United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the second quarter of 2024.
Second quarter consolidated revenue was NT$56.80 billion, increasing 4.0% from NT$54.63 billion in 1Q24. Compared to a year ago, 2Q24 revenue increased 0.9%. Consolidated gross margin for 2Q24 was 35.2%. Net income attributable to the shareholders of the parent was NT$13.79 billion, with earnings per ordinary share of NT$1.11.
Jason Wang, co-president of UMC, said, “In the second quarter, wafer shipments increased 2.6% QoQ and fab utilization rate improved to 68% as we saw notable demand momentum in the consumer segment. Contribution from our 22/28nm business rose sequentially on healthy demand for WiFi and digital TV applications. Together with a favorable exchange rate and improved product mix, second-quarter gross margin was better than what was previously guided. During the quarter, we announced technology updates including a 3D IC solution to stack RFSOI wafers, which is the first of its kind in the industry, and a 22nm embedded high voltage platform, currently the most advanced display driver foundry solution in the market. They reflect UMC’s commitment to building on our leadership across a number of specialty technologies that are crucial for the development of AI, 5G, and automotive.”
Co-president Wang commented, “Looking to the third quarter, we expect to see end market dynamics improve further, particularly in the communication and computing segments, which will drive higher fab utilization. Our 22/28nm business remains a promising growth driver, with a number of tape-outs taking place in the second half for applications including display drivers, connectivity and networking. At the same time, we do expect to face some margin pressure going into the second half due to a pickup in depreciation expense related to capacity expansions as well as higher utility rates. Despite these cost challenges, we believe we will continue to demonstrate our resilience as we did during the recent market downturn, and deliver on our strategy of providing differentiated technology solutions and a diversified manufacturing footprint to help our customers to strengthen their supply chain management.”
Co-president Wang added, “In pursuit of our net-zero by 2050 goal, UMC continues to take concrete steps to drive emissions reduction in our operations and supply chain, and to increase our use of renewable energy. We are on track to achieving our progressive 2025 and 2030 targets. More details on our ESG progress will be made available to stakeholders in our upcoming Sustainability Report.”
Summary of Operating Results
|
Operating Results |
||||||||||
|
(Amount: NT$ million) |
2Q24 |
|
1Q24 |
|
QoQ % |
2Q23 |
|
YoY % |
||
|
Operating Revenues |
56,799 |
|
54,632 |
|
4.0 |
|
56,296 |
|
0.9 |
|
|
Gross Profit |
19,983 |
|
16,899 |
|
18.2 |
|
20,252 |
|
(1.3 |
) |
|
Operating Expenses |
(6,311 |
) |
(5,747 |
) |
9.8 |
|
(5,718 |
) |
10.4 |
|
|
Net Other Operating Income and Expenses |
219 |
|
513 |
|
(57.3 |
) |
1,141 |
|
(80.8 |
) |
|
Operating Income |
13,891 |
|
11,665 |
|
19.1 |
|
15,675 |
|
(11.4 |
) |
|
Net Non-Operating Income and Expenses |
2,529 |
|
1,056 |
|
139.4 |
|
2,810 |
|
(10.0 |
) |
|
Net Income Attributable to Shareholders of the Parent |
13,786 |
|
10,456 |
|
31.8 |
|
15,641 |
|
(11.9 |
) |
|
EPS (NT$ per share) |
1.11 |
|
0.84 |
|
|
1.27 |
|
|
||
|
(US$ per ADS) |
0.171 |
|
0.130 |
|
|
0.196 |
|
|
||
Second quarter operating revenues increased 4.0% sequentially to NT$56.80 billion. Revenue contribution from 40nm and below technologies represented 45% of wafer revenue. Gross profit grew 18.2% QoQ to NT$19.98 billion, or 35.2% of revenue. Operating expenses increased 9.8% to NT$6.31 billion. Net other operating income decreased to NT$0.22 billion. Net non-operating income reached NT$2.53 billion. Net income attributable to shareholders of the parent amounted to NT$13.79 billion.
Earnings per ordinary share for the quarter was NT$1.11. Earnings per ADS was US$0.171. The basic weighted average number of shares outstanding in 2Q24 was 12,414,189,313, compared with 12,414,087,724 shares in 1Q24 and 12,348,986,144 shares in 2Q23. The diluted weighted average number of shares outstanding was 12,529,942,186 in 2Q24, compared with 12,577,525,057 shares in 1Q24 and 12,526,182,161 shares in 2Q23. The fully diluted shares counted on June 30, 2024 were approximately 12,530,243,000.
