TAIPEI, Taiwan--(BUSINESS WIRE)--

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 2018.

First quarter consolidated revenue was NT$37.50 billion, up 2.4% from NT$36.63 billion in 4Q17 and flat YoY from NT$37.42 billion in 1Q17. Consolidated gross margin for 1Q18 was 12.4%. Net income attributable to stockholders of the parent was NT$3.40 billion, with earnings per ordinary share of NT$0.28.

Jason Wang, co-president of UMC, said, “In the first quarter of 2018, despite the unfavorable movement of the NT dollar, our foundry revenue increased 2.5% QoQ to NT$37.44 billion. Stable loading across 8" and mature 12" technologies resulted in an overall utilization rate of 94%, bringing wafer shipments to 1.75 million 8-inch equivalent wafers. Softening demand in smartphone and other wireless devices was more than offset by strength in the computer and consumer segments.”

Co-president Wang continued, “Looking into the second quarter, we anticipate our wafer shipments to increase, mainly due to growing business opportunities from wireless communication as well as computer peripheral related chip demand. As we secure new product tape outs across advanced and mature technologies including 28nm, we will leverage our collaborative efforts with customers supported by UMC’s manufacturing excellence to enhance our market share and financial results. While we focus on revenue and profit growth, we also seek to maximize shareholder returns. Subject to shareholders’ approval, the board of directors recently proposed a cash dividend distribution of approximately NT$0.70 per share, which constitutes around an 88% cash dividend payout ratio. In addition, we began our 18th share buyback program in March 8, 2018 and will complete the purchase of shares for cancellation by May 7, 2018. Moving forward, we will continue to improve UMC’s profitability and maintaining business growth to maximize benefits to our shareholders.”

______________________

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 March 31, 2018, the three-month period ending December 31, 2017, and the equivalent three-month period that ended March 31, 2017. For all 1Q18 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the March 31, 2018 exchange rate of NT$ 29.11 per U.S. Dollar.

Summary of Operating Results

Operating Results
(Amount: NT$ million)			1Q18					4Q17					QoQ % change					1Q17					YoY % change
Net Operating Revenues			37,497					36,631					2.4					37,418					0.2
Gross Profit			4,642					6,298					(26.3	)				7,428					(37.5	)
Operating Expenses			(4,850	)				(5,198	)				(6.7	)				(6,211	)				(21.9	)
Net Other Operating Income and Expenses			977					801					22.0					154					534.4
Operating Income			769					1,901					(59.5	)				1,371					(43.9	)
Net Non-Operating Income and Expenses			1,088					(152	)				-					(304	)				-
Net Income Attributable to Stockholders of the Parent			3,400					1,771					92.0					2,286					48.7
EPS    (NT$ per share)			0.28					0.15										0.19
(US$ per ADS)			0.048					0.026										0.033

Net operating revenues in 1Q18 increased 2.4% to NT$37.50 billion, including NT$37.44 billion from the foundry segment. Revenue contribution from 40nm and below technologies remained flat at 44%. Gross profit declined 26.3% to NT$4.64 billion, or 12.4% of revenue. Operating expenses decreased 6.7% to NT$4.85 billion. Net other operating income was NT$977 million, leading to operating income of NT$0.77 billion. Net non-operating income was NT$1.09 billion. Net income attributable to stockholders of the parent was NT$3.40 billion.

Earnings per ordinary share for the quarter was NT$0.28. Earnings per ADS was US$0.048. The basic weighted average number of outstanding shares in 1Q18 was 12,202,773,078, compared with 12,208,239,978 shares in 4Q17 and 12,208,239,978 shares in 1Q17. The diluted weighted average number of outstanding shares was 13,457,161,259 in 1Q18, compared with 13,474,873,551 shares in 4Q17 and 13,418,016,296 shares in 1Q17. The fully diluted share count on March 31, 2018 was approximately 13,839,101,000. On March 31, 2018, UMC held 440 million treasury shares acquired from the 16th, 17th and 18th share buy-back programs.

