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
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
Operating Results |
|||||||||||||||
(Amount: NT$ million) |
2Q23 |
|
1Q23 |
|
QoQ %
|
2Q22 |
|
YoY %
|
|||||||
Operating Revenues |
56,296 |
|
54,209 |
|
3.8 |
|
72,055 |
|
(21.9 |
) |
|||||
Gross Profit |
20,252 |
|
19,224 |
|
5.3 |
|
33,472 |
|
(39.5 |
) |
|||||
Operating Expenses |
(5,718 |
) |
(5,780 |
) |
(1.1 |
) |
(6,706 |
) |
(14.7 |
) |
|||||
Net Other Operating Income and Expenses |
1,141 |
|
1,037 |
|
10.0 |
|
1,398 |
|
(18.4 |
) |
|||||
Operating Income |
15,675 |
|
14,481 |
|
8.2 |
|
28,164 |
|
(44.3 |
) |
|||||
Net Non-Operating Income and Expenses |
2,810 |
|
4,647 |
|
(39.5 |
) |
(2,586 |
) |
- |
|
|||||
Net Income Attributable to Shareholders of the Parent |
15,641 |
|
16,183 |
|
(3.3 |
) |
21,327 |
|
(26.7 |
) |
|||||
EPS (NT$ per share) |
1.27 |
|
1.31 |
|
|
1.74 |
|
|
|||||||
(US$ per ADS) |
0.204 |
|
0.210 |
|
|
0.279 |
|
|
|||||||
Second quarter operating revenues increased by 3.8% sequentially to NT$56.30 billion as a better product mix from wafer shipments and a favorable foreign exchange rate slightly improved financial results amid continuing semiconductor inventory correction. Revenue contribution from 40nm and below technologies remained unchanged at 41% of wafer revenue. Gross profit grew 5.3% QoQ to NT$20.25 billion, or 36.0% of revenue. Operating expenses declined 1.1% QoQ to NT$5.72 billion. Net other operating income increased to NT$1.14 billion. Net non-operating income totaled NT$2.81 billion mainly reflecting the mark to market securities. Net income attributable to shareholders of the parent amounted to NT$15.64 billion.
Earnings per ordinary share for the quarter was NT$1.27. Earnings per ADS was US$0.204. The basic weighted average number of shares outstanding in 2Q23 was 12,348,986,144, compared with 12,348,880,384 shares in 1Q23 and 12,283,479,334 shares in 2Q22. The diluted weighted average number of shares outstanding was 12,526,182,161 in 2Q23, compared with 12,597,236,266 shares in 1Q23 and 12,553,373,552 shares in 2Q22. The fully diluted shares counted on June 30, 2023 were approximately 12,526,495,000.
Detailed Financials Section
Operating revenues grew slightly to NT$56.30 billion. COGS increased 3.0% to NT$36.04 billion. Gross profit grew 5.3% QoQ to NT$20.25 billion partly due to a better product mix. Operating expenses declined to NT$5.72 billion, as Sales & Marketing and G&A fell 24.6% and 18.4% respectively, while R&D increased 19.9% sequentially to NT$3.32 billion, representing 5.9% of revenue. Net other operating income was NT$1.14 billion. In 2Q23, operating income increased 8.2% QoQ to NT$15.68 billion.
COGS & Expenses |
||||||||||||||
(Amount: NT$ million) |
2Q23 |
|
1Q23 |
|
QoQ %
|
2Q22 |
|
YoY %
|
||||||
Operating Revenues |
56,296 |
|
54,209 |
|
3.8 |
|
72,055 |
|
(21.9 |
) |
||||
COGS |
(36,044 |
) |
(34,985 |
) |
3.0 |
|
(38,583 |
) |
(6.6 |
) |
||||
Depreciation |
(8,467 |
) |
(8,439 |
) |
0.3 |
|
(9,616 |
) |
(11.9 |
) |
||||
Other Mfg. Costs |
(27,577 |
) |
(26,546 |
) |
3.9 |
|
(28,967 |
) |
(4.8 |
) |
||||
Gross Profit |
20,252 |
|
19,224 |
|
5.3 |
|
33,472 |
|
(39.5 |
) |
||||
Gross Margin (%) |
36.0 |
% |
35.5 |
% |
|
46.5 |
% |
|
||||||
Operating Expenses |
(5,718 |
) |
(5,780 |
) |
(1.1 |
) |
(6,706 |
) |
(14.7 |
) |
||||
G&A |
(1,715 |
) |
(2,102 |
) |
(18.4 |
) |
(2,579 |
) |
(33.5 |
) |
||||
Sales & Marketing |
(716 |
) |
(950 |
) |
(24.6 |
) |
(915 |
) |
(21.7 |
) |
||||
R&D |
(3,317 |
) |
(2,767 |
) |
19.9 |
|
(3,209 |
) |
3.4 |
|
||||
Expected Credit
|
30 |
|
39 |
|
(21.6 |
) |
(3 |
) |
- |
|
||||
Net Other Operating
|
1,141 |
|
1,037 |
|
10.0 |
|
1,398 |
|
(18.4 |
) |
||||
Operating Income |
15,675 |
|
14,481 |
|
8.2 |
|
28,164 |
|
(44.3 |
) |
||||
Net non-operating income in 2Q23 was NT$2.81 billion, primarily reflecting the NT$1.04 billion in net investment gain, the NT$0.97 billion in net interest income and the NT$0.80 billion in exchange gain.
