UMC Reports Fourth Quarter 2012 Results

                   UMC Reports Fourth Quarter 2012 Results

Company to enhance advanced processes and long-term competitiveness

PR Newswire

TAIPEI, Taiwan, Feb. 6, 2013

TAIPEI, Taiwan, Feb. 6, 2013 /PRNewswire/ --

Fourth Quarter 2012 Overview[Note 1]:

  oRevenue: declined 8.5% QoQ to NT$26.09 billion (US$898.66 million)
  oGross margin: 16.8%; operating margin: 3.7%
  oCapacity utilization: 80%
  oNet income: NT$1.17 billion (US$40.41 million)
  oEarnings per share: NT$0.09; earnings per ADS: US$0.016

         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,
Note1: unconsolidated, and represent comparisons among the three-month
         period ending Dec 31, 2012, the three-month period ending Sep 30,
         2012, and the equivalent three-month period that ended Dec 31, 2011.
         For all 4Q12 results, New Taiwan Dollar (NT$) amounts have been
         converted into U.S. Dollars at the Dec 31, 2012 exchange rate of
         NT$29.03 per U.S. Dollar.

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

Revenue was NT$26.09 billion, an 8.5% quarter-over-quarter decrease from
NT$28.53 billion in 3Q12, and a 6.8% year-over-year increase from NT$24.43
billion in 4Q11. Gross margin was 16.8%, operating margin was 3.7%, net
income was NT$1.17 billion, and earnings per ordinary share were NT$ 0.09. In
2012, revenue for the full year was NT$106.00 billion, with NT$9.08 billion
operating income, NT$7.92 billion net income and NT$0.63 earnings per share.

Mr. Po-Wen Yen, UMC's newly appointed CEO, said, "In 4Q 2012, both UMC's
revenue and gross profit were in line with expectations. Quarter-over-quarter
revenue decline was primarily attributed to decreased wafer shipments. A
total of 1.07 million 8-inch equivalent wafers were shipped, with overall
capacity utilization at 80%. Due to the impact from declining wafers
shipments and currency appreciation, gross margin for the quarter was 16.8%.
Revenue contribution from 40nm continued its sequential increase to 15%,
reaching our internal target."

CEO Yen continued, "As industry competition intensifies, the bar has been
raised with regard to customer expectations for leading-edge technology
products' time to market and foundry service flexibility. As UMC's newly
appointed CEO, my first priority is to enhance R&D for advanced processes. In
order to realize maximum benefits from our R&D efforts, we will increase
internal resources while leverage outside collaboration so that we may
effectively integrate R&D with manufacturing to ensure timely delivery of key
projects. For example, UMC's FinFET development began in 2010, and was
bolstered in 2012 through a cooperative licensing agreement with IBM for their
fundamental FinFET technology. Our FinFET development team has since been
making good progress. Meanwhile, UMC recently demonstrated the world's first
TSV-enabled 3DIC chip stacking technology developed under an open ecosystem
collaboration. The 3DIC, developed with an OSAT partner, reached a major
milestone by passing package-level reliability assessment. This successful
collaboration reaffirms our strong commitment to elevating technology
capabilities in order to fulfill the promise of providing high value-added
services to customers. UMC's operating results can be further enhanced
through management's team effort to increase capacity, control cost, and
expand our customer base. Although UMC's 28nm ramp has been slower than
anticipated, we remain dedicated to advanced technology development and timely
capacity deployment to serve our customers' needs. Equally important is our
customers' unwavering commitment to bringing their new and existing 28nm
products to fruition at UMC."

CEO Yen added, "In the short-term, we continue to see elevated demand
uncertainty from customers, along with supply chain inventory that will need
additional time to digest. When demand recovers, we are optimistic about the
growth momentum from the strong mobile communications segment. 2013 is a
critical year for UMC to demonstrate continuous success. In addition to
acquiring Hejian Technology's operation, which will help UMC expand in the
China market and broaden the company's operating scale, we will continue to
invest appropriate capex to further our advanced process R&D and expand
leading-edge capacity. These endeavors will help expedite company growth and
strengthen competitiveness to enhance UMC and its customers' overall value
while increasing shareholders' equity."

