TAIPEI, Taiwan--(BUSINESS WIRE)--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 2020.
Second quarter consolidated revenue was NT$44.39 billion, up 5.0% QoQ from NT$42.27 billion in 1Q20 and up 23.2% YoY from NT$36.03 billion in 2Q19. Consolidated gross margin for 2Q20 was 23.1%. Net income attributable to the stockholders of the parent was NT$6.68 billion, with earnings per ordinary share of NT$0.55.
Jason Wang, co-president of UMC, said, “During the second quarter, consolidated operating margin reached 13.2%, while utilization rate increased to 98%, lifting wafer shipments to 2.22 million 8-inch equivalent wafers. The increase in wafer shipments mainly reflected computing segment demand for connectivity, display driver and flash controller as well as inventory replenishment in computing markets. As we continue to strive to supply world-class foundry services, our efforts have been appreciated by our customers. In Q2, Texas Instruments recognized UMC with the 2019 Supplier Excellence Award for demonstrating exemplary performance in the areas of cost, environmental & social responsibility, technology, responsiveness, assurance of supply and quality. In addition to serving customers to the best of our ability, UMC also increased 2019 cash dividend distribution to approximately NT$0.803 per share, reflecting the recent company buyback of treasury shares.”
Co-president Wang continued, “Looking into the third quarter, current market demand remains strong. We have experienced a surge in 28nm tape outs during the first half of 2020 compared to a year ago, and expect additional 28nm and 22nm product tape outs in the third quarter. We are also moving new 28nm products into volume production for wireless applications such as 4G and 5G smartphones, which will enhance our business traction and diversify UMC’s customer exposure across different 28nm market segments. Moreover, we have observed efforts to minimize supply chain disruptions amid uncertainty during the COVID-19 pandemic, while inventory replenishment is continuing across multiple market segments. With the efforts continuing to push customer adoption of UMC’s specialty technologies, our ROI-driven corporate strategy remains unchanged. As UMC secures new business, we will closely examine returns on invested capital to optimize the company’s capital deployment and further enhance our financial performance.”
Summary of Operating Results
Operating Results |
|||||
(Amount: NT$ million) |
2Q20 |
1Q20 |
QoQ %
|
2Q19 |
YoY %
|
Operating Revenues |
44,386 |
42,268 |
5.0 |
36,031 |
23.2 |
Gross Profit |
10,257 |
8,122 |
26.3 |
5,652 |
81.5 |
Operating Expenses |
(5,677) |
(5,722) |
(0.8) |
(5,578) |
1.8 |
Net Other Operating Income and Expenses |
1,266 |
1,014 |
24.9 |
1,687 |
(25.0) |
Operating Income |
5,846 |
3,414 |
71.2 |
1,761 |
232.0 |
Net Non-Operating Income and Expenses |
818 |
(2,592) |
- |
(617) |
- |
Net Income Attributable to Stockholders of the Parent |
6,681 |
2,207 |
202.7 |
1,740 |
283.8 |
EPS (NT$ per share) |
0.55 |
0.19 |
|
0.15 |
|
(US$ per ADS) |
0.093 |
0.032 |
|
0.025 |
|
Operating revenues in 2Q20 grew 5.0% to NT$44.39 billion. Revenue contribution from 40nm and below technologies increased to 36%. Gross profit increased 26.3% QoQ to NT$10.26 billion, or 23.1% of revenue. Operating expenses declined 0.8% to NT$5.68 billion. Net other operating income increased 24.9% to NT$1.27 billion, leading to an operating income of NT$5.85 billion. Net non-operating income was NT$818 million. Net income attributable to stockholders of the parent tripled QoQ to NT$6.68 billion.
Earnings per ordinary share for the quarter was NT$0.55. Earnings per ADS was US$0.093. The basic weighted average number of outstanding shares in 2Q20 was 12,193,149,897, compared with 11,782,936,260 shares in 1Q20 and 11,817,657,562 shares in 2Q19. The diluted weighted average number of outstanding shares was 12,262,774,432 in 2Q20, compared with 13,087,825,472 shares in 1Q20 and 13,079,662,179 shares in 2Q19. The fully diluted share count on June 30, 2020 was approximately 12,215,996,000. On June 30, 2020, UMC held 76 million treasury shares acquired from the 21th share buy-back programs.
