UMC Reports Third Quarter 2018 Results

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303)
(“UMC” or “The Company”), a leading global semiconductor foundry, today
announced its consolidated operating results for the third quarter of
2018.

Third quarter consolidated revenue was NT$39.39 billion, up 1.4% QoQ
from NT$38.85 billion in 2Q18 and 4.5% YoY from NT$37.70 billion in
3Q17. Consolidated gross margin for 3Q18 was 17.6%. Net income
attributable to stockholders of the parent was NT$1.72 billion, with
earnings per ordinary share of NT$0.14.

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

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

1 Unless 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 September 30, 2018, the three-month period ending June 30, 2018, and the equivalent three-month period that ended September 30, 2017. For all 3Q18 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the September 30, 2018 exchange rate of NT$ 30.53 per U.S. Dollar.

Summary of Operating Results

Operating Results
(Amount: NT$ million)				3Q18		2Q18		QoQ % change		3Q17		YoY % change
Net Operating Revenues				39,387		38,852		1.4		37,698		4.5
Gross Profit				6,922		6,675		3.7		6,592		5.0
Operating Expenses				(5,702)		(5,213)		9.4		(5,404)		5.5
Net Other Operating Income and Expenses				1,215		1,719		(29.3)		441		175.5
Operating Income				2,435		3,181		(23.5)		1,629		49.5
Net Non-Operating Income and Expenses				(1,606)		(1,095)		46.7		1,236		-
Net Income Attributable to Stockholders of the Parent				1,720		3,659		(53.0)		3,473		(50.5)
EPS (NT$ per share)				0.14		0.30				0.28
(US$ per ADS)				0.023		0.049				0.046

Net operating revenues in 3Q18 increased 1.4% to NT$39.39 billion,
including NT$39.33 billion from the foundry segment. Revenue
contribution from 40nm and below technologies declined to 40%. Gross
profit increased 3.7% to NT$6.92 billion, or 17.6% of revenue. Operating
expenses increased 9.4% to NT$5.70 billion. Net other operating income
was NT$1.21 billion, leading to operating income of NT$2.44 billion. Net
non-operating expense was NT$1.61 billion. Net income attributable to
stockholders of the parent was NT$1.72 billion.

Earnings per ordinary share for the quarter was NT$0.14. Earnings per
ADS was US$0.023. The basic weighted average number of outstanding
shares in 3Q18 was 12,053,892,152, compared with 12,048,575,089 shares
in 2Q18 and 12,208,239,978 shares in 3Q17. The diluted weighted average
number of outstanding shares was 13,354,955,886 in 3Q18, compared with
13,268,862,054 shares in 2Q18 and 13,441,188,010 shares in 3Q17. The
fully diluted share count on September 30, 2018 was approximately
13,725,383,000. On September 30, 2018, UMC held 200 million treasury
shares acquired from the 17th share buy-back programs.

Detailed Financials Section

Net operating revenues grew 1.4% to NT$39.39 billion. COGS increased
0.9% to NT$32.47 billion, as depreciation declined 4.9% to NT$11.55
billion while other manufacturing costs increased 4.4% to NT$20.92
billion. Gross profit was NT$6.92 billion. Operating expenses increased
9.4% to NT$5.70 billion. General and Administrative (G&A) expenses
increased 28% to NT$1.39 billion. Sales & Marketing expenses declined
10.5% to NT$0.99 billion and R&D expenses were up 10% to NT$3.33
billion, or 8.5% of net operating revenues. Net other operating income
was NT$1.21 billion, leading to an operating income of NT$2.44 billion.

COGS & Expenses
(Amount: NT$ million)				3Q18		2Q18		QoQ % change		3Q17		YoY % change
Net Operating Revenues				39,387		38,852		1.4		37,698		4.5
COGS				(32,465)		(32,177)		0.9		(31,106)		4.4
Depreciation				(11,549)		(12,139)		(4.9)		(11,145)		3.6
Other Mfg. Costs				(20,916)		(20,038)		4.4		(19,961)		4.8
Gross Profit				6,922		6,675		3.7		6,592		5.0
Gross Margin (%)				17.6%		17.2%				17.5%
Operating Expenses				(5,702)		(5,213)		9.4		(5,404)		5.5
G&A				(1,386)		(1,083)		28.0		(991)		39.9
Sales & Marketing				(987)		(1,103)		(10.5)		(1,070)		(7.8)
R&D				(3,329)		(3,027)		10.0		(3,343)		(0.4)
Net Other Operating Income & Expenses				1,215		1,719		(29.3)		441		175.5
Operating Income				2,435		3,181		(23.5)		1,629		49.5

Net non-operating expense in 3Q18 was NT$1.61 billion, primarily
resulting from NT$961 million in exchange loss and NT$507 million in net
interest expense.

