UMC Reports First Quarter 2019 Results

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the first quarter of 2019.

First quarter consolidated revenue was NT$32.58 billion, down 8.3% QoQ from NT$35.52 billion in 4Q18 and declined 13.1% YoY from NT$37.50 billion in 1Q18. Consolidated gross margin for 1Q19 was 6.9%. Net income attributable to stockholders of the parent was NT$1.20 billion, with earnings per ordinary share of NT$0.10.

Jason Wang, co-president of UMC, said, “In the first quarter, foundry revenue declined 8.3% QoQ to NT$32.56 billion, leading to a foundry operating loss of 4.6%. Utilization rate was 83%, bringing wafer shipments to 1.61 million 8-inch equivalent wafers. Although overall wafer demand declined during the first quarter, we observed stable wafer shipments from the wireless communications segment, solidified by smartphone related components such as display, RF, application processor and baseband modem. We continue to build on our promise of building shareholder value, and in Q1 our Board of Directors proposed to distribute a cash dividend of approximately NT$0.58 per share, subject to shareholder approval during the annual shareholder meeting (AGM).”

Co-president Wang further commented, “Entering the second quarter of 2019, UMC will sustain its energy on its continuing transformation, which will allow us to best take advantage of improving wafer demand within wired and wireless communication segments, with smartphones, networking, and display related products currently seeing better than expected conditions. Going forward, our strategy to stay focused on developing existing logic and specialty solutions across numerous technology platforms will help us enhance our market relevance to secure future business and expand our presence in the IC industry. We are confident that by continuing to responsibly execute our technology development, capacity expansion and customer service, we can bring optimal value to the company, its shareholders, and employees.”

Summary of Operating Results

Operating Results
(Amount: NT$ million)		1Q19		4Q18		QoQ % change		1Q18		YoY % change
Operating Revenues		32,583		35,517		(8.3)		37,497		(13.1)
Gross Profit		2,262		4,601		(50.8)		4,642		(51.3)
Operating Expenses		(4,932)		(6,396)		(22.9)		(4,850)		1.7
Net Other Operating Income and Expenses		1,073		1,206		(11.0)		977		9.8
Operating Income (Loss)		(1,597)		(589)		171.3		769		-
Net Non-Operating Income and Expenses		1,247		(1,998)		-		1,088		14.6
Net Income (Loss) Attributable to Stockholders of the Parent		1,201		(1,707)		-		3,400		(64.7)
EPS (NT$ per share)		0.10		(0.14)				0.28
(US$ per ADS)		0.016		(0.023)				0.045

Operating revenues in 1Q19 declined 8.3% to NT$32.58 billion, including NT$32.56 billion from the foundry segment. Revenue contribution from 40nm and below technologies was 30%. Gross profit fell 50.8% to NT$2.26 billion, or 6.9% of revenue. Operating expenses declined 22.9% to NT$4.93 billion. Net other operating income was NT$1.07 billion, leading to an operating loss of NT$1.60 billion. Net non-operating income was NT$1.25 billion. Net income attributable to stockholders of the parent was NT$1.20 billion.

Earnings per ordinary share for the quarter was NT$0.10. Earnings per ADS was US$0.016. The basic weighted average number of outstanding shares in 1Q19 was 11,908,706,645, compared with 12,111,826,935 shares in 4Q18 and 12,202,773,078 shares in 1Q18. The diluted weighted average number of outstanding shares was 13,238,181,278 in 1Q19, compared with 12,111,826,935 shares in 4Q18 and 13,457,161,259 shares in 1Q18. The fully diluted share count on March 31, 2019 was approximately 13,453,794,000. On March 31, 2019, UMC held 200 million treasury shares acquired from the 17th share buy-back program.

