UMC Reports First Quarter 2015 Results

Communication and consumer segments reflected sequential revenue growth, accounting for 56% and 26% of sales in 1Q15, respectively.

(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 Blended ASP Trend for Foundry Segment

Blended average selling price increased slightly in 1Q15.
(To view ASP trend, visit http://www.umc.com/english/investors/1Q15_ASP_trend.asp)

Shipment and Utilization Rate3 for Foundry Segment

Wafer Shipments


1Q15

4Q14

3Q14

2Q14

1Q14

Wafer Shipments
(8" K equivalents)

1,481

1,431

1,462

1,426

1,258


Quarterly Capacity Utilization Rate


1Q15

4Q14

3Q14

2Q14

1Q14

Utilization Rate

93%

93%

93%

90%

81%

Total Capacity
(8" K equivalents)

1,583

1,577

1,586

1,597

1,563

Wafer shipments increased 3.5% quarterly to 1,481K in 1Q15 as overall capacity reached 1,583K, resulting in an overall utilization rate of 93% for the quarter.

Capacity4 for Foundry Segment

Total capacity during the first quarter increased to 1,583K 8-inch equivalent wafers. Continuous 28nm capacity expansion at Fab12A lifted quarterly capacity from 180K in 4Q14 to 183K in 1Q15. Capacity increase at Fab12i continued as 12" wafer capacity grew from 135K in 4Q14 to 139K in 1Q15. Estimated capacity during second quarter will grow by approximately 5% to 1,659K 8-inch equivalent wafers, due to ongoing 28nm capacity expansion deployment at Fab12A, 40nm capacity expansion at Fab12i and 8" expansion at Fab8N.

Annual Capacity in

thousands of wafers


Quarterly Capacity in

thousands of wafers

FAB

Geometry
(um)

2014

2013

2012

2011


FAB

2Q15E

1Q15

4Q14

3Q14

Fab6A

6"

3.5 – 0.45

448

448

481

538


WTK*

113

-

-

-

Fab8A

8"

0.5 – 0.25

813

813

815

813


Fab6A

-

111

113

113

Fab8C

8"

0.35 – 0.11

347

347

360

359


Fab8A

204

201

204

204

Fab8D

8"

0.13 – 0.09

358

382

371

364


Fab8C

87

86

87

87

Fab8E

8"

0.5 – 0.18

418

418

449

469


Fab8D

86

84

86

86

Fab8F

8"

0.18 – 0.11

388

388

389

388


Fab8E

105

103

105

105

Fab8S

8"

0.18 – 0.11

335

335

348

307


Fab8F

98

96

98

98

Fab8N

8"

0.5 – 0.13

547

469

-

-


Fab8S

84

83

84

84

Fab12A

12"

0.18 – 0.028

700

651

579

501


Fab8N

162

144

140

140

Fab12i

12"

0.13 – 0.040

573

550

537

530


Fab12A

198

183

180

174

Total (1)  

6,323

6,107

5,514

5,322


Fab12i

144

139

135

145

YoY Growth Rate

4%

11%

4%

11%


Total

1,659

1,583

1,577

1,586


2011~2012 figures account for UMC parent company only.

(1) One 6-inch wafer is converted into 0.5625(6 2 /8 2 ) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25(12 2 /8 2 ) 8-inch equivalent wafers.Capacity total figures are expressed in 8-inch equivalent wafers.

*UMC sold part of plants and equipment to WTK; WTK figures represent 6-inch CMOS capacity.

CAPEX for Foundry Segment

Capital Expenditure by Year - in US$ billion

Year

2014

2013

2012

2011

2010

CAPEX

$ 1.4

$ 1.1

$ 1.7

$ 1.6

$ 1.8


2010~2012 figures account for UMC parent company only.

2015 CAPEX Plan

8"

12"

Total

13%

87%

US$1.8 billion

In 1Q15, capital expenditure spending was US$470 million . Foundry capital expenditure budget for 2015 is expected to be approximately US$1.8 billion , with 87% of the amount used for 12" advanced capacity expansion.