Detailed Financials Section

Net operating revenues grew 2.4% to NT$37.50 billion. COGS increased to NT$32.86 billion, as depreciation increased 7.5% to NT$11.82 billion. Other manufacturing costs increased 8.8% to NT$21.04 billion mainly from higher wafer shipments. Gross profit was NT$4.64 billion. Operating expenses declined 6.7% to NT$4.85 billion. General and Administrative (G&A) expenses decreased 12.6% to NT$1.02 billion. Sales & Marketing declined 3.7% to NT$0.91 billion and R&D expense fell 5.4% to NT$2.92 billion, or 7.8% of net operating revenues. Net other operating income was NT$977 million, leading to an operating income of NT$769 million.

COGS & Expenses
(Amount: NT$ million)			1Q18					4Q17					QoQ % change					1Q17					YoY % change
Net Operating Revenues			37,497					36,631					2.4					37,418					0.2
COGS			(32,855	)				(30,333	)				8.3					(29,990	)				9.6
Depreciation			(11,815	)				(10,990	)				7.5					(11,032	)				7.1
Other Mfg. Costs			(21,040	)				(19,343	)				8.8					(18,958	)				11.0
Gross Profit			4,642					6,298					(26.3	)				7,428					(37.5	)
Gross Margin (%)			12.4	%				17.2	%									19.9	%
Operating Expenses			(4,850	)				(5,198	)				(6.7	)				(6,211	)				(21.9	)
G&A			(1,017	)				(1,164	)				(12.6	)				(1,050	)				(3.1	)
Sales & Marketing			(909	)				(944	)				(3.7	)				(1,170	)				(22.3	)
R&D			(2,924	)				(3,090	)				(5.4	)				(3,991	)				(26.7	)
Net Other Operating Income & Expenses			977					801					22.0					154					534.4
Operating Income			769					1,901					(59.5	)				1,371					(43.9	)

Net non-operating income in 1Q18 was NT$1.09 billion, which primarily resulted from NT$1.02 billion in exchange gain and NT$582 million in net investment gain, which were partially offset by a NT$529 million in net interest expenses.

Non-Operating Income and Expenses
(Amount: NT$ million)			1Q18					4Q17					1Q17
Non-Operating Income and Expenses			1,088					(152	)				(304	)
Net Interest Income and Expenses			(529	)				(542	)				(472	)
Net Investment Gain and Loss			582					(102	)				654
Exchange Gain and Loss			1,021					500					(517	)
Other Gain and Loss			14					(8	)				31

Cash inflow from operating activities was NT$8.78 billion. Cash inflow from investing activities amounted to NT$0.67 billion, including NT$5.72 billion in CAPEX spending for the foundry segment, resulting in free cash flow of NT$3.06 billion. Cash outflow from financing activities totaled NT$13.71 billion, mainly from NT$7.50 billion in redemption of bonds and NT$5.56 billion in bank loans. Net cash outflow in 1Q18 was NT$4.53 billion. Over the next 12 months, the company expects to repay NT$2.40 billion in bank loans.

Cash Flow Summary
(Amount: NT$ million)			For the 3-Month Period Ended Mar. 31, 2018					For the 3-Month Period Ended Dec. 31, 2017
Cash Flow from Operating Activities			8,776					12,899
Net income before tax			1,857					1,749
Depreciation & Amortization			13,288					13,227
Net gain of financial assets and liabilities at FVTPL			(377	)				(86	)
Impairment loss on financial assets			-					254
Exchange gain on financial assets and liabilities			(1,356	)				(642	)
Changes in working capital			(3,231	)				(655	)
Income tax paid			(632	)				(152	)
Other			(773	)				(796	)
Cash Flow from Investing Activities			666					(6,034	)
Capital expenditures			(5,716	)				(10,961	)
Proceeds from disposal of AFS financial assets			-					313
Acquisition of intangible assets			(248	)				(360	)
Other			6,630					4,974
Cash Flow from Financing Activities			(13,714	)				5,214
Bank loans			(5,561	)				(41	)
Bonds Issued			-					5,400
Redemption of bonds			(7,500	)				-
Other			(653	)				(145	)
Effect of Exchange Rate			(260	)				(343	)
Net Cash Flow			(4,532	)				11,736

Cash and cash equivalents decreased to NT$77.14 billion. Days of inventory decreased to 49 days.

