UMC Reports Fourth Quarter 2023 Results

Company posts full-year 2023 EPS of NT$4.93; 22/28nm contribution in Q4 reaches 36% 12nm collaboration will propel long-term growth beyond 22/28nm

Fourth Quarter 2023 Overview1:

  • Revenue: NT$54.96 billion (US$1.79 billion)
  • Gross margin: 32.4%; Operating margin: 22.6%
  • Revenue from 22/28nm: 36%
  • Capacity utilization rate: 66%
  • Net income attributable to shareholders of the parent: NT$13.20 billion (US$430 million)
  • Earnings per share: NT$1.06; earnings per ADS: US$0.173

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 2023.

Fourth quarter consolidated revenue was NT$54.96 billion, decreasing 3.7% QoQ from NT$57.07 billion in 3Q23. Compared to a year ago, 4Q23 revenue declined 19.0% YoY from NT$67.84 billion in 4Q22. Consolidated gross margin for 4Q23 was 32.4%. Net income attributable to the shareholders of the parent was NT$13.20 billion, with earnings per ordinary share of NT$1.06.

Jason Wang, co-president of UMC, said, “In the fourth quarter, challenging macroeconomic conditions continued to prolong the inventory correction in the semiconductor industry as our wafer shipments decreased 2.5% QoQ while overall fab utilization rate slightly fell to 66%. As our Tainan 12A P6 facility continues to ramp, our 22/28nm represented 36% of our Q4 wafer revenue, reflecting record high in revenue as well as percentage of wafer sales.”

“Overall, 2023 was a year where UMC demonstrated its resilience in face of challenging external environment, as optimization in product mix continued to lift 2023 blended ASP by mid-single digit YoY. In addition, we were successful in safeguarding the company's structural profitability with a gross margin of 34.9% in 2023 even as utilization rate significantly declined YoY. Our financial performance also showed strong resilience, which can be attributed to diversified customer base and higher contribution from stronger business stickiness of our specialty technologies offering.”

Co-president Wang commented, “Looking into the first quarter of 2024, we anticipate overall wafer demand will increase mildly, however, customers maintain a cautious approach in their inventory management. Moving forward, UMC will continue to navigate headwinds amid an increasingly competitive landscape and swelling geopolitical tensions via diversified manufacturing base and differentiation in 12-inch specialty technologies. Our 12nm FinFET collaboration is a step forward in advancing our strategy of pursuing cost-efficient capacity expansion and technology node advancement in continuing our commitment to customers. This effort will enable our customers to smoothly migrate to this critical new node, and also benefit from the resiliency of an added Western footprint. We anticipate 12nm FinFET collaboration will broaden our addressable market and significantly accelerate our development roadmap.”

Co-president Wang added, “Over the years, UMC has invested in a number of circular economy initiatives. In 2023, we broke ground for the UMC Circular Economy & Recycling Innovation Center, which will serve to consolidate our efforts to maximize resource recovery and minimize waste. Once operational in 2025, the facility is expected to reduce waste from UMC’s Taiwan fabs by one-third. In addition, UMC continues to be recognized for its unwavering contributions to ESG by global institutions, receiving awards in consecutive years from DJSI, FTSE4Good and ISS. UMC also achieved a remarkable AA rating in the MSCI ESG Ratings. And for the first time, UMC was named as one of the "Best Companies to Work for in Asia" by HR Asia, an authoritative publication for HR professionals. UMC is committed to tackle growing sustainability issues with innovative and long-term solutions that can only be achieved through the hard work and collaboration of its stakeholders and employees.”