Summary of Operating Results

Operating Results
(Amount: NT$ million)          4Q12    3Q12    QoQ %  4Q11    YoY %
                                               change         change
Revenue                        26,088  28,525  (8.5)  24,425  6.8
Gross Profit                   4,372   6,850   (36.2) 4,550   (3.9)
Operating Expenses             (3,409) (3,238) 5.3    (3,710) (8.1)
Operating Income               963     3,612   (73.3) 840     14.6
Non-Operating Income           391     83      371.1  149     162.4
Net Income                     1,173   2,417   (51.5) 980     19.7
EPS (NT$ per share)          0.09    0.19           0.08
 (US$ per ADS[Note 2]) 0.016   0.033          0.014
Note 2:One ADS represents five Taiwan-listed ordinary shares.

Revenue decreased 8.5% QoQ to NT$26.09 billion from NT$28.53 billion in 3Q12,
and increased 6.8% YoY from NT$24.43 billion in 4Q11. Gross profit was
NT$4.37 billion, or 16.8% of revenue, compared to NT$6.85 billion, or 24.0% of
3Q12 revenue. Operating income for the quarter was NT$963 million, or 3.7% of
revenue, compared to NT$3.61 billion, or 12.7% of 3Q12 revenue. Net income in
4Q12 was NT$1.17 billion, compared to NT$2.42 billion in 3Q12.

Earnings per ordinary share for the quarter were NT$0.09. Earnings per ADS
were US$0.016. The basic weighted average number of outstanding shares in
4Q12 was 12,635,635,936, compared with 12,628,658,938 shares in 3Q12 and
12,609,375,064 shares in 4Q11. The diluted weighted average number of
outstanding shares was 13,321,721,668 in 4Q12, compared with 13,309,367,195
shares in 3Q12 and 13,319,535,653 shares in 4Q11. The fully diluted share
count on December 31, 2012 was approximately 14,062,286,000. On December 31,
2012, UMC held 300 million treasury shares acquired from the 14th share
buy-back programs.

Detailed Financials Section

Revenue decreased 8.5% QoQ to NT$26.09 billion from NT$28.53 billion in 3Q12,
mainly due to decrease in shipment quantity. Gross profit was NT$4.37
billion, or 16.8% of revenue, compared to NT$6.85 billion, or 24.0% of 3Q12
revenue due to shipment decline and currency appreciation. Sales and
Marketing expenses decreased to NT$323 million due to a reversal of bad debt
expenses from customers. Research and development expenses increased to
NT$2.49 billion in 4Q, mainly due to the increase in R&D wafers and masks for
advanced process nodes. The total R&D expense was 9.5% of revenue in 4Q12.

COGS & Expenses
(Amount: NT$ million) 4Q12     3Q12     QoQ %  4Q11     YoY %
                                        change          change
Revenue               26,088   28,525   (8.5)  24,425   6.8
COGS                  (21,716) (21,675) 0.2    (19,875) 9.3
 Depreciation        (6,841)  (7,122)  (3.9)  (6,800)  0.6
 Other Mfg. Costs    (14,875) (14,553) 2.2    (13,075) 13.8
Gross Profit          4,372    6,850    (36.2) 4,550    (3.9)
Gross Margin (%)      16.8%    24.0%           18.6%
Total Operating Exp.  (3,409)  (3,238)  5.3    (3,710)  (8.1)
 G&A                 (598)    (515)    16.1   (601)    (0.5)
 Sales & Marketing   (323)    (504)    (35.9) (822)    (60.7)
 R&D                 (2,488)  (2,219)  12.1   (2,287)  8.8
Operating Income      963      3,612    (73.3) 840      14.6

Net non-operating income during 4Q12 increased QoQ to NT$391 million. Net
investment loss was NT$1.04 billion, losses were primarily due to UMC Japan
and solar business operations. Gain on disposal of investment mainly came
from conversion of Novatek exchangeable bonds. The gain from other items
mainly composed of gain on redemption of bonds payable and loss from valuation
of financial liabilities.