Non-Operating Income and Expenses
(Amount: NT$ million)				3Q18		2Q18		3Q17
Non-Operating Income and Expenses				(1,606)		(1,095)		1,236
Net Interest Income and Expenses				(507)		(505)		(538)
Net Investment Gain and Loss				(126)		105		1,016
Exchange Gain and Loss				(961)		(720)		776
Other Gain and Loss				(12)		25		(18)

Cash inflow from operating activities was NT$15.77 billion. Cash outflow
from investing activities totaled NT$5.48 billion, including NT$5.61
billion in CAPEX spending for the foundry segment, resulting in free
cash flow of NT$10.16 billion. Cash outflow from financing activities
totaled NT$3.25 billion, mainly from NT$8.56 billion in the payment of
cash dividends, which was partly offset by cash inflows of NT$3.11
billion from bank loans and NT$2.20 billion in treasury stock sold to
employees. Net cash inflow in 3Q18 was NT$6.33 billion. Over the next 12
months, the company expects to repay NT$3.01 billion in bank loans.

Cash Flow Summary
(Amount: NT$ million)				For the 3-Month Period Ended Sep. 30, 2018		For the 3-Month Period Ended Jun. 30, 2018
Cash Flow from Operating Activities				15,772		14,264
Net income before tax				829		2,086
Depreciation & Amortization				12,973		13,373
Net loss of financial assets and liabilities at FVTPL				797		112
Exchange loss on financial assets and liabilities				1,126		1,516
Changes in working capital				158		(1,354)
Interest paid				(94)		(911)
Income tax paid				(134)		(86)
Other				117		(472)
Cash Flow from Investing Activities				(5,476)		(6,077)
Capital expenditures				(5,612)		(3,901)
Acquisition of investments accounted for under the equity method				-		(840)
Changes in refundable deposits				58		(980)
Acquisition of intangible assets				(169)		(130)
Other				247		(226)
Cash Flow from Financing Activities				(3,253)		(10,795)
Bank loans				3,114		(8,859)
Treasury stock acquired				-		(2,534)
Treasury stock sold to employees				2,204		-
Cash dividends				(8,557)		-
Other				(14)		598
Effect of Exchange Rate				(716)		657
Net Cash Flow				6,327		(1,951)

Cash and cash equivalents increased to NT$81.52 billion. Days of
inventory increased one day to 50 days.

Current Assets
(Amount: NT$ billion)				3Q18		2Q18		3Q17
Cash and Cash Equivalents				81.52		75.19		69.94
Notes & Accounts Receivable				25.61		27.01		22.61
Days Sales Outstanding				61		61		54
Inventories, net				17.59		17.66		17.10
Days of Inventory				50		49		49
Total Current Assets				140.15		137.08		124.71

Current liabilities decreased to NT$51.43 billion. Total liabilities
decreased to NT$160.11 billion, leading to a debt to equity ratio of 75%.

Liabilities
(Amount: NT$ billion)				3Q18		2Q18		3Q17
Total Current Liabilities				51.43		59.17		82.36
Notes & Accounts Payable				6.89		7.41		6.61
Short-Term Credit / Bonds				20.33		17.23		48.74
Payable on Equipment				2.59		3.61		5.23
Dividends payable				-		8.56		-
Other				21.62		22.36		21.78
Long-Term Credit / Bonds				67.46		67.76		52.36
Long-Term Investment Liabilities				20.16		20.79		20.34
Total Liabilities				160.11		170.11		169.74
Debt to Equity				75%		81%		79%

Analysis of Revenue² for Foundry Segment

Revenue from Asia Pacific increased to 52%, while sales contribution
from North American customers declined to 34%. Revenue from Japan
remained at 3%.