Detailed Financials Section
Operating revenues increased to NT$56.80 billion. COGS declined 2.4% to NT$36.82 billion. Gross profit grew 18.2% QoQ to NT$19.98 billion. Operating expenses increased to NT$6.31 billion, as R&D grew 13.1% to NT$3.85 billion or 6.8% of revenue, while G&A also increased 6.0% to NT$1.80 billion. Net other operating income was NT$0.22 billion. In 2Q24, operating income increased 19.1% QoQ to NT$13.89 billion.
|
COGS & Expenses |
||||||||||
|
(Amount: NT$ million) |
2Q24 |
|
1Q24 |
|
QoQ % |
2Q23 |
|
YoY % |
||
|
Operating Revenues |
56,799 |
|
54,632 |
|
4.0 |
|
56,296 |
|
0.9 |
|
|
COGS |
(36,816 |
) |
(37,733 |
) |
(2.4 |
) |
(36,044 |
) |
2.1 |
|
|
Depreciation |
(9,460 |
) |
(9,335 |
) |
1.3 |
|
(8,467 |
) |
11.7 |
|
|
Other Mfg. Costs |
(27,356 |
) |
(28,398 |
) |
(3.7 |
) |
(27,577 |
) |
(0.8 |
) |
|
Gross Profit |
19,983 |
|
16,899 |
|
18.2 |
|
20,252 |
|
(1.3 |
) |
|
Gross Margin (%) |
35.2 |
% |
30.9 |
% |
|
36.0 |
% |
|
||
|
Operating Expenses |
(6,311 |
) |
(5,747 |
) |
9.8 |
|
(5,718 |
) |
10.4 |
|
|
Sales & Marketing |
(678 |
) |
(684 |
) |
(0.9 |
) |
(716 |
) |
(5.4 |
) |
|
G&A |
(1,804 |
) |
(1,702 |
) |
6.0 |
|
(1,715 |
) |
5.2 |
|
|
R&D |
(3,853 |
) |
(3,407 |
) |
13.1 |
|
(3,317 |
) |
16.1 |
|
|
Expected credit impairment gain |
24 |
|
46 |
|
(47.9 |
) |
30 |
|
(21.5 |
) |
|
Net Other Operating Income & Expenses |
219 |
|
513 |
|
(57.3 |
) |
1,141 |
|
(80.8 |
) |
|
Operating Income |
13,891 |
|
11,665 |
|
19.1 |
|
15,675 |
|
(11.4 |
) |
Net non-operating income in 2Q24 was NT$2.53 billion, primarily due to the NT$1.44 billion in net investment gain, the NT$0.70 billion in net interest income and the NT$0.41 billion in exchange gain.
|
Non-Operating Income and Expenses |
||||||
|
(Amount: NT$ million) |
2Q24 |
|
1Q24 |
|
2Q23 |
|
|
Non-Operating Income and Expenses |
2,529 |
|
1,056 |
|
2,810 |
|
|
Net Interest Income and Expenses |
701 |
|
676 |
|
974 |
|
|
Net Investment Gain and Loss |
1,440 |
|
(324 |
) |
1,042 |
|
|
Exchange Gain and Loss |
407 |
|
697 |
|
799 |
|
|
Other Gain and Loss |
(19 |
) |
7 |
|
(5 |
) |
In 2Q24, cash inflow from operating activities was NT$22.73 billion. Cash outflow from investing activities totaled NT$15.13 billion, which included NT$20.83 billion in capital expenditure, resulting in free cash inflow of NT$1.90 billion. Cash outflow from financing was NT$5.71 billion, primarily from NT$3.00 billion in redemption of bonds and NT$2.50 billion in bank loans. Net cash flow in 2Q24 amounted to NT$2.23 billion. Over the next 12 months, the company expects to repay NT$4.32 billion in bank loans.
|
Cash Flow Summary |
||||
|
(Amount: NT$ million) |
For the 3-Month Period Ended Jun. 30, 2024 |
For the 3-Month Period Ended Mar. 31, 2024 |
||
|
Cash Flow from Operating Activities |
22,728 |
|
20,820 |
|
|
Net income before tax |
16,420 |
|
12,721 |
|
|
Depreciation & Amortization |
11,117 |
|
10,886 |
|
|
Share of profit of associates and joint ventures |
(1,267 |
) |
(101 |
) |
|
Income tax paid |
(5,831 |
) |
(253 |
) |
|
Changes in working capital & others |
2,289 |
|
(2,433 |
) |
|
Cash Flow from Investing Activities |
(15,131 |
) |
(29,915 |
) |
|
Decrease in financial assets measured at amortized cost |
3,219 |
|
739 |
|
|
Acquisition of PP&E |
(20,042 |
) |
(28,498 |
) |
|
Changes in refundable deposits |
1,507 |
|
(536 |
) |
|
Acquisition of intangible assets |
(578 |
) |
(846 |
) |
|
Others |
763 |
|
(774 |
) |
|
Cash Flow from Financing Activities |
(5,705 |
) |
(6,439 |
) |
|
Bank loans |
(2,503 |
) |
(3,888 |
) |
|
Redemption of bonds |
(3,000 |
) |
(2,100 |
) |
|
Decrease in deposits-in |
(33 |
) |
(282 |
) |
|
Others |
(169 |
) |
(169 |
) |
|
Effect of Exchange Rate |
341 |
|
2,411 |
|
|
Net Cash Flow |
2,233 |
|
(13,123 |
) |
|
Beginning balance |
119,431 |
|
132,554 |
|
|
Changes in non-current assets held for sale |
(430 |
) |
– |
|
|
Ending balance |
121,234 |
|
119,431 |
|
Cash and cash equivalents increased to NT$121.23 billion. Days of inventory increased 3 days to 88 days.
