EX-99.1 2 ex99-1.htm EX-99.1

UNITED MICROELECTRONICS CORPORATION

AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

WITH REPORT OF INDEPENDENT AUDITORS

FOR THE THREE-MONTH PERIODS ENDED

MARCH 31, 2023 AND 2022

Address: No. 3 Li-Hsin 2nd Road, Hsinchu Science Park, Hsinchu, Taiwan, R.O.C.

Telephone: 886-3-578-2258

The reader is advised that these consolidated financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese language financial statements shall prevail.

Review Report of Independent Auditors

To United Microelectronics Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of United Microelectronics Corporation and its subsidiaries (collectively, “the Company”) as of March 31, 2023 and 2022, the related consolidated statements of comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2023 and 2022, and notes to the consolidated financial statements, including the summary of significant accounting policies (together “the consolidated financial statements”). Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed and became effective by Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with the Standard on Review Engagements 2410, “Review of Financial Information Performed by the Independent Auditor of the Entity” of the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing of the Republic of China and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our reviews and the review reports of other independent auditors (please refer to the Other Matter paragraph of our report), nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Company as of March 31, 2023 and 2022, and its consolidated financial performance and cash flows for the three-month periods ended March 31, 2023 and 2022, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed and became effective by Financial Supervisory Commission of the Republic of China.

Other Matter – Making Reference to the Reviews of Other Independent Auditors

We did not review the financial statement of certain associates and joint ventures accounted for under the equity method. Our review, insofar as it related to the investments accounted for under the equity method balances of NT$29,217 million and NT$27,255 million, which represented 5.32% and 5.64% of the total consolidated assets as of March 31, 2023 and 2022, respectively, the related shares of profit or loss from the associates and joint ventures in the amount of NT$3,146 million and NT$(1,958) million, which represented 16.44% and (8.28)% of the consolidated income from continuing operations before income tax for the three-month periods ended March 31, 2023 and 2022, respectively, and the related shares of other comprehensive income from the associates and joint ventures in the amount of NT$58 million and NT$96 million, which represented 0.29% and 0.45% of the consolidated total comprehensive income for the three-month periods ended March 31, 2023 and 2022, respectively, are based solely on the reports of other independent auditors.

/s/ Yang, Yu-Ni

/s/ Hsu, Hsin-Min

Ernst & Young, Taiwan

April 26, 2023

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally accepted and applied in the Republic of China.

Accordingly, the accompanying consolidated financial statements and report of independent auditors are not intended for use by those who are not informed about the accounting principles or Standards on Auditing of the Republic of China, and their applications in practice.

English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 2023, December 31, 2022 and March 31, 2022 (March 31, 2023 and 2022 are unaudited)
(Expressed in Thousands of New Taiwan Dollars)

			As of
Assets	Notes		March 31, 2023		December 31, 2022		March 31, 2022
Current assets
Cash and cash equivalents		4, 6(1)	$	171,834,458	$	173,818,777	$	172,170,231
Financial assets at fair value through profit or loss, current		4, 5, 6(2)		751,386		705,918		775,035
Financial assets at fair value through other comprehensive income, current		4, 5, 6(3)		4,394,403		3,213,057		6,082,662
Financial assets measured at amortized cost, current		4, 6(4)		259,264		861,817		3,026,877
Contract assets, current		4, 6(21)		335,456		373,318		338,593
Accounts receivable, net		4, 6(5)		26,674,425		36,444,510		37,079,955
Accounts receivable-related parties, net		4, 7		390,603		530,577		967,590
Other receivables		4		1,838,971		1,807,999		775,428
Current tax assets		4		65,094		40,256		12,137
Inventories, net		4, 5, 6(6)		32,678,867		31,069,960		25,400,701
Prepayments				1,982,304		2,783,945		2,378,980
Other current assets		6(21)		761,984		720,904		674,980
Total current assets				241,967,215		252,371,038		249,683,169

Non-current assets
Financial assets at fair value through profit or loss, noncurrent		4, 5, 6(2)		18,056,411		17,784,651		21,557,371
Financial assets at fair value through other comprehensive income, noncurrent		4, 5, 6(3)		13,869,030		11,976,543		12,086,558
Financial assets measured at amortized cost, noncurrent		4, 6(4)		7,491		7,491		8,786
Investments accounted for under the equity method		4, 6(7), 7		40,153,924		35,086,289		38,747,795
Property, plant and equipment		4, 6(8), 8		192,184,500		170,982,066		130,956,078
Right-of-use assets		4, 6(9), 8		7,540,463		7,611,991		7,156,909
Intangible assets		4, 6(10), 7		3,970,977		4,275,200		3,602,842
Deferred tax assets		4		5,070,034		5,051,369		5,093,475
Prepayment for equipment				18,502,796		19,439,559		9,123,328
Refundable deposits		8		2,749,664		2,749,691		2,390,529
Other noncurrent assets-others				5,558,609		5,716,204		2,501,676
Total non-current assets				307,663,899		280,681,054		233,225,347

