UMC Reports 2006 Third Quarter Results:

(vi) 2005 CAPEX contained UMC 2005 full year CAPEX and UMCi CAPEX during 1Q05.

UMC's cash based CAPEX budget for 2006 remains unchanged at US$1 billion. Approximately 97% of the spending is expected to be for expansion and R&D at our 300mm facilities. Total capital expenditure during the first three quarters of 2006 was US$566 million.

    Recent Developments / Announcements
    Oct. 19, 2006   UMC and NDL Sign Agreement to Establish Sponsorship
                    Program for Technology Research
    Oct. 09, 2006   UMC Low-power Process Helps Actel Put Freeze on IGLOO
                    Competition
    Oct. 08, 2006   UMC Singapore Receives Award from the Health Promotion
                    Board of Singapore
    Oct. 02, 2006   UMC and IME to Partner on Advanced Noise Modeling for
                    Nanometer Technologies
    Sep. 04, 2006   UMC Receives "Outstanding Risk Management Performance
                    Award" from World Leading Insurance Company AIG
    Aug. 02, 2006   UMC 2Q 2006 Financial Results

Please visit UMC's website http://www.umc.com/english/news/index.asp for further details regarding the above announcements.

    Fourth Quarter of 2006 Outlook & Guidance
    Quarter-over-quarter Guidance:

     -- Wafer shipments: to decrease by 2-3%
     -- Wafer ASP in US$: to decrease by 5-6%
     -- Capacity utilization rate: approximately 75%
     -- Profitability: gross profit margins to be approximately 20%
     -- Percentage of 90nm & below revenues: expected to be over 20%
     -- The communication segment is expected to be the strongest, followed by
        computer segment and consumer segment
     -- 2006 CAPEX budget: US$1 billion

    Conference Call / Webcast Announcement
    Wednesday, October 25, 2006

    Time: 8:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM (London)
    Dial-in numbers and Access Codes:
    Asia/Europe:      +1-617-614-6204
    North America: 800-798-2796
    Access Code:      UMCCALL

A live webcast and replay of the 3Q06 results announcement will be available at www.umc.com under the "Investor Relations \ Investor Events" section.

About UMC

UMC (NYSE: UMC) is a leading global semiconductor foundry that manufactures advanced process ICs for applications spanning every major sector of the semiconductor industry. UMC delivers cutting-edge foundry technologies that enable sophisticated system-on-chip (SoC) designs, including volume production 90nm, industry-leading 65nm, and mixed signal/RFCMOS. UMC's 10 wafer manufacturing facilities include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i are both in volume production for a variety of customer products. The company employs approximately 12,000 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, and the United States. UMC can be found on the web athttp://www.umc.com .

Safe Harbor Statements

Except for statements in respect of historical matters, the statements in this release contain "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. 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, among other things: our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; the risks associated with international global business activities; our dependence upon key personnel; general economic and political conditions, including those related to the semiconductor, communications, consumer electronics and computer industries; possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; reduced end-user purchases relative to expectations and orders; fluctuations in foreign currency exchange rates; and those risks identified in the section entitled "Risk Factors" in UMC's Annual Report on Form 20-F ("20-F") for the year ended December 31, 2005 filed with the U.S. Securities and Exchange Commission on June 26, 2006.

The financial statements included in this release are unaudited and unconsolidated, and prepared and published in accordance with ROC GAAP. Investors are cautioned that there are many differences between ROC GAAP and U.S. GAAP, as described in note 34 to the financial statements on 20-F.

The forward-looking statements in this release reflect the current belief of UMC as of the date of this release and UMC undertakes no obligation to update these forward-looking statements for events or circumstances that occur after such date or to reflect the occurrence of unanticipated events.

