UMC Reports First Quarter 2015 Results

Communication and consumer segments reflected sequential revenue growth, accounting for 56% and 26% of sales in 1Q15, respectively.

(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 Blended ASP Trend for Foundry Segment

Blended average selling price increased slightly in 1Q15.
(To view ASP trend, visit http://www.umc.com/english/investors/1Q15_ASP_trend.asp)

Shipment and Utilization Rate³ for Foundry Segment

Wafer Shipments
	1Q15	4Q14	3Q14	2Q14	1Q14
Wafer Shipments (8" K equivalents)	1,481	1,431	1,462	1,426	1,258

Quarterly Capacity Utilization Rate
	1Q15	4Q14	3Q14	2Q14	1Q14
Utilization Rate	93%	93%	93%	90%	81%
Total Capacity (8" K equivalents)	1,583	1,577	1,586	1,597	1,563

Wafer shipments increased 3.5% quarterly to 1,481K in 1Q15 as overall capacity reached 1,583K, resulting in an overall utilization rate of 93% for the quarter.

Capacity⁴ for Foundry Segment

Total capacity during the first quarter increased to 1,583K 8-inch equivalent wafers. Continuous 28nm capacity expansion at Fab12A lifted quarterly capacity from 180K in 4Q14 to 183K in 1Q15. Capacity increase at Fab12i continued as 12" wafer capacity grew from 135K in 4Q14 to 139K in 1Q15. Estimated capacity during second quarter will grow by approximately 5% to 1,659K 8-inch equivalent wafers, due to ongoing 28nm capacity expansion deployment at Fab12A, 40nm capacity expansion at Fab12i and 8" expansion at Fab8N.

Annual Capacity in *thousands of wafers*							Quarterly Capacity in *thousands of wafers*
FAB		Geometry (um)	2014	2013	2012	2011	FAB	2Q15E	1Q15	4Q14	3Q14
Fab6A	6"	3.5 – 0.45	448	448	481	538	WTK*	113	-	-	-
Fab8A	8"	0.5 – 0.25	813	813	815	813	Fab6A	-	111	113	113
Fab8C	8"	0.35 – 0.11	347	347	360	359	Fab8A	204	201	204	204
Fab8D	8"	0.13 – 0.09	358	382	371	364	Fab8C	87	86	87	87
Fab8E	8"	0.5 – 0.18	418	418	449	469	Fab8D	86	84	86	86
Fab8F	8"	0.18 – 0.11	388	388	389	388	Fab8E	105	103	105	105
Fab8S	8"	0.18 – 0.11	335	335	348	307	Fab8F	98	96	98	98
Fab8N	8"	0.5 – 0.13	547	469	-	-	Fab8S	84	83	84	84
Fab12A	12"	0.18 – 0.028	700	651	579	501	Fab8N	162	144	140	140
Fab12i	12"	0.13 – 0.040	573	550	537	530	Fab12A	198	183	180	174
Total ⁽¹⁾			6,323	6,107	5,514	5,322	Fab12i	144	139	135	145
YoY Growth Rate			4%	11%	4%	11%	Total	1,659	1,583	1,577	1,586

2011~2012 figures account for UMC parent company only.

⁽¹⁾ One 6-inch wafer is converted into 0.5625(6 ² /8 ² ) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25(12 ² /8 ² ) 8-inch equivalent wafers.Capacity total figures are expressed in 8-inch equivalent wafers.

*UMC sold part of plants and equipment to WTK; WTK figures represent 6-inch CMOS capacity.

CAPEX for Foundry Segment

Capital Expenditure by Year - in US$ billion
Year	2014	2013	2012	2011	2010
CAPEX	$ 1.4	$ 1.1	$ 1.7	$ 1.6	$ 1.8

2010~2012 figures account for UMC parent company only.

2015 CAPEX Plan
8"	12"	Total
13%	87%	US$1.8 billion

In 1Q15, capital expenditure spending was US$470 million . Foundry capital expenditure budget for 2015 is expected to be approximately US$1.8 billion , with 87% of the amount used for 12" advanced capacity expansion.