Non-Operating Income (Expenses)
(Amount: NT$ million)                 4Q12    3Q12    4Q11
Net Non-Operating Income              391     83      149
Net Interest Income (Loss)            (54)    (37)    (7)
Net Investment Loss                   (1,041) (1,068) (1,485)
Gain (Loss) on Disposal of Investment 1,493   1,544   2
Exchange Gain (Loss)                  (60)    (0)     45
Other Gain (Loss)                     53      (356)   1,594

Operating cash inflow was NT$11.60 billion. Free cash flow for 4Q12 was
negative NT$544 million, as CAPEX spending for the quarter was NT$12.14
billion. The NT$466 million of financing cash inflow was mainly from the
increase of bank loans. Net cash outflow was NT$293 million in 4Q12.

Cash Flow Summary
                              For the 3-Month Period For the 3-Month Period
(Amount: NT$ million)
                              Ended Dec. 31, 2012    Ended Sep. 30, 2012
Cash Flow from Operations     11,599                 10,184
 Net Income                  1,173                  2,417
 Depreciation & Amortization 8,791                  8,605
 Changes in Working Capital  881                    (1,920)
 Other                       754                    1,082
Cash Flow from Investing      (12,170)               (9,138)
 Capital Expenditures        (12,143)               (11,692)
Liquid of Investment          14                     674
 Other                       (41)                   1,880
Cash Flow from Financing      466                    (5,247)
 Bank Loans                  571                    904
Bonds Issued                  -                      (4)
Cash Dividends                -                      (6,316)
Reacquisition of ECB          (139)                  -
 Other                       34                     169
Effect of Exchange Rate       (188)                  (314)
Net Cash Flow                 (293)                  (4,515)

Current assets decreased to NT$65.22 billion, mainly due to decrease in
financial assets resulting from exchangeable bond holders exercising their
exchange rights. The three-day increase from inventory turnover days resulted
from higher raw material levels from increasing customers' demand at
leading-edge nodes.

Current Assets
(Amount: NT$ billion)       4Q12  3Q12  4Q11
Cash & Cash Equivalents     31.76 32.05 30.83
Notes & Accounts Receivable 14.11 15.90 12.50
 Days Sales Outstanding    52    51    49
Inventories                 11.85 11.36 10.48
 Avg. Inventory Turnover   50    47    51
Total Current Assets        65.22 68.31 60.77

Total current liabilities decreased to NT$29.27 billion in 4Q12, attributed to
the payment on equipment, which consequently resulted in a drop in debt to
equity ratio to 31% in 4Q.

Liabilities
(Amount: NT$ billion)       4Q12  3Q12  4Q11
Total Current Liabilities   29.27 35.07 31.75
 Accounts Payable          4.98  5.25  4.00
 Short-Term Credit / Bonds 8.15  9.30  10.43
 Payable on Equipment      4.13  8.76  6.72
 Other                     12.01 11.76 10.60
Long-Term Liabilities       28.89 28.37 15.20
Total Liabilities           61.79 67.02 50.56
Debt to Equity              31%   33%   24%

Analysis of Revenue[Note 3]

Note3: Revenue in this section represents wafer sales.

The percentage of revenue from Asia Pacific increased to 45%, reflecting the
relative strength of Asia Pacific based consumer and communication
customers.

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

Revenue contribution from 40nm and below grew from 13% in 3Q12 to 15% in 4Q12,
reaching the company's year-end internal target.

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

The percentage of revenue from Fabless and IDM customers were 90% and 10%
respectively for 4Q.

Revenue Breakdown by Customer Type
Customer Type 4Q12 3Q12 2Q12 1Q12 4Q11
Fabless       90%  83%  82%  80%  79%
IDM           10%  17%  18%  20%  21%

Computer segment showed weakness in 4Q, including demand in display IC.

Revenue Breakdown by Application ^(1)
Application             4Q12       3Q12       2Q12       1Q12       4Q11
Computer                18%        21%        17%        21%        14%
Communication           50%        49%        54%        49%        60%
Consumer                29%        27%        26%        27%        23%
Others                  3%         3%         3%         3%         3%
(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.

Blended Average Selling Price Trend

The blended average selling price (ASP) was flat during 4Q12.