Current Assets
(Amount: NT$ billion)			1Q18				4Q17				1Q17
Cash and Cash Equivalents			77.14				81.68				60.81
Notes & Accounts Receivable			25.01				20.97				20.88
Days Sales Outstanding			56				54				54
Inventories, net			17.14				18.26				16.26
Days of Inventory			49				53				51
Total Current Assets			136.42				139.16				111.54

Current liabilities decreased to NT$72.57 billion, mainly from a decrease in Short-Term Credit/Bonds. Total liabilities declined to NT$169.35 billion, leading to a debt to equity ratio of 78%.

Liabilities
(Amount: NT$ billion)			1Q18				4Q17				1Q17
Total Current Liabilities			72.57				88.06				66.87
Notes & Accounts Payable			7.00				6.54				6.44
Short-Term Credit / Bonds			40.00				52.81				36.34
Payable on Equipment			2.97				4.67				6.41
Other			22.60				24.04				17.68
Long-Term Credit / Bonds			52.61				53.32				62.31
Long-Term Investment Liabilities			20.90				20.49				19.47
Total Liabilities			169.35				180.06				162.70
Debt to Equity			78%				84%				75%

Analysis of Revenue² for Foundry Segment

Revenue from Asia Pacific increased to 47% while the contribution from North American customers declined to 42%. Revenue from Japan remained at 3%.

Revenue Breakdown by Region
Region			1Q18					4Q17					3Q17					2Q17					1Q17
North America			42	%				43	%				43	%				42	%				41	%
Asia Pacific			47	%				45	%				47	%				47	%				50	%
Europe			8	%				9	%				8	%				7	%				5	%
Japan			3	%				3	%				2	%				4	%				4	%

Business from 14nm remained unchanged at 2% of 1Q18 revenue, while 28nm contribution declined to 12%.

Revenue Breakdown by Geometry
Geometry			1Q18					4Q17					3Q17					2Q17					1Q17
14nm and below			2	%				2	%				1	%				1	%				0	%
14nm			12	%				15	%				15	%				17	%				17	%
28nm			30	%				28	%				29	%				28	%				29	%
40nm			13	%				12	%				12	%				12	%				13	%
65nm			6	%				5	%				6	%				5	%				4	%
90nm			11	%				12	%				12	%				12	%				11	%
0.13um			13	%				13	%				12	%				12	%				13	%
0.18um			10	%				10	%				10	%				10	%				10	%
0.5um and above			3	%				3	%				3	%				3	%				3	%

Fabless customers accounted for 92% of revenue in 1Q18.

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

Communication segment represented 47% of sales while revenue from consumer applications remained flat at 29%.

Revenue Breakdown by Application (1)
Application			1Q18					4Q17					3Q17					2Q17					1Q17
Computer			14	%				13	%				14	%				14	%				12	%
Communication			47	%				49	%				47	%				48	%				51	%
Consumer			29	%				29	%				31	%				29	%				28	%
Others			10	%				9	%				8	%				9	%				9	%

⁽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.

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² Revenue in this section represents wafer sales

Blended ASP Trend for Foundry Segment

Blended average selling price (ASP) in 1Q18 declined slightly.

(To view ASP trend, visit http://www.umc.com/english/investors/1Q18_ASP_trend.asp)

Shipment and Utilization Rate³ for Foundry Segment

In 1Q18, wafer shipments grew 4.6% to 1,747K. Quarterly capacity declined slightly to 1.5% QoQ or 1,858K, resulting in an overall utilization rate of 94% in 1Q18.

Wafer Shipments
			1Q18				4Q17				3Q17				2Q17				1Q17
Wafer Shipments (8” K equivalents)			1,747				1,670				1,748				1,741				1,678
Quarterly Capacity Utilization Rate
			1Q18				4Q17				3Q17				2Q17				1Q17
Utilization Rate			94%				90%				96%				96%				96%
Total Capacity (8” K equivalents)			1,858				1,886				1,861				1,816				1,742

³ Utilization Rate = Quarterly Wafer Out / Quarterly Capacity







Capacity⁴ for Foundry Segment

Total capacity during the first quarter totaled 1,858K 8-inch equivalent wafers. We foresee capacity in the second quarter to grow 3.1% QoQ to 1,916K 8-inch equivalent wafers, mostly from capacity expansion at Fab 12X.