Detailed Financials Section
COGS & Expenses |
|||||
(Amount: NT$ million) |
2Q20 |
1Q20 |
QoQ %
|
2Q19 |
YoY %
|
Operating Revenues |
44,386 |
42,268 |
5.0 |
36,031 |
23.2 |
COGS |
(34,129) |
(34,146) |
(0.0) |
(30,379) |
12.3 |
Depreciation |
(10,544) |
(11,124) |
(5.2) |
(11,424) |
(7.7) |
Other Mfg. Costs |
(23,585) |
(23,022) |
2.4 |
(18,955) |
24.4 |
Gross Profit |
10,257 |
8,122 |
26.3 |
5,652 |
81.5 |
Gross Margin (%) |
23.1% |
19.2% |
|
15.7% |
|
Operating Expenses |
(5,677) |
(5,722) |
(0.8) |
(5,578) |
1.8 |
G&A |
(1,537) |
(1,543) |
(0.3) |
(1,251) |
23.0 |
Sales & Marketing |
(929) |
(1,040) |
(10.7) |
(953) |
(2.6) |
R&D |
(3,203) |
(3,185) |
0.6 |
(2,787) |
14.9 |
Expected Credit Impairment Gain (Loss) |
(8) |
46 |
- |
(587) |
(98.7) |
Net Other Operating Income & Expenses |
1,266 |
1,014 |
24.9 |
1,687 |
(25.0) |
Operating Income |
5,846 |
3,414 |
71.2 |
1,761 |
232.0 |
Operating revenues grew 5.0% QoQ to NT$44.39 billion. COGS remained flat at NT$34.13 billion as depreciation declined 5.2% to NT$10.54 billion, which was offset by other manufacturing costs increasing 2.4% to NT$23.59 billion, mainly due to the increase in wafer shipments. Gross profit grew 26.3% to NT$10.26 billion, driven by product mix enhancement and an increase in overall utilization rate. Operating expenses remained flat at NT$5.68 billion, as sales and marketing declined 10.7% QoQ to NT$929 million. G&A expenses remained flat at NT$1.54 billion. R&D expenses increased 0.6% sequentially to NT$3.20 billion, representing 7.2% of 2Q20 operating revenues. Net other operating income increased to NT$1.27 billion. In 2Q20, operating income increased 71.2% QoQ to NT$5.85 billion.
Non-Operating Income and Expenses |
|||
(Amount: NT$ million) |
2Q20 |
1Q20 |
2Q19 |
Non-Operating Income and Expenses |
818 |
(2,592) |
(617) |
Net Interest Income and Expenses |
(307) |
(368) |
(497) |
Net Investment Gain and Loss |
1643 |
(1,974) |
69 |
Exchange Gain and Loss |
(411) |
(148) |
(182) |
Other Gain and Loss |
(107) |
(102) |
(7) |
Net non-operating income in 2Q20 was NT$818 million, resulting from NT$1.64 billion in net investment gain, partially offset by NT$411 million in exchange loss, NT$307 million in net interest expense and NT$107 million in other loss.
Cash Flow Summary |
||
(Amount: NT$ million) |
For the 3-Month Period Ended Jun. 30, 2020 |
For the 3-Month Period Ended Mar. 31, 2020 |
Cash Flow from Operating Activities |
16,403 |
14,732 |
Net income before tax |
6,664 |
822 |
Depreciation & Amortization |
12,248 |
12,497 |
Expected credit impairment loss (gain) |
8 |
(46) |
Share of loss (profit) of associates and joint ventures |
(914) |
847 |
Income tax received (paid) |
505 |
(151) |
Changes in working capital & others |
(2,108) |
763 |
Cash Flow from Investing Activities |
(7,877) |
(9,111) |
Acquisition of PP&E |
(4,270) |
(3,631) |
Acquisition of intangible assets |
(448) |
(453) |
Increase in other financial assets |
(2,979) |
(5,114) |
Others |
(180) |
87 |
Cash Flow from Financing Activities |
(2,947) |
(5,849) |
Bank loans |
9,483 |
(2,563) |
Redemption of bonds |
(11,203) |
(2,500) |
Treasury stock acquired |
(1,201) |
- |
Others |
(26) |
(786) |
Effect of Exchange Rate |
(873) |
(98) |
Net Cash Flow |
4,706 |
(326) |
Beginning balance |
95,166 |
95,492 |
Ending balance |
99,872 |
95,166 |
In 2Q20, cash inflow from operating activities was NT$16.40 billion. Cash outflow from investing activities totaled NT$7.88 billion, which included NT$4.69 billion in capital expenditure, resulting in free cash flow of NT$11.72 billion. Cash outflow from financing activities totaled NT$2.95 billion, primarily from NT$11.20 billion in the redemption of bonds and NT$1.20 billion in the acquisition of treasury share buyback, offset by NT$9.48 billion in bank loans. Net cash inflow in 2Q20 was NT$4.71 billion. Over the next 12 months, the company expects to repay NT$5.71 billion in bank loans.
Current Assets |
|||
(Amount: NT$ billion) |
2Q20 |
1Q20 |
2Q19 |
Cash and Cash Equivalents |
99.87 |
95.17 |
90.36 |
Notes & Accounts Receivable |
27.26 |
28.57 |
24.39 |
Days Sales Outstanding |
57 |
59 |
60 |
Inventories, net |
23.34 |
22.13 |
19.63 |
Days of Inventory |
61 |
59 |
58 |
Total Current Assets |
167.96 |
159.60 |
150.51 |
Cash and cash equivalents increased to NT$99.87 billion. Days of inventory increased to 61 days.
