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 2022.
Fourth quarter consolidated revenue was NT$67.84 billion, decreasing 10.0% QoQ from NT$75.39 billion in 3Q22. Compared to a year ago, 4Q22 revenue grew 14.8% YoY from NT$59.10 billion in 4Q21. Consolidated gross margin for 4Q22 was 42.9%. Net income attributable to the shareholders of the parent was NT$19.1 billion, with earnings per ordinary share of NT$1.54.
Jason Wang, co-president of UMC, said, “In the fourth quarter, due to a significant slowdown across most of our end markets and inventory correction in the semiconductor industry, our wafer shipments fell 14.8% QoQ while overall fab utilization rate dropped to 90%. Average selling price increased slightly during the quarter as a result of our ongoing product mix optimization efforts, moderating the decline in revenue.”
“For the full year 2022, UMC’s revenue hit a record high of NT$278.7 billion while operating income exceeded NT$100 billion. Gross margin reached 45%, driven by a more favorable foreign exchange rate, expanding 22/28nm portfolio, and newly added capacity. We had taken advantage of the industry upturn over the past two years to enhance our differentiation in specialty technology offering, improve profitability, and deepen relationships with key customers. Revenue from 22/28nm technologies increased more than 56% YoY, driven by our industry-leading 28nm process for OLED display drivers and image signal processors. Our automotive segment also delivered impressive growth in 2022, increasing 82% YoY to account for approximately 9% of total sales. We expect this segment will continue to be a key growth catalyst in 2023 and beyond, driven by the long-term trend of vehicle electrification and automation. UMC is well positioned to serve the market with our comprehensive portfolio of auto-grade process technologies and facilities certified according to rigorous quality standards, while we continue to build strong partnerships with world-class automotive leaders.”
Co-president Wang commented, “Given the soft global economic outlook for 2023, we expect the current challenging environment to persist through the first quarter as customers’ days of inventory are still higher than normal while order visibility remains low. To manage this period of weakness, the Company is implementing strict cost control measures and deferring certain capital expenditures where possible. In the longer term, we remain positive that UMC’s differentiated specialty technology leadership, geographically diversified capacity offering, and quality and operational excellence will enable the Company to capture demand fueled by continuous digital transformation across industries and be the foundry of choice for leading customers.”
Co-president Wang added, “In 2022, we took solid steps in executing our net zero by 2050 roadmap. As part of our efforts to reduce emissions across the entire value chain, UMC recently introduced a program to empower our suppliers with resources to measure and manage their emissions output. To round out the important progress we made towards our ESG goals this year, we were honored to receive recognition from domestic and international institutions. In the 2022 Dow Jones Sustainability Indices (DJSI), UMC was ranked first in terms of overall sustainability performance among semiconductor foundry peers in the 2022 DJSI, while we were the only semiconductor firm globally to achieve double-A scoring for climate change and water security in CDP’s annual evaluation of corporate environmental action. Sustainability and a company’s long-term success are inextricably linked, and UMC will continue to strive to meet expectations of all of our stakeholders while acting as responsible social and environment stewards.”
Summary of Operating Results
|
Operating Results |
|||||
|
(Amount: NT$ million) |
4Q22 |
3Q22 |
QoQ % |
4Q21 |
YoY % |
|
Operating Revenues |
67,836 |
75,392 |
(10.0) |
59,100 |
14.8 |
|
Gross Profit |
29,124 |
35,664 |
(18.3) |
23,103 |
26.1 |
|
Operating Expenses |
(6,798) |
(6,794) |
0.1 |
(6,821) |
(0.3) |
|
Net Other Operating Income and Expenses |
1,311 |
1,287 |
1.9 |
1,334 |
(1.7) |
|
Operating Income |
23,637 |
30,157 |
(21.6) |
17,616 |
34.2 |
|
Net Non-Operating Income and Expenses |
889 |
2,189 |
(59.4) |
558 |
59.4 |
|
Net Income Attributable to Shareholders of the Parent |
19,068 |
26,996 |
(29.4) |
15,949 |
19.6 |
|
EPS (NT$ per share) |
1.54 |
2.19 |
|
1.30 |
|
|
(US$ per ADS) |
0.251 |
0.357 |
|
0.212 |
|
Fourth quarter operating revenues declined by 10.0% sequentially to NT$67.84 billion resulting from the inventory correction within the semi industry which lowered wafer shipments. Revenue contribution from 40nm and below technologies represented 45% of wafer revenue. Gross profit decreased 18.3% QoQ to NT$29.12 billion, or 42.9% of revenue. Operating expenses remained flat at NT$6.80 billion. Net other operating income increased to NT$1.31 billion. Net non-operating income totaled NT$0.89 billion. Net income attributable to shareholders of the parent amounted to NT$19.07 billion.