Annual Capacity in thousands of wafers																														Quarterly Capacity in thousands of wafers
FAB						Geometry (um)				2017				2016				2015				2014								FAB				2Q18E				1Q18				4Q17				3Q17
WTK		6"				3.5 – 0.45				422				423				421				448								WTK				106				104				106				106
Fab 8A		8"				0.5 – 0.25				825				827				813				813								Fab 8A				207				204				207				207
Fab 8C		8"				0.35 – 0.11				357				348				347				347								Fab 8C				92				91				92				92
Fab 8D		8"				0.13 – 0.09				341				342				341				358								Fab 8D				86				85				86				86
Fab 8E		8"				0.5 – 0.18				418				419				418				418								Fab 8E				105				103				105				105
Fab 8F		8"				0.18 – 0.11				417				401				388				388								Fab 8F				108				107				108				107
Fab 8S		8"				0.18 – 0.11				347				336				335				335								Fab 8S				93				92				93				87
Fab 8N		8"				0.5 – 0.11				753				750				667				547								Fab 8N				194				190				194				188
Fab 12A		12"				0.13 – 0.014				970				885				793				700								Fab 12A				250				246				250				247
Fab 12i		12"				0.13 – 0.040				537				584				572				573								Fab 12i				136				131				134				134
Fab 12X		12"				0.040 – 0.028				97				9				-				-								Fab 12X				45				35				35				33
Total(1)										7,304				6,983				6,617				6,323								Total				1,916				1,858				1,886				1,861
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.

CAPEX for Foundry Segment

CAPEX spending in 1Q18 was US$195 million. Full year 2018 CAPEX plan 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

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.

Second Quarter of 2018 Outlook & Guidance

Quarter-over-Quarter Guidance:

• Wafer Shipments: To increase 2-4%
• ASP in USD: To remain flat
• Profitability: Gross profit margin will be in the mid-teens % range
• Foundry Segment Capacity Utilization: Mid-90% range
• 2018 CAPEX for Foundry Segment: US$1.1 billion

Recent Developments / Announcements

Apr. 3, 2018       UMC Fab 12i Wins Singapore's Watermark Award Mar. 7, 2018      UMC Board of Directors Announces Proposals for its Annual Shareholders Meeting Jan. 24, 2018    UMC 4Q 2017 Financial Results

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

Conference Call / Webcast Announcement

Wednesday, April 25, 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 1Q18 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 high volume 28nm High-K/Metal Gate technology, 14nm FinFET mass production, ultra-low power platform processes specifically developed for Internet of Things (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 nearly 600,000 wafers per month. The company employs over 19,000 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.