Detailed Financials Section

COGS & Expenses
(Amount: NT$ million)		1Q19		4Q18		QoQ % change		1Q18		YoY % change
Operating Revenues		32,583		35,517		(8.3)		37,497		(13.1)
COGS		(30,321)		(30,916)		(1.9)		(32,855)		(7.7)
Depreciation		(10,497)		(10,228)		2.6		(11,815)		(11.2)
Other Mfg. Costs		(19,824)		(20,688)		(4.2)		(21,040)		(5.8)
Gross Profit		2,262		4,601		(50.8)		4,642		(51.3)
Gross Margin (%)		6.9%		13.0%				12.4%
Operating Expenses		(4,932)		(6,396)		(22.9)		(4,850)		1.7
G&A		(1,236)		(1,339)		(7.7)		(1,017)		21.5
Sales & Marketing		(889)		(903)		(1.6)		(909)		(2.2)
R&D		(2,807)		(3,745)		(25.0)		(2,924)		(4.0)
Expected Credit Losses		-		(409)		(100.0)		-		-
Net Other Operating Income & Expenses		1,073		1,206		(11.0)		977		9.8
Operating Income (Loss)		(1,597)		(589)		171.3		769		-

Operating revenues decreased 8.3% to NT$32.58 billion. COGS declined 1.9% to NT$30.32 billion, as depreciation increased 2.6% to NT$10.50 billion while other manufacturing costs declined 4.2% to NT$19.82 billion. Gross profit was NT$2.26 billion. Operating expenses declined 22.9% to NT$4.93 billion, which included a 25% decrease in R&D expense to NT$2.81 billion and a 7.7% decline in General and Administrative (G&A) expense. R&D expense represented 8.6% of 1Q19 operating revenues and net other operating income was NT$1.07 billion. Overall, the company realized an operating loss of NT$1.60 billion.

Non-Operating Income and Expenses
(Amount: NT$ million)		1Q19		4Q18		1Q18
Non-Operating Income and Expenses		1,247		(1,998)		1,088
Net Interest Income and Expenses		(473)		(438)		(529)
Net Investment Gain and Loss		1,228		(1,859)		582
Exchange Gain and Loss		507		304		1,021
Other Gain and Loss		(15)		(5)		14

Net non-operating income in 1Q19 was NT$1.25 billion, primarily resulting from NT$1.23 billion in net investment gain and NT$507 million in exchange gain, partly offset by NT$473 million in net interest expense.

Cash Flow Summary
(Amount: NT$ million)		For the 3-Month Period Ended Mar. 31, 2019		For the 3-Month Period Ended Dec. 31, 2018
Cash Flow from Operating Activities		8,183		12,123
Net loss before tax		(350)		(2,587)
Depreciation & Amortization		12,380		12,414
Expected credit losses		-		409
Net loss (gain) of financial assets and liabilities at FVTPL		(1,032)		635
Share of profit or loss of associates and joint ventures		(196)		1,148
Exchange gain on financial assets and liabilities		(554)		(68)
Changes in working capital		(1,339)		1,319
Interest paid		(215)		(905)
Other		(511)		(242)
Cash Flow from Investing Activities		(5,683)		(4,613)
Acquisition of PP&E		(5,563)		(4,361)
Acquisition of intangible assets		(530)		(292)
Other		410		40
Cash Flow from Financing Activities		2,180		(5,724)
Bank loans		2,463		(2,863)
Treasury stock acquired		(331)		(3,019)
Other		48		158
Effect of Exchange Rate		396		356
Net Cash Flow		5,076		2,142

Cash inflow from operating activities was NT$8.18 billion. CAPEX from foundry segment was NT$5.75 billion leading in free cash flow of NT$2.43 billion. Cash inflow from financing activities totaled NT$2.18 billion, including NT$2.46 billion cash inflow from bank loans and NT$331 million payment of treasury share buyback. Net cash inflow in 1Q19 was NT$5.08 billion. Over the next 12 months, the company expects to repay NT$1.56 billion in bank loans.

Current Assets
(Amount: NT$ billion)		1Q19		4Q18		1Q18
Cash and Cash Equivalents		88.74		83.66		77.14
Notes & Accounts Receivable		22.99		23.88		25.01
Days Sales Outstanding		66		64		56
Inventories, net		18.87		18.20		17.14
Days of Inventory		56		53		49
Total Current Assets		146.80		141.19		136.42

Cash and cash equivalents increased to NT$88.74 billion. Days of inventory increased three days to 56 days.