Liabilities |
|||
(Amount: NT$ billion) |
2Q20 |
1Q20 |
2Q19 |
Total Current Liabilities |
65.11 |
61.10 |
77.06 |
Notes & Accounts Payable |
8.56 |
8.92 |
6.91 |
Short-Term Credit / Bonds |
17.32 |
25.35 |
39.43 |
Payables on Equipment |
3.22 |
2.78 |
2.60 |
Dividends Payable |
9.77 |
- |
6.92 |
Other |
26.24 |
24.05 |
21.20 |
Long-Term Credit / Bonds |
53.50 |
47.75 |
45.39 |
Long-Term Investment Liabilities |
19.69 |
19.89 |
20.83 |
Total Liabilities |
158.34 |
149.64 |
167.84 |
Debt to Equity |
76% |
71% |
83% |
Current liabilities increased to NT$65.11 billion, mainly due to NT$9.77 billion in dividends payable, which was partially offset by the decline in short-term credit/bonds. Total liabilities increased to NT$158.34 billion, leading to a debt to equity ratio of 76%.
Analysis of Revenue2
Revenue Breakdown by Region |
|||||
Region |
2Q20 |
1Q20 |
4Q19 |
3Q19 |
2Q19 |
North America |
31% |
29% |
30% |
33% |
31% |
Asia Pacific |
55% |
56% |
55% |
59% |
59% |
Europe |
5% |
6% |
6% |
6% |
7% |
Japan |
9% |
9% |
9% |
2% |
3% |
Revenue from North America increased to 31%, while revenue contribution from Asia Pacific customers declined to 55%. Revenue from Japan remained at 9% while European business was 5%.
Revenue Breakdown by Geometry |
|||||
Geometry |
2Q20 |
1Q20 |
4Q19 |
3Q19 |
2Q19 |
14nm and below |
0% |
0% |
0% |
0% |
0% |
14nm<x<=28nm |
13% |
9% |
10% |
12% |
13% |
28nm<x<=40nm |
23% |
25% |
22% |
26% |
24% |
40nm<x<=65nm |
16% |
16% |
16% |
14% |
14% |
65nm<x<=90nm |
13% |
15% |
18% |
12% |
12% |
90nm<x<=0.13um |
11% |
11% |
11% |
11% |
14% |
0.13um<x<=0.18um |
13% |
13% |
12% |
13% |
12% |
0.18um<x<=0.35um |
8% |
8% |
8% |
9% |
8% |
0.5um and above |
3% |
3% |
3% |
3% |
3% |
Revenue contribution from 28nm increased to 13% while 40nm business represented 23% of sales.
Revenue Breakdown by Customer Type |
|||||
Customer Type |
2Q20 |
1Q20 |
4Q19 |
3Q19 |
2Q19 |
Fabless |
88% |
88% |
87% |
92% |
93% |
IDM |
12% |
12% |
13% |
8% |
7% |
Revenue from fabless customers was 88% of revenue.
Revenue Breakdown by Application (1) |
|||||
Application |
2Q20 |
1Q20 |
4Q19 |
3Q19 |
2Q19 |
Computer |
14% |
13% |
13% |
13% |
14% |
Communication |
51% |
54% |
54% |
54% |
52% |
Consumer |
24% |
24% |
24% |
26% |
28% |
Others |
11% |
9% |
9% |
7% |
6% |
Revenue from the computer segment increased to 14%, while business from communication applications declined to 51%. Business from consumer applications remained unchanged at 24% as other segments increased to 11%.
(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
Blended average selling price (ASP) increased in 2Q20.
(To view blended ASP trend, please click here for 2Q20 ASP)
Shipment and Utilization Rate3
Wafer Shipments |
|||||
|
2Q20 |
1Q20 |
4Q19 |
3Q19 |
2Q19 |
Wafer Shipments
|
2,218 |
2,148 |
2,042 |
1,806 |
1,730 |
|
|||||
Quarterly Capacity Utilization Rate |
|||||
|
2Q20 |
1Q20 |
4Q19 |
3Q19 |
2Q19 |
Utilization Rate |
98% |
93% |
92% |
91% |
88% |
Total Capacity
|
2,291 |
2,278 |
2,237 |
2,004 |
1,970 |
In 2Q20, wafer shipments increased 3.3% QoQ to 2,218K, while quarterly capacity rose 0.6% QoQ to 2,291K. As a result, the overall utilization rate in 2Q20 was 98%.
