United Microelectronics Corpora (NYSE:UMC)

Fourth Quarter 2019 Financial Results

• Fourth quarter consolidated revenue was NT$41.85 billion, up 10.9% QoQ from NT$37.74 billion in 3Q19 and up 17.8% YoY from NT$35.52 billion in 4Q18. Consolidated gross margin for 4Q19 was 16.7%.
  
• Net income attributable to the stockholders of the parent was NT$3.84 billion, with earnings per ordinary share of NT$0.33.

Jason Wang, co-president of UMC, said, “During the fourth quarter, we started to account for the foundry operations at our recently acquired USJC (Fab 12M) in Japan. In spite of currency headwinds encountered in the foreign exchange markets, our foundry revenue increased 10.9% QoQ to NT$41.83 billion, leading to a foundry operating margin of 4.9%. Utilization rate increased to 92%, bringing wafer shipments to 2.04 million 8-inch equivalent wafers primarily driven by the communication and computing segments. For the year, our earnings per share increased 41% YoY to NT$0.82. Our continued disciplined CAPEX approach also enabled UMC to generate a total of NT$37.1 billion in free cash flow, up 19% YoY. In terms of technology, we recently validated our 22nm process on a USB 2.0 test vehicle, demonstrating the technology readiness of this design rule shrink from 28nm. UMC’s 22nm process features a 10% area reduction, better power-to-performance ratio and enhanced RF capabilities compared to our existing 28nm High-K/Metal Gate technology.”

Co-president Wang further commented, “Looking to the first quarter of 2020, based on customer forecasts, the overall business outlook appears to remain consistent with the previous quarter, primarily due to stable wafer demand across wireless communication and computer peripheral segments. As we receive new product tape-outs that will enter future production pipelines, we expect to benefit from 5G and IoT trends that will generate additional semiconductor demand, specifically in wireless devices as well as power management applications. While our focus remains to maintain a disciplined capital expenditure spending, owing to mid to long term customer and market demand, we have setup our 2020 capex budget of US$1 billion. In the meantime, UMC will continue to penetrate into new segments and expand our presence in existing markets; our core competence in process technology development, and world-class foundry service will strengthen our position in delivering logic and specialty manufacturing solutions.”

Third Quarter 2019 Financial Results

• Third quarter consolidated revenue was NT$37.74 billion, up 4.7% QoQ from NT$36.03 billion in 2Q19 and down 4.2% YoY from NT$39.39 billion in 3Q18. 
  
• Consolidated gross margin for 3Q19 was 17.1%. 
  
• Net income attributable to stockholders of the parent was NT$2.93 billion, with earnings per ordinary share of NT$0.25.

Jason Wang, co-president of UMC, said, “In the third quarter, foundry revenue grew 4.8% QoQ to NT$37.73 billion, leading to a foundry operating margin of 6.9%. Utilization rate increased to 91%, bringing wafer shipments to 1.81 million 8-inch equivalent wafers. The increase in wafer demand was primarily driven by inventory restocking in the wireless communication markets, which included products such as WiFi, RF switch and power management ICs. On October 1st, UMC also completed the full acquisition of MIFS, a 300mm fab based in Japan that is currently manufacturing 90nm, 65nm and 40nm products. The fab, which fits our specialty technology focus and long term growth projections, has been renamed United Semiconductor Japan Co., Ltd. (USJC). USJC will increase our foundry market share, provide business synergies and benefit from economies of scale while broadening UMC’s comprehensive specialty and logic technologies to serve Japanese and international customers.”

Co-president Wang further commented, “Looking to the fourth quarter, based on customers’ forecasts, the overall business outlook appears to remain firm primarily due to sustained wafer demand from new product deployment across communications and computing market segments. These product rollouts include RF ICs and OLED driver ICs found in 5G smartphones and power management ICs designed into computing and solid-state drive applications. We expect these product releases to enable UMC to further gain market share in 5G wireless devices as well as in non-volatile memory applications. We will continue to pursue our corporate strategy of focusing on business expansion in mature specialty and logic technologies while delivering world-class service to our customers. With UMC’s economy of scale and our core strength in foundry technologies, we look forward to securing new business opportunities by delivering a variety of differentiated manufacturing solutions in the semiconductor industry.”

Fourth Quarter of 2019 Outlook & Guidance

Quarter-over-Quarter Guidance:

Wafer Shipments: To increase by 10%
ASP in USD: To remain flat
Profitability: Gross profit margin will be in the mid-teens % range
Foundry Segment Capacity Utilization: Close to 90%
2019 CAPEX for Foundry Segment: US$700 million

HSINCHU, Taiwan--(BUSINESS WIRE)--

300mm fab further diversifies UMC’s Asia manufacturing base

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC"), a leading global semiconductor foundry, today announced that the company has satisfied all closing conditions, including final approval from all relevant government agencies, for the full acquisition of Mie Fujitsu Semiconductor Limited (MIFS), the former 300mm wafer foundry joint venture between UMC and Fujitsu Semiconductor Limited (FSL). The completion of the acquisition is scheduled for October 1, 2019.

In 2014, FSL and UMC agreed for UMC to acquire a 15.9% stake in MIFS from FSL through progressive phases. FSL is now cleared to transfer the remaining 84.1% of its shares in MIFS to UMC, with a final transaction value to acquire the remaining shares totaling ¥ JPN 54.4 billion. As a wholly-owned subsidiary of the Taiwan-based foundry, MIFS will be renamed as United Semiconductor Japan Co., Ltd. (USJC).

In addition to the equity investment in MIFS, FSL and UMC have had a mutually beneficial partnership through licensing of UMC's 40nm technology and establishment of a 40nm logic production line at MIFS. After several years of joint operations, both companies agreed on the benefits of integrating MIFS into UMC to strengthen UMC’s business foundation as a leading global semiconductor foundry with a broad customer portfolio, enhanced manufacturing expertise and extensive technology offerings, enabling MIFS to maximize its potential, enhance Japan’s semiconductor industry competiveness and drive values to UMC’s stakeholders.

Jason Wang, co-president of UMC, said, “This win-win acquisition will create synergies through the integration of USJC’s world-class production quality standards and employees with UMC's decades of manufacturing experience, economy of scale and foundry expertise to provide enhanced support for new and existing Japanese customers. Meanwhile, UMC’s global customers will gain access to a volume production 300mm fab in Japan.”

Co-president Wang continued, “The addition of USJC also complements UMC’s strategy of developing a diversified 300mm manufacturing capability across Asia. Going forward, we will continue to stay focused on our strength in Specialty Technologies and explore growth opportunities in line with this strategy through the evaluation of both internal and external capacity expansion opportunities.”

Second Quarter 2019 Financial Results

• Second quarter consolidated revenue was NT$36.03 billion, up 10.6% QoQ from NT$32.58 billion in 1Q19 and down 7.3% YoY from NT$38.85 billion in 2Q18. 
• Earnings per ordinary share for the quarter was NT$0.15. Earnings per ADS was US$0.024.

First Quarter 2019 Financial Results

•  First quarter consolidated revenue was NT$32.58 billion, down 8.3%
•  Earnings per ordinary share for the quarter was NT$0.10. Earnings per ADS was US$0.016.

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.”

Fourth Quarter 2018 Financial Results

• Fourth quarter consolidated revenue was NT$35.52 billion, down 9.8% QoQ from NT$39.39 billion in 3Q18 and declined 3.0% YoY from NT$36.63 billion in 4Q17.
• Loss per ordinary share for the quarter was NT$0.14. Loss per ADS was US$0.023.

Jason Wang, co-president of UMC, said, “In the fourth quarter, foundry revenue declined 9.8% QoQ to NT$35.49 billion, leading to a foundry operating loss of 1.3%. Utilization rate was 88%, bringing wafer shipments to 1.71 million 8-inch equivalent wafers. Despite softened wafer demand during the fourth quarter, UMC continued to maintain stable capacity utilization for 8" and mature 12" geometries.”

Co-president Wang continued, “In 2018, we started seeing the early fruits of our strategy with measurable results. Our disciplined capital expenditure approach helped to generate a free cash flow total of NT$31.34 billion for the year. In addition, we completed two rounds of treasury share buybacks for cancellation, amounting to approximately NT$6.5 billion.”

Co-president Wang further commented, “Looking into the first quarter of 2019, we anticipate further deceleration in customers’ wafer demand, due to a softer than expected outlook in entry-level and mid-end smartphones as well as falling crypto currency valuations. Although UMC’s ongoing transformation will need time to reach its full synergy and potential, our progress so far has enabled the company to better endure these current headwinds. Going forward, we will continue executing our strategy of evaluating and pursuing return-driven investment while focusing on our technology strength within specialty processes on existing nodes. We are confident that our sustained efforts and calculated global capacity expansion will strengthen UMC’s resilience during a challenging market, while favorably positioning the company to take maximum advantage during strong demand cycles.”

Third Quarter 2018 Financial Results

• Third quarter consolidated revenue was NT$39.39 billion, up 1.4% QoQ from NT$38.85 billion in 2Q18 and 4.5% YoY from NT$37.70 billion in 3Q17.
• Earnings per ordinary share for the quarter was NT$0.14. Earnings per ADS was US$0.023.

Jason Wang, co-president of UMC, said, “In the third quarter, foundry revenue reached a record high of NT$39.33 billion, up 1.4% from 2Q18. Foundry operating margin was 6.4%. Utilization rate reached 94%, bringing wafer shipments to 1.8 million 8-inch equivalent wafers. Loading across 8" and mature 12" technologies continued to operate at full capacity, as the company generated NT$10.16 billion of free cash flow during the quarter. In addition, we saw an increase in computing related applications, which offset the decline in the communication segment. From a long-term perspective, we believe numerous essential semiconductor components will continue to strengthen our specialty technology business. For example, Allegro Microsystems, a leader in high-performance power and sensor solutions, signed a multi-year manufacturing agreement with UMC to ensure long-term capacity support for their growing wafer requirements in industrial and automotive segments.”