(To view ASP trend, visit
http://www.umc.com/english/investors/4Q12_ASP_trend.asp )

Shipment and Utilization Rate[Note 4]

Note4: Utilization Rate = Quarterly Wafer Out / Quarterly Capacity

Wafer shipments decreased 5.7% sequentially to 1,069K in 4Q12, compared to
1,133K 8-inch equivalent wafers in 3Q12. Due to the drop in shipment quantity
and total capacity being at a larger level, overall utilization rate for the
quarter declined slightly to 80%.

Wafer Shipments
                   4Q12  3Q12  2Q12  1Q12  4Q11
Wafer Shipments    1,069 1,133 1,142 963   915
(8" K equivalents)
Quarterly Capacity Utilization Rate
                   4Q12  3Q12  2Q12  1Q12  4Q11
Utilization Rate   80%   84%   84%   71%   68%
Total Capacity     1,401 1,376 1,372 1,364 1,376
(8" K equivalents)

Capacity[Note 5]

          Estimated capacity numbers are based on calculated maximum output
          rather than designed capacity. The actual capacity numbers may
Note5:  differ depending upon equipment delivery schedules, pace of
          migration to more advanced process technologies, and other factors
          affecting production ramp-up.

Capacity during the fourth quarter was 1,401K 8-inch equivalent wafers. The
estimated capacity for the first quarter will increase to 1,461K 8-inch
equivalent wafers as Fab8N's capacity will be included starting from February,
2013. 

Annual Capacity in                                  Quarterly Capacity in

thousands of wafers                                 thousands of wafers
FAB        Geometry        2012  2011  2010  2009   FAB 1Q13E 4Q12  3Q12  2Q12
           (um)
Fab6A  6"  3.5 - 0.45      481   538   588   583    Fab6A       113   113   123   123
Fab8A  8"  0.5 - 0.25      815   813   816   816    Fab8A       201   204   204   204
Fab8C  8"  0.35 - 0.11     360   359   366   405    Fab8C       86    90    90    90
Fab8D  8"  0.13 - 0.09     371   364   314   267    Fab8D       94    93    93    93
Fab8E  8"  0.5 - 0.18      449   469   410   408    Fab8E       103   113   113   113
Fab8F  8"  0.18 - 0.11     389   388   388   381    Fab8F       96    98    98    98
Fab8S  8"  0.18 - 0.11     348   307   304   300    Fab8S       83    87    87    87
Fab12A 12" 0.18-0.028    579   501   374   385    Fab8N^(2)   83    -     -     -
Fab12i 12" 0.13 - 0.040    537   530   454   362    Fab12A      158   156   143   141
Total^(1)                  5,514 5,322 4,791 4,586  Fab12i      132   134   134   134
YoY Growth Rate            4%    11%   4%    2%     Total       1,461 1,401 1,376 1,372
^(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.

^(2) Fab8N's capacity will be included starting February, 2013.

CAPEX

The total capital expenditure for 2012 was US$1.7 billion. The foundry
capital expenditure budget for 2013 is expected to be approximately US$1.5
billion. 94% of the amount will be used for 12" advanced capacity expansion.

UMC Capital Expenditure by Year - in US$ billion
Year  2012  2011  2010  2009             2008
CAPEX $ 1.7 $ 1.6 $ 1.8 $ 0.55           $ 0.35
2013 Foundry CAPEX Plan
8"        12"               Total
6%        94%               Approximately US$1.5 billion

Brief Summary of Full Year 2012 Results

  oRevenue increased 0.1% YoY to NT$106.00 billion from NT$105.88 billion in
    2011.
  oGross profit margin was 21.2%, compared to 22.7% in 2011.
  oOperating profit margin was 8.6%, compared to 9.6% in 2011.
  oNet income was NT$7.92 billion for 2012.
  oEPS was NT$0.63, or EPADS was US$0.109 for 2012, compared to EPS of
    NT$0.84 or EPADS of US$0.145 for 2011.
  oThe percentage of revenue from 40nm and below technologies increased from
    6% in 2011 to 11% in 2012. Percentage of revenue from 65nm and below
    technologies accounted for 52% in 2012.

