Press release

UMC Reports First Quarter 2019 Results

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United Microelectronics Corporation (NYSE: UMC; TWSE: 2303)
(“UMC” or “The Company”), a leading global semiconductor foundry, today
announced its consolidated operating results for the first quarter of
2019.

First quarter consolidated revenue was NT$32.58 billion, down 8.3% QoQ
from NT$35.52 billion in 4Q18 and declined 13.1% YoY from NT$37.50
billion in 1Q18. Consolidated gross margin for 1Q19 was 6.9%. Net income
attributable to stockholders of the parent was NT$1.20 billion, with
earnings per ordinary share of NT$0.10.

Jason Wang, co-president of UMC, said, “In the first quarter, foundry
revenue declined 8.3% QoQ to NT$32.56 billion, leading to a foundry
operating loss of 4.6%. Utilization rate was 83%, bringing wafer
shipments to 1.61 million 8-inch equivalent wafers. Although overall
wafer demand declined during the first quarter, we observed stable wafer
shipments from the wireless communications segment, solidified by
smartphone related components such as display, RF, application processor
and baseband modem. We continue to build on our promise of building
shareholder value, and in Q1 our Board of Directors proposed to
distribute a cash dividend of approximately NT$0.58 per share, subject
to shareholder approval during the annual shareholder meeting (AGM).”

Co-president Wang further commented, “Entering the second quarter of
2019, UMC will sustain its energy on its continuing transformation,
which will allow us to best take advantage of improving wafer demand
within wired and wireless communication segments, with smartphones,
networking, and display related products currently seeing better than
expected conditions. Going forward, our strategy to stay focused on
developing existing logic and specialty solutions across numerous
technology platforms will help us enhance our market relevance to secure
future business and expand our presence in the IC industry. We are
confident that by continuing to responsibly execute our technology
development, capacity expansion and customer service, we can bring
optimal value to the company, its shareholders, and employees.”

Summary of Operating Results

Operating Results
(Amount: NT$ million)   1Q19   4Q18   QoQ %
change
  1Q18   YoY %
change
Operating Revenues 32,583   35,517   (8.3)   37,497   (13.1)
Gross Profit 2,262 4,601 (50.8) 4,642 (51.3)
Operating Expenses (4,932) (6,396) (22.9) (4,850) 1.7
Net Other Operating Income and Expenses 1,073 1,206 (11.0) 977 9.8
Operating Income (Loss) (1,597) (589) 171.3 769
Net Non-Operating Income and Expenses 1,247 (1,998) 1,088 14.6

Net Income (Loss) Attributable to Stockholders of the
Parent

1,201 (1,707) 3,400 (64.7)

EPS (NT$ per share)

0.10 (0.14) 0.28

(US$ per ADS)

0.016   (0.023)       0.045    

Operating revenues in 1Q19 declined 8.3% to NT$32.58 billion, including
NT$32.56 billion from the foundry segment. Revenue contribution from
40nm and below technologies was 30%. Gross profit fell 50.8% to NT$2.26
billion, or 6.9% of revenue. Operating expenses declined 22.9% to
NT$4.93 billion. Net other operating income was NT$1.07 billion, leading
to an operating loss of NT$1.60 billion. Net non-operating income was
NT$1.25 billion. Net income attributable to stockholders of the parent
was NT$1.20 billion.

Earnings per ordinary share for the quarter was NT$0.10. Earnings per
ADS was US$0.016. The basic weighted average number of outstanding
shares in 1Q19 was 11,908,706,645, compared with 12,111,826,935 shares
in 4Q18 and 12,202,773,078 shares in 1Q18. The diluted weighted average
number of outstanding shares was 13,238,181,278 in 1Q19, compared with
12,111,826,935 shares in 4Q18 and 13,457,161,259 shares in 1Q18. The
fully diluted share count on March 31, 2019 was approximately
13,453,794,000. On March 31, 2019, UMC held 200 million treasury shares
acquired from the 17th share buy-back program.

