UMC Reports Third Quarter 2012 Results

                    UMC Reports Third Quarter 2012 Results

3Q results in line with guidance; Revenue from leading edge 40nm and specialty
technologies continues to grow

PR Newswire

TAIPEI, Taiwan, Oct. 31, 2012

TAIPEI, Taiwan, Oct.31, 2012 /PRNewswire/ --

Third Quarter 2012 Overview[1]:

  oRevenue: increased 3.3% QoQ to NT$28.53 billion (US$973.22 million)
  oGross margin: 24%; operating margin: 12.7%
  oCapacity utilization: 84%
  oNet income: NT$2.42 billion (US$82.46 million)
  oEarnings per share: NT$0.19; earnings per ADS: US$0.032

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The
Company"), a leading global semiconductor foundry, today announced its
unconsolidated operating results for the third quarter of 2012.

Revenue was NT$28.53 billion, a 3.3% quarter-over-quarter increase from
NT$27.62 billion in 2Q12, and a 13.3% year-over-year increase from NT$25.19
billion in 3Q11. Gross margin was 24%, operating margin was 12.7%, net income
was NT$2.42 billion, and earnings per ordinary share were NT$ 0.19.

Dr. Shih-Wei Sun, CEO of UMC, said, "In 3Q 2012, both UMC's revenue and
operating profit continued to grow. Wafer shipments reached 1.13 million
8-inch equivalent wafers, with overall capacity utilization at 84%. Increased
40nm revenue contribution led to higher average selling price, which
contributed to 3Q revenue growth. With the share of 40nm sales growing from
9% to 13% quarter-over-quarter due to solid 40nm chip demand, we anticipate
our 15% year-end internal revenue target from 40nm to be achieved ahead of
schedule. In addition to 40nm, we are providing our customers with the most
competitive and innovative embedded flash specialty technologies for the
rising touch-sensor chipset market. This platform has been successfully
adopted by numerous industry leading customers with many products currently in
mass production. We are optimistic that these specialty technologies will
inject UMC with new growth momentum in the coming future."

Dr. Sun continued, "28nm progress is within our expectation, with yield
enhancement of design-in products continuing to improve. For first-wave 28nm
product matching business, we are seeing evident yield progression for ported
ICs after adjusting our process and device parameters during recent months.
UMC also successfully taped out a mobile communication product in 3Q using our
28nm high-k/-metal-gate (gate-last) process. We are subsequently
collaborating closely with customers for their 28nm mobile communication &
computing, wired & wireless connectivity, DTV, data storage controller, and
programmable logic products. Meanwhile, based on our IBM FinFET licensing,
UMC has decided to aggressively develop 14nm FinFET technology on 20nm metal.
14nm FinFET will deliver the most optimal low-power and high-performance
solution to offset the cost impact from using double patterning
lithography." 

Dr. Sun added, "Foundry is prone to both inventory correction and industry
cycles. We expect the present inventory adjustment to continue into early
next year. The momentum of the demand recovery in 2013 will be determined by
macroeconomic conditions, end demand strength and the transition progress for
new products entering the market. In the meantime, UMC will continue to
enhance its customer composition and product mix, and further exercise
flexible capacity deployment to accommodate evolving production requirements.
UMC is also strengthening its tailored cooperation with leading-edge and
specialty technology customers for specific products and applications to
provide a full-range of 'Customer-Driven Foundry Solutions.'"

Summary of Operating Results

Operating Results
(Amount: NT$ million)     3Q12    2Q12    QoQ %  3Q11    YoY %
                                          change         change
Revenue                   28,525  27,620  3.3    25,187  13.3
Gross Profit              6,850   6,740   1.6    4,984   37.4
Operating Expenses        (3,238) (3,558) (9.0)  (3,449) (6.1)
Operating Income          3,612   3,182   13.5   1,535   135.3
Non-Operating Income      83      261     (68.2) 445     (81.3)
Net Income                2,417   2,990   (19.2) 1,954   23.7
EPS (NT$ per share)     0.19    0.24           0.16
 (US$ per ADS[2]) 0.032   0.041          0.027

Revenue increased 3.3% QoQ from NT$27.62 billion in 2Q12 to NT$28.53 billion
in 3Q12, and increased 13.3% YoY from NT$25.19 billion in 3Q11. Gross profit
was NT$6.85 billion, or 24.0% of revenue, compared to NT$6.74 billion, or
24.4% of 2Q12 revenue. Operating income for the quarter was NT$3.61 billion,
or 12.7% of revenue, compared to NT$3.18 billion, or 11.5% of 2Q12 revenue.
Net income in 3Q12 was NT$2.42 billion, compared to NT$2.99 billion in 2Q12.

