UMC Reports Fourth Quarter 2019 Results

4Q19 posts record high revenue of NT$41.85 billion; FY19 EPS up 41% YoY to NT$0.82

Fourth Quarter 2019 Overview1:

  • Revenue: NT$41.85 billion (US$1.39 billion)
  • Gross margin: 16.7%
  • Foundry revenue from 28nm: 10%; Foundry operating margin: 4.9%
  • Foundry capacity utilization rate: 92%
  • Net income attributable to stockholders of the parent: NT$3.84 billion (US$128 million)
  • Earnings per share: NT$0.33; earnings per ADS: US$0.055

TAIPEI, Taiwan--()--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 2019.

Fourth quarter consolidated revenue was NT$41.85 billion, up 10.9% QoQ from NT$37.74 billion in 3Q19 and up 17.8% YoY from NT$35.52 billion in 4Q18. Consolidated gross margin for 4Q19 was 16.7%. Net income attributable to the stockholders of the parent was NT$3.84 billion, with earnings per ordinary share of NT$0.33.

Jason Wang, co-president of UMC, said, “During the fourth quarter, we started to account for the foundry operations at our recently acquired USJC (Fab 12M) in Japan. In spite of currency headwinds encountered in the foreign exchange markets, our foundry revenue increased 10.9% QoQ to NT$41.83 billion, leading to a foundry operating margin of 4.9%. Utilization rate increased to 92%, bringing wafer shipments to 2.04 million 8-inch equivalent wafers primarily driven by the communication and computing segments. For the year, our earnings per share increased 41% YoY to NT$0.82. Our continued disciplined CAPEX approach also enabled UMC to generate a total of NT$37.1 billion in free cash flow, up 19% YoY. In terms of technology, we recently validated our 22nm process on a USB 2.0 test vehicle, demonstrating the technology readiness of this design rule shrink from 28nm. UMC’s 22nm process features a 10% area reduction, better power-to-performance ratio and enhanced RF capabilities compared to our existing 28nm High-K/Metal Gate technology.”

Co-president Wang further commented, “Looking to the first quarter of 2020, based on customer forecasts, the overall business outlook appears to remain consistent with the previous quarter, primarily due to stable wafer demand across wireless communication and computer peripheral segments. As we receive new product tape-outs that will enter future production pipelines, we expect to benefit from 5G and IoT trends that will generate additional semiconductor demand, specifically in wireless devices as well as power management applications. While our focus remains to maintain a disciplined capital expenditure spending, owing to mid to long term customer and market demand, we have setup our 2020 capex budget of US$1 billion. In the meantime, UMC will continue to penetrate into new segments and expand our presence in existing markets; our core competence in process technology development, and world-class foundry service will strengthen our position in delivering logic and specialty manufacturing solutions.”

Summary of Operating Results

Operating Results

(Amount: NT$ million)

4Q19

3Q19

QoQ %
change

4Q18

YoY %
change

Operating Revenues

41,849

37,738

10.9

35,517

17.8

Gross Profit

6,968

6,433

8.3

4,601

51.4

Operating Expenses

(6,165)

(5,131)

20.2

(6,396)

(3.6)

Net Other Operating Income and Expenses

1,215

1,207

0.6

1,206

0.7

Operating Income (Loss)

2,018

2,509

(19.6)

(589)

-

Net Non-Operating Income and Expenses

946

(532)

-

(1,998)

-

Net Income (Loss) Attributable to Stockholders of the Parent

3,837

2,929

31.0

(1,707)

-

EPS (NT$ per share)

0.33

0.25

 

(0.14)

 

(US$ per ADS)

0.055

0.042

 

(0.023)

 

Operating revenues in 4Q19 increased 10.9% to NT$41.85 billion, including NT$41.83 billion from the foundry segment. Revenue contribution from 40nm and below technologies declined to 32%. Gross profit increased 8.3% quarterly to NT$6.97 billion, or 16.7% of revenue. Operating expenses increased 20.2% to NT$6.17 billion. Net other operating income remained flat at NT$1.22 billion, leading to an operating income of NT$2.02 billion. Net non-operating income was NT$946 million. Net income attributable to stockholders of the parent was NT$3.84 billion.

