UMC - UMC Reports Fourth Quarter 2023 Results

January, 31 2024 03:33 AM United Microelectronics Corporation

Company posts full-year 2023 EPS of NT$4.93; 22/28nm contribution in Q4 reaches 36% 12nm collaboration will propel long-term growth beyond 22/28nm

Fourth Quarter 2023 Overview ¹ :

Revenue: NT$54.96 billion (US$1.79 billion)
Gross margin: 32.4%; Operating margin: 22.6%
Revenue from 22/28nm: 36%
Capacity utilization rate: 66%
Net income attributable to shareholders of the parent: NT$13.20 billion (US$430 million)
Earnings per share: NT$1.06; earnings per ADS: US$0.173

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the fourth quarter of 2023.

Fourth quarter consolidated revenue was NT$54.96 billion, decreasing 3.7% QoQ from NT$57.07 billion in 3Q23. Compared to a year ago, 4Q23 revenue declined 19.0% YoY from NT$67.84 billion in 4Q22. Consolidated gross margin for 4Q23 was 32.4%. Net income attributable to the shareholders of the parent was NT$13.20 billion, with earnings per ordinary share of NT$1.06.

Jason Wang, co-president of UMC, said, “In the fourth quarter, challenging macroeconomic conditions continued to prolong the inventory correction in the semiconductor industry as our wafer shipments decreased 2.5% QoQ while overall fab utilization rate slightly fell to 66%. As our Tainan 12A P6 facility continues to ramp, our 22/28nm represented 36% of our Q4 wafer revenue, reflecting record high in revenue as well as percentage of wafer sales.”

“Overall, 2023 was a year where UMC demonstrated its resilience in face of challenging external environment, as optimization in product mix continued to lift 2023 blended ASP by mid-single digit YoY. In addition, we were successful in safeguarding the company's structural profitability with a gross margin of 34.9% in 2023 even as utilization rate significantly declined YoY. Our financial performance also showed strong resilience, which can be attributed to diversified customer base and higher contribution from stronger business stickiness of our specialty technologies offering.”

Co-president Wang commented, “Looking into the first quarter of 2024, we anticipate overall wafer demand will increase mildly, however, customers maintain a cautious approach in their inventory management. Moving forward, UMC will continue to navigate headwinds amid an increasingly competitive landscape and swelling geopolitical tensions via diversified manufacturing base and differentiation in 12-inch specialty technologies. Our 12nm FinFET collaboration is a step forward in advancing our strategy of pursuing cost-efficient capacity expansion and technology node advancement in continuing our commitment to customers. This effort will enable our customers to smoothly migrate to this critical new node, and also benefit from the resiliency of an added Western footprint. We anticipate 12nm FinFET collaboration will broaden our addressable market and significantly accelerate our development roadmap.”

Co-president Wang added, “Over the years, UMC has invested in a number of circular economy initiatives. In 2023, we broke ground for the UMC Circular Economy & Recycling Innovation Center, which will serve to consolidate our efforts to maximize resource recovery and minimize waste. Once operational in 2025, the facility is expected to reduce waste from UMC’s Taiwan fabs by one-third. In addition, UMC continues to be recognized for its unwavering contributions to ESG by global institutions, receiving awards in consecutive years from DJSI, FTSE4Good and ISS. UMC also achieved a remarkable AA rating in the MSCI ESG Ratings. And for the first time, UMC was named as one of the "Best Companies to Work for in Asia" by HR Asia, an authoritative publication for HR professionals. UMC is committed to tackle growing sustainability issues with innovative and long-term solutions that can only be achieved through the hard work and collaboration of its stakeholders and employees.”

Summary of Operating Results

Operating Results
(Amount: NT$ million)

4Q23


3Q23


QoQ % change

4Q22


YoY % change
Operating Revenues

54,958


57,069


(3.7
)

67,836


(19.0
)
Gross Profit

17,806


20,461


(13.0
)

29,124


(38.9
)
Operating Expenses

(6,635
)

(5,722
)

16.0


(6,798
)

(2.4
)
Net Other Operating Income and Expenses

1,252


573


118.7


1,311


(4.5
)
Operating Income

12,423


15,312


(18.9
)

23,637


(47.4
)
Net Non-Operating Income and Expenses

2,227


3,336


(33.3
)

889


150.4

Net Income Attributable to Shareholders of the Parent

13,195


15,971


(17.4
)