Earnings per ordinary share for the quarter was NT$1.54. Earnings per ADS was US$0.251. The basic weighted average number of shares outstanding in 4Q22 was 12,348,880,384, compared with 12,305,516,644 shares in 3Q22 and 12,254,114,875 shares in 4Q21. The diluted weighted average number of shares outstanding was 12,684,106,050 in 4Q22, compared with 12,635,661,561 shares in 3Q22 and 12,489,949,678 shares in 4Q21. The fully diluted shares counted on December 31, 2022 were approximately 12,684,106,000.
1Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending December 31, 2022, the three-month period ending September 30, 2022, and the equivalent three-month period that ended December 31, 2021. For all 4Q22 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the December 31, 2022 exchange rate of NT$ 30.70 per U.S. Dollar.
Detailed Financials Section
Operating revenues decreased to NT$67.84 billion. COGS declined 2.6% to NT$38.71 billion, which included 7.5% sequential decrease in depreciation. Gross profit fell 18.3% QoQ to NT$29.12 billion. Operating expenses remained flat at NT$6.80 billion, as Sales & Marketing reduced 10.2% to NT$0.95 billion while R&D was up 3.1% QoQ to NT$3.41 billion, representing 5.0% of revenue. Net other operating income was NT$1.31 billion. In 4Q22, operating income declined 21.6% QoQ to NT$23.64 billion.
|
COGS & Expenses |
|||||
|
(Amount: NT$ million) |
4Q22 |
3Q22 |
QoQ % |
4Q21 |
YoY % |
|
Operating Revenues |
67,836 |
75,392 |
(10.0) |
59,100 |
14.8 |
|
COGS |
(38,712) |
(39,728) |
(2.6) |
(35,997) |
7.5 |
|
Depreciation |
(8,898) |
(9,622) |
(7.5) |
(10,122) |
(12.1) |
|
Other Mfg. Costs |
(29,814) |
(30,106) |
(1.0) |
(25,875) |
15.2 |
|
Gross Profit |
29,124 |
35,664 |
(18.3) |
23,103 |
26.1 |
|
Gross Margin (%) |
42.9% |
47.3% |
|
39.1% |
|
|
Operating Expenses |
(6,798) |
(6,794) |
0.1 |
(6,821) |
(0.3) |
|
G&A |
(2,438) |
(2,428) |
0.4 |
(2,164) |
12.7 |
|
Sales & Marketing |
(953) |
(1,061) |
(10.2) |
(1,240) |
(23.1) |
|
R&D |
(3,407) |
(3,304) |
3.1 |
(3,414) |
(0.2) |
|
Expected Credit Impairment Loss |
(0) |
(1) |
(48.5) |
(3) |
(88.3) |
|
Net Other Operating Income & Expenses |
1,311 |
1,287 |
1.9 |
1,334 |
(1.7) |
|
Operating Income |
23,637 |
30,157 |
(21.6) |
17,616 |
34.2 |
Net non-operating income in 4Q22 was NT$0.89 billion, primarily reflecting the NT$1.38 billion in net investment gain and the NT$0.58 billion in net interest income partially offset by the NT$1.06 billion in exchange loss.
|
Non-Operating Income and Expenses |
|||
|
(Amount: NT$ million) |
4Q22 |
3Q22 |
4Q21 |
|
Non-Operating Income and Expenses |
889 |
2,189 |
558 |
|
Net Interest Income and Expenses |
584 |
139 |
(343) |
|
Net Investment Gain and Loss |
1,382 |
780 |
2,689 |
|
Exchange Gain and Loss |
(1,057) |
1,293 |
312 |
|
Other Gain and Loss |
(20) |
(23) |
(2,100) |
In 4Q22, cash inflow from operating activities was NT$40.96 billion. Cash outflow from investing activities amounted to NT$36.05 billion, which included NT$36.32 billion in capital expenditure, resulting in free cash flow of NT$4.63 billion. Cash outflow from financing was NT$9.19 billion, primarily from a NT$8.08 billion in bank loans and a NT$2.54 billion in redemption of bonds. Net cash outflow in 4Q22 totaled NT$6.83 billion. Over the next 12 months, the company expects to repay NT$ 2.49 billion in bank loans.