Earnings per ordinary share for the quarter was NT$0.33. Earnings per ADS was US$0.055. The basic weighted average number of outstanding shares in 4Q19 was 11,708,869,140, compared with 11,708,239,978 shares in 3Q19 and 12,111,826,935 shares in 4Q18. The diluted weighted average number of outstanding shares was 13,073,000,039 in 4Q19, compared with 13,049,025,428 shares in 3Q19 and 12,111,826,935 shares in 4Q18. The fully diluted share count on December 31, 2019 was approximately 13,089,079,000.

Detailed Financials Section

COGS & Expenses

(Amount: NT$ million)

4Q19

3Q19

QoQ %
change

4Q18

YoY %
change

Operating Revenues

41,849

37,738

10.9

35,517

17.8

COGS

(34,881)

(31,305)

11.4

(30,916)

12.8

Depreciation

(11,069)

(10,707)

3.4

(10,228)

8.2

Other Mfg. Costs

(23,812)

(20,598)

15.6

(20,688)

15.1

Gross Profit

6,968

6,433

8.3

4,601

51.4

Gross Margin (%)

16.7%

17.1%

 

13.0%

 

Operating Expenses

(6,165)

(5,131)

20.2

(6,396)

(3.6)

G&A

(1,603)

(1,344)

19.2

(1,339)

19.7

Sales & Marketing

(996)

(970)

2.8

(903)

10.4

R&D

(3,453)

(2,813)

22.7

(3,745)

(7.8)

Expected Credit Losses

(113)

(4)

2,903.5

(409)

(72.5)

Net Other Operating Income & Expenses

1,215

1,207

0.6

1,206

0.7

Operating Income (Loss)

2,018

2,509

(19.6)

(589)

-

Operating revenues grew 10.9% QoQ to NT$41.85 billion. COGS increased 11.4% to NT$34.88 billion, as other manufacturing costs increased 15.6% to NT$23.81 billion, mainly as a result of higher wafer shipments while depreciation was up 3.4% to NT$11.07 billion. Gross profit grew 8.3% to NT$6.97 billion. Operating expenses rose 20.2% to NT$6.17 billion. R&D expenses grew 22.7% sequentially to NT$3.45 billion, representing 8.3% of 4Q19 operating revenues. General & Administrative (G&A) expenses were up 19.2% to NT$1.60 billion. Net other operating income was NT$1.22 billion. In 4Q19, operating income totaled NT$2.02 billion.

Non-Operating Income and Expenses

(Amount: NT$ million)

4Q19

3Q19

4Q18

Non-Operating Income and Expenses

946

(532)

(1,998)

Net Interest Income and Expenses

(468)

(503)

(438)

Net Investment Gain and Loss

1,064

736

(1,859)

Exchange Gain and Loss

188

(752)

304

Other Gain and Loss

162

(13)

(5)

Net non-operating income in 4Q19 was NT$946 million, mainly resulting from NT$1.06 billion in net investment gain, partly offset by NT$468 million in net interest expense.

Cash Flow Summary

(Amount: NT$ million)

For the 3-Month Period Ended

Dec. 31, 2019

For the 3-Month Period Ended

Sep. 30, 2019

Cash Flow from Operating Activities

37,533

(3,080)

Net income before tax

2,964

1,977

Depreciation & Amortization

12,775

12,050

Expected credit losses

113

4

Share of profit of associates and

joint ventures

(642)

(109)

Income tax paid

(52)

(99)

Changes in working capital & others

22,375

(16,903)

Cash Flow from Investing Activities

(17,844)

(3,968)

Acquisition of subsidiaries

(12,801)

-

Acquisition of PP&E

(3,502)

(3,550)

Acquisition of intangible assets

(935)

(732)

Others

(606)

314

Cash Flow from Financing Activities

(9,716)