Summary of Operating Results

Operating Results

(Amount: NT$ million)

4Q23

 

3Q23

 

QoQ %

change

4Q22

 

YoY %

change

Operating Revenues

54,958

 

57,069

 

(3.7

)

67,836

 

(19.0

)

Gross Profit

17,806

 

20,461

 

(13.0

)

29,124

 

(38.9

)

Operating Expenses

(6,635

)

(5,722

)

16.0

 

(6,798

)

(2.4

)

Net Other Operating Income and Expenses

1,252

 

573

 

118.7

 

1,311

 

(4.5

)

Operating Income

12,423

 

15,312

 

(18.9

)

23,637

 

(47.4

)

Net Non-Operating Income and Expenses

2,227

 

3,336

 

(33.3

)

889

 

150.4

 

Net Income Attributable to Shareholders of the Parent

13,195

 

15,971

 

(17.4

)

19,068

 

(30.8

)

EPS (NT$ per share)

1.06

 

1.29

 

 

1.54

 

 

(US$ per ADS)

0.173

 

0.210

 

 

0.251

 

 

Fourth quarter operating revenues declined 3.7% sequentially to NT$54.96 billion. Revenue contribution from 40nm and below technologies represented 50% of wafer revenue, propelled by the revenue growth from 22/28nm in 4Q23. Gross profit decreased 13.0% QoQ to NT$17.81 billion, or 32.4% of revenue. Operating expenses increased 16.0% to NT$6.64 billion. Net other operating income increased to NT$1.25 billion. Net non-operating income totaled NT$2.23 billion. Net income attributable to shareholders of the parent amounted to NT$13.20 billion.

Earnings per ordinary share for the quarter was NT$1.06. Earnings per ADS was US$0.173. The basic weighted average number of shares outstanding in 4Q23 was 12,414,087,724, compared with 12,371,129,866 shares in 3Q23 and 12,348,880,384 shares in 4Q22. The diluted weighted average number of shares outstanding was 12,589,138,701 in 4Q23, compared with 12,566,773,628 shares in 3Q23 and 12,684,106,050 shares in 4Q22. The fully diluted shares counted on December 31, 2023 were approximately 12,589,139,000.

Detailed Financials Section

Operating revenues decreased to NT$54.96 billion. COGS grew 1.5% to NT$37.15 billion, which included 6.1% sequential increase in depreciation. Gross profit fell 13.0% QoQ to NT$17.81 billion. Operating expenses increased to NT$6.64 billion, as R&D grew 21.2% sequentially to NT$3.95 billion or 7.2% of revenue, while Sales & Marketing increased 12.0% to NT$0.82 billion and G&A was up 11.6% QoQ to NT$1.93 billion. Net other operating income was NT$1.25 billion. In 4Q23, operating income declined 18.9% QoQ to NT$12.42 billion.

COGS & Expenses

(Amount: NT$ million)

4Q23

 

3Q23

 

QoQ %

change

4Q22

 

YoY %

change

Operating Revenues

54,958

 

57,069

 

(3.7

)

67,836

 

(19.0

)

COGS

(37,152

)

(36,608

)

1.5

 

(38,712

)

(4.0

)

Depreciation

(9,006

)

(8,485

)

6.1

 

(8,898

)

1.2

 

Other Mfg. Costs

(28,146

)

(28,123

)

0.1

 

(29,814

)

(5.6

)

Gross Profit

17,806

 

20,461

 

(13.0

)

29,124

 

(38.9

)

Gross Margin (%)

32.4

%

35.9

%

 

42.9

%

 

Operating Expenses

(6,635

)

(5,722

)

16.0

 

(6,798

)

(2.4

)

Sales & Marketing

(823

)

(735

)

12.0

 

(953

)

(13.6

)

G&A

(1,930

)

(1,731

)

11.6

 

(2,438

)

(20.8

)

R&D

(3,945

)

(3,255

)

21.2

 

(3,407

)

15.8

 

Expected Credit Impairment gain (loss)

63

 

(1

)

-

 

(0

)

-

 

Net Other Operating Income & Expenses

1,252

 

573

 

118.7

 

1,311

 

(4.5

)

Operating Income

12,423

 

15,312

 

(18.9

)

23,637

 

(47.4

)

Net non-operating income in 4Q23 was NT$2.23 billion, primarily reflecting the NT$1.75 billion in net investment gain and the NT$0.88 billion in net interest income partially offset by the NT$0.41 billion in exchange loss.