|
Cash Flow Summary |
||
|
(Amount: NT$ million) |
For the 3-Month Period Ended Dec. 31, 2022 |
For the 3-Month Period Ended Sep.30, 2022 |
|
Cash Flow from Operating Activities |
40,956 |
39,696 |
|
Net income before tax |
24,526 |
32,346 |
|
Depreciation & Amortization |
10,477 |
11,195 |
|
Share of profit of associates and joint ventures |
(1,705) |
(328) |
|
Income tax paid |
(385) |
(652) |
|
Changes in working capital & others |
8,043 |
(2,865) |
|
Cash Flow from Investing Activities |
(36,045) |
(21,419) |
|
Decrease in financial assets measured at amortized cost |
9 |
2,070 |
|
Acquisition of PP&E |
(35,951) |
(22,466) |
|
Acquisition of intangible assets |
(440) |
(1,080) |
|
Others |
337 |
57 |
|
Cash Flow from Financing Activities |
(9,185) |
(26,688) |
|
Bank loans |
(8,082) |
(473) |
|
Redemption of bonds |
(2,542) |
(1,031) |
|
Increase (decrease) in deposits-in |
(389) |
14,441 |
|
Cash distributed from additional paid- in capital |
– |
(37,446) |
|
Others |
1,828 |
(2,179) |
|
Effect of Exchange Rate |
(2,556) |
5,337 |
|
Net Cash Flow |
(6,830) |
(3,074) |
|
Beginning balance |
180,649 |
183,723 |
|
Ending balance |
173,819 |
180,649 |
Cash and cash equivalents slightly decreased to NT$173.82 billion. Days of inventory increased by 6 days to 72 days.
|
Current Assets |
|||
|
(Amount: NT$ billion) |
4Q22 |
3Q22 |
4Q21 |
|
Cash and Cash Equivalents |
173.82 |
180.65 |
132.62 |
|
Accounts Receivable |
36.98 |
44.84 |
35.19 |
|
Days Sales Outstanding |
55 |
53 |
53 |
|
Inventories, net |
31.07 |
30.10 |
23.01 |
|
Days of Inventory |
72 |
66 |
59 |
|
Total Current Assets |
252.37 |
266.95 |
233.27 |
Current liabilities slightly increased to NT$108.57 billion. Long-term credit/bonds decreased to NT$39.88 billion. Total liabilities decreased to NT$197.60 billion, leading to a debt to equity ratio of 59%.
|
Liabilities |
|||
|
(Amount: NT$ billion) |
4Q22 |
3Q22 |
4Q21 |
|
Total Current Liabilities |
108.57 |
108.01 |
105.45 |
|
Accounts Payable |
8.98 |
10.04 |
8.36 |
|
Short-Term Credit / Bonds |
7.59 |
12.19 |
39.26 |
|
Payables on Equipment |
18.63 |
19.40 |
7.88 |
|
Other |
73.37 |
66.38 |
49.95 |
|
Long-Term Credit / Bonds |
39.88 |
46.15 |
39.83 |
|
Long-Term Investment Liabilities |
4.22 |
4.26 |
8.25 |
|
Total Liabilities |
197.60 |
204.21 |
183.22 |
|
Debt to Equity |
59% |
65% |
65% |
Analysis of Revenue2
Revenue from Asia-Pacific declined to 54% while business from North America was 30% of sales. Business from Europe was 9% while contribution from Japan increased to 7%.
|
Revenue Breakdown by Region |
|||||
|
Region |
4Q22 |
3Q22 |
2Q22 |
1Q22 |
4Q21 |
|
North America |
30% |
23% |
22% |
22% |
21% |
|
Asia Pacific |
54% |
62% |
65% |
64% |
66% |
|
Europe |
9% |
9% |
8% |
8% |
7% |
|
Japan |
7% |
6% |
5% |
6% |
6% |
Revenue contribution from 22/28nm grew to 28% of the wafer revenue, while 40nm contribution was 17% of sales.
|
Revenue Breakdown by Geometry |
|||||
|
Geometry |
4Q22 |
3Q22 |
2Q22 |
1Q22 |
4Q21 |
|
14nm and below |
0% |
0% |
0% |
0% |
0% |
|
14nm<x<=28nm |
28% |
25% |
22% |
20% |
20% |
|
28nm<x<=40nm |
17% |
17% |
18% |
18% |
18% |
|
40nm<x<=65nm |
17% |
18% |
19% |
19% |
19% |
|
65nm<x<=90nm |
9% |
8% |
7% |
8% |
8% |
|
90nm<x<=0.13um |
12% |
12% |
12% |
12% |
12% |
|
0.13um<x<=0.18um |
10% |
10% |
12% |
13% |
13% |
|
0.18um<x<=0.35um |
5% |
8% |
8% |
7% |
7% |
|
0.5um and above |
2% |
2% |
2% |
3% |
3% |
Revenue from fabless customers accounted for 81% of revenue.