Detailed Financials Section

COGS & Expenses
(Amount: NT$ million)   1Q19   4Q18  

QoQ %
change

  1Q18   YoY %
change
Operating Revenues   32,583   35,517   (8.3)   37,497   (13.1)
COGS (30,321) (30,916) (1.9) (32,855) (7.7)
Depreciation (10,497) (10,228) 2.6 (11,815) (11.2)
Other Mfg. Costs (19,824) (20,688) (4.2) (21,040) (5.8)
Gross Profit 2,262 4,601 (50.8) 4,642 (51.3)
Gross Margin (%) 6.9% 13.0% 12.4%
Operating Expenses (4,932) (6,396) (22.9) (4,850) 1.7
G&A (1,236) (1,339) (7.7) (1,017) 21.5
Sales & Marketing (889) (903) (1.6) (909) (2.2)
R&D (2,807) (3,745) (25.0) (2,924) (4.0)
Expected Credit Losses (409) (100.0)

Net Other Operating

Income & Expenses

1,073 1,206 (11.0) 977 9.8

Operating Income
(Loss)

  (1,597)   (589)   171.3   769  

Operating revenues decreased 8.3% to NT$32.58 billion. COGS declined
1.9% to NT$30.32 billion, as depreciation increased 2.6% to NT$10.50
billion while other manufacturing costs declined 4.2% to NT$19.82
billion. Gross profit was NT$2.26 billion. Operating expenses declined
22.9% to NT$4.93 billion, which included a 25% decrease in R&D expense
to NT$2.81 billion and a 7.7% decline in General and Administrative
(G&A) expense. R&D expense represented 8.6% of 1Q19 operating revenues
and net other operating income was NT$1.07 billion. Overall, the company
realized an operating loss of NT$1.60 billion.

Non-Operating Income and Expenses
(Amount: NT$ million)   1Q19   4Q18   1Q18
Non-Operating Income and Expenses   1,247   (1,998)   1,088
Net Interest Income and Expenses (473) (438) (529)
Net Investment Gain and Loss 1,228 (1,859) 582
Exchange Gain and Loss 507 304 1,021
Other Gain and Loss   (15)   (5)   14

Net non-operating income in 1Q19 was NT$1.25 billion, primarily
resulting from NT$1.23 billion in net investment gain and NT$507 million
in exchange gain, partly offset by NT$473 million in net interest
expense.

Cash Flow Summary

(Amount: NT$ million)  

For the 3-Month
Period Ended
Mar. 31, 2019

 

For the 3-Month
Period Ended
Dec. 31, 2018

Cash Flow from Operating Activities   8,183   12,123
Net loss before tax (350) (2,587)
Depreciation & Amortization 12,380 12,414
Expected credit losses 409

Net loss (gain) of financial assets
and liabilities at FVTPL

(1,032) 635

Share of profit or loss of associates and
joint ventures

(196) 1,148

Exchange gain on financial assets
and liabilities

(554) (68)
Changes in working capital (1,339) 1,319
Interest paid (215) (905)
Other (511) (242)
Cash Flow from Investing Activities (5,683) (4,613)
Acquisition of PP&E (5,563) (4,361)
Acquisition of intangible assets (530) (292)
Other 410 40
Cash Flow from Financing Activities 2,180 (5,724)
Bank loans 2,463 (2,863)
Treasury stock acquired (331) (3,019)
Other 48 158
Effect of Exchange Rate 396 356
Net Cash Flow   5,076   2,142

Cash inflow from operating activities was NT$8.18 billion. CAPEX from
foundry segment was NT$5.75 billion leading in free cash flow of NT$2.43
billion. Cash inflow from financing activities totaled NT$2.18 billion,
including NT$2.46 billion cash inflow from bank loans and NT$331 million
payment of treasury share buyback. Net cash inflow in 1Q19 was NT$5.08
billion. Over the next 12 months, the company expects to repay NT$1.56
billion in bank loans.

Current Assets
(Amount: NT$ billion)   1Q19   4Q18   1Q18
Cash and Cash Equivalents   88.74   83.66   77.14
Notes & Accounts Receivable 22.99 23.88 25.01
Days Sales Outstanding 66 64 56
Inventories, net 18.87 18.20 17.14
Days of Inventory 56 53 49
Total Current Assets   146.80   141.19   136.42

Cash and cash equivalents increased to NT$88.74 billion. Days of
inventory increased three days to 56 days.

Liabilities
(Amount: NT$ billion)   1Q19   4Q18   1Q18
Total Current Liabilities   52.64   49.90   72.57
Notes & Accounts Payable 6.78 6.80 7.00
Short-Term Credit / Bonds 23.35 18.23 40.00
Payable on Equipment 2.95 4.01 2.97
Other 19.56 20.86 22.60
Long-Term Credit / Bonds 64.98 67.08 52.61
Long-Term Investment Liabilities 20.99 20.41 20.90
Total Liabilities 164.32 158.07 169.35
Debt to Equity   78%   77%   78%

Current liabilities increased to NT$52.64 billion. Total liabilities
increased to NT$164.32 billion, leading to a debt to equity ratio of 78%.