Co-president Wang continued, “Looking into the next quarter, we are seeing a softening of wafer demand from customers, partly due to continued softness in entry and mid-end smartphones. The recent escalation of trade tensions, rising global crude oil prices and continuous weakening of emerging market currencies could further increase uncertainties in the broader economy. Meanwhile, we will continue the execution of our strategy to invest in return-driven goals while moderating the expansion of advanced technologies. We are confident that UMC’s globalization efforts will increase our customers’ competitive edge through geopolitical risk mitigation while enhancing shareholder value to preserve the best interests of all our stakeholders.”

Fourth Quarter of 2018 Outlook & Guidance

Quarter-over-Quarter Guidance:

Wafer Shipments: To decrease by 4-5%
ASP in USD: To decline by 4-5%
Profitability: Gross profit margin will be in the low-teens % range
Foundry Segment Capacity Utilization: High 80% range
2018 CAPEX for Foundry Segment: US$1.1 billion

HSINCHU, Taiwan & FREMONT, Calif.--(BUSINESS WIRE)--

UMC will offer cost effective licensing of embedded 28nm non-volatile MRAM macros to its foundry customers

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC"), a leading global semiconductor foundry, and Avalanche Technology, Inc., the next generation STT-MRAM (Spin Transfer Torque Magnetic RAM) leader, today announced that they have entered a partnership for joint development and production of MRAM to replace embedded flash. UMC will also make this technology available to other companies through licensing with Avalanche Technology Inc.

Under the terms of the agreement, UMC will provide embedded non-volatile MRAM blocks based on UMC's 28nm CMOS manufacturing process. This will enable customers to integrate low latency, very high performance and low power embedded MRAM memory blocks into MCUs and SoCs, targeting the Internet of Things, wearable, consumer, industrial and automotive electronics markets.

The two companies are also considering to expand the cooperation beyond 28nm, as Avalanche Technology’s CMOS compatibility and scalability to advanced process nodes enables integration of unified memory (non-volatile as well as SRAM) blocks into next generation highly integrated MCUs and SoCs. This allows system designers to maintain the same architecture and software ecosystem without a redesign.

"We're excited to team with a world leader in semiconductor manufacturing such as UMC to bring this outstanding technology to market," said Petro Estakhri, CEO and co-founder of Avalanche Technology.

"UMC is continuously introducing enhanced process offerings to bring added competitive benefits to our customers," said G C Hung, vice president of Advanced Technology Development at UMC. "With embedded NVM becoming more prevalent in today’s IC designs, we have developed a strong portfolio of robust eNVM process solutions for high growth sectors such as emerging consumer and automotive applications. We are happy to cooperate with Avalanche Technology for 28nm MRAM, and we look forward to ramping this process to production for UMC customers."

SAN JOSE, Calif.--(BUSINESS WIRE)--

Partnership enables UMC to develop and manufacture products utilizing Invensas DBI and ZiBond technologies

Xperi Corporation (XPER) (“Xperi”) is pleased to announce a partnership with leading global semiconductor foundry, UMC. This strategic partnership will enable the companies to support the growing demand for Invensas ZiBond® and Invensas DBI® 3D semiconductor technologies.

Together, Xperi and UMC will further optimize and commercialize the ZiBond and DBI technologies for a wide range of semiconductor devices including image sensors, radio frequency (RF), MEMS, display drivers, touch controllers, SoC, analog, power and mixed-signal devices. Wafer to wafer (W2W) and die to wafer (D2W) bonding and 3D interconnect implementations will be employed to address the requirements of a variety of applications within the mobile, consumer, automotive, communication, industrial and Internet of Things (IoT) industries.

“As a world-leading semiconductor foundry, we are committed to delivering leading-edge solutions to our customers,” said Wenchi Ting, vice president of specialty technologies at UMC. “By partnering with Xperi and the Invensas team, true pioneers in direct and hybrid bonding technologies, we continue to be well-positioned to meet our customers’ evolving requirements for advanced wafer bonding technologies.”

“We are excited to join forces with UMC, a premier global foundry engaged in every major sector of the electronics industry, to expand the production base for our ZiBond and DBI bonding and 3D interconnect platforms,” said Craig Mitchell, president, Invensas. “We look forward to working together to proliferate these enabling technologies into a wide range of high volume semiconductor applications.”

ZiBond is a low temperature homogenous direct bonding technology that forms strong bonds between semiconductor wafers or die with same or different coefficients of thermal expansion. This technology is used in image sensors, MEMS and various RF front-end devices.

DBI is a low temperature hybrid direct bonding technology that allows semiconductor wafers or die to be bonded with exceptionally fine pitch 3D electrical interconnect. This technology is suited for various semiconductor devices such as image sensors, DRAM, MEMS and RF devices.

Products employing these technologies are found in smartphones, tablets, laptops, cameras, televisions and gaming consoles, as well as in industrial, automotive and IoT electronic devices.

HSINCHU, Taiwan--(BUSINESS WIRE)--United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC"), a leading global semiconductor foundry, today announced that its Board of Directors has approved for the company to fully acquire Mie Fujitsu Semiconductor Limited (MIFS), a 12-inch wafer foundry based in Mie, Japan, from Fujitsu Semiconductor Limited (Fujitsu Semiconductor). Based on the net value of MIFS on March 31, 2018, the purchase value will be no more than ¥ JPN 57.63 billion. UMC currently owns 15.9% of MIFS shares. Under the terms of the agreement, Fujitsu Semiconductor will transfer the remaining 84.1% of its shares in MIFS to UMC, making MIFS a wholly-owned subsidiary.

UMC’s Board of Directors also approved plans for the company to apply with the China Securities Regulatory Commission for UMC’s mainland operations to be listed on the Shanghai Stock Exchange as an A-list offering. HeJian Technology (Suzhou) Co. will represent UMC’s China businesses, which include HeJian’s 8” fab, United Semi and its 12” fab in Xiamen and Shandong-based UDS, which provides IC design support services.

Jason Wang, co-president of UMC said, “UMC is experiencing high demand from mature 12" processes. With new applications in 5G, IoT, automotive and AI requiring these technologies, we anticipate the market conditions driving this demand to remain strong. With existing 300mm fabs in Taiwan, China and Singapore, Japan-based MIFS will help customers further diversify their manufacturing risk with a robust production base to ensure business continuity while enhancing UMC’s worldwide service quality. We are excited that the strong partnership between UMC and Fujitsu Semiconductor will enable us to achieve further growth and provide customers with higher value through the acquisition of MIFS.”

Co-president Wang continued, “An A-share listing on the Shanghai Stock Exchange for our HeJian-led China subsidiaries provides an ideal path for UMC to quickly capitalize on the rapid growth of China’s semiconductor market and facilitate long-term development. The raised capital would be allocated towards reinvestment in UMC’s successful China operations in order to provide customers with a complete, integrated IC manufacturing solution from chip design to manufacturing, which will help expand our market share and further increase production scale, technical quality, and overall competitiveness.”

Listing of A-shares to provide a more diversified source of local funds improves the company’s financial structure and strengthens the company's asset and capital positions, while allowing more capital to remain in Taiwan. As part of the listing, UMC can also attract and retain top local talent through implementation of an Employee Stock Ownership Program (ESOP).

The revenue of HeJian constitutes about 11% of UMC’s consolidated revenue, while the number of new shares planned for issue will also be around 11% of the total shares outstanding. UMC will remain the majority shareholder possessing approximately 87% of HeJian’s equity, with no meaningful dilution to the rights and interests of the parent company.

Co-president Wang added, “UMC has always been committed to expanding its operating scale, strengthening customer competitiveness and enhancing shareholder value through globally diversified manufacturing. The Board of Directors’ approval to fully acquire MIFS from Fujitsu and publicly listing our China operations on the local stock exchange will help drive UMC’s long-term development and achieve global synergies that will strengthen the company's manufacturing competitiveness, while maintaining our established base in Taiwan.”

TAIPEI, Taiwan--(BUSINESS WIRE)--

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 2018.

First quarter consolidated revenue was NT$37.50 billion, up 2.4% from NT$36.63 billion in 4Q17 and flat YoY from NT$37.42 billion in 1Q17. Consolidated gross margin for 1Q18 was 12.4%. Net income attributable to stockholders of the parent was NT$3.40 billion, with earnings per ordinary share of NT$0.28.

Jason Wang, co-president of UMC, said, “In the first quarter of 2018, despite the unfavorable movement of the NT dollar, our foundry revenue increased 2.5% QoQ to NT$37.44 billion. Stable loading across 8" and mature 12" technologies resulted in an overall utilization rate of 94%, bringing wafer shipments to 1.75 million 8-inch equivalent wafers. Softening demand in smartphone and other wireless devices was more than offset by strength in the computer and consumer segments.”

Co-president Wang continued, “Looking into the second quarter, we anticipate our wafer shipments to increase, mainly due to growing business opportunities from wireless communication as well as computer peripheral related chip demand. As we secure new product tape outs across advanced and mature technologies including 28nm, we will leverage our collaborative efforts with customers supported by UMC’s manufacturing excellence to enhance our market share and financial results. While we focus on revenue and profit growth, we also seek to maximize shareholder returns. Subject to shareholders’ approval, the board of directors recently proposed a cash dividend distribution of approximately NT$0.70 per share, which constitutes around an 88% cash dividend payout ratio. In addition, we began our 18th share buyback program in March 8, 2018 and will complete the purchase of shares for cancellation by May 7, 2018. Moving forward, we will continue to improve UMC’s profitability and maintaining business growth to maximize benefits to our shareholders.”

Fourth Quarter 2017 Financial Results

• Fourth quarter consolidated revenue was NT$36.63 billion, down 2.8% from NT$37.70 billion in 3Q17 and decreased 4.4% YoY from NT$38.31 billion in 4Q16.
• Earnings per ordinary share for the quarter was NT$0.15. Earnings per ADS was US$0.025.