|
Revenue Breakdown by Customer Type |
|||||
|
Customer Type |
4Q22 |
3Q22 |
2Q22 |
1Q22 |
4Q21 |
|
Fabless |
81% |
83% |
86% |
87% |
86% |
|
IDM |
19% |
17% |
14% |
13% |
14% |
Revenue from the communication segment represented 45%, while business from computer applications decreased to 12%. Business from consumer applications was 25% as other segments increased to 18% of revenue.
|
Revenue Breakdown by Application (1) |
|||||
|
Application |
4Q22 |
3Q22 |
2Q22 |
1Q22 |
4Q21 |
|
Computer |
12% |
14% |
16% |
17% |
17% |
|
Communication |
45% |
45% |
45% |
45% |
46% |
|
Consumer |
25% |
27% |
27% |
26% |
26% |
|
Others |
18% |
14% |
12% |
12% |
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, 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.
2 Revenue in this section represents wafer sales
Blended ASP Trend
Blended average selling price (ASP) grew slightly in 4Q22.
(To view blended ASP trend, please click here for 4Q22 ASP)
Shipment and Utilization Rate3
Wafer shipments decreased 14.8% QoQ to 2,213K in the fourth quarter, while quarterly capacity was 2,543K. Overall utilization rate in 4Q22 declined to 90%.
|
Wafer Shipments |
|||||
|
|
4Q22 |
3Q22 |
2Q22 |
1Q22 |
4Q21 |
|
Wafer Shipments (8” K equivalents) |
2,213 |
2,597 |
2,622 |
2,513 |
2,546 |
|
Quarterly Capacity Utilization Rate |
|||||
|
|
4Q22 |
3Q22 |
2Q22 |
1Q22 |
4Q21 |
|
Utilization Rate |
90% |
100%+ |
100%+ |
100%+ |
100%+ |
|
Total Capacity (8” K equivalents) |
2,543 |
2,539 |
2,528 |
2,420 |
2,419 |
3Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
Capacity4
Total capacity in the fourth quarter increased to 2,543K 8-inch equivalent wafers. Capacity will decline in the first quarter of 2023 to 2,522K 8-inch equivalent wafers, reflecting the annual production maintenance across 8” and 12” facilities.
|
Annual Capacity in thousands of wafers |
||||||
|
FAB |
Geometry |
2022 |
2021 |
2020 |
2019 |
|
|
WTK |
6″ |
5 – 0.15 |
335 |
329 |
371 |
370 |
|
8A |
8″ |
3 – 0.11 |
765 |
755 |
802 |
825 |
|
8C |
8″ |
0.35 – 0.11 |
459 |
459 |
452 |
436 |
|
8D |
8″ |
0.18 – 0.09 |
410 |
380 |
371 |
359 |
|
8E |
8″ |
0.6 – 0.14 |
469 |
457 |
449 |
426 |
|
8F |
8″ |
0.18 – 0.11 |
550 |
514 |
485 |
434 |
|
8S |
8″ |
0.18 – 0.11 |
443 |
408 |
373 |
372 |
|
8N |
8″ |
0.5 – 0.11 |
952 |
917 |
917 |
831 |
|
12A |
12″ |
0.13 – 0.014 |
1,170 |
1,070 |
1,044 |
997 |
|
12i |
12″ |
0.13 – 0.040 |
655 |
641 |
628 |
595 |
|
12X |
12″ |
0.080 – 0.022 |
314 |
284 |
217 |
203 |
|
12M |
12″ |
0.13 – 0.040 |
436 |
395 |
391 |
98 |
|
Total(1) |
10,031 |
9,453 |
9,188 |
8,148 |
||
|
YoY Growth Rate |
6% |
3% |
13% |
6% |
||
|
Quarterly Capacity in thousands of wafers |
|||||
|
FAB |
1Q23E |
4Q22 |
3Q22 |
2Q22 |
|
|
WTK |
6″ |
80 |
85 |
85 |
84 |
|
8A |
8″ |
189 |
192 |
192 |
192 |
|
8C |
8″ |
113 |
115 |
115 |
115 |
|
8D |
8″ |
101 |
103 |
103 |
103 |
|
8E |
8″ |
116 |
118 |
118 |
118 |
|
8F |
8″ |
136 |
138 |
138 |
138 |
|
8S |
8″ |
109 |
111 |
111 |
111 |
|
8N |
8″ |
244 |
245 |
242 |
235 |
|
12A |
12″ |
305 |
301 |
301 |
301 |
|
12i |
12″ |
162 |
164 |
164 |
164 |
|
12X |
12″ |
78 |
80 |
80 |
78 |
|
12M |
12″ |
108 |
110 |
110 |
110 |
|
Total |
2,522 |
2,543 |
2,539 |
2,528 |
|
(1) One 6-inch wafer is converted into 0.5625 (62/82) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25 (122/82) 8-inch equivalent wafers. Total capacity figures are expressed in 8-inch equivalent wafers.