|
Current Assets |
|||||
|
(Amount: NT$ billion) |
2Q24 |
1Q24 |
2Q23 |
||
|
Cash and Cash Equivalents |
121.23 |
119.43 |
163.10 |
||
|
Accounts Receivable |
32.53 |
30.68 |
30.62 |
||
|
Days Sales Outstanding |
51 |
50 |
47 |
||
|
Inventories, net |
36.33 |
34.59 |
34.55 |
||
|
Days of Inventory |
88 |
85 |
85 |
||
|
Total Current Assets |
207.22 |
205.16 |
239.03 |
||
Current liabilities increased to NT$124.97 billion due to dividends payable of NT$37.59 billion. Payables on equipment increased to NT$22.36 billion. Total liabilities increased to NT$230.87 billion, leading to a debt to equity ratio of 65%.
|
Liabilities |
|||||
|
(Amount: NT$ billion) |
2Q24 |
1Q24 |
2Q23 |
||
|
Total Current Liabilities |
124.97 |
88.40 |
142.98 |
||
|
Accounts Payable |
8.18 |
7.46 |
8.83 |
||
|
Short-Term Credit / Bonds |
16.21 |
25.60 |
11.59 |
||
|
Payables on Equipment |
22.36 |
13.97 |
13.01 |
||
|
Dividends Payable |
37.59 |
– |
45.02 |
||
|
Other |
40.63 |
41.37 |
64.53 |
||
|
Long-Term Credit / Bonds |
47.48 |
43.45 |
36.06 |
||
|
Total Liabilities |
230.87 |
188.85 |
226.31 |
||
|
Debt to Equity |
65% |
50% |
69% |
||
Analysis of Revenue2
Revenue from Asia-Pacific was flattish at 64% while business from North America remained unchanged at 25% of sales. Business from Europe declined to 7% while contribution from Japan was 4%.
|
Revenue Breakdown by Region |
|||||
|
Region |
2Q24 |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
|
North America |
25% |
25% |
23% |
27% |
27% |
|
Asia Pacific |
64% |
63% |
62% |
58% |
56% |
|
Europe |
7% |
8% |
11% |
12% |
12% |
|
Japan |
4% |
4% |
4% |
3% |
5% |
Revenue contribution from 22/28nm was 33% of the wafer revenue, while 40nm contribution declined to 12% of sales.
|
Revenue Breakdown by Geometry |
|||||
|
Geometry |
2Q24 |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
|
14nm and below |
0% |
0% |
0% |
0% |
0% |
|
14nm<x<=28nm |
33% |
33% |
36% |
32% |
29% |
|
28nm<x<=40nm |
12% |
14% |
14% |
13% |
12% |
|
40nm<x<=65nm |
15% |
18% |
16% |
19% |
23% |
|
65nm<x<=90nm |
12% |
10% |
9% |
8% |
10% |
|
90nm<x<=0.13um |
11% |
9% |
9% |
12% |
10% |
|
0.13um<x<=0.18um |
10% |
11% |
9% |
9% |
9% |
|
0.18um<x<=0.35um |
5% |
4% |
5% |
5% |
5% |
|
0.5um and above |
2% |
1% |
2% |
2% |
2% |
Revenue from fabless customers accounted for 87% of revenue.
|
Revenue Breakdown by Customer Type |
|||||
|
Customer Type |
2Q24 |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
|
Fabless |
87% |
82% |
78% |
79% |
79% |
|
IDM |
13% |
18% |
22% |
21% |
21% |
Revenue from the communication segment declined to 39%, while business from computer applications grew to 15%. Business from consumer applications reached 31% as other segments declined to 15% of revenue.
|
Revenue Breakdown by Application (1) |
|||||
|
Application |
2Q24 |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
|
Computer |
15% |
13% |
13% |
13% |
9% |
|
Communication |
39% |
48% |
47% |
46% |
44% |
|
Consumer |
31% |
23% |
23% |
23% |
26% |
|
Others |
15% |
16% |
17% |
18% |
21% |
|
(1) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec, keyboard controller, monitor scaler, USB, I/O chipset, WLAN. Communication consists of handset components, broadband, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart cards, toys, etc. |
Blended ASP Trend
Blended average selling price (ASP) remained firm in 2Q24.