Revenue Breakdown by Region
Region				3Q18		2Q18		1Q18		4Q17		3Q17
North America				34%		37%		42%		43%		43%
Asia Pacific				52%		51%		47%		45%		47%
Europe				11%		9%		8%		9%		8%
Japan				3%		3%		3%		3%		2%

Business from 14nm increased to 5% of 3Q18 revenue, while 28nm
contribution declined to 13%.

Revenue Breakdown by Geometry
Geometry				3Q18		2Q18		1Q18		4Q17		3Q17
14nm and below				5%		3%		2%		2%		1%
14nm<x<=28nm				13%		15%		12%		15%		15%
28nm<x<=40nm				22%		26%		30%		28%		29%
40nm<x<=65nm				12%		12%		13%		12%		12%
65nm<x<=90nm				10%		7%		6%		5%		6%
90nm<x<=0.13um				11%		11%		11%		12%		12%
0.13um<x<=0.18um				14%		13%		13%		13%		12%
0.18um<x<=0.35um				10%		10%		10%		10%		10%
0.5um and above				3%		3%		3%		3%		3%

Revenue from fabless customers increased to 93% of revenue.

Revenue Breakdown by Customer Type
Customer Type				3Q18		2Q18		1Q18		4Q17		3Q17
Fabless				93%		92%		92%		91%		90%
IDM				7%		8%		8%		9%		10%

The communication segment declined to 43% of sales, while revenue from
consumer applications remained at 28%. Computer related applications
represented 19% of revenue.

Revenue Breakdown by Application (1)
Application				3Q18		2Q18		1Q18		4Q17		3Q17
Computer				19%		16%		14%		13%		14%
Communication				43%		47%		47%		49%		47%
Consumer				28%		28%		29%		29%		31%
Others				10%		9%		10%		9%		8%

(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.

2 Revenue in this section represents wafer sales

Blended ASP Trend for Foundry Segment

Blended average selling price (ASP) in 3Q18 increased marginally.

(To view ASP trend, visit http://www.umc.com/english/investors/3Q18_ASP_trend.asp)

Shipment and Utilization Rate³ for Foundry
Segment

In 3Q18, wafer shipments declined 2.3% to 1,804K. Quarterly capacity
increased 1.0% QoQ to 1,938K, resulting in an overall utilization rate
of 94%.

Wafer Shipments
				3Q18		2Q18		1Q18		4Q17		3Q17
Wafer Shipments (8” K equivalents)				1,804		1,846		1,747		1,670		1,748
Quarterly Capacity Utilization Rate
				3Q18		2Q18		1Q18		4Q17		3Q17
Utilization Rate				94%		97%		94%		90%		96%
Total Capacity (8” K equivalents)				1,938		1,918		1,858		1,886		1,861

3 Utilization Rate = Quarterly Wafer Out / Quarterly Capacity

Capacity⁴ for Foundry Segment

Total capacity in the third quarter reached 1,938K 8-inch equivalent
wafers. We anticipate our fourth quarter capacity to grow by
approximately 1% QoQ to 1,958K 8-inch equivalent wafers, which included
capacity expansion at Fab 8C and Fab 8D.

Annual Capacity in thousands of wafers																Quarterly Capacity in thousands of wafers
FAB				Geometry (um)		2017		2016		2015		2014				FAB		4Q18E		3Q18		2Q18		1Q18
WTK		6"		3.5 – 0.45		422		423		421		448				WTK		93		93		106		104
Fab 8A		8"		0.5 – 0.25		825		827		813		813				Fab 8A		207		207		207		204
Fab 8C		8"		0.35 – 0.11		357		348		347		347				Fab 8C		108		92		92		91
Fab 8D		8"		0.13 – 0.09		341		342		341		358				Fab 8D		90		86		86		85
Fab 8E		8"		0.5 – 0.18		418		419		418		418				Fab 8E		105		105		105		103
Fab 8F		8"		0.18 – 0.11		417		401		388		388				Fab 8F		108		108		108		107
Fab 8S		8"		0.18 – 0.11		347		336		335		335				Fab 8S		93		93		93		92
HJ		8"		0.5 – 0.11		753		750		667		547				HJ		194		194		194		190
Fab 12A		12"		0.13 – 0.014		970		885		793		700				Fab 12A		250		250		250		246
Fab 12i		12"		0.13 – 0.040		537		584		572		573				Fab 12i		144		144		136		131
USCXM		12"		0.040 – 0.028		97		9		-		-				USCXM		51		51		46		35
Total(1)						7,304		6,983		6,617		6,323				Total		1,958		1,938		1,918		1,858
YoY Growth Rate						5%		6%		5%		4%

(1)One 6-inch wafer is converted into 0.5625(62/82) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25(122/82) 8-inch equivalent wafers. Capacity total figures are expressed in 8-inch equivalent wafers.