Non-Operating Income and Expenses |
|||||||||
(Amount: NT$ million) |
2Q23 |
|
1Q23 |
|
2Q22 |
|
|||
Non-Operating Income and Expenses |
2,810 |
|
4,647 |
|
(2,586 |
) |
|||
Net Interest Income and Expenses |
974 |
|
908 |
|
(163 |
) |
|||
Net Investment Gain and Loss |
1,042 |
|
3,987 |
|
(3,675 |
) |
|||
Exchange Gain and Loss |
799 |
|
(239 |
) |
1,361 |
|
|||
Other Gain and Loss |
(5 |
) |
(9 |
) |
(109 |
) |
|||
In 2Q23, cash inflow from operating activities was NT$13.76 billion. Cash outflow from investing activities amounted to NT$23.67 billion, which included NT$24.99 billion in capital expenditure, resulting in free cash outflow of NT$11.23 billion. Cash inflow from financing was NT$1.06 billion, primarily from a NT$0.94 billion in bank loans and a NT$0.29 billion in the increase in deposits-in. Net cash outflow in 2Q23 totaled NT$8.74 billion. Over the next 12 months, the company expects to repay NT$1.13 billion in bank loans.
| Cash Flow Summary | ||||
(Amount: NT$ million) |
For the 3-Month
|
For the 3-Month
|
||
Cash Flow from Operating Activities |
13,760 |
|
26,964 |
|
Net income before tax |
18,485 |
|
19,128 |
|
Depreciation & Amortization |
9,931 |
|
9,903 |
|
Share of profit of associates and joint ventures |
(726 |
) |
(3,248 |
) |
Income tax paid |
(11,845 |
) |
(2,936 |
) |
Changes in working capital & others |
(2,085 |
) |
4,117 |
|
Cash Flow from Investing Activities |
(23,667 |
) |
(29,586 |
) |
Decrease in financial assets measured
|
60 |
|
598 |
|
Acquisition of PP&E |
(24,139 |
) |
(29,756 |
) |
Acquisition of intangible assets |
(684 |
) |
(528 |
) |
Others |
1,096 |
|
100 |
|
Cash Flow from Financing Activities |
1,061 |
|
1,347 |
|
Bank loans |
939 |
|
(485 |
) |
Increase in deposits-in |
287 |
|
1,991 |
|
Others |
(165 |
) |
(159 |
) |
Effect of Exchange Rate |
109 |
|
(710 |
) |
Net Cash Flow |
(8,737 |
) |
(1,985 |
) |
Beginning balance |
171,834 |
|
173,819 |
|
Ending balance |
163,097 |
|
171,834 |
|
Cash and cash equivalents slightly decreased to NT$163.10 billion. Days of inventory increased by 2 days to 85 days.
Current Assets |
||||||
(Amount: NT$ billion) |
2Q23 |
1Q23 |
2Q22 |
|||
Cash and Cash Equivalents |
163.10 |
171.83 |
183.72 |
|||
Accounts Receivable |
30.62 |
27.07 |
42.88 |
|||
Days Sales Outstanding |
47 |
54 |
51 |
|||
Inventories, net |
34.55 |
32.68 |
27.34 |
|||
Days of Inventory |
85 |
83 |
62 |
|||
Total Current Assets |
239.03 |
241.97 |
265.78 |
|||
Current liabilities increased to NT$142.98 billion partly due to the NT$45.02 in dividends payable. Long-term credit/bonds decreased to NT$36.06 billion. Total liabilities increased to NT$226.31 billion, leading to a debt to equity ratio of 69%.