Second Quarter of 2015 Outlook & Guidance

Quarter-over-Quarter Guidance:

Foundry Segment Wafer Shipments: To remain flat
Foundry Segment ASP in US$: To remain flat
Foundry Segment Profitability: Gross profit margin will be in the mid-20 percentage range
Foundry Segment Capacity Utilization: Approximately 90%
2015 CAPEX for Foundry Segment: US$1.8bn
Guidance to New Business Segment: Revenue to be approximately NT$1.75bn and operating loss to be approximately NT$280mn

Recent Developments / Announcements

Apr. 22, 2015	UMC Files Form 20-F for 2014 with US Securities and Exchange Commission
Mar. 18, 2015	UMC Board of Directors Announces Proposals for its Annual Shareholders Meeting
Mar. 12, 2015	UMC Broadens its 55nm eFlash Platform with Faraday's Silicon-proven IP
Feb. 23, 2015	SST and UMC Announce 55 nm eFlash Memory Platform and 40 nm License
Jan. 28, 2015	UMC 4Q 2014 Financial Results

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

Conference Call / Webcast Announcement

Wednesday, April 29, 2015

Time:

5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM (London)

Dial-in numbers and Access Codes:

USA Toll Free:	1-800 871-3110, 1-888 700-7397
Taiwan Number:	02-2192-8016
Other Areas:	+886-2-2192-8016

Access Code:	UMC

A live webcast and replay of the 1Q15 results announcement will be available at www.umc.com under the "Investors / Events" section.

About UMC

UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing for applications spanning every major sector of the IC industry. UMC's robust foundry solutions allow chip designers to leverage the company's leading-edge processes, which include 28nm poly-SiON and gate-last High-K/Metal Gate technology, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore -based Fab 12i. Fab 12A consists of Phases 1-4 which are in production for customer products down to 28nm. Construction has been completed for Phases 5&6, with future plans for Phases 7&8. The company employs over 16,000 people worldwide and has offices in Taiwan , mainland China , Europe , Japan , Korea, Singapore , and the United States . UMC can be found on the web at http://www.umc.com

Note from UMC Concerning Forward-Looking Statements

Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S. Federal Securities laws, including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks. Further information regarding these and other risks is included in UMC's filings with the U.S. Securities and Exchange Commission, including its registration statements and reports on Forms F-1, F-3, F-6 and 20-F and 6-K, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

Safe Harbor Statements

This release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by use of words such as "strategy," "expects," "continues," "plans," "anticipates," "believes," "will," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts.

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international global business activities; (iv) our 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 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 U.S. Securities and Exchange Commission, including its registration statements and reports on Form F-1, F-3, F-6 and 20-F and 6-K, in each case as amended. 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 TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from 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 ROC GAAP and US GAAP.

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

Notes:

[1]Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending Mar 31, 2015 , the three-month period ending Dec 31, 2014 , and the equivalent three-month period that ended Mar 31, 2014 . For all 1Q15 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Mar 31, 2015 exchange rate of NT$ 31.30 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:

Bowen Huang / David Wong
UMC, Investor Relations
+ 886-2-2658-9168, ext. 16900
Email Contact
Email Contact

- FINANCIAL TABLES TO FOLLOW -

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheet
As of March 31, 2015
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)


	March 31, 2015
	US$	NT$	%
Assets
Current assets
Cash and cash equivalents	1,713	53,632	16.7%
Financial assets at fair value through profit or loss, current	29	901	0.3%
Notes & Accounts receivable, net	659	20,623	6.4%
Inventories, net	500	15,641	4.9%
Non-current assets held for sale	186	5,813	1.8%
Other current assets	141	4,424	1.4%
Total current assets	3,228	101,034	31.5%

Non-current assets
Funds and investments	1,283	40,149	12.5%
Property, plant and equipment	5,302	165,956	51.7%
Other non-current assets	445	13,926	4.3%
Total non-current assets	7,030	220,031	68.5%
Total assets	10,258	321,065	100.0%

Liabilities
Current liabilities
Short-term loans	231	7,217	2.2%
Payables	910	28,475	8.9%
Liabilities directly associated with non-current assets held for sale	142	4,448	1.4%
Current portion of long-term liabilities	116	3,637	1.1%
Other current liabilities	21	666	0.2%
Total current liabilities	1,420	44,443	13.8%