19,068


(30.8
)
EPS (NT$ per share)

1.06


1.29




1.54



(US$ per ADS)

0.173


0.210




0.251

Fourth quarter operating revenues declined 3.7% sequentially to NT$54.96 billion. Revenue contribution from 40nm and below technologies represented 50% of wafer revenue, propelled by the revenue growth from 22/28nm in 4Q23. Gross profit decreased 13.0% QoQ to NT$17.81 billion, or 32.4% of revenue. Operating expenses increased 16.0% to NT$6.64 billion. Net other operating income increased to NT$1.25 billion. Net non-operating income totaled NT$2.23 billion. Net income attributable to shareholders of the parent amounted to NT$13.20 billion.

Earnings per ordinary share for the quarter was NT$1.06. Earnings per ADS was US$0.173. The basic weighted average number of shares outstanding in 4Q23 was 12,414,087,724, compared with 12,371,129,866 shares in 3Q23 and 12,348,880,384 shares in 4Q22. The diluted weighted average number of shares outstanding was 12,589,138,701 in 4Q23, compared with 12,566,773,628 shares in 3Q23 and 12,684,106,050 shares in 4Q22. The fully diluted shares counted on December 31, 2023 were approximately 12,589,139,000.

Detailed Financials Section

Operating revenues decreased to NT$54.96 billion. COGS grew 1.5% to NT$37.15 billion, which included 6.1% sequential increase in depreciation. Gross profit fell 13.0% QoQ to NT$17.81 billion. Operating expenses increased to NT$6.64 billion, as R&D grew 21.2% sequentially to NT$3.95 billion or 7.2% of revenue, while Sales & Marketing increased 12.0% to NT$0.82 billion and G&A was up 11.6% QoQ to NT$1.93 billion. Net other operating income was NT$1.25 billion. In 4Q23, operating income declined 18.9% QoQ to NT$12.42 billion.

COGS & Expenses
(Amount: NT$ million)

4Q23


3Q23


QoQ % change

4Q22


YoY % change
Operating Revenues

54,958


57,069


(3.7
)

67,836


(19.0
)
COGS

(37,152
)

(36,608
)

1.5


(38,712
)

(4.0
)
Depreciation

(9,006
)

(8,485
)

6.1


(8,898
)

1.2

Other Mfg. Costs

(28,146
)

(28,123
)

0.1


(29,814
)

(5.6
)
Gross Profit

17,806


20,461


(13.0
)

29,124


(38.9
)
Gross Margin (%)

32.4
%

35.9
%



42.9
%


Operating Expenses

(6,635
)

(5,722
)

16.0


(6,798
)

(2.4
)
Sales & Marketing

(823
)

(735
)

12.0


(953
)

(13.6
)
G&A

(1,930
)

(1,731
)

11.6


(2,438
)

(20.8
)
R&D

(3,945
)

(3,255
)

21.2


(3,407
)

15.8

Expected Credit Impairment gain (loss)

63


(1
)

-


(0
)

-

Net Other Operating Income & Expenses

1,252


573


118.7


1,311


(4.5
)
Operating Income

12,423


15,312


(18.9
)

23,637


(47.4
)

Net non-operating income in 4Q23 was NT$2.23 billion, primarily reflecting the NT$1.75 billion in net investment gain and the NT$0.88 billion in net interest income partially offset by the NT$0.41 billion in exchange loss.

Non-Operating Income and Expenses
(Amount: NT$ million)

4Q23


3Q23

4Q22

Non-Operating Income and Expenses

2,227


3,336

889

Net Interest Income and Expenses

880


617

584

Net Investment Gain and Loss

1,750


1,885

1,382

Exchange Gain and Loss

(405
)

324

(1,057
)
Other Gain and Loss

2


510

(20
)

In 4Q23, cash inflow from operating activities was NT$26.22 billion. Cash outflow from investing activities totaled NT$26.81 billion, which included NT$20.81 billion in capital expenditure, resulting in free cash flow of NT$5.41 billion. Cash outflow from financing was NT$3.89 billion, primarily from NT$4.44 billion in bank loans. Net cash outflow in 4Q23 amounted to NT$8.09 billion. Over the next 12 months, the company expects to repay NT$2.23 billion in bank loans.

