2021 EPS grew 89% YoY to NT$4.57; ROE 21.6%
Company well-positioned to capture industry growth driven by mega-trends
Fourth Quarter 2021 Overview1:
- Revenue: NT$59.10 billion (US$2.14 billion)
- Gross margin: 39.1%; Operating margin: 29.8%
- Revenue from 22/28nm: 20%
- Capacity utilization rate: 100%+
- Net income attributable to shareholders of the parent: NT$15.95 billion (US$576 million)
- Earnings per share: NT$1.30; earnings per ADS: US$0.235
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 2021.
Fourth quarter consolidated revenue was NT$59.10 billion, increasing 5.7% QoQ from NT$55.91 billion in 3Q21. Compared to a year ago, 4Q21 revenue grew 30.5% YoY from NT$45.30 billion in 4Q20. Consolidated gross margin for 4Q21 was 39.1%. Net income attributable to the shareholders of the parent was NT$15.95 billion, with earnings per ordinary share of NT$1.30.
Jason Wang, UMC co-president, said, “In the fourth quarter, strong demand continued to drive full loading across our fabs, while overall wafer shipments grew 1.7% QoQ to 2.55 million 8-inch equivalents. For the full year, revenue in 2021 rose by more than 20% YoY and operating income reached a record high, driven by a surge in our 28nm business. The 75% YoY revenue increase from 28nm technologies strengthened our overall wafer ASP and reflected the robust chip demand related to 5G, AIoT, and automotive mega-trends. It also substantially contributed to the improvement in the company’s financial structure. Our healthy 28nm product pipeline will further diversify our portfolio and customer base, and enable UMC to capture additional market share.”
Co-president Wang said, “Looking ahead into Q1 2022, we anticipate that demand across all nodes in UMC’s addressable markets will continue to outpace supply. Our growth in the long term is supported by industry megatrends, which will be catapulted by structural changes occurring in the industry. We will continue to deepen collaboration with customers with our differentiated specialty technologies, manufacturing excellence, and capacity expansions closely linked to the demands of our partners. At the same time, we will keep pushing for cost reduction and meticulously manage our CapEx in order to deliver sustainable and healthy returns for our shareholders.”
Co-president Wang added, “We were thrilled to receive a number of recognitions recently for our relentless focus on sustainability. Following our net-zero pledge in June, UMC was ranked no.1 among all semiconductor constituents listed on the Dow Jones Sustainability Indices (DJSI), which has included the company on its World Index for 14 straight years. We were also awarded Taiwan Intellectual Property Management System (TIPS) certification, Taiwan’s official IP management benchmark for enterprises, underscoring our commitment to strengthen overall corporate governance. Sustainability is at the core of everything we do, and we will continue prioritizing resources to drive critical initiatives in our ESG roadmap.”
Summary of Operating Results
Operating Results |
||||||||||
(Amount: NT$ million) |
4Q21 |
|
3Q21 |
|
QoQ %
|
4Q20 |
|
YoY %
|
||
Operating Revenues |
59,100 |
|
55,907 |
|
5.7 |
|
45,296 |
|
30.5 |
|
Gross Profit |
23,103 |
|
20,544 |
|
12.5 |
|
10,848 |
|
113.0 |
|
Operating Expenses |
(6,821 |
) |
(6,636 |
) |
2.8 |
|
(6,335 |
) |
7.7 |
|
Net Other Operating Income and Expenses |
1,334 |
|
1,227 |
|
8.7 |
|
1,102 |
|
21.1 |
|
Operating Income |
17,616 |
|
15,135 |
|
16.4 |
|
5,615 |
|
213.7 |
|
Net Non-Operating Income and Expenses |
558 |
|
4,317 |
|
(87.1 |
) |
5,619 |
|
(90.1 |
) |
Net Income Attributable to Shareholders of the Parent |
15,949 |
|
17,460 |
|
(8.7 |
) |
11,196 |
|
42.5 |
|
EPS (NT$ per share) |
1.30 |
|
1.43 |
|
|
0.92 |
|
|
||
(US$ per ADS) |
0.235 |
|
0.258 |
|
|
0.166 |
|
|
||
Fourth quarter operating revenues increased by 5.7% sequentially to NT$59.10 billion which was partly attributed to enhanced product mix and higher wafer shipments. Revenue contribution from 40nm and below technologies represented 38% of wafer revenue. Gross profit grew 12.5% QoQ to NT$23.10 billion, or 39.1% of revenue. Operating expenses was up 2.8% to NT$6.82 billion. Net other operating income reached NT$1.33 billion. Net non-operating income was NT$558 million. Net income attributable to shareholders of the parent amounted to NT$15.95 billion.
Earnings per ordinary share for the quarter was NT$1.30. Earnings per ADS was US$0.235. The basic weighted average number of outstanding shares in 4Q21 was 12,254,114,875, compared with 12,206,292,756 shares in 3Q21 and 12,206,292,756 shares in 4Q20. The diluted weighted average number of outstanding shares was 12,489,949,678 in 4Q21, compared with 12,411,100,649 shares in 3Q21 and 12,359,115,536 shares in 4Q20. The fully diluted shares counted on December 31, 2021 were approximately 12,519,315,000.
