to NT$1.90 billion while R&D increased 3.9% QoQ to NT$3.17 billion, representing 6.2% of revenue. Sales & Marketing was up 3.8% QoQ to NT$1.13 billion. Net other operating income was NT$1.61 billion. In 2Q21, operating income expanded 48.4% QoQ to NT$11.31 billion.

Non-Operating Income and Expenses
(Amount: NT$ million)	2Q21	1Q21	2Q20
Non-Operating Income and Expenses	1,881	3,361	818
Net Interest Income and Expenses	(310)	(272)	(307)
Net Investment Gain and Loss	2,276	3,530	1,643
Exchange Gain and Loss	(84)	93	(411)
Other Gain and Loss	(1)	10	(107)

Net non-operating income in 2Q21 was NT$1.88 billion, mainly resulting from NT$2.28 billion in net investment gain, offset by a NT$310 million in net interest expense and a NT$84 million in exchange loss.

Cash Flow Summary
(Amount: NT$ million)	For the 3-Month Period Ended Jun. 30, 2021	For the 3-Month Period Ended Mar. 31, 2021
Cash Flow from Operating Activities	23,123	18,281
Net income before tax	13,194	10,983
Depreciation & Amortization	11,671	11,833
Share of profit of associates and joint ventures	(881)	(1,767)
Income tax paid	(300)	(51)
Changes in working capital & others	(561)	(2,717)
Cash Flow from Investing Activities	(18,482)	(7,120)
Acquisition of PP&E	(8,520)	(7,352)
Acquisition of intangible assets	(835)	(619)
Increase in other financial assets	(10,893)	(8)
Others	1,766	859
Cash Flow from Financing Activities	13,238	2,580
Bank loans	(1,384)	2,368
Bonds Issued	9,600	-
Redemption of bonds	(2,000)	-
Increase in deposits-in	7,205	382
Others	(183)	(170)
Effect of Exchange Rate	(1,164)	(504)
Net Cash Flow	16,715	13,237
Beginning balance	107,285	94,048
Ending balance	124,000	107,285

In 2Q21, cash inflow from operating activities was NT$23.12 billion. Cash outflow from investing activities totaled NT$18.48 billion, which included NT$9.48 billion in capital expenditure, resulting in free cash flow of NT$13.64 billion. Cash inflow from financing activities was NT$13.24 billion, primarily from a NT$9.60 billion from the issuance of bonds and a NT$7.21 billion in deposit which included the capacity deposit from 12A P6 agreement, offset by a NT$2.00 billion in the redemption of bonds and a NT$1.38 billion payment in the bank loans. Net cash inflow in 2Q21 was NT$16.72 billion. Over the next 12 months, the company expects to repay NT$8.06 billion in bank loans.

Current Assets
(Amount: NT$ billion)	2Q21	1Q21	2Q20
Cash and Cash Equivalents	124.00	107.29	99.87
Notes & Accounts Receivable	30.11	29.24	27.26
Days Sales Outstanding	53	55	57
Inventories, net	22.44	22.23	23.34
Days of Inventory	58	59	61
Total Current Assets	207.83	179.08	167.96

Cash and cash equivalents increased to NT$124.00 billion. Days of inventory decreased by a day to 58 days.

Liabilities
(Amount: NT$ billion)	2Q21	1Q21	2Q20
Total Current Liabilities	85.00	78.53	65.11
Notes & Accounts Payable	8.42	8.26	8.56
Short-Term Credit / Bonds	19.65	37.28	17.32
Payables on Equipment	6.67	5.29	3.22
Dividends Payable	19.88	-	9.77
Other	30.38	27.70	26.24
Long-Term Credit / Bonds	50.97	27.70	53.50
Long-Term Investment Liabilities	20.61	20.66	19.69
Total Liabilities	181.49	144.59	158.34
Debt to Equity	76%	58%	76%

Current liabilities increased to NT$85.00 billion, which included a NT$19.88 billion in dividends payable. Long-term credit/bonds increased to NT$50.97 billion. Total liabilities increased to NT$181.49 billion, leading to a debt to equity ratio of 76%.

Analysis of Revenue²

Revenue Breakdown by Region
Region	2Q21	1Q21	4Q20	3Q20	2Q20
North America	22%	23%	29%	30%	31%
Asia Pacific	63%	63%	61%	57%	55%
Europe	8%	8%	5%	6%	5%
Japan	7%	6%	5%	7%	9%

Revenue from Asia-Pacific remained unchanged at 63% as business from North America declined to 22% of sales. Business from Europe was 8% while contribution from Japan increased to 7%.