Cash Flow Summary
(Amount: NT$ million)

For the 3-Month Period Ended Dec. 31, 2023

For the 3-Month Period Ended Sep. 30, 2023
Cash Flow from Operating Activities

26,217

19,059
Net income before tax

14,650

18,648
Depreciation & Amortization

10,721

9,928
Share of profit of associates and joint ventures

(1,918)

(1,022)
Income tax paid

(15)

(1,216)
Changes in working capital & others

2,779

(7,279)
Cash Flow from Investing Activities

(26,813)

(17,720)
Increase in financial assets measured at amortized cost

(6,134)

(141)
Acquisition of PP&E

(20,334)

(17,245)
Acquisition of intangible assets

(774)

(560)
Others

429

226
Cash Flow from Financing Activities

(3,892)

(27,602)
Bank loans

(4,435)

21,369
Bonds issued

-

10,000
Increase in deposits-in

720

7,425
Decrease in other financial liabilities

-

(21,209)
Cash dividends

-

(45,018)
Others

(177)

(169)
Effect of Exchange Rate

(3,600)

3,808
Net Cash Flow

(8,088)

(22,455)
Beginning balance

140,642

163,097
Ending balance

132,554

140,642

Cash and cash equivalents decreased to NT$132.55 billion. Days of inventory remained unchanged at 89 days.

Current Assets
(Amount: NT$ billion)

4Q23

3Q23

4Q22
Cash and Cash Equivalents

132.55

140.64

173.82
Notes & Accounts Receivable

29.59

31.11

36.98
Days Sales Outstanding

50

49

55
Inventories, net

35.71

36.56

31.07
Days of Inventory

89

89

72
Total Current Assets

216.80

219.28

252.37

Current liabilities slightly increased to NT$99.02 billion. Long-term credit/bonds decreased to NT$45.24 billion. Total liabilities increased to NT$199.61 billion, leading to a debt to equity ratio of 56%.

Liabilities
(Amount: NT$ billion)

4Q23

3Q23

4Q22
Total Current Liabilities

99.02

92.07

108.57
Accounts Payable

7.53

8.37

8.98
Short-Term Credit / Bonds

29.54

30.07

7.59
Payables on Equipment

19.20

15.95

18.63
Other

42.75

37.68

73.37
Long-Term Credit / Bonds

45.24

49.38

39.88
Long-Term Investment Liabilities

-

-

4.22
Total Liabilities

199.61

197.26

197.60
Debt to Equity

56%

56%

59%

Analysis of Revenue ²

Revenue from Asia-Pacific increased to 62% while business from North America fell to 23% of sales. Business from Europe was 11% while contribution from Japan increased to 4%.

Revenue Breakdown by Region
Region

4Q23

3Q23

2Q23

1Q23

4Q22
North America

23%

27%

27%

31%

30%
Asia Pacific

62%

58%

56%

50%

54%
Europe

11%

12%

12%

11%

9%
Japan

4%

3%

5%

8%

7%

Revenue contribution from 22/28nm grew to 36% of the wafer revenue, while 40nm contribution was 14% of sales.

Revenue Breakdown by Geometry
Geometry

4Q23

3Q23

2Q23

1Q23

4Q22
14nm and below

0%

0%

0%

0%

0%
14nm<x<=28nm

36%

32%

29%

26%

28%
28nm<x<=40nm

14%

13%

12%

15%

17%
40nm<x<=65nm

16%

19%

23%

19%

17%
65nm<x<=90nm

9%

8%

10%

10%

9%
90nm<x<=0.13um

9%

12%

10%

12%

12%
0.13um<x<=0.18um

9%

9%

9%

10%

10%
0.18um<x<=0.35um

5%

5%

5%

6%

5%
0.5um and above

2%

2%

2%

2%

2%

Revenue from fabless customers accounted for 78% of revenue.

Revenue Breakdown by Customer Type
Customer Type

4Q23

3Q23

2Q23

1Q23

4Q22
Fabless

78%

79%

79%

77%

81%
IDM

22%

21%

21%

23%

19%

Revenue from the communication segment accounted for 47%, while business from computer applications remained at 13%. Business from consumer applications was 23% as other segments declined to 17% of revenue.

Revenue Breakdown by Application ⁽¹⁾
Application

4Q23

3Q23

2Q23

1Q23

4Q22
Computer

13%

13%

9%

9%

12%
Communication

47%

46%

44%

44%

45%
Consumer

23%

23%

26%

24%

25%
Others

17%

18%

21%

23%

18%

(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) remained flat in 4Q23.