Earnings per ordinary share for the quarter were NT$0.19. Earnings per ADS
were US$0.032. The basic weighted average number of outstanding shares in
3Q12 was 12,628,658,938, compared with 12,621,506,549 shares in 2Q12 and
12,606,278,572 shares in 3Q11. The diluted weighted average number of
outstanding shares was 13,309,367,195 in 3Q12, compared with 13,469,988,568
shares in 2Q12 and 13,378,728,208 shares in 3Q11. The fully diluted share
count on September 30, 2012 was approximately 14,077,180,000. On September
30, 2012, UMC held 300 million treasury shares acquired from the 14th share
buy-back programs.

Detailed Financials Section

Revenue increased 3.3% QoQ to NT$28.53 billion from NT$27.62 billion in 2Q12,
mainly due to increased average selling price from rising 40nm revenue
contribution. Depreciation within COGS increased slightly due to new capacity
added to Fab 12A. General and Administration expenses decreased to NT$515
million, mainly due to the drop of employee bonus accrual adjustment. R&D
expense declined as a result of lowered mask usage due to several advanced
technology programs having already started in 2Q12. The total R&D expense was
7.8% of revenue in 3Q12.

COGS & Expenses
(Amount: NT$ million) 3Q12     2Q12     QoQ %  3Q11     YoY %
                                        change          change
Revenue               28,525   27,620   3.3    25,187   13.3
COGS                  (21,675) (20,880) 3.8    (20,203) 7.3
 Depreciation        (7,122)  (6,932)  2.7    (6,622)  7.6
 Other Mfg. Costs    (14,553) (13,948) 4.3    (13,581) 7.2
Gross Profit          6,850    6,740    1.6    4,984    37.4
Gross Margin (%)      24.0%    24.4%           19.8%
Total Operating Exp.  (3,238)  (3,558)  (9.0)  (3,449)  (6.1)
 G&A                 (515)    (626)    (17.7) (630)    (18.3)
 Sales & Marketing   (504)    (492)    2.4    (535)    (5.8)
 R&D                 (2,219)  (2,440)  (9.1)  (2,284)  (2.8)
Operating Income      3,612    3,182    13.5   1,535    135.3

Net non-operating income during 3Q12 decreased QoQ to NT$83 million. Net
investment loss can be attributed to investment loss accounted for under
equity method, mainly losses from UMC Japan and Nexpower. Gain on disposal of
investment was NT$1.54 billion, including NT$1.47 billion from Novatek and
NT$70 million from King Yuan Electronics. Increase to other loss was mainly
from the loss on valuation of financial liabilities.

Non-Operating Income (Expenses)
(Amount: NT$ million)                 3Q12    2Q12  3Q11
Net Non-Operating Income              83      261   445
Net Interest Income (Loss)            (37)    (8)   1
Net Investment Loss                   (1,068) (429) (473)
Gain (Loss) on Disposal of Investment 1,544   83    (22)
Exchange Gain (Loss)                  (0)     427   169
Other Gain (Loss)                     (356)   188   770

Operating cash inflow was NT$10.18 billion. Free cash flow for 3Q12 was
negative NT$1.51 billion, as CAPEX spending for the quarter was NT$11.69
billion. The NT$5.25 billion of financing cash outflow was mainly from the
payment of cash dividends of NT$6.32 billion. Net cash outflow was NT$4.52
billion in 3Q12.