Liabilities
(Amount: NT$ billion)		1Q19		4Q18		1Q18
Total Current Liabilities		52.64		49.90		72.57
Notes & Accounts Payable		6.78		6.80		7.00
Short-Term Credit / Bonds		23.35		18.23		40.00
Payable on Equipment		2.95		4.01		2.97
Other		19.56		20.86		22.60
Long-Term Credit / Bonds		64.98		67.08		52.61
Long-Term Investment Liabilities		20.99		20.41		20.90
Total Liabilities		164.32		158.07		169.35
Debt to Equity		78%		77%		78%

Current liabilities increased to NT$52.64 billion. Total liabilities increased to NT$164.32 billion, leading to a debt to equity ratio of 78%.

Analysis of Revenue² for Foundry Segment

Revenue Breakdown by Region
Region		1Q19		4Q18		3Q18		2Q18		1Q18
North America		32%		38%		34%		37%		42%
Asia Pacific		57%		51%		52%		51%		47%
Europe		7%		8%		11%		9%		8%
Japan		4%		3%		3%		3%		3%

Revenue from Asia Pacific increased to 57%, while contribution from North American customers declined to 32%. Revenue from Europe and Japan was 7% and 4%, respectively.

Revenue Breakdown by Geometry
Geometry		1Q19		4Q18		3Q18		2Q18		1Q18
14nm and below		0%		1%		5%		3%		2%
14nm<x<=28nm		10%		10%		13%		15%		12%
28nm<x<=40nm		20%		23%		22%		26%		30%
40nm<x<=65nm		14%		13%		12%		12%		13%
65nm<x<=90nm		12%		11%		10%		7%		6%
90nm<x<=0.13um		15%		13%		11%		11%		11%
0.13um<x<=0.18um		15%		15%		14%		13%		13%
0.18um<x<=0.35um		11%		11%		10%		10%		10%
0.5um and above		3%		3%		3%		3%		3%

Revenue contribution from 28nm remained flat at 10% as 40nm business accounted for 20% of sales.

Revenue Breakdown by Customer Type
Customer Type		1Q19		4Q18		3Q18		2Q18		1Q18
Fabless		94%		92%		93%		92%		92%
IDM		6%		8%		7%		8%		8%

Revenue from fabless customers increased to 94% of revenue.

Revenue Breakdown by Application (1)
Application		1Q19		4Q18		3Q18		2Q18		1Q18
Computer		15%		15%		19%		16%		14%
Communication		48%		44%		43%		47%		47%
Consumer		29%		30%		28%		28%		29%
Others		8%		11%		10%		9%		10%

The communication segment increased to 48% of sales, while revenue from consumer applications was 29%. Computer related applications remained at 15% 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 1Q19 decreased slightly.

(To view ASP trend, visit http://www.umc.com/english/investors/1Q19_ASP_trend.asp)

Shipment and Utilization Rate³ for Foundry Segment

Wafer Shipments
		1Q19		4Q18		3Q18		2Q18		1Q18
Wafer Shipments (8” K equivalents)		1,611		1,711		1,804		1,846		1,747
Quarterly Capacity Utilization Rate
		1Q19		4Q18		3Q18		2Q18		1Q18
Utilization Rate		83%		88%		94%		97%		94%
Total Capacity (8” K equivalents)		1,937		1,958		1,938		1,918		1,858

In 1Q19, wafer shipments decreased 5.8% to 1,611K. Quarterly capacity declined 1.1% QoQ to 1,937K, resulting in an overall utilization rate of 83%.

Capacity⁴ for Foundry Segment

Total capacity in the first quarter totaled 1,937K 8-inch equivalent wafers. We expect second quarter capacity to increase by approximately 2.7% QoQ to 1,989K 8-inch equivalent wafers, mainly attributed to the ongoing expansion efforts at HJ.