Analysis of Revenue2 for Foundry Segment

Revenue Breakdown by Region
Region   1Q19   4Q18   3Q18   2Q18   1Q18
North America   32%   38%   34%   37%   42%
Asia Pacific   57%   51%   52%   51%   47%
Europe   7%   8%   11%   9%   8%
Japan   4%   3%   3%   3%   3%

Revenue from Asia Pacific increased to 57%, while contribution from
North American customers declined to 32%. Revenue from Europe and Japan
was 7% and 4%, respectively.

Revenue Breakdown by Geometry
Geometry   1Q19   4Q18   3Q18   2Q18   1Q18
14nm and below   0%   1%   5%   3%   2%
14nm<x<=28nm   10%   10%   13%   15%   12%
28nm<x<=40nm   20%   23%   22%   26%   30%
40nm<x<=65nm   14%   13%   12%   12%   13%
65nm<x<=90nm   12%   11%   10%   7%   6%
90nm<x<=0.13um   15%   13%   11%   11%   11%
0.13um<x<=0.18um   15%   15%   14%   13%   13%
0.18um<x<=0.35um   11%   11%   10%   10%   10%
0.5um and above   3%   3%   3%   3%   3%

Revenue contribution from 28nm remained flat at 10% as 40nm business
accounted for 20% of sales.

Revenue Breakdown by Customer Type
Customer Type   1Q19   4Q18   3Q18   2Q18   1Q18
Fabless   94%   92%   93%   92%   92%
IDM   6%   8%   7%   8%   8%

Revenue from fabless customers increased to 94% of revenue.

Revenue Breakdown by Application (1)
Application   1Q19   4Q18   3Q18   2Q18   1Q18
Computer   15%   15%   19%   16%   14%
Communication   48%   44%   43%   47%   47%
Consumer   29%   30%   28%   28%   29%
Others   8%   11%   10%   9%   10%

The communication segment increased to 48% of sales, while revenue from
consumer applications was 29%. Computer related applications remained at
15% 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. 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 for Foundry Segment

Blended average selling price (ASP) in 1Q19 decreased slightly.

(To view ASP trend, visit http://www.umc.com/english/investors/1Q19_ASP_trend.asp)

Shipment and Utilization Rate3 for Foundry
Segment

Wafer Shipments
    1Q19   4Q18   3Q18   2Q18   1Q18
Wafer Shipments
(8” K equivalents)
  1,611   1,711   1,804   1,846   1,747
 
Quarterly Capacity Utilization Rate
    1Q19   4Q18   3Q18   2Q18   1Q18
Utilization Rate   83%   88%   94%   97%   94%
Total Capacity
(8” K equivalents)
  1,937   1,958   1,938   1,918   1,858

In 1Q19, wafer shipments decreased 5.8% to 1,611K. Quarterly capacity
declined 1.1% QoQ to 1,937K, resulting in an overall utilization rate of
83%.

Capacity4 for Foundry Segment

Total capacity in the first quarter totaled 1,937K 8-inch equivalent
wafers. We expect second quarter capacity to increase by approximately
2.7% QoQ to 1,989K 8-inch equivalent wafers, mainly attributed to the
ongoing expansion efforts at HJ.

Annual Capacity in

thousands of wafers

    Quarterly Capacity in

thousands of wafers

FAB   Geometry
(um)
  2018   2017   2016   2015     FAB   2Q19E   1Q19   4Q18   3Q18
WTK   6″   3.5 – 0.45   396   422   423   421 WTK   93   91   93   93
Fab 8A   8″   0.5 – 0.25   825   825   827   813 Fab 8A   207   204   207   207
Fab 8C   8″   0.35 – 0.11   383   357   348   347 Fab 8C   109   106   108   92
Fab 8D   8″   0.13 – 0.09   347   341   342   341 Fab 8D   90   89   90   86
Fab 8E   8″   0.5 – 0.18   418   418   419   418 Fab 8E   105   103   105   105
Fab 8F   8″   0.18 – 0.11   431   417   401   388 Fab 8F   108   107   108   108
Fab 8S   8″   0.18 – 0.11   372   347   336   335 Fab 8S   93   92   93   93
HJ   8″   0.5 – 0.11   771   753   750   667 HJ   224   201   194   194
Fab 12A   12″   0.13 – 0.014   997   970   885   793 Fab 12A   250   246   250   250
Fab 12i   12″   0.13 – 0.040   555   537   584   572 Fab 12i   144   141   144   144
USCXM   12″   0.040 – 0.028   183   97   9   USCXM   51   50   51   51
Total(1)   7,673   7,304   6,983   6,617 Total   1,989   1,937   1,958   1,938
YoY Growth Rate   5%   5%   6%   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. Capacity total figures are expressed in 8-inch
equivalent wafers.