Cash Flow Summary
                              For the 3-Month For the 3-Month

(Amount: NT$ million)         Period Ended    Period Ended

                              Sep. 30, 2012   Jun. 30, 2012
Cash Flow from Operations     10,184          10,254
 Net Income                  2,417           2,990
 Depreciation & Amortization 8,605           8,084
 Changes in Working Capital  (1,920)         (999)
 Other                       1,082           179
Cash Flow from Investing      (9,138)         (15,865)
 Capital Expenditures        (11,692)        (17,324)
Liquid of Investment          674             2,376
 Other                       1,880           (917)
Cash Flow from Financing      (5,247)         10,404
 Bank Loans                  904             404
Bonds Issued                  (4)             9,991
Cash Dividends                (6,316)         -
 Other                       169             9
Effect of Exchange Rate       (314)           171
Net Cash Flow                 (4,515)         4,964

Due to the cash dividend payment and CAPEX spending, cash and cash equivalents
decreased to NT$32.05 billion in 3Q12. The one-day increase in average
inventory turnover reflected an inventory build to accommodate higher 40nm and
28nm customer demand.

Current Assets
(Amount: NT$ billion)       3Q12  2Q12  3Q11
Cash & Cash Equivalents     32.05 36.57 33.47
Notes & Accounts Receivable 15.90 16.19 13.99
 Days Sales Outstanding    51    47    53
Inventories                 11.36 10.63 11.35
 Avg. Inventory Turnover   47    46    52
Total Current Assets        68.31 71.06 66.80

Total liabilities decreased to NT$35.07 billion in 3Q12, mainly due to the
cash dividend payment of NT$6.32 billion to stockholders. Consequently, UMC's
debt to equity ratio decreased to 33%.

Liabilities
(Amount: NT$ billion)       3Q12  2Q12  3Q11
Total Current Liabilities   35.07 41.65 28.16
 Accounts Payable          5.25  5.25  4.94
 Short-Term Credit / Bonds 9.30  9.15  7.35
Cash Dividends Payable      -     6.32  -
 Payable on Equipment      8.76  8.09  4.72
 Other                     11.76 12.84 11.15
Long-Term Liabilities       28.37 27.71 15.28
Total Liabilities           67.02 72.91 46.96
Debt to Equity              33%   35%   22%

Analysis of Revenue[3]

The percentage of revenue from North America increased to 50%, reflecting the
relative strength of North America-based computer and consumer customers.

Revenue Breakdown by Region
Region        3Q12 2Q12 1Q12 4Q11 3Q11
North America 50%  45%  45%  47%  48%
Asia Pacific  40%  46%  46%  43%  40%
Europe        9%   8%   8%   9%   11%
Japan         1%   1%   1%   1%   1%

Revenue contribution from 40nm and below grew from 9% in 2Q12 to 13% in 3Q12,
reflecting strong customer demand for this leading edge node. We anticipate
the 15% year-end internal revenue target from 40nm to be achieved ahead of
schedule.

Revenue Breakdown by Geometry
Geometry         3Q12 2Q12 1Q12 4Q11 3Q11
40nm and below   13%  9%   9%   8%   6%
40nm<x<=65nm     41%  40%  40%  41%  34%
65nm<x<=90nm     7%   7%   6%   6%   8%
90nm<x<=0.13um   15%  18%  20%  23%  24%
0.13um<x<=0.18um 9%   10%  10%  10%  13%
0.18um<x<=0.35um 11%  11%  11%  9%   11%
0.5um and above  4%   5%   4%   3%   4%

The percentage of revenue from Fabless customers increased slightly from 82%
to 83% in 3Q12.

Revenue Breakdown by Customer Type
Customer Type 3Q12 2Q12 1Q12 4Q11 3Q11
Fabless       83%  82%  80%  79%  76%
IDM           17%  18%  20%  21%  24%

Computer and consumer demand in 3Q12 both showed greater QoQ strength,
including flash controller, DTV/STB, and SDDI.

