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UMC Reports Second Quarter 2021 Results<\/b><\/p>\n
Q2 gross margin rose to 31.3%; margin momentum expected to continue into Q3<\/i><\/b><\/p>\n
S<\/i><\/b>econd Quarter 2021 Overview1<\/sup>:<\/b><\/p>\n TAIPEI, Taiwan–(BUSINESS WIRE<\/a>)–United Microelectronics Corporation (NYSE: UMC; TWSE: 2303)<\/b> (\u201cUMC\u201d or \u201cThe Company\u201d), a leading global semiconductor foundry, today announced its consolidated operating results for the second quarter of 2021.\n<\/p>\n \nSecond quarter consolidated revenue was NT$50.91 billion, increasing 8.1% QoQ from NT$47.10 billion in 1Q21. Compared to a year ago, 2Q21 revenue was up 14.7% YoY from NT$44.39 billion in 2Q20. Consolidated gross margin for 2Q21 was 31.3%. Net income attributable to the shareholders of the parent was NT$11.94 billion, with earnings per ordinary share of NT$0.98.\n<\/p>\n \nJason Wang, co-president of UMC, said, \u201cStrong demand fueled by 5G adoption and digital transformation underpinned our strong performance in the second quarter. Our manufacturing facilities exceeded 100% utilization while overall wafer shipments rose 3.0% QoQ to 2.44 million 8-inch equivalents. Revenue from 28nm technologies continued to grow sequentially, fueled by applications incorporated into 4G\/5G smartphones, Solid State Drive, and Digital TV. During the quarter, we continued our product optimization and cost reduction efforts, lifting our gross margin. We expect the strength of structural demand to sustain and support the continuous improvement of blended ASP.As a result, the Company\u2019s gross profit in the first half of 2021 surged 54.5% YoY to NT$28.40 billion.\u201d\n<\/p>\n \nCo-president Wang continued, \u201cLooking ahead, we anticipate demand to stay robust in the third quarter driven by megatrends such as 5G and EV. Supply tightness is expected to continue, across 8\u201d and 12\u201d facilities. We foresee margin momentum to continue into the third quarter, supported by further product mix optimization, cost reduction efforts and productivity enhancements. In addition, we expect the adoption rate of our 22nm technologies will continue to gain traction, reflected by a pickup in customers\u2019 22nm product tape outs in connectivity and display applications. We will also focus on further strengthening our leadership position in a number of specialty technologies such as OLED display driver, RFSOI and imaging applications. Moreover, we continue to take important steps to enhance our corporate governance and lead sustainability efforts in our industry. Earlier this month, five independent directors were newly elected to the Company\u2019s Board of Directors, representing more than 50% of the board seats and including two female directors. The Company also announced its pledge to reach net zero carbon emissions by 2050, as well as our commitment to work alongside our partners to reduce carbon intensiveness and raise renewable energy usage in our supply chain. UMC is dedicated to enhance our corporate governance as well as addressing climate change to build a sustainable environment.