Non-Operating Income and Expenses

(Amount: NT$ million)

4Q23

 

3Q23

4Q22

 

Non-Operating Income and Expenses

2,227

 

3,336

889

 

Net Interest Income and Expenses

880

 

617

584

 

Net Investment Gain and Loss

1,750

 

1,885

1,382

 

Exchange Gain and Loss

(405

)

324

(1,057

)

Other Gain and Loss

2

 

510

(20

)

In 4Q23, cash inflow from operating activities was NT$26.22 billion. Cash outflow from investing activities totaled NT$26.81 billion, which included NT$20.81 billion in capital expenditure, resulting in free cash flow of NT$5.41 billion. Cash outflow from financing was NT$3.89 billion, primarily from NT$4.44 billion in bank loans. Net cash outflow in 4Q23 amounted to NT$8.09 billion. Over the next 12 months, the company expects to repay NT$2.23 billion in bank loans.

Cash Flow Summary

(Amount: NT$ million)

For the 3-Month

Period Ended

Dec. 31, 2023

For the 3-Month

Period Ended

Sep. 30, 2023

Cash Flow from Operating Activities

26,217

19,059

Net income before tax

14,650

18,648

Depreciation & Amortization

10,721

9,928

Share of profit of associates and

joint ventures

(1,918)

(1,022)

Income tax paid

(15)

(1,216)

Changes in working capital & others

2,779

(7,279)

Cash Flow from Investing Activities

(26,813)

(17,720)

Increase in financial assets measured

at amortized cost

(6,134)

(141)

Acquisition of PP&E

(20,334)

(17,245)

Acquisition of intangible assets

(774)

(560)

Others

429

226

Cash Flow from Financing Activities

(3,892)

(27,602)

Bank loans

(4,435)

21,369

Bonds issued

-

10,000

Increase in deposits-in

720

7,425

Decrease in other financial liabilities

-

(21,209)

Cash dividends

-

(45,018)

Others

(177)

(169)

Effect of Exchange Rate

(3,600)

3,808

Net Cash Flow

(8,088)

(22,455)

Beginning balance

140,642

163,097

Ending balance

132,554

140,642

Cash and cash equivalents decreased to NT$132.55 billion. Days of inventory remained unchanged at 89 days.

Current Assets

(Amount: NT$ billion)

4Q23

3Q23

4Q22

Cash and Cash Equivalents

132.55

140.64

173.82

Notes & Accounts Receivable

29.59

31.11

36.98

Days Sales Outstanding

50

49

55

Inventories, net

35.71

36.56

31.07

Days of Inventory

89

89

72

Total Current Assets

216.80

219.28

252.37

Current liabilities slightly increased to NT$99.02 billion. Long-term credit/bonds decreased to NT$45.24 billion. Total liabilities increased to NT$199.61 billion, leading to a debt to equity ratio of 56%.

Liabilities

(Amount: NT$ billion)

4Q23

3Q23

4Q22

Total Current Liabilities

99.02

92.07

108.57

Accounts Payable

7.53

8.37

8.98

Short-Term Credit / Bonds

29.54

30.07

7.59

Payables on Equipment

19.20

15.95

18.63

Other

42.75

37.68

73.37

Long-Term Credit / Bonds

45.24

49.38

39.88

Long-Term Investment Liabilities

-

-

4.22

Total Liabilities

199.61

197.26

197.60

Debt to Equity

56%

56%

59%

Analysis of Revenue2

Revenue from Asia-Pacific increased to 62% while business from North America fell to 23% of sales. Business from Europe was 11% while contribution from Japan increased to 4%.

Revenue Breakdown by Region

Region

4Q23

3Q23

2Q23

1Q23

4Q22

North America

23%

27%

27%

31%

30%

Asia Pacific

62%

58%

56%

50%

54%

Europe

11%

12%

12%

11%

9%

Japan

4%

3%

5%

8%

7%

Revenue contribution from 22/28nm grew to 36% of the wafer revenue, while 40nm contribution was 14% of sales.