Total assets			$	549,631,114	$	533,052,092	$	482,908,516

(continued)

English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 2023, December 31, 2022 and March 31, 2022 (March 31, 2023 and 2022 are unaudited)
(Expressed in Thousands of New Taiwan Dollars)

			As of
Liabilities and Equity	Notes		March 31, 2023			December 31, 2022			March 31, 2022
Current liabilities
Short-term loans		6(11), 6(28)	$	100,000		$	-		$	1,339,861
Financial liabilities at fair value through profit or loss, current		4, 6(12)		782,936			438,397			1,158,090
Contract liabilities, current		4, 6(21)		3,269,274			3,546,815			4,396,351
Accounts payable				9,213,490			8,982,418			9,062,406
Other payables		4, 6(20), 6(22), 7		28,078,902			31,279,208			22,601,232
Payables on equipment				18,438,429			18,632,245			7,631,442
Current tax liabilities		4		14,615,454			15,407,351			6,658,032
Lease liabilities, current		4, 6(9), 6(28)		541,733			537,314			567,191
Other financial liabilities, current		6(28), 9(6)		17,314,748			17,226,490			13,207,549
Current portion of long-term liabilities		4, 6(13), 6(14), 6(28)		9,674,114			7,586,644			21,238,091
Other current liabilities		4, 6(16), 6(17), 6(28), 7		3,856,904			4,928,283			5,260,151
Total current liabilities				105,885,984			108,565,165			93,120,396

Non-current liabilities
Contract liabilities, noncurrent		4, 6(21)		426,860			438,188			594,714
Bonds payable		4, 6(13), 6(28)		20,985,894			23,083,096			23,078,853
Long-term loans		6(14), 6(28)		16,317,372			16,794,289			26,988,132
Deferred tax liabilities		4		3,874,127			3,372,512			1,970,842
Lease liabilities, noncurrent		4, 6(9), 6(28)		5,186,609			5,199,781			4,482,036
Net defined benefit liabilities, noncurrent		4		2,642,055			2,869,402			3,214,784
Guarantee deposits		6(28)		32,193,560			30,518,585			14,681,440
Other noncurrent liabilities-others		4, 6(16), 6(18), 6(20), 6(28), 9(6)		6,568,590			6,760,135			12,492,212
Total non-current liabilities				88,195,067			89,035,988			87,503,013

Total liabilities				194,081,051			197,601,153			180,623,409

Equity attributable to the parent company
Capital		4, 6(19)
Common stock				125,047,490			125,047,490			124,821,235
Additional paid-in capital		4, 6(19), 6(20)
Premiums				3,215,160			3,215,160			39,889,798
Treasury stock transactions				4,531,955			4,531,955			4,531,955
The differences between the fair value of the consideration paid or received from acquiring or disposing subsidiaries and the carrying amounts of the subsidiaries				466,457			466,457			466,457
Recognition of changes in subsidiaries’ ownership				-			-			1,338
Share of changes in net assets of associates and joint ventures accounted for using equity method				339,737			196,359			87,869
Restricted stock for employees				2,221,709			2,221,709			2,249,369
Other				2,200,688			1,746,193			240,880
Retained earnings		6(19)
Legal reserve				21,566,986			21,566,986			15,734,416
Special reserve				4,914,214			4,914,214			8,164,648
Unappropriated earnings				191,669,715			175,765,824			111,130,417
Other components of equity		4, 6(20)
Exchange differences on translation of foreign operations				(7,615,378	)		(6,516,198	)		(12,752,970	)
Unrealized gains or losses on financial assets measured at fair value through other comprehensive income				8,189,022			3,782,141			9,260,608
Unearned employee compensation				(1,542,119	)		(1,831,030	)		(1,835,182	)
Total equity attributable to the parent company				355,205,636			335,107,260			301,990,838

Non-controlling interests		6(19)		344,427			343,679			294,269
Total equity				355,550,063			335,450,939			302,285,107

Total liabilities and equity			$	549,631,114		$	533,052,092		$	482,908,516

The accompanying notes are an integral part of the consolidated financial statements.