Jason Wang, co-president of UMC, said, “In the fourth quarter of 2017, UMC’s foundry revenue was NT$36.54 billion. During the quarter, our capacity utilization from legacy 8” and 12” technologies continued to reflect robust demand, despite a decrease in 28nm HKMG contribution. The utilization rate of 90% led to overall wafer shipments of 1.67 million 8-inch equivalents. For the full year of 2017, UMC posted a 7% YoY revenue increase in US dollars as wafer shipments increased nearly 11% annually. As a result, our 2017 net income of the parent company grew nearly 16% year on year, despite experiencing unfavorable movement of the NT dollar in the foreign exchange markets.”

Co-president Wang continued, “Looking into the first quarter of 2018, we anticipate our foundry business to remain relatively flat. We are continuing our efforts to capture new 28nm business by working to secure new design opportunities, which will help rebuild our 28nm momentum as these new product tape outs are expected to enter production in the following months. In addition, we will leverage our manufacturing excellence to invest in areas with better ROI potential, including 12” mature technologies as well as tool and equipment upgrades at 8” facilities. As such, our 2018 CAPEX budget will be approximately US$1.1 billion. I believe our approach to optimizing the offerings across 8” and 12” mature technologies while moderating the pace of leading edge expansion will lead to sound financial performance that will preserve the best interests of our shareholders and employees.”

HSINCHU, Taiwan--(BUSINESS WIRE)--

United Microelectronics Corporation (NYSE:UMC; TWSE:2303) ("UMC"), a leading global semiconductor foundry, today announced that the company has filed a patent infringement lawsuit against Micron Semiconductor (Xi'an) Co., Ltd. and Micron Semiconductor (Shanghai) Co., Ltd. in the Fuzhou Intermediate People's Court of the People’s Republic of China (PRC). The lawsuit covers three areas that allegedly infringe upon UMC’s patent rights in China, including specific memory applications that relate to DDR4, SSD and memory used in graphics cards.

In the complaint, UMC has requested the court to order the defendant(s) to stop manufacturing, processing, importing, selling and intending to sell the allegedly infringing products, destroy all inventory and related molds and tools and demand that Micron compensate the company for a total amount of RMB 270 million in damages.

UMC has devoted a great deal of resources and manpower to researching and developing semiconductor manufacturing technology. Its achievements can be applied to logic chips or memory chips (DRAM), and the company has applied for patents in various countries while continuing to monitor these patents as market conditions evolve. After conducting an in-depth review, UMC found that Micron's products sold in mainland China did indeed infringe upon the patent rights of the company, and thus patent infringement litigation has been pursued in order to obtain fair judgment.

HSINCHU, Taiwan--(BUSINESS WIRE)--

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC"), a leading global semiconductor foundry, today announced that its 300mm Fab 12X in Xiamen China, has gained LEED (Leadership in Energy and Environmental Design) Gold recognition from the U.S. Green Building Council. The state-of-the-art fab achieved the highest combined score among all 300mm foundry fabs in China, including a perfect score for Water Efficiency. This milestone further demonstrates UMC’s commitment to green building and environmentally sustainable operations.

M.L. Liao, vice president in charge of manufacturing resources integration and the environmental committee at UMC said, “UMC has initiated and implemented green measures not only to enhance energy-conservation for existing fabs, but also to ensure that new fabs meet and exceed the latest green building standards. Fab 12X’s LEED Gold certification is a significant milestone in our efforts to promote sustainable manufacturing. Going forward, UMC will continue to fulfill its responsibility as a corporate citizen and base its development on green building concepts to promote the formation of a low-carbon, sustainable society.”

UMC’s Fab 12X is southern China's first 300mm foundry facility. The fab is in mass production for 40nm and 28nm technologies, with a maximum design capacity of 50,000 wafers per month. The Xiamen based fab is a short distance from Taiwan, allowing seamless support from UMC’s Taiwan headquarters. Fab 12X offers diversified 300mm manufacturing in addition to UMC’s two other 300mm fabs in Taiwan and Singapore, and complements Hejian fab in Suzhou, China, which provides 8" foundry services.

Third Quarter 2017 Financial Results

• Revenue was NT$37.70 billion, flat from NT$37.54 billion in 2Q17 and down 1.2% YoY from NT$38.16 billion in 3Q16. 3Q17 consolidated gross margin was 17.5%.
• Earnings per ordinary share for the quarter was NT$0.28. Earnings per ADS was US$0.046. The basic weighted average number of outstanding shares in 3Q17 was 12,208,239,978 compared with 12,208,239,978 shares in 2Q17 and 12,208,239,978 shares in 3Q16.

Jason Wang, co-president of UMC, said, “In the third quarter of 2017, UMC’s foundry revenue was NT$37.61 billion. In 3Q17, we continued to sustain stable utilization rates across our 8” and 12” mature technologies, driven by strong chip demand in consumer and computing peripheral segments. Our 8” facilities remained nearly full while mature 12” fabs operated above 90% capacity, lifting overall wafer shipments to 1.75 million 8-inch equivalents. Our 12” fab in Xiamen, Fab 12X, also began shipping 28nm wafers, with yield rates and chip performance reaching the same quality as our Tainan Fab 12A.”

President Wang continued, “Looking into 4Q17, we expect the business environment to decline, due to typical year-end seasonal adjustment. In addition, we foresee 28nm HKMG demand to soften. As we develop and redefine new process technologies according to market demand, we expect to enhance UMC’s market share by penetrating into emerging applications including IoT, 5G wireless and industrial segments, which will spur new waves of growth opportunities. UMC’s recent selection as a DJSI global component for the 10th consecutive year also highlights our active involvement in environment protection and sustainable manufacturing practices, demonstrating our commitment to setting higher corporate social responsibility standards.”

Second Quarter 2017 Financial Results

• Revenue was NT$37.54 billion, up from NT$37.42 billion in 1Q17 and up 1.5% YoY from NT$37.00 billion in 2Q16.
• EPS US$ per ADS was 0.028  vs. 0.035.

Jason Wang, newly appointed co-president of UMC, said, “In the second quarter of 2017, UMC’s foundry revenue was NT$37.45 billion. Stable chip demand led to a utilization rate of 96%, bringing wafer shipments to 1.74 million 8-inch equivalents. Gross margin was 18.1%. We experienced robust demand for our mature technologies on both 8” and 12” manufacturing, led by strength in the computing and communication segments.”

President Wang continued, “Looking into the third quarter, demand for our mature technologies remains firm. However, due to a softened outlook for 28nm, we project a sequentially flat quarter. Our 28nm HKMG business has become increasingly vulnerable due to high exposure among a few key customers. As a result, we are seeing the possibility that the decline of our 28nm HKMG business will extend into the second half of 2017.”

Co-president SC Chien added, “Recently, UMC’s board of directors appointed Mr. Jason Wang and I as co-presidents. I will take the lead in fab operations and technology development, while president Wang will be responsible for business management and corporate strategy. We will both implement measures to strengthen our foundry competitiveness in core manufacturing and drive operational efficiencies to enhance financial performance. Our goal is to unlock UMC’s value and lead to positive cash flow.”

Third Quarter of 2017 Outlook & Guidance

Quarter-over-Quarter Guidance:

Wafer Shipments: To remain flat
ASP in USD: To remain flat
Profitability: Gross profit margin will be in the mid-teens % range
Foundry Segment Capacity Utilization: Low 90% range
2017 CAPEX for Foundry Segment: US$1.7 billion

MOUNTAIN VIEW, Calif. and HSINCHU, Taiwan, March 14, 2017 /PRNewswire/ --

Highlights:

Custom Compiler support brings visually-assisted automation to UMC customers
New industry-standard interoperable process design kit (iPDK) and tool flow validated for UMC's 14-nm process
14-nm FinFET iPDK joins a broad set of iPDKs available for other UMC processes
Synopsys, Inc. (SNPS) and United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (UMC) today announced that the two companies have worked together to enable Synopsys Custom Compiler™ and Laker® custom design tools to be used with UMC's 14-nanometer (nm) FinFET process. The enablement collaboration included creating and validating a UMC 14-nm industry-standard iPDK. This iPDK enables full support of the Custom Compiler visually-assisted layout flow, including groundbreaking features that reduce the time it takes for users to layout and connect FinFET devices. The Custom Compiler solution integrates with Synopsys circuit simulation, physical verification and digital implementation tools to provide UMC 14-nm process users with a complete custom design solution.

"We have a long history of working with Synopsys to provide iPDKs for our customers," said T.H. Lin, director of the IP Development and Design Support division at UMC. "This new 14-nanometer iPDK enables layout designers, including our own internal team, to use Synopsys' custom design tools for FinFET layout productivity. We are pleased to offer this resource to help customers streamline their design-in process on our volume-production 14-nanometer technology."

"FinFET process technology is becoming very popular with our customers, but FinFET layout can be a challenge," said Bijan Kiani, vice president of product marketing at Synopsys. "We collaborated with UMC to enable Custom Compiler for their 14-nanometer process, so UMC customers can use Custom Compiler's visually-assisted layout to improve FinFET layout productivity."

HSINCHU, Taiwan--(BUSINESS WIRE)--United Microelectronics Corporation (NYSE:UMC;TWSE: 2303) ("UMC"), a leading global semiconductor foundry, today announced that it has entered mass production for customer ICs based on the company’s self-developed 14nm FinFET technology. The foundry is shipping 14nm wafers to its lead customers and has achieved industry-competitive yields for the highly advanced process, which is being utilized for pioneering new consumer electronic applications.

Po-Wen Yen, CEO of UMC said, “This 14nm volume production milestone is the culmination of UMC’s close collaboration with its customers, demonstrating the success of our collaborative approach to bringing leading-edge technologies to market. We will continue to refine this process and are working with other customers to bring the full performance, power and gate density benefits of 14nm FinFET to enable next generation silicon in areas such as networking, AI and various consumer products."

UMC’s 14nm FinFET technology performance is competitive with the semiconductor industry’s leading standards, featuring 55% higher speed and twice the gate density over 28nm process technology. The leading-edge 14nm process also consumes approximately 50% less power than 28nm. UMC is producing the 14nm customer ICs at the company’s Fab 12A in Tainan, Taiwan and expects to steadily ramp its 14nm manufacturing capacity according to customer demand.