\u201d\n<\/p>\n Summary of Operating Results<\/b><\/p>\n Operating Results<\/b><\/p>\n<\/td>\n<\/tr>\n \n(Amount: NT$ million)\n<\/p>\n<\/td>\n 2Q21<\/b><\/p>\n<\/td>\n 1Q21<\/b><\/p>\n<\/td>\n QoQ % 2Q20<\/b><\/p>\n<\/td>\n YoY % \nOperating Revenues\n<\/p>\n<\/td>\n \n50,908\n<\/p>\n<\/td>\n \n47,097\n<\/p>\n<\/td>\n \n8.1\n<\/p>\n<\/td>\n \n44,386\n<\/p>\n<\/td>\n \n14.7\n<\/p>\n<\/td>\n<\/tr>\n \nGross Profit\n<\/p>\n<\/td>\n \n15,908\n<\/p>\n<\/td>\n \n12,494\n<\/p>\n<\/td>\n \n27.3\n<\/p>\n<\/td>\n \n10,257\n<\/p>\n<\/td>\n \n55.1\n<\/p>\n<\/td>\n<\/tr>\n \nOperating Expenses\n<\/p>\n<\/td>\n \n(6,201)\n<\/p>\n<\/td>\n \n(5,932)\n<\/p>\n<\/td>\n \n4.5\n<\/p>\n<\/td>\n \n(5,677)\n<\/p>\n<\/td>\n \n9.2\n<\/p>\n<\/td>\n<\/tr>\n \nNet Other Operating Income and Expenses\n<\/p>\n<\/td>\n \n1,606\n<\/p>\n<\/td>\n \n1,060\n<\/p>\n<\/td>\n \n51.6\n<\/p>\n<\/td>\n \n1,266\n<\/p>\n<\/td>\n \n26.9\n<\/p>\n<\/td>\n<\/tr>\n \nOperating Income\n<\/p>\n<\/td>\n \n11,313\n<\/p>\n<\/td>\n \n7,622\n<\/p>\n<\/td>\n \n48.4\n<\/p>\n<\/td>\n \n5,846\n<\/p>\n<\/td>\n \n93.5\n<\/p>\n<\/td>\n<\/tr>\n \nNet Non-Operating Income and Expenses\n<\/p>\n<\/td>\n \n1,881\n<\/p>\n<\/td>\n \n3,361\n<\/p>\n<\/td>\n \n(44.0)\n<\/p>\n<\/td>\n \n818\n<\/p>\n<\/td>\n \n129.9\n<\/p>\n<\/td>\n<\/tr>\n \nNet Income Attributable to Shareholders of the Parent\n<\/p>\n<\/td>\n \n11,943\n<\/p>\n<\/td>\n \n10,428\n<\/p>\n<\/td>\n \n14.5\n<\/p>\n<\/td>\n \n6,681\n<\/p>\n<\/td>\n \n78.8\n<\/p>\n<\/td>\n<\/tr>\n \nEPS (NT$ per share)\n<\/p>\n<\/td>\n \n0.98\n<\/p>\n<\/td>\n \n0.85\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n0.55\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n(US$ per ADS)\n<\/p>\n<\/td>\n \n0.176\n<\/p>\n<\/td>\n \n0.153\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n0.099\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nOperating revenues in 2Q21 increased 8.1% to NT$50.91 billion partly reflected by slightly higher wafer shipment and the enhancement in blended product mix. Revenue contribution from 40nm and below technologies was 38%. Gross profit grew 27.3% QoQ to NT$15.91 billion, or 31.3% of revenue. Operating expenses increased 4.5% to NT$6.20 billion. Net other operating income increased to NT$1.61 billion. Net non-operating income was NT$1.88 billion. Net income attributable to shareholders of the parent increased to NT$11.94 billion.\n<\/p>\n \nEarnings per ordinary share for the quarter was NT$0.98. Earnings per ADS was US$0.176. The basic weighted average number of outstanding shares in 2Q21 was 12,206,292,756, compared with 12,206,292,756 shares in 1Q21 and 12,193,149,897 shares in 2Q20. The diluted weighted average number of outstanding shares was 12,382,592,798 in 2Q21, compared with 12,381,821,873 shares in 1Q21 and 12,262,774,432 shares in 2Q20. The fully diluted shares counted on June 30, 2021 were approximately 12,398,671,000.