Second Quarter of 2015 Outlook & Guidance

Quarter-over-Quarter Guidance:

  • Foundry Segment Wafer Shipments: To remain flat
  • Foundry Segment ASP in US$: To remain flat
  • Foundry Segment Profitability: Gross profit margin will be in the mid-20 percentage range
  • Foundry Segment Capacity Utilization: Approximately 90%
  • 2015 CAPEX for Foundry Segment: US$1.8bn
  • Guidance to New Business Segment: Revenue to be approximately NT$1.75bn and operating loss to be approximately NT$280mn

Recent Developments / Announcements

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

Conference Call / Webcast Announcement

Wednesday, April 29, 2015


Time:

5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM (London)

Dial-in numbers and Access Codes:


USA Toll Free:

1-800 871-3110, 1-888 700-7397

Taiwan Number:

02-2192-8016

Other Areas:

+886-2-2192-8016


Access Code:

UMC

A live webcast and replay of the 1Q15 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 technology and manufacturing for applications spanning every major sector of the IC industry. UMC's robust 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 has been completed for Phases 5&6, with future plans for Phases 7&8. The company employs over 16,000 people worldwide and has offices in Taiwan , mainland 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 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 regarding these and other risks is included in UMC's filings with the U.S. Securities and Exchange Commission, including its registration statements and reports on Forms F-1, F-3, F-6 and 20-F and 6-K, 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.

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 and reports on Form F-1, F-3, F-6 and 20-F and 6-K, 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 prepared and published in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from 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 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.

Notes:

[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 Mar 31, 2015 , the three-month period ending Dec 31, 2014 , and the equivalent three-month period that ended Mar 31, 2014 . For all 1Q15 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Mar 31, 2015 exchange rate of NT$ 31.30 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.

Contacts:

Bowen Huang / David Wong
UMC, Investor Relations
+ 886-2-2658-9168, ext. 16900
Email Contact
Email Contact

- FINANCIAL TABLES TO FOLLOW -

 

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

   Consolidated Condensed Balance Sheet

As of March 31, 2015

 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)




March 31, 2015


US$


NT$


%

Assets

Current assets

 Cash and cash equivalents

1,713


53,632


16.7%

 Financial assets at fair value through profit or loss, current

29


901


0.3%

 Notes & Accounts receivable, net

659


20,623


6.4%

 Inventories, net

500


15,641


4.9%

 Non-current assets held for sale

186


5,813


1.8%

 Other current assets

141


4,424


1.4%

    Total current assets

3,228


101,034


31.5%


Non-current assets






 Funds and investments

1,283


40,149


12.5%

 Property, plant and equipment

5,302


165,956


51.7%

 Other non-current assets

445


13,926


4.3%

    Total non-current assets

7,030


220,031


68.5%

Total assets

10,258


321,065


100.0%


Liabilities






Current liabilities






 Short-term loans

231


7,217


2.2%

 Payables

910


28,475


8.9%

 Liabilities directly associated with non-current assets held for sale

142


4,448


1.4%

 Current portion of long-term liabilities

116


3,637


1.1%

 Other current liabilities

21


666


0.2%

    Total current liabilities

1,420


44,443


13.8%


Non-current liabilities






 Bonds payable

798


24,979


7.8%

 Long-term loans

317


9,911


3.1%

 Other non-current liabilities

398


12,470


3.9%

    Total non-current liabilities

1,513


47,360


14.8%

    Total liabilities

2,933


91,803


28.6%


Equity






Equity attributable to the parent company






Capital

4,074


127,510


39.7%

Additional paid-in capital

1,265


39,606


12.3%

Retained earnings, unrealized gain or loss on available-for-sale
    financial assets and exchange differences on translation of
    foreign operations

1,937


60,618


18.9%

Treasury stock

(74)


(2,304)


(0.7%)

     Total equity attributable to the parent company

7,202


225,430


70.2%

Non-controlling interests

123


3,832


1.2%

     Total equity

7,325


229,262


71.4%

Total liabilities and equity

10,258


321,065


100.0%



Note New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2015 exchange rate of NT $31.30 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




March 31, 2015


March 31, 2014


%


March 31, 2015


December 31, 2014


%


US$


NT$


US$


NT$


Chg.