Revenue Breakdown by Geometry

Geometry

4Q23

3Q23

2Q23

1Q23

4Q22

14nm and below

0%

0%

0%

0%

0%

14nm<x<=28nm

36%

32%

29%

26%

28%

28nm<x<=40nm

14%

13%

12%

15%

17%

40nm<x<=65nm

16%

19%

23%

19%

17%

65nm<x<=90nm

9%

8%

10%

10%

9%

90nm<x<=0.13um

9%

12%

10%

12%

12%

0.13um<x<=0.18um

9%

9%

9%

10%

10%

0.18um<x<=0.35um

5%

5%

5%

6%

5%

0.5um and above

2%

2%

2%

2%

2%

Revenue from fabless customers accounted for 78% of revenue.

Revenue Breakdown by Customer Type

Customer Type

4Q23

3Q23

2Q23

1Q23

4Q22

Fabless

78%

79%

79%

77%

81%

IDM

22%

21%

21%

23%

19%

Revenue from the communication segment accounted for 47%, while business from computer applications remained at 13%. Business from consumer applications was 23% as other segments declined to 17% of revenue.

Revenue Breakdown by Application (1)

Application

4Q23

3Q23

2Q23

1Q23

4Q22

Computer

13%

13%

9%

9%

12%

Communication

47%

46%

44%

44%

45%

Consumer

23%

23%

26%

24%

25%

Others

17%

18%

21%

23%

18%

(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.

Blended ASP Trend

Blended average selling price (ASP) remained flat in 4Q23.

(To view blended ASP trend, please click here for 4Q23 ASP)

Shipment and Utilization Rate3

Wafer shipments decreased 2.5% QoQ to 775K in the fourth quarter, while quarterly capacity was 1,204K. Overall utilization rate in 4Q23 declined to 66%.

Wafer Shipments

 

4Q23

3Q23

2Q23

1Q23

4Q22

Wafer Shipments

(12” K equivalents)

775

795

814

811

984

 

 

 

 

 

 

Quarterly Capacity Utilization Rate

 

4Q23

3Q23

2Q23

1Q23

4Q22

Utilization Rate

66%

67%

71%

70%

90%

Total Capacity

(12” K equivalents)

1,204

1,182

1,167

1,121

1,130

Capacity4

Total capacity in the fourth quarter increased to 1,204K 12-inch equivalent wafers. Capacity will grow in the first quarter of 2024 to 1,212K 12-inch equivalent wafers, reflecting the continuous capacity expansion at 12A P6 facility.

Annual Capacity in

thousands of wafers

 

Quarterly Capacity in

thousands of wafers

FAB

Geometry

(um)

2023

2022

2021

2020

 

FAB

1Q24E

4Q23

3Q23

2Q23

WTK

6"

5 – 0.15

328

335

329

371

 

WTK

6"

82

83

83

82

8A

8"

3 – 0.11

811

765

755

802

 

8A

8"

206

207

207

207

8C

8"

0.35 – 0.11

473

459

459

452

 

8C

8"

119

119

120

120

8D

8"

0.18 – 0.09

440

410

380

371

 

8D

8"

118

118

111

109

8E

8"

0.6 – 0.14

490

469

457

449

 

8E

8"

130

131

122

122

8F

8"

0.18 – 0.11

570

550

514

485

 

8F

8"

144

145

145

145

8S

8"

0.18 – 0.11

447

443

408

373

 

8S

8"

113

114

112

112

8N

8"

0.5 – 0.11

996

952

917

917

 

8N

8"

252

254

250

248

12A

12"

0.13 – 0.014

1,305

1,170

1,070

1,044

 

12A

12"

358

346

333

321

12i

12"

0.13 – 0.040

655

655

641

628

 

12i

12"

164

164

164

164

12X

12"

0.080 – 0.022

317

314

284

217

 

12X

12"

79

80

80

80

12M

12"

0.13 – 0.040

438

436

395

391

 

12M

12"

110

110

110

110

Total(1)

4,674

4,458

4,201

4,083

 

Total

1,212

1,204

1,182

1,167

YoY Growth Rate

5%

6%

3%

13%

 

 

 

 

 

 

(1) One 6-inch wafer is converted into 0.25 (62/122) 12-inch equivalent wafer; one 8-inch wafer is converted into 0.44 (82/122) 12-inch equivalent wafers. Total capacity figures are expressed in 12-inch equivalent wafers.