Liabilities |
||||||
(Amount: NT$ billion) |
2Q23 |
1Q23 |
2Q22 |
|||
Total Current Liabilities |
142.98 |
105.89 |
131.81 |
|||
Accounts Payable |
8.83 |
9.21 |
9.95 |
|||
Short-Term Credit / Bonds |
11.59 |
9.77 |
13.22 |
|||
Payables on Equipment |
13.01 |
18.44 |
11.60 |
|||
Dividends Payable |
45.02 |
- |
- |
|||
Other |
64.53 |
68.47 |
97.04 |
|||
Long-Term Credit / Bonds |
36.06 |
37.30 |
45.70 |
|||
Long-Term Investment Liabilities |
- |
4.26 |
8.50 |
|||
Total Liabilities |
226.31 |
194.08 |
216.51 |
|||
Debt to Equity |
69% |
55% |
76% |
|||
Analysis of Revenue2
Revenue from Asia-Pacific grew to 56% while business from North America declined to 27% of sales. Business from Europe increased to 12% while contribution from Japan was 5%.
Revenue Breakdown by Region |
||||||||||
Region |
2Q23 |
1Q23 |
4Q22 |
3Q22 |
2Q22 |
|||||
North America |
27% |
31% |
30% |
23% |
22% |
|||||
Asia Pacific |
56% |
50% |
54% |
62% |
65% |
|||||
Europe |
12% |
11% |
9% |
9% |
8% |
|||||
Japan |
5% |
8% |
7% |
6% |
5% |
|||||
Revenue contribution from 22/28nm increased to 29% of the wafer revenue, while 40nm contribution was 12% of sales.
Revenue Breakdown by Geometry |
||||||||||
Geometry |
2Q23 |
1Q23 |
4Q22 |
3Q22 |
2Q22 |
|||||
14nm and below |
0% |
0% |
0% |
0% |
0% |
|||||
14nm<x<=28nm |
29% |
26% |
28% |
25% |
22% |
|||||
28nm<x<=40nm |
12% |
15% |
17% |
17% |
18% |
|||||
40nm<x<=65nm |
23% |
19% |
17% |
18% |
19% |
|||||
65nm<x<=90nm |
10% |
10% |
9% |
8% |
7% |
|||||
90nm<x<=0.13um |
10% |
12% |
12% |
12% |
12% |
|||||
0.13um<x<=0.18um |
9% |
10% |
10% |
10% |
12% |
|||||
0.18um<x<=0.35um |
5% |
6% |
5% |
8% |
8% |
|||||
0.5um and above |
2% |
2% |
2% |
2% |
2% |
|||||
Revenue from fabless customers accounted for 79% of revenue.
Revenue Breakdown by Customer Type |
||||||||||
| Customer Type | 2Q23 |
1Q23 |
4Q22 |
3Q22 |
2Q22 |
|||||
| Fabless | 79% |
77% |
81% |
83% |
86% |
|||||
| IDM | 21% |
23% |
19% |
17% |
14% |
|||||
Revenue from the communication segment remained at 44%, while business from computer applications stayed unchanged at 9%. Business from consumer applications was 26% as other segments accounted for 21% of revenue.
Revenue Breakdown by Application (1) |
||||||||||
Application |
2Q23 |
1Q23 |
4Q22 |
3Q22 |
2Q22 |
|||||
Computer |
9% |
9% |
12% |
14% |
16% |
|||||
Communication |
44% |
44% |
45% |
45% |
45% |
|||||
Consumer |
26% |
24% |
25% |
27% |
27% |
|||||
Others |
21% |
23% |
18% |
14% |
12% |
|||||
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 slightly in 2Q23.
(To view blended ASP trend, please click here for 2Q23 ASP)
Shipment and Utilization Rate3
Wafer shipments remained flat QoQ at 1,831K in the second quarter, while quarterly capacity was 2,626K. Overall utilization rate in 2Q23 was 71%.