(To view blended ASP trend, please click here for 2Q24 ASP)
Shipment and Utilization Rate3
Wafer shipments increased 2.6% QoQ to 831K during the second quarter, while quarterly capacity was 1,257K. Overall utilization rate in 2Q24 increased slightly to 68%.
|
Wafer Shipments |
|||||
|
2Q24 |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
|
|
Wafer Shipments |
831 |
810 |
775 |
795 |
814 |
|
|
|||||
|
Quarterly Capacity Utilization Rate |
|||||
|
|
2Q24 |
1Q24 |
4Q23 |
3Q23 |
2Q23 |
|
Utilization Rate |
68% |
65% |
66% |
67% |
71% |
|
Total Capacity |
1,257 |
1,212 |
1,204 |
1,182 |
1,167 |
Capacity4
Total capacity in the second quarter increased to 1,257K 12-inch equivalent wafers. Capacity will grow in the third quarter of 2024 to 1,274K 12-inch equivalent wafers.
|
Annual Capacity in thousands of wafers |
|
Quarterly Capacity in thousands of wafers |
|||||||||||
|
FAB |
Geometry |
2023 |
2022 |
2021 |
2020 |
|
FAB |
3Q24E |
2Q24 |
1Q24 |
4Q23 |
||
|
WTK |
6″ |
5 – 0.15 |
328 |
335 |
329 |
371 |
|
WTK |
6″ |
83 |
83 |
82 |
83 |
|
8A |
8″ |
3 – 0.11 |
811 |
765 |
755 |
802 |
|
8A |
8″ |
207 |
207 |
206 |
207 |
|
8C |
8″ |
0.35 – 0.11 |
473 |
459 |
459 |
452 |
|
8C |
8″ |
119 |
119 |
119 |
119 |
|
8D |
8″ |
0.18 – 0.09 |
440 |
410 |
380 |
371 |
|
8D |
8″ |
118 |
118 |
118 |
118 |
|
8E |
8″ |
0.6 – 0.14 |
490 |
469 |
457 |
449 |
|
8E |
8″ |
131 |
131 |
130 |
131 |
|
8F |
8″ |
0.18 – 0.11 |
570 |
550 |
514 |
485 |
|
8F |
8″ |
145 |
145 |
144 |
145 |
|
8S |
8″ |
0.18 – 0.11 |
447 |
443 |
408 |
373 |
|
8S |
8″ |
114 |
114 |
113 |
114 |
|
8N |
8″ |
0.5 – 0.11 |
996 |
952 |
917 |
917 |
|
8N |
8″ |
254 |
254 |
252 |
254 |
|
12A |
12″ |
0.13 – 0.014 |
1,305 |
1,170 |
1,070 |
1,044 |
|
12A |
12″ |
403 |
386 |
358 |
346 |
|
12i |
12″ |
0.13 – 0.040 |
655 |
655 |
641 |
628 |
|
12i |
12″ |
172 |
172 |
164 |
164 |
|
12X |
12″ |
0.080 – 0.022 |
317 |
314 |
284 |
217 |
|
12X |
12″ |
80 |
80 |
79 |
80 |
|
12M |
12″ |
0.13 – 0.040 |
438 |
436 |
395 |
391 |
|
12M |
12″ |
115 |
115 |
110 |
110 |
|
Total(1) |
4,674 |
4,458 |
4,201 |
4,083 |
|
Total |
1,274 |
1,257 |
1,212 |
1,204 |
|||
|
YoY Growth Rate |
5% |
6% |
3% |
13% |
|
|
|
|
|
|
|||
(1) One 6-inch wafer is converted into 0.25 (62/122) 12-inch equivalent wafer; one 8-inch wafer is converted into 0.44 (82/122) 12-inch equivalent wafers. Total capacity figures are expressed in 12-inch equivalent wafers.
CAPEX
CAPEX spending in 2Q24 totaled US$644 million. 2024 cash-based CAPEX budget will be US$3.3 billion.
|
Capital Expenditure by Year – in US$ billion |
|||||
|
Year |
2023 |
2022 |
2021 |
2020 |
2019 |
|
CAPEX |
$ 3.0 |
$ 2.7 |
$ 1.8 |
$ 1.0 |
$ 0.6 |
| 2024 CAPEX Plan | ||
|
8″ |
12″ |
Total |
|
5% |
95% |
US$3.3 billion |
Third Quarter 2024 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Wafer Shipments: Will increase by mid-single digit %
- ASP in USD: Will remain firm
- Gross Profit Margin: Will be in the mid-30% range
- Capacity Utilization: approximately 70%
- 2024 CAPEX: US$3.3 billion
Recent Developments / Announcements
Please visit UMC’s website for further details regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, July 31, 2024
Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM (London)
|
Dial-in numbers and Access Codes: |
|
|
|
Taiwan Number: |
|
02 3396 1191 |
|
Taiwan Toll Free: |
|
0080 119 6666 |
|
US Toll Free: |
|
+1 866 212 5567 |
|
Other Areas: |
|
+886 2 3396 1191 |
|
|
|
|
|
Access Code: |
|
1433531# |
A live webcast and replay of the 2Q24 results announcement will be available at www.umc.com under the “Investors / Events” section.