Detailed Financials Section
COGS & Expenses |
|||||||||
(Amount: NT$ million) |
4Q21 |
|
3Q21 |
|
QoQ %
|
4Q20 |
|
YoY %
|
|
Operating Revenues |
59,100 |
|
55,907 |
|
5.7 |
45,296 |
|
30.5 |
|
COGS |
(35,997 |
) |
(35,363 |
) |
1.8 |
(34,448 |
) |
4.5 |
|
Depreciation |
(10,122 |
) |
(9,900 |
) |
2.2 |
(10,436 |
) |
(3.0 |
) |
Other Mfg. Costs |
(25,875 |
) |
(25,463 |
) |
1.6 |
(24,012 |
) |
7.8 |
|
Gross Profit |
23,103 |
|
20,544 |
|
12.5 |
10,848 |
|
113.0 |
|
Gross Margin (%) |
39.1 |
% |
36.8 |
% |
|
23.9 |
% |
|
|
Operating Expenses |
(6,821 |
) |
(6,636 |
) |
2.8 |
(6,335 |
) |
7.7 |
|
G&A |
(2,164 |
) |
(2,119 |
) |
2.2 |
(1,966 |
) |
10.0 |
|
Sales & Marketing |
(1,240 |
) |
(1,212 |
) |
2.3 |
(1,175 |
) |
5.5 |
|
R&D |
(3,414 |
) |
(3,303 |
) |
3.4 |
(3,194 |
) |
6.9 |
|
Expected Credit Impairment Gain (Loss) |
(3 |
) |
(2 |
) |
37.8 |
0 |
|
- |
|
Net Other Operating Income & Expenses |
1,334 |
|
1,227 |
|
8.7 |
1,102 |
|
21.1 |
|
Operating Income |
17,616 |
|
15,135 |
|
16.4 |
5,615 |
|
213.7 |
|
Operating revenues increased to NT$59.10 billion. COGS was up 1.8 % QoQ to NT$36.00 billion, which included 2.2% sequential increase in depreciation. Gross profit grew 12.5% QoQ to NT$23.10 billion, partly due to enhanced product mix. Operating expenses increased 2.8% QoQ to NT$6.82 billion, as R&D increased 3.4% QoQ to NT$3.41 billion, representing 5.8% of revenue. Net other operating income was NT$1.33 billion. In 4Q21, operating income grew 16.4% QoQ to NT$17.62 billion.
Non-Operating Income and Expenses |
||||||
(Amount: NT$ million) |
4Q21 |
|
3Q21 |
|
4Q20 |
|
Non-Operating Income and Expenses |
558 |
|
4,317 |
|
5,619 |
|
Net Interest Income and Expenses |
(343 |
) |
(367 |
) |
(278 |
) |
Net Investment Gain and Loss |
2,689 |
|
4,534 |
|
5,703 |
|
Exchange Gain and Loss |
312 |
|
164 |
|
199 |
|
Other Gain and Loss |
(2,100 |
) |
(14 |
) |
(5 |
) |
Net non-operating income in 4Q21 was NT$558 million, primarily reflecting NT$2.69 billion in net investment gain, offset by a NT$2.10 billion in other loss which included the one-time legal settlement payment and the losses of financial instrument transaction.
Cash Flow Summary |
||||
(Amount: NT$ million) |
For the 3-Month
Dec. 31, 2021 |
For the 3-Month
Sep. 30, 2021 |
||
Cash Flow from Operating Activities |
26,822 |
|
22,125 |
|
Net income before tax |
18,174 |
|
19,452 |
|
Depreciation & Amortization |
11,817 |
|
11,754 |
|
Share of profit of associates and joint ventures |
(2,491 |
) |
(3,356 |
) |
Income tax paid |
(222 |
) |
(1,365 |
) |
Changes in working capital & others |
(456 |
) |
(4,360 |
) |
Cash Flow from Investing Activities |
(13,339 |
) |
(23,222 |
) |
Acquisition of PP&E |
(14,707 |
) |
(17,457 |
) |
Acquisition of intangible assets |
(100 |
) |
(371 |
) |
Decrease (Increase) in other financial assets |
1,589 |
|
(5,677 |
) |
Others |
(121 |
) |
283 |
|
Cash Flow from Financing Activities |
6,367 |
|
(9,694 |
) |
Bank loans |
(1,359 |
) |
(4,510 |
) |
Bonds Issued |
5,000 |
|
11,161 |
|
Increase in deposits-in |
2,896 |
|
3,738 |
|
Cash dividends |
(1 |
) |
(19,870 |
) |
Others |
(169 |
) |
(213 |
) |
Effect of Exchange Rate |
(333 |
) |
(104 |
) |
Net Cash Flow |
19,517 |
|
(10,895 |
) |
Beginning balance |
113,105 |
|
124,000 |
|
Ending balance |
132,622 |
|
113,105 |
|
In 4Q21, cash inflow from operating activities was NT$26.82 billion. Cash outflow from investing activities amounted to NT$13.34 billion, which included NT$14.95 billion in capital expenditure, resulting in free cash flow of NT$11.87 billion. Cash inflow from financing reached NT$6.37 billion, primarily from a NT$5.00 billion in bond issuance and a NT$2.90 billion payment as capacity deposit for 12A P6 offset by a NT$1.36 billion in repayment in bank loans. Net cash inflow in 4Q21 totaled NT$19.52 billion. Over the next 12 months, the company expects to repay NT$8.70 billion in bank loans.