US$


NT$


US$


NT$


Chg.

Net operating revenues

1,203


37,650


1,013


31,694


18.8%


1,203


37,650


1,190


37,235


1.1%

Operating costs

(911)


(28,495)


(824)


(25,793)


10.5%


(911)


(28,495)


(865)


(27,049)


5.3%

Gross profit

292


9,155


189


5,901


55.1%


292


9,155


325


10,186


(10.1%)


24.3%


24.3%


18.6%


18.6%




24.3%


24.3%


27.4%


27.4%



Operating expenses




















  - Sales and marketing expenses

(33)


(1,045)


(27)


(833)


25.5%


(33)


(1,045)


(36)


(1,124)


(7.0%)

  - General and administrative expenses

(31)


(953)


(27)


(848)


12.4%


(31)


(953)


(32)


(1,013)


(5.9%)

  - Research and development expenses

(93)


(2,916)


(107)


(3,335)


(12.6%)


(93)


(2,916)


(113)


(3,535)


(17.5%)

      Subtotal

(157)


(4,914)


(161)


(5,016)


(2.0%)


(157)


(4,914)


(181)


(5,672)


(13.4%)

Net other operating income and expenses

(4)


(142)


2


56


-


(4)


(142)


1


18


-

Operating income

131


4,099


30


941


100.0%


131


4,099


145


4,532


(9.6%)


10.9%


10.9%


3.0%


3.0%




10.9%


10.9%


12.2%


12.2%























Net non-operating income and expenses

8


255


11


351


(27.4%)


8


255


27


843


(69.8%)

Income from continuing operations before    income tax

139


4,354


41


1,292


100.0%


139


4,354


172


5,375


(19.0%)


11.6%


11.6%


4.1%


4.1%




11.6%


11.6%


14.4%


14.4%























Income tax expense

(14)


(442)


(6)


(181)


100.0%


(14)


(442)


(29)


(911)


(51.5%)

Net income

125


3,912


35


1,111


100.0%


125


3,912


143


4,464


(12.4%)


10.4%


10.4%


3.5%


3.5%




10.4%


10.4%


12.0%


12.0%























Other comprehensive income (loss)

(3)


(107)


132


4,130


-


(3)


(107)


128


4,006


-





















Total comprehensive income

122


3,805


167


5,241


(27.4%)


122


3,805


271


8,470


(55.1%)





















    Net income attributable to:




















Stockholders of the parent

127


3,980


38


1,180


100.0%


127


3,980


146


4,563


(12.8%)

Non-controlling interests

(2)


(68)


(3)


(69)


(1.4%)


(2)


(68)


(3)


(99)


(31.3%)





















    Comprehensive income attributable to:




















Stockholders of the parent

125


3,910


168


5,261


(25.7%)


125


3,910


271


8,467


(53.8%)

Non-controlling interests

(3)


(105)


(1)


(20)


100.0%


(3)


(105)


0


3


-





















Earnings per share-basic

0.010


0.32


0.003


0.09




0.010


0.32


0.012


0.36



Earnings per ADS (2)

0.051


1.60


0.014


0.45




0.051


1.60


0.058


1.80



Weighted average number of shares




















outstanding (in millions)



12,526




12,480






12,526




12,510





Notes:

(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2015 exchange rate of NT $31.30 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 Three-Month Period Ended


March 31, 2015


March 31, 2015


US$


NT$


%


US$


 NT$


%

Net operating revenues

1,203


37,650


100.0%


1,203


37,650


100.0%

Operating costs

(911)


(28,495)


(75.7%)


(911)


(28,495)


(75.7%)

