UMC 1Q13 Financial Review May 08, 2013 NOTE CONCERNING FORWARD-LOOKING 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 on Form F-1, F-3, F-6 and 20-F, 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. P. 2 Operating Results Summary Unit: NT M 2013 1Q / Mar Net Operating Revenues Net Income Attributable to the Stockholders of the Parent EPS (NTD) Cash and Cash Equivalents Total Assets Total Liabilities Stockholders' Equity 2012 4Q / Dec 2012 1Q / Mar 27,781 28,854 26,269 6,593 739 1,294 0.52 0.06 0.10 53,424 42,593 47,101 300,432 283,039 285,381 86,016 78,508 69,816 214,416 204,531 215,565 1,125 1,069 963 78% 80% 71% Foundry Segment： Wafer Shipment (in thousands- 8" wafer eq.) Utilization (%) Note: 2012 figures of wafer shipment and utilization account for UMC parent company only. P. 3 Income Statement - QoQ Net Operating Revenues Gross Profit Operating Expenses Net Other Operating Income (Expenses) Operating Income (Loss) Net Non-operating Income Income Tax Expense Net Income Net Income Attributable to the Stockholders of the Parent EPS (NTD) EPADS (USD) 1Q13 % 4Q12 27,781 4,492 (4,178) (20) 294 7,249 (1,129) 6,414 100.0 28,854 3,225 (3,950) (125) (850) 1,380 (124) 406 6,593 23.7 16.2 (15.0) (0.1) 1.1 26.1 (4.1) 23.1 739 0.52 0.06 0.087 0.010 Unit: NT M % Change % 100.0 (3.7) 11.2 39.3 (13.7) 5.8 (0.4) (84.0) (2.9) 4.8 425.3 (0.4) 810.5 1.4 1,479.8 2.6 792.2 Notes: 1. An exchange rate of 29.83 was used to translate NTD to USD. 2. 12,631 million and 12,636 million shares were used in EPS calculations for 1Q13 and 4Q12, respectively. P. 4 - Income Statement - YoY: 3 Months 1Q13 Net Operating Revenues Gross Profit Operating Expenses Net Other Operating Income (Expenses) Operating Income Net Non-operating Income Income Tax Expense Net Income Net Income Attributable to the Stockholders of the Parent EPS (NTD) EPADS (USD) % 1Q12 27,781 4,492 (4,178) (20) 294 7,249 (1,129) 6,414 100.0 23.1 26,269 4,022 (3,791) 34 265 1,008 (206) 1,067 6,593 23.7 1,294 0.52 0.087 16.2 (15.0) (0.1) 1.1 26.1 (4.1) Unit: NT M % Change % 100.0 5.8 15.3 11.7 (14.4) 10.2 0.1 - 1.0 10.9 3.8 619.1 (0.7) 448.1 4.1 501.1 4.9 409.5 0.10 0.017 Notes: 1. An exchange rate of 29.83 was used to translate NTD to USD. 2. 12,631 million and 12,613 million shares were used in EPS calculations for 1Q13 and 1Q12, respectively. P. 5 Balance Sheet Highlight – Mar. 31, 2013 Unit: NT M Cash and Cash Equivalents 53,424 Funds and Investments 32,926 Property , Plant and Equipment 164,933 Total Assets 300,432 Current Liabilities 37,300 Long-term Credit / Bonds 41,548 Stockholders' Equity 214,416 P. 6 Operating Segments 2013 1Q / Mar Foundry Segment Revenues Segment Profit ( Loss ) Segment Assets Segment Liabilities 26,369 6,601 Other 1,435 (826) Unit: NT M Subtotal Reconciliation/ Elimination 27,804 (23) 27,781 5,775 639 6,414 Total 286,826 20,345 307,171 (6,739) 300,432 74,893 11,157 86,050 (34) 86,016 6,949 8,919 233 537 7,182 9,456 Other Disclosures -- Capital Expenditure -- Depreciation -- Share of Profit ( Loss ) of Associates and Joint Ventures -- Income Tax Expense ( Benefit ) -- Impairment Loss (467) 9 1,129 158 (0) 5 P. 7 (458) 1,129 163 - 7,182 9,456 639 181 - 1,129 163 Foundry ASP Trend : 8” Wafer Equivalent Unit: USD 1,500 1,000 500 0 1Q12 2Q12 3Q12 Note: 2012 figures account for UMC parent company only. P. 8 4Q12 1Q13 Foundry Segment Sales Breakdown by Geography 1Q13 4Q12 Europe Japan 9% 1% Europe Japan 9% 1% Asia 46% Asia 45% North America 44% North America 45% Note: 2012 figures account for UMC parent company only. P. 9 Foundry Segment Sales Breakdown by Customer 1Q13 4Q12 IDM 10% IDM 10% Fabless 90% Fabless 90% Note: 2012 figures account for UMC parent company only. P. 10 Foundry Segment Sales Breakdown by Application 1Q13 4Q12 Other 3% Other 3% Computer 18% Computer 22% Communication 47% Communication 50% Consumer 28% Note: 2012 figures account for UMC parent company only. P. 11 Consumer 29% Foundry Segment Sales Breakdown by Technology 1Q13 ≥ 0.25/0.35um 11% 0.5um 40nm 18% 4% 4Q12 ≥ 0.5um 0.25/0.35um 10% ≤ 65nm 50% 3% 40nm 15% ≤ 65nm 55% 0.15/0.18um 10% 0.15/0.18um 15% 0.11/0.13um 14% 90nm 6% 65nm 32% 0.11/0.13um 15% 90nm 7% Note: 2012 figures account for UMC parent company only. P. 12 65nm 40% Quarterly Capacity Unit: in thousands FAB Fab6A Fab8A Fab8C Fab8D Fab8E Fab8F Fab8S Fab8N Fab12A Fab12i Total (6") (8") (8") (8") (8") (8") (8") (8") (12") (12") (8" eq.) 3Q12 123 204 90 93 113 98 87 143 134 1,376 4Q12 113 204 90 93 113 98 87 156 134 1,401 P. 13 1Q13 111 201 86 94 103 96 83 83 158 132 1,461 2Q13E 113 204 87 96 105 98 84 128 164 134 1,537 2013 Foundry Capital Expenditure Plan 8" 12" Total 4% 96% 1.5 billion USD P. 14 For more information regarding UMC www.umc.com For all inquiries, suggestions, and comments [email protected] P. 15