Current Assets |
|||||
(Amount: NT$ billion) |
4Q21 |
3Q21 |
4Q20 |
||
Cash and Cash Equivalents |
132.62 |
113.11 |
94.05 |
||
Notes & Accounts Receivable |
35.19 |
32.99 |
27.27 |
||
Days Sales Outstanding |
53 |
51 |
55 |
||
Inventories, net |
23.01 |
23.15 |
22.55 |
||
Days of Inventory |
59 |
59 |
60 |
||
Total Current Assets |
233.27 |
211.60 |
164.31 |
||
Cash and cash equivalents increased to NT$132.62 billion. Days of inventory remained at 59 days.
Liabilities |
||||||
(Amount: NT$ billion) |
4Q21 |
|
3Q21 |
|
4Q20 |
|
Total Current Liabilities |
105.45 |
|
84.55 |
|
78.24 |
|
Notes & Accounts Payable |
8.36 |
|
8.26 |
|
7.86 |
|
Short-Term Credit / Bonds |
39.26 |
|
24.26 |
|
38.04 |
|
Payables on Equipment |
7.88 |
|
6.72 |
|
5.45 |
|
Other |
49.95 |
|
45.31 |
|
26.89 |
|
Long-Term Credit / Bonds |
39.83 |
|
51.09 |
|
24.77 |
|
Long-Term Investment Liabilities |
8.25 |
|
8.14 |
|
20.75 |
|
Total Liabilities |
183.22 |
|
171.19 |
|
141.74 |
|
Debt to Equity |
65 |
% |
66 |
% |
60 |
% |
Current liabilities increased to NT$105.45 billion, which included a NT$39.26 billion in short-term credit/bonds. Long-term credit/bonds decreased to NT$39.83 billion. Total liabilities increased to NT$183.22 billion, leading to a debt to equity ratio of 65%.
Analysis of Revenue2
Revenue Breakdown by Region |
|||||
Region |
4Q21 |
3Q21 |
2Q21 |
1Q21 |
4Q20 |
North America |
21% |
22% |
22% |
23% |
29% |
Asia Pacific |
66% |
65% |
63% |
63% |
61% |
Europe |
7% |
7% |
8% |
8% |
5% |
Japan |
6% |
6% |
7% |
6% |
5% |
Revenue from Asia-Pacific increased to 66% while business from North America accounted for 21% of sales. Business from Europe was 7% while contribution from Japan remained at 6%.
Revenue Breakdown by Geometry |
|||||
Geometry |
4Q21 |
3Q21 |
2Q21 |
1Q21 |
4Q20 |
14nm and below |
0% |
0% |
0% |
0% |
0% |
14nm<x<=28nm |
20% |
19% |
20% |
20% |
18% |
28nm<x<=40nm |
18% |
18% |
18% |
20% |
22% |
40nm<x<=65nm |
19% |
19% |
19% |
18% |
18% |
65nm<x<=90nm |
8% |
8% |
9% |
8% |
8% |
90nm<x<=0.13um |
12% |
12% |
11% |
11% |
11% |
0.13um<x<=0.18um |
13% |
13% |
13% |
13% |
13% |
0.18um<x<=0.35um |
7% |
8% |
8% |
8% |
8% |
0.5um and above |
3% |
3% |
2% |
2% |
2% |
Revenue contribution from 22/28nm amounted to 20% of the wafer revenue, while 40nm contribution stayed at 18% of sales.
Revenue Breakdown by Customer Type |
|||||
Customer Type |
4Q21 |
3Q21 |
2Q21 |
1Q21 |
4Q20 |
Fabless |
86% |
86% |
84% |
86% |
87% |
IDM |
14% |
14% |
16% |
14% |
13% |
Revenue from fabless customers accounted for 86% of revenue.
Revenue Breakdown by Application (1) |
|||||
Application |
4Q21 |
3Q21 |
2Q21 |
1Q21 |
4Q20 |
Computer |
17% |
17% |
17% |
16% |
16% |
Communication |
46% |
46% |
47% |
46% |
49% |
Consumer |
26% |
27% |
26% |
27% |
25% |
Others |
11% |
10% |
10% |
11% |
10% |
Revenue from the communication segment remained unchanged at 46%, while business from computer applications also stayed at 17%. Business from consumer applications declined to 26% as other segments accounted represented 11% 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, 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) grew in 4Q21.