4,137

Bank loans

(9,551)

11,168

Cash dividends

3

(6,914)

Others

(168)

(117)

Effect of Exchange Rate

(1,238)

(692)

Net Cash Flow

8,735

(3,603)

Beginning balance

86,755

90,356

Changes in non-current assets held for sale

2

2

Ending balance

95,492

86,755

In 4Q19, cash inflow from operating activities was NT$37.53 billion. Cash outflow from investing activities totaled NT$17.84 billion, which included NT$12.80 billion in the acquisition of USJC and NT$3.50 billion in PP&E spending, resulting in free cash flow of NT$33.81 billion. Cash outflow from financing activities totaled NT$9.72 billion, primarily from NT$9.55 billion in the repayment of bank loans. Net cash inflow in 4Q19 was NT$8.74 billion. Over the next 12 months, the company expects to repay NT$4.70 billion in bank loans.

Current Assets

(Amount: NT$ billion)

4Q19

3Q19

4Q18

Cash and Cash Equivalents

95.49

86.76

83.66

Notes & Accounts Receivable

25.73

23.41

23.88

Days Sales Outstanding

54

58

64

Inventories, net

21.72

19.99

18.20

Days of Inventory

55

58

53

Total Current Assets

153.76

163.49

141.19

Cash and cash equivalents increased to NT$95.49 billion. Days of inventory decreased to 55 days.

Liabilities

(Amount: NT$ billion)

4Q19

3Q19

4Q18

Total Current Liabilities

72.71

70.33

49.90

Notes & Accounts Payable

8.88

6.63

6.80

Short-Term Credit / Bonds

36.81

40.08

18.23

Payable on Equipment

3.03

3.00

4.01

Other

23.99

20.62

20.86

Long-Term Credit / Bonds

47.89

55.23

67.08

Long-Term Investment Liabilities

20.09

20.17

20.41

Total Liabilities

162.97

169.00

158.07

Debt to Equity

79%

82%

77%

Current liabilities increased to NT$72.71 billion. Total liabilities decreased to NT$162.97 billion, leading to a debt to equity ratio of 79%.

Analysis of Revenue2 for Foundry Segment

Revenue Breakdown by Region

Region

4Q19

3Q19

2Q19

1Q19

4Q18

North America

30%

33%

31%

32%

38%

Asia Pacific

55%

59%

59%

57%

51%

Europe

6%

6%

7%

7%

8%

Japan

9%

2%

3%

4%

3%

Revenue from Asia Pacific decreased to 55%, while revenue contribution from North American customers declined to 30%. Revenue from Japan rose to 9% while European business remained flat at 6%.

Revenue Breakdown by Geometry

Geometry

4Q19

3Q19

2Q19

1Q19

4Q18

14nm and below

0%

0%

0%

0%

1%

14nm<x<=28nm

10%

12%

13%

10%

10%

28nm<x<=40nm

22%

26%

24%

20%

23%

40nm<x<=65nm

16%

14%

14%

14%

13%

65nm<x<=90nm

18%

12%

12%

12%

11%

90nm<x<=0.13um

11%

11%

14%

15%

13%

0.13um<x<=0.18um

12%

13%

12%

15%

15%

0.18um<x<=0.35um

8%

9%

8%

11%

11%

0.5um and above

3%

3%

3%

3%

3%

Revenue contribution from 28nm was 10% while 40nm business accounted for 22% of sales.

Revenue Breakdown by Customer Type

Customer Type

4Q19

3Q19

2Q19

1Q19

4Q18

Fabless

87%

92%

93%

94%

92%

IDM

13%

8%

7%

6%

8%

Revenue from fabless customers decreased to 87% of revenue.

Revenue Breakdown by Application (1)

Application

4Q19

3Q19

2Q19

1Q19

4Q18

Computer

13%

13%

14%

15%

15%

Communication

54%

54%

52%

48%

44%

Consumer

24%

26%

28%

29%

30%

Others

9%

7%

6%

8%

11%

Revenue from communication remained flat at 54%, while business from consumer applications declined to 24%. Computer related applications remained at 13% 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 4Q19 remained flat.