CAPEX
CAPEX spending in 4Q22 totaled US$1,167 million as 2022 CAPEX amounted to US$2.7 billion. 2023 cash-based CAPEX budget will be US$3.0 billion.
|
Capital Expenditure by Year – in US$ billion |
|||||
|
Year |
2022 |
2021 |
2020 |
2019 |
2018 |
|
CAPEX |
$ 2.7 |
$ 1.8 |
$ 1.0 |
$ 0.6 |
$ 0.7 |
| 2023 CAPEX Plan | ||
|
8″ |
12″ |
Total |
|
10% |
90% |
US$3.0 billion |
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.
Brief Summary of Full Year 2022 Consolidated Results
- Consolidated revenue in NTD increased 30.8% YoY to NT$278.71 billion, from NT$213.01 billion in 2021.
- Gross profit increased 74.6%, compared to a year ago, representing 45.1% of 2022 revenue.
- Operating income grew 101.8% year on year, accounting for 37.4% of 2022 revenue.
- Net income attributable to shareholders of the parent increased 56.3% to NT$87.20 billion in 2022.
- EPS was NT$7.09, or EPADS of US$1.155 for 2022.
- 22/28nm revenue grew 56% compared to 2021, as contribution from 28nm technologies and below accounted for 24% in 2022.
|
Operating Results |
|||
|
(Amount: NT$ million) |
2022 |
2021 |
YoY % change |
|
Operating Revenues |
278,705 |
213,011 |
30.8 |
|
Gross Profit |
125,764 |
72,050 |
74.6 |
|
Operating Expenses |
(26,812) |
(25,590) |
4.8 |
|
Net Other Operating Income and Expenses |
5,340 |
5,226 |
2.2 |
|
Operating Income |
104,292 |
51,686 |
101.8 |
|
Net Non-Operating Income and Expenses |
1,805 |
10,117 |
(82.2) |
|
Income Tax Expense |
(18,079) |
(6,691) |
170.2 |
|
Net Income Attributable to Shareholders of the Parent |
87,198 |
55,780 |
56.3 |
|
EPS (NT$ per share) |
7.09 |
4.57 |
|
|
(US$ per ADS) |
1.155 |
0.744 |
|
Annual Sales Breakdown in Revenue for Foundry Segment
|
Region |
2022 |
2021 |
|
North America |
24% |
22% |
|
Asia Pacific |
61% |
65% |
|
Europe |
9% |
7% |
|
Japan |
6% |
6% |
|
Technology |
2022 |
2021 |
|
14nm and below |
0% |
0% |
|
14nm<x<=28nm |
24% |
20% |
|
28nm<x<=40nm |
18% |
18% |
|
40nm<x<=65nm |
18% |
19% |
|
65nm<x<=90nm |
8% |
8% |
|
90nm<x<=0.13um |
12% |
12% |
|
0.13um<x<=0.18um |
11% |
13% |
|
0.18um<x<=0.35um |
7% |
8% |
|
0.5um and above |
2% |
2% |
|
Customer Type |
2022 |
2021 |
|
Fabless |
84% |
85% |
|
IDM |
16% |
15% |
|
Application |
2022 |
2021 |
|
Computer |
15% |
17% |
|
Communication |
45% |
46% |
|
Consumer |
26% |
27% |
|
Others |
14% |
10% |
First Quarter 2023 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Wafer Shipments: To decrease in the high teens % range
- ASP in USD: To remain flat
- Gross Profit Margin: Will be in the mid-30% range
- Capacity Utilization: approximately 70%
- 2023 CAPEX: US$3.0 billion
Recent Developments / Announcements
Please visit UMC’s website for further details regarding the above announcements
Conference Call / Webcast Announcement
Monday, January 16, 2023
Time: 5:00 PM (Taipei) / 4:00 AM (New York) / 09:00 AM (London)
Dial-in numbers and Access Codes:
Hong Kong Number: +852-2112-1888
Taiwan Number: 02-2162-6306
Other Areas: +852-2112-1888
Access Code: 9603516#
A live webcast and replay of the 4Q22 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 approximately 850,000 8-inch equivalent wafers per month. The company employs approximately 20,000 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 financial results for the fourth quarter of 2022; 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 “Fourth Quarter of 2022 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.