CAPEX for Foundry Segment

Capital Expenditure by Year – in US$ billion
Year   2018   2017   2016   2015   2014
CAPEX   $ 0.7   $ 1.4   $ 2.8   $ 1.9   $ 1.4

 

2019 CAPEX Plan

8″   12″   Total
25%   75%   US$1.0 billion

CAPEX spending in 1Q19 was US$186 million. Full year 2019 CAPEX is
budgeted for US$1.0 billion.

Second Quarter of 2019 Outlook & Guidance

Quarter-over-Quarter Guidance:

  • Wafer Shipments: To increase by 6-7%
  • ASP in USD: To increase by 3%
  • Profitability: Gross profit margin will be in the low teens % range
  • Foundry Segment Capacity Utilization: mid-80% range
  • 2019 CAPEX for Foundry Segment: US$1.0 billion

Recent Developments / Announcements

Mar. 6, 2019

UMC
Board of Directors Announces Proposals for its Annual Shareholders
Meeting

Jan. 29, 2019

UMC
4Q 2018 Financial Results

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

Conference Call / Webcast Announcement

Wednesday, April 24, 2019

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 1Q19 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
that provides advanced IC production for applications spanning every
major sector of the electronics industry. UMC’s comprehensive foundry
solutions enable chip designers to leverage the company’s sophisticated
technology and manufacturing, which include world-class 28nm
High-K/Metal Gate technology, 14nm FinFET volume production, specialty
process platforms specifically developed for AI, 5G and IoT applications
and the automotive industry’s highest-rated AEC-Q100 Grade-0
manufacturing capabilities for the production of ICs found in vehicles.
UMC’s 11 wafer fabs are strategically located throughout Asia and are
able to produce over 600,000 wafers per month. The company employs more
than 20,000 people worldwide, with offices in Taiwan, China, Europe,
Japan, Korea, Singapore, and the United States. UMC can be found on the
web at http://www.umc.com.

Note from UMC Concerning Forward-Looking Statements

Some of the statements in the foregoing announcement are forward-looking
within the meaning of the U.S. Federal Securities laws, including
statements about introduction of new services and technologies, future
outsourcing, competition, wafer capacity, business relationships and
market conditions. Investors are cautioned that actual events and
results could differ materially from these statements as a result of a
variety of factors, including conditions in the overall semiconductor
market and economy; acceptance and demand for products from UMC; and
technological and development risks. Further information regarding these
and other risks is included in UMC’s filings with the U.S. Securities
and Exchange Commission. 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.

Safe Harbor Statements

This release contains forward-looking statements. These statements
constitute “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. You can identify these forward-looking statements by use of
words such as “strategy,” “expects,” “continues,” “plans,”
“anticipates,” “believes,” “will,” “estimates,” “intends,” “projects,”
“goals,” “targets” and other words of similar meaning. You can also
identify them by the fact that they do not relate strictly to historical
or current facts.

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. 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.

This release is not an offer of securities for sale in the United
States. Securities may not be offered or sold in the United States
absent registration or an exemption from registration. Any public
offering of securities to be made in the United States will be made by
means of a prospectus that may be obtained from the issuer or selling
security holder and that will contain detailed information about the
company and management, as well as financial statements.

– FINANCIAL TABLES TO FOLLOW –

  UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheet
As of March 31, 2019
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars
(US$)
     
March 31, 2019
US$ NT$ %
Assets
Current assets
Cash and cash equivalents 2,880 88,738 23.7%
Financial assets at fair value through profit or loss, current 18 552 0.2%
Notes & Accounts receivable, net 746 22,992 6.1%
Inventories, net 613 18,874 5.1%
Other current assets 507 15,640 4.1%
Total current assets 4,764 146,796 39.2%
 
Non-current assets
Funds and investments 1,209 37,255 10.0%
Property, plant and equipment 5,447 167,823 44.9%
Right-of-use assets 277 8,548 2.3%
Other non-current assets 446 13,716 3.6%
Total non-current assets 7,379 227,342 60.8%
Total assets 12,143 374,138 100.0%
 