Fourth Quarter 2016 Financial Reports

• Fourth quarter consolidated revenue was NT$38.31 billion, flat from NT$38.16 billion in 3Q16 and an increase of 13.2% YoY from NT$33.85 billion in 4Q15. 4Q16 consolidated gross margin was 22.9%.
• Net income attributable to the stockholders of the parent was NT$2.55 billion, with earnings per ordinary share of NT$0.21.

Mr. Po-Wen Yen, CEO of UMC, said, “In the fourth quarter of 2016, UMC’s revenue from foundry operations was NT$38.22 billion. Overall capacity utilization reached 94%, bringing wafer shipments to 1.66 million 8-inch equivalent wafers. Operating margin was 6.3%. During the quarter, our 28nm and 40nm utilization rate continued to exceed 90%, while strength in 8” consumer and communication demand raised 8” fab utilization to nearly 100%. We also realized a noteworthy milestone in November with the grand opening of our 300mm Fab 12X in Xiamen, China, which began shipping 40nm customer wafers just 20 months after the fab’s March 2015 groundbreaking. This site will ideally position UMC to capitalize on the vast business opportunities within China’s semiconductor market while bringing us closer to our Chinese customers, where our team can provide superior technical and manufacturing services and more efficiently bring new tape outs into production. With regard to our advanced 14nm technology, we have recently made substantial progress for this advanced node. Following intensive engineering activities with our customer, UMC’s 14nm transistor performance has delivered speed and leakage results which are comparable with the industry’s 14nm standards. Our yields have fulfilled customer requirements, and we anticipate 14nm wafer shipments to commence in 1Q17, highlighting our determined efforts to reach this important milestone.”

CEO Yen continued, “Looking into the first quarter of 2017, as we enter early year seasonality, we expect a sequential decrease in our foundry business. For full year 2017, UMC will continue to work towards a year of growth and prosperity. Our fundamental 28nm process technology know-how will enable our team to develop new manufacturing solutions on logic and specialty technology platforms. We will also expand 300mm capacity at Fab 12X to address growing customer wafer demand, increase our foundry market share and elevate the competitiveness of our foundry services. We believe these efforts will position UMC to capture the next wave of growth opportunities.”

First Quarter of 2017 Outlook & Guidance

Quarter-over-Quarter Guidance:

Wafer Shipments: To decrease by approximately 1%
ASP in NTD: To decrease by approximately 3%
Profitability: Gross profit margin will be in the mid-teens % range
Foundry Segment Capacity Utilization: Approximately 90%
2017 CAPEX for Foundry Segment: US$2.0bn

SAN JOSE, Calif. and HSINCHU, Taiwan, Dec. 19, 2016 /PRNewswire/ -- Cypress Semiconductor Corp. (CY), a leading embedded solutions provider, and United Microelectronics Corporation (UMC) (2303.TW) ("UMC"), a leading global semiconductor foundry, today announced that Cypress has begun volume shipments of microcontrollers (MCUs) containing its proprietary 40nm Embedded Charge-Trap (eCT™) Flash manufactured at UMC. The shipments mark the culmination of a multi-year collaboration between Cypress and UMC to integrate Cypress's flash technology with UMC's 40nm Low Power (40LP) logic process. The 40nm eCT Flash comes in a 0.053 μm2 cell size that is approximately 25 percent smaller than the nearest competitor. The eCT Flash macro is capable of 8 nsec random access and 30 μsec word-programming speed, two key attributes engineered for the most-demanding, high-performance applications. In addition, it meets stringent automotive reliability requirements.

"This is an important milestone for eCT technology and a testimony to the successful partnership between Cypress and UMC; at the current run rate, we will have shipped more than seven million MCUs containing eCT Flash by the end of this year," said Sam Geha, senior vice president of the Memory Products Division at Cypress. "We set out to deliver an embedded Flash technology with the industry's smallest cell size. Leveraging our memory expertise and UMC's process expertise, we were able to fulfill that objective while minimizing mask adders and preserving logic device models. We also integrated automotive-grade reliability and performance, making eCT a key enabler of Cypress's new generation of Traveo™-branded automotive MCU products."

"UMC and Cypress have a long-standing development relationship over many technology generations," said S.C. Chien, senior vice president of Corporate Marketing at UMC. "Our 40LP is a mature, high-volume production technology that appeals to numerous market sectors due to its proven defect density and yields, resulting in considerably reduced costs compared to smaller process geometries, while still addressing power and performance requirements. UMC also helps customers mitigate geographic risk with fabs supporting 40LP in Taiwan, Singapore and China, and we are pleased to extend the benefits of our 40LP process to support Cypress's eCT technology and bring differentiation to their MCUs."

With its small cell size along with high performance and reliability, eCT is an ideal solution for a wide range of applications, from automotive to industrial to consumer. In addition, the scalability enabled by the relatively low cell profile means that eCT technology will ensure a competitive MCU product roadmap through 28nm and beyond.

HSINCHU, Taiwan--(BUSINESS WIRE)--

United Microelectronics Corporation (UMC) (NYSE: UMC; TWSE: 2303), a leading global semiconductor foundry, today celebrated the grand opening of United Semi, UMC’s 12-inch joint venture wafer fab in Xiamen China. The state-of-the-art fab, which was completed in record time, realized volume production for customer products merely 20 months after groundbreaking in March of 2015. Pilot production yields for communication ICs at the fab have already exceeded 99% on the company’s 40nm process. Zhuang Jiahan, city mayor of Xiamen, delivered the keynote speech for today’s event.

Po-Wen Yen, CEO of UMC, said “Owing to the tireless teamwork of our suppliers, facilities management and engineering teams, we have realized successive, noteworthy milestones since United Semi broke ground in March, 2015. We achieved cleanroom readiness and equipment move-in within a year, and pilot run verification to mass production in only 8 months. With United Semi being able to leverage UMC’s technology expertise and over 35 years of proven manufacturing experience, we believe this new fab is the best choice for IC designers in China and worldwide who wish to manufacture their products locally in order to serve China’s vast electronics market, while also mitigating geographic risk. We are excited for the future of United Semi as today’s grand opening kicks off the next growth stage for UMC.”

United Semi is a 3-way joint venture foundry company between UMC, Xiamen Municipal People’s Government and Fujian Electronics & Information Group. Its fab, Fab 12X, is southern China’s first 300mm foundry facility. The fab will utilize UMC’s mass production 55nm and 40nm technologies, with a maximum design capacity of 50,000 wafers per month. The main advantage for choosing Xiamen as the fab location is its short distance from Taiwan, allowing seamless support from UMC’s Taiwan headquarters. Furthermore, Xiamen has a well-established infrastructure to supply ample local engineering talent and logistical support. United Semi complements UMC’s Hejian fab in Suzhou, China, which provides 8” foundry services for local and international customers.

Third Quarter 2016 Financial Results

• Revenue was NT$38.16 billion, up 3.2% quarterly from NT$37 billion in 2Q16 and an increase of 8.1% YoY from NT$35.32 billion in 3Q15. 3Q16 consolidated gross margin was 21.8%.
• Earnings per ordinary share for the quarter was NT$0.24. Earnings per ADS was US$0.038. The basic weighted average number of outstanding shares in 3Q16 was 12,208,239,978, compared with 12,334,888,329 shares in 2Q16 and 12,524,504,594 shares in 3Q15. The

Mr. Po-Wen Yen, CEO of UMC, said, “In the third quarter of 2016, UMC’s foundry revenue increased 3.2% sequentially to NT$38.05 billion. Foundry operating margin was 5.5% as wafer shipments grew to 1.57 million 8-inch equivalent wafers, with quarterly capacity utilization remaining at 89%. During the quarter, our 28nm business exceeded 20% of quarterly revenue for the first time, mainly driven by strong chip demand within the communication segment. Our new high in 28nm contribution reflects customers’ robust wafer demand at our 300mm flagship Fab 12A in Tainan, Taiwan, which has demonstrated mature technology status with consistent yields to reach economy of scale. To further expand our 28nm market share into new applications, UMC has announced the availability of Faraday's 12.5G SerDes PHY on our 28HPCu platform. The introduction of this IP highlights our ongoing efforts to introduce new features on UMC's 28nm process, including a wide range of high speed transfer interface IP for optical networking and other telecommunication applications. UMC also introduced Faraday’s PowerSlashTM fundamental IP cells, which can be incorporated into our 55nm ULP (ultra low-power) technology to create an optimized low power operating environment for wireless applications such as those used in applications for Internet of Things (IoT).”

CEO Yen continued, “Turning our attention to the fourth quarter, we anticipate a flat outlook. We expect our Fab 12X in Xiamen, China to enter production for 40/55nm products to address the strong demand in China’s chip market. The production of Fab 12X signifies an important milestone as we enter China’s high growth IC supply chain to realize new market opportunities. Fab 12X’s location in Xiamen serves as an ideal manufacturing location for customers seeking to diversify their 12” manufacturing needs. We look forward to a successfully ramping production of our 12" Xiamen fab, which will strengthen UMC's global presence in the semiconductor industry. Fab 12X will continue to follow UMC’s core values and protocols in sustainable semiconductor manufacturing, which have been implemented throughout UMC’s global fabs. Through our green manufacturing, we hope to set positive industry examples through concrete actions in order to combat global warming, enhance resource conservation and save energy. UMC’s selection as a DJSI Global Component for the ninth consecutive year highlights our active participation in environment protection, community service and sustainable manufacturing practices, which reflects our commitment to attain higher corporate social responsibility goals.”

Fourth Quarter of 2016 Outlook & Guidance

Quarter-over-Quarter Guidance:

Wafer Shipments: To increase by approximately 5%
ASP in NTD: To decrease by approximately 5%
Profitability: Gross profit margin will be in the low 20% range
Foundry Segment Capacity Utilization: Approximately 90%
2016 CAPEX for Foundry Segment: US$2.2bn
Recent Developments / Announcements

TAIPEI, Taiwan--(BUSINESS WIRE)--

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC”), today reported unaudited net sales for the month of August 2016.