Revenue Breakdown by Application (1)
Application             3Q12       2Q12       1Q12       4Q11       3Q11
Computer                21%        17%        21%        14%        17%
Communication           49%        54%        49%        60%        53%
Consumer                27%        26%        27%        23%        27%
Memory                  1%         1%         1%         1%         1%
Others                  2%         2%         2%         2%         2%
(1) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW
control ICs, PC chipset, audio codec, keyboard controller, monitor scaler,
USB, I/O chipset. Communication consists of handset components, broadband,
WLAN, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for
DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart
cards, toys, etc. Memory consists of DRAM, SRAM, Flash, ROM, and EEPROM.

Blended Average Selling Price Trend

The slight increase in blended average selling price (ASP) during 3Q12 was
mainly from better product mix due to higher 40nm revenue contribution.

(To view ASP trend, visit
http://www.umc.com/english/investors/3Q12_ASP_trend.asp)

Shipment and Utilization Rate[4]

Wafer shipments decreased 0.7% sequentially to 1,133K in 3Q12, compared to
1,142K 8-inch equivalent wafers in 2Q12. Due to both wafer shipment and total
capacity being at similar levels, overall utilization rate for the quarter
remained flat from 2Q12 at 84%.

Wafer Shipments
                   3Q12  2Q12  1Q12  4Q11  3Q11
Wafer Shipments    1,133 1,142 963   915   1,025
(8" K equivalents)
Quarterly Capacity Utilization Rate
                   3Q12  2Q12  1Q12  4Q11  3Q11
Utilization Rate   84%   84%   71%   68%   74%
Total Capacity     1,376 1,372 1,364 1,376 1,358
(8" K equivalents)

Capacity[5]

Capacity during the third quarter was 1,376K 8-inch equivalent wafers. The
estimated capacity for the fourth quarter will increase to 1,401K 8-inch
equivalent wafers as advanced capacity expansion continues at Fab12A in
Tainan.

Annual Capacity in                              Quarterly Capacity in
thousands of wafers                             thousands of wafers
FAB          Geometry  2012E 2011  2010  2009   FAB    4Q12E 3Q12  2Q12  1Q12
             (um)
Fab6A   6"   3.5 –     481   538   588   583    Fab6A  113   123   123   122
             0.45
Fab8A   8"   0.5 –     815   813   816   816    Fab8A  204   204   204   203
             0.25
Fab8C   8"   0.35 –    360   359   366   405    Fab8C  90    90    90    90
             0.11
Fab8D   8"   0.13 –    371   364   314   267    Fab8D  93    93    93    92
             0.09
Fab8E   8"   0.5 –     449   469   410   408    Fab8E  113   113   113   112
             0.18
Fab8F   8"   0.18 –    389   388   388   381    Fab8F  98    98    98    97
             0.11
Fab8S   8"   0.18 –    348   307   304   300    Fab8S  87    87    87    87
             0.11
Fab12A  12"  0.18 –    579   501   374   385    Fab12A 156   143   141   140
             0.040
Fab12i  12"  0.13 –    537   530   454   362    Fab12i 134   134   134   134
             0.065
Total ^(1)             5,514 5,322 4,791 4,586  Total  1,401 1,376 1,372 1,364
YoY Growth Rate        4%    11%   4%    2%
^(1) One 6-inch wafer is converted into 0.5625(6 square/8 square) 8-inch
equivalent wafer; one 12-inch wafer is converted into 2.25(12 square/8 square)
8-inch equivalent wafers. Capacity total figures are expressed in 8-inch
equivalent wafers.

CAPEX

The capital expenditure budget remains unchanged at US$2 billion. By the end
of the third quarter, UMC's year-to-date CAPEX spending totaled US$1.3
billion.