Non-current liabilities
Bonds payable	798	24,979	7.8%
Long-term loans	317	9,911	3.1%
Other non-current liabilities	398	12,470	3.9%
Total non-current liabilities	1,513	47,360	14.8%
Total liabilities	2,933	91,803	28.6%

Equity
Equity attributable to the parent company
Capital	4,074	127,510	39.7%
Additional paid-in capital	1,265	39,606	12.3%
Retained earnings, unrealized gain or loss on available-for-sale financial assets and exchange differences on translation of foreign operations	1,937	60,618	18.9%
Treasury stock	(74)	(2,304)	(0.7%)
Total equity attributable to the parent company	7,202	225,430	70.2%
Non-controlling interests	123	3,832	1.2%
Total equity	7,325	229,262	71.4%
Total liabilities and equity	10,258	321,065	100.0%


Note ： New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2015 exchange rate of NT $31.30 per U.S. Dollar.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data


	Year over Year Comparison					Quarter over Quarter Comparison
	Three-Month Period Ended					Three-Month Period Ended
	March 31, 2015		March 31, 2014		%	March 31, 2015		December 31, 2014		%
	US$	NT$	US$	NT$	Chg.	US$	NT$	US$	NT$	Chg.
Net operating revenues	1,203	37,650	1,013	31,694	18.8%	1,203	37,650	1,190	37,235	1.1%
Operating costs	(911)	(28,495)	(824)	(25,793)	10.5%	(911)	(28,495)	(865)	(27,049)	5.3%
Gross profit	292	9,155	189	5,901	55.1%	292	9,155	325	10,186	(10.1%)
	24.3%	24.3%	18.6%	18.6%		24.3%	24.3%	27.4%	27.4%
Operating expenses
- Sales and marketing expenses	(33)	(1,045)	(27)	(833)	25.5%	(33)	(1,045)	(36)	(1,124)	(7.0%)
- General and administrative expenses	(31)	(953)	(27)	(848)	12.4%	(31)	(953)	(32)	(1,013)	(5.9%)
- Research and development expenses	(93)	(2,916)	(107)	(3,335)	(12.6%)	(93)	(2,916)	(113)	(3,535)	(17.5%)
Subtotal	(157)	(4,914)	(161)	(5,016)	(2.0%)	(157)	(4,914)	(181)	(5,672)	(13.4%)
Net other operating income and expenses	(4)	(142)	2	56	-	(4)	(142)	1	18	-
Operating income	131	4,099	30	941	100.0%	131	4,099	145	4,532	(9.6%)
	10.9%	10.9%	3.0%	3.0%		10.9%	10.9%	12.2%	12.2%

Net non-operating income and expenses	8	255	11	351	(27.4%)	8	255	27	843	(69.8%)
Income from continuing operations before income tax	139	4,354	41	1,292	100.0%	139	4,354	172	5,375	(19.0%)
	11.6%	11.6%	4.1%	4.1%		11.6%	11.6%	14.4%	14.4%

Income tax expense	(14)	(442)	(6)	(181)	100.0%	(14)	(442)	(29)	(911)	(51.5%)
Net income	125	3,912	35	1,111	100.0%	125	3,912	143	4,464	(12.4%)
	10.4%	10.4%	3.5%	3.5%		10.4%	10.4%	12.0%	12.0%

Other comprehensive income (loss)	(3)	(107)	132	4,130	-	(3)	(107)	128	4,006	-

Total comprehensive income	122	3,805	167	5,241	(27.4%)	122	3,805	271	8,470	(55.1%)

Net income attributable to:
Stockholders of the parent	127	3,980	38	1,180	100.0%	127	3,980	146	4,563	(12.8%)
Non-controlling interests	(2)	(68)	(3)	(69)	(1.4%)	(2)	(68)	(3)	(99)	(31.3%)

Comprehensive income attributable to:
Stockholders of the parent	125	3,910	168	5,261	(25.7%)	125	3,910	271	8,467	(53.8%)
Non-controlling interests	(3)	(105)	(1)	(20)	100.0%	(3)	(105)	0	3	-

Earnings per share-basic	0.010	0.32	0.003	0.09		0.010	0.32	0.012	0.36
Earnings per ADS ⁽²⁾	0.051	1.60	0.014	0.45		0.051	1.60	0.058	1.80
Weighted average number of shares
outstanding (in millions)		12,526		12,480			12,526		12,510


Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2015 exchange rate of NT $31.30 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data

	For the Three-Month Period Ended			For the Three-Month Period Ended
	March 31, 2015			March 31, 2015
	US$	NT$	%	US$	NT$	%
Net operating revenues	1,203	37,650	100.0%	1,203	37,650	100.0%
Operating costs	(911)	(28,495)	(75.7%)	(911)	(28,495)	(75.7%)
Gross profit	292	9,155	24.3%	292	9,155	24.3%


Operating expenses
- Sales and marketing expenses	(33)	(1,045)	(2.8%)	(33)	(1,045)	(2.8%)
- General and administrative expenses	(31)	(953)	(2.5%)	(31)	(953)	(2.5%)
- Research and development expenses	(93)	(2,916)	(7.7%)	(93)	(2,916)	(7.7%)
Subtotal	(157)	(4,914)	(13.0%)	(157)	(4,914)	(13.0%)
Net other operating income and expenses	(4)	(142)	(0.4%)	(4)	(142)	(0.4%)
Operating income	131	4,099	10.9%	131	4,099	10.9%

Net non-operating income and expenses	8	255	0.7%	8	255	0.7%
Income from continuing operations before income tax	139	4,354	11.6%	139	4,354	11.6%


Income tax expense	(14)	(442)	(1.2%)	(14)	(442)	(1.2%)
Net income	125	3,912	10.4%	125	3,912	10.4%

Other comprehensive loss	(3)	(107)	(0.3%)	(3)	(107)	(0.3%)

Total comprehensive income	122	3,805	10.1%	122	3,805	10.1%

Net income attributable to:
Stockholders of the parent	127	3,980	10.6%	127	3,980	10.6%
Non-controlling interests	(2)	(68)	(0.2%)	(2)	(68)	(0.2%)

Comprehensive income attributable to:
Stockholders of the parent	125	3,910	10.4%	125	3,910	10.4%
Non-controlling interests	(3)	(105)	(0.3%)	(3)	(105)	(0.3%)

Earnings per share-basic	0.010	0.32		0.010	0.32
Earnings per ADS ⁽²⁾	0.051	1.60		0.051	1.60

Weighted average number of shares outstanding (in millions)		12,526			12,526

Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2015 exchange rate of NT $31.30 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statement of Cash Flows
For The Three-Month Period Ended March 31, 2015
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

	USD	NTD
Cash flows from operating activities :
Net income before tax	139	4,354
Depreciation & Amortization	343	10,748
Impairment loss on non-financial assets	7	226
Gain on disposal of investments	(6)	(190)
Changes in notes & accounts receivable	65	2,039
Changes in assets, liabilities and others	(9)	(307)
Net cash provided by operating activities	539	16,870

Cash flows from investing activities :
Acquisition of available-for-sale financial assets	(61)	(1,897)
Proceeds from disposal of available-for-sale financial assets	7	209
Acquisition of subsidiaries (net of cash acquired)	13	415
Acquisition of property, plant and equipment	(476)	(14,893)
Proceeds from disposal of non-current assets held for sale	21	642
Acquisition of intangible assets	(11)	(344)
Others	(20)	(630)
Net cash used in investing activities	(527)	(16,498)

Cash flows from financing activities :
Increase in short-term loans	28	866
Proceeds from long-term loans	109	3,404
Repayments of long-term loans	(82)	(2,554)
Increase in other financial liabilities	195	6,108
Others	11	331
Net cash provided by financing activities	261	8,155

Effect of exchange rate changes on cash and cash equivalents	(25)	(776)
Net increase in cash and cash equivalents	248	7,751

Cash and cash equivalents at beginning of period	1,476	46,212

Cash and cash equivalents at end of period	1,724	53,963

Reconciliation of the balances of cash and cash equivalents at end of period :
Cash and cash equivalents balances on the consolidated balance sheets	1,713	53,632
Cash and cash equivalents included in non-current assets held for sale	11	331
Cash and cash equivalents at end of period	1,724	53,963


Note: New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2015 exchange rate of NT $31.30 per U.S. Dollar.

To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/umc-reports-first-quarter-2015-results-300074132.html

SOURCE United Microelectronics Corporation

Contact:

United Microelectronics Corporation
Web: http://www.umc.com

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