Liabilities
Current liabilities
Short-term loans 545 16,798 4.5%
Payables 728 22,417 6.0%
Current portion of long-term liabilities 213 6,553 1.8%
Other current liabilities 222 6,877 1.8%
Total current liabilities 1,708 52,645 14.1%
 
Non-current liabilities
Bonds payable 1,184 36,471 9.8%
Long-term loans 925 28,505 7.6%
Lease liabilities, noncurrent 180 5,539 1.5%
Other non-current liabilities 1,336 41,164 10.9%
Total non-current liabilities 3,625 111,679 29.8%
Total liabilities 5,333 164,324 43.9%
 
Equity
Equity attributable to the parent company
Capital 3,935 121,243 32.4%
Additional paid-in capital 1,304 40,164 10.8%

Retained earnings, exchange differences on translation of
foreign
operations, unrealized gains or losses on financial

assets measured at fair value through other comprehensive
income
and gains or losses on hedging Instruments

1,638 50,470 13.5%
Treasury stock (82) (2,516) (0.7%)
Total equity attributable to the parent company 6,795 209,361 56.0%
Non-controlling interests 15 453 0.1%
Total equity 6,810 209,814 56.1%
Total liabilities and equity 12,143 374,138 100.0%
 
             
Note:New Taiwan Dollars have been translated into U.S. Dollars at
the March 31, 2019 exchange rate of NT $30.81 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
March 31, 2019 March 31, 2018 Chg. March 31, 2019 December 31, 2018 Chg.
US$ NT$ US$ NT$ % US$ NT$ US$ NT$ %
Operating revenues 1,058 32,583 1,217 37,497 (13.1%) 1,058 32,583 1,153 35,517 (8.3%)
Operating costs (985) (30,321) (1,066) (32,855) (7.7%) (985) (30,321) (1,004) (30,916) (1.9%)
Gross profit 73 2,262 151 4,642 (51.3%) 73 2,262 149 4,601 (50.8%)
6.9% 6.9% 12.4% 12.4% 6.9% 6.9% 13.0% 13.0%
Operating expenses
– Sales and marketing expenses (29) (889) (30) (909) (2.2%) (29) (889) (29) (903) (1.6%)
– General and administrative expenses (40) (1,236) (33) (1,017) 21.5% (40) (1,236) (43) (1,339) (7.7%)
– Research and development expenses (91) (2,807) (95) (2,924) (4.0%) (91) (2,807) (122) (3,745) (25.0%)
– Expected credit losses (13) (409) (100.0%)
Subtotal (160) (4,932) (158) (4,850) 1.7% (160) (4,932) (207) (6,396) (22.9%)
Net other operating income and expenses 35 1,073 32 977 9.8% 35 1,073 39 1,206 (11.0%)
Operating income (loss) (52) (1,597) 25 769 (52) (1,597) (19) (589) 171.3%
(4.9%) (4.9%) 2.1% 2.1% (4.9%) (4.9%) (1.7%) (1.7%)
 
Net non-operating income and expenses 41 1,247 35 1,088 14.6% 41 1,247 (65) (1,998)

Income (loss) from continuing operations
before income tax

 

(11) (350) 60 1,857 (11) (350) (84) (2,587) (86.5%)
(1.1%) (1.1%) 5.0% 5.0% (1.1%) (1.1%) (7.3%) (7.3%)
 
Income tax benefit (expense) 14 443 38 1,173 (62.3%) 14 443 (13) (413)
Net income (loss) 3 93 98 3,030 (96.9%) 3 93 (97) (3,000)
0.3% 0.3% 8.1% 8.1% 0.3% 0.3% (8.4%) (8.4%)
 
Other comprehensive income (loss) 117 3,614 (7) (234) 117 3,614 3 110 3,185.5%
 
Total comprehensive income (loss) 120 3,707 91 2,796 32.6% 120 3,707 (94) (2,890)
 
Net income (loss) attributable to:
  Stockholders of the parent 39 1,201 110 3,400 (64.7%) 39 1,201 (55) (1,707)
  Non-controlling interests (36) (1,108) (12) (370) 199.0% (36) (1,108) (42) (1,293) (14.3%)
 
Comprehensive income (loss) attributable to:
  Stockholders of the parent 156 4,813 102 3,158 52.4% 156 4,813 (52) (1,608)
  Non-controlling interests (36) (1,106) (11) (362) 205.5% (36) (1,106) (42) (1,282) (13.7%)
 