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.

CAPEX for Foundry Segment

CAPEX spending in 3Q18 was US$183 million, bringing the first nine
months of 2018 capital expenditures to US$509 million. Full year 2018
CAPEX is budgeted for US$1.1 billion.

Capital Expenditure by Year - in US$ billion
Year		2017		2016		2015		2014		2013
CAPEX		$ 1.4		$ 2.8		$ 1.9		$ 1.4		$ 1.1
2018 CAPEX Plan
8"				12"				Total
33%				67%				US$1.1 billion

Fourth Quarter of 2018 Outlook & Guidance

Quarter-over-Quarter Guidance:

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

Recent Developments / Announcements

Sep. 13, 2018				UMC Selected as a DJSI Global Component for 11(th) Consecutive Year
Aug. 20, 2018				UMC Shareholders Approve Agenda Items at Company's 2018 First Extraordinary General Meeting
Jul. 31, 2018				Allegro MicroSystems and UMC Sign Long-Term Foundry Agreement
Jul 25, 2018				UMC 2Q 2018 Financial Results

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

Conference Call / Webcast Announcement

Wednesday, October 24, 2018
Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM (London)
Dial-in numbers and Access Codes:
USA Toll Free:				1-866 836-0101
Taiwan Number:				02-2192-8016
Other Areas:				+886-2-2192-8016
Access Code:				UMC

A live webcast and replay of the 3Q18 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
that provides advanced IC production for applications spanning every
major sector of the electronics industry. UMC’s comprehensive foundry
solutions enable chip designers to leverage the company’s sophisticated
technology and manufacturing, which include world-class 28nm
High-K/Metal Gate technology, 14nm FinFET volume production, specialty
process platforms specifically developed for AI, 5G and IoT applications
and the automotive industry’s highest-rated AEC-Q100 Grade-0
manufacturing capabilities for the production of ICs found in vehicles.
UMC’s 11 wafer fabs are strategically located throughout Asia and are
able to produce over 600,000 wafers per month. The company employs more
than 20,000 people worldwide, with offices in Taiwan, China, Europe,
Japan, Korea, Singapore, 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 introduction of new services and technologies, future
outsourcing, competition, wafer capacity, 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 regarding these
and other risks is included in UMC’s filings with the U.S. Securities
and Exchange Commission. 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.

Safe Harbor Statements

This release contains forward-looking statements. These statements
constitute “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. 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) 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 risks is included in UMC’s filings with the United States
Securities and Exchange Commission. 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.