Gross profit

292


9,155


24.3%


292


9,155


24.3%



Operating expenses












  - Sales and marketing expenses

(33)


(1,045)


(2.8%)


(33)


(1,045)


(2.8%)

  - General and administrative expenses

(31)


(953)


(2.5%)


(31)


(953)


(2.5%)

  - Research and development expenses

(93)


(2,916)


(7.7%)


(93)


(2,916)


(7.7%)

      Subtotal

(157)


(4,914)


(13.0%)


(157)


(4,914)


(13.0%)

Net other operating income and expenses

(4)


(142)


(0.4%)


(4)


(142)


(0.4%)

Operating income

131


4,099


10.9%


131


4,099


10.9%


Net non-operating income and expenses

8


255


0.7%


8


255


0.7%

Income from continuing operations before
   income tax

139


4,354


11.6%


139


4,354


11.6%



Income tax expense

(14)


(442)


(1.2%)


(14)


(442)


(1.2%)

Net income

125


3,912


10.4%


125


3,912


10.4%


Other comprehensive loss

(3)


(107)


(0.3%)


(3)


(107)


(0.3%)


Total comprehensive income

122


3,805


10.1%


122


3,805


10.1%


    Net income attributable to:












Stockholders of the parent

127


3,980


10.6%


127


3,980


10.6%

Non-controlling interests

(2)


(68)


(0.2%)


(2)


(68)


(0.2%)


    Comprehensive income attributable to:    












Stockholders of the parent

125


3,910


10.4%


125


3,910


10.4%

Non-controlling interests

(3)


(105)


(0.3%)


(3)


(105)


(0.3%)


Earnings per share-basic

0.010


0.32




0.010


0.32



Earnings per ADS (2)

0.051


1.60




0.051


1.60




Weighted average number of shares
     outstanding (in millions)



12,526






12,526




Notes:

(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2015 exchange rate of NT $31.30 per U.S. Dollar.

(2) 1 ADS equals 5 common shares.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statement of Cash Flows

For The Three-Month Period Ended March 31, 2015

 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)



USD


NTD

Cash flows from operating activities :




    Net income before tax

139


4,354

    Depreciation & Amortization

343


10,748

    Impairment loss on non-financial assets

7


226

    Gain on disposal of investments

(6)


(190)

    Changes in notes & accounts receivable

65


2,039

    Changes in assets, liabilities and others

(9)


(307)

Net cash provided by operating activities

539


16,870


Cash flows from investing activities :




    Acquisition of available-for-sale financial assets

(61)


(1,897)

    Proceeds from disposal of available-for-sale financial assets

7


209

    Acquisition of subsidiaries (net of cash acquired)

13


415

    Acquisition of property, plant and equipment

(476)


(14,893)

    Proceeds from disposal of non-current assets held for sale

21


642

    Acquisition of intangible assets

(11)


(344)

    Others

(20)


(630)

Net cash used in investing activities

(527)


(16,498)


Cash flows from financing activities :




    Increase in short-term loans

28


866

    Proceeds from long-term loans

109


3,404

    Repayments of long-term loans

(82)


(2,554)

    Increase in other financial liabilities

195


6,108

    Others

11


331

Net cash provided by financing activities

261


8,155


Effect of exchange rate changes on cash and cash equivalents

(25)


(776)

Net increase in cash and cash equivalents

248


7,751


Cash and cash equivalents at beginning of period

1,476


46,212


Cash and cash equivalents at end of period

1,724


53,963


Reconciliation of the balances of cash and cash equivalents at end of period :  




Cash and cash equivalents balances on the consolidated balance sheets

1,713


53,632

Cash and cash equivalents included in non-current assets held for sale

11


331

Cash and cash equivalents at end of period

1,724


53,963



Note: New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2015 exchange rate of NT $31.30 per U.S. Dollar.

To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/umc-reports-first-quarter-2015-results-300074132.html

SOURCE United Microelectronics Corporation

Contact:
United Microelectronics Corporation
Web: http://www.umc.com



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