CAPEX

CAPEX spending in 4Q23 totaled US$657 million as 2023 CAPEX amounted to US$3.0 billion. 2024 cash-based CAPEX budget will be US$3.3 billion.

Capital Expenditure by Year - in US$ billion
Year

2023

2022

2021

2020

2019

CAPEX

$ 3.0

$ 2.7

$ 1.8

$ 1.0

$ 0.6

2024 CAPEX Plan

8"

12"

Total

5%

95%

US$3.3 billion

Brief Summary of Full Year 2023 Consolidated Results

  • Consolidated revenue in NTD declined 20.2% YoY to NT$222.53 billion, from NT$278.71 billion in 2022.
  • Gross profit decreased 38.2%, compared to a year ago, representing 34.9% of 2023 revenue.
  • Operating income decreased 44.5% year on year, accounting for 26.0% of 2023 revenue.
  • Net income attributable to shareholders of the parent fell 30.1% to NT$60.99 billion in 2023.
  • EPS was NT$4.93, or EPADS of US$0.803 for 2023.
  • 22/28nm revenue contribution accounted for 31% in 2023.

Operating Results

(Amount: NT$ million)

2023

 

2022

 

YoY %

change

Operating Revenues

222,533

 

278,705

 

(20.2

)

Gross Profit

77,744

 

125,764

 

(38.2

)

Operating Expenses

(23,855

)

(26,812

)

(11.0

)

Net Other Operating Income and Expenses

4,002

 

5,340

 

(25.0

)

Operating Income

57,891

 

104,292

 

(44.5

)

Net Non-Operating Income and Expenses

13,021

 

1,805

 

621.4

 

Income Tax Expense

(9,472

)

(18,079

)

(47.6

)

Net Income Attributable to Shareholders of the Parent

60,990

 

87,198

 

(30.1

)

EPS (NT$ per share)

4.93

 

7.09

 

 

(US$ per ADS)

0.803

 

1.154

 

 

Annual Sales Breakdown in Revenue for Foundry Segment

Region

2023

2022

North America

27%

24%

Asia Pacific

57%

61%

Europe

11%

9%

Japan

5%

6%

 

 

 

Technology

2023

2022

14nm and below

0%

0%

14nm<x<=28nm

31%

24%

28nm<x<=40nm

14%

18%

40nm<x<=65nm

19%

18%

65nm<x<=90nm

10%

8%

90nm<x<=0.13um

10%

12%

0.13um<x<=0.18um

9%

11%

0.18um<x<=0.35um

5%

7%

0.5um and above

2%

2%

 

 

 

Customer Type

2023

2022

Fabless

78%

84%

IDM

22%

16%

 

 

 

Application

2023

2022

Computer

11%

15%

Communication

45%

45%

Consumer

24%

26%

Others

20%

14%

First Quarter 2024 Outlook & Guidance

Quarter-over-Quarter Guidance:

  • Wafer Shipments: Will increase by approximately 2-3%
  • ASP in USD: Will decrease by 5%
  • Gross Profit Margin: Will be approximately 30%
  • Capacity Utilization: low-60% range
  • 2024 CAPEX: US$3.3 billion

Recent Developments / Announcements

Oct. 31, 2023

UMC Launches W2W 3D IC Project with Partners, Targeting Growth in Edge AI

Dec. 11, 2023

UMC recognized for ESG strength with DJSI World & Emerging Markets Index and MSCI-ESG AA Rating

Jan. 2, 2024

UMC Achieves AAA Certification for Excellence in Intellectual Property Management and Protection

Jan. 25, 2024

Intel and UMC Announce New Foundry Collaboration

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

Conference Call / Webcast Announcement

Wednesday, January 31, 2024

Time: 5:00 PM (Taipei) / 4:00 AM (New York) / 09:00 AM (London)