Capacity4
Total capacity in the second quarter totaled 2,291K 8-inch equivalent wafers. We foresee third quarter capacity will grow to 2,308K 8-inch equivalent wafers, mainly reflecting capacity increases at Fab 12i and Fab 12X.
Annual Capacity in thousands of wafers |
|
Quarterly Capacity in thousands of wafers |
||||||||||
FAB |
Geometry
|
2019 |
2018 |
2017 |
2016 |
|
FAB |
3Q20E |
2Q20 |
1Q20 |
4Q19 |
|
WTK |
6" |
3.5 – 0.45 |
370 |
396 |
422 |
423 |
|
WTK |
93 |
93 |
92 |
93 |
Fab 8A |
8" |
0.5 – 0.25 |
825 |
825 |
825 |
827 |
|
Fab 8A |
201 |
201 |
200 |
207 |
Fab 8C |
8" |
0.35 – 0.11 |
436 |
383 |
357 |
348 |
|
Fab 8C |
113 |
113 |
112 |
111 |
Fab 8D |
8" |
0.13 – 0.09 |
359 |
347 |
341 |
342 |
|
Fab 8D |
93 |
93 |
92 |
90 |
Fab 8E |
8" |
0.5 – 0.18 |
426 |
418 |
418 |
419 |
|
Fab 8E |
113 |
113 |
112 |
111 |
Fab 8F |
8" |
0.18 – 0.11 |
434 |
431 |
417 |
401 |
|
Fab 8F |
122 |
122 |
121 |
110 |
Fab 8S |
8" |
0.18 – 0.11 |
372 |
372 |
347 |
336 |
|
Fab 8S |
93 |
93 |
93 |
93 |
Fab 8N |
8" |
0.5 – 0.11 |
831 |
771 |
753 |
750 |
|
Fab 8N |
230 |
230 |
228 |
218 |
Fab 12A |
12" |
0.13 – 0.014 |
997 |
997 |
970 |
885 |
|
Fab 12A |
261 |
261 |
260 |
250 |
Fab 12i |
12" |
0.13 – 0.040 |
595 |
555 |
537 |
584 |
|
Fab 12i |
160 |
155 |
154 |
155 |
Fab 12X |
12" |
0.040 – 0.028 |
203 |
183 |
97 |
9 |
|
Fab 12X |
56 |
53 |
52 |
51 |
Fab 12M |
12" |
0.090 – 0.040 |
98 |
- |
- |
- |
|
Fab 12M |
98 |
98 |
97 |
98 |
Total(1) |
8,148 |
7,673 |
7,304 |
6,983 |
|
Total |
2,308 |
2,291 |
2,278 |
2,237 |
||
YoY Growth Rate |
6% |
5% |
5% |
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
| Capital Expenditure by Year - in US$ billion | |||||
| Year | 2019 |
2018 |
2017 |
2016 |
2015 |
| CAPEX | $0.60 |
$0.70 |
$1.40 |
$2.80 |
$1.90 |
| 2020 CAPEX Plan | |||||
| 8" | 12" | Total | |||
15% |
85% |
US$1.0 billion | |||
CAPEX spending in 2Q20 was US$157 million, leading to a total of US$288 million in capital expenditure investment during the first half of 2020. Full year 2020 CAPEX is budgeted at US$1.0 billion.
Third Quarter 2020 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Wafer Shipments: To remain flat
- ASP in USD: To remain flat
- Gross Profit Margin: approximately 20%
- Capacity Utilization: mid-90% range
- 2020 CAPEX: US$1 billion
Recent Developments / Announcements
Jul 23, 2020 |
Cadence and UMC Certify mmWave Reference Flow for 28HPC+ Process |
Jun 24, 2020 |
|
May 7, 2020 |
UMC Ranked Top 5% in Corporate Governance Evaluation for 6th Consecutive Year |
Apr 28, 2020 |
UMC Files Form 20-F for 2019 with US Securities and Exchange Commission |
Apr 27, 2020 |
Please visit UMC’s website for further details regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, July 29, 2020
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 2Q20 results announcement will be available at
www.umc.com under the “Investors / Events” section.
About UMC
UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry. The company provides high quality IC production with a focus on both logic and specialty technologies to serve every major sector of the electronics industry. UMC’s comprehensive technology and manufacturing solutions include logic/RF, embedded high voltage, embedded flash, RFSOI/BCD and IATF-16949 automotive manufacturing certification for all its manufacturing facilities. UMC operates 12 fabs that are strategically located throughout Asia with a maximum capacity of more than 750,000 8-inch equivalent wafers per month. The company employs approximately 19,000 people worldwide, with offices in Taiwan, China, United States, Europe, Japan, Korea and Singapore. For more information, please visit: http://www.umc.com.