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||
| Consolidated Condensed Balance Sheet | |||||
| As of December 31, 2022 | |||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||
| December 31, 2022 | |||||
| US$ | NT$ | % | |||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents |
5,662 |
173,819 |
32.6% |
||
| Accounts receivable, net |
1,204 |
36,975 |
6.9% |
||
| Inventories, net |
1,012 |
31,070 |
5.8% |
||
| Other current assets |
342 |
10,507 |
2.0% |
||
| Total current assets |
8,220 |
252,371 |
47.3% |
||
| Non-current assets | |||||
| Funds and investments |
2,113 |
64,855 |
12.2% |
||
| Property, plant and equipment |
5,569 |
170,982 |
32.1% |
||
| Right-of-use assets |
248 |
7,612 |
1.4% |
||
| Other non-current assets |
1,213 |
37,232 |
7.0% |
||
| Total non-current assets |
9,143 |
280,681 |
52.7% |
||
| Total assets |
17,363 |
533,052 |
100.0% |
||
| Liabilities | |||||
| Current liabilities | |||||
| Payables |
2,420 |
74,301 |
13.9% |
||
| Current portion of long-term liabilities |
247 |
7,587 |
1.4% |
||
| Other current liabilities |
869 |
26,677 |
5.1% |
||
| Total current liabilities |
3,536 |
108,565 |
20.4% |
||
| Non-current liabilities | |||||
| Bonds payable |
752 |
23,083 |
4.3% |
||
| Long-term loans |
547 |
16,794 |
3.2% |
||
| Lease liabilities, noncurrent |
169 |
5,200 |
1.0% |
||
| Other non-current liabilities |
1,432 |
43,959 |
8.2% |
||
| Total non-current liabilities |
2,900 |
89,036 |
16.7% |
||
| Total liabilities |
6,436 |
197,601 |
37.1% |
||
| Equity | |||||
| Equity attributable to the parent company | |||||
| Capital |
4,073 |
125,047 |
23.5% |
||
| Additional paid-in capital |
404 |
12,378 |
2.3% |
||
| Retained earnings and other components of equity |
6,439 |
197,682 |
37.1% |
||
| Total equity attributable to the parent company |
10,916 |
335,107 |
62.9% |
||
| Non-controlling interests |
11 |
344 |
0.0% |
||
| Total equity |
10,927 |
335,451 |
62.9% |
||
| Total liabilities and equity |
17,363 |
533,052 |
100.0% |
||
| Note：New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2022 exchange rate of NT $30.70 per U.S. Dollar. | |||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||||||||||
| Except Per Share and Per ADS Data | |||||||||||||||||||
| Year over Year Comparison | Quarter over Quarter Comparison | ||||||||||||||||||
| Three-Month Period Ended | Three-Month Period Ended | ||||||||||||||||||
| December 31, 2022 | December 31, 2021 | Chg. | December 31, 2022 | September 30, 2022 | Chg. | ||||||||||||||
| US$ | NT$ | US$ | NT$ | % | US$ | NT$ | US$ | NT$ | % | ||||||||||
| Operating revenues |
2,210 |
67,836 |
1,925 |
59,100 |
14.8% |
2,210 |
67,836 |
2,456 |
75,392 |
(10.0%) |
|||||||||
| Operating costs |
(1,261) |
(38,712) |
(1,172) |
(35,997) |
7.5% |
(1,261) |
(38,712) |
(1,294) |
(39,728) |
(2.6%) |
|||||||||
| Gross profit |
949 |
29,124 |
753 |
23,103 |
26.1% |
949 |
29,124 |
1,162 |
35,664 |
(18.3%) |
|||||||||
|
42.9% |
42.9% |
39.1% |
39.1% |
42.9% |
42.9% |
47.3% |
47.3% |
||||||||||||
| Operating expenses | |||||||||||||||||||
| Sales and marketing expenses |
(31) |
(953) |
(40) |
(1,240) |
(23.1%) |
(31) |
(953) |
(35) |
(1,061) |
(10.2%) |
|||||||||
| General and administrative expenses |
(80) |
(2,438) |
(71) |
(2,164) |
12.7% |
(80) |
(2,438) |
(79) |
(2,428) |
0.4% |
|||||||||
| Research and development expenses |
(111) |
(3,407) |
(111) |
(3,414) |
(0.2%) |
(111) |
