United Microelectronics : UMC announced its operating results for the first quarter of 2022

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Provided by: UNITED MICROELECTRONICS CORP.
SEQ_NO	3	Date of announcement	2022/04/27	Time of announcement	17:06:36
Subject	UMC announced its operating results for the first quarter of 2022
Date of events	2022/04/27	To which item it meets	paragraph 51
Statement	1.Date of occurrence of the event:2022/04/27 2.Company name:UNITED MICROELECTRONICS CORPORATION 3.Relationship to the Company (please enter "head office" or "subsidiaries"):head office 4.Reciprocal shareholding ratios:N/A 5.Cause of occurrence: UMC Reports First Quarter 2022 Results 12i P3 Singapore expansion plan addresses long term structural demand in 22/28nm First Quarter 2022 Overview: •Revenue: NT$63.42 billion (US$2.22 billion) •Gross margin: 43.4%; Operating margin: 35.2% •Revenue from 22/28nm: 20% •Capacity utilization rate: 100%+ •Net income attributable to shareholders of the parent: NT$19.81 billion (US$692 million) •Earnings per share: NT$1.61; earnings per ADS: US$0.281 Taipei, Taiwan, ROC - April 27, 2022 - United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the first quarter of 2022. First quarter consolidated revenue was NT$63.42 billion, increasing 7.3% QoQ from NT$59.10 billion in 4Q21. Compared to a year ago, 1Q22 revenue grew 34.7% YoY from NT$47.10 billion in 1Q21. Consolidated gross margin for 1Q22 was 43.4%. Net income attributable to the shareholders of the parent was NT$19.81 billion, with earnings per ordinary share of NT$1.61. Jason Wang, UMC co-president, said, "We started 2022 with solid first quarter, as strong wafer demand kept our fabs operating at full capacity. Although wafer shipments declined slightly, higher average blended pricing lifted our overall revenue. While we have observed general end-market's tapering of cyclical demand associated with the COVID-19 pandemic, UMC's business continued to be well supported by structural trends that are increasing silicon content in devices and driving new applications. Specialty technologies such as non-volatile memory, power management, RF-SOI, and OLED display drivers are necessary for applications across 5G, AIoT, and automotive mega-trends, and our strategy to focus on leading specialty technologies has been successful, which now contribute more than half of our wafer revenue. An increasing number of customers are recognizing the value of our customized specialty processes and forming long-term partnerships with UMC." Co-president Wang said, "Looking ahead, we expect the positive demand outlook will remain unchanged despite some market volatility caused by the pandemic and geopolitical issues. The expansion at our Fab 12A P5 is coming online in the current quarter, which will help us meet excess 28nm demand that we haven't been able to fulfill. We are also actively adding capacity at our overseas bases to support our customers' long-term growth. The announced new fab to be built at our Singapore site, which will address growing 22/28nm demand, has already secured multi-year supply agreements from 2024. We also announced a collaboration with DENSO on the production of power semiconductors at USJC's 300mm fab in order to serve the growing demand in the automotive market. The collaboration demonstrates our strong commitment to supporting our customers amid constraints in the automotive value chain. As part of the industry mega-trends, the accelerating adoption of electric vehicles will serve as a growth catalyst for our automotive business. We are excited to be selected as the foundry partner for many global leading customers as we aim to expand our market share in the fast-growing automotive segment." Co-president Wang added, "Corporate sustainability has long been a key priority for UMC, and it is now also embedded in our new company vision and mission statements, which was unveiled earlier this year. We were pleased to be chosen from over 7,500 companies for the S&P Global 2022 Sustainability Yearbook released, for which we received the Gold Class Award. The company has ambitious goals when it comes to sustainability, and we will continue prioritizing resources so that we can deliver on our ESG promises." Second Quarter 2022 Outlook & Guidance •Wafer Shipments: To increase by 4-5% •ASP in USD: To increase by 3-4% •Gross Profit Margin: To be approximately 45% •Capacity Utilization: 100% •2022 CAPEX: US$3.6 billion 6.Countermeasures:N/A 7.Any other matters that need to be specified:N/A