English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the three-month periods ended March 31, 2023 and 2022
(Expressed in Thousands of New Taiwan Dollars, Except for Earnings per Share)

			For the three-month periods ended March 31,
	Notes		2023			2022
Operating revenues		4, 6(21), 7	$	54,209,447		$	63,422,820
Operating costs		4, 6(6), 6(10), 6(15), 6(20), 6(21), 6(22), 7		(34,985,007	)		(35,918,490	)
Gross profit				19,224,440			27,504,330
Operating expenses		4, 6(5), 6(10), 6(15), 6(20), 6(22), 7
Sales and marketing expenses				(950,313	)		(1,254,548	)
General and administrative expenses				(2,102,198	)		(2,226,939	)
Research and development expenses				(2,766,607	)		(3,032,939	)
Expected credit impairment gains				38,586			945
Subtotal				(5,780,532	)		(6,513,481	)
Net other operating income and expenses		4, 6(16), 6(23)		1,036,790			1,343,338
Operating income				14,480,698			22,334,187
Non-operating income and expenses
Interest income		4		1,229,719			168,970
Other income		4		13,945			16,630
Other gains and losses		4, 6(24)		742,166			2,564,170
Finance costs		6(24)		(347,250	)		(503,890	)
Share of profit or loss of associates and joint ventures		4, 6(7)		3,248,054			(1,858,432	)
Exchange gain, net		4		-			926,239
Exchange loss, net		4		(238,881	)		-
Subtotal				4,647,753			1,313,687
Income from continuing operations before income tax				19,128,451			23,647,874
Income tax expense		4, 6(26)		(2,743,904	)		(3,582,251	)
Net income				16,384,547			20,065,623
Other comprehensive income (loss)		6(25)
Items that will not be reclassified subsequently to profit or loss
Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income		4		3,073,833			(1,666,445	)
Share of other comprehensive income (loss) of associates and joint ventures which will not be reclassified subsequently to profit or loss				1,343,564			(733,160	)
Income tax related to items that will not be reclassified subsequently		4, 6(26)		6,873			(55,120	)
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations				(1,187,684	)		3,773,432
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss				6,968			133,067
Income tax related to items that may be reclassified subsequently		4, 6(26)		81,533			(29,890	)
Total other comprehensive income (loss)				3,325,087			1,421,884
Total comprehensive income (loss)			$	19,709,634		$	21,487,507

Net income (loss) attributable to:
Shareholders of the parent			$	16,183,002		$	19,807,535
Non-controlling interests				201,545			258,088
			$	16,384,547		$	20,065,623

Comprehensive income (loss) attributable to:
Shareholders of the parent			$	19,508,092		$	21,229,387
Non-controlling interests				201,542			258,120
			$	19,709,634		$	21,487,507

Earnings per share (NTD)		4, 6(27)
Earnings per share-basic			$	1.31		$	1.61
Earnings per share-diluted			$	1.28		$	1.58

The accompanying notes are an integral part of the consolidated financial statements.

English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the three-month periods ended March 31, 2023 and 2022
(Expressed in Thousands of New Taiwan Dollars)

			Equity Attributable to the Parent Company
			Capital								Retained Earnings								Other Components of Equity
																Exchange Differences on			Unrealized Gains or Losses on Financial Assets Measured at Fair Value
																Translation of			through Other			Unearned						Non-
						Additional							Unappropriated			Foreign			Comprehensive			Employee						Controlling
	Notes		Common Stock			Paid-in Capital			Legal Reserve		Special Reserve		Earnings			Operations			Income			Compensation			Total			Interests			Total Equity
Adjusted balance as of January 1, 2022		6(19)	$	124,832,476		$	47,898,093		$	15,734,416	$	8,164,648	$	91,322,882		$	(16,629,547	)	$	11,715,333		$	(2,212,441	)	$	280,825,860		$	157,092		$	280,982,952
Net income for the three-month ended March 31, 2022		6(19)		-			-			-		-		19,807,535			-			-			-			19,807,535			258,088			20,065,623
Other comprehensive income (loss) for the three-month period ended March 31, 2022		6(19), 6(25)		-			-			-		-		-			3,876,577			(2,454,725	)		-			1,421,852			32			1,421,884
Total comprehensive income (loss)				-			-			-		-		19,807,535			3,876,577			(2,454,725	)		-			21,229,387			258,120			21,487,507
Share-based payment transaction		4, 6(20)		(11,241	)		11,241			-		-		-			-			-			377,259			377,259			-			377,259
Share of changes in net assets of associates and joint ventures accounted for using equity method				-			(20	)		-		-		-			-			-			-			(20	)		-			(20	)
Changes in subsidiaries’ ownership		4, 6(19)		-			1,338			-		-		-			-			-			-			1,338			(1,338	)		-
Non-Controlling Interests		6(19)		-			-			-		-		-			-			-			-			-			4,842			4,842
Others		6(19)		-			(442,986	)		-		-		-			-			-			-			(442,986	)		(124,447	)		(567,433	)
Balance as of March 31, 2022		6(19)	$	124,821,235		$	47,467,666		$	15,734,416	$	8,164,648	$	111,130,417		$	(12,752,970	)	$	9,260,608		$	(1,835,182	)	$	301,990,838		$	294,269		$	302,285,107