UMC Capital Expenditure by Year - in US$ billion
Year    2011    2010     2009     2008     2007
CAPEX   $ 1.6   $ 1.8    $ 0.55   $ 0.35   $ 0.9
2012 CAPEX Plan
      8"            12"       Total
                              Approximately
UMC   2%            98%
                              US$2 billion

Fourth Quarter of 2012 Outlook & Guidance

Quarter-over-Quarter Guidance:

  oWafer shipment: To decrease by approximately 7-9%
  oWafer ASP in US$: To increase by approximately 2%
  oGross Margin: To be in high teen percentage points
  oCapacity utilization: Mid to high 70% range
  oSegments: Communication segment will outpace consumer and computer
    segments

Recent Developments / Announcements

Oct. 19, 2012  UMC Qualifies Foundry's First True 12V eFlash Solution
Sep. 21, 2012  Allegro And UMC Establish Foundry Partnership
Sep. 14, 2012  UMC Selected As A DJSI Global Component For Fifth Consecutive
               Year
Sep. 6, 2012   UMC To Develop 65nm BSI CMOS Image Sensor Process With
               STMicroelectronics
July. 30, 2012 UMC Obtains LEED Gold Certification For Fab 12A P3 & P4
July. 25, 2012 UMC 2Q 2012 Financial Results

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

Conference Call / Webcast Announcement

Wednesday, October 31, 2012

Time: 8:00 PM (Taipei) / 8:00 AM (New York) / 12:00 Noon (London)

Dial-in numbers and Access Codes:
USA Toll Free:             1866 519 4004
UK Toll Free:              0808 234 6646
Singapore and Other Areas: +65 6723 9381

Access Code: UMC

A live webcast and replay of the 3Q12 results announcement will be available
at www.umc.comunder the "Investor Relations \ Investor Events" section.

About UMC

UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry that
provides advanced technology and manufacturing for applications spanning every
major sector of the IC industry. UMC's customer-driven foundry solutions allow
chip designers to leverage the company's leading-edge processes, which include
28nm poly-SiON and gate-last High-K/Metal Gate technology, mixed
signal/RFCMOS, and a wide range of specialty technologies. Production is
supported through 10 wafer manufacturing facilities that include two advanced
300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i. Fab 12A consists of
Phases 1-4 which are in production for customer products down to 28nm.
Construction is underway for Phases 5&6, with future plans for Phases 7&8. The
company employs over 13,000 people worldwide and has offices in Taiwan, Japan,
Singapore, Europe, and the United States. UMC can be found on the web at
http://www.umc.com.

Note from UMC Concerning Forward-Looking Statements

Some of the statements in the foregoing announcement are forward looking
within the meaning of the U.S. Federal Securities laws, including statements
about future outsourcing, wafer capacity, technologies, business relationships
and market conditions. Investors are cautioned that actual events and results
could differ materially from these statements as a result of a variety of
factors, including conditions in the overall semiconductor market and economy;
acceptance and demand for products from UMC; and technological and development
risks. Further information concerning these risks is included in UMC's
filings with the U.S. SEC, including on Form F-1, F-3, F-6 and 20-F, each as
amended.

Safe Harbor Statements

This release contains forward-looking statements. These statements constitute
"forward-looking" statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended, and as defined in the U.S. Private Securities
Litigation Reform Act of 1995. You can identify these forward-looking
statements by use of words such as "strategy," "expects," "continues,"
"plans," "anticipates," "believes," "will," "estimates," "intends,"
"projects," "goals," "targets" and other words of similar meaning. You can
also identify them by the fact that they do not relate strictly to historical
or current facts.

These forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual performance,
financial condition or results of operations of UMC to be materially different
from what is stated or may be implied in such forward-looking statements.
Investors are cautioned that actual events and results could differ materially
from those statements as a result of a number of factors including, but not
limited to: (i) our dependence upon the frequent introduction of new services
and technologies based on the latest developments in our industry; (ii) the
intensely competitive semiconductor, communications, consumer electronics and
computer industries and markets; (iii) the risks associated with international
global business activities; (iv) our dependence upon key personnel; (v)
general economic and political conditions; (vi) possible disruptions in
commercial activities caused by natural and human-induced events and
disasters, including terrorist activity, armed conflict and highly contagious
diseases; (vii) reduced end-user purchases relative to expectations and
orders; and (viii) fluctuations in foreign currency exchange rates. Further
information regarding these and other risks is included in UMC's filings with
the U.S. Securities and Exchange Commission, including its registration
statements on Form F-1, F-3, F-6 and 20-F, in each case as amended. UMC does
not undertake any obligation to update any forward-looking statement as a
result of new information, future events or otherwise, except as required
under applicable law.