(3,407) |
(108) |
(3,304) |
3.1% |
|||||||||
| Expected credit impairment loss |
(0) |
(0) |
(0) |
(3) |
(88.3%) |
(0) |
(0) |
(0) |
(1) |
(48.5%) |
|||||||||
| Subtotal |
(222) |
(6,798) |
(222) |
(6,821) |
(0.3%) |
(222) |
(6,798) |
(222) |
(6,794) |
0.1% |
|||||||||
| Net other operating income and expenses |
43 |
1,311 |
43 |
1,334 |
(1.7%) |
43 |
1,311 |
42 |
1,287 |
1.9% |
|||||||||
| Operating income |
770 |
23,637 |
574 |
17,616 |
34.2% |
770 |
23,637 |
982 |
30,157 |
(21.6%) |
|||||||||
|
34.8% |
34.8% |
29.8% |
29.8% |
34.8% |
34.8% |
40.0% |
40.0% |
||||||||||||
| Net non-operating income and expenses |
29 |
889 |
18 |
558 |
59.4% |
29 |
889 |
72 |
2,189 |
(59.4%) |
|||||||||
| Income from continuing operations before income tax |
799 |
24,526 |
592 |
18,174 |
35.0% |
799 |
24,526 |
1,054 |
32,346 |
(24.2%) |
|||||||||
|
36.2% |
36.2% |
30.8% |
30.8% |
36.2% |
36.2% |
42.9% |
42.9% |
||||||||||||
| Income tax expense |
(176) |
(5,406) |
(71) |
(2,169) |
149.2% |
(176) |
(5,406) |
(163) |
(5,004) |
8.1% |
|||||||||
| Net income |
623 |
19,120 |
521 |
16,005 |
19.5% |
623 |
19,120 |
891 |
27,342 |
(30.1%) |
|||||||||
|
28.2% |
28.2% |
27.1% |
27.1% |
28.2% |
28.2% |
36.3% |
36.3% |
||||||||||||
| Other comprehensive income (loss) |
14 |
429 |
94 |
2,880 |
(85.1%) |
14 |
429 |
141 |
4,336 |
(90.1%) |
|||||||||
| Total comprehensive income (loss) |
637 |
19,549 |
615 |
18,885 |
3.5% |
637 |
19,549 |
1,032 |
31,678 |
(38.3%) |
|||||||||
| Net income attributable to: | |||||||||||||||||||
| Shareholders of the parent |
621 |
19,068 |
520 |
15,949 |
19.6% |
621 |
19,068 |
879 |
26,996 |
(29.4%) |
|||||||||
| Non-controlling interests |
2 |
52 |
1 |
56 |
(6.3%) |
2 |
52 |
12 |
346 |
(85.0%) |
|||||||||
| Comprehensive income (loss) attributable to: | |||||||||||||||||||
| Shareholders of the parent |
635 |
19,497 |
613 |
18,830 |
3.5% |
635 |
19,497 |
1,021 |
31,332 |
(37.8%) |
|||||||||
| Non-controlling interests |
2 |
52 |
2 |
55 |
(6.4%) |
2 |
52 |
11 |
346 |
(85.0%) |
|||||||||
| Earnings per share-basic |
0.050 |
1.54 |
0.042 |
1.30 |
0.050 |
1.54 |
0.071 |
2.19 |
|||||||||||
| Earnings per ADS (2) |
0.251 |
7.70 |
0.212 |
6.50 |
0.251 |
7.70 |
0.357 |
10.95 |
|||||||||||
| Weighted average number of shares | |||||||||||||||||||
| outstanding (in millions) |
12,349 |
12,254 |
12,349 |
12,306 |
|||||||||||||||
| Notes: | |||||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2022 exchange rate of NT $30.70 per U.S. Dollar. | |||||||||||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | ||||||
| Consolidated Condensed Statements of Comprehensive Income | ||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | ||||||
| Except Per Share and Per ADS Data | ||||||
| For the Three-Month Period Ended | For the Twelve-Month Period Ended | |||||
| December 31, 2022 | December 31, 2022 | |||||
| US$ | NT$ | % | US$ | NT$ | % | |
| Operating revenues |
2,210 |
67,836 |
100.0% |
9,078 |
278,705 |
100.0% |
| Operating costs |
(1,261) |
(38,712) |
(57.1%) |
(4,981) |
(152,941) |
(54.9%) |
| Gross profit |
949 |
29,124 |
42.9% |
4,097 |
125,764 |
45.1% |
| Operating expenses | ||||||
| Sales and marketing expenses |
(31) |
(953) |
(1.4%) |
(136) |
(4,183) |
(1.5%) |
| General and administrative expenses |
(80) |
(2,438) |
(3.6%) |
(316) |
(9,672) |
(3.4%) |
| Research and development expenses |
(111) |
(3,407) |
(5.0%) |
(422) |
(12,954) |
(4.7%) |