Balance as of January 1, 2023		6(19)	$	125,047,490		$	12,377,833		$	21,566,986	$	4,914,214	$	175,765,824		$	(6,516,198	)	$	3,782,141		$	(1,831,030	)	$	335,107,260		$	343,679		$	335,450,939
Net income for the three-month ended March 31, 2023		6(19)		-			-			-		-		16,183,002			-			-			-			16,183,002			201,545			16,384,547
Other comprehensive income (loss) for the three-month period ended March 31, 2023		6(19), 6(25)		-			-			-		-		-			(1,099,180	)		4,424,270			-			3,325,090			(3	)		3,325,087
Total comprehensive income (loss)				-			-			-		-		16,183,002			(1,099,180	)		4,424,270			-			19,508,092			201,542			19,709,634
Share-based payment transaction		4, 6(20)		-			-			-		-		(2,334	)		-			-			288,911			286,577			2,334			288,911
Share of changes in net assets of associates and joint ventures accounted for using equity method				-			26,114			-		-		17,445			-			(17,445	)		-			26,114			-			26,114
Disposal of investments accounted for under the equity method				-			117,264			-		-		(56	)		-			56			-			117,264			-			117,264
Changes in subsidiaries’ ownership		4, 6(19)		-			-			-		-		(294,166	)		-			-			-			(294,166	)		(17	)		(294,183	)
Non-Controlling Interests		6(19)		-			-			-		-		-			-			-			-			-			100			100
Others		6(19)		-			454,495			-		-		-			-			-			-			454,495			(203,211	)		251,284
Balance as of March 31, 2023		6(19)	$	125,047,490		$	12,975,706		$	21,566,986	$	4,914,214	$	191,669,715		$	(7,615,378	)	$	8,189,022		$	(1,542,119	)	$	355,205,636		$	344,427		$	355,550,063

The accompanying notes are an integral part of the consolidated financial statements.

English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three-month periods ended March 31, 2023 and 2022
(Expressed in Thousands of New Taiwan Dollars)

	For the three-month periods ended March 31,
	2023			2022
Cash flows from operating activities:
Net income before tax	$	19,128,451		$	23,647,874
Adjustments to reconcile net income before tax to net cash provided by operating activities:
Depreciation		9,222,348			10,656,479
Amortization		680,441			733,034
Expected credit impairment gains		(38,586	)		(945	)
Net gain of financial assets and liabilities at fair value through profit or loss		(705,829	)		(2,417,830	)
Interest expense		321,534			491,766
Interest income		(1,229,719	)		(168,970	)
Dividend income		(13,945	)		(16,630	)
Share-based payment		288,911			377,259
Share of loss (profit) of associates and joint ventures		(3,248,054	)		1,858,432
Gain on disposal of property, plant and equipment		(59,020	)		(61,418	)
Gain on disposal of investments accounted for under the equity method		(19,548	)		-
Loss on repurchases of bonds		-			31,852
Exchange loss (gain) on financial assets and liabilities		(201,595	)		226,914
Gain on lease modification		(51	)		-
Amortization of deferred government grants		(931,702	)		(1,053,908	)
Income and expense adjustments		4,065,185			10,656,035
Changes in operating assets and liabilities:
Financial assets and liabilities at fair value through profit or loss		275,156			(234,821	)
Contract assets		34,883			(18,952	)
Accounts receivable		9,862,071			(2,579,924	)
Other receivables		87,186			64,652
Inventories		(1,676,588	)		(2,133,994	)
Prepayments		871,406			(434,127	)
Contract fulfillment costs		(42,292	)		(56,949	)
Contract liabilities		(286,340	)		790,809
Accounts payable		265,961			638,634
Other payables		(3,078,183	)		809,329
Other current liabilities		(557,204	)		(166,346	)
Net defined benefit liabilities		(227,347	)		(662,537	)
Other noncurrent liabilities-others		10,785			20,880
Cash generated from operations		28,733,130			30,340,563
Interest received		1,196,844			170,552
Dividend received		37,732			506,591
Interest paid		(67,143	)		(131,334	)
Income tax paid		(2,936,364	)		(768,576	)
Net cash provided by operating activities		26,964,199			30,117,796