The financial statements included in this release are unaudited and
unconsolidated, and prepared and published in accordance with ROC GAAP.
Investors are cautioned that there are many differences between ROC GAAP and
US GAAP.

This presentation is not an offer of securities for sale in the United States.
Securities may not be offered or sold in the United States absent
registration or an exemption from registration. Any public offering of
securities to be made in the United States will be made by means of a
prospectus that may be obtained from the issuer or selling security holder and
that will contain detailed information about the company and management, as
well as financial statements.

Note:

[1] Unless otherwise stated, all financial figures discussed in this
announcement are prepared in accordance with ROC GAAP, which differ in some
material respects from generally accepted accounting principles in the United
States. They are un-audited, unconsolidated, and represent comparisons among
the three-month period ending Sep 30, 2012, the three-month period ending Jun
30, 2012, and the equivalent three-month period that ended Sep 30, 2011. For
all 3Q12 results, New Taiwan Dollar (NT$) amounts have been converted into
U.S. Dollars at the Sep 30, 2012 exchange rate of NT$29.31 per U.S. Dollar.

[2] One ADS represents five Taiwan-listed ordinary shares.

[3] Revenue in this section represents wafer sales.

[4] Utilization Rate = Quarterly Wafer Out / Quarterly Capacity

[5] Estimated capacity numbers are based on calculated maximum output rather
than designed capacity. The actual capacity numbers may differ depending upon
equipment delivery schedules, pace of migration to more advanced process
technologies, and other factors affecting production ramp-up.

- FINANCIAL TABLES TO FOLLOW -

UNITED MICROELECTRONICS CORPORATION
Condensed Unconsolidated Balance Sheet
As of September 30, 2012
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
                                                September 30, 2012
                                                US$      NT$        %
ASSETS
Current Assets
Cash and Cash Equivalents                      1,093    32,050     11.7%
Financial Assets at Fair Value through Profit  25       727        0.3%
or Loss, current
Available-for-Sale Financial Assets, current   209      6,140      2.2%
Notes & Accounts Receivable, net               542      15,896     5.8%
Inventories, net                               388      11,361     4.2%
Other Current Assets                           74       2,139      0.8%
 Total Current Assets                        2,331    68,313     25.0%
Non-Current Assets
Funds and Investments                          1,762    51,646     18.9%
Property, Plant and Equipment, net             5,002    146,606    53.7%
Other Assets                                   217      6,357      2.4%
 Total Non-Current Assets                    6,981    204,609    75.0%
TOTAL ASSETS                                    9,312    272,922    100.0%
LIABILITIES
Current Liabilities
Short-term Loans                               80       2,349      0.9%
Financial Liabilities at Fair Value through    39       1,145      0.4%
Profit or Loss, current
Payables                                       823      24,118     8.8%
Current Portion of Long-term Liabilities       237      6,956      2.5%
Other Current Liabilities                      18       506        0.3%
 Total Current Liabilities                   1,197    35,074     12.9%
Non-Current Liabilities
Bonds Payable                                  752      22,046     8.1%
Long-term Loans                                216      6,328      2.3%
Other Liabilities                              122      3,568      1.3%
 Total Non-Current Liabilities               1,090    31,942     11.7%
TOTAL LIABILITIES                               2,287    67,016     24.6%
STOCKHOLDERS' EQUITY
Capital Stock                                   4,419    129,515    47.5%
Additional Paid-in Capital                      1,603    46,990     17.2%
Retained Earnings, Unrealized Gain or Loss on
Financial                                       1,172    34,364     12.5%
 Instruments and Cumulative Translation
Adjustment
Treasury Stock                                  (169)    (4,963)    (1.8%)
TOTAL STOCKHOLDERS' EQUITY                      7,025    205,906    75.4%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      9,312    272,922    100.0%
Note:New Taiwan Dollars have been translated into U.S. Dollars at the
September 30, 2012 exchange rate of NT
 $29.31 per U.S. Dollar.
 All figures are in ROC GAAP.