About UMC
UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry company. The company provides high-quality IC fabrication services, focusing on logic and various specialty technologies to serve all major sectors of the electronics industry. UMC’s comprehensive IC processing technologies and manufacturing solutions include Logic/Mixed-Signal, embedded High-Voltage, embedded Non-Volatile-Memory, RFSOI, BCD etc. Most of UMC’s 12-in and 8-in fabs with its core R&D are in Taiwan, with additional ones throughout Asia. UMC has a total of 12 fabs in production with a combined capacity of more than 400,000 wafers per month (12-in equivalent), and all of them are certified with IATF 16949 automotive quality standards. UMC is headquartered in Hsinchu, Taiwan, plus local offices in the United States, Europe, China, Japan, Korea, and Singapore, with a worldwide total of 20,000 employees. For more information, please visit: http://www.umc.com.
Safe Harbor Statements
This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding anticipated financial results for the second quarter of 2024; the expected wafer shipment and ASP; the anticipated annual budget; capex strategies; environmental protection goals and water management strategies; impact of foreign currency exchange rates; expected foundry capacities; the ability to obtain new business opportunities; and information under the heading “Third Quarter 2024 Outlook and Guidance.”
These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) dependence upon the frequent introduction of new services and technologies based on the latest developments in the industry in which UMC operates; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international business activities; (iv) dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including natural disasters, terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risk factors is included in UMC’s filings with the United States Securities and Exchange Commission, including its Annual Report on Form 20-F. All information provided in this release is as of the date of this release and are based on assumptions that UMC believes to be reasonable as of this date, and UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
The financial statements included in this release are prepared and published in accordance with Taiwan International Financial Reporting Standards, or TIFRSs, recognized by the Financial Supervisory Commission in the ROC, which is different from International Financial Reporting Standards, or IFRSs, issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from generally accepted accounting principles in the ROC and generally accepted accounting principles in the United States.
– FINANCIAL TABLES TO FOLLOW –
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||
| Consolidated Condensed Balance Sheet | |||||
| As of June 30, 2024 | |||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||
| June 30, 2024 | |||||
| US$ | NT$ | % | |||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents |
3,738 |
121,234 |
20.7% |
||
| Accounts receivable, net |
1,003 |
32,525 |
5.6% |
||
| Inventories, net |
1,120 |
36,334 |
6.2% |
||
| Other current assets |
528 |
17,122 |
2.8% |
||
| Total current assets |
6,389 |
207,215 |
35.3% |
||
| Non-current assets | |||||
| Funds and investments |
2,418 |
78,404 |
13.4% |
||
| Property, plant and equipment |
8,450 |
274,031 |
46.7% |
||
| Right-of-use assets |
233 |
7,549 |
1.3% |
||
| Other non-current assets |
609 |
19,763 |
3.3% |
||
| Total non-current assets |
11,710 |
379,747 |
64.7% |
||
| Total assets |
18,099 |
586,962 |
100.0% |
||
| Liabilities | |||||
| Current liabilities | |||||
| Short-term loans |
96 |
3,119 |
0.5% |
||
| Payables |
1,861 |
60,362 |
10.3% |
||
| Dividends payable |
1,159 |
37,587 |