Revenues for August 2016

Period   2016   2015   Y/Y Change   Y/Y (%)
August   12,933,096   12,190,856   +742,240   +6.09%
Jan.-Aug.   96,829,098   100,555,983   -3,726,885   -3.71%
(*) All figures in thousands of New Taiwan Dollars (NT$), except for percentages.

(**) All figures are consolidated

HSINCHU, Taiwan--(BUSINESS WIRE)--United Microelectronics Corporation (NYSE:UMC; TWSE:2303) ("UMC"), a leading global semiconductor foundry, and dedicated MEMS foundry Asia Pacific Microsystems, Inc. (APM), today announced a collaboration to provide enhanced MEMS manufacturing services for mutual customers. UMC will leverage its 8” and 12” production capabilities with APM’s 6” fab and extensive MEMS know-how and prototyping experience to provide chip designers with a flexible and scalable end-to-end MEMS manufacturing solution.

“UMC has been highly successful in producing MEMS products for microphone, accelerometer and environmental sensor applications,” said S.C. Chien, senior vice president of Corporate Marketing division at UMC. “Partnering with APM allows us to broaden our MEMS addressable market to serve a wider range of customers targeting the growing Internet-of-Things (IoT) sector, such as system companies, module providers and designers of new MEMS chips. This alliance will also provide customers with greater working model flexibility, as APM can provide full turnkey service, MEMS prototyping and small volume manufacturing, while UMC delivers process porting capability for mainstream, volume production MEMS products that are ready to migrate to more productive and cost effective 8” manufacturing. Moreover, customers can combine their MEMS modules with UMC’s advanced 12” CMOS fab processes to introduce state-of-the-art MEMS features within an ASIC design.”

The emerging IoT era is driving the rapid growth of MEMS sensors and actuators within today’s smart devices. Different from logic IC chips, MEMS devices focus on using mechanical, electrical, and optical microstructures within microchips to facilitate a non-electrical interaction or response with the environment. MEMS used in today’s automotive, consumer electronics, data communication and biomedical industry face a common issue, in that design development and implementation is unexpectedly complicated and highly time-consuming. The joint effort of UMC and APM’s engineering teams will help shorten the initial MEMS development cycle and provide ample, scalable production capacity with competitive manufacturing efficiency to successfully and rapidly commercialize MEMS chips for foundry customers.

K.H. Jao, president of APM said, “APM brings over 15 years of MEMS experience in design, manufacturing and packaging to our partnership with UMC. Our flexible process capability and process module blocks address different customized chip requirements including sensor, actuator and microstructure, which enable customers to streamline their unique MEMS IC designs to market. We are excited to cooperate with UMC, and believe the synergies created not only by our two companies’ complementary services, but also by our close proximity in Hsinchu to UMC and numerous semiconductor suppliers, MEMS packaging & testing providers, will provide unmatched speed and supply chain advantages to MEMS customers worldwide.”

Second Quarter 2016 Financial Results

• Consolidated revenue was NT$37.00 billion, up 7.5% quarterly from NT$34.40 billion in 1Q16 and down 2.7% YoY from NT$38.01 billion in 2Q15. 2Q16 consolidated gross margin was 22.4%.
• Earnings per ordinary share for the quarter was NT$0.21 vs last years same quarter of NT$0.37.

Mr. Po-Wen Yen, CEO of UMC, said “In the second quarter of 2016, our foundry revenue increased 7.5% sequentially to NT$36.87 billion. We achieved foundry operating margin of 7.1%. Overall capacity utilization was 89%, bringing wafer shipments to 1.51 million 8-inch equivalent wafers. As the latest semi inventory cycle came to an end, 2Q16 reflected a return to semiconductor seasonality as chip demand improved. As a result, UMC experienced a surge in 28nm business, especially from communication customers. Many of the chips found in the newly released smartphone models have adopted our 28nm solutions, which helped trigger our 28nm revenue growth that began in 2Q16. For the consumer segment, UMC has also delivered other 28nm volume production ICs in areas such as DTV and set top box to help further boost 28nm utilization. The widespread adoption of our 28nm process technologies underscores the technology readiness and value that UMC provides to the IC industry.”

CEO Yen continued, “Looking into next quarter, we anticipate a slight increase to our overall foundry revenue, with 28nm revenue contribution expected to reach 20% or more. Our 40nm demand is also expected to remain stable. As our advanced node performance remains on track, we do anticipate a decline in 8” demand due to changes in customer mix and market dynamics. While we continue to expand additional 28nm capacity at Fab 12A in Tainan, UMC’s 12” Xiamen operations, 12X, is set to begin pilot production. As such, UMC will accrue higher quarterly depreciation and operating expenses. However, we expect our high 28nm utilization rate and the revenue recognition when 12X enters production at year’s end to somewhat offset a portion of the accrued depreciation and operating expense. We foresee 12X to aggressively capitalize on the fast growing Chinese semiconductor market and provide our customers with a viable solution for local foundry services in China. We believe 12X will play a key role as a critical manufacturing base as it ramps to economy of scale”

TAIPEI, Taiwan--(BUSINESS WIRE)--

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC”), today reported unaudited net sales for the month of June 2016.

Revenues for June 2016

Period   2016   2015   Y/Y Change   Y/Y (%)
June   13,526,887   12,059,987   +1,466,900   +12.16%
Jan.-June   71,400,596   75,661,198   -4,260,602   -5.63%
(*) All figures in thousands of New Taiwan Dollars (NT$), except for percentages.

TAIPEI, Taiwan--(BUSINESS WIRE)--

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC”), today reported unaudited net sales for the month of May 2016.

Revenues for May 2016

 Period              2016              2015         Y/Y Change        Y/Y (%)

May              12,705,227   12,931,054     -225,827          -1.75%
Jan.-May       57,873,709   63,601,211   5,727,502          -9.01%

(*) All figures in thousands of New Taiwan Dollars (NT$), except for percentages

TAIPEI, Taiwan--(BUSINESS WIRE)--

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC”), today reported unaudited net sales for the month of April 2016.

The company's 2015 annual report on Form 20-F, which was filed with the US Securities and Exchange Commission on April 18, 2016, is also now available online at

Revenues for April 2016

Period   2016   2015   Y/Y Change   Y/Y (%)
April   10,764,403   13,020,513   -2,256,110   -17.33%
Jan.-Apr.   45,168,482   50,670,157   -5,501,675   -10.86%
(*) All figures in thousands of New Taiwan Dollars (NT$), except for percentages.

First Quarter 2016 Financial Results

• First quarter consolidated revenue was NT$34.40 billion, up 1.6% sequentially from NT$33.85 billion in 4Q15 and down 8.6% YoY from NT$37.65 billion in 1Q15. 1Q16 consolidated gross margin was 14.6%.
• Net income attributable to the stockholders of the parent was NT$0.21 billion, with earnings per ordinary share of NT$0.02.

Mr. Po-Wen Yen, CEO of UMC, said “In the first quarter of 2016, our foundry revenue grew 2.1% sequentially to NT$34.31 billion. Foundry operating margin was 0.5%. Overall capacity utilization was 82%, bringing wafer shipments to 1.43 million 8-inch equivalent wafers. Towards the end of 2015, we saw signs that the inventory cycle was hitting bottom. Since then, the inventory correction has completed its course, with normal seasonal patterns resuming for 1H16. On February 6, just as Chinese New Year was beginning, Southern Taiwan experienced a severe earthquake that impacted UMC’s 300mm Fab 12A in Tainan Science Park. However, due to UMC’s stringent safety protocols, efficient execution of our earthquake recovery SOP and dedicated personnel, we returned to normal production in just a few working days to sustain 1Q16 revenues within our original guidance. In compliance with our ISO 22301 certification, UMC’s business continuity practices ensured accountability on property damage as well as the safety & health of our employees. We will continue to ensure a state of readiness by implementing disaster protocols that introduce business continuity elements within our foundry operations.”

CEO Yen continued, “UMC recently announced an agreement with ARM to develop multiple physical IP platforms to accelerate customers’ implementation of ARM Artisan IP on our 55nm ultra low power, 40nm and 28nm technologies for mobile, embedded and IoT chip designs. The partnership will further strengthen UMC’s IP portfolio to deliver optimized design support solutions across a broad range of applications. Looking into 2Q16, new product launches in wireless devices will serve as a positive catalyst, leading to stronger end market demand. As a result, we foresee a significant increase in 28nm shipments for the second quarter. We also expect to receive many new 28nm tape outs during 2016 that include mobile and consumer applications, which will further diversify our 28nm product pipeline and contribute to 28nm revenue growth. While we continue to work towards business growth and market share expansion, the Board of Directors recently proposed to distribute a NT$0.55 per share cash dividend to achieve a balance between shareholders’ interests and company expansion. We

HSINCHU, Taiwan, Nov. 17, 2015 /PRNewswire/ -- United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC"), a leading global semiconductor foundry, today announced that revenue from its manufacture of semiconductors used in automotive applications has doubled (YoY) from 2014 to 2015. Full-year 2015 revenue for automotive ICs at UMC is expected to be hundreds of millions of US dollars. The explosive growth has primarily been fueled by top-tier customers migrating devices from consumer grade products to more stringent grade 1 and grade 0 semiconductors that are used for critical automotive functions, as well as increased demand from IDM and fabless auto semiconductor companies.

"As customer gain increased confidence in UMC's automotive manufacturing capabilities, we are committed to continuously improving and enhancing our foundry automotive solutions," said Po Wen Yen, CEO of UMC. "With our comprehensive UMC Auto^SM technology platform consisting of AEC-Q100 qualified technology solutions and robust manufacturing that meets rigorous ISO TS-16949 automotive quality standards, UMC is well-positioned to further enable auto chip designers to take advantage of the increasing silicon content in vehicles."

UMC manufactures semiconductors used in automotive applications for customers that include Japan-based suppliers such as Shindengen, TDK Corporation, New Japan Radio and Ricoh Electronic Devices, as well as other global companies in the U.S. and Europe. Products include a wide range of applications ranging from infotainment, heads-up display (HUD), advanced driver assistance systems (ADAS) and millimeter wave radar to essential engine, drivetrain, power management and navigation functions.