Revenue Breakdown by Geometry
Geometry	2Q21	1Q21	4Q20	3Q20	2Q20
14nm and below	0%	0%	0%	0%	0%
14nm<x<=28nm	20%	20%	18%	14%	13%
28nm<x<=40nm	18%	20%	22%	23%	23%
40nm<x<=65nm	19%	18%	18%	19%	16%
65nm<x<=90nm	9%	8%	8%	10%	13%
90nm<x<=0.13um	11%	11%	11%	11%	11%
0.13um<x<=0.18um	13%	13%	13%	13%	13%
0.18um<x<=0.35um	8%	8%	8%	8%	8%
0.5um and above	2%	2%	2%	2%	3%

Revenue contribution from 22/28nm stayed at 20% of the wafer revenue, while 40nm contribution declined to 18% of sales.

Revenue Breakdown by Customer Type
Customer Type	2Q21	1Q21	4Q20	3Q20	2Q20
Fabless	84%	86%	87%	88%	88%
IDM	16%	14%	13%	12%	12%

Revenue from fabless customers decreased to 84% of revenue.

Revenue Breakdown by Application ⁽¹⁾
Application	2Q21	1Q21	4Q20	3Q20	2Q20
Computer	17%	16%	16%	13%	14%
Communication	47%	46%	49%	54%	51%
Consumer	26%	27%	25%	24%	24%
Others	10%	11%	10%	9%	11%

Revenue from the communication segment increased to 47%, while business from computer applications increased to 17%. Business from consumer applications declined to 26% as other segments accounted for 10% of revenue.

(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 2Q21.

(To view blended ASP trend, please click here for 2Q21 ASP)

Shipment and Utilization Rate³

Wafer Shipments
	2Q21	1Q21	4Q20	3Q20	2Q20
Wafer Shipments (8" K equivalents)	2,440	2,372	2,293	2,254	2,218

Quarterly Capacity Utilization Rate
	2Q21	1Q21	4Q20	3Q20	2Q20
Utilization Rate	100%+	100%	99%	97%	98%
Total Capacity (8" K equivalents)	2,370	2,280	2,311	2,308	2,291

In 2Q21, wafer shipments increased 2.9% QoQ to 2,440K, while quarterly capacity grew to 2,370K. Overall utilization rate in 2Q21 exceeded 100%.

Capacity⁴

Total capacity in the second quarter expanded by 4% QoQ to 2,370K 8-inch equivalent wafers. Capacity is expected to slightly increase in the third quarter to 2,387K 8-inch equivalent wafers, mainly reflecting the capacity expansion at Fab 8F.

Annual Capacity in *thousands of wafers*							Quarterly Capacity in *thousands of wafers*
FAB		Geometry (um)	2020	2019	2018	2017	FAB	3Q21E	2Q21	1Q21	4Q20
WTK	6"	3.5 – 0.45	371	370	396	422	WTK	86	84	84	93
8A	8"	0.5 – 0.25	802	825	825	825	8A	190	190	186	201
8C	8"	0.35 – 0.11	452	436	383	357	8C	115	115	113	113
8D	8"	0.18 – 0.09	371	359	347	341	8D	95	95	94	93
8E	8"	0.5 – 0.15	449	426	418	418	8E	115	115	113	113
8F	8"	0.18 – 0.11	485	434	431	417	8F	137	122	120	122
8S	8"	0.18 – 0.11	373	372	372	347	8S	102	102	101	93
8N	8"	0.5 – 0.11	917	831	771	753	8N	230	230	226	230
12A	12"	0.13 – 0.014	1044	997	997	970	12A	271	271	257	261
12i	12"	0.13 – 0.040	628	595	555	537	12i	160	160	157	160
12X	12"	0.040 – 0.028	217	203	183	97	12X	74	74	59	57
12M	12"	0.090 – 0.040	391	98	-	-	12M	98	98	96	98
Total⁽¹⁾			9,188	8,148	7,673	7,304	Total	2,387	2,370	2,280	2,311
YoY Growth Rate			13%	6%	5%	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

Capital Expenditure by Year - in US$ billion
Year	2020	2019	2018	2017	2016
CAPEX	$ 1.0	$ 0.6	$ 0.7	$ 1.4	$ 2.8

2021 CAPEX Plan
8"	12"	Total
15%	85%	US$2.3 billion

CAPEX spending in 2Q21 was US$339 million. Full year 2021 CAPEX is budgeted at US$2.3 billion, which includes the company's collaborative Fab 12A P6 expansion plan with customers.