Operating Results
(Amount: NT$ million)  2012     2011     YoY %
                                         change
Revenue                105,998  105,880  0.1
Gross Profit           22,512   23,995   (6.2)
Operating Expenses     (13,431) (13,857) (3.1)
Operating Income       9,081    10,138   (10.4)
Non-Operating Income   904      1,228    (26.4)
Income Tax Expenses    (2,070)  (756)    173.8
Net Income             7,915    10,610   (25.4)
EPS (NT$ per share)  0.63     0.84
 (US$ per ADS) 0.109    0.145

Annual Sales Breakdown in Revenue
Region              2012   2011
North America       46%    49%
Asia Pacific        45%    39%
Europe              8%     11%
Japan               1%     1%
Technology          2012   2011
40nm and below      11%    6%
40nm<x<=65nm        41%    33%
65nm<x<=90nm        7%     11%
90nm<x<=0.13um      17%    24%
0.13um<x<=0.18um    10%    12%
0.18um<x<=0.35um    10%    9%
0.5um and above     4%     5%
Customer Type       2012   2011
Fabless             84%    75%
IDM                 16%    25%
Application         2012   2011
Computer            19%    15%
Communication       50%    55%
Consumer            27%    27%
Others              4%     3%

First Quarter of 2013 Outlook & Guidance

Quarter-over-Quarter Guidance:

  oFoundry Segment Wafer Shipment: To increase by approximately 6%
  oFoundry Segment ASP in US$: To decrease by approximately 6%
  oFoundry Segment Profitability: Operating margin to be approximately
    break-even
  oFoundry Segment Capacity Utilization: Approximately 75%
  o2013 Foundry CAPEX Budget: US$1.5bn
  oGuidance to Non-Operating Income and New Business Segment:

       oNon-Operating Income after-tax to be approximately US$100mn +
       oNew Business Segment revenue to be approximately NT$2bn, and
         operating margin to be in loss of approximately NT$1bn

Recent Developments / Announcements

Jan. 29, 2013 STATS ChipPAC and UMC Unveil World's First 3D IC Developed Under
              An Open Ecosystem Model
Jan. 22, 2013 Faraday and UMC Deliver 300 Million Gate 40nm Customer SoC
Jan. 15, 2013 UMC Introduces Thick Plated Copper Process For Monolithic PMIC
              Applications
Dec. 26, 2012 UMC Receives ICP Certification From The Bureau of Foreign Trade
Dec. 18, 2012 UMC Achieves Foundry's First 55nm SDDI Customer Product Tape-out
Nov. 21, 2012 UMC Unveils 80nm SDDI Foundry Process Featuring The Industry's
              Most Competitive SRAM Bitcell
Nov. 19, 2012 UMC Restructures Executive Team
Oct. 31, 2012 UMC 3Q 2012 Financial Results

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

Conference Call / Webcast Announcement

Wednesday, February 06, 2013

Time:                    9:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM
                              (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 4Q12 results announcement will be available
at www.umc.com under 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.