UMC has a successful history as an automotive IC supplier, being the first foundry to receive ISO 22301 certification for business continuity management and implementing a comprehensive "Automotive Service Package" that incorporates zero-defect practices within its manufacturing procedures. In addition, UMC is developing certified design models, IP and Foundry Design Kits specific to the UMC Auto platform in order to fulfill the increasing pace of evolvement of the auto industry supply chain. Automotive ICs manufactured at UMC have been widely adopted by the world's most well-known carmakers in Japan, Europe, Asia and the United States.

Revenue was NT$35.32 billion vs. NT$35.21 billion from last years same quarter.

Net income attributable to the stockholders of the parent was NT$1.71 billion, with earnings per ordinary share of NT$0.14. vs. last years same quarter of NT$0.23.

Po-Wen Yen, CEO of UMC, said "In the third quarter of 2015, our foundry segment posted revenue ofNT$35.08 billion, with gross margin at 20.3%. Wafer shipments totaled 1.47 million 8-inch equivalent wafers, leading to an overall capacity utilization rate of 89%. Our 40nm revenue contribution grew to 25% of sales, driven by demand strength in the communication and consumer segments. Our 8" fab utilization maintained above 95%, reflecting stable demand for logic and specialty applications. To better take advantage of the opportunities within mature nodes, UMC will leverage the advancements made in proven technologies to help customers compete in the IoT market. We recently announced volume production for touch controller ICs based on UMC's 0.11um embedded flash process that uses the most aggressive aluminum metal design rules to strengthen customers' product and market competitiveness through lower die cost. In terms of corporate sustainability, in the third quarter 2015, UMC was selected as a DJSI global component for the eighth consecutive year."

CEO Yen continued, "Although the continuing IC inventory adjustment will dampen fourth quarter wafer shipments, UMC continues on the path towards long-term growth. While Moore's Law continues, 28nm remains a strong and long-lasting node, with many applications migrating to this geometry. Throughout 2015, UMC engineers and Fab12A have worked tirelessly to bring several new 28nm product tape-outs into volume production. At the same time, we have also received multiple customer inquiries requesting optimized, cost-effective solutions derived from our fundamental 28nm High-K Metal Gate process. UMC is working to bring a timely conversion of new 28nm requirements into production, which will strengthen our business. In addition, UMC is also leveraging mature node technology development to deliver specialty technology platforms addressing customer applications, further diversifying our product mix. Going forward, UMC will continue to drive process innovations across leading and legacy technologies, as well as proactively expanding worldwide manufacturing services to support our growth in the IC industry."

Fourth Quarter of 2015 Outlook & Guidance

Quarter-over-Quarter Guidance:

• Wafer Shipments: To decrease by less than 5%
• ASP in US$: To decrease by approximately 1%
• Profitability: Gross profit margin will be in the high teens % range
• Foundry Segment Capacity Utilization: Approximately low 80% range
• 2015 CAPEX for Foundry Segment: US$1.8bn

TAIPEI, Taiwan, Oct. 8, 2015 /PRNewswire/ -- United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC"), today reported unaudited net sales for the month of September 2015.

Revenues for September 2015

(*) All figures in thousands of New Taiwan Dollars (NT$), except for percentages.

(**) All figures are consolidated

TAIPEI, Taiwan, Sept. 9, 2015 /PRNewswire/ -- United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC"), today reported unaudited net sales for the month of August 2015.

Revenues for August 2015

(*) All figures in thousands of New Taiwan Dollars (NT$), except for percentages.
(**) All figures are consolidated

TAIPEI, Taiwan, July 29, 2015 /PRNewswire/ -- United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC"), a leading global semiconductor foundry, today issued an update on its guidance for the third quarter of 2015.

Based on its 3Q 2015 outlook, UMC expects foundry segment gross profit margin to be in the high-teens percentage range, compared to its previously stated guidance of mid-teens percentage range in the company's earlier 2Q 2015 earnings announcement.

HSINCHU, Taiwan, July 20, 2015 /PRNewswire/ -- United Microelectronics Corporation (NYSE:UMC;TWSE: 2303) ("UMC"), a leading global semiconductor foundry, today announced that it has entered volume production for the Through-Silicon-Via (TSV) technology used on the AMD Radeon™ R9 Fury X, the flagship GPU in the recently announced Radeon™ R 300 Series of graphics cards. The AMD Radeon™ R9 Fury X GPU utilizes UMC's TSV process technology and die-stacking to fuse HBM DRAM with AMD's GPU on a silicon interposer, enabling the GPU to deliver unmatched memory bandwidth of 4096-bit and quadruple the performance-per-watt over the current GDDR5 industry standard.

"AMD has a successful history of delivering cutting-edge GPU products to market," said S.C. Chien, vice president of Corporate Marketing and co-chair of the TSV committee at UMC. "This volume production milestone is the culmination of UMC's close TSV collaboration with AMD, and we are happy to bring the performance benefits of this technology to help power their new generation of GPU products. We look forward to continuing this fruitful partnership with AMD for years to come."

Bryan Black, senior fellow at AMD said, "UMC's long track record of bringing innovative technologies from the R&D stage to volume production for customer products was a compelling reason for us to engage with them as our foundry for the interposer and associated TSV technology. They have again proven their ability to execute successfully with TSV on our latest high-performance GPU, and we are pleased to have them as a valuable supply-chain partner for our exciting new line of Radeon products."

AMD's GPU and stacked HBM dies are placed on top of UMC's interposer that employs a TSV process. Through a CMOS redistribution layer and advanced micro-bumping, these ICs communicate with each other on the interposer, thus enabling the cutting-edge performance and form factor of AMD's Radeon™ R9 Fury X. AMD's silicon interposer with TSV is manufactured at UMC's specialty 300mm Fab 12i in Singapore.

TAIPEI, Taiwan, July 9, 2015 /PRNewswire/ -- United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC"), today reported unaudited net sales for the month of June 2015.

HSINCHU, Taiwan, May 26, 2015 /PRNewswire/ --United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC"), a leading global semiconductor foundry, today unveiled its UMC Auto^SM technology platform to target IC companies designing chips for automotive applications. UMC Auto is a comprehensive platform that consists of a broad portfolio of automotive AEC-Q100 qualified technology solutions ranging from 0.5um to 28nm nodes, backed by robust manufacturing processes that comply with rigorous ISO TS-16949 automotive quality standards for all UMC fabs. In addition, UMC is selectively developing certified design models, IP, and Foundry Design Kits specific to the UMC Auto platform in order to fulfill the increasing pace of evolvement of the auto industry supply chain, helping chip designers capture new market opportunities as Internet of Things (IoT) and increased use of sensors permeate into auto applications.

"With the rapid rise in silicon content within each new vehicle, many believe the automotive IC sector will experience the highest CAGR compared with other semiconductor segments," said Po Wen Yen, CEO of UMC. "UMC has a successful history as an automotive IC supplier, being the first foundry to receive ISO 22301 certification for our business continuity management system and implementing a comprehensive "Automotive Service Package" that incorporates zero-defect practices within our manufacturing procedures. We look forward to enabling more customers to realize the opportunities within the automotive IC market through our innovative UMC Auto solutions platform."

UMC is currently producing various key electronic components used in vehicles, including Advanced Driver Assistance Systems (ADAS), safety, body control, infotainment and under-hood applications. These ICs manufactured at UMC have been widely adopted by the world's most well-known carmakers in Japan, Europe, Asia and the United States.

UMC's auto IC manufacturing lines meet or exceed the automotive industry's most stringent quality and reliability criteria, including the highest rated AEC-Q100 Grade-0 certification for its fab manufacturing. UMC was also the first foundry in Taiwan to provide IC manufacturing services that comply with ISO 15408 Common Criteria, joining an elite 1% of all companies and products worldwide to be certified ISO 15408 EAL6 or above. This security qualification signifies UMC's ability to provide rigorous security protection during the manufacturing process, which is required by the majority of IC products deployed in sensitive applications that need to be highly secure such as automotive sensors for door locks, navigation, etc.

HSINCHU, Taiwan, March 12, 2015 /PRNewswire/ -- Faraday Technology Corporation (3035.TW), a leading fabless ASIC/SoC and IP provider, and United Microelectronics Corporation (UMC) (NYSE: UMC, TWSE: 2303), a leading global semiconductor foundry, today announced the availability of a complete set of low power consumption fundamental IPs developed for UMC's 55nm Low Power (LP) embedded Flash process. These IPs are designed to simultaneously meet both low-power and high-density requirements to satisfy the demands of a broad range of applications including IoT (Internet of Things) and wearable products.

Low-power is prioritized for always-on devices in order to extend battery life. To fulfill the requirement, Faraday's memory compilers greatly reduce power consumption in the standby mode by up to 70% through optimization of the low leakage memory periphery. The robust I/O cells are available for both digital and analog interfaces, with a high voltage I/O cell option available that is especially compatible with a 5.0V interface. These IO cells are designed by using HVT core device to reduce leakage power. Furthermore, the IP suite also includes a new low-power USB 2.0 OTG PHY with HVT core device, which significantly reduces power consumption in the idle mode by up to 65% over traditional USB 2.0 OTG PHY.

"Faraday has been cooperating closely with UMC to build robust platform solutions for power-sensitive applications spanning from 0.18um to 0.11um, and now on 55nm eFlash," said Jensen Yen, associate vice president of marketing and spokesperson at Faraday Technology. "Our IP expertise and high familiarity with UMC processes led to these newly-launched IPs with UMC's HVT core devices that significantly reduce power consumption, greatly catering to the growing IoT market. With this important milestone and our continuous collaboration with UMC, we are confident that our mutual customers will soon be able to seize new business opportunities in the IoT market."

"UMC continues to broaden our strong IP portfolio to bring more low-power benefits to IoT chip designers," said Shih Chin Lin, senior director of IP Development & Design Support Division. "Our 55nmLP SST embedded flash technology is a widely adopted, mass production process that is supported by strong IP and design resources. We are happy to add Faraday's IP as part of our 55nm platform resources to help customers broaden their opportunities in power-sensitive applications. We look forward to working with them to deliver future IP solutions in the future."