- FINANCIAL TABLES TO FOLLOW -

	UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
	Consolidated Condensed Balance Sheet
	As of March 31, 2018
	Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
		March 31, 2018
		US$		NT$		%
	Assets
	Current assets
	Cash and cash equivalents	2,650		77,143		20.0%
	Financial assets at fair value through profit or loss, current	18		525		0.1%
	Contract assets, current	5		135		0.0%
	Notes & Accounts receivable, net	859		25,013		6.5%
	Inventories, net	589		17,137		4.4%
	Other current assets	565		16,468		4.4%
	Total current assets	4,686		136,421		35.4%
	Non-current assets
	Funds and investments	1,239		36,079		9.4%
	Property, plant and equipment	6,756		196,664		51.0%
	Other non-current assets	564		16,396		4.2%
	Total non-current assets	8,559		249,139		64.6%
	Total assets	13,245		385,560		100.0%
	Liabilities
	Current liabilities
	Short-term loans	693		20,168		5.2%
	Contract liabilities, current	104		3,028		0.8%
	Payables	837		24,375		6.3%
	Current portion of long-term liabilities	681		19,829		5.2%
	Other current liabilities	178		5,169		1.3%
	Total current liabilities	2,493		72,569		18.8%
	Non-current liabilities
	Bonds payable	813		23,677		6.1%
	Long-term loans	994		28,935		7.5%
	Other non-current liabilities	1,518		44,167		11.5%
	Total non-current liabilities	3,325		96,779		25.1%
	Total liabilities	5,818		169,348		43.9%
	Equity
	Equity attributable to the parent company
	Capital	4,337		126,243		32.7%
	Additional paid-in capital	1,426		41,524		10.8%
	Retained earnings, unrealized gains or losses on financial assets measured at fair value through other comprehensive income and exchange differences on translation of foreign operations	1,840		53,561		13.9%
	Treasury stock	(183)		(5,321)		(1.4%)
	Total equity attributable to the parent company	7,420		216,007		56.0%
	Non-controlling interests	7		205		0.1%
	Total equity	7,427		216,212		56.1%
	Total liabilities and equity	13,245		385,560		100.0%
	Note：New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2018 exchange rate of NT $29.11 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, 2018										March 31, 2017										Chg.					March 31, 2018										December 31, 2017										Chg.
		US$					NT$					US$					NT$					%					US$					NT$					US$					NT$					%
Net operating revenues		1,288					37,497					1,285					37,418					0.2	%				1,288					37,497					1,258					36,631					2.4	%
Operating costs		(1,129	)				(32,855	)				(1,030	)				(29,990	)				9.6	%				(1,129	)				(32,855	)				(1,042	)				(30,333	)				8.3	%
Gross profit		159					4,642					255					7,428					(37.5	%)				159					4,642					216					6,298					(26.3	%)
		12.4	%				12.4	%				19.9	%				19.9	%									12.4	%				12.4	%				17.2	%				17.2	%
Operating expenses
- Sales and marketing expenses		(31	)				(909	)				(40	)				(1,170	)				(22.3	%)				(31	)				(909	)				(33	)				(944	)				(3.7	%)
- General and administrative expenses		(35	)				(1,017	)				(36	)				(1,050	)				(3.1	%)				(35	)				(1,017	)				(40	)				(1,164	)				(12.6	%)
- Research and development expenses		(101	)				(2,924	)				(137	)				(3,991	)				(26.7	%)				(101	)				(2,924	)				(106	)				(3,090	)				(5.4	%)
Subtotal		(167	)				(4,850	)				(213	)				(6,211	)				(21.9	%)				(167	)				(4,850	)				(179	)				(5,198	)				(6.7	%)
Net other operating income and expenses		34					977					5					154					534.4	%				34					977					28					801					22.0	%
Operating income		26					769					47					1,371					(43.9	%)				26					769					65					1,901					(59.5	%)
		2.1	%				2.1	%				3.7	%				3.7	%									2.1	%				2.1	%				5.2	%				5.2	%
Net non-operating income and expenses		38					1,088					(10	)				(304	)				-					38					1,088					(5	)				(152	)				-
Income from continuing operations before income tax		64					1,857					37					1,067					74.0	%				64					1,857					60					1,749					6.2	%
		5.0	%				5.0	%				2.9	%				2.9	%									5.0	%				5.0	%				4.8	%				4.8	%
Income tax benefit (expense)		40					1,173					14					430					172.8	%				40					1,173					(19	)				(556	)				-
Net income		104					3,030					51					1,497					102.4	%				104					3,030					41					1,193					154.0	%
		8.1	%				8.1	%				4.0	%				4.0	%									8.1	%				8.1	%				3.3	%				3.3	%
Other comprehensive income (loss)		(8	)				(234	)				(103	)				(2,997	)				(92.2	%)				(8	)				(234	)				(47	)				(1,366	)				(82.9	%)