Safe Harbor Statements
This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding anticipated sales for first quarter; product releases and market shares; opportunities in the 5G and IoT markets; anticipated wafer demands in market segments; execution of corporate strategies; repayment of bank loans; expected foundry capacities; the ability to obtain new business opportunities; and information under the heading “First Quarter of 2020 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 risks 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, 2020 | |||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||
| June 30, 2020 | |||||||||||
| US$ | NT$ | % | |||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | 3,371 |
99,872 |
27.2% |
||||||||
| Notes & Accounts receivable, net | 920 |
27,260 |
7.4% |
||||||||
| Inventories, net | 788 |
23,342 |
6.4% |
||||||||
| Other current assets | 589 |
17,481 |
4.7% |
||||||||
| Total current assets | 5,668 |
167,955 |
45.7% |
||||||||
| Non-current assets | |||||||||||
| Funds and investments | 1,415 |
41,939 |
11.4% |
||||||||
| Property, plant and equipment | 4,449 |
131,817 |
35.9% |
||||||||
| Right-of-use assets | 274 |
8,117 |
2.2% |
||||||||
| Other non-current assets | 598 |
17,716 |
4.8% |
||||||||
| Total non-current assets | 6,736 |
199,589 |
54.3% |
||||||||
| Total assets | 12,404 |
367,544 |
100.0% |
||||||||
| Liabilities | |||||||||||
| Current liabilities | |||||||||||
| Short-term loans | 324 |
9,612 |
2.6% |
||||||||
| Payables | 1,004 |
29,763 |
8.1% |
||||||||
| Dividends payable | 330 |
9,765 |
2.7% |
||||||||
| Current portion of long-term liabilities | 260 |
7,712 |
2.1% |
||||||||
| Other current liabilities | 279 |
8,256 |
2.2% |
||||||||
| Total current liabilities | 2,197 |
65,108 |
17.7% |
||||||||
| Non-current liabilities | |||||||||||
| Bonds payable | 563 |
16,689 |
4.5% |
||||||||
| Long-term loans | 1,242 |
36,807 |
10.0% |
||||||||
| Lease liabilities, noncurrent | 182 |
5,382 |
1.5% |
||||||||
| Other non-current liabilities | 1,160 |
34,355 |
9.4% |
||||||||
| Total non-current liabilities | 3,147 |
93,233 |
25.4% |
||||||||
| Total liabilities | 5,344 |
158,341 |
43.1% |
||||||||
| Equity | |||||||||||
| Equity attributable to the parent company | |||||||||||
| Capital | 4,125 |
122,224 |
33.3% |
||||||||
| Additional paid-in capital | 1,378 |
40,828 |
11.1% |
||||||||
| Retained earnings, exchange differences on translation of foreign operations and unrealized gains or losses on financial assets measured at fair value through other comprehensive income |
1,600 |
47,395 |
12.9% |
||||||||
| Treasury stock | (45) |
(1,320) |
(0.4%) |
||||||||
| Total equity attributable to the parent company | 7,058 |
209,127 |
56.9% |
||||||||
| Non-controlling interests | 2 |
76 |
0.0% |
||||||||
| Total equity | 7,060 |
209,203 |
56.9% |
||||||||
| Total liabilities and equity | 12,404 |
367,544 |
100.0% |
||||||||
| Note：New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2020 exchange rate of NT $29.63 per U.S. Dollar. | |||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||||||||||
| Except Per Share and Per ADS Data | |||||||||||||||||||
| Year over Year Comparison | Quarter over Quarter Comparison | ||||||||||||||||||
| Three-Month Period Ended | Three-Month Period Ended | ||||||||||||||||||
| June 30, 2020 | June 30, 2019 | Chg. | June 30, 2020 | March 31, 2020 | Chg. | ||||||||||||||
| US$ | NT$ | US$ | NT$ | % | US$ | NT$ | US$ | NT$ | % | ||||||||||
| Operating revenues | 1,498 |
44,386 |
1,216 |
36,031 |
23.2% |
1,498 |
44,386 |
1,427 |
42,268 |
5.0% |
|||||||||
| Operating costs | (1,152) |
(34,129) |
(1,025) |
(30,379) |
12.3% |
(1,152) |