- FINANCIAL TABLES TO FOLLOW -

 UNITED MICROELECTRONICS CORPORATION
Condensed Unconsolidated Balance Sheet
As of December 31, 2012
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
                                                                  December 31, 2012
                                                                  US$    NT$      %
ASSETS
Current Assets
Cash and Cash Equivalents                                        1,094  31,757   12.0%
FinancialAssetsatFairValuethroughProfitorLoss,current 23     656      0.2%
Available-for-Sale Financial Assets, current                     149    4,331    1.6%
Notes & Accounts Receivable, net                                 486    14,110   5.3%
Inventories, net                                                 408    11,851   4.5%
Other Current Assets                                             87     2,515    1.1%
 Total Current Assets                                          2,247  65,220   24.7%
Non-Current Assets
Funds and Investments                                            1,655  48,033   18.2%
Property, Plant and Equipment, net                               4,999  145,135  54.9%
Other Assets                                                     205    5,946    2.2%
 Total Non-Current Assets                                      6,859  199,114  75.3%
TOTAL ASSETS                                                      9,106  264,334  100.0%
LIABILITIES
Current Liabilities
Short-term Loans                                                 80     2,326    0.9%
Financial Liabilities at Fair Value through Profit or Loss,      26     768      0.3%
current
Payables                                                         688    19,956   7.5%
Current Portion of Long-term Liabilities                         201    5,819    2.2%
Other Current Liabilities                                        14     406      0.2%
 Total Current Liabilities                                     1,009  29,275   11.1%
Non-Current Liabilities
Bonds Payable                                                    755    21,932   8.3%
Long-term Loans                                                  240    6,962    2.6%
Other Liabilities                                                125    3,621    1.4%
 Total Non-Current Liabilities                                 1,120  32,515   12.3%
TOTAL LIABILITIES                                                 2,129  61,790   23.4%
STOCKHOLDERS' EQUITY
Capital Stock                                                     4,462  129,521  49.0%
Additional Paid-in Capital                                        1,619  46,995   17.8%
Retained Earnings, Unrealized Gain or Loss on Financial           1,067  30,991   11.7%
 Instruments and Cumulative Translation Adjustment
Treasury Stock                                                    (171)  (4,963)  (1.9%)
TOTAL STOCKHOLDERS' EQUITY                                        6,977  202,544  76.6%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                        9,106  264,334  100.0%
Note:New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2012
exchange rate of NT $29.03 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
                                            December 31,     December 31,     %        December 31,     September 30,    %
                                            2012             2011                      2012             2012
                                            US$    NT$       US$    NT$       Chg.     US$    NT$       US$    NT$       Chg.
Net Sales                                   899    26,088    842    24,425    6.8%     899    26,088    983    28,525    (8.5%)
CostofGoodsSold                          (748)  (21,716)  (685)  (19,875)  9.3%     (748)  (21,716)  (747)  (21,675)  0.2%
Net Gross Profit                            151    4,372     157    4,550     (3.9%)   151    4,372     236    6,850     (36.2%)
                                            16.8%  16.8%     18.6%  18.6%              16.8%  16.8%     24.0%  24.0%
Operating Expenses
 - Sales & Marketing                       (11)   (323)     (28)   (822)     (60.7%)  (11)   (323)     (17)   (504)     (35.9%)
 -General&Administrative                (21)   (598)     (21)   (601)     (0.5%)   (21)   (598)     (18)   (515)     16.1%
 - Research & Development                  (86)   (2,488)   (79)   (2,287)   8.8%     (86)   (2,488)   (77)   (2,219)   12.1%
                                            (118)  (3,409)   (128)  (3,710)   (8.1%)   (118)  (3,409)   (112)  (3,238)   5.3%
Operating Income                            33     963       29     840       14.6%    33     963       124    3,612     (73.3%)
                                            3.7%   3.7%      3.4%   3.4%               3.7%   3.7%      12.7%  12.7%
Net Non-Operating Income (Expenses)         14     391       5      149       100.0%   14     391       3      83        100.0%
IncomefromContinuingOperationsbefore 47     1,354     34     989       36.9%    47     1,354     127    3,695     (63.4%)
 Income Tax
                                            5.2%   5.2%      4.1%   4.1%               5.2%   5.2%      13.0%  13.0%
Income Tax Expense                          (7)    (181)     (0)    (9)       100.0%   (7)    (181)     (44)   (1,278)   (85.8%)
Net Income                                  40     1,173     34     980       19.7%    40     1,173     83     2,417     (51.5%)
                                            4.5%   4.5%      4.0%   4.0%               4.5%   4.5%      8.5%   8.5%
Earnings per Share                          0.003  0.09      0.003  0.08               0.003  0.09      0.007  0.19
Earnings per ADS ^(2)                       0.016  0.45      0.014  0.40               0.016  0.45      0.033  0.95
Weighted Average Number of Shares
Outstanding (in millions)                          12,636           12,609                    12,636           12,629