( To view blended ASP trend, please click here for 4Q23 ASP )

Shipment and Utilization Rate ³

Wafer shipments decreased 2.5% QoQ to 775K in the fourth quarter, while quarterly capacity was 1,204K. Overall utilization rate in 4Q23 declined to 66%.

Wafer Shipments


4Q23

3Q23

2Q23

1Q23

4Q22
Wafer Shipments (12” K equivalents)

775

795

814

811

984











Quarterly Capacity Utilization Rate


4Q23

3Q23

2Q23

1Q23

4Q22
Utilization Rate

66%

67%

71%

70%

90%
Total Capacity (12” K equivalents)

1,204

1,182

1,167

1,121

1,130

Capacity ⁴

Total capacity in the fourth quarter increased to 1,204K 12-inch equivalent wafers. Capacity will grow in the first quarter of 2024 to 1,212K 12-inch equivalent wafers, reflecting the continuous capacity expansion at 12A P6 facility.

Annual Capacity in thousands of wafers

Quarterly Capacity in thousands of wafers
FAB
Geometry (um)
2023
2022
2021
2020

FAB
1Q24E
4Q23
3Q23
2Q23
WTK
6"
5 – 0.15
328
335
329
371

WTK
6"
82
83
83
82
8A
8"
3 – 0.11
811
765
755
802

8A
8"
206
207
207
207
8C
8"
0.35 – 0.11
473
459
459
452

8C
8"
119
119
120
120
8D
8"
0.18 – 0.09
440
410
380
371

8D
8"
118
118
111
109
8E
8"
0.6 – 0.14
490
469
457
449

8E
8"
130
131
122
122
8F
8"
0.18 – 0.11
570
550
514
485

8F
8"
144
145
145
145
8S
8"
0.18 – 0.11
447
443
408
373

8S
8"
113
114
112
112
8N
8"
0.5 – 0.11
996
952
917
917

8N
8"
252
254
250
248
12A
12"
0.13 – 0.014
1,305
1,170
1,070
1,044

12A
12"
358
346
333
321
12i
12"
0.13 – 0.040
655
655
641
628

12i
12"
164
164
164
164
12X
12"
0.080 – 0.022
317
314
284
217

12X
12"
79
80
80
80
12M
12"
0.13 – 0.040
438
436
395
391

12M
12"
110
110
110
110
Total ⁽¹⁾
4,674
4,458
4,201
4,083

Total
1,212
1,204
1,182
1,167
YoY Growth Rate
5%
6%
3%
13%

⁽¹⁾ One 6-inch wafer is converted into 0.25 (6 ² /12 ² ) 12-inch equivalent wafer; one 8-inch wafer is converted into 0.44 (8 ² /12 ² ) 12-inch equivalent wafers. Total capacity figures are expressed in 12-inch equivalent wafers.

CAPEX

CAPEX spending in 4Q23 totaled US$657 million as 2023 CAPEX amounted to US$3.0 billion. 2024 cash-based CAPEX budget will be US$3.3 billion.

Capital Expenditure by Year - in US$ billion
Year

2023

2022

2021

2020

2019
CAPEX

$ 3.0

$ 2.7

$ 1.8

$ 1.0

$ 0.6

2024 CAPEX Plan

12"

Total

95%

US$3.3 billion

Brief Summary of Full Year 2023 Consolidated Results

Consolidated revenue in NTD declined 20.2% YoY to NT$222.53 billion, from NT$278.71 billion in 2022.
Gross profit decreased 38.2%, compared to a year ago, representing 34.9% of 2023 revenue.
Operating income decreased 44.5% year on year, accounting for 26.0% of 2023 revenue.
Net income attributable to shareholders of the parent fell 30.1% to NT$60.99 billion in 2023.
EPS was NT$4.93, or EPADS of US$0.803 for 2023.
22/28nm revenue contribution accounted for 31% in 2023.