Dial-in numbers and Access Codes:

Taiwan Number:

02 3396 1191

Taiwan Toll Free:

0080 185 4007

US Toll Free:

+1 866 212 5567

Other Areas:

+886 2 3396 1191

 

Access Code:

1029531#

A live webcast and replay of the 4Q23 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 company. The company provides high-quality IC fabrication services, focusing on logic and various specialty technologies to serve all major sectors of the electronics industry. UMC’s comprehensive IC processing technologies and manufacturing solutions include Logic/Mixed-Signal, embedded High-Voltage, embedded Non-Volatile-Memory, RFSOI, BCD, etc. Most of UMC's 12-in and 8-in fabs with its core R&D are in Taiwan, with additional ones throughout Asia. UMC has a total of 12 fabs in production with a combined capacity of more than 400,000 wafers per month (12-in equivalent), and all of them are certified with IATF 16949 automotive quality standards. UMC is headquartered in Hsinchu, Taiwan, plus local offices in the United States, Europe, China, Japan, Korea, and Singapore, with a worldwide total of 20,000 employees. 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 2023; 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 “First Quarter 2024 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.

- FINANCIAL TABLES TO FOLLOW -

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheet
As of December 31, 2023
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
 
December 31, 2023
US$ NT$ %
Assets
Current assets
Cash and cash equivalents

4,316

132,554

23.7%

Accounts receivable, net

963

29,586

5.3%

Inventories, net

1,163

35,713

6.4%

Other current assets

618

18,944

3.4%

Total current assets

7,060

216,797

38.8%

 
Non-current assets
Funds and investments

2,418

74,255

13.3%

Property, plant and equipment

7,786

239,123

42.8%

Right-of-use assets

228

7,000

1.3%

Other non-current assets

717

22,012

3.8%

Total non-current assets

11,149

342,390

61.2%

Total assets

18,209

559,187

100.0%

 
Liabilities
Current liabilities
Short-term loans

441

13,530

2.4%

Payables

1,923

59,051

10.6%

Current portion of long-term liabilities

521

16,007

2.9%

Other current liabilities

339

10,427

1.8%

Total current liabilities

3,224

99,015

17.7%

 
Non-current liabilities
Bonds payable

800

24,580

4.4%

Long-term loans

673

20,656

3.7%

Lease liabilities, noncurrent

159

4,879

0.9%

Other non-current liabilities

1,644

50,478

9.0%

Total non-current liabilities

3,276

100,593

18.0%

Total liabilities

6,500

199,608

35.7%

 
Equity
Equity attributable to the parent company
Capital

4,080

125,298

22.4%

Additional paid-in capital

467

14,325

2.5%

Retained earnings and other components of equity

7,151

219,615

39.3%

Total equity attributable to the parent company

11,698

359,238

64.2%

Non-controlling interests

11

341

0.1%

Total equity

11,709

359,579

64.3%

Total liabilities and equity

18,209

559,187

100.0%

 
Note:New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2023 exchange rate of NT $30.71 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, 2023 December 31, 2022 Chg. December 31, 2023 September 30, 2023 Chg.
US$ NT$ US$ NT$ % US$ NT$ US$ NT$ %
Operating revenues

1,790

 

54,958

 

2,209

 

67,836

 

(19.0

%)

1,790

 

54,958

 

1,858

 

57,069

 

(3.7

%)

Operating costs

(1,210

)

(37,152

)

(1,261

)

(38,712

)

(4.0

%)

(1,210

)

(37,152

)

(1,192

)

(36,608

)

1.5

%

Gross profit

580

 

17,806

 

948

 

29,124

 

(38.9

%)

580

 

17,806

 

666

 

20,461

 

(13.0

%)

32.4

%

32.4

%

42.9

%

42.9

%

32.4

%

32.4

%

35.9

%

35.9

%

Operating expenses
- Sales and marketing expenses

(27

)

(823

)

(31

)

(953

)

(13.6

%)

(27

)