Wafer Shipments |
||||||||||
|
2Q23 |
1Q23 |
4Q22 |
3Q22 |
2Q22 |
|||||
Wafer Shipments
|
1,831 |
1,826 |
2,213 |
2,597 |
2,622 |
|||||
Quarterly Capacity Utilization Rate |
||||||||||
|
2Q23 |
1Q23 |
4Q22 |
3Q22 |
2Q22 |
|||||
Utilization Rate |
71% |
70% |
90% |
100%+ |
100%+ |
|||||
Total Capacity
|
2,626 |
2,522 |
2,543 |
2,539 |
2,528 |
|||||
Capacity4
Total capacity in the second quarter increased to 2,626K 8-inch equivalent wafers. Capacity will grow in the third quarter of 2023 to 2,659K 8-inch equivalent wafers, primarily reflecting the 22/28nm capacity expansion at Fab 12A Phase 6.
Annual Capacity in
|
|
Quarterly Capacity in
|
||||||||||||||||||
FAB |
Geometry
|
2022 |
|
2021 |
|
2020 |
|
2019 |
|
|
FAB |
3Q23E |
2Q23 |
1Q23 |
4Q22 |
|||||
WTK |
6" |
5 – 0.15 |
335 |
|
329 |
|
371 |
|
370 |
|
|
WTK |
6" |
83 |
82 |
80 |
85 |
|||
8A |
8" |
3 – 0.11 |
765 |
|
755 |
|
802 |
|
825 |
|
|
8A |
8" |
207 |
207 |
189 |
192 |
|||
8C |
8" |
0.35 – 0.11 |
459 |
|
459 |
|
452 |
|
436 |
|
|
8C |
8" |
120 |
120 |
113 |
115 |
|||
8D |
8" |
0.18 – 0.09 |
410 |
|
380 |
|
371 |
|
359 |
|
|
8D |
8" |
111 |
109 |
101 |
103 |
|||
8E |
8" |
0.6 – 0.14 |
469 |
|
457 |
|
449 |
|
426 |
|
|
8E |
8" |
122 |
122 |
116 |
118 |
|||
8F |
8" |
0.18 – 0.11 |
550 |
|
514 |
|
485 |
|
434 |
|
|
8F |
8" |
145 |
145 |
136 |
138 |
|||
8S |
8" |
0.18 – 0.11 |
443 |
|
408 |
|
373 |
|
372 |
|
|
8S |
8" |
112 |
112 |
109 |
111 |
|||
8N |
8" |
0.5 – 0.11 |
952 |
|
917 |
|
917 |
|
831 |
|
|
8N |
8" |
250 |
248 |
244 |
245 |
|||
12A |
12" |
0.13 – 0.014 |
1,170 |
|
1,070 |
|
1,044 |
|
997 |
|
|
12A |
12" |
333 |
321 |
305 |
301 |
|||
12i |
12" |
0.13 – 0.040 |
655 |
|
641 |
|
628 |
|
595 |
|
|
12i |
12" |
164 |
164 |
162 |
164 |
|||
12X |
12" |
0.080 – 0.022 |
314 |
|
284 |
|
217 |
|
203 |
|
|
12X |
12" |
80 |
80 |
78 |
80 |
|||
12M |
12" |
0.13 – 0.040 |
436 |
|
395 |
|
391 |
|
98 |
|
|
12M |
12" |
110 |
110 |
108 |
110 |
|||
Total(1) |
10,031 |
|
9,453 |
|
9,188 |
|
8,148 |
|
|
Total |
2,659 |
2,626 |
2,522 |
2,543 |
||||||
YoY Growth Rate |
6 |
% |
3 |
% |
13 |
% |
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
CAPEX spending in 2Q23 totaled US$0.82 billion. 2023 cash-based CAPEX budget will be US$3.0 billion.