Operating Results
(Amount: NT$ million)

2023


2022


YoY % change
Operating Revenues

222,533


278,705


(20.2
)
Gross Profit

77,744


125,764


(38.2
)
Operating Expenses

(23,855
)

(26,812
)

(11.0
)
Net Other Operating Income and Expenses

4,002


5,340


(25.0
)
Operating Income

57,891


104,292


(44.5
)
Net Non-Operating Income and Expenses

13,021


1,805


621.4

Income Tax Expense

(9,472
)

(18,079
)

(47.6
)
Net Income Attributable to Shareholders of the Parent

60,990


87,198


(30.1
)
EPS (NT$ per share)

4.93


7.09



(US$ per ADS)

0.803


1.154

Annual Sales Breakdown in Revenue for Foundry Segment

Region

2023

2022
North America

27%

24%
Asia Pacific

57%

61%
Europe

11%

9%
Japan

5%

6%





Technology

2023

2022
14nm and below

0%

0%
14nm<x<=28nm

31%

24%
28nm<x<=40nm

14%

18%
40nm<x<=65nm

19%

18%
65nm<x<=90nm

10%

8%
90nm<x<=0.13um

10%

12%
0.13um<x<=0.18um

9%

11%
0.18um<x<=0.35um

5%

7%
0.5um and above

2%

2%





Customer Type

2023

2022
Fabless

78%

84%
IDM

22%

16%





Application

2023

2022
Computer

11%

15%
Communication

45%

45%
Consumer

24%

26%
Others

20%

14%

First Quarter 2024 Outlook & Guidance

Quarter-over-Quarter Guidance:

Wafer Shipments: Will increase by approximately 2-3%
ASP in USD: Will decrease by 5%
Gross Profit Margin: Will be approximately 30%
Capacity Utilization: low-60% range
2024 CAPEX: US$3.3 billion

Recent Developments / Announcements

Oct. 31, 2023

UMC Launches W2W 3D IC Project with Partners, Targeting Growth in Edge AI

Dec. 11, 2023

UMC recognized for ESG strength with DJSI World & Emerging Markets Index and MSCI-ESG AA Rating

Jan. 2, 2024

UMC Achieves AAA Certification for Excellence in Intellectual Property Management and Protection

Jan. 25, 2024

Intel and UMC Announce New Foundry Collaboration

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

Conference Call / Webcast Announcement

Wednesday, January 31, 2024

Time: 5:00 PM (Taipei) / 4:00 AM (New York) / 09:00 AM (London)

Dial-in numbers and Access Codes:

Taiwan Number:

02 3396 1191

Taiwan Toll Free:

0080 185 4007

US Toll Free:

+1 866 212 5567

Other Areas:

+886 2 3396 1191

Access Code:

1029531#

A live webcast and replay of the 4Q23 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, BCD, etc. Most of UMC's 12-in and 8-in fabs with its core R&D are in Taiwan, with additional ones throughout Asia. UMC has a total of 12 fabs in production with a combined capacity of more than 400,000 wafers per month (12-in equivalent), and all of them are certified with IATF 16949 automotive quality standards. UMC is headquartered in Hsinchu, Taiwan, plus local offices in the United States, Europe, China, Japan, Korea, and Singapore, with a worldwide total of 20,000 employees. 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 fourth 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 “First Quarter 2024 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 December 31, 2023
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)







December 31, 2023

US$

NT$

%
Assets





Current assets





Cash and cash equivalents
4,316

132,554

23.7%
Accounts receivable, net
963

29,586

5.3%
Inventories, net
1,163

35,713

6.4%
Other current assets
618

18,944

3.4%
Total current assets
7,060

216,797

38.8%






Non-current assets





Funds and investments
2,418

74,255

13.3%
Property, plant and equipment
7,786

239,123

42.8%
Right-of-use assets
228

7,000

1.3%
Other non-current assets
717

22,012

3.8%
Total non-current assets
11,149

342,390

61.2%
Total assets
18,209

559,187

100.0%






Liabilities





Current liabilities





Short-term loans
441

13,530

2.4%
Payables
1,923

59,051

10.6%
Current portion of long-term liabilities
521

16,007

2.9%
Other current liabilities
339

10,427

1.8%
Total current liabilities
3,224

99,015

17.7%






Non-current liabilities





Bonds payable
800

24,580

4.4%
Long-term loans
673

20,656

3.7%
Lease liabilities, noncurrent
159

4,879

0.9%
Other non-current liabilities
1,644

50,478

9.0%
Total non-current liabilities
3,276

100,593

18.0%
Total liabilities
6,500

199,608

35.7%






Equity





Equity attributable to the parent company





Capital
4,080

125,298

22.4%
Additional paid-in capital
467

14,325

2.5%
Retained earnings and other components of equity
7,151

219,615

39.3%
Total equity attributable to the parent company
11,698

359,238

64.2%
Non-controlling interests
11

341

0.1%
Total equity
11,709

359,579

64.3%
Total liabilities and equity
18,209

559,187

100.0%






Note?New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2023 exchange rate of NT $30.71 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



December 31, 2023

December 31, 2022

Chg.

