2Q20 outlook stable; company prioritizes medical related ICs shipments amid COVID-19

First Quarter 2020 Overview¹:

• Revenue: NT$42.27 billion (US$1.40 billion)
• Gross margin: 19.2%
• Foundry operating margin: 8.2%
• Foundry capacity utilization rate: 93%
• Net income attributable to stockholders of the parent: NT$2.21 billion (US$73 million)
• Earnings per share: NT$0.19; earnings per ADS: US$0.031

TAIPEI, Taiwan — (BUSINESS WIRE) — April 27, 2020 — 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 2020.

First quarter consolidated revenue was NT$42.27 billion, up 1.0% QoQ from NT$41.85 billion in 4Q19 and up 29.7% YoY from NT$32.58 billion in 1Q19. Consolidated gross margin for 1Q20 was 19.2%. Net income attributable to the stockholders of the parent was NT$2.21 billion, with earnings per ordinary share of NT$0.19.

SC Chien, co-president of UMC, said, “In the first quarter, foundry revenue grew 1.0% QoQ to NT$42.27 billion, leading to a foundry operating margin of 8.2%. Utilization rate increased slightly to 93%, bringing wafer shipments to 2.15 million 8-inch equivalent wafers, primarily attributed to display driver demand in consumer and communication devices. The demand in consumer ICs partially reflected work-from-home initiatives adopted in many areas around the world to combat the spread of COVID-19. As this pandemic continues to impact populations across the globe, UMC has given priority to all wafer manufacturing of medical related ICs so that hospitals and care centers receive the equipment they need in the shortest time possible in order to deal with the coronavirus. We will continue to commit all resources within our means to accelerate the shipments of healthcare-related ICs in the universal fight against COVID-19.”

Co-president Chien further commented, “Looking into the second quarter of 2020, despite significantly higher levels of uncertainty caused by the COVID-19 pandemic, current outlook indicates slightly higher wafer demand, mainly supported by inventory replenishment across computer peripheral and consumer electronics end markets. We will continue to monitor market dynamics; meanwhile we anticipate a surge in the number of customer 28nm tape outs in the first half of 2020. While we strive to maintain the business momentum attained during the first quarter, UMC’s corporate strategy of delivering a high dividend payout ratio remains intact. In Q1, our Board of Directors proposed to distribute a cash dividend of approximately NT$0.75 per share, subject to shareholder approval during the annual shareholder meeting (AGM). We will also continue to strengthen our financial structure while gaining additional market share by executing on our technology development and corporate strategy. As the world navigates the COVID-19 situation, UMC is committed to the philosophy of “employee care, environmental focus and public service” while furthering sustainable development and corporate social responsibility. We will confront this challenge together with our employees, shareholders, and suppliers. We also deeply appreciate the efforts of all the front line professionals confronting this pandemic and will continue to support our communities in Taiwan and abroad.”

Summary of Operating Results