(To view ASP trend, visit http://www.umc.com/english/investors/4Q19_ASP_trend.asp)

Shipment and Utilization Rate3 for Foundry Segment

Wafer Shipments

 

4Q19

3Q19

2Q19

1Q19

4Q18

Wafer Shipments
(8” K equivalents)

2,042

1,806

1,730

1,611

1,711

Quarterly Capacity Utilization Rate

 

4Q19

3Q19

2Q19

1Q19

4Q18

Utilization Rate

92%

91%

88%

83%

88%

Total Capacity
(8” K equivalents)

2,237

2,004

1,970

1,937

1,958

In 4Q19, the acquisition of USJC helped to lift wafer shipments to increase 13.1% QoQ to 2,042K, while quarterly capacity rose 11.6% QoQ to 2,237K. As a result, the overall utilization rate in 4Q19 was 92%. Full-year 2019 utilization rate was 89%.

Capacity4 for Foundry Segment

Total capacity in the fourth quarter reached 2,237K 8-inch equivalent wafers, which included 98K 12-inch equivalent wafers from Fab 12M. We foresee that first quarter capacity will grow 1.8% sequentially to 2,278K 8-inch equivalent wafers, mainly reflecting the capacity expansion at Fab 8N and Fab 12A.

Annual Capacity in

thousands of wafers

 

Quarterly Capacity in

thousands of wafers

FAB

Geometry
(um)

2019

2018

2017

2016

 

FAB

1Q20E

4Q19

3Q19

2Q19

WTK

6"

3.5 – 0.45

370

396

422

423

 

WTK

92

93

93

93

Fab 8A

8"

0.5 – 0.25

825

825

825

827

 

Fab 8A

200

207

207

207

Fab 8C

8"

0.35 – 0.11

436

383

357

348

 

Fab 8C

112

111

111

109

Fab 8D

8"

0.13 – 0.09

359

347

341

342

 

Fab 8D

92

90

90

90

Fab 8E

8"

0.5 – 0.18

426

418

418

419

 

Fab 8E

112

111

107

105

Fab 8F

8"

0.18 – 0.11

434

431

417

401

 

Fab 8F

121

110

110

108

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

228

218

208

205

Fab 12A

12"

0.13 – 0.014

997

997

970

885

 

Fab 12A

260

250

250

250

Fab 12i

12"

0.13 – 0.040

595

555

537

584

 

Fab 12i

154

155

155

144

Fab 12X

12"

0.040 – 0.028

203

183

97

9

 

Fab 12X

52

51

51

51

Fab 12M

12"

0.090 – 0.040

98

-

-

-

 

Fab 12M

97

98

-

-

Total(1)

8,148

7,673

7,304

6,983

 

Total

2,278

2,237

2,004

1,970

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. Capacity total figures are expressed in 8-inch equivalent wafers.

CAPEX for Foundry Segment

Capital Expenditure by Year - in US$

billion

Year

2019

2018

2017

2016

2015

CAPEX

$ 0.6

$ 0.7

$ 1.4

$ 2.8

$ 1.9

2020 CAPEX Plan

8"

12"

Total

15%

85%

US$1.0 billion

CAPEX spending in 4Q19 was US$122 million, leading to a total spending US$574 million in capital expenditure for full year 2019. 2020 capex budget will be US$1.0 billion.