Faraday's complete IP set on 55nmLP SST embedded Flash process includes the standard cell libraries, memory compilers, diffusion programmable ROM, Via ROM, I/O cells, and low power USB 2.0 OTG PHY. The 3-series cell libraries, 7-track miniLib™, 8-track generic libraries, and 12-track UHS-Lib™ are all equipped with the low-power management of PSK cells and multi-Vt options.

Fourth Quarter 2014 Financial Results

• Revenue was NT$37.24 billion, a 5.7% quarterly increase from NT$35.21 billion in 3Q14 and a 21.2% annual increase from NT$30.72 billion in 4Q13.
• Net income attributable to the stockholders of the parent was NT$4.56 billion, with earnings per ordinary share of NT$0.36 vs. last years same quarter of NT$0.06.

Mr. Po-Wen Yen, CEO of UMC, said, "In the fourth quarter, foundry revenue grew 3.7% sequentially to NT$34.74 billion. This figure includes a one-time 40nm licensing fee from Fujitsu, lifting gross and operating margins to 30.2% and 14.6%, respectively. Overall capacity utilization rate remained at 93%, bringing shipments to 1.43 million 8-inch equivalent wafers. Our 28nm technologies represented 7% of our foundry revenue in 4Q14. Shipments from our 28nm gate-last, High-K Metal Gate process exceeded that of 28nm poly-SiON wafers. Excluding the Fujitsu 40nm licensing fee, UMC's 2014 foundry operating profit grew 74% from the previous year. This rise in profitability was mainly driven by double-digit percentage growth in wafer shipments and partly due to the rapid production ramp of 28nm, which accounted for 3% of total 2014 revenue. Our collaborative technology efforts with our partners will enable UMC to deliver additional manufacturing solutions to fulfill new product specs, strengthening our position in the IC supply chain to take advantage of the continued momentum in market demand."

CEO Yen continued, "The Taiwan government authorities recently approved UMC's application to invest in a 12" joint venture fab in Xiamen, China. This investment will create opportunities for UMC to benefit from China's enormous chip requirements by bringing us closer to the Chinese semiconductor supply chain. The cooperation highlights UMC's differentiated approach of global expansion, proven through Singapore's Fab12i and SuZhou's Fab8N successfully achieving economy of scale while mitigating customer risks via geographic diversification. While we expand production sites worldwide, we are also focusing on continuous organic growth by deploying additional capacity at our Tainan site. As such, we will budget 2015 CAPEX for approximately US$1.8 billion. Our 2015 CAPEX illustrates our strong commitment to meet customers' requirements and gain additional market share through efficient execution and strategic alliances. UMC's global expansion efforts, driven by manufacturing excellence, will strengthen customer services with increased operating scale to enhance corporate financial earnings and deliver long-term returns to our shareholders."

First Quarter of 2015 Outlook & Guidance

Quarter-over-Quarter Guidance:

• Foundry Segment Wafer Shipments: To increase by approximately 2-3%
• Foundry Segment ASP in US$: To increase by approximately 3%
• Foundry Segment Profitability: Gross profit margin will be in the mid-20 percentage range
• Foundry Segment Capacity Utilization: Approximately 90%
• 2015 CAPEX for Foundry Segment: US$1.8bn
• Guidance to New Business Segment: Revenue to be approximately NT$2bn and operating loss to be approximately NT$170mn

Third Quarter 2014 Financial Results

• Revenue: NT$35.21 billion (US$1.16 billion) up 5.4%
• Earnings per share: NT$0.23; earnings per ADS: US$0.038 vs. last years NT$0.28 and US$0.046

Mr. Po-Wen Yen, CEO of UMC, said, "In the third quarter, our foundry revenue grew 2.9% sequentially to NT$33.51 billion. Foundry operating margin was 8.8%. Overall capacity utilization reached 93%, led by increasing demand from communication products such as handsets and tablet devices, bringing wafer shipments to 1.462 million 8-inch equivalent wafers. Moreover, 24% of our revenue came from 40nm, while 28nm contribution rose from 1% to 3% quarter-over-quarter, demonstrating the sustained traction of UMC's leading edge geometries. Our 28nm yield progress for poly-SiON & gate-last, High-K Metal Gate products has continued to improve, which will drive significant production ramp during the fourth quarter. This progress will help attract multiple waves of new customers and products to strengthen UMC's 28nm growth and further diversify our customer base in advanced nodes."

CEO Yen continued, "UMC has collaborated with Asian regional partners for capacity deployment plans with the intention to expand our operating scale, strengthen efficiency and capture additional market share. This cooperative model will establish regional manufacturing centers that will build economy of scale to increase productivity and serve local markets, while helping UMC's global customers mitigate geographical risks in the supply chain. UMC's recent announcement with Fujitsu Semiconductor and our joint venture in Xiamen illustrates these collaborative efforts. Our foundry alliance with Fujitsu includes a 40nm licensing agreement which will enable UMC to better serve the Japanese local market, including automotive, industrial, consumer electronics, and other related sectors. Recently, we also announced an investment venture with Xiamen Municipal People's Government and FuJian Electronics & Information Group to establish a 12" fab in China for 40nm and 55nm foundry services, subject to approval by Taiwan government authorities. Meanwhile, UMC's dedicated engineering team continues to work on 10nm and 14nm advanced technologies in our Taiwan headquarters to ensure the company's next stage of growth. Our differentiated approach via global expansion, combined with the leadership in advanced manufacturing technologies, will serve as the engine that drives UMC's growth to enhance corporate profitability and provide long-term returns for our shareholders."

HSINCHU, Taiwan, Oct. 9, 2014 /PRNewswire/ -- The Board of Directors of United Microelectronics Corporation (UMC) (NYSE: UMC; TWSE: 2303), a leading global semiconductor foundry, today resolved to participate in a 3-way agreement for a joint venture company focused on 12" wafer foundry services with Xiamen Municipal People's Government and FuJian Electronics & Information Group. Based on the agreement, UMC will submit an investment application with ROC government authorities for approval to invest in the joint venture established by Xiamen Municipal People's Government and FuJian Electronics & Information Group. The joint venture will be based in Xiamen, China. UMC anticipates its investment could reach approximately US$1.35 billion in the next five years, with funding starting in 2015 deployed in installments based on the progress of the joint venture. UMC's participation will comply with ROC rules and regulations and will be subject to review for approval by the Taiwan government authorities.

Po-Wen Yen, CEO of UMC, said, "China's domestic semiconductor market has become the world's largest. Current levels of domestic semiconductor demand far outweigh China's production supply, with semiconductor import revenue surpassing that of crude oil. As the semiconductor industry is closely monitored by the Beijing government, China has implemented national policies to expedite the development of its domestic IC design and semiconductor manufacturing through a multi-prong approach to support and expand its IC industry. We believe our decision to establish local manufacturing is our best approach to benefit from this substantial China growth and to gain additional foundry opportunities worldwide. The joint venture not only provides our customers the option to source IC components that are made in China, but also locates us within the Chinese market to enhance UMC's service and support for local fabless customers. We anticipate the joint venture can propel the next round of UMC's foundry business growth."

CEO Yen continued, "The benefits for choosing Xiamen for the fab location are numerous. Xiamen is one of the five cities designated by China as a municipality with independent planning status. Xiamen boasts excellent living standards and high quality of life; it is only a short distance from Taiwan, with similar culture, language and climate, allowing seamless support from UMC's headquarters in Taiwan. Furthermore, Xiamen has a well-established infrastructure to supply sufficient local engineering talent to establish a world-class foundry base for the company."

UMC currently owns an 86.88% stake in HeJian Technology (Suzhou) Co., Ltd. which mainly provides 8" foundry services for Asia-Pacific and mainland Chinese customers. Today's announced joint venture will manufacture 12" wafers, initially offering 55nm and 40nm technologies. Capacity will reach 50K per month, with total investments targeted at US$6.2 billion. In addition to expanding UMC's manufacturing scale, increasing global foundry market share and stimulating revenue growth, this joint venture will better fulfill customers' demand, process technology, and integration requirements to achieve the highest synergies for UMC group.

Second Quarter 2014 Financial Results

• Revenue increased 13.2% QoQ to NT$35.87 billion from NT$31.69 billion in 1Q14, and increased 12.4% YoY from NT$31.91 billion in 2Q13.
• Earnings per ADS were US$0.047 vs. last years quarter of US$0.75

Mr. Po-Wen Yen, CEO of UMC, said "In the second quarter of 2014, UMC recorded NT$32.57 billion in revenue from the foundry segment, with operating margin from foundry operations of 10.2%. Wafer shipments reached 1.426 million 8-inch equivalent wafers. Our 28nm business represented 1% of revenue, while 40nm accounted for 21%."

CEO Yen added, "Second quarter foundry revenue grew 13.4% sequentially, fueled by strong communication segment demand that lifted capacity utilization to 90%. Market conditions also reflected a turnaround, with rising demand for portable computing devices helping to drive our 28nm shipments. We project continued 28nm revenue contribution growth in 3Q14 as a result of the sustained demand for mobile and tablet computing. We are optimistic in the long term that our 28nm production ramp will strengthen our overall product mix and generate abundant opportunities for UMC to win additional foundry market share. For other technologies, we have strengthened the IP portfolio for our 55nm LP platform to address low power and wireless applications by offering Kilopass' Gusto and Cypress's SONOS embedded flash memories. These enhanced IP solutions will further diversify our manufacturing offerings to fulfill a broader range of specialty technology products on our proven and versatile 55LP platform. Designers in wearable and Internet of Things (IoT) applications have already realized product tape-outs using our 55LP technologies and IP."

CEO Yen continued, "We expect the semiconductor demand strength to continue into the third quarter of 2014. For 28nm momentum, our activities have increased, including IP verifications, customer tape outs on standalone products and product reliability qualifications. These 28nm customer collaborations will provide further traction heading into the second half of 2014. UMC will continue to broaden our customer base and penetrate additional high growth areas to expand customer adoption. We remain confident for the long term, as our sound business strategies, solid engineering execution and strong commitment to customer service will help ensure UMC's future business growth and deliver enhanced profitability to raise shareholder value."