(To view blended ASP trend, please click here for 4Q21 ASP)
Shipment and Utilization Rate3
Wafer Shipments |
|||||
|
4Q21 |
3Q21 |
2Q21 |
1Q21 |
4Q20 |
Wafer Shipments
|
2,546 |
2,503 |
2,440 |
2,372 |
2,293 |
|
|||||
Quarterly Capacity Utilization Rate |
|||||
|
4Q21 |
3Q21 |
2Q21 |
1Q21 |
4Q20 |
Utilization Rate |
100%+ |
100%+ |
100%+ |
100% |
99% |
Total Capacity
|
2,419 |
2,383 |
2,370 |
2,280 |
2,311 |
Wafer shipments increased 1.7% QoQ to 2,546K in the fourth quarter, while quarterly capacity grew to 2,419K. Overall utilization rate in 4Q21 surpassed 100%.
Capacity4
Overall capacity in the fourth quarter grew by 1.5% QoQ to 2,419K 8-inch equivalent wafers. Capacity will remain flattish for the first quarter of 2022 at 2,420K 8-inch equivalent wafers.
Annual Capacity in thousands of wafers |
|
Quarterly Capacity in thousands of wafers |
||||||||||
FAB |
Geometry
|
2021 |
2020 |
2019 |
2018 |
|
FAB |
1Q22E |
4Q21 |
3Q21 |
2Q21 |
|
WTK |
6" |
5 – 0.25 |
329 |
371 |
370 |
396 |
|
WTK |
82 |
81 |
80 |
84 |
8A |
8" |
3 – 0.18 |
755 |
802 |
825 |
825 |
|
8A |
189 |
190 |
190 |
190 |
8C |
8" |
0.35 – 0.11 |
459 |
452 |
436 |
383 |
|
8C |
113 |
115 |
115 |
115 |
8D |
8" |
0.18 – 0.09 |
380 |
371 |
359 |
347 |
|
8D |
101 |
95 |
95 |
95 |
8E |
8" |
0.6 – 0.15 |
457 |
449 |
426 |
418 |
|
8E |
116 |
115 |
115 |
115 |
8F |
8" |
0.18 – 0.11 |
514 |
485 |
434 |
431 |
|
8F |
136 |
137 |
137 |
122 |
8S |
8" |
0.25 – 0.11 |
408 |
373 |
372 |
372 |
|
8S |
109 |
102 |
102 |
102 |
8N |
8" |
0.5 – 0.11 |
917 |
917 |
831 |
771 |
|
8N |
231 |
232 |
230 |
230 |
12A |
12" |
0.13 – 0.014 |
1,070 |
1,044 |
997 |
997 |
|
12A |
267 |
271 |
271 |
271 |
12i |
12" |
0.13 – 0.040 |
641 |
628 |
595 |
555 |
|
12i |
162 |
164 |
160 |
160 |
12X |
12" |
0.080 – 0.022 |
284 |
217 |
203 |
183 |
|
12X |
77 |
78 |
74 |
74 |
12M |
12" |
0.13 – 0.040 |
395 |
391 |
98 |
- |
|
12M |
108 |
104 |
98 |
98 |
Total(1) |
9,453 |
9,188 |
8,148 |
7,673 |
|
Total |
2,420 |
2,419 |
2,383 |
2,370 |
||
YoY Growth Rate |
3% |
13% |
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. Total capacity figures are expressed in 8-inch equivalent wafers.
CAPEX
Capital Expenditure by Year - in US$ billion |
|||||
Year |
2021 |
2020 |
2019 |
2018 |
2017 |
CAPEX |
$ 1.8 |
$ 1.0 |
$ 0.6 |
$ 0.7 |
$ 1.4 |
| 2022 CAPEX Plan | ||
8" |
12" |
Total |
10% |
90% |
US$3.0 billion |
CAPEX spending in 4Q21 reached US$537 million as full year 2021 CAPEX amounted to US$1.8 billion. 2022 cash-based CAPEX budget is US$3.0 billion, which including the company’s collaborative Fab 12A P6 expansion plan with customers.
Brief Summary of Full Year 2021 Consolidated Results
Operating Results |
||||||
(Amount: NT$ million) |
2021 |
|
2020 |
|
YoY %
|
|
Operating Revenues |
213,011 |
|
176,821 |
|
20.5 |
|
Gross Profit |
72,050 |
|
38,997 |
|
84.8 |
|
Operating Expenses |
(25,590 |
) |
(23,244 |
) |
10.1 |
|
Net Other Operating Income and Expenses |
5,226 |
|
6,254 |
|
(16.4 |
) |
Operating Income |
51,686 |
|
22,007 |
|
134.9 |
|
Net Non-Operating Income and Expenses |
10,117 |
|
5,919 |
|
70.9 |
|
Income Tax (Expense) Benefit |
(6,691 |
) |
(746 |
) |
797.3 |
|
Net Income Attributable to Shareholders of the Parent |
55,780 |
|
29,189 |
|
91.1 |
|
EPS (NT$ per share) |
4.57 |
2.42 |
|
|
||
(US$ per ADS) |
0.826 |
|
0.437 |
|
|
|
- Consolidated revenue in NTD increased 20.5% YoY to NT$213.01 billion, from NT$176.82 billion in 2020.
- Gross profit increased 84.8%, compared to a year ago, representing 33.8% of 2021 revenue.