Brief Summary of Full Year 2019 Consolidated Results

Operating Results

(Amount: NT$ million)

2019

2018

YoY %
change

Operating Revenues

148,202

151,253

(2.0)

Gross Profit

21,315

22,840

(6.7)

Operating Expenses

(21,807)

(22,160)

(1.6)

Net Other Operating Income & Expenses

5,182

5,117

1.3

Operating Income

4,690

5,797

(19.1)

Net Non-Operating Income & Expenses

1,046

(3,613)

-

Income Tax Benefit

393

459

(14.3)

Net Income Attributable to Stockholders of the Parent

9,708

7,073

37.2

EPS (NT$ per share)

0 .82

0.58

 

(US$ per ADS)

0.136

0.096

 

  • Consolidated revenue in NTD declined 2.0% YoY to NT$148.20 billion, from NT$151.25 billion in 2018.
  • Gross margin was 14.4%, compared to 15.1% in 2018.
  • Operating margin was 3.2%, compared to 3.8% in 2018.
  • Net income attributable to stockholders of the parent was NT$9.71 billion in 2019.
  • EPS was NT$0.82, or EPADS of US$0.136 for 2019.
  • The contribution from 28nm technologies and below accounted for 11% in 2019. 40nm business accounted for 23% in 2019.

Annual Sales Breakdown in Revenue for Foundry Segment

Region

2019

2018

North America

32%

38%

Asia Pacific

57%

50%

Europe

6%

9%

Japan

5%

3%

 

 

 

Technology

2019

2018

14nm and below

0%

3%

14nm<x<=28nm

11%

13%

28nm<x<=40nm

23%

25%

40nm<x<=65nm

15%

12%

65nm<x<=90nm

14%

8%

90nm<x<=0.13um

12%

12%

0.13um<x<=0.18um

13%

14%

0.18um<x<=0.35um

9%

10%

0.5um and above

3%

3%

 

 

 

Customer Type

2019

2018

Fabless

91%

92%

IDM

9%

8%

 

 

 

Application

2019

2018

Computer

14%

16%

Communication

52%

45%

Consumer

26%

29%

Others

8%

10%

First Quarter of 2020 Outlook & Guidance

Quarter-over-Quarter Guidance:

  • Wafer Shipments: To remain flat
  • ASP in USD: To remain flat
  • Profitability: Gross profit margin will be in the mid-teens % range
  • Foundry Segment Capacity Utilization: around 90%
  • 2020 CAPEX for Foundry Segment: US$1 billion

Recent Developments / Announcements

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

Conference Call / Webcast Announcement

Wednesday, February 5, 2020

Time: 5:00 PM (Taipei) / 4:00 AM (New York) / 09:00 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 4Q19 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 mature and advanced IC production with a focus on Specialty Technologies to serve 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 high volume 28nm High-K/Metal Gate technology, volume production 14nm FinFET, 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 12 wafer fabs are strategically located throughout Asia and are able to produce more than 700,000 wafers per month. The company employs approximately 19,000 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.

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 December 31, 2019
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
 
 

December 31, 2019

US$

NT$

%

Assets
Current assets
Cash and cash equivalents

3,175

95,492

25.8%

Notes & Accounts receivable, net

855

25,729

7.0%

Inventories, net

722

21,715

5.9%

Other current assets

360

10,821

2.8%

Total current assets

5,112

153,757

41.5%

 
Non-current assets
Funds and investments

1,375

41,362

11.2%

Property, plant and equipment

4,999

150,374

40.6%

Right-of-use assets

276

8,292

2.2%

Other non-current assets

545

16,402

4.5%

Total non-current assets

7,195

216,430

58.5%

Total assets

12,307

370,187

100.0%

 
Liabilities
Current liabilities
Short-term loans

399

12,015

3.2%

Payables

934

28,083

7.6%

Current portion of long-term liabilities

824

24,796

6.7%

Other current liabilities

260

7,820

2.1%

Total current liabilities

2,417

72,714

19.6%

 
Non-current liabilities
Bonds payable

621

18,688

5.1%

Long-term loans

971

29,200

7.9%

Lease liabilities, noncurrent

182

5,461

1.5%

Other non-current liabilities

1,227

36,910

9.9%

Total non-current liabilities

3,001

90,259

24.4%

Total liabilities

5,418

162,973

44.0%

 
Equity
Equity attributable to the parent company
Capital

3,909

117,576

31.8%

Additional paid-in capital

1,315

39,550

10.7%

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

1,655

49,798

13.4%

Treasury stock

(4)

(120)

(0.0%)

Total equity attributable to the parent company

6,875

206,804

55.9%

Non-controlling interests

14

410

0.1%

Total equity

6,889

207,214

56.0%

Total liabilities and equity

12,307

370,187

100.0%

Note:New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2019 exchange rate of NT $30.08 per U.S. Dollar.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) 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, 2019

December 31, 2018

Chg.