Fourth Quarter 2013 Financial Results

• Revenue was NT$30.72 billion vs. last years NT$28,854
• Eearnings per ordinary share of NT$0.06 vs. last years NT$0.06

Mr. Po-Wen Yen, CEO of UMC, said, "In the fourth quarter of 2013, UMC recorded NT$28.58 billion in revenue from the foundry segment, with operating margin from foundry operations of 2.7%. Wafer shipments reached 1.236 million 8-inch equivalent wafers, bringing overall capacity utilization to 79%."

CEO Yen added, "During the fourth quarter of 2013, our 40nm and below business represented 24% of UMC sales. This continued growth demonstrates the strength of our 40nm platform, which has been adopted by numerous customers from a wide range of diversified markets. We also continue to achieve new milestones for our specialty technologies, recently surpassing 15 million IC shipments for our 55nm embedded high-voltage process in just one year. Our engineering teams have further miniaturized the SRAM cell for this process to power today's highest resolution smartphones, continuously pushing the boundaries of specialty technologies in 55nm and beyond. For 28nm, we have made significant strides on our 28nm status to become a competitive foundry supplier, bolstered by yield improvement that has helped us secure additional design wins. To further strengthen our 28nm design platform, we now offer ARM Artisan physical IP for our 28HLP, UMC's 28nm high performance, low power process that optimally balances die size, speed and leakage performance to target low power applications. This collaboration adds ARM's POP IP core hardening acceleration technology to shorten time-to-market through proven, rigorous silicon validation for our customers designing into 28HLP."

CEO Yen continued, "For the first quarter, we anticipate softer business due to normal early-year seasonality. In 2014, we are optimistic that UMC will benefit from product design wins across a broad spectrum of the semiconductor industry. We will leverage our manufacturing excellence and deploy capacity expansion not only for 28nm HK/MG lines, but also for upgrades at our 8" and 12" fabs to fulfill emerging requirements. As such, UMC's CAPEX for 2014 will be approximately US$1.1 billion to US$1.3 billion. This investment will help UMC to expand economies of scale to drive down manufacturing costs and achieve a prolonged structural increase in productivity. These efforts will propel UMC's market share growth in leading-edge technologies and further expand our presence in the specialty segment, strengthening our position in the foundry industry."

Third Quarter 2013 Financial Results

• Revenue was NT$33.41 billion, with gross margin at 22.0% and operating margin at 7.2%. Net income attributable to the stockholders of the parent was NT$3.48 billion, with earnings per ordinary share of NT$0.28.
• Earnings per ADS was US$0.047 vs. last years US$0.020

CEO Yen added, "During the last couple of quarters, the engineering group has focused relentlessly on yield enhancement activities to improve our 28nm manufacturing technologies. These accumulated efforts enabled 28nm Poly SiON and HK/MG yields to accelerate its climb. This accomplishment allows our pre-production customers to shift closer towards volume production, and concurrently shortens the time required for new customer adoption of UMC's 28nm platform. In the upcoming months, we look forward to further optimizing 28nm yield levels to move more customers towards volume production. In terms of specialty technologies, UMC continues to lead the foundry sector in high-voltage (HV) manufacturing processes used for applications such as driver ICs in mobile devices. Our unique HV technologies increase our customers' competitiveness so they may further gain market share in today's growing display industry."

CEO Yen continued, "For the fourth quarter, we have seen a decline in wafer demand. Primary factors that led to a weakened outlook stemmed from seasonal correction, supply chain inventory control and the uncertainties culminating in the macro economy. We firmly believe UMC is well positioned to benefit from the robust 28nm demand in the mobile industry for the next several years. To secure long-term foundry growth, UMC continues to deploy our advanced logic/mixed mode and specialty derivative technology offerings. UMC's diversified product portfolio will enhance our manufacturing flexibilities to accommodate additional customer production requirements, broaden our business scale and solidify our position as a one of the leading players in the foundry industry."

Fourth Quarter of 2013 Outlook & Guidance

Quarter-over-Quarter Guidance:

• Foundry Segment Wafer Shipments: 8-10% decrease
• Foundry Segment ASP in US$: Will decrease by approximately 2%
• Foundry Segment Profitability: Operating margin to be approximately break-even
• Foundry Segment Capacity Utilization: Mid-70% range
• Guidance to New Business Segment: Revenue to be approximately NT$2.2bn and operating loss to be approximatelyNT$550m

Second quarter 2013 Financial Results

Revenue was NT$31.91 billion, with gross margin at 19.4% and operating margin at 3.6%. Net income attributable to the stockholders of the parent was NT$1.81 billion, with earnings per ordinary share of NT$0.15.

Mr. Po-Wen Yen, CEO of UMC, said, "UMC's second quarter 2013 operating results exceeded expectations. The foundry segment recorded NT$30.33 billion in revenues, with profit margin from foundry operations of 5.3%. Wafer shipments reached 1.307 million 8-inch equivalent wafers, bringing overall capacity utilization to 85%. Revenue contribution from 40nm and below technologies grew from 18% in 1Q13 to 20% in 2Q13."

CEO Yen added, "As the industry advances to more cutting edge nodes, our customers expect to adopt new technologies for their upcoming advanced products. To satisfy their increasing reliance on leading-edge geometries, we have recently announced our participation in the IBM alliance for 10nm FinFET CMOS process technology. We are excited to team up with IBM and strongly believe the collaborative effort will help overcome a variety of research challenges to realize ground-breaking results that will better serve the industry's needs. UMC will offer our upcoming process platforms based upon IBM fundamental technology and develop derivative processes according to customer requirements."

CEO Yen continued, "With the arrival of the third quarter, we project sequential revenue growth to follow a better-than-seasonal second quarter in the foundry segment. In the mid-term, to perpetuate our leading position in the advanced specialty technology segment, UMC's R&D team continues to pull-in production milestones with enhanced process implementations to facilitate customer product deployment. UMC's comprehensive range of technologies enables customers from a wide array of industry segments to differentiate their products, thus helping UMC to expand its business scope, elevate overall competitiveness, and strengthen long term profitability."

First Quarter 2013 Financial Results

• Revenue: NT$27.78 billion (US$931.31 million)
• Net income attributable to the stockholders of the parent: NT$6.59 billion (US$221.02 million)
• Earnings per ordinary share for the quarter were NT$0.52. Earnings per ADS were US$0.087 vs. last years US$0.10

Mr. Po-Wen Yen, CEO of UMC, said "UMC's overall 1Q13 operating results exceeded expectations. The foundry segment posted revenues of NT$26.37 billion, profit margin from foundry operations was 4.1% and wafer shipments reached 1,125 thousand 8-inch equivalent wafers, bringing overall capacity utilization to 78%. Revenue contribution from 40nm and below technologies grew from 15% in 4Q12 to 18% in 1Q13. The New Business segment recorded NT$1.44 billion in revenue, with operating loss of NT$0.79 billion. Losses mainly came from the solar subsidiaries as competition intensified across the industry."

CEO Yen added, "As part of our long-term commitment to customers, we have continued to dedicate resources towards R&D and capacity expansion for 28nm and below technologies. We are also developing specialty technologies that cover a wide range of geometries to provide more comprehensive solutions, demonstrating our flexible approach to accommodate different customer business models. Recently, we jointly collaborated with a leading NOR flash solution provider, Spansion, to deliver a System-on-Chip (SoC) platform on UMC's high-performance 40nm process. Leveraging the core expertise of the R&D, we are committed to develop solid partnerships by offering flexible, cost effective and innovative technologies to customers in more diversified market segments."

CEO Yen continued, "Following several months of inventory correction in the semiconductor market, demand has stabilized. With increasing demand led by the communication sector, we anticipate 2Q foundry operating results to improve, with wafer shipments projected to exceed 10% growth. In the meantime, while we race ahead with R&D efforts and capacity expansion, management's priority is also focused on maintaining shareholders' interest. Considering the overall financial health and long term capital needs of the company, the Board of Directors has proposed for shareholders' approval a cash dividend payout of NT$0.40 per share, which constitutes about a 60% cash dividend payout ratio. Looking forward, we will sustain our efforts toward improving operating results solidifying UMC's profitability and maintaining business growth to maximize benefits to shareholders and customers."

TAIPEI, Sept. 7, 2012 /PRNewswire/ -- United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC"), today reported unaudited net sales for the month of August 2012 of $9.7 million vs $8.2 million in August 2011 a 19% increase year over year. 

HSINCHU, June 29, 2012 /PRNewswire-Asia/ -- United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC"), a leading global semiconductor foundry, today announced that it has licensed IBM technology to expedite the development of the foundry's next generation 20nm CMOS process with FinFET 3D transistors. Under the terms of the agreement, IBM will license its 20nm process design kit and FinFET technology to UMC so the foundry can use these technologies in order to accelerate the availability of these processes for UMC customers.  

Dr. IC Chen, vice president of Advanced Technology Development at UMC, said, "We are happy to engage with a recognized technology leader such as IBM for this technology advancement effort. UMC's position as a world-leading foundry involves timely introduction of leading-edge processes to enable next generation customer chip designs. Leveraging IBM's technology expertise to shorten our 20nm and FinFET R&D cycle will create a win-win situation for UMC and our customers."

This agreement between UMC and IBM is only inclusive of IBM's 20nm CMOS and FinFET. UMC's internally developed 20nm planar process will be aligned to IBM's design rules and process/device targets, while UMC's FinFET will be offered as a low-power technology enhancement option for mobile computing and communication products. Implementation will take place at the company's Tainan, Taiwan R&D site.

Fourth Quarter 2011 Results

The foundry business is highly capital intensive. Our development over the past three years has required significant investments. Additional expansion for the future generally will continue to require significant cash for acquisition of plant and equipment to support increased capacities.

We believe that our working capital, cash flow from operations and unused lines of credit are sufficient for our present requirements.

The company is currently losing money, but:  

"Significant revenue growth will drive 2Q to operating profitability"