Third Quarter 2021 Outlook & Guidance

Quarter-over-Quarter Guidance:

Wafer Shipments: To increase by 1-2%
ASP in USD: To increase by approximately 6%
Gross Profit Margin: To be in the mid-30% range
Capacity Utilization: 100%
2021 CAPEX: US$2.3 billion

Recent Developments / Announcements

Jul 13, 2021	Cadence and UMC Collaborate on 22ULP/ULL Reference Flow Certification
Jun 1, 2021	UMC Pledges Net Zero Carbon Emissions by 2050
May 7, 2021	UMC Ranked Top 5% in Corporate Governance Evaluation for 7^th Consecutive Year
Apr 29, 2021	UMC Files Form 20-F for 2020 with US Securities and Exchange Commission

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

Conference Call / Webcast Announcement

Wednesday, July 28, 2021

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 2Q21 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 800,000 8-inch equivalent wafers per month. The company employs approximately 19,500 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 2021; 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 2021 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, 2021
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)


	June 30, 2021
	US$	NT$	%
Assets
Current assets
Cash and cash equivalents	4,451	124,000	29.4%
Accounts receivable, net	1,081	30,113	7.2%
Inventories, net	805	22,439	5.3%
Other current assets	1,123	31,281	7.4%
Total current assets	7,460	207,833	49.3%

Non-current assets
Funds and investments	2,389	66,570	15.8%
Property, plant and equipment	4,450	123,983	29.4%
Right-of-use assets	266	7,413	1.8%
Other non-current assets	571	15,878	3.7%
Total non-current assets	7,676	213,844	50.7%
Total assets	15,136	421,677	100.0%

Liabilities
Current liabilities
Short-term loans	193	5,386	1.3%
Payables	1,319	36,753	8.7%
Dividends payable	713	19,876	4.7%
Current portion of long-term liabilities	512	14,263	3.4%
Other current liabilities	314	8,726	2.0%
Total current liabilities	3,051	85,004	20.1%

Non-current liabilities
Bonds payable	721	20,082	4.8%
Long-term loans	1,109	30,885	7.3%
Lease liabilities, noncurrent	171	4,771	1.1%
Other non-current liabilities	1,462	40,743	9.7%
Total non-current liabilities	3,463	96,481	22.9%
Total liabilities	6,514	181,485	43.0%

Equity
Equity attributable to the parent company
Capital	4,459	124,233	29.5%
Additional paid-in capital	1,550	43,182	10.2%
Retained earnings and other components of equity	2,613	72,791	17.3%
Treasury stock	(4)	(120)	(0.0%)
Total equity attributable to the parent company	8,618	240,086	57.0%
Non-controlling interests	4	106	0.0%
Total equity	8,622	240,192	57.0%
Total liabilities and equity	15,136	421,677	100.0%







Note：New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2021 exchange rate of NT $27.86 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, 2021		June 30, 2020		Chg.	June 30, 2021		March 31, 2021		Chg.
	US$	NT$	US$	NT$	%	US$	NT$	US$	NT$	%
Operating revenues	1,827	50,908	1,593	44,386	14.7%	1,827	50,908	1,690	47,097	8.1%
Operating costs	(1,256)	(35,000)	(1,225)	(34,129)	2.6%	(1,256)	(35,000)	(1,242)	(34,603)	1.1%
Gross profit	571	15,908	368	10,257	55.1%	571	15,908	448	12,494	27.3%
	31.3%	31.3%	23.1%	23.1%		31.3%	31.3%	26.5%	26.5%
Operating expenses
- Sales and marketing expenses	(41)	(1,131)	(33)	(929)	21.8%	(41)	(1,131)	(39)	(1,089)	3.8%
- General and administrative expenses	(68)	(1,901)	(56)	(1,537)	23.5%	(68)	(1,901)	(64)	(1,806)	5.2%
- Research and development expenses	(114)	(3,168)	(115)	(3,203)	(1.1%)	(114)	(3,168)	(109)	(3,049)	3.9%
- Expected credit impairment gain (loss)	(0)	(1)	(0)	(8)	(81.3%)	(0)	(1)	0	12	-
Subtotal	(223)	(6,201)	(204)	(5,677)	9.2%	(223)	(6,201)	(212)	(5,932)	4.5%
Net other operating income and expenses	58	1,606	46	1,266	26.9%	58	1,606	38	1,060	51.6%
Operating income	406	11,313	210	5,846	93.5%	406	11,313	274	7,622	48.4%
	22.2%	22.2%	13.2%	13.2%		22.2%	22.2%	16.2%	16.2%

Net non-operating income and expenses	68	1,881	29	818	129.9%	68	1,881	120	3,361	(44.0%)
Income from continuing operations before income tax	474	13,194	239	6,664	98.0%	474	13,194	394	10,983	20.1%
	25.9%	25.9%	15.0%	15.0%		25.9%	25.9%	23.3%	23.3%

Income tax expenses	(48)	(1,327)	(22)	(613)	116.6%	(48)	(1,327)	(39)	(1,094)	21.3%
Net income	426	11,867	217	6,051	96.1%	426	11,867	355	9,889	20.0%
	23.3%	23.3%	13.6%	13.6%		23.3%	23.3%	21.0%	21.0%

Other comprehensive income (loss)	(70)	(1,935)	114	3,178	-	(70)	(1,935)	128	3,556	-