December 31, 2019

September 30, 2019

Chg.

US$ NT$ US$ NT$ % US$ NT$ US$ NT$ %
Operating revenues

1,391

41,849

1,181

35,517

17.8%

1,391

41,849

1,255

37,738

10.9%

Operating costs

(1,159)

(34,881)

(1,028)

(30,916)

12.8%

(1,159)

(34,881)

(1,041)

(31,305)

11.4%

Gross profit

232

6,968

153

4,601

51.4%

232

6,968

214

6,433

8.3%

16.7%

16.7%

13.0%

13.0%

16.7%

16.7%

17.1%

17.1%

Operating expenses
- Sales and marketing expenses

(33)

(996)

(30)

(903)

10.4%

(33)

(996)

(32)

(970)

2.8%

- General and administrative expenses

(53)

(1,603)

(44)

(1,339)

19.7%

(53)

(1,603)

(45)

(1,344)

19.2%

- Research and development expenses

(115)

(3,453)

(125)

(3,745)

(7.8%)

(115)

(3,453)

(94)

(2,813)

22.7%

- Expected credit losses

(4)

(113)

(14)

(409)

(72.5%)

(4)

(113)

(0)

(4)

2,903.5%

Subtotal

(205)

(6,165)

(213)

(6,396)

(3.6%)

(205)

(6,165)

(171)

(5,131)

20.2%

Net other operating income and expenses

40

1,215

40

1,206

0.7%

40

1,215

40

1,207

0.6%

Operating income (loss)

67

2,018

(20)

(589)

-

67

2,018

83

2,509

(19.6%)

4.8%

4.8%

(1.7%)

(1.7%)

4.8%

4.8%

6.7%

6.7%

 
Net non-operating income and expenses

32

946

(66)

(1,998)

-

32

946

(17)

(532)

-

Income (loss) from continuing operations
before income tax

99

2,964

(86)

(2,587)

-

99

2,964

66

1,977

49.9%

7.1%

7.1%

(7.3%)

(7.3%)

7.1%

7.1%

5.2%

5.2%

 
Income tax benefit (expense)

6

191

(14)

(413)

-

6

191

(2)

(39)

-

Net income (loss)

105

3,155

(100)

(3,000)

-

105

3,155

64

1,938

62.8%

7.5%

7.5%

(8.4%)

(8.4%)

7.5%

7.5%

5.1%

5.1%

 
Other comprehensive income (loss)

(51)

(1,538)

4

110

-

(51)

(1,538)

20

591

-

 
Total comprehensive income (loss)

54

1,617

(96)

(2,890)

-

54

1,617

84

2,529

(36.0%)

 
Net income (loss) attributable to:
  Stockholders of the parent

128

3,837

(57)

(1,707)

-

128

3,837

97

2,929

31.0%

  Non-controlling interests

(23)

(682)

(43)

(1,293)

(47.3%)

(23)

(682)

(33)

(991)

(31.2%)

 
Comprehensive income (loss) attributable to:
  Stockholders of the parent

76

2,291

(53)

(1,608)

-

76

2,291

118

3,540

(35.3%)

  Non-controlling interests

(22)

(674)

(43)

(1,282)

(47.5%)

(22)

(674)

(34)

(1,011)

(33.4%)

 
Earnings per share-basic

0.011

0.33

(0.005)

(0.14)

0.011

0.33

0.008

0.25

Earnings per ADS (2)

0.055

1.65

(0.023)

(0.70)

0.055

1.65

0.042

1.25

Weighted average number of shares
outstanding (in millions)

11,709

12,112

11,709

11,708

 
 
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2019 exchange rate of NT $30.08 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) 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, 2019