 UNITED MICROELECTRONICS CORPORATION
Condensed Unconsolidated Income Statement
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
                                         Year over Year Comparison                  Quarter over Quarter Comparison
                                         Three-Month Period Ended                   Three-Month Period Ended
                                         September 30,    September 30,    %        September 30,    June 30, 2012    %
                                         2012             2011                      2012
                                         US$    NT$       US$    NT$       Chg.     US$    NT$       US$    NT$       Chg.
Net Sales                                973    28,525    859    25,187    13.3%    973    28,525    942    27,620    3.3%
Cost of Goods Sold                       (739)  (21,675)  (689)  (20,203)  7.3%     (739)  (21,675)  (712)  (20,880)  3.8%
Net Gross Profit                         234    6,850     170    4,984     37.4%    234    6,850     230    6,740     1.6%
                                         24.0%  24.0%     19.8%  19.8%              24.0%  24.0%     24.4%  24.4%
Operating Expenses
 - Sales & Marketing                    (17)   (504)     (18)   (535)     (5.8%)   (17)   (504)     (17)   (492)     2.4%
 - General & Administrative             (18)   (515)     (21)   (630)     (18.3%)  (18)   (515)     (21)   (626)     (17.7%)
 - Research & Development               (76)   (2,219)   (79)   (2,284)   (2.8%)   (76)   (2,219)   (83)   (2,440)   (9.1%)
                                         (111)  (3,238)   (118)  (3,449)   (6.1%)   (111)  (3,238)   (121)  (3,558)   (9.0%)
Operating Income                         123    3,612     52     1,535     100.0%   123    3,612     109    3,182     13.5%
                                         12.7%  12.7%     6.1%   6.1%               12.7%  12.7%     11.5%  11.5%
Net Non-Operating Income (Expenses)      3      83        16     445       (81.3%)  3      83        8      261       (68.2%)
IncomefromContinuingOperationsbefore 126    3,695     68     1,980     86.6%    126    3,695     117    3,443     7.3%
 Income Tax
                                         13.0%  13.0%     7.9%   7.9%               13.0%  13.0%     12.5%  12.5%
Income Tax Expense                       (44)   (1,278)   (1)    (26)      100.0%   (44)   (1,278)   (15)   (453)     100.0%
Net Income                               82     2,417     67     1,954     23.7%    82     2,417     102    2,990     (19.2%)
                                         8.5%   8.5%      7.8%   7.8%               8.5%   8.5%      10.8%  10.8%
Earnings per Share                       0.006  0.19      0.005  0.16               0.006  0.19      0.008  0.24
Earnings per ADS ^(2)                    0.032  0.95      0.027  0.80               0.032  0.95      0.041  1.20
Weighted Average Number of Shares
Outstanding (in millions)                       12,629           12,606                    12,629           12,622
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2012 exchange
rate of NT $29.31 per U.S. Dollar.
 All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.

UNITED MICROELECTRONICS CORPORATION
Condensed Unconsolidated Income Statement
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
                                         For the Three-Month       For the Nine-Month Period
                                         Period Ended              Ended
                                         September 30, 2012        September 30, 2012
                                         US$    NT$       %        US$      NT$     %
Net Sales                                973    28,525    100.0%   2,726    79,910    100.0%
Cost of Goods Sold                       (739)  (21,675)  (76.0%)  (2,107)  (61,770)  (77.3%)
Net Gross Profit                         234    6,850     24.0%    619      18,140    22.7%
Operating Expenses
 - Sales & Marketing                    (17)   (504)     (1.8%)   (51)     (1,505)   (1.9%)
 - General & Administrative             (18)   (515)     (1.8%)   (58)     (1,693)   (2.1%)
 - Research & Development               (76)   (2,219)   (7.7%)   (233)    (6,824)   (8.5%)
                                         (111)  (3,238)   (11.3%)  (342)    (10,022)  (12.5%)
Operating Income                        123    3,612     12.7%    277      8,118     10.2%
Net Non-Operating Income (Expenses)      3      83        0.3%     17       513       0.6%
IncomefromContinuingOperationsbefore 126    3,695     13.0%    294      8,631     10.8%
 Income Tax
Income Tax Expense                       (44)   (1,278)   (4.5%)   (64)     (1,889)   (2.4%)
Net Income                              82     2,417     8.5%     230      6,742     8.4%
Earnings per Share                       0.006  0.19               0.018    0.53
Earnings per ADS ^(2)                    0.032  0.95               0.090    2.65
Weighted Average Number of Shares               12,629                      12,621
 Outstanding (in millions)
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2012
exchange rate of NT $29.31 per U.S. Dollar.
 All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.