- Operating income grew 134.9% year on year, accounting for 24.3% of 2021 revenue.
- Net income attributable to stockholders of the parent increased 91.1% to NT$55.78 billion in 2021.
- EPS was NT$4.57, or EPADS of US$0.826 for 2021.
- 28nm revenue dollar grew 75% compared to 2020, as contribution from 28nm technologies and below accounted for 20% in 2021.
Annual Sales Breakdown in Revenue for Foundry Segment
Region |
2021 |
2020 |
North America |
22% |
30% |
Asia Pacific |
65% |
57% |
Europe |
7% |
6% |
Japan |
6% |
7% |
|
|
|
Technology |
2021 |
2020 |
14nm and below |
0% |
0% |
14nm<x<=28nm |
20% |
14% |
28nm<x<=40nm |
18% |
23% |
40nm<x<=65nm |
19% |
17% |
65nm<x<=90nm |
8% |
11% |
90nm<x<=0.13um |
12% |
11% |
0.13um<x<=0.18um |
13% |
13% |
0.18um<x<=0.35um |
8% |
8% |
0.5um and above |
2% |
3% |
|
|
|
Customer Type |
2021 |
2020 |
Fabless |
85% |
88% |
IDM |
15% |
12% |
|
|
|
Application |
2021 |
2020 |
Computer |
17% |
14% |
Communication |
46% |
52% |
Consumer |
27% |
24% |
Others |
10% |
10% |
First Quarter 2022 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Wafer Shipments: To remain flat
- ASP in USD: To increase by 5%
- Gross Profit Margin: To be approximately 40%
- Capacity Utilization: 100%
- 2022 CAPEX: US$3.0 billion
Recent Developments / Announcements
Oct. 21, 2021 UMC and suppliers join forces to build a low carbon supply chain
Nov. 13, 2021 UMC leads semiconductor foundries in 2021 Dow Jones Sustainability Indices (DJSI)
Nov. 26, 2021 Micron and UMC announce global settlement
Dec. 30, 2021 UMC awarded Taiwan Intellectual Property Management System (TIPS) Certification
Please visit UMC’s website for further details regarding the above announcements
Conference Call / Webcast Announcement
Tuesday, January 25, 2022
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 4Q21 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 800,000 8-inch equivalent wafers per month. The company employs approximately 19,500 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 2021; 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 2021 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, 2021 | |||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||
| December 31, 2021 | |||||||||
| US$ | NT$ | % | |||||||
| Assets | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | 4,793 |
|
132,622 |
|
28.6 |
% |
|||
| Accounts receivable, net | 1,272 |
|
35,190 |
|
7.6 |
% |
|||
| Inventories, net | 832 |
|
23,011 |
|
5.0 |
% |
|||
| Other current assets | 1,533 |
|
42,451 |
|
9.0 |
% |
|||
| Total current assets | 8,430 |
|
233,274 |
|
50.2 |
% |
|||
|
|
|
|
|
|||||
| Non-current assets |
|
|
|
|
|
||||
| Funds and investments | 2,622 |
|
72,552 |
|
15.6 |
% |
|||
| Property, plant and equipment | 4,696 |
|
129,942 |
|
28.0 |
% |
|||
| Right-of-use assets | 258 |
|
7,127 |
|
1.5 |
% |
|||
| Other non-current assets | 778 |
|
21,532 |
|
4.7 |
% |
|||
| Total non-current assets | 8,354 |
|
231,153 |
|
49.8 |
% |
|||
| Total assets | 16,784 |
|
464,427 |
|
100.0 |
% |
|||
|
|
|
|
|
|||||
| Liabilities |
|
|
|
|
|
||||
| Current liabilities |
|
|
|
|
|
||||
| Short-term loans | 70 |
|
1,924 |
|
0.4 |
% |
|||
| Payables | 1,515 |
|
41,911 |
|
9.0 |
% |
|||
| Current portion of long-term liabilities | 1,349 |
|
37,332 |
|
8.0 |
% |
|||
| Other current liabilities | 877 |
|
24,287 |
|
5.3 |
% |
|||
| Total current liabilities | 3,811 |
|
105,454 |
|
22.7 |
% |
|||
|
|
|
|
|
|||||
| Non-current liabilities |
|
|
|
|
|
||||
| Bonds payable | 834 |
|
23,078 |
|
5.0 |
% |
|||
| Long-term loans | 605 |
|
16,752 |
|
3.6 |
% |
|||
| Lease liabilities, noncurrent | 163 |
|
4,511 |
|
1.0 |
% |
|||
| Other non-current liabilities | 1,209 |
|
33,429 |
|
7.2 |
% |
|||
| Total non-current liabilities | 2,811 |
|
77,770 |
|
16.8 |
% |
|||
| Total liabilities | 6,622 |
|
183,224 |
|
39.5 |
% |
|||
|
|
|
|
|
|||||
| Equity |
|
|
|