December 31, 2019

US$

NT$

%

US$

NT$

%

Operating revenues

1,391

41,849

100.0%

4,927

148,202

100.0%

Operating costs

(1,159)

(34,881)

(83.3%)

(4,218)

(126,887)

(85.6%)

Gross profit

232

6,968

16.7%

709

21,315

14.4%

 
 
Operating expenses
- Sales and marketing expenses

(33)

(996)

(2.4%)

(127)

(3,808)

(2.6%)

- General and administrative expenses

(53)

(1,603)

(3.8%)

(181)

(5,436)

(3.6%)

- Research and development expenses

(115)

(3,453)

(8.3%)

(394)

(11,860)

(8.0%)

- Expected credit losses

(4)

(113)

(0.3%)

(23)

(703)

(0.5%)

Subtotal

(205)

(6,165)

(14.8%)

(725)

(21,807)

(14.7%)

Net other operating income and expenses

40

1,215

2.9%

172

5,182

3.5%

Operating income

67

2,018

4.8%

156

4,690

3.2%

 
Net non-operating income and expenses

32

946

2.3%

35

1,046

0.7%

Income from continuing operations
before income tax

99

2,964

7.1%

191

5,736

3.9%

 
 
Income tax benefit

6

191

0.4%

13

393

0.2%

Net income

105

3,155

7.5%

204

6,129

4.1%

 
Other comprehensive income (loss)

(51)

(1,538)

(3.7%)

113

3,409

2.3%

 
Total comprehensive income (loss)

54

1,617

3.8%

317

9,538

6.4%

 
Net income attributable to:
  Stockholders of the parent

128

3,837

9.2%

323

9,708

6.6%

  Non-controlling interests

(23)

(682)

(1.7%)

(119)

(3,579)

(2.5%)

 
Comprehensive income (loss) attributable to:
  Stockholders of the parent

76

2,291

5.5%

437

13,132

8.9%

  Non-controlling interests

(22)

(674)

(1.7%)

(120)

(3,594)

(2.5%)

 
Earnings per share-basic

0.011

0.33

0.027

0.82

Earnings per ADS (2)

0.055

1.65

0.136

4.10

 
Weighted average number of shares
outstanding (in millions)

11,709

11,785

 
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2019 exchange rate of NT $30.08 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statement of Cash Flows
For The Twelve-Month Period Ended December 31, 2019
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
 

US$

NT$

Cash flows from operating activities :
Net income before tax

191

5,736

Depreciation & Amortization

1,642

49,390

Expected credit losses

23

703

Share of profit of associates and joint ventures

(38)

(1,147)

Income tax paid

(21)

(619)

Changes in working capital & others

28

841

Net cash provided by operating activities

1,825

54,904

 
Cash flows from investing activities :
Acquisition of subsidiaries (net of cash acquired)

(426)

(12,801)

Acquisition of property, plant and equipment

(549)

(16,518)

Acquisition of intangible assets

(81)

(2,444)

Others

3

81

Net cash used in investing activities

(1,053)

(31,682)

 
Cash flows from financing activities :
Increase in short-term loans

(33)

(994)

Redemption of bonds

(83)

(2,500)

Proceeds from long-term loans

381

11,450

Repayments of long-term loans

(252)

(7,573)

Cash dividends

(230)

(6,911)

Treasury stock acquired

(99)

(2,972)

Others

(12)

(367)

Net cash used in financing activities

(328)

(9,867)

 
Effect of exchange rate changes on cash and cash equivalents

(51)

(1,525)

Net increase in cash and cash equivalents

393

11,830

 
Cash and cash equivalents at beginning of period

2,782

83,662

 
Cash and cash equivalents at end of period

3,175

95,492

 
 
Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2019 exchange rate of NT $30.08 per U.S. Dollar.
 

1Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending December 31, 2019, the three-month period ending September 30, 2019, and the equivalent three-month period that ended December 31, 2018. For all 4Q19 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the December 31, 2019 exchange rate of NT$ 30.08 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.

Contacts

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

Contacts

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