(continued)

English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three-month periods ended March 31, 2023 and 2022
(Expressed in Thousands of New Taiwan Dollars)

	For the three-month periods ended March 31,
	2023			2022
Cash flows from investing activities:
Acquisition of financial assets at fair value through profit or loss	$	(328,626	)	$	(205,112	)
Proceeds from disposal of financial assets at fair value through profit or loss		140,025			57,623
Acquisition of financial assets measured at amortized cost		(11,272	)		(1,776,022	)
Proceeds from redemption of financial assets measured at amortized cost		609,649			28,090,877
Proceeds from disposal of investments accounted for under the equity method		293,266			-
Increase in prepayment for investments		-			(76,008	)
Acquisition of property, plant and equipment		(29,756,200	)		(10,802,553	)
Proceeds from disposal of property, plant and equipment		13,137			107,657
Increase in refundable deposits		(17,222	)		(67,332	)
Decrease in refundable deposits		12,784			42,361
Acquisition of intangible assets		(527,631	)		(420,574	)
Government grants related to assets acquisition		7,550			250
Increase in other noncurrent assets-others		(21,669	)		(199,029	)
Net cash provided by (used in) investing activities		(29,586,209	)		14,752,138
Cash flows from financing activities:
Increase in short-term loans		100,000			-
Decrease in short-term loans		-			(640,426	)
Redemption of bonds		-			(7,249,135	)
Proceeds from long-term loans		4,980			231,330
Repayments of long-term loans		(590,070	)		(203,325	)
Increase in guarantee deposits		2,327,873			71,760
Decrease in guarantee deposits		(336,443	)		(2,119	)
Cash payments for the principal portion of the lease liability		(159,259	)		(171,822	)
Change in non-controlling interests		100			4,842
Others		(92	)		(553	)
Net cash provided by (used in) financing activities		1,347,089			(7,959,448	)
Effect of exchange rate changes on cash and cash equivalents		(709,398	)		2,637,614
Net increase (decrease) in cash and cash equivalents		(1,984,319	)		39,548,100
Cash and cash equivalents at beginning of period		173,818,777			132,622,131
Cash and cash equivalents at end of period	$	171,834,458		$	172,170,231


The accompanying notes are an integral part of the consolidated financial statements.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

For the Three-Month Periods Ended March 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

HISTORY AND ORGANIZATION

United Microelectronics Corporation (UMC) was incorporated in Republic of China (R.O.C.) in May 1980 and commenced operations in April 1982. UMC is a full service semiconductor wafer foundry, and provides a variety of services to satisfy customer needs. UMC’s ordinary shares were publicly listed on the Taiwan Stock Exchange (TWSE) in July 1985 and its American Depositary Shares (ADSs) were listed on the New York Stock Exchange (NYSE) in September 2000.

The address of its registered office and principal place of business is No. 3, Li-Hsin 2nd Road, Hsinchu Science Park, Hsinchu, Taiwan. The principal operating activities of UMC and its subsidiaries (collectively as “the Company”) are described in Notes 4(3) and 14.

DATE AND PROCEDURES OF AUTHORIZATION OF FINANCIAL STATEMENTS FOR ISSUE

The consolidated financial statements of the Company were authorized for issue in accordance with a resolution of the Board of Directors’ meeting on April 26, 2023.

NEWLY ISSUED OR REVISED STANDARDS AND INTERPRETATIONS

(1)

The Company applied International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended which are endorsed by Financial Supervisory Commission (FSC) and become effective for annual periods beginning on or after January 1, 2023. There are no newly adopted or revised standards and interpretations that have material impact on the Company’s financial position and performance.

(2)

Standards issued by International Accounting Standards Board (IASB) but not yet endorsed by FSC (the effective dates are to be determined by FSC) are listed below:

New, Revised or Amended Standards and Interpretations		Effective Date issued by IASB
IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” - Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures		To be determined by IASB
IFRS 17 “Insurance Contracts”		January 1, 2023
Amendments to IAS 1 “Presentation of Financial Statements” - Classification of Liabilities as Current or Non-current		January 1, 2024
Amendments to IFRS 16 “Leases” - Lease Liability in a Sale and Leaseback		January 1, 2024
Amendments to IAS 1 “Presentation of Financial Statements” - Non-current Liabilities with Covenants		January 1, 2024

The potential effects of adopting the standards or interpretations issued by IASB but not yet endorsed by FSC on the Company’s financial statements in future periods are summarized as below:

IFRS 10 “Consolidated Financial Statements” (IFRS 10) and IAS 28 “Investments in Associates and Joint Ventures” - Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures (Amendment) (IAS 28)