Annual Capacity in thousands of wafers															Quarterly Capacity in thousands of wafers
FAB				Geometry (um)		2018		2017		2016		2015			FAB		2Q19E		1Q19		4Q18		3Q18
WTK		6"		3.5 – 0.45		396		422		423		421			WTK		93		91		93		93
Fab 8A		8"		0.5 – 0.25		825		825		827		813			Fab 8A		207		204		207		207
Fab 8C		8"		0.35 – 0.11		383		357		348		347			Fab 8C		109		106		108		92
Fab 8D		8"		0.13 – 0.09		347		341		342		341			Fab 8D		90		89		90		86
Fab 8E		8"		0.5 – 0.18		418		418		419		418			Fab 8E		105		103		105		105
Fab 8F		8"		0.18 – 0.11		431		417		401		388			Fab 8F		108		107		108		108
Fab 8S		8"		0.18 – 0.11		372		347		336		335			Fab 8S		93		92		93		93
HJ		8"		0.5 – 0.11		771		753		750		667			HJ		224		201		194		194
Fab 12A		12"		0.13 – 0.014		997		970		885		793			Fab 12A		250		246		250		250
Fab 12i		12"		0.13 – 0.040		555		537		584		572			Fab 12i		144		141		144		144
USCXM		12"		0.040 – 0.028		183		97		9		-			USCXM		51		50		51		51
Total(1)						7,673		7,304		6,983		6,617			Total		1,989		1,937		1,958		1,938
YoY Growth Rate						5%		5%		6%		5%

⁽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		2018		2017		2016		2015		2014
CAPEX		$ 0.7		$ 1.4		$ 2.8		$ 1.9		$ 1.4

2019 CAPEX Plan

8"		12"		Total
25%		75%		US$1.0 billion

CAPEX spending in 1Q19 was US$186 million. Full year 2019 CAPEX is budgeted for US$1.0 billion.

Second Quarter of 2019 Outlook & Guidance

Quarter-over-Quarter Guidance:

• Wafer Shipments: To increase by 6-7%
• ASP in USD: To increase by 3%
• Profitability: Gross profit margin will be in the low teens % range
• Foundry Segment Capacity Utilization: mid-80% range
• 2019 CAPEX for Foundry Segment: US$1.0 billion

Recent Developments / Announcements

Mar. 6, 2019

UMC Board of Directors Announces Proposals for its Annual Shareholders Meeting

Jan. 29, 2019

UMC 4Q 2018 Financial Results

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

Conference Call / Webcast Announcement

Wednesday, April 24, 2019

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 1Q19 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 IC production for 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 world-class 28nm High-K/Metal Gate technology, 14nm FinFET volume production, 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 11 wafer fabs are strategically located throughout Asia and are able to produce over 600,000 wafers per month. The company employs more than 20,000 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.

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 introduction of new services and technologies, future outsourcing, competition, wafer capacity, 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. 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 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. 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) 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. 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.

This release 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.

