UMC 4Q13 Financial Review January 24, 2014 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 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. 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. UMC © 2013 2 Operating Results Summary Unit: NT M 2013 4Q / Dec Net Operating Revenues 2013 3Q / Sep 2012 4Q / Dec 30,719 33,407 28,854 Net Income Attributable to the Stockholders of the Parent 749 3,476 739 EPS (NTD) 0.06 0.28 0.06 50,831 50,336 42,488 295,903 299,749 283,039 83,462 88,352 78,508 212,441 211,397 204,531 1,236 1,329 1,069 79% 87% 80% Cash and Cash Equivalents Total Assets Total Liabilities Stockholders' Equity Foundry Segment： Wafer Shipment (in thousands- 8" wafer eq.) Utilization (%) Note: 2012 figures of wafer shipment and utilization account for UMC parent company only. UMC © 2013 3 Income Statement - QoQ Unit: NT M 4Q13 % 3Q13 % Change % 30,719 100.0 33,407 100.0 (8.0) 5,557 18.1 7,337 22.0 (24.3) (5,317) (17.4) (4,894) (14.7) 8.6 Net Other Operating Income and Expenses (46) (0.1) (48) (0.1) (4.2) Operating Income 194 0.6 2,395 7.2 (91.9) Net Non-operating Income and Expenses 889 2.9 1,561 4.6 (43.0) (495) (1.6) (1.7) (16.1) 588 1.9 3,366 10.1 (82.5) 749 2.4 3,476 10.4 (78.5) Net Operating Revenues Gross Profit Operating Expenses Income Tax Expense Net Income Net Income Attributable to the Stockholders of the Parent EPS (NTD) EPADS (USD) (590) 0.06 0.28 0.010 0.047 Notes: 1. An exchange rate of 29.85 was used to translate NTD to USD. 2. 12,476 million and 12,460 million shares were used in EPS calculations for 4Q13 and 3Q13, respectively. UMC © 2013 4 Income Statement - YoY: 12 Months 2013 Jan~Dec Net Operating Revenues Gross Profit Operating Expenses Net Other Operating Income and Expenses Operating Income % 2012 Jan~Dec Unit: NT M Change % % 123,812 100.0 115,675 100.0 7.0 23,563 19.0 19,310 16.7 22.0 (19,406) (15.6) (15,666) (13.6) 23.9 (125) (0.1) (2,791) (2.4) (95.5) 4,032 3.3 853 0.7 372.7 Net Non-operating Income and Expenses 10,330 8.3 5,525 4.8 87.0 Income Tax Expense (2,257) (1.8) (2,146) (1.8) 5.2 Net Income Net Income Attributable to the Stockholders of the Parent EPS (NTD) EPADS (USD) 12,105 9.8 4,232 3.7 186.0 12,630 10.2 6,177 5.4 104.5 1.01 0.169 0.49 0.082 Notes: 1. An exchange rate of 29.85 was used to translate NTD to USD. 2. 12,508 million and 12,625 million shares were used in EPS calculations 2013 and 2012, respectively. UMC © 2013 5 Balance Sheet Highlight – Dec. 31, 2013 Unit: NT M Cash and Cash Equivalents 50,831 Funds and Investments 32,144 Property , Plant and Equipment 162,353 Total Assets 295,903 Current Liabilities 48,204 Long-term Credit / Bonds 28,415 Stockholders' Equity 212,441 UMC © 2013 6 Operating Segments 2013 4Q / Dec Segment Revenues Segment Net Income (Loss), net of tax Segment Assets Wafer Fabrication New Business 28,580 2,164 778 (670) Unit: NT M Subtotal 30,744 108 Adjustment/ Consolidated Elimination (25) 480 30,719 588 283,921 17,775 301,696 (5,793) 295,903 73,459 10,031 83,490 (28) 83,462 -- Capital Expenditure 7,568 183 7,751 - 7,751 -- Depreciation -- Share of Changes in Net Assets of Associates and Join Venture Accounted for Using Equity Method -- Income Tax Expense (Benefit) 8,600 571 9,171 - 9,171 479 222 Segment Liabilities Other Disclosures -- Impairment Loss (258) 1 (257) 465 30 495 - 495 536 137 673 - 673 UMC © 2013 7 Foundry ASP Trend : 8” Wafer Equivalent Unit: USD 1,500 1,000 500 0 4Q12 1Q13 2Q13 Note: 2012 figures account for UMC parent company only. 3Q13 4Q13 UMC © 2013 8 Foundry Segment Sales Breakdown by Geography 4Q13 3Q13 Europe Japan 8% 4% Europe Japan 7% 6% Asia 41% Asia 44% North America 47% North America 43% UMC © 2013 9 Foundry Segment Sales Breakdown by Geography 2013 2012 Europe Japan 8% 4% Europe Japan 8% 2% Asia 43% Asia 44% North America 45% North America 46% UMC © 2013 10 Foundry Segment Sales Breakdown by Customer 4Q13 3Q13 IDM 11% IDM 14% Fabless 89% Fabless 86% UMC © 2013 11 Foundry Segment Sales Breakdown by Customer 2013 2012 IDM 11% IDM 16% Fabless 89% Fabless 84% UMC © 2013 12 Foundry Segment Sales Breakdown by Application 4Q13 3Q13 Other 5% Other 4% Computer 15% Communication 49% Computer 16% Communication 52% Consumer 31% Consumer 28% UMC © 2013 13 Foundry Segment Sales Breakdown by Application 2013 2012 Other 4% Other 3% Computer 17% Communication 50% Computer 19% Communication 50% Consumer 29% Consumer 28% UMC © 2013 14 Foundry Segment Sales Breakdown by Technology 4Q13 ≥ 0.25/0.35um 11% 0.5um 3% 0.15/0.18um 12% 3Q13 ≤ 40nm ≥ 0.5um ≤ 40nm 24% 3% 20% ≤ 65nm 53% 65nm 29% 0.11/0.13um 14% 0.25/0.35um 10% 0.15/0.18um 11% ≤ 65nm 54% 65nm 34% 0.11/0.13um 16% 90nm 7% 90nm 6% UMC © 2013 15 Foundry Segment Sales Breakdown by Technology 2013 ≥ 0.25/0.35um 11% 0.5um 4% 0.15/0.18um 12% 2012 ≤ 40nm ≥ 0.5um ≤ 40nm 20% 4% 11% ≤ 65nm 52% 65nm 32% 0.11/0.13um 15% 0.25/0.35um 12% 0.15/0.18um 10% ≤ 65nm 51% 65nm 40% 0.11/0.13um 16% 90nm 6% 90nm 7% UMC © 2013 16 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.) 2Q13 113 204 87 96 105 98 84 128 164 134 3Q13 113 204 87 96 105 98 84 128 164 139 4Q13 113 204 87 96 105 98 84 128 164 145 1Q14E 111 201 86 94 103 96 83 126 171 145 1,537 1,548 1,560 1,563 UMC © 2013 17 2014 Foundry Capital Expenditure Plan 8" 12" Total 10% 90% 1.1~1.3 billion USD UMC © 2013 18 For more information regarding UMC www.umc.com For all inquiries, suggestions, and comments [email protected]