|
|
||||
| Equity attributable to the parent company |
|
|
|
|
|
||||
| Capital | 4,511 |
|
124,832 |
|
26.9 |
% |
|||
| Additional paid-in capital | 1,731 |
|
47,898 |
|
10.3 |
% |
|||
| Retained earnings and other components of equity | 3,913 |
|
108,250 |
|
23.3 |
% |
|||
| Total equity attributable to the parent company | 10,155 |
|
280,980 |
|
60.5 |
% |
|||
| Non-controlling interests | 7 |
|
223 |
|
0.0 |
% |
|||
| Total equity | 10,162 |
|
281,203 |
|
60.5 |
% |
|||
| Total liabilities and equity | 16,784 |
|
464,427 |
|
100.0 |
% |
|||
| Note：New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2021 exchange rate of NT $27.67 per U.S. Dollar. | |||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||||||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||||||||||||||||||||
| Except Per Share and Per ADS Data | |||||||||||||||||||||||||||||
| Year over Year Comparison | Quarter over Quarter Comparison | ||||||||||||||||||||||||||||
| Three-Month Period Ended | Three-Month Period Ended | ||||||||||||||||||||||||||||
| December 31, 2021 | December 31, 2020 | Chg. | December 31, 2021 | September 30, 2021 | Chg. | ||||||||||||||||||||||||
| US$ | NT$ | US$ | NT$ | % | US$ | NT$ | US$ | NT$ | % | ||||||||||||||||||||
| Operating revenues | 2,136 |
|
|
59,100 |
|
|
1,637 |
|
|
45,296 |
|
|
30.5 |
% |
|
2,136 |
|
|
59,100 |
|
|
2,020 |
|
|
55,907 |
|
|
5.7 |
% |
| Operating costs | (1,301 |
) |
|
(35,997 |
) |
|
(1,245 |
) |
|
(34,448 |
) |
|
4.5 |
% |
|
(1,301 |
) |
|
(35,997 |
) |
|
(1,278 |
) |
|
(35,363 |
) |
|
1.8 |
% |
| Gross profit | 835 |
|
|
23,103 |
|
|
392 |
|
|
10,848 |
|
|
113.0 |
% |
|
835 |
|
|
23,103 |
|
|
742 |
|
|
20,544 |
|
|
12.5 |
% |
39.1 |
% |
|
39.1 |
% |
|
23.9 |
% |
|
23.9 |
% |
|
|
|
39.1 |
% |
|
39.1 |
% |
|
36.8 |
% |
|
36.8 |
% |
|
|
|||
| Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
| - Sales and marketing expenses | (45 |
) |
|
(1,240 |
) |
|
(42 |
) |
|
(1,175 |
) |
|
5.5 |
% |
|
(45 |
) |
|
(1,240 |
) |
|
(44 |
) |
|
(1,212 |
) |
|
2.3 |
% |
| - General and administrative expenses | (79 |
) |
|
(2,164 |
) |
|
(72 |
) |
|
(1,966 |
) |
|
10.0 |
% |
|
(79 |
) |
|
(2,164 |
) |
|
(77 |
) |
|
(2,119 |
) |
|
2.2 |
% |
| - Research and development expenses | (123 |
) |
|
(3,414 |
) |
|
(115 |
) |
|
(3,194 |
) |
|
6.9 |
% |
|
(123 |
) |
|
(3,414 |
) |
|
(119 |
) |
|
(3,303 |
) |
|
3.4 |
% |
| - Expected credit impairment gain (loss) | (0 |
) |
|
(3 |
) |
|
0 |
|
|
0 |
|
|
- |
|
|
(0 |
) |
|
(3 |
) |
|
(0 |
) |
|
(2 |
) |
|
37.8 |
% |
| Subtotal | (247 |
) |
|
(6,821 |
) |
|
(229 |
) |
|
(6,335 |
) |
|
7.7 |
% |
|
(247 |
) |
|
(6,821 |
) |
|
(240 |
) |
|
(6,636 |
) |
|
2.8 |
% |
| Net other operating income and expenses | 49 |
|
|
1,334 |
|
|
40 |
|
|
1,102 |
|
|
21.1 |
% |
|
49 |
|
|
1,334 |
|
|
45 |
|
|
1,227 |
|
|
8.7 |
% |
| Operating income | 637 |
|
|
17,616 |
|
|
203 |
|
|
5,615 |
|
|
213.7 |
% |
|
637 |
|
|
17,616 |
|
|
547 |
|
|
15,135 |
|
|
16.4 |
% |
29.8 |
% |
|
29.8 |
% |
|
12.4 |
% |
|
12.4 |
% |
|
|
|
29.8 |
% |
|
29.8 |
% |
|
27.1 |
% |
|
27.1 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net non-operating income and expenses | 20 |
|
|
558 |
|
|
203 |
|
|
5,619 |
|
|
(90.1 |
%) |
|
20 |
|
|
558 |
|
|
156 |
|
|
4,317 |
|
|
(87.1 |
%) |
| Income from continuing operations before income tax |
657 |
|
|
18,174 |
|
|
406 |
|
|
11,234 |
|
|
61.8 |
% |
|
657 |
|
|
18,174 |
|
|
703 |
|
|
19,452 |
|
|
(6.6 |
%) |
30.8 |
% |
|
30.8 |
% |
|
24.8 |
% |
|
24.8 |
% |
|
|
|
30.8 |
% |
|
30.8 |
% |
|
34.8 |
% |
|
34.8 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income tax expenses | (79 |
) |
|
(2,169 |
) |
|
(12 |
) |
|
(344 |
) |
|
530.3 |
% |
|
(79 |
) |
|
(2,169 |
) |
|
(76 |
) |
|
(2,100 |
) |
|
3.3 |
% |
| Net income | 578 |
|
|
16,005 |
|
|
394 |
|
|
10,890 |
|
|
47.0 |
% |
|
578 |
|
|
16,005 |
|
|
627 |
|
|
17,352 |
|
|
(7.8 |
%) |
27.1 |
% |
|
27.1 |