December 31, 2023

September 30, 2023

Chg.

US$

NT$

US$

NT$

%

US$

NT$

US$

NT$

%
Operating revenues
1,790


54,958


2,209


67,836


(19.0
%)

1,790


54,958


1,858


57,069


(3.7
%)
Operating costs
(1,210
)

(37,152
)

(1,261
)

(38,712
)

(4.0
%)

(1,210
)

(37,152
)

(1,192
)

(36,608
)

1.5
%
Gross profit
580


17,806


948


29,124


(38.9
%)

580


17,806


666


20,461


(13.0
%)

32.4
%

32.4
%

42.9
%

42.9
%



32.4
%

32.4
%

35.9
%

35.9
%


Operating expenses



















- Sales and marketing expenses
(27
)

(823
)

(31
)

(953
)

(13.6
%)

(27
)

(823
)

(24
)

(735
)

12.0
%
- General and administrative expenses
(63
)

(1,930
)

(79
)

(2,438
)

(20.8
%)

(63
)

(1,930
)

(56
)

(1,731
)

11.6
%
- Research and development expenses
(128
)

(3,945
)

(111
)

(3,407
)

15.8
%

(128
)

(3,945
)

(106
)

(3,255
)

21.2
%
- Expected credit impairment gain (loss)
2


63


(0
)

(0
)

-


2


63


(0
)

(1
)

-

Subtotal
(216
)

(6,635
)

(221
)

(6,798
)

(2.4
%)

(216
)

(6,635
)

(186
)

(5,722
)

16.0
%
Net other operating income and expenses
41


1,252


43


1,311


(4.5
%)

41


1,252


19


573


118.7
%
Operating income
405


12,423


770


23,637


(47.4
%)

405


12,423


499


15,312


(18.9
%)

22.6
%

22.6
%

34.8
%

34.8
%



22.6
%

22.6
%

26.8
%

26.8
%






















Net non-operating income and expenses
72


2,227


29


889


150.4
%

72


2,227


108


3,336


(33.3
%)
Income from continuing operations before income tax
477


14,650


799


24,526


(40.3
%)

477


14,650


607


18,648


(21.4
%)

26.7
%

26.7
%

36.2
%

36.2
%



26.7
%

26.7
%

32.7
%

32.7
%






















Income tax expense
(47
)

(1,457
)

(176
)

(5,406
)

(73.0
%)

(47
)

(1,457
)

(87
)

(2,682
)

(45.7
%)
Net income
430


13,193


623


19,120


(31.0
%)

430


13,193


520


15,966


(17.4
%)

24.0
%

24.0
%

28.2
%

28.2
%



24.0
%

24.0
%

28.0
%

28.0
%






















Other comprehensive income (loss)
(124
)

(3,808
)

14


429


-


(124
)

(3,808
)

232


7,138


-





















Total comprehensive income (loss)
306


9,385


637


19,549


(52.0
%)

306


9,385


752


23,104


(59.4
%)




















Net income attributable to:



















Shareholders of the parent
430


13,195


621


19,068


(30.8
%)

430


13,195


520


15,971


(17.4
%)
Non-controlling interests
(0
)

(2
)

2


52


-


(0
)

(2
)

(0
)

(5
)

(61.1
%)




















Comprehensive income (loss) attributable to:



















Shareholders of the parent
306


9,387


635


19,497


(51.9
%)

306


9,387


752


23,109


(59.4
%)
Non-controlling interests
(0
)

(2
)

2


52


-


(0
)

(2
)

(0
)

(5
)

(59.9
%)




















Earnings per share-basic
0.035


1.06


0.050


1.54




0.035


1.06


0.042


1.29



Earnings per ADS ⁽²⁾
0.173


5.30


0.251


7.70




0.173


5.30


0.210


6.45



Weighted average number of shares outstanding (in millions)