    Notes:

     (1) Unless otherwise stated, all financial figures discussed in this
         announcement are prepared in accordance with ROC GAAP, which differ
         in some material respects from generally accepted accounting
         principles in the United States.  They are unaudited, unconsolidated,
         and represent comparisons among the three-month period ending
         September 30, 2006, the three-month period ending June 30, 2006, and
         the equivalent three-month period that ended September 30, 2005.  For
         all 3Q06 results, New Taiwan Dollars (NT$) have been converted into
         U.S. Dollars at the September 30, 2006 exchange rate of NT$33.08 per
         U.S. Dollar.
     (2) Days Sales Outstanding = 365/  (Operating revenues for the three-
         month period end *4)/  (Beginning NR&AR balance, net + Ending
         NR&AR balance, net)/2
         Average Inventory Turnover = 365/ (COGS for the three-month period
         end *4)/ (Beginning Inventory balance, net + Ending Inventory
         balance, net)/2
     (3) Revenue in this section represents net wafer sales.
     (4) Revenue in this section represents net wafer sales.
     (5) 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.



                     UNITED MICROELECTRONICS CORPORATION
               Unaudited Condensed Unconsolidated Balance Sheet
                           As of September 30, 2006
    Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

                                                                                             September  30,  2006
                                                                                                US$                    NT$                    %
              ASSETS
                  Current  Assets
                        Cash  and  Cash  Equivalents                    2,509              83,004              24.0%
                        Financial  assets  at  fair
                          value  through  profit  or
                          loss,  current                                              263                8,689                2.5%
                        Notes  &  Accounts  Receivable                    437              14,473                4.1%
                        Inventories                                                    326              10,787                3.1%
                      Other  Current  Assets                                    126                4,156                1.2%
                          Total  Current  Assets                            3,661            121,109              34.9%

                  Non-Current  Assets
                        Funds  and  Long-term
                          Investments                                              2,237              74,001              21.3%
                        Property,  Plant  and  Equipment            4,211            139,316              40.2%
                        Intangible  Assets                                        122                4,024                1.2%
                      Other  Assets                                                    249                8,228                2.4%
                          Total  Non-Current  Assets                    6,819            225,569              65.1%
              TOTAL  ASSETS                                                      10,480            346,678            100.0%

              LIABILITIES
                  Current  Liabilities
                        Financial  liabilities  at  fair
                          value  through  profit  or
                          loss,  current                                                36                1,187                0.3%
                        Payables                                                          647              21,415                6.2%
                      Current  Portion  of  Long-term
                        Interest-Bearing  Liabilities                  314              10,394                3.0%
                      Other  Current  Liabilities                            43                1,412                0.4%
                          Total  Current  Liabilities                  1,040              34,408                9.9%

                  Non-Current  Liabilities
                        Bonds  Payable                                                924              30,566                8.8%
                        Other  Liabilities                                        110                3,646                1.1%
                            Total  Non-Current
                              Liabilities                                          1,034              34,212                9.9%
              TOTAL  LIABILITIES                                              2,074              68,620              19.8%

              STOCKHOLDERS'  EQUITY
                  Capital  Stock                                                  5,770            190,862              55.0%
                  Capital  Reserve                                              2,039              67,438              19.5%
                  Retained  Earnings,  Unrealized
                    Gain  on  Financial  Assets  and

                    Translation  Adjustment                              1,486              49,153              14.2%
                Treasury  Stock                                                    (889)          (29,395)            -8.5%
                    TOTAL  STOCKHOLDERS'  EQUITY                      8,406            278,058              80.2%
              TOTAL  LIABILITIES  AND
                STOCKHOLDERS'  EQUITY                                    10,480            346,678            100.0%


              Note:  New  Taiwan  Dollars  have  been  translated  into  U.S.  Dollars  at  the
                          September  30,  2006  exchange  rate  of  NT$33.08  per  U.S.  Dollar.
                          All  figures  are  in  ROC  GAAP.