% |
|
24.0 |
% |
|
24.0 |
% |
|
|
|
27.1 |
% |
|
27.1 |
% |
|
31.0 |
% |
|
31.0 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Other comprehensive income (loss) | 105 |
|
|
2,880 |
|
|
138 |
|
|
3,831 |
|
|
(24.8 |
%) |
|
105 |
|
|
2,880 |
|
|
(13 |
) |
|
(370 |
) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total comprehensive income (loss) | 683 |
|
|
18,885 |
|
|
532 |
|
|
14,721 |
|
|
28.3 |
% |
|
683 |
|
|
18,885 |
|
|
614 |
|
|
16,982 |
|
|
11.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
| Shareholders of the parent | 576 |
|
|
15,949 |
|
|
405 |
|
|
11,196 |
|
|
42.5 |
% |
|
576 |
|
|
15,949 |
|
|
631 |
|
|
17,460 |
|
|
(8.7 |
%) |
| Non-controlling interests | 2 |
|
|
56 |
|
|
(11 |
) |
|
(306 |
) |
|
- |
|
|
2 |
|
|
56 |
|
|
(4 |
) |
|
(108 |
) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Comprehensive income (loss) attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
| Shareholders of the parent | 681 |
|
|
18,830 |
|
|
543 |
|
|
15,027 |
|
|
25.3 |
% |
|
681 |
|
|
18,830 |
|
|
618 |
|
|
17,090 |
|
|
10.2 |
% |
| Non-controlling interests | 2 |
|
|
55 |
|
|
(11 |
) |
|
(306 |
) |
|
- |
|
|
2 |
|
|
55 |
|
|
(4 |
) |
|
(108 |
) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Earnings per share-basic | 0.047 |
|
|
1.30 |
|
|
0.033 |
|
|
0.92 |
|
|
|
|
0.047 |
|
|
1.30 |
|
|
0.052 |
|
|
1.43 |
|
|
|
||
| Earnings per ADS (2) | 0.235 |
|
|
6.50 |
|
|
0.166 |
|
|
4.60 |
|
|
|
|
0.235 |
|
|
6.50 |
|
|
0.258 |
|
|
7.15 |
|
|
|
||
| Weighted average number of shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
| outstanding (in millions) |
|
|
12,254 |
|
|
|
|
12,206 |
|
|
|
|
|
|
12,254 |
|
|
|
|
12,206 |
|
|
|
||||||
| Notes: | |||||||||||||||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2021 exchange rate of NT $27.67 per U.S. Dollar. | |||||||||||||||||||||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||||||||||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||||||||||
| Except Per Share and Per ADS Data | |||||||||||||||||||
| For the Three-Month Period Ended | For the Twelve-Month Period Ended | ||||||||||||||||||
| December 31, 2021 | December 31, 2021 | ||||||||||||||||||
| US$ | NT$ | % | US$ | NT$ | % | ||||||||||||||
| Operating revenues | 2,136 |
|
|
59,100 |
|
|
100.0 |
% |
|
7,698 |
|
|
213,011 |
|
|
100.0 |
% |
||
| Operating costs | (1,301 |
) |
|
(35,997 |
) |
|
(60.9 |
%) |
|
(5,094 |
) |
|
(140,961 |
) |
|
(66.2 |
%) |
||
| Gross profit | 835 |
|
|
23,103 |
|
|
39.1 |
% |
|
2,604 |
|
|
72,050 |
|
|
33.8 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
||||||||
| - Sales and marketing expenses | (45 |
) |
|
(1,240 |
) |
|
(2.1 |
%) |
|
(169 |
) |
|
(4,672 |
) |
|
(2.2 |
%) |
||
| - General and administrative expenses | (79 |
) |
|
(2,164 |
) |
|
(3.6 |
%) |
|
(289 |
) |
|
(7,989 |
) |
|
(3.7 |
%) |
||
| - Research and development expenses | (123 |
) |
|
(3,414 |
) |
|
(5.8 |
%) |
|
(467 |
) |
|
(12,935 |
) |
|
(6.1 |
%) |
||
| - Expected credit impairment gain (loss) | (0 |
) |
|
(3 |
) |
|
(0.0 |
%) |
|
0 |
|
|
6 |
|
|
0.0 |
% |
||
| Subtotal | (247 |
) |
|
(6,821 |
) |
|
(11.5 |
%) |
|
(925 |
) |
|
(25,590 |
) |
|
(12.0 |
%) |
||
| Net other operating income and expenses | 49 |
|
|
1,334 |
|
|
2.2 |
% |
|
189 |
|
|
5,226 |
|
|
2.5 |
% |
||
| Operating income | 637 |
|
|
17,616 |
|
|
29.8 |
% |
|
1,868 |
|
|
51,686 |
|
|
24.3 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| Net non-operating income and expenses | 20 |
|
|
558 |
|
|
1.0 |
% |
|
366 |
|
|
10,117 |
|
|
4.7 |
% |
||
| Income from continuing operations before income tax |
657 |
|
|
18,174 |
|
|
30.8 |
% |
|
2,234 |
|
|
61,803 |
|
|
29.0 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| Income tax expense | (79 |
) |
|
(2,169 |
) |
|
(3.7 |
%) |
|
(242 |
) |
|
(6,691 |
) |
|
(3.1 |
%) |
||
| Net income | 578 |
|
|
16,005 |
|
|
27.1 |
% |
|
1,992 |
|
|
55,112 |