Total comprehensive income (loss)	356	9,932	331	9,229	7.6%	356	9,932	483	13,445	(26.1%)

Net income attributable to:
Shareholders of the parent	429	11,943	240	6,681	78.8%	429	11,943	374	10,428	14.5%
Non-controlling interests	(3)	(76)	(23)	(630)	(87.9%)	(3)	(76)	(19)	(539)	(85.8%)

Comprehensive income (loss) attributable to:
Shareholders of the parent	359	10,008	354	9,859	1.5%	359	10,008	502	13,984	(28.4%)
Non-controlling interests	(3)	(76)	(23)	(630)	(87.9%)	(3)	(76)	(19)	(539)	(85.8%)

Earnings per share-basic	0.035	0.98	0.020	0.55		0.035	0.98	0.031	0.85
Earnings per ADS ⁽²⁾	0.176	4.90	0.099	2.75		0.176	4.90	0.153	4.25
Weighted average number of shares
outstanding (in millions)		12,206		12,193			12,206		12,206


Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2021 exchange rate of NT $27.86 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, 2021			June 30, 2021
	US$	NT$	%	US$	NT$	%
Operating revenues	1,827	50,908	100.0%	3,518	98,005	100.0%
Operating costs	(1,256)	(35,000)	(68.7%)	(2,499)	(69,603)	(71.0%)
Gross profit	571	15,908	31.3%	1,019	28,402	29.0%


Operating expenses
- Sales and marketing expenses	(41)	(1,131)	(2.2%)	(80)	(2,220)	(2.3%)
- General and administrative expenses	(68)	(1,901)	(3.8%)	(132)	(3,707)	(3.8%)
- Research and development expenses	(114)	(3,168)	(6.2%)	(223)	(6,217)	(6.3%)
- Expected credit impairment gain (loss)	(0)	(1)	(0.0%)	0	11	0.0%
Subtotal	(223)	(6,201)	(12.2%)	(435)	(12,133)	(12.4%)
Net other operating income and expenses	58	1,606	3.1%	96	2,666	2.7%
Operating income	406	11,313	22.2%	680	18,935	19.3%

Net non-operating income and expenses	68	1,881	3.7%	188	5,242	5.4%
Income from continuing operations before income tax	474	13,194	25.9%	868	24,177	24.7%


Income tax expense	(48)	(1,327)	(2.6%)	(87)	(2,422)	(2.5%)
Net income	426	11,867	23.3%	781	21,755	22.2%

Other comprehensive income (loss)	(70)	(1,935)	(3.8%)	58	1,622	1.7%

Total comprehensive income (loss)	356	9,932	19.5%	839	23,377	23.9%

Net income attributable to:
Shareholders of the parent	429	11,943	23.5%	803	22,371	22.8%
Non-controlling interests	(3)	(76)	(0.2%)	(22)	(616)	(0.6%)

Comprehensive income (loss) attributable to:
Shareholders of the parent	359	10,008	19.7%	861	23,992	24.5%
Non-controlling interests	(3)	(76)	(0.2%)	(22)	(615)	(0.6%)

Earnings per share-basic	0.035	0.98		0.066	1.83
Earnings per ADS ⁽²⁾	0.176	4.90		0.328	9.15

Weighted average number of shares outstanding (in millions)		12,206			12,206

Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2021 exchange rate of NT $27.86 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, 2021
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

	US$	NT$
Cash flows from operating activities :
Net income before tax	868	24,177
Depreciation & Amortization	844	23,504
Share of profit of associates and joint ventures	(95)	(2,648)
Changes in working capital & others	(131)	(3,629)
Net cash provided by operating activities	1,486	41,404

Cash flows from investing activities :
Acquisition of property, plant and equipment	(570)	(15,872)
Acquisition of intangible assets	(52)	(1,454)
Increase in other financial assets	(391)	(10,901)
Others	94	2,625
Net cash used in investing activities	(919)	(25,602)

Cash flows from financing activities :
Decrease in short-term loans	(198)	(5,509)
Proceeds from bonds issued	345	9,600
Redemption of bonds	(72)	(2,000)
Proceeds from long-term loans	500	13,943
Repayments of long-term loans	(267)	(7,450)
Increase in guarantee deposits	272	7,587
Others	(12)	(353)
Net cash provided by financing activities	568	15,818

Effect of exchange rate changes on cash and cash equivalents	(60)	(1,668)
Net increase in cash and cash equivalents	1,075	29,952

Cash and cash equivalents at beginning of period	3,376	94,048

Cash and cash equivalents at end of period	4,451	124,000



Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2021 exchange rate of NT $27.86 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, 2021, the three-month period ending March 31, 2021, and the equivalent three-month period that ended June 30, 2020. For all 2Q21 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the June 30, 2021 exchange rate of NT$ 27.86 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 2021 Results