                                          UNITED  MICROELECTRONICS  CORPORATION
                          Unaudited  Condensed  Unconsolidated  Income  Statement
        Figures  in  Million  of  New  Taiwan  Dollars  (NT$)  and  U.S.  Dollars  (US$)
                                            Except  Per  Share  and  Per  ADS  Data

                                                                                          Year  over  Year  Comparison
                                                                                          Three-Month  Period  Ended
                                                                                September  30,      September  30,
                                                                                        2006                        2005                  %
                                                                                  US$          NT$          US$          NT$        Chg.
        Net  Sales                                                        842      27,852        713      23,579      18.1%
        Cost  of  Goods  Sold                                    (636)  (21,038)    (624)  (20,625)      2.0%
        Net  Gross  Profit                                          206        6,814          89        2,954    130.7%
                                                                              24.5%        24.5%    12.5%        12.5%
        Operating  Expenses
            -  Sales  &  Marketing                                  21            683          19            618      10.5%
            -  General  &  Administrative                    20            682          26            877    -22.2%
            -  Research  &  Development                        73        2,412          61        2,019      19.5%
                                                                                  114        3,777        106        3,514        7.5%
        Operating  Income  (Loss)                              92        3,037        (17)        (560)  642.3%
                                                                              10.9%        10.9%    -2.4%        -2.4%

        Net  Non-Operating  Income
          (Expenses)                                                    195        6,438          82        2,725    136.3%
        Income  (Loss)  from  continuing
          operations  before  income  tax                287        9,475          65        2,165    337.6%
                                                                              34.0%        34.0%      9.2%          9.2%

        Income  Tax  (Expense)  Benefit                  (27)        (883)        (0)            (0)          --
        Income  (Loss)  from  continuing
          operations                                                    260        8,592          65        2,165    296.9%
        Cumulative  effect  of  changes  in
          accounting  principles                                --            --            --              --            --
        Net  Income  (Loss)                                        260        8,592          65        2,165    296.9%
                                                                              30.8%        30.8%      9.2%          9.2%

        Earnings  per  Share                                  0.015          0.48    0.003          0.11
        Earnings  per  ADS  (2)                              0.073          2.40    0.017          0.55
        Weighted  Average  Number  of  Shares
        Outstanding  (in  millions)                                    17,542                    18,671


        Note:
        (1)  New  Taiwan  Dollars  have  been  translated  into  U.S.  Dollars  at  the
                September  30,  2006  exchange  rate  of  NT$33.08  per  U.S.  Dollar.
                All  figures  are  in  ROC  GAAP.
        (2)  1  ADS  equals  5  common  shares.



                                          UNITED  MICROELECTRONICS  CORPORATION
                          Unaudited  Condensed  Unconsolidated  Income  Statement
        Figures  in  Million  of  New  Taiwan  Dollars  (NT$)  and  U.S.  Dollars  (US$)
                                            Except  Per  Share  and  Per  ADS  Data

                                                                                    Quarter  over  Quarter  Comparison
                                                                                          Three-Month  Period  Ended
                                                                                September  30,              June  30,
                                                                                        2006                          2006                  %
                                                                                US$          NT$            US$          NT$          Chg.
        Net  Sales                                                        842      27,852        778      25,751        8.2%
        Cost  of  Goods  Sold                                    (636)  (21,038)    (622)  (20,580)      2.2%
        Net  Gross  Profit                                          206        6,814        156        5,171      31.8%
                                                                              24.5%        24.5%    20.1%        20.1%
        Operating  Expenses
            -  Sales  &  Marketing                                  21            683          23            761    -10.2%
            -  General  &  Administrative                    20            682          20            676        0.9%
            -  Research  &  Development                        73        2,412          64        2,104      14.6%
                                                                                  114        3,777        107        3,541        6.7%
        Operating  Income  (Loss)                              92        3,037          49        1,630      86.3%
                                                                              10.9%        10.9%      6.3%          6.3%