| Expected credit impairment loss |
(0) |
(0) |
(0.0%) |
(0) |
(3) |
(0.0%) |
| Subtotal |
(222) |
(6,798) |
(10.0%) |
(874) |
(26,812) |
(9.6%) |
| Net other operating income and expenses |
43 |
1,311 |
1.9% |
174 |
5,340 |
1.9% |
| Operating income |
770 |
23,637 |
34.8% |
3,397 |
104,292 |
37.4% |
| Net non-operating income and expenses |
29 |
889 |
1.4% |
59 |
1,805 |
0.7% |
| Income from continuing operations before income tax |
799 |
24,526 |
36.2% |
3,456 |
106,097 |
38.1% |
| Income tax expense |
(176) |
(5,406) |
(8.0%) |
(589) |
(18,079) |
(6.5%) |
| Net income |
623 |
19,120 |
28.2% |
2,867 |
88,018 |
31.6% |
| Other comprehensive income (loss) |
14 |
429 |
0.6% |
79 |
2,438 |
0.9% |
| Total comprehensive income (loss) |
637 |
19,549 |
28.8% |
2,946 |
90,456 |
32.5% |
| Net income attributable to: | ||||||
| Shareholders of the parent |
621 |
19,068 |
28.1% |
2,840 |
87,198 |
31.3% |
| Non-controlling interests |
2 |
52 |
0.1% |
27 |
820 |
0.3% |
| Comprehensive income (loss) attributable to: | ||||||
| Shareholders of the parent |
635 |
19,497 |
28.7% |
2,920 |
89,636 |
32.2% |
| Non-controlling interests |
2 |
52 |
0.1% |
26 |
820 |
0.3% |
| Earnings per share-basic |
0.050 |
1.54 |
0.231 |
7.09 |
||
| Earnings per ADS (2) |
0.251 |
7.70 |
1.155 |
35.45 |
||
| Weighted average number of shares outstanding (in millions) |
12,349 |
12,306 |
||||
| Notes: | ||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2022 exchange rate of NT $30.70 per U.S. Dollar. | ||||||
| (2) 1 ADS equals 5 common shares. | ||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||
| Consolidated Condensed Statement of Cash Flows | |||
| For The Twelve-Month Period Ended December 31, 2022 | |||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||
| US$ | NT$ | ||
| Cash flows from operating activities : | |||
| Net income before tax |
3,456 |
106,097 |
|
| Depreciation & Amortization |
1,439 |
44,170 |
|
| Share of loss of associates and joint ventures |
60 |
1,852 |
|
| Income tax paid |
(154) |
(4,718) |
|
| Changes in working capital & others |
(50) |
(1,540) |
|
| Net cash provided by operating activities |
4,751 |
145,861 |
|
| Cash flows from investing activities : | |||
| Decrease in financial assets measured at amortized cost |
928 |
28,497 |
|
| Acquisition of property, plant and equipment |
(2,610) |
(80,128) |
|
| Acquisition of intangible assets |
(90) |
(2,756) |
|
| Others |
(1) |
(40) |
|
| Net cash used in investing activities |
(1,773) |
(54,427) |
|
| Cash flows from financing activities : | |||
| Decrease in short-term loans |
(64) |
(1,966) |
|
| Redemption of bonds |
(433) |
(13,305) |
|
| Proceeds from long-term loans |
76 |
2,319 |
|
| Repayments of long-term loans |
(688) |
(21,136) |
|
| Increase in guarantee deposits |
488 |
14,985 |
|
| Cash distributed from additional paid-in capital |
(1,220) |
(37,446) |
|
| Others |
(24) |
(706) |
|
| Net cash used in financing activities |
(1,865) |
(57,255) |
|
| Effect of exchange rate changes on cash and cash equivalents |
229 |
7,018 |
|
| Net increase in cash and cash equivalents |
1,342 |
41,197 |
|
| Cash and cash equivalents at beginning of period |
4,320 |
132,622 |
|
| Cash and cash equivalents at end of period |
5,662 |
173,819 |
|
| Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2022 exchange rate of NT $30.70 per U.S. Dollar. | |||
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