6.4% |
||
| Current portion of long-term liabilities |
404 |
13,091 |
2.2% |
||
| Other current liabilities |
334 |
10,814 |
1.9% |
||
| Total current liabilities |
3,854 |
124,973 |
21.3% |
||
| Non-current liabilities | |||||
| Bonds payable |
758 |
24,582 |
4.2% |
||
| Long-term loans |
706 |
22,901 |
3.9% |
||
| Lease liabilities, noncurrent |
163 |
5,288 |
0.9% |
||
| Other non-current liabilities |
1,638 |
53,126 |
9.0% |
||
| Total non-current liabilities |
3,265 |
105,897 |
18.0% |
||
| Total liabilities |
7,119 |
230,870 |
39.3% |
||
| Equity | |||||
| Equity attributable to the parent company | |||||
| Capital |
3,863 |
125,286 |
21.3% |
||
| Additional paid-in capital |
443 |
14,346 |
2.5% |
||
| Retained earnings and other components of equity |
6,665 |
216,147 |
36.8% |
||
| Total equity attributable to the parent company |
10,971 |
355,779 |
60.6% |
||
| Non-controlling interests |
9 |
313 |
0.1% |
||
| Total equity |
10,980 |
356,092 |
60.7% |
||
| Total liabilities and equity |
18,099 |
586,962 |
100.0% |
||
|
|
|||||
| Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2024 exchange rate of NT $32.43 per U.S. Dollar. | |||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||||||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||||||||||||||||||||
| Except Per Share and Per ADS Data | |||||||||||||||||||||||||||||
| Year over Year Comparison | Quarter over Quarter Comparison | ||||||||||||||||||||||||||||
| Three-Month Period Ended | Three-Month Period Ended | ||||||||||||||||||||||||||||
| June 30, 2024 | June 30, 2023 | Chg. | June 30, 2024 | March 31, 2024 | Chg. | ||||||||||||||||||||||||
| US$ | NT$ | US$ | NT$ | % | US$ | NT$ | US$ | NT$ | % | ||||||||||||||||||||
| Operating revenues |
1,751 |
|
56,799 |
|
1,736 |
|
56,296 |
|
0.9 |
% |
1,751 |
|
56,799 |
|
1,685 |
|
54,632 |
|
4.0 |
% |
|||||||||
| Operating costs |
(1,135 |
) |
(36,816 |
) |
(1,112 |
) |
(36,044 |
) |
2.1 |
% |
(1,135 |
) |
(36,816 |
) |
(1,164 |
) |
(37,733 |
) |
(2.4 |
%) |
|||||||||
| Gross profit |
616 |
|
19,983 |
|
624 |
|
20,252 |
|
(1.3 |
%) |
616 |
|
19,983 |
|
521 |
|
16,899 |
|
18.2 |
% |
|||||||||
|
35.2 |
% |
35.2 |
% |
36.0 |
% |
36.0 |
% |
35.2 |
% |
35.2 |
% |
30.9 |
% |
30.9 |
% |
||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||
| – Sales and marketing expenses |
(21 |
) |
(678 |
) |
(22 |
) |
(716 |
) |
(5.4 |
%) |
(21 |
) |
(678 |
) |
(21 |
) |
(684 |
) |
(0.9 |
%) |
|||||||||
| – General and administrative expenses |
(56 |
) |
(1,804 |
) |
(53 |
) |
(1,715 |
) |
5.2 |
% |
(56 |
) |
(1,804 |
) |
(52 |
) |
(1,702 |
) |
6.0 |
% |
|||||||||
| – Research and development expenses |
(119 |
) |
(3,853 |
) |
(102 |
) |
(3,317 |
) |
16.1 |
% |
(119 |
) |
(3,853 |
) |
(105 |
) |
(3,407 |
) |
13.1 |
% |
|||||||||
| – Expected credit impairment gain |
1 |
|
24 |
|
1 |
|
30 |
|
(21.5 |
%) |
1 |
|
24 |
|
1 |
|
46 |
|
(47.9 |
%) |
|||||||||
| Subtotal |
(195 |
) |
(6,311 |
) |
(176 |
) |
(5,718 |
) |
10.4 |
% |
(195 |
) |
(6,311 |
) |
(177 |
) |
(5,747 |
) |
9.8 |
% |
|||||||||
| Net other operating income and expenses |
7 |
|
219 |
|
35 |
|
1,141 |
|
(80.8 |
%) |
7 |
|
219 |
|
16 |
|
513 |
|
(57.3 |
%) |
|||||||||
| Operating income |
428 |
|
13,891 |
|
483 |
|
15,675 |
|
(11.4 |
%) |
428 |
|
13,891 |
|
360 |
|
11,665 |
|
19.1 |
% |
|||||||||
|
24.5 |
% |
24.5 |
% |
27.8 |
% |
27.8 |
% |
24.5 |
% |
24.5 |
% |
21.4 |
% |
21.4 |
% |
||||||||||||||
| Net non-operating income and expenses |
78 |
|
2,529 |
|
87 |
|
2,810 |
|
(10.0 |
%) |
78 |
|
2,529 |
|
32 |
|
1,056 |
|
139.4 |
% |
|||||||||
| Income from continuing operations before income tax |
506 |
|
16,420 |
|
570 |
|
18,485 |
|
(11.2 |
%) |
506 |
|
16,420 |
|
392 |
|
12,721 |
|
29.1 |
% |
|||||||||
|
28.9 |
% |
28.9 |
% |
32.8 |
% |
32.8 |
% |
28.9 |
% |
28.9 |
% |
23.3 |
% |