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2012 exchange rate of NT $29.03 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 Twelve-Month
                                            Period Ended              Period Ended
                                            December 31, 2012         December 31, 2012
                                            US$    NT$       %        US$      NT$     %
Net Sales                                   899    26,088    100.0%   3,652    105,998   100.0%
Cost of Goods Sold                          (748)  (21,716)  (83.2%)  (2,876)  (83,486)  (78.8%)
Net Gross Profit                            151    4,372     16.8%    776      22,512    21.2%
Operating Expenses
 - Sales & Marketing                       (11)   (323)     (1.3%)   (63)     (1,829)   (1.7%)
 -General&Administrative                (21)   (598)     (2.3%)   (79)     (2,291)   (2.1%)
 - Research & Development                  (86)   (2,488)   (9.5%)   (321)    (9,311)   (8.8%)
                                            (118)  (3,409)   (13.1%)  (463)    (13,431)  (12.6%)
Operating Income                           33     963       3.7%     313      9,081     8.6%
NetNon-OperatingIncome(Expenses)         14     391       1.5%     31       904       0.8%
IncomefromContinuingOperationsbefore 47     1,354     5.2%     344      9,985     9.4%
 Income Tax
Income Tax Expense                          (7)    (181)     (0.7%)   (71)     (2,070)   (1.9%)
Net Income                                 40     1,173     4.5%     273      7,915     7.5%
Earnings per Share                          0.003  0.09               0.022    0.63
Earnings per ADS ^(2)                       0.016  0.45               0.109    3.15
Weighted Average Number of Shares                  12,636                      12,625
 Outstanding (in millions)
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2012 exchange
rate of NT $29.03 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 Twelve-Month Period Ended December 31, 2012
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
                                                       USD         NTD
Cash flows from operating activities :
 Net Income                                         273         7,915
 Depreciation & Amortization                        1,149       33,346
 Gain on recovery in bad debt                       (8)         (227)
 Loss on decline in market value and obsolescence   34          999
of inventories
 Cash dividends received under the equity method    2           57
 Investment lossaccounted for under the equity      123         3,581
method
 Loss on valuation of financial assets and          21          622
liabilities
 Impairment loss                                    3           90
 Gain on disposal of investments                    (120)       (3,482)
 Gain on disposal of property, plant and equipment  (1)         (20)
 Exchange gain on financial assets and liabilities  (4)         (116)
 Exchange gain on long-term liabilities             (4)         (123)
 Amortization of bond discounts                    12          338
 Gain on reacquisition of bonds                     (4)         (105)
 Amortization of deferred income                    (3)         (93)
 Stock-based payment                                7           196
 Exchangegainoncapitalreductionoflong-term
investments accounted                                 (8)         (233)
forunder theequity method
 Changes in assets, liabilities and others          (41)        (1,210)
Net cash provided by operating activities              1,431       41,535
Cash flows from investing activities :
 Proceeds from disposal of available-for-sales      93          2,711
financial assets
 Proceeds from disposal of financial assets         0           0
measured at cost
 Acquisition of long-term investments accounted for
under the equity                                       (1)         (16)
method
 Proceeds from capital reduction and liquidation of 106         3,063
investments
 Acquisition of property, plant and equipment       (1,750)     (50,818)
 Acquisition of intangible assets                   (26)        (749)
 Proceeds from disposal of property, plant and      1,000       31
equipment
 Increase in deferred charges                       (22)        (628)
 Increase in other assets - others                  (3)         (105)
Net cash used in investing activities                  (1,602)     (46,511)
Cash flows from financing activities :
 Decrease in short-term loans                       (73)        (2,124)
 Proceeds from long-term loans                      224         6,500
 Repayments of long-term loans                      (58)        (1,691)
 Reacquisition of bonds                             (5)         (139)
 Proceeds from bonds issued                         344         10,000
 Bonds issue cost                                   (0)         (13)
 Cash Dividends                                     (218)       (6,316)
 Exercise of employee stock options                 9           266
 Proceeds from disposal of treasury stock           0           4
 Increase in deposits-in                            2           56
Net cash providedby financing activities               225         6,543
Effect of exchange rate changes on cash and cash       (22)        (639)
equivalents
Net increase in cash and cash equivalents              32          928
Cash and cash equivalents at beginning of period       1,062       30,829
Cash and cash equivalents at end of period             1,094       31,757
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
December 31, 2012 exchange rate of NT $29.03 per U.S. Dollar. All figures are
in ROC GAAP.

Contacts:

Bowen Huang / Peter Lu
UMC, Investor Relations
+886-2-2658-9168, ext. 16904
bowen_huang@umc.com
peter_lu@umc.com

SOURCE United Microelectronics Corporation

Website: http://www.umc.com
Website: http://www.umc.com/english/investors/4Q12_ASP_trend.asp
 
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