Total comprehensive income (loss)		96					2,796					(52	)				(1,500	)				-					96					2,796					(6	)				(173	)				-
Net income attributable to:
Stockholders of the parent		117					3,400					79					2,286					48.7	%				117					3,400					61					1,771					92.0	%
Non-controlling interests		(13	)				(370	)				(28	)				(789	)				(53.1	%)				(13	)				(370	)				(20	)				(578	)				(36.0	%)
Comprehensive income (loss) attributable to:
Stockholders of the parent		108					3,158					(21	)				(599	)				-					108					3,158					14					416					659.1	%
Non-controlling interests		(12	)				(362	)				(31	)				(901	)				(59.8	%)				(12	)				(362	)				(20	)				(589	)				(38.5	%)
Earnings per share-basic		0.010					0.28					0.007					0.19										0.010					0.28					0.005					0.15
Earnings per ADS (2)		0.048					1.40					0.033					0.95										0.048					1.40					0.026					0.75
Weighted average number of shares
outstanding (in millions)							12,203										12,208															12,203										12,208
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2018 exchange rate of NT $29.11 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, 2018									March 31, 2018
	US$			NT$			%			US$			NT$			%
Net operating revenues	1,288			37,497			100.0	%		1,288			37,497			100.0	%
Operating costs	(1,129	)		(32,855	)		(87.6	%)		(1,129	)		(32,855	)		(87.6	%)
Gross profit	159			4,642			12.4	%		159			4,642			12.4	%
Operating expenses
- Sales and marketing expenses	(31	)		(909	)		(2.4	%)		(31	)		(909	)		(2.4	%)
- General and administrative expenses	(35	)		(1,017	)		(2.7	%)		(35	)		(1,017	)		(2.7	%)
- Research and development expenses	(101	)		(2,924	)		(7.8	%)		(101	)		(2,924	)		(7.8	%)
Subtotal	(167	)		(4,850	)		(12.9	%)		(167	)		(4,850	)		(12.9	%)
Net other operating income and expenses	34			977			2.6	%		34			977			2.6	%
Operating income	26			769			2.1	%		26			769			2.1	%
Net non-operating income and expenses	38			1,088			2.9	%		38			1,088			2.9	%
Income from continuing operations before income tax	64			1,857			5.0	%		64			1,857			5.0	%
Income tax benefit	40			1,173			3.1	%		40			1,173			3.1	%
Net income	104			3,030			8.1	%		104			3,030			8.1	%
Other comprehensive income (loss)	(8	)		(234	)		(0.6	%)		(8	)		(234	)		(0.6	%)
Total comprehensive income (loss)	96			2,796			7.5	%		96			2,796			7.5	%
Net income attributable to:
Stockholders of the parent	117			3,400			9.1	%		117			3,400			9.1	%
Non-controlling interests	(13	)		(370	)		(1.0	%)		(13	)		(370	)		(1.0	%)
Comprehensive income (loss) attributable to:
Stockholders of the parent	108			3,158			8.4	%		108			3,158			8.4	%
Non-controlling interests	(12	)		(362	)		(0.9	%)		(12	)		(362	)		(0.9	%)
Earnings per share-basic	0.010			0.28						0.010			0.28
Earnings per ADS (2)	0.048			1.40						0.048			1.40
Weighted average number of shares outstanding (in millions)				12,203									12,203
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2018 exchange rate of NT $29.11 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, 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	64			1,857
Depreciation & Amortization	456			13,288
Exchange gain on financial assets and liabilities	(47	)		(1,356	)
Changes in notes & accounts receivable	(112	)		(3,268	)
Changes in inventory	33			953
Changes in contract liabilities	(32	)		(919	)
Changes in assets, liabilities and others	(61	)		(1,779	)
Net cash provided by operating activities	301			8,776
Cash flows from investing activities :
Acquisition of property, plant and equipment	(196	)		(5,716	)
Acquisition of intangible assets	(9	)		(248	)
Others	228			6,630
Net cash provided by investing activities	23			666
Cash flows from financing activities :
Decrease in short-term loans	(178	)		(5,179	)
Redemption of bonds	(258	)		(7,500	)
Treasury stock acquired	(20	)		(595	)
Others	(15	)		(440	)
Net cash used in financing activities	(471	)		(13,714	)
Effect of exchange rate changes on cash and cash equivalents	(9	)		(260	)
Net decrease in cash and cash equivalents	(156	)		(4,532	)
Cash and cash equivalents at beginning of period	2,806			81,675
Cash and cash equivalents at end of period	2,650			77,143
Note: New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2018 exchange rate of NT $29.11 per U.S. Dollar.

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