23.3 |
% |
||||||||||||||
| Income tax expense |
(81 |
) |
(2,645 |
) |
(80 |
) |
(2,588 |
) |
2.2 |
% |
(81 |
) |
(2,645 |
) |
(70 |
) |
(2,291 |
) |
15.4 |
% |
|||||||||
| Net income |
425 |
|
13,775 |
|
490 |
|
15,897 |
|
(13.3 |
%) |
425 |
|
13,775 |
|
322 |
|
10,430 |
|
32.1 |
% |
|||||||||
|
24.3 |
% |
24.3 |
% |
28.2 |
% |
28.2 |
% |
24.3 |
% |
24.3 |
% |
19.1 |
% |
19.1 |
% |
||||||||||||||
| Other comprehensive income (loss) |
42 |
|
1,375 |
|
(7 |
) |
(238 |
) |
– |
|
42 |
|
1,375 |
|
245 |
|
7,954 |
|
(82.7 |
%) |
|||||||||
| Total comprehensive income (loss) |
467 |
|
15,150 |
|
483 |
|
15,659 |
|
(3.2 |
%) |
467 |
|
15,150 |
|
567 |
|
18,384 |
|
(17.6 |
%) |
|||||||||
| Net income attributable to: | |||||||||||||||||||||||||||||
| Shareholders of the parent |
425 |
|
13,786 |
|
482 |
|
15,641 |
|
(11.9 |
%) |
425 |
|
13,786 |
|
322 |
|
10,456 |
|
31.8 |
% |
|||||||||
| Non-controlling interests |
(0 |
) |
(11 |
) |
8 |
|
256 |
|
– |
|
(0 |
) |
(11 |
) |
(0 |
) |
(26 |
) |
(58.8 |
%) |
|||||||||
| Comprehensive income (loss) attributable to: | |||||||||||||||||||||||||||||
| Shareholders of the parent |
467 |
|
15,161 |
|
475 |
|
15,403 |
|
(1.6 |
%) |
467 |
|
15,161 |
|
568 |
|
18,410 |
|
(17.6 |
%) |
|||||||||
| Non-controlling interests |
(0 |
) |
(11 |
) |
8 |
|
256 |
|
– |
|
(0 |
) |
(11 |
) |
(1 |
) |
(26 |
) |
(58.8 |
%) |
|||||||||
| Earnings per share-basic |
0.034 |
|
1.11 |
|
0.039 |
|
1.27 |
|
0.034 |
|
1.11 |
|
0.026 |
|
0.84 |
|
|||||||||||||
| Earnings per ADS (2) |
0.171 |
|
5.55 |
|
0.196 |
|
6.35 |
|
0.171 |
|
5.55 |
|
0.130 |
|
4.20 |
|
|||||||||||||
| Weighted average number of shares | |||||||||||||||||||||||||||||
| outstanding (in millions) |
12,414 |
|
12,349 |
|
12,414 |
|
12,414 |
|
|||||||||||||||||||||
| Notes: | |||||||||||||||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2024 exchange rate of NT $32.43 per U.S. Dollar. | |||||||||||||||||||||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||||||||||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||||||||
| Except Per Share and Per ADS Data | |||||||||||||||||
| For the Three-Month Period Ended | For the Six-Month Period Ended | ||||||||||||||||
| June 30, 2024 | June 30, 2024 | ||||||||||||||||
| US$ | NT$ | % | US$ | NT$ | % | ||||||||||||
| Operating revenues |
1,751 |
|
56,799 |
|
100.0 |
% |
3,436 |
|
111,431 |
|
100.0 |
% |
|||||
| Operating costs |
(1,135 |
) |
(36,816 |
) |
(64.8 |
%) |
(2,299 |
) |
(74,548 |
) |
(66.9 |
%) |
|||||
| Gross profit |
616 |
|
19,983 |
|
35.2 |
% |
1,137 |
|
36,883 |
|
33.1 |
% |
|||||
| Operating expenses | |||||||||||||||||
| – Sales and marketing expenses |
(21 |
) |
(678 |
) |
(1.2 |
%) |
(42 |
) |
(1,362 |
) |
(1.2 |
%) |
|||||
| – General and administrative expenses |
(56 |
) |
(1,804 |
) |
(3.1 |
%) |
(108 |
) |
(3,506 |
) |
(3.2 |
%) |
|||||
| – Research and development expenses |
(119 |
) |
(3,853 |
) |
(6.8 |
%) |
(224 |
) |
(7,260 |
) |
(6.5 |
%) |
|||||
| – Expected credit impairment gain |
1 |
|
24 |
|
0.0 |
% |
2 |
|
69 |
|
0.1 |
% |
|||||
| Subtotal |
(195 |
) |
(6,311 |
) |
(11.1 |
%) |
(372 |
) |
(12,059 |
) |
(10.8 |
%) |
|||||
| Net other operating income and expenses |
7 |
|
219 |
|
0.4 |
% |
23 |
|
732 |
|
0.6 |
% |
|||||
| Operating income |
428 |
|
13,891 |
|
24.5 |
% |
788 |
|
25,556 |
|
22.9 |
% |
|||||
| Net non-operating income and expenses |
78 |
|
2,529 |
|
4.4 |
% |
111 |
|
3,585 |
|
3.3 |
% |
|||||
| Income from continuing operations before income tax |
506 |
|
16,420 |
|
28.9 |
% |
899 |
|
29,141 |
|
26.2 |
% |
|||||
| Income tax expense |
(81 |
) |
(2,645 |
) |
(4.6 |
%) |
(153 |
) |
(4,936 |
) |
(4.5 |
%) |
|||||
| Net income |
425 |
|
13,775 |
|
24.3 |
% |
746 |
|
24,205 |
|
21.7 |
% |
|||||
| Other comprehensive income (loss) |
42 |
|
1,375 |
|
2.4 |
% |
288 |