|
|
25.9 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| Other comprehensive income (loss) | 105 |
|
|
2,880 |
|
|
4.9 |
% |
|
149 |
|
|
4,132 |
|
|
1.9 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| Total comprehensive income (loss) | 683 |
|
|
18,885 |
|
|
32.0 |
% |
|
2,141 |
|
|
59,244 |
|
|
27.8 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| Net income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Shareholders of the parent | 576 |
|
|
15,949 |
|
|
27.0 |
% |
|
2,016 |
|
|
55,780 |
|
|
26.2 |
% |
||
| Non-controlling interests | 2 |
|
|
56 |
|
|
0.1 |
% |
|
(24 |
) |
|
(668 |
) |
|
(0.3 |
%) |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| Comprehensive income (loss) attributable to: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
| Shareholders of the parent | 681 |
|
|
18,830 |
|
|
31.9 |
% |
|
2,165 |
|
|
59,912 |
|
|
28.1 |
% |
||
| Non-controlling interests | 2 |
|
|
55 |
|
|
0.1 |
% |
|
(24 |
) |
|
(668 |
) |
|
(0.3 |
%) |
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| Earnings per share-basic | 0.047 |
|
|
1.30 |
|
|
|
|
0.165 |
|
|
4.57 |
|
|
|
||||
| Earnings per ADS (2) | 0.235 |
|
|
6.50 |
|
|
|
|
0.826 |
|
|
22.85 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average number of shares outstanding (in millions) |
|
|
12,254 |
|
|
|
|
|
|
12,218 |
|
|
|
||||||
| Notes: | |||||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2021 exchange rate of NT $27.67 per U.S. Dollar. | |||||||||||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | ||||
| Consolidated Condensed Statement of Cash Flows | ||||
| For The Twelve-Month Period Ended December 31, 2021 | ||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | ||||
| US$ | NT$ | |||
| Cash flows from operating activities : | ||||
| Net income before tax | 2,234 |
61,803 |
||
| Depreciation & Amortization | 1,701 |
47,075 |
||
| Share of profit of associates and joint ventures | (307) |
(8,495) |
||
| Income tax paid | (70) |
(1,937) |
||
| Changes in working capital & others | (293) |
(8,094) |
||
| Net cash provided by operating activities | 3,265 |
90,352 |
||
| Cash flows from investing activities : | ||||
| Acquisition of property, plant and equipment | (1,736) |
(48,035) |
||
| Acquisition of intangible assets | (70) |
(1,925) |
||
| Increase in other financial assets | (542) |
(14,989) |
||
| Others | 101 |
2,786 |
||
| Net cash used in investing activities | (2,247) |
(62,163) |
||
| Cash flows from financing activities : | ||||
| Decrease in short-term loans | (324) |
(8,974) |
||
| Proceeds from bonds issued | 931 |
25,761 |
||
| Redemption of bonds | (72) |
(2,000) |
||
| Proceeds from long-term loans | 562 |
15,561 |
||
| Repayments of long-term loans | (415) |
(11,472) |
||
| Increase in guarantee deposits | 514 |
14,219 |
||
| Cash dividends | (718) |
(19,871) |
||
| Others | (27) |
(734) |
||
| Net cash provided by financing activities | 451 |
12,490 |
||
| Effect of exchange rate changes on cash and cash equivalents | (75) |
(2,105) |
||
| Net increase in cash and cash equivalents | 1,394 |
38,574 |
||
| Cash and cash equivalents at beginning of period | 3,399 |
94,048 |
||
| Cash and cash equivalents at end of period | 4,793 |
132,622 |
||
| Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2021 exchange rate of NT $27.67 per U.S. Dollar. | ||||
__________________________
1Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending December 31, 2021, the three-month period ending September 30, 2021, and the equivalent three-month period that ended December 31, 2020. For all 4Q21 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the December 31, 2021 exchange rate of NT$ 27.67 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220125005584/en/
Contacts
Michael Lin / David Wong
UMC, Investor Relations
+ 886-2-2658-9168, ext. 16900
jinhong_lin@umc.com
david_wong@umc.com