Capital Expenditure by Year - in US$ billion |
||||||||||
Year |
|
2022 |
|
2021 |
|
2020 |
|
2019 |
|
2018 |
CAPEX |
$ |
2.7 |
$ |
1.8 |
$ |
1.0 |
$ |
0.6 |
$ |
0.7 |
2023 CAPEX Plan |
||||||
8" |
12" |
Total |
||||
10 |
% |
90 |
% |
US$3.0 billion |
||
Third Quarter 2023 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Wafer Shipments: Will decline by approximately 3-4%
- ASP in USD: Will increase by 2%
- Gross Profit Margin: Rising costs will erode GM by low-single digit percentage point
- Capacity Utilization: mid-60% range
- 2023 CAPEX: US$3.0 billion
Recent Developments / Announcements
Please visit UMC's website for further details regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, July 26, 2023
Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM (London)
Dial-in numbers and Access Codes: |
|
|
Taiwan Number: |
02 3396 1191 |
|
Taiwan Toll Free: |
0080 185 4007 |
|
USA Toll Free: |
+1 866 212 5567 |
|
Other Areas: |
+886 2 3396 1191 |
|
|
|
|
Access Code: |
9509526# |
A live webcast and replay of the 2Q23 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 company. The company provides high quality IC fabrication services, focusing on logic and various specialty technologies to serve all major sectors of the electronics industry. UMC's comprehensive IC processing technologies and manufacturing solutions include logic/mixed-signal, embedded high-voltage, embedded non-volatile-memory, RFSOI and BCD. UMC has total 12 fabs in production with combined capacity of more than 850,000 8-inch equivalent wafers per month, and all of them are certified with IATF 16949 automotive quality standard. Most of UMC's 12-inch and 8-inch fabs with its core R&D are located in Taiwan, with additional ones throughout Asia. UMC is headquartered in Hsinchu, Taiwan, plus local offices in China, United States, Europe, Japan, Korea and Singapore, with worldwide total 20,000 employees. For more information, please visit: https://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 2023; 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 "Third Quarter of 2023 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, 2023 | ||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | ||||||
June 30, 2023 |
||||||
US$ |
NT$ |
% |
||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | 5,239 |
163,097 |
29.5 |
% |
||
| Accounts receivable, net | 984 |
30,618 |
5.5 |
% |
||
| Inventories, net | 1,110 |
34,553 |
6.3 |
% |
||
| Other current assets | 346 |
10,765 |
1.9 |
% |
||
| Total current assets | 7,679 |
239,033 |
43.2 |
% |
||
| Non-current assets | ||||||
| Funds and investments | 2,263 |
70,455 |
12.7 |
% |
||
| Property, plant and equipment | 6,380 |
198,618 |
35.9 |
% |
||
| Right-of-use assets | 234 |
7,287 |
1.3 |
% |
||
| Other non-current assets | 1,215 |
37,803 |
6.9 |
% |
||
| Total non-current assets | 10,092 |
314,163 |
56.8 |
% |
||
| Total assets | 17,771 |
553,196 |
100.0 |
% |
||
| Liabilities | ||||||
| Current liabilities | ||||||
| Short-term loans | 5 |
170 |
0.0 |
% |
||
| Payables | 1,839 |
57,254 |
10.4 |
% |
||
| Dividends payable | 1,446 |
45,017 |
8.1 |
% |
||
| Current portion of long-term liabilities | 367 |
11,422 |
2.1 |
% |
||
| Other current liabilities | 936 |
29,115 |
5.2 |
% |
||
| Total current liabilities | 4,593 |
142,978 |
25.8 |
% |
||
| Non-current liabilities | ||||||
| Bonds payable | 578 |
17,988 |
3.2 |
% |
||
| Long-term loans | 581 |
18,074 |
3.3 |
% |
||
| Lease liabilities, noncurrent | 162 |
5,038 |