|
9,329 |
|
8.4 |
% |
|||||
| Total comprehensive income (loss) |
467 |
|
15,150 |
|
26.7 |
% |
1,034 |
|
33,534 |
|
30.1 |
% |
|||||
| Net income attributable to: | |||||||||||||||||
| Shareholders of the parent |
425 |
|
13,786 |
|
24.3 |
% |
748 |
|
24,242 |
|
21.8 |
% |
|||||
| Non-controlling interests |
(0 |
) |
(11 |
) |
(0.0 |
%) |
(2 |
) |
(37 |
) |
(0.1 |
%) |
|||||
| Comprehensive income (loss) attributable to: | |||||||||||||||||
| Shareholders of the parent |
467 |
|
15,161 |
|
26.7 |
% |
1,035 |
|
33,571 |
|
30.1 |
% |
|||||
| Non-controlling interests |
(0 |
) |
(11 |
) |
(0.0 |
%) |
(1 |
) |
(37 |
) |
(0.0 |
%) |
|||||
| Earnings per share-basic |
0.034 |
|
1.11 |
|
0.060 |
|
1.95 |
|
|||||||||
| Earnings per ADS (2) |
0.171 |
|
5.55 |
|
0.301 |
|
9.75 |
|
|||||||||
| Weighted average number of shares outstanding (in millions) |
12,414 |
|
12,414 |
|
|||||||||||||
| Notes: | |||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2024 exchange rate of NT $32.43 per U.S. Dollar. | |||||||||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||
| Consolidated Condensed Statement of Cash Flows | |||||
| For The Six-Month Period Ended June 30, 2024 | |||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||
| US$ | NT$ | ||||
| Cash flows from operating activities : | |||||
| Net income before tax |
899 |
|
29,141 |
|
|
| Depreciation & Amortization |
678 |
|
22,003 |
|
|
| Share of profit of associates and joint ventures |
(42 |
) |
(1,368 |
) |
|
| Income tax paid |
(188 |
) |
(6,084 |
) |
|
| Changes in working capital & others |
(4 |
) |
(144 |
) |
|
| Net cash provided by operating activities |
1,343 |
|
43,548 |
|
|
| Cash flows from investing activities : | |||||
| Decrease in financial assets measured at amortized cost |
122 |
|
3,958 |
|
|
| Acquisition of property, plant and equipment |
(1,497 |
) |
(48,540 |
) |
|
| Acquisition of intangible assets |
(44 |
) |
(1,424 |
) |
|
| Others |
30 |
|
960 |
|
|
| Net cash used in investing activities |
(1,389 |
) |
(45,046 |
) |
|
| Cash flows from financing activities : | |||||
| Decrease in short-term loans |
(321 |
) |
(10,411 |
) |
|
| Redemption of bonds |
(157 |
) |
(5,100 |
) |
|
| Proceeds from long-term loans |
358 |
|
11,600 |
|
|
| Repayments of long-term loans |
(234 |
) |
(7,580 |
) |
|
| Others |
(20 |
) |
(653 |
) |
|
| Net cash used in financing activities |
(374 |
) |
(12,144 |
) |
|
| Effect of exchange rate changes on cash and cash equivalents |
85 |
|
2,752 |
|
|
| Net decrease in cash and cash equivalents |
(335 |
) |
(10,890 |
) |
|
| Cash and cash equivalents at beginning of period |
4,087 |
|
132,554 |
|
|
| Cash and cash equivalents at end of period |
3,752 |
|
121,664 |
|
|
| Reconciliation of the balances of cash and cash equivalents at end of period : | |||||
| Cash and cash equivalents balances on the consolidated balance sheets |
3,738 |
|
121,234 |
|
|
| Cash and cash equivalents included in non-current assets held for sale |
14 |
|
430 |
|
|
| Cash and cash equivalents at end of period |
3,752 |
|
121,664 |
|
|
| Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2024 exchange rate of NT $32.43 per U.S. Dollar. | |||||
1Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending June 30, 2024, the three-month period ending March 31, 2024, and the equivalent three-month period that ended June 30, 2023. For all 2Q24 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the June 30, 2024 exchange rate of NT$ 32.43 per U.S. Dollar.
2 Revenue in this section represents wafer sales
3 Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
4 Estimated capacity numbers are based on calculated maximum output rather than designed capacity. The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp-up.
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