 UNITED MICROELECTRONICS CORPORATION
Condensed Unconsolidated Statement of Cash Flows
For The Nine-Month Period Ended September 30, 2012
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
                                                                                                                                USD      NTD
Cash flows from operating activities :
 Net Income                                                                                                                  230      6,742
 Depreciation & Amortization                                                                                                 838      24,555
 Gain on recovery in bad debt                                                                                                (0)      (0)
 Gain on recovery in market value and obsolescence of inventories                                                           (2)      (55)
 Cash dividends received under the equity method                                                                             2        57
 Investment lossaccounted for under the equity method                                                                        87       2,556
 Loss on valuation of financial assets and liabilities                                                                       13       386
 Impairment loss                                                                                                             1        25
 Gain on disposal of investments                                                                                             (68)     (1,989)
 Gain on disposal of property, plant and equipment                                                                           (1)      (24)
 Exchange gain on financial assets and liabilities                                                                           (4)      (127)
 Exchange gain on long-term liabilities                                                                                      (6)      (184)
 Amortization of bond discounts                                                                                             9        258
 Amortization of deferred income                                                                                             (2)      (59)
 Stock-based payment                                                                                                         6        185
 Exchange gain on capital reduction of long-term investments accounted for under the                                         (8)      (233)
 equity method
 Changes in assets, liabilities and others                                                                                   (74)     (2,156)
Net cash provided by operating activities                                                                                       1,021    29,937
Cash flows from investing activities :
 Proceeds from disposal of available-for-sales financial assets                                                              92       2,711
 Proceeds from disposal of financial assets measured at cost                                                                 0        0
 Acquisitionoflong-terminvestmentsaccountedforundertheequitymethod                                                  (1)      (16)
 Proceeds from capital reduction and liquidation of investments                                                             104      3,049
 Acquisition of property, plant and equipment                                                                                (1,320)  (38,675)
 Acquisition of intangible assets                                                                                            (26)     (749)
 Proceeds from disposal of property, plant and equipment                                                                    1        25
 Increase in deferred charges                                                                                                (19)     (553)
 Increase in other assets - others                                                                                           (3)      (133)
Net cash used in investing activities                                                                                           (1,172)  (34,341)
Cash flows from financing activities :
 Decrease in short-term loans                                                                                                (72)     (2,098)
 Proceeds from long-term loans                                                                                               188      5,500
 Repayments of long-term loans                                                                                               (44)     (1,288)
 Proceeds from bonds issued                                                                                                  341      10,000
 Bonds issue cost                                                                                                            (0)      (13)
 Cash Dividends                                                                                                              (216)    (6,316)
 Exercise of employee stock options                                                                                          9        260
 Proceeds from disposal of treasury stock                                                                                    0        4
 Increase in deposits-in                                                                                                     1        28
Net cash providedby financing activities                                                                                        207      6,077
Effectofexchangeratechangesoncashandcashequivalents (15)     (452)
Net increase in cash and cash equivalents                                                                                       41       1,221
Cash and cash equivalents at beginning of period                                                                                1,052    30,829
Cash and cash equivalents at end of period                                                                                      1,093    32,050
Note: New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2012 exchange rate of NT $29.31 per U.S.
 Dollar.
 All figures are in ROC GAAP.

Contacts:

Bowen Huang
UMC, Investor Relations
+ 886-2-2658-9168, ext. 16957
bowen_huang@umc.com

SOURCE United Microelectronics Corporation

Website: http://www.umc.com
Website: http://www.umc.com/english/investors/3Q12_ASP_trend.asp
 
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