\n<\/p>\n Detailed Financials Section<\/b><\/p>\n COGS & Expenses<\/b><\/p>\n<\/td>\n<\/tr>\n \n(Amount: NT$ million)\n<\/p>\n<\/td>\n 2Q21<\/b><\/p>\n<\/td>\n 1Q21<\/b><\/p>\n<\/td>\n QoQ % 2Q20<\/b><\/p>\n<\/td>\n YoY % \nOperating Revenues\n<\/p>\n<\/td>\n \n50,908\n<\/p>\n<\/td>\n \n47,097\n<\/p>\n<\/td>\n \n8.1\n<\/p>\n<\/td>\n \n44,386\n<\/p>\n<\/td>\n \n14.7\n<\/p>\n<\/td>\n<\/tr>\n \nCOGS\n<\/p>\n<\/td>\n \n(35,000)\n<\/p>\n<\/td>\n \n(34,603)\n<\/p>\n<\/td>\n \n1.1\n<\/p>\n<\/td>\n \n(34,129)\n<\/p>\n<\/td>\n \n2.6\n<\/p>\n<\/td>\n<\/tr>\n \nDepreciation\n<\/p>\n<\/td>\n \n(10,187)\n<\/p>\n<\/td>\n \n(10,412)\n<\/p>\n<\/td>\n \n(2.2)\n<\/p>\n<\/td>\n \n(10,544)\n<\/p>\n<\/td>\n \n(3.4)\n<\/p>\n<\/td>\n<\/tr>\n \nOther Mfg. Costs\n<\/p>\n<\/td>\n \n(24,813)\n<\/p>\n<\/td>\n \n(24,191)\n<\/p>\n<\/td>\n \n2.6\n<\/p>\n<\/td>\n \n(23,585)\n<\/p>\n<\/td>\n \n5.2\n<\/p>\n<\/td>\n<\/tr>\n \nGross Profit\n<\/p>\n<\/td>\n \n15,908\n<\/p>\n<\/td>\n \n12,494\n<\/p>\n<\/td>\n \n27.3\n<\/p>\n<\/td>\n \n10,257\n<\/p>\n<\/td>\n \n55.1\n<\/p>\n<\/td>\n<\/tr>\n \nGross Margin (%)\n<\/p>\n<\/td>\n \n31.3%\n<\/p>\n<\/td>\n \n26.5%\n<\/p>\n<\/td>\n \n\u3000\n<\/p>\n<\/td>\n \n23.1%\n<\/p>\n<\/td>\n \n\u3000\n<\/p>\n<\/td>\n<\/tr>\n \nOperating Expenses\n<\/p>\n<\/td>\n \n(6,201)\n<\/p>\n<\/td>\n \n(5,932)\n<\/p>\n<\/td>\n \n4.5\n<\/p>\n<\/td>\n \n(5,677)\n<\/p>\n<\/td>\n \n9.2\n<\/p>\n<\/td>\n<\/tr>\n \nG&A\n<\/p>\n<\/td>\n \n(1,901)\n<\/p>\n<\/td>\n \n(1,806)\n<\/p>\n<\/td>\n \n5.2\n<\/p>\n<\/td>\n \n(1,537)\n<\/p>\n<\/td>\n \n23.5\n<\/p>\n<\/td>\n<\/tr>\n \nSales & Marketing\n<\/p>\n<\/td>\n \n(1,131)\n<\/p>\n<\/td>\n \n(1,089)\n<\/p>\n<\/td>\n \n3.8\n<\/p>\n<\/td>\n \n(929)\n<\/p>\n<\/td>\n \n21.8\n<\/p>\n<\/td>\n<\/tr>\n \nR&D\n<\/p>\n<\/td>\n \n(3,168)\n<\/p>\n<\/td>\n \n(3,049)\n<\/p>\n<\/td>\n \n3.9\n<\/p>\n<\/td>\n \n(3,203)\n<\/p>\n<\/td>\n \n(1.1)\n<\/p>\n<\/td>\n<\/tr>\n \nExpected Credit Impairment Gain (Loss)\n<\/p>\n<\/td>\n \n(1)\n<\/p>\n<\/td>\n \n12\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n(8)\n<\/p>\n<\/td>\n \n(81.3)\n<\/p>\n<\/td>\n<\/tr>\n \nNet Other Operating Income & Expenses\n<\/p>\n<\/td>\n \n1,606\n<\/p>\n<\/td>\n \n1,060\n<\/p>\n<\/td>\n \n51.6\n<\/p>\n<\/td>\n \n1,266\n<\/p>\n<\/td>\n \n26.9\n<\/p>\n<\/td>\n<\/tr>\n \nOperating Income\n<\/p>\n<\/td>\n \n11,313\n<\/p>\n<\/td>\n \n7,622\n<\/p>\n<\/td>\n \n48.4\n<\/p>\n<\/td>\n \n5,846\n<\/p>\n<\/td>\n \n93.5\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nOperating revenues grew to NT$50.91 billion. COGS remained flattish at NT$35.00 billion, as the 2.2% sequential decline in depreciation was offset the 2.6% increase in other manufacturing costs primarily due to higher wafer shipments in 2Q21. Gross profit increased 27.3% QoQ to NT$15.91 billion, reflecting the uptick in overall average selling price across 8\u201d and 12\u201d wafer shipments. Operating expenses increased 4.5% QoQ to NT$6.20 billion, as G&A grew 5.2% sequentially to NT$1.90 billion while R&D increased 3.9% QoQ to NT$3.17 billion, representing 6.2% of revenue. Sales & Marketing was up 3.8% QoQ to NT$1.13 billion. Net other operating income was NT$1.61 billion. In 2Q21, operating income expanded 48.4% QoQ to NT$11.31 billion.\n<\/p>\n\n
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