(823

)

(24

)

(735

)

12.0

%

- General and administrative expenses

(63

)

(1,930

)

(79

)

(2,438

)

(20.8

%)

(63

)

(1,930

)

(56

)

(1,731

)

11.6

%

- Research and development expenses

(128

)

(3,945

)

(111

)

(3,407

)

15.8

%

(128

)

(3,945

)

(106

)

(3,255

)

21.2

%

- Expected credit impairment gain (loss)

2

 

63

 

(0

)

(0

)

-

 

2

 

63

 

(0

)

(1

)

-

 

Subtotal

(216

)

(6,635

)

(221

)

(6,798

)

(2.4

%)

(216

)

(6,635

)

(186

)

(5,722

)

16.0

%

Net other operating income and expenses

41

 

1,252

 

43

 

1,311

 

(4.5

%)

41

 

1,252

 

19

 

573

 

118.7

%

Operating income

405

 

12,423

 

770

 

23,637

 

(47.4

%)

405

 

12,423

 

499

 

15,312

 

(18.9

%)

22.6

%

22.6

%

34.8

%

34.8

%

22.6

%

22.6

%

26.8

%

26.8

%

 
Net non-operating income and expenses

72

 

2,227

 

29

 

889

 

150.4

%

72

 

2,227

 

108

 

3,336

 

(33.3

%)

Income from continuing operations before income tax

477

 

14,650

 

799

 

24,526

 

(40.3

%)

477

 

14,650

 

607

 

18,648

 

(21.4

%)

26.7

%

26.7

%

36.2

%

36.2

%

26.7

%

26.7

%

32.7

%

32.7

%

 
Income tax expense

(47

)

(1,457

)

(176

)

(5,406

)

(73.0

%)

(47

)

(1,457

)

(87

)

(2,682

)

(45.7

%)

Net income

430

 

13,193

 

623

 

19,120

 

(31.0

%)

430

 

13,193

 

520

 

15,966

 

(17.4

%)

24.0

%

24.0

%

28.2

%

28.2

%

24.0

%

24.0

%

28.0

%

28.0

%

 
Other comprehensive income (loss)

(124

)

(3,808

)

14

 

429

 

-

 

(124

)

(3,808

)

232

 

7,138

 

-

 

 
Total comprehensive income (loss)

306

 

9,385

 

637

 

19,549

 

(52.0

%)

306

 

9,385

 

752

 

23,104

 

(59.4

%)

 
Net income attributable to:
Shareholders of the parent

430

 

13,195

 

621

 

19,068

 

(30.8

%)

430

 

13,195

 

520

 

15,971

 

(17.4

%)

Non-controlling interests

(0

)

(2

)

2

 

52

 

-

 

(0

)

(2

)

(0

)

(5

)

(61.1

%)

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

306

 

9,387

 

635

 

19,497

 

(51.9

%)

306

 

9,387

 

752

 

23,109

 

(59.4

%)

Non-controlling interests

(0

)

(2

)

2

 

52

 

-

 

(0

)

(2

)

(0

)

(5

)

(59.9

%)

 
Earnings per share-basic

0.035

 

1.06

 

0.050

 

1.54

 

0.035

 

1.06

 

0.042

 

1.29

 

Earnings per ADS (2)

0.173

 

5.30

 

0.251

 

7.70

 

0.173

 

5.30

 

0.210

 

6.45

 

Weighted average number of shares outstanding (in millions)

12,414

 

12,349

 

12,414

 

12,371

 

 
 
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2023 exchange rate of NT $30.71 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) 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, 2023 December 31, 2023
US$ NT$ % US$ NT$ %
Operating revenues

1,790

 

54,958

 

100.0

%

7,246

 

222,533

 

100.0

%

Operating costs

(1,210

)

(37,152

)

(67.6

%)

(4,714

)

(144,789

)

(65.1

%)

Gross profit

580

 

17,806

 

32.4

%

2,532

 

77,744

 

34.9

%

 
Operating expenses
- Sales and marketing expenses

(27

)

(823

)