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.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated Condensed Balance Sheet As of September 30, 2018 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
				September 30, 2018
				US$		NT$		%
Assets
Current assets
Cash and cash equivalents				2,670		81,520		21.9%
Financial assets at fair value through profit or loss, current				14		422		0.1%
Contract assets, current				11		338		0.1%
Notes & Accounts receivable, net				839		25,610		6.9%
Inventories, net				576		17,589		4.7%
Other current assets				481		14,674		3.9%
Total current assets				4,591		140,153		37.6%
Non-current assets
Funds and investments				1,188		36,278		9.7%
Property, plant and equipment				5,821		177,716		47.7%
Other non-current assets				607		18,522		5.0%
Total non-current assets				7,616		232,516		62.4%
Total assets				12,207		372,669		100.0%
Liabilities
Current liabilities
Short-term loans				485		14,818		4.0%
Hedging financial liabilities, current				2		64		0.0%
Contract liabilities, current				65		1,979		0.5%
Payables				777		23,714		6.4%
Current portion of long-term liabilities				180		5,510		1.5%
Other current liabilities				176		5,348		1.4%
Total current liabilities				1,685		51,433		13.8%
Non-current liabilities
Bonds payable				1,271		38,788		10.4%
Long-term loans				939		28,670		7.7%
Other non-current liabilities				1,350		41,220		11.1%
Total non-current liabilities				3,560		108,678		29.2%
Total liabilities				5,245		160,111		43.0%
Equity
Equity attributable to the parent company
Capital				4,069		124,243		33.3%
Additional paid-in capital				1,319		40,270		10.8%
Retained earnings, unrealized gains or losses on financial assets measured at fair value through other comprehensive income, exchange differences on translation of foreign operations and gains or losses on hedging Instruments				1,640		50,068		13.5%
Treasury stock				(82)		(2,516)		(0.7%)
Total equity attributable to the parent company				6,946		212,065		56.9%
Non-controlling interests				16		493		0.1%
Total equity				6,962		212,558		57.0%
Total liabilities and equity				12,207		372,669		100.0%
Note：New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2018 exchange rate of NT $30.53 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
				September 30, 2018				September 30, 2017				Chg.		September 30, 2018				June 30, 2018				Chg.
				US$		NT$		US$		NT$		%		US$		NT$		US$		NT$		%
Net operating revenues				1,290		39,387		1,235		37,698		4.5%		1,290		39,387		1,273		38,852		1.4%
Operating costs				(1,063)		(32,465)		(1,019)		(31,106)		4.4%		(1,063)		(32,465)		(1,054)		(32,177)		0.9%
Gross profit				227		6,922		216		6,592		5.0%		227		6,922		219		6,675		3.7%
				17.6%		17.6%		17.5%		17.5%				17.6%		17.6%		17.2%		17.2%
Operating expenses
- Sales and marketing expenses				(32)		(987)		(35)		(1,070)		(7.8%)		(32)		(987)		(36)		(1,103)		(10.5%)
- General and administrative expenses				(46)		(1,386)		(32)		(991)		39.9%		(46)		(1,386)		(36)		(1,083)		28.0%
- Research and development expenses				(109)		(3,329)		(110)		(3,343)		(0.4%)		(109)		(3,329)		(99)		(3,027)		10.0%
Subtotal				(187)		(5,702)		(177)		(5,404)		5.5%		(187)		(5,702)		(171)		(5,213)		9.4%
Net other operating income and expenses				40		1,215		14		441		175.5%		40		1,215		56		1,719		(29.3%)
Operating income				80		2,435		53		1,629		49.5%		80		2,435		104		3,181		(23.5%)
				6.2%		6.2%		4.3%		4.3%				6.2%		6.2%		8.2%		8.2%
Net non-operating income and expenses				(53)		(1,606)		41		1,236		-		(53)		(1,606)		(36)		(1,095)		46.7%
Income from continuing operations before income tax				27		829		94		2,865		(71.1%)		27		829		68		2,086		(60.3%)
				2.1%		2.1%		7.6%		7.6%				2.1%		2.1%		5.4%		5.4%
Income tax benefit (expense)				(21)		(632)		(13)		(401)		57.6%		(21)		(632)		11		331		-
Net income				6		197		81		2,464		(92.0%)		6		197		79		2,417		(91.8%)
				0.5%		0.5%		6.5%		6.5%				0.5%		0.5%		6.2%		6.2%
Other comprehensive income (loss)				(51)		(1,568)		(35)		(1,068)		46.8%		(51)		(1,568)		87		2,641		-
Total comprehensive income (loss)				(45)		(1,371)		46		1,396		-		(45)		(1,371)		166		5,058		-
Net income attributable to:
Stockholders of the parent				56		1,720		114		3,473		(50.5%)		56		1,720		120		3,659		(53.0%)
Non-controlling interests				(50)		(1,523)		(33)		(1,009)		50.9%		(50)		(1,523)		(41)		(1,242)		22.6%
Comprehensive income (loss) attributable to:
Stockholders of the parent				9		279		79		2,402		(88.4%)		9		279		206		6,297		(95.6%)
Non-controlling interests				(54)		(1,650)		(33)		(1,006)		64.0%		(54)		(1,650)		(40)		(1,239)		33.2%
Earnings per share-basic				0.005		0.14		0.009		0.28				0.005		0.14		0.010		0.30
Earnings per ADS (2)				0.023		0.70		0.046		1.40				0.023		0.70		0.049		1.50
Weighted average number of shares
outstanding (in millions)						12,054				12,208						12,054				12,049
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2018 exchange rate of NT $30.53 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$) and U.S. Dollars (US$)
				For the Three-Month Period Ended September 30, 2018						For the Nine-Month Period Ended September 30, 2018
				US$		NT$		%		US$		NT$		%
Net operating revenues				1,290		39,387		100.0%		3,791		115,735		100.0%
Operating costs				(1,063)		(32,465)		(82.4%)		(3,194)		(97,496)		(84.2%)
Gross profit				227		6,922		17.6%		597		18,239		15.8%
Operating expenses
- Sales and marketing expenses				(32)		(987)		(2.5%)		(98)		(2,999)		(2.6%)
- General and administrative expenses				(46)		(1,386)		(3.5%)		(114)		(3,485)		(3.0%)
- Research and development expenses				(109)		(3,329)		(8.5%)		(304)		(9,280)		(8.0%)
Subtotal				(187)		(5,702)		(14.5%)		(516)		(15,764)		(13.6%)
Net other operating income and expenses				40		1,215		3.1%		128		3,911		3.3%
Operating income				80		2,435		6.2%		209		6,386		5.5%
Net non-operating income and expenses				(53)		(1,606)		(4.1%)		(53)		(1,615)		(1.4%)
Income from continuing operations before income tax				27		829		2.1%		156		4,771		4.1%
Income tax benefit (expense)				(21)		(632)		(1.6%)		29		872		0.8%
Net income				6		197		0.5%		185		5,643		4.9%
Other comprehensive income (loss)				(51)		(1,568)		(4.0%)		27		840		0.7%
Total comprehensive income (loss)				(45)		(1,371)		(3.5%)		212		6,483		5.6%
Net income attributable to:
Stockholders of the parent				56		1,720		4.4%		288		8,780		7.6%
Non-controlling interests				(50)		(1,523)		(3.9%)		(103)		(3,137)		(2.7%)
Comprehensive income (loss) attributable to:
Stockholders of the parent				9		279		0.7%		319		9,734		8.4%
Non-controlling interests				(54)		(1,650)		(4.2%)		(107)		(3,251)		(2.8%)
Earnings per share-basic				0.005		0.14				0.024		0.73
Earnings per ADS (2)				0.023		0.70				0.120		3.65
Weighted average number of shares outstanding (in millions)						12,054						12,101
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2018 exchange rate of NT $30.53 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated Condensed Statement of Cash Flows For The Nine-Month Period Ended September 30, 2018 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
				US$		NT$
Cash flows from operating activities :
Net income before tax				156		4,771
Depreciation & Amortization				1,298		39,635
Exchange loss on financial assets and liabilities				42		1,286
Changes in notes & accounts receivable				(109)		(3,322)
Changes in other current assets				34		1,051
Changes in contract liabilities				(65)		(1,970)
Changes in other payables				(36)		(1,091)
Changes in assets, liabilities and others				(49)		(1,548)
Net cash provided by operating activities				1,271		38,812
Cash flows from investing activities :
Acquisition of investments accounted for under the equity method				(28)		(840)
Acquisition of property, plant and equipment				(499)		(15,229)
Increase in refundable deposits				(28)		(861)
Others				198		6,044
Net cash used in investing activities				(357)		(10,886)
Cash flows from financing activities :
Decrease in short-term loans				(343)		(10,469)
Redemption of bonds				(246)		(7,500)
Cash dividends				(280)		(8,557)
Treasury stock acquired				(102)		(3,129)
Treasury stock sold to employees				72		2,204
Others				(10)		(310)
Net cash used in financing activities				(909)		(27,761)
Effect of exchange rate changes on cash and cash equivalents				(10)		(320)
Net decrease in cash and cash equivalents				(5)		(155)
Cash and cash equivalents at beginning of period				2,675		81,675
Cash and cash equivalents at end of period				2,670		81,520
Note: New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2018 exchange rate of NT $30.53 per U.S. Dollar.

View source version on businesswire.com: https://www.businesswire.com/news/home/20181024005436/en/

Source: Business Wire
(October 24, 2018 - 7:23 AM EDT)

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