        Net  Non-Operating  Income
          (Expenses)                                                    195        6,438        154        5,076      26.8%
        Income  (Loss)  from  continuing
          operations  before  income  tax                287        9,475        203        6,706      41.3%
                                                                              34.0%        34.0%    26.0%        26.0%

        Income  Tax  (Expense)  Benefit                  (27)        (883)      (20)        (654)    35.0%
        Income  (Loss)  from  continuing
          operations                                                    260        8,592        183        6,052      42.0%
        Cumulative  effect  of  changes  in
          accounting  principles                                --              --          --              --            --
        Net  Income  (Loss)                                        260        8,592        183        6,052      42.0%
                                                                              30.8%        30.8%    23.5%        23.5%

        Earnings  per  Share                                  0.015          0.48    0.010          0.34
        Earnings  per  ADS  (2)                              0.073          2.40    0.051          1.70
        Weighted  Average  Number  of  Shares
        Outstanding  (in  millions)                                    17,542                    17,469


        Note:
        (1)  New  Taiwan  Dollars  have  been  translated  into  U.S.  Dollars  at  the
                September  30,  2006  exchange  rate  of  NT$33.08  per  U.S.  Dollar.
                All  figures  are  in  ROC  GAAP.
        (2)  1  ADS  equals  5  common  shares.



                                          UNITED  MICROELECTRONICS  CORPORATION
                          Unaudited  Condensed  Unconsolidated  Income  Statement
        Figures  in  Million  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  year  Ended
                                                              September  30,  2006                September  30,  2006
                                                            US$            NT$            %            US$              NT$            %
        Net  Sales                                  842        27,852    100.0%      2,358        77,987    100.0%
        Cost  of  Goods  Sold              (636)    (21,038)  -75.5%    (1,897)    (62,747)  -80.5%
        Net  Gross  Profit                    206          6,814      24.5%          461        15,240      19.5%

        Operating  Expenses
            -  Sales  &  Marketing            21              683        2.5%            62          2,056        2.6%
            -  General  &
              Administrative                    20              682        2.4%            57          1,890        2.4%
            -  Research  &
              Development                          73          2,412        8.7%          198          6,542        8.4%
                                                            114          3,777      13.6%          317        10,488      13.4%
        Operating  Income  (Loss)        92          3,037      10.9%          144          4,752        6.1%

        Net  Non-Operating
          Income  (Expenses)                195          6,438      23.1%          774        25,604      32.8%
        Income  (Loss)  from
          continuing  operations
          before  income  tax                287          9,475      34.0%          918        30,356      38.9%

        Income  Tax  (Expense)
          Benefit                                    (27)          (883)    -3.2%          (68)      (2,237)    -2.9%
        Income  (Loss)  from
          continuing  operations        260          8,592      30.8%          850        28,119      36.0%
        Cumulative  effect  of
          changes  in  accounting
          principles                                --                --          --            (36)      (1,189)    -1.5%
        Net  Income  (Loss)                  260          8,592      30.8%          814        26,930      34.5%

        Earnings  per  Share            0.015            0.48                      0.045            1.48
        Earnings  per  ADS  (2)        0.073            2.40                      0.224            7.40
        Weighted  Average  Number
          of  Shares  Outstanding
          (in  millions)                                      17,542                                        18,159


        Note:
        (1)  New  Taiwan  Dollars  have  been  translated  into  U.S.  Dollars  at  the
                September  30,  2006  exchange  rate  of  NT$33.08  per  U.S.  Dollar.
                All  figures  are  in  ROC  GAAP.
        (2)  1  ADS  equals  5  common  shares.