(34,129) |
(1,153) |
(34,146) |
(0.0%) |
|||||||||
| Gross profit | 346 |
10,257 |
191 |
5,652 |
81.5% |
346 |
10,257 |
274 |
8,122 |
26.3% |
|||||||||
23.1% |
23.1% |
15.7% |
15.7% |
23.1% |
23.1% |
19.2% |
19.2% |
||||||||||||
| Operating expenses | |||||||||||||||||||
| - Sales and marketing expenses | (31) |
(929) |
(32) |
(953) |
(2.6%) |
(31) |
(929) |
(35) |
(1,040) |
(10.7%) |
|||||||||
| - General and administrative expenses | (53) |
(1,537) |
(43) |
(1,251) |
23.0% |
(53) |
(1,537) |
(53) |
(1,543) |
(0.3%) |
|||||||||
| - Research and development expenses | (108) |
(3,203) |
(94) |
(2,787) |
14.9% |
(108) |
(3,203) |
(107) |
(3,185) |
0.6% |
|||||||||
| - Expected credit impairment gain (loss) | (0) |
(8) |
(20) |
(587) |
(98.7%) |
(0) |
(8) |
2 |
46 |
- |
|||||||||
| Subtotal | (192) |
(5,677) |
(189) |
(5,578) |
1.8% |
(192) |
(5,677) |
(193) |
(5,722) |
(0.8%) |
|||||||||
| Net other operating income and expenses | 43 |
1,266 |
57 |
1,687 |
(25.0%) |
43 |
1,266 |
34 |
1,014 |
24.9% |
|||||||||
| Operating income | 197 |
5,846 |
59 |
1,761 |
232.0% |
197 |
5,846 |
115 |
3,414 |
71.2% |
|||||||||
13.2% |
13.2% |
4.9% |
4.9% |
13.2% |
13.2% |
8.1% |
8.1% |
||||||||||||
| Net non-operating income and expenses | 28 |
818 |
(20) |
(617) |
- |
28 |
818 |
(87) |
(2,592) |
- |
|||||||||
| Income from continuing operations before income tax |
225 |
6,664 |
39 |
1,144 |
482.6% |
225 |
6,664 |
28 |
822 |
710.8% |
|||||||||
15.0% |
15.0% |
3.2% |
3.2% |
15.0% |
15.0% |
1.9% |
1.9% |
||||||||||||
| Income tax benefit (expense) | (21) |
(613) |
(7) |
(202) |
204.2% |
(21) |
(613) |
14 |
408 |
- |
|||||||||
| Net income | 204 |
6,051 |
32 |
942 |
542.1% |
204 |
6,051 |
42 |
1,230 |
391.8% |
|||||||||
13.6% |
13.6% |
2.6% |
2.6% |
13.6% |
13.6% |
2.9% |
2.9% |
||||||||||||
| Other comprehensive income (loss) | 107 |
3,178 |
25 |
743 |
328.2% |
107 |
3,178 |
(126) |
(3,714) |
- |
|||||||||
| Total comprehensive income (loss) | 311 |
9,229 |
57 |
1,685 |
447.9% |
311 |
9,229 |
(84) |
(2,484) |
- |
|||||||||
| Net income attributable to: | |||||||||||||||||||
| Stockholders of the parent | 225 |
6,681 |
59 |
1,740 |
283.8% |
225 |
6,681 |
74 |
2,207 |
202.7% |
|||||||||
| Non-controlling interests | (21) |
(630) |
(27) |
(798) |
(21.1%) |
(21) |
(630) |
(32) |
(977) |
(35.5%) |
|||||||||
| Comprehensive income (loss) attributable to: | |||||||||||||||||||
| Stockholders of the parent | 333 |
9,859 |
84 |
2,488 |
296.3% |
333 |
9,859 |
(55) |
(1,634) |
- |
|||||||||
| Non-controlling interests | (22) |
(630) |
(27) |
(803) |
(21.6%) |
(22) |
(630) |
(29) |
(850) |
(25.9%) |
|||||||||
| Earnings per share-basic | 0.019 |
0.55 |
0.005 |
0.15 |
0.019 |
0.55 |
0.006 |
0.19 |
|||||||||||
| Earnings per ADS (2) | 0.093 |
2.75 |
0.025 |
0.75 |
0.093 |
2.75 |
0.032 |
0.95 |
|||||||||||
| Weighted average number of shares | |||||||||||||||||||
| outstanding (in millions) | 12,193 |
11,818 |
12,193 |
11,783 |
|||||||||||||||
| Notes: | |||||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2020 exchange rate of NT $29.63 per U.S. Dollar. | |||||||||||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||||||||||
| Except Per Share and Per ADS Data | |||||||||||||||||||
| Year over Year Comparison | Quarter over Quarter Comparison | ||||||||||||||||||
| Three-Month Period Ended | Three-Month Period Ended | ||||||||||||||||||
| June 30, 2020 | June 30, 2019 | Chg. | June 30, 2020 | March 31, 2020 | Chg. | ||||||||||||||
| US$ | NT$ | US$ | NT$ | % | US$ | NT$ | US$ | NT$ | % | ||||||||||
| Operating revenues | 1,498 |
44,386 |
1,216 |
36,031 |
23.2% |
1,498 |
44,386 |
1,427 |
42,268 |
5.0% |
|||||||||
| Operating costs | (1,152) |
(34,129) |
(1,025) |