0.9 |
% |
||
| Other non-current liabilities | 1,356 |
42,230 |
7.7 |
% |
||
| Total non-current liabilities | 2,677 |
83,330 |
15.1 |
% |
||
| Total liabilities | 7,270 |
226,308 |
40.9 |
% |
||
| Equity | ||||||
| Equity attributable to the parent company | ||||||
| Capital | 4,016 |
125,031 |
22.6 |
% |
||
| Additional paid-in capital | 439 |
13,656 |
2.5 |
% |
||
| Retained earnings and other components of equity | 6,035 |
187,858 |
33.9 |
% |
||
| Total equity attributable to the parent company | 10,490 |
326,545 |
59.0 |
% |
||
| Non-controlling interests | 11 |
343 |
0.1 |
% |
||
| Total equity | 10,501 |
326,888 |
59.1 |
% |
||
| Total liabilities and equity | 17,771 |
553,196 |
100.0 |
% |
||
| Note：New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2023 exchange rate of NT $31.13 per U.S. Dollar. | ||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||||||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||||||||||||||||||||
| Except Per Share and Per ADS Data | |||||||||||||||||||||||||||||
| Year over Year Comparison | Quarter over Quarter Comparison | ||||||||||||||||||||||||||||
| Three-Month Period Ended | Three-Month Period Ended | ||||||||||||||||||||||||||||
| June 30, 2023 | June 30, 2022 | Chg. | June 30, 2023 | March 31, 2023 | Chg. | ||||||||||||||||||||||||
| US$ | NT$ | US$ | NT$ | % | US$ | NT$ | US$ | NT$ | % | ||||||||||||||||||||
| Operating revenues | 1,808 |
|
56,296 |
|
2,315 |
|
72,055 |
|
(21.9 |
%) |
1,808 |
|
56,296 |
|
1,741 |
|
54,209 |
|
3.8 |
% |
|||||||||
| Operating costs | (1,157 |
) |
(36,044 |
) |
(1,240 |
) |
(38,583 |
) |
(6.6 |
%) |
(1,157 |
) |
(36,044 |
) |
(1,123 |
) |
(34,985 |
) |
3.0 |
% |
|||||||||
| Gross profit | 651 |
|
20,252 |
|
1,075 |
|
33,472 |
|
(39.5 |
%) |
651 |
|
20,252 |
|
618 |
|
19,224 |
|
5.3 |
% |
|||||||||
36.0 |
% |
36.0 |
% |
46.5 |
% |
46.5 |
% |
36.0 |
% |
36.0 |
% |
35.5 |
% |
35.5 |
% |
||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||
| - Sales and marketing expenses | (23 |
) |
(716 |
) |
(29 |
) |
(915 |
) |
(21.7 |
%) |
(23 |
) |
(716 |
) |
(31 |
) |
(950 |
) |
(24.6 |
%) |
|||||||||
| - General and administrative expenses | (55 |
) |
(1,715 |
) |
(83 |
) |
(2,579 |
) |
(33.5 |
%) |
(55 |
) |
(1,715 |
) |
(67 |
) |
(2,102 |
) |
(18.4 |
%) |
|||||||||
| - Research and development expenses | (107 |
) |
(3,317 |
) |
(103 |
) |
(3,209 |
) |
3.4 |
% |
(107 |
) |
(3,317 |
) |
(89 |
) |
(2,767 |
) |
19.9 |
% |
|||||||||
| - Expected credit impairment gain (loss) | 1 |
|
30 |
|
(0 |
) |
(3 |
) |
- |
|
1 |
|
30 |
|
1 |
|
39 |
|
(21.6 |
%) |
|||||||||
| Subtotal | (184 |
) |
(5,718 |
) |
(215 |
) |
(6,706 |
) |
(14.7 |
%) |
(184 |
) |
(5,718 |
) |
(186 |
) |
(5,780 |
) |
(1.1 |
%) |
|||||||||
| Net other operating income and expenses | 37 |
|
1,141 |
|
45 |
|
1,398 |
|
(18.4 |
%) |
37 |
|
1,141 |
|
33 |
|
1,037 |
|
10.0 |
% |
|||||||||
| Operating income | 504 |
|
15,675 |
|
905 |
|
28,164 |
|
(44.3 |
%) |
504 |
|
15,675 |
|
465 |
|
14,481 |
|
8.2 |
% |
|||||||||
27.8 |
% |
27.8 |
% |
39.1 |
% |
39.1 |
% |
27.8 |
% |
27.8 |
% |
26.7 |
% |
26.7 |
% |
||||||||||||||
| Net non-operating income and expenses | 90 |
|
2,810 |
|
(83 |
) |
(2,586 |
) |
- |
|
90 |
|
2,810 |
|
149 |
|
4,647 |
|
(39.5 |
%) |
|||||||||
| Income from continuing operations before income tax |
594 |
|
18,485 |
|
822 |
|
25,578 |
|
(27.7 |
%) |
594 |
|
18,485 |
|
614 |
|
19,128 |
|
(3.4 |
%) |
|||||||||
32.8 |
% |
32.8 |
% |
35.5 |
% |
35.5 |
% |
32.8 |
% |
32.8 |
% |
35.3 |
% |
