UMC 2010 Q1 Financial Review April 28, 2010 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 unaudited and unconsolidated, and prepared and published in accordance with ROC GAAP. Investors are cautioned that there are many differences between 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 2010 Q1 / Mar Net Operating Revenues Net Income (Loss) EPS (NTD) Cash and Cash Equivalents Total Assets Total Liabilities Shareholders' Equity Wafer Shipment (in thousands- 8" wafer eq. ) Utilization (%) P. 3 2009 Q4 / Dec 2009 Q1 / Mar 26,715 27,746 10,838 3,482 4,396 (8,160) 0.28 0.35 (0.64) 48,536 52,792 35,906 246,772 251,890 206,132 38,938 38,292 22,669 207,834 213,598 183,463 1,033 990 384 88% 86% 30% Income Statement - QoQ Unit: NT M Q1-10 Net Operating Revenues Gross Profit Operating Expenses Operating Income Net Non-operating Income Income Tax Expense % Q4-09 % 26,715 100.0 27,746 100.0 (3.7) 6,559 24.6 7,179 25.9 (8.6) (3,155) (11.9) (3,435) (12.4) (8.2) 3,404 12.7 3,744 13.5 (9.1) 197 0.8 700 2.5 (71.9) (119) (0.5) (0.2) 147.9 15.8 (20.8) Net Income 3,482 EPS (NTD) EPADS (USD) 0.28 0.044 13.0 (48) 4,396 0.35 0.055 Notes: 1. Information enclosed is UMC unconsolidated financial data. 2. Exchange rate 31.74 was used to translate NTD to USD. 3. 12,638 million and 12,687 million shares were used in EPS calculation for Q1-10 and Q4-09, respectively. P. 4 Change % Income Statement - YoY: 3 Months Unit: NT M Q1-10 Net Operating Revenues Gross Profit (Loss) Operating Expenses Operating Income (Loss) Net Non-operating Income (Expense) Income Tax Expense % Q1-09 % 26,715 100.0 6,559 24.6 (4,335) (40.0) - (3,155) (11.9) (2,982) (27.5) 5.8 3,404 12.7 (7,317) (67.5) - 197 0.8 (843) (7.8) - (119) (0.5) (0) (0.0) - (8,160) (75.3) - Net Income (Loss) 3,482 EPS (NTD) EPADS (USD) 0.28 0.044 13.0 10,838 100.0 (0.64) (0.101) Notes: 1. Information enclosed is UMC unconsolidated financial data. 2. Exchange rate 31.74 was used to translate NTD to USD. 3. 12,638 million and 12,767 million shares were used in EPS calculation for Q1-10 and Q1-09, respectively. P. 5 Change % 146.5 Investment Income Unit: NT M Investment gain(loss) accounted for under the equity method Impairment loss Q1-10 Q4-09 (136) 780 0 Gain on valuation of financial assets (300) 144 443 Cash dividends 0 0 Total 8 923 P. 6 Balance Sheet Highlight - Mar. 31, 2010 Unit: NT M Cash and Cash Equivalents 48,536 Funds and Investments 67,404 Fixed Assets 88,791 Total Assets 246,772 Current Liabilities 34,660 Long-term Loans 797 Shareholders' Equity Depreciation Expense (YTD) P. 7 207,834 7,941 Average Selling Price Trend- 8” Wafer Equivalent Unit: USD 1,500 1,000 500 0 Q1-09 Q2-09 P. 8 Q3-09 Q4-09 Q1-10 Sales Breakdown by Geography 2010 Q1 2009 Q4 Europe Japan 10% 1% Europe Japan 8% 1% Asia 42% Asia 40% North America 47% P. 9 North America 51% Sales Breakdown by Customer 2010 Q1 2009 Q4 IDM 19% IDM 20% Fabless 81% P. 10 Fabless 80% Sales Breakdown by Application 2010 Q1 Other 1% 2009 Q4 Memory 1% Computer 13% Communication 59% Other 2% Computer 11% Communication 62% Consumer 26% P. 11 Consumer 25% Sales Breakdown by Technology 2010 Q1 ≥ 0.5um 6% ≤ 2009 Q4 ≥ 65nm 18% 0.25 / 0.35um 11% 0.5um 5% ≤ 65nm 17% 0.25 / 0.35um 11% 90nm 22% 0.15 / 0.18um 18% 90nm 25% 0.15 / 0.18um 19% 0.13um 23% 0.13um 25% P. 12 Quarterly Capacity FAB Fab6A Fab8A Fab8C Fab8D Fab8E Fab8F Fab8S Fab12A Fab12i Total 3Q09 82 204 99 68 102 96 75 222 204 1,152 P. 13 unit: in thousands (8" wafer eq.) 4Q09 1Q10 2Q10E 82 82 82 204 204 204 99 96 90 68 71 78 102 102 102 96 96 96 75 75 75 200 209 209 206 219 245 1,132 1,154 1,181 2010 Capital Expenditure Plan UMC 8" 12" Total 10% 90% 1.2~1.5 billion USD P. 14 For more information regarding UMC www.umc.com For all inquiries, suggestions, and comments [email protected] P. 15