(30,379) |
12.3% |
(1,152) |
(34,129) |
(1,153) |
(34,146) |
(0.0%) |
|||||||||
| Gross profit | 346 |
10,257 |
191 |
5,652 |
81.5% |
346 |
10,257 |
274 |
8,122 |
26.3% |
|||||||||
23.1% |
23.1% |
15.7% |
15.7% |
23.1% |
23.1% |
19.2% |
19.2% |
||||||||||||
| Operating expenses | |||||||||||||||||||
| - Sales and marketing expenses | (31) |
(929) |
(32) |
(953) |
(2.6%) |
(31) |
(929) |
(35) |
(1,040) |
(10.7%) |
|||||||||
| - General and administrative expenses | (53) |
(1,537) |
(43) |
(1,251) |
23.0% |
(53) |
(1,537) |
(53) |
(1,543) |
(0.3%) |
|||||||||
| - Research and development expenses | (108) |
(3,203) |
(94) |
(2,787) |
14.9% |
(108) |
(3,203) |
(107) |
(3,185) |
0.6% |
|||||||||
| - Expected credit impairment gain (loss) | (0) |
(8) |
(20) |
(587) |
(98.7%) |
(0) |
(8) |
2 |
46 |
- |
|||||||||
| Subtotal | (192) |
(5,677) |
(189) |
(5,578) |
1.8% |
(192) |
(5,677) |
(193) |
(5,722) |
(0.8%) |
|||||||||
| Net other operating income and expenses | 43 |
1,266 |
57 |
1,687 |
(25.0%) |
43 |
1,266 |
34 |
1,014 |
24.9% |
|||||||||
| Operating income | 197 |
5,846 |
59 |
1,761 |
232.0% |
197 |
5,846 |
115 |
3,414 |
71.2% |
|||||||||
13.2% |
13.2% |
4.9% |
4.9% |
13.2% |
13.2% |
8.1% |
8.1% |
||||||||||||
| Net non-operating income and expenses | 28 |
818 |
(20) |
(617) |
- |
28 |
818 |
(87) |
(2,592) |
- |
|||||||||
| Income from continuing operations before income tax |
225 |
6,664 |
39 |
1,144 |
482.6% |
225 |
6,664 |
28 |
822 |
710.8% |
|||||||||
15.0% |
15.0% |
3.2% |
3.2% |
15.0% |
15.0% |
1.9% |
1.9% |
||||||||||||
| Income tax benefit (expense) | (21) |
(613) |
(7) |
(202) |
204.2% |
(21) |
(613) |
14 |
408 |
- |
|||||||||
| Net income | 204 |
6,051 |
32 |
942 |
542.1% |
204 |
6,051 |
42 |
1,230 |
391.8% |
|||||||||
13.6% |
13.6% |
2.6% |
2.6% |
13.6% |
13.6% |
2.9% |
2.9% |
||||||||||||
| Other comprehensive income (loss) | 107 |
3,178 |
25 |
743 |
328.2% |
107 |
3,178 |
(126) |
(3,714) |
- |
|||||||||
| Total comprehensive income (loss) | 311 |
9,229 |
57 |
1,685 |
447.9% |
311 |
9,229 |
(84) |
(2,484) |
- |
|||||||||
| Net income attributable to: | |||||||||||||||||||
| Stockholders of the parent | 225 |
6,681 |
59 |
1,740 |
283.8% |
225 |
6,681 |
74 |
2,207 |
202.7% |
|||||||||
| Non-controlling interests | (21) |
(630) |
(27) |
(798) |
(21.1%) |
(21) |
(630) |
(32) |
(977) |
(35.5%) |
|||||||||
| Comprehensive income (loss) attributable to: | |||||||||||||||||||
| Stockholders of the parent | 333 |
9,859 |
84 |
2,488 |
296.3% |
333 |
9,859 |
(55) |
(1,634) |
- |
|||||||||
| Non-controlling interests | (22) |
(630) |
(27) |
(803) |
(21.6%) |
(22) |
(630) |
(29) |
(850) |
(25.9%) |
|||||||||
| Earnings per share-basic | 0.019 |
0.55 |
0.005 |
0.15 |
0.019 |
0.55 |
0.006 |
0.19 |
|||||||||||
| Earnings per ADS (2) | 0.093 |
2.75 |
0.025 |
0.75 |
0.093 |
2.75 |
0.032 |
0.95 |
|||||||||||
| Weighted average number of shares | |||||||||||||||||||
| outstanding (in millions) | 12,193 |
11,818 |
12,193 |
11,783 |
|||||||||||||||
| Notes: | |||||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2020 exchange rate of NT $29.63 per U.S. Dollar. | |||||||||||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||
| Except Per Share and Per ADS Data | |||||||||||
| For the Three-Month Period Ended | For the Six-Month Period Ended | ||||||||||
| June 30, 2020 | June 30, 2020 | ||||||||||
| US$ | NT$ | % | US$ | NT$ | % | ||||||
| Operating revenues | 1,498 |
44,386 |
100.0% |
2,925 |
86,654 |
100.0% |
|||||
| Operating costs | (1,152) |
(34,129) |
(76.9%) |
(2,305) |
(68,274) |
(78.8%) |
|||||
| Gross profit | 346 |
10,257 |
23.1% |
620 |
18,380 |
21.2% |
|||||
| Operating expenses | |||||||||||
| - Sales and marketing expenses | (31) |