35.3 |
% |
||||||||||||||
| Income tax expense | (83 |
) |
(2,588 |
) |
(132 |
) |
(4,088 |
) |
(36.7 |
%) |
(83 |
) |
(2,588 |
) |
(88 |
) |
(2,743 |
) |
(5.7 |
%) |
|||||||||
| Net income | 511 |
|
15,897 |
|
690 |
|
21,490 |
|
(26.0 |
%) |
511 |
|
15,897 |
|
526 |
|
16,385 |
|
(3.0 |
%) |
|||||||||
28.2 |
% |
28.2 |
% |
29.8 |
% |
29.8 |
% |
28.2 |
% |
28.2 |
% |
30.2 |
% |
30.2 |
% |
||||||||||||||
| Other comprehensive income (loss) | (8 |
) |
(238 |
) |
(120 |
) |
(3,749 |
) |
(93.7 |
%) |
(8 |
) |
(238 |
) |
107 |
|
3,325 |
|
- |
|
|||||||||
| Total comprehensive income (loss) | 503 |
|
15,659 |
|
570 |
|
17,741 |
|
(11.7 |
%) |
503 |
|
15,659 |
|
633 |
|
19,710 |
|
(20.6 |
%) |
|||||||||
| Net income attributable to: | |||||||||||||||||||||||||||||
| Shareholders of the parent | 502 |
|
15,641 |
|
685 |
|
21,327 |
|
(26.7 |
%) |
502 |
|
15,641 |
|
520 |
|
16,183 |
|
(3.3 |
%) |
|||||||||
| Non-controlling interests | 9 |
|
256 |
|
5 |
|
163 |
|
56.3 |
% |
9 |
|
256 |
|
6 |
|
202 |
|
26.9 |
% |
|||||||||
| Comprehensive income (loss) attributable to: | |||||||||||||||||||||||||||||
| Shareholders of the parent | 495 |
|
15,403 |
|
565 |
|
17,578 |
|
(12.4 |
%) |
495 |
|
15,403 |
|
627 |
|
19,508 |
|
(21.0 |
%) |
|||||||||
| Non-controlling interests | 8 |
|
256 |
|
5 |
|
163 |
|
56.3 |
% |
8 |
|
256 |
|
6 |
|
202 |
|
26.9 |
% |
|||||||||
| Earnings per share-basic | 0.041 |
|
1.27 |
|
0.056 |
|
1.74 |
|
0.041 |
|
1.27 |
|
0.042 |
|
1.31 |
|
|||||||||||||
| Earnings per ADS (2) | 0.204 |
|
6.35 |
|
0.279 |
|
8.70 |
|
0.204 |
|
6.35 |
|
0.210 |
|
6.55 |
|
|||||||||||||
| Weighted average number of shares | |||||||||||||||||||||||||||||
| outstanding (in millions) | 12,349 |
|
12,283 |
|
12,349 |
|
12,349 |
|
|||||||||||||||||||||
| Notes: | |||||||||||||||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2023 exchange rate of NT $31.13 per U.S. Dollar. | |||||||||||||||||||||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||||||||||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||||||||
| Except Per Share and Per ADS Data | |||||||||||||||||
For the Three-Month Period Ended |
For the Six-Month Period Ended |
||||||||||||||||
June 30, 2023 |
June 30, 2023 |
||||||||||||||||
US$ |
NT$ |
% |
US$ |
NT$ |
% |
||||||||||||
| Operating revenues | 1,808 |
|
56,296 |
|
100.0 |
% |
3,550 |
|
110,506 |
|
100.0 |
% |
|||||
| Operating costs | (1,157 |
) |
(36,044 |
) |
(64.0 |
%) |
(2,282 |
) |
(71,029 |
) |
(64.3 |
%) |
|||||
| Gross profit | 651 |
|
20,252 |
|
36.0 |
% |
1,268 |
|
39,477 |
|
35.7 |
% |
|||||
| Operating expenses | |||||||||||||||||
| - Sales and marketing expenses | (23 |
) |
(716 |
) |
(1.3 |
%) |
(54 |
) |
(1,667 |
) |
(1.5 |
%) |
|||||
| - General and administrative expenses | (55 |
) |
(1,715 |
) |
(3.1 |
%) |
(122 |
) |
(3,817 |
) |
(3.5 |
%) |
|||||
| - Research and development expenses | (107 |
) |
(3,317 |
) |
(5.9 |
%) |
(195 |
) |
(6,084 |
) |
(5.5 |
%) |
|||||
| - Expected credit impairment gain | 1 |
|
30 |
|
0.1 |
% |
2 |
|
69 |
|
0.1 |
% |
|||||
| Subtotal | (184 |
) |
(5,718 |
) |
(10.2 |
%) |
(369 |
) |
(11,499 |
) |
(10.4 |
%) |
|||||
| Net other operating income and expenses | 37 |
|
1,141 |
|
2.0 |
% |
70 |
|
2,177 |
|
2.0 |
% |
|||||
| Operating income | 504 |
|
15,675 |
|
27.8 |
% |
969 |
|
30,155 |
|
27.3 |
% |
|||||
| Net non-operating income and expenses | 90 |
|
2,810 |
|
5.0 |
% |
239 |
|
7,459 |
|
6.7 |
% |
|||||
| Income from continuing operations before income tax |
594 |
|
18,485 |
|