                                          UNITED  MICROELECTRONICS  CORPORATION
                    Unaudited  Condensed  Unconsolidated  Statement  of  Cash  Flows
                                  For  The  Nine  Months  Ended  September  30,  2006
        Figures  in  Million  of  New  Taiwan  Dollars  (NT$)  and  U.S.  Dollars  (US$)

                                                                                                              US$                                NT$
        Cash  flows  from  operating  activities:
                Net  Income                                                                          814                          26,930
                Depreciation  &  Amortization                                    1,037                          34,290
                Bed  debts  expenses                                                              1                                  22
                Decline  in  market  value  and
                  obsolescence  of  inventories                                        13                                426
                Long-term  investment  income
                  accounted  for  under  the  equity
                  method                                                                                (42)                        (1,403)
                Cash  dividends  received  under  the
                  equity  method                                                                    32                            1,076
                Loss  on  valuation  of  financial
                  assets  and  liabilities                                                  50                            1,658
                Impairment  loss                                                                    1                                  22
                Gain  on  disposal  of  investments                              (698)                      (23,074)
                Gain  on  disposal  of  property,
                  plant  and  equipment                                                        (3)                            (102)
                Exchange  gain  on  financial  assets
                  and  liabilities                                                                (0)                                (5)
                Exchange  loss  on  long-term
                  liabilities                                                                          3                                117
                Bond  discount  amortization                                              2                                  72
                Amortization  of  deferred  grant
                  income                                                                                  (2)                              (63)
                Change  in  working  capital  &
                  others                                                                              (249)                        (8,241)
                Net  cash  provided  from  operating
                  activities                                                                        959                          31,725

        Cash  flows  from  investing  activities:
                Acquisition  of  available-  for-
                  sales  financial  assets                                                  (9)                            (297)
                Proceed  from  sale  of  available-
                  for-sales  financial  assets                                        337                          11,135
                Proceed  from  sale  of  financial
                  assets  measured  at  cost                                                  1                                  31
                Acquisition  of  long-term
                  investments  accounted  for  the
                  equity  method                                                                (172)                        (5,687)
                Proceed  from  sale  of  long-term
                  investments  accounted  for  the
                  equity  method                                                                  236                            7,801
                Acquisition  of  property,  plant
                  and  equipment                                                                (566)                      (18,719)
                Proceeds  from  disposal  of
                  property,  plant  and  equipment                                      7                                238
                Decrease  in  other  assets  -
                  others,  net                                                                          2                                  72
                Increase  in  deferred  charges                                      (26)                            (861)
                Net  cash  used  in  investing
                  activities                                                                      (190)                        (6,287)

        Cash  flows  from  financing  activities:
                Redemption  of  bonds                                                      (159)                        (5,250)
                Cash  dividend                                                                  (216)                        (7,156)
                Employee  Bonus                                                                    (9)                            (306)
                Remuneration  to  directors  and
                  supervisors                                                                        (0)                                (6)
                Employee  stock  option                                                      30                                999
                Treasury  stock                                                                (825)                      (27,286)
                Decrease  in  deposits-in                                                  (0)                                (4)
                Net  cash  used  in  financing
                  activities                                                                  (1,179)                      (39,009)

        Effect  of  exchange  rate  on  cash  and
          cash  equivalents                                                                      (1)                              (22)
        Net  decrease  in  cash  and  cash
          equivalents                                                                            (411)                      (13,593)

        Cash  and  cash  equivalents  at
          beginning  of  period                                                          2,920                          96,597

        Cash  and  cash  equivalents  at  end  of
          period                                                                                    2,509                          83,004


        Note:  New  Taiwan  Dollars  have  been  translated  into  U.S.  Dollars  at  the
                    September  30,  2006  exchange  rate  of  NT$  33.08  per  U.S.  Dollar.
                    All  figures  are  in  ROC  GAAP.



        Contacts:

        Chitung  Liu  /  Bowen  Huang  /  Dylan  Lee
        UMC,  Investor  Relations
        Tel:      +886-2-2700-6999  ext.  6957
        Email:  
  Email  Contact  
                      
  Email  Contact  
                      
  Email  Contact  
 

Web site: http://www.umc.com//



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