Earnings per share-basic 0.003 0.10 0.009 0.28 0.003 0.10 (0.005) (0.14)
Earnings per ADS (2) 0.016 0.50 0.045 1.40 0.016 0.50 (0.023) (0.70)

Weighted average number of shares
outstanding (in millions)

11,909 12,203 11,909 12,112
   
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at
the March 31, 2019 exchange rate of NT $30.81 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 Three-Month Period Ended
March 31, 2019 March 31, 2019
US$ NT$ % US$ NT$ %
Operating revenues 1,058 32,583 100.0% 1,058 32,583 100.0%
Operating costs (985) (30,321) (93.1%) (985) (30,321) (93.1%)
Gross profit 73 2,262 6.9% 73 2,262 6.9%
 
 
Operating expenses
– Sales and marketing expenses (29) (889) (2.7%) (29) (889) (2.7%)
– General and administrative expenses (40) (1,236) (3.8%) (40) (1,236) (3.8%)
– Research and development expenses (91) (2,807) (8.6%) (91) (2,807) (8.6%)
Subtotal (160) (4,932) (15.1%) (160) (4,932) (15.1%)
Net other operating income and expenses 35 1,073 3.3% 35 1,073 3.3%
Operating loss (52) (1,597) (4.9%) (52) (1,597) (4.9%)
 
Net non-operating income and expenses 41 1,247 3.8% 41 1,247 3.8%
Loss from continuing operations

before income tax

(11) (350) (1.1%) (11) (350) (1.1%)
 
 
Income tax benefit 14 443 1.4% 14 443 1.4%
Net income 3 93 0.3% 3 93 0.3%
 
Other comprehensive income (loss) 117 3,614 11.1% 117 3,614 11.1%
 
Total comprehensive income (loss) 120 3,707 11.4% 120 3,707 11.4%
 
Net income (loss) attributable to:
  Stockholders of the parent 39 1,201 3.7% 39 1,201 3.7%
  Non-controlling interests (36) (1,108) (3.4%) (36) (1,108) (3.4%)
 
Comprehensive income (loss) attributable to:
  Stockholders of the parent 156 4,813 14.8% 156 4,813 14.8%
  Non-controlling interests (36) (1,106) (3.4%) (36) (1,106) (3.4%)
 
Earnings per share-basic 0.003 0.10 0.003 0.10
Earnings per ADS (2) 0.016 0.50 0.016 0.50
 
Weighted average number of shares

outstanding (in millions)

11,909 11,909
                         
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at
the March 31, 2019 exchange rate of NT $30.81 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.
 
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statement of Cash Flows
For The Three-Month Period Ended March 31, 2019
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars
(US$)
 
US$ NT$
Cash flows from operating activities :
Net loss before tax (11) (350)
Depreciation & Amortization 402 12,380
Net gain of financial assets and liabilities at fair value through
profit or loss
(33) (1,032)
Exchange gain on financial assets and liabilities (18) (554)
Changes in notes & accounts receivable 27 831
Changes in other payables (33) (1,020)
Changes in assets, liabilities and others (68) (2,072)
Net cash provided by operating activities 266 8,183
 
Cash flows from investing activities :
Acquisition of property, plant and equipment (181) (5,563)
Acquisition of intangible assets (17) (530)
Others 14 410
Net cash used in investing activities (184) (5,683)
 
Cash flows from financing activities :
Increase in short-term loans 113 3,467
Proceeds from long-term loans 24 748
Repayments of long-term loans (57) (1,752)
Treasury stock acquired (11) (331)
Others 2 48
Net cash provided by financing activities 71 2,180
 
Effect of exchange rate changes on cash and cash equivalents 12 396
Net increase in cash and cash equivalents 165 5,076
 
Cash and cash equivalents at beginning of period 2,715 83,662
 
Cash and cash equivalents at end of period 2,880 88,738
 
       
Note: New Taiwan Dollars have been translated into U.S. Dollars
at the March 31, 2019 exchange rate of NT $30.81 per U.S. Dollar.
 

1 Unless 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 March 31,
2019, the three-month period ending December 31, 2018, and the
equivalent three-month period that ended March 31, 2018. For all 1Q19
results, New Taiwan Dollar (NT$) amounts have been converted into U.S.
Dollars at the March 31, 2019 exchange rate of NT$ 30.81 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.