- FINANCIAL TABLES TO FOLLOW -

	UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
	Consolidated Condensed Balance Sheet
	As of March 31, 2019
	Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
			March 31, 2019
			US$		NT$		%
	Assets
	Current assets
	Cash and cash equivalents		2,880		88,738		23.7%
	Financial assets at fair value through profit or loss, current		18		552		0.2%
	Notes & Accounts receivable, net		746		22,992		6.1%
	Inventories, net		613		18,874		5.1%
	Other current assets		507		15,640		4.1%
	Total current assets		4,764		146,796		39.2%
	Non-current assets
	Funds and investments		1,209		37,255		10.0%
	Property, plant and equipment		5,447		167,823		44.9%
	Right-of-use assets		277		8,548		2.3%
	Other non-current assets		446		13,716		3.6%
	Total non-current assets		7,379		227,342		60.8%
	Total assets		12,143		374,138		100.0%
	Liabilities
	Current liabilities
	Short-term loans		545		16,798		4.5%
	Payables		728		22,417		6.0%
	Current portion of long-term liabilities		213		6,553		1.8%
	Other current liabilities		222		6,877		1.8%
	Total current liabilities		1,708		52,645		14.1%
	Non-current liabilities
	Bonds payable		1,184		36,471		9.8%
	Long-term loans		925		28,505		7.6%
	Lease liabilities, noncurrent		180		5,539		1.5%
	Other non-current liabilities		1,336		41,164		10.9%
	Total non-current liabilities		3,625		111,679		29.8%
	Total liabilities		5,333		164,324		43.9%
	Equity
	Equity attributable to the parent company
	Capital		3,935		121,243		32.4%
	Additional paid-in capital		1,304		40,164		10.8%
	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		1,638		50,470		13.5%
	Treasury stock		(82)		(2,516)		(0.7%)
	Total equity attributable to the parent company		6,795		209,361		56.0%
	Non-controlling interests		15		453		0.1%
	Total equity		6,810		209,814		56.1%
	Total liabilities and equity		12,143		374,138		100.0%
	Note：New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2019 exchange rate of NT $30.81 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, 2019				March 31, 2018				Chg.		March 31, 2019				December 31, 2018				Chg.
		US$		NT$		US$		NT$		%		US$		NT$		US$		NT$		%
Operating revenues		1,058		32,583		1,217		37,497		(13.1%)		1,058		32,583		1,153		35,517		(8.3%)
Operating costs		(985)		(30,321)		(1,066)		(32,855)		(7.7%)		(985)		(30,321)		(1,004)		(30,916)		(1.9%)
Gross profit		73		2,262		151		4,642		(51.3%)		73		2,262		149		4,601		(50.8%)
		6.9%		6.9%		12.4%		12.4%				6.9%		6.9%		13.0%		13.0%
Operating expenses
- Sales and marketing expenses		(29)		(889)		(30)		(909)		(2.2%)		(29)		(889)		(29)		(903)		(1.6%)
- General and administrative expenses		(40)		(1,236)		(33)		(1,017)		21.5%		(40)		(1,236)		(43)		(1,339)		(7.7%)
- Research and development expenses		(91)		(2,807)		(95)		(2,924)		(4.0%)		(91)		(2,807)		(122)		(3,745)		(25.0%)
- Expected credit losses		-		-		-		-		-		-		-		(13)		(409)		(100.0%)
Subtotal		(160)		(4,932)		(158)		(4,850)		1.7%		(160)		(4,932)		(207)		(6,396)		(22.9%)
Net other operating income and expenses		35		1,073		32		977		9.8%		35		1,073		39		1,206		(11.0%)
Operating income (loss)		(52)		(1,597)		25		769		-		(52)		(1,597)		(19)		(589)		171.3%
		(4.9%)		(4.9%)		2.1%		2.1%				(4.9%)		(4.9%)		(1.7%)		(1.7%)
Net non-operating income and expenses		41		1,247		35		1,088		14.6%		41		1,247		(65)		(1,998)		-
Income (loss) from continuing operations before income tax		(11)		(350)		60		1,857		-		(11)		(350)		(84)		(2,587)		(86.5%)
		(1.1%)		(1.1%)		5.0%		5.0%				(1.1%)		(1.1%)		(7.3%)		(7.3%)
Income tax benefit (expense)		14		443		38		1,173		(62.3%)		14		443		(13)		(413)		-
Net income (loss)		3		93		98		3,030		(96.9%)		3		93		(97)		(3,000)		-
		0.3%		0.3%		8.1%		8.1%				0.3%		0.3%		(8.4%)		(8.4%)
Other comprehensive income (loss)		117		3,614		(7)		(234)		-		117		3,614		3		110		3,185.5%
Total comprehensive income (loss)		120		3,707		91		2,796		32.6%		120		3,707		(94)		(2,890)		-
Net income (loss) attributable to:
Stockholders of the parent		39		1,201		110		3,400		(64.7%)		39		1,201		(55)		(1,707)		-
Non-controlling interests		(36)		(1,108)		(12)		(370)		199.0%		(36)		(1,108)		(42)		(1,293)		(14.3%)
Comprehensive income (loss) attributable to:
Stockholders of the parent		156		4,813		102		3,158		52.4%		156		4,813		(52)		(1,608)		-
Non-controlling interests		(36)		(1,106)		(11)		(362)		205.5%		(36)		(1,106)		(42)		(1,282)		(13.7%)
Earnings per share-basic		0.003		0.10		0.009		0.28				0.003		0.10		(0.005)		(0.14)
Earnings per ADS (2)		0.016		0.50		0.045		1.40				0.016		0.50		(0.023)		(0.70)
Weighted average number of shares outstanding (in millions)				11,909				12,203						11,909				12,112

Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2019 exchange rate of NT $30.81 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, 2019						March 31, 2019
		US$		NT$		%		US$		NT$		%
Operating revenues		1,058		32,583		100.0%		1,058		32,583		100.0%
Operating costs		(985)		(30,321)		(93.1%)		(985)		(30,321)		(93.1%)
Gross profit		73		2,262		6.9%		73		2,262		6.9%
Operating expenses
- Sales and marketing expenses		(29)		(889)		(2.7%)		(29)		(889)		(2.7%)
- General and administrative expenses		(40)		(1,236)		(3.8%)		(40)		(1,236)		(3.8%)
- Research and development expenses		(91)		(2,807)		(8.6%)		(91)		(2,807)		(8.6%)
Subtotal		(160)		(4,932)		(15.1%)		(160)		(4,932)		(15.1%)
Net other operating income and expenses		35		1,073		3.3%		35		1,073		3.3%
Operating loss		(52)		(1,597)		(4.9%)		(52)		(1,597)		(4.9%)
Net non-operating income and expenses		41		1,247		3.8%		41		1,247		3.8%
Loss from continuing operations before income tax		(11)		(350)		(1.1%)		(11)		(350)		(1.1%)
Income tax benefit		14		443		1.4%		14		443		1.4%
Net income		3		93		0.3%		3		93		0.3%
Other comprehensive income (loss)		117		3,614		11.1%		117		3,614		11.1%
Total comprehensive income (loss)		120		3,707		11.4%		120		3,707		11.4%
Net income (loss) attributable to:
Stockholders of the parent		39		1,201		3.7%		39		1,201		3.7%
Non-controlling interests		(36)		(1,108)		(3.4%)		(36)		(1,108)		(3.4%)
Comprehensive income (loss) attributable to:
Stockholders of the parent		156		4,813		14.8%		156		4,813		14.8%
Non-controlling interests		(36)		(1,106)		(3.4%)		(36)		(1,106)		(3.4%)
Earnings per share-basic		0.003		0.10				0.003		0.10
Earnings per ADS (2)		0.016		0.50				0.016		0.50
Weighted average number of shares outstanding (in millions)				11,909						11,909
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2019 exchange rate of NT $30.81 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, 2019
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
	US$		NT$
Cash flows from operating activities :
Net loss before tax	(11)		(350)
Depreciation & Amortization	402		12,380
Net gain of financial assets and liabilities at fair value through profit or loss	(33)		(1,032)
Exchange gain on financial assets and liabilities	(18)		(554)
Changes in notes & accounts receivable	27		831
Changes in other payables	(33)		(1,020)
Changes in assets, liabilities and others	(68)		(2,072)
Net cash provided by operating activities	266		8,183
Cash flows from investing activities :
Acquisition of property, plant and equipment	(181)		(5,563)
Acquisition of intangible assets	(17)		(530)
Others	14		410
Net cash used in investing activities	(184)		(5,683)
Cash flows from financing activities :
Increase in short-term loans	113		3,467
Proceeds from long-term loans	24		748
Repayments of long-term loans	(57)		(1,752)
Treasury stock acquired	(11)		(331)
Others	2		48
Net cash provided by financing activities	71		2,180
Effect of exchange rate changes on cash and cash equivalents	12		396
Net increase in cash and cash equivalents	165		5,076
Cash and cash equivalents at beginning of period	2,715		83,662
Cash and cash equivalents at end of period	2,880		88,738
Note: New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2019 exchange rate of NT $30.81 per U.S. Dollar.

¹ Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending March 31, 2019, the three-month period ending December 31, 2018, and the equivalent three-month period that ended March 31, 2018. For all 1Q19 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the March 31, 2019 exchange rate of NT$ 30.81 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.

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