(1.5

%)

(105

)

(3,225

)

(1.5

%)

- General and administrative expenses

(63

)

(1,930

)

(3.5

%)

(243

)

(7,477

)

(3.3

%)

- Research and development expenses

(128

)

(3,945

)

(7.2

%)

(433

)

(13,284

)

(6.0

%)

- Expected credit impairment gain

2

 

63

 

0.1

%

4

 

131

 

0.1

%

Subtotal

(216

)

(6,635

)

(12.1

%)

(777

)

(23,855

)

(10.7

%)

Net other operating income and expenses

41

 

1,252

 

2.3

%

130

 

4,002

 

1.8

%

Operating income

405

 

12,423

 

22.6

%

1,885

 

57,891

 

26.0

%

 
Net non-operating income and expenses

72

 

2,227

 

4.1

%

424

 

13,021

 

5.9

%

Income from continuing operations before income tax

477

 

14,650

 

26.7

%

2,309

 

70,912

 

31.9

%

 
Income tax expense

(47

)

(1,457

)

(2.7

%)

(308

)

(9,472

)

(4.3

%)

Net income

430

 

13,193

 

24.0

%

2,001

 

61,440

 

27.6

%

 
Other comprehensive income (loss)

(124

)

(3,808

)

(6.9

%)

209

 

6,418

 

2.9

%

 
Total comprehensive income (loss)

306

 

9,385

 

17.1

%

2,210

 

67,858

 

30.5

%

 
Net income attributable to:
Shareholders of the parent

430

 

13,195

 

24.0

%

1,986

 

60,990

 

27.4

%

Non-controlling interests

(0

)

(2

)

(0.0

%)

15

 

450

 

0.2

%

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

306

 

9,387

 

17.1

%

2,195

 

67,408

 

30.3

%

Non-controlling interests

(0

)

(2

)

(0.0

%)

15

 

450

 

0.2

%

 
Earnings per share-basic

0.035

 

1.06

 

0.161

 

4.93

 

Earnings per ADS (2)

0.173

 

5.30

 

0.803

 

24.65

 

 
Weighted average number of shares outstanding (in millions)

12,414

 

12,371

 

 
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2023 exchange rate of NT $30.71 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statement of Cash Flows
For The Twelve-Month Period Ended December 31, 2023
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
 
US$ NT$
Cash flows from operating activities :
Net income before tax

2,309

 

70,912

 

Depreciation & Amortization

1,318

 

40,484

 

Share of profit of associates and joint ventures

(225

)

(6,913

)

Income tax paid

(521

)

(16,012

)

Changes in working capital & others

(81

)

(2,471

)

Net cash provided by operating activities

2,800

 

86,000

 

 
Cash flows from investing activities :
Increase in financial assets measured at amortized cost

(183

)

(5,617

)

Acquisition of property, plant and equipment

(2,979

)

(91,474

)

Acquisition of intangible assets

(83

)

(2,547

)

Others

61

 

1,851

 

Net cash used in investing activities

(3,184

)

(97,787

)

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

441

 

13,530

 

Proceeds from bonds issued

326

 

10,000

 

Proceeds from long-term loans

502

 

15,416

 

Repayments of long-term loans

(376

)

(11,558

)

Increase in guarantee deposits

339

 

10,423

 

Decrease in other financial liabilities

(691

)

(21,209

)

Cash dividends

(1,466

)

(45,015

)

Others

(22

)

(673

)

Net cash used in financing activities

(947

)

(29,086

)

 
Effect of exchange rate changes on cash and cash equivalents

(13

)

(392

)

Net decrease in cash and cash equivalents

(1,344

)

(41,265

)

 
Cash and cash equivalents at beginning of period

5,660

 

173,819

 

 
Cash and cash equivalents at end of period

4,316

 

132,554

 

 
 
Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2023 exchange rate of NT $30.71 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, 2023, the three-month period ending September 30, 2023, and the equivalent three-month period that ended December 31, 2022. For all 4Q23 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the December 31, 2023 exchange rate of NT$ 30.71 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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