12,414




12,349






12,414




12,371











































Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2023 exchange rate of NT $30.71 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 Twelve-Month Period Ended

December 31, 2023

December 31, 2023

US$

NT$

%

US$

NT$

%
Operating revenues
1,790


54,958


100.0
%

7,246


222,533


100.0
%
Operating costs
(1,210
)

(37,152
)

(67.6
%)

(4,714
)

(144,789
)

(65.1
%)
Gross profit
580


17,806


32.4
%

2,532


77,744


34.9
%












Operating expenses











- Sales and marketing expenses
(27
)

(823
)

(1.5
%)

(105
)

(3,225
)

(1.5
%)
- General and administrative expenses
(63
)

(1,930
)

(3.5
%)

(243
)

(7,477
)

(3.3
%)
- Research and development expenses
(128
)

(3,945
)

(7.2
%)

(433
)

(13,284
)

(6.0
%)
- Expected credit impairment gain
2


63


0.1
%

4


131


0.1
%
Subtotal
(216
)

(6,635
)

(12.1
%)

(777
)

(23,855
)

(10.7
%)
Net other operating income and expenses
41


1,252


2.3
%

130


4,002


1.8
%
Operating income
405


12,423


22.6
%

1,885


57,891


26.0
%












Net non-operating income and expenses
72


2,227


4.1
%

424


13,021


5.9
%
Income from continuing operations before income tax
477


14,650


26.7
%

2,309


70,912


31.9
%












Income tax expense
(47
)

(1,457
)

(2.7
%)

(308
)

(9,472
)

(4.3
%)
Net income
430


13,193


24.0
%

2,001


61,440


27.6
%












Other comprehensive income (loss)
(124
)

(3,808
)

(6.9
%)

209


6,418


2.9
%












Total comprehensive income (loss)
306


9,385


17.1
%

2,210


67,858


30.5
%












Net income attributable to:











Shareholders of the parent
430


13,195


24.0
%

1,986


60,990


27.4
%
Non-controlling interests
(0
)

(2
)

(0.0
%)

15


450


0.2
%












Comprehensive income (loss) attributable to:











Shareholders of the parent
306


9,387


17.1
%

2,195


67,408


30.3
%
Non-controlling interests
(0
)

(2
)

(0.0
%)

15


450


0.2
%












Earnings per share-basic
0.035


1.06




0.161


4.93



Earnings per ADS ⁽²⁾
0.173


5.30




0.803


24.65















Weighted average number of shares outstanding (in millions)


12,414






12,371















Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2023 exchange rate of NT $30.71 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statement of Cash Flows
For The Twelve-Month Period Ended December 31, 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
2,309


70,912

Depreciation & Amortization
1,318


40,484

Share of profit of associates and joint ventures
(225
)

(6,913
)
Income tax paid
(521
)

(16,012
)
Changes in working capital & others
(81
)

(2,471
)
Net cash provided by operating activities
2,800


86,000





Cash flows from investing activities :



Increase in financial assets measured at amortized cost
(183
)

(5,617
)
Acquisition of property, plant and equipment
(2,979
)

(91,474
)
Acquisition of intangible assets
(83
)

(2,547
)
Others
61


1,851

Net cash used in investing activities
(3,184
)

(97,787
)




Cash flows from financing activities :



Increase in short-term loans
441


13,530

Proceeds from bonds issued
326


10,000

Proceeds from long-term loans
502


15,416

Repayments of long-term loans
(376
)

(11,558
)
Increase in guarantee deposits
339


10,423

Decrease in other financial liabilities
(691
)

(21,209
)
Cash dividends
(1,466
)

(45,015
)
Others
(22
)

(673
)
Net cash used in financing activities
(947
)

(29,086
)




Effect of exchange rate changes on cash and cash equivalents
(13
)

(392
)
Net decrease in cash and cash equivalents
(1,344
)

(41,265
)




Cash and cash equivalents at beginning of period
5,660


173,819





Cash and cash equivalents at end of period
4,316


132,554









Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2023 exchange rate of NT $30.71 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 December 31, 2023, the three-month period ending September 30, 2023, and the equivalent three-month period that ended December 31, 2022. For all 4Q23 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the December 31, 2023 exchange rate of NT$ 30.71 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240131708568/en/

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

Company Name:	United Microelectronics Corporation
Stock Symbol:	UMC
Market:	NYSE
Website:	umc.com

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