(929) |
(2.1%) |
(66) |
(1,968) |
(2.3%) |
|||||
| - General and administrative expenses | (53) |
(1,537) |
(3.5%) |
(103) |
(3,083) |
(3.5%) |
|||||
| - Research and development expenses | (108) |
(3,203) |
(7.2%) |
(216) |
(6,388) |
(7.4%) |
|||||
| - Expected credit impairment gain (loss) | (0) |
(8) |
(0.0%) |
1 |
39 |
0.1% |
|||||
| Subtotal | (192) |
(5,677) |
(12.8%) |
(384) |
(11,400) |
(13.1%) |
|||||
| Net other operating income and expenses | 43 |
1,266 |
2.9% |
77 |
2,280 |
2.6% |
|||||
| Operating income | 197 |
5,846 |
13.2% |
313 |
9,260 |
10.7% |
|||||
| Net non-operating income and expenses | 28 |
818 |
1.8% |
(60) |
(1,774) |
(2.1%) |
|||||
| Income from continuing operations before income tax |
225 |
6,664 |
15.0% |
253 |
7,486 |
8.6% |
|||||
| Income tax expense | (21) |
(613) |
(1.4%) |
(7) |
(205) |
(0.2%) |
|||||
| Net income | 204 |
6,051 |
13.6% |
246 |
7,281 |
8.4% |
|||||
| Other comprehensive income (loss) | 107 |
3,178 |
7.2% |
(18) |
(536) |
(0.6%) |
|||||
| Total comprehensive income (loss) | 311 |
9,229 |
20.8% |
228 |
6,745 |
7.8% |
|||||
| Net income attributable to: | |||||||||||
| Stockholders of the parent | 225 |
6,681 |
15.1% |
300 |
8,888 |
10.3% |
|||||
| Non-controlling interests | (21) |
(630) |
(1.5%) |
(54) |
(1,607) |
(1.9%) |
|||||
| Comprehensive income (loss) attributable to: | |||||||||||
| Stockholders of the parent | 333 |
9,859 |
22.2% |
278 |
8,225 |
9.5% |
|||||
| Non-controlling interests | (22) |
(630) |
(1.4%) |
(50) |
(1,480) |
(1.7%) |
|||||
| Earnings per share-basic | 0.019 |
0.55 |
0.025 |
0.74 |
|||||||
| Earnings per ADS (2) | 0.093 |
2.75 |
0.125 |
3.70 |
|||||||
| Weighted average number of shares outstanding (in millions) |
12,193 |
11,988 |
|||||||||
| Notes: | |||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2020 exchange rate of NT $29.63 per U.S. Dollar. | |||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||
| Consolidated Condensed Statement of Cash Flows | |||
| For The Six-Month Period Ended June 30, 2020 | |||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||
| US$ | NT$ | ||
| Cash flows from operating activities : | |||
| Net income before tax | 253 |
7,486 |
|
| Depreciation & Amortization | 835 |
24,745 |
|
| Changes in working capital & others | (37) |
(1,096) |
|
| Net cash provided by operating activities | 1,051 |
31,135 |
|
| Cash flows from investing activities : | |||
| Acquisition of property, plant and equipment | (267) |
(7,901) |
|
| Acquisition of intangible assets | (30) |
(901) |
|
| Increase in other financial assets | (273) |
(8,093) |
|
| Others | (3) |
(93) |
|
| Net cash used in investing activities | (573) |
(16,988) |
|
| Cash flows from financing activities : | |||
| Decrease in short-term loans | (74) |
(2,202) |
|
| Redemption of bonds | (462) |
(13,703) |
|
| Proceeds from long-term loans | 405 |
12,000 |
|
| Repayments of long-term loans | (97) |
(2,878) |
|
| Treasury stock acquired | (41) |
(1,201) |
|
| Others | (28) |
(812) |
|
| Net cash used in financing activities | (297) |
(8,796) |
|
| Effect of exchange rate changes on cash and cash equivalents | (33) |
(971) |
|
| Net increase in cash and cash equivalents | 148 |
4,380 |
|
| Cash and cash equivalents at beginning of period | 3,223 |
95,492 |
|
| Cash and cash equivalents at end of period | 3,371 |
99,872 |
|
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, 2020, the three-month period ending March 31, 2020, and the equivalent three-month period that ended June 30, 2019. For all 2Q20 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the June 30, 2020 exchange rate of NT$ 29.63 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.