32.8 |
% |
1,208 |
|
37,614 |
|
34.0 |
% |
|||||
| Income tax expense | (83 |
) |
(2,588 |
) |
(4.6 |
%) |
(171 |
) |
(5,333 |
) |
(4.8 |
%) |
|||||
| Net income | 511 |
|
15,897 |
|
28.2 |
% |
1,037 |
|
32,281 |
|
29.2 |
% |
|||||
| Other comprehensive income (loss) | (8 |
) |
(238 |
) |
(0.4 |
%) |
99 |
|
3,088 |
|
2.8 |
% |
|||||
| Total comprehensive income (loss) | 503 |
|
15,659 |
|
27.8 |
% |
1,136 |
|
35,369 |
|
32.0 |
% |
|||||
| Net income attributable to: | |||||||||||||||||
| Shareholders of the parent | 502 |
|
15,641 |
|
27.8 |
% |
1,022 |
|
31,824 |
|
28.8 |
% |
|||||
| Non-controlling interests | 9 |
|
256 |
|
0.4 |
% |
15 |
|
457 |
|
0.4 |
% |
|||||
| Comprehensive income (loss) attributable to: | |||||||||||||||||
| Shareholders of the parent | 495 |
|
15,403 |
|
27.4 |
% |
1,121 |
|
34,911 |
|
31.6 |
% |
|||||
| Non-controlling interests | 8 |
|
256 |
|
0.4 |
% |
15 |
|
458 |
|
0.4 |
% |
|||||
| Earnings per share-basic | 0.041 |
|
1.27 |
|
0.083 |
|
2.58 |
|
|||||||||
| Earnings per ADS (2) | 0.204 |
|
6.35 |
|
0.414 |
|
12.90 |
|
|||||||||
| Weighted average number of shares outstanding (in millions) |
12,349 |
|
12,349 |
|
|||||||||||||
| Notes: | |||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2023 exchange rate of NT $31.13 per U.S. Dollar. | |||||||||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||
| Consolidated Condensed Statement of Cash Flows | |||||
| For The Six-Month Period Ended June 30, 2023 | |||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||
| US$ | NT$ | ||||
| Cash flows from operating activities : | |||||
| Net income before tax | 1,208 |
|
37,614 |
|
|
| Depreciation & Amortization | 637 |
|
19,834 |
|
|
| Share of profit of associates and joint ventures | (128 |
) |
(3,974 |
) |
|
| Income tax paid | (475 |
) |
(14,781 |
) |
|
| Changes in working capital & others | 66 |
|
2,031 |
|
|
| Net cash provided by operating activities | 1,308 |
|
40,724 |
|
|
| Cash flows from investing activities : | |||||
| Decrease in financial assets measured at amortized cost | 21 |
|
658 |
|
|
| Acquisition of property, plant and equipment | (1,731 |
) |
(53,895 |
) |
|
| Acquisition of intangible assets | (39 |
) |
(1,212 |
) |
|
| Others | 38 |
|
1,196 |
|
|
| Net cash used in investing activities | (1,711 |
) |
(53,253 |
) |
|
| Cash flows from financing activities : | |||||
| Increase in short-term loans | 5 |
|
170 |
|
|
| Proceeds from long-term loans | 130 |
|
4,050 |
|
|
| Repayments of long-term loans | (121 |
) |
(3,766 |
) |
|
| Increase in guarantee deposits | 73 |
|
2,278 |
|
|
| Others | (10 |
) |
(324 |
) |
|
| Net cash provided by financing activities | 77 |
|
2,408 |
|
|
| Effect of exchange rate changes on cash and cash equivalents | (19 |
) |
(601 |
) |
|
| Net decrease in cash and cash equivalents | (345 |
) |
(10,722 |
) |
|
| Cash and cash equivalents at beginning of period | 5,584 |
|
173,819 |
|
|
| Cash and cash equivalents at end of period | 5,239 |
|
163,097 |
|
|
| Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2023 exchange rate of NT $31.13 per U.S. Dollar. | |||||
1Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending June 30, 2023, the three-month period ending March 31, 2023, and the equivalent three-month period that ended June 30, 2022. For all 2Q23 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the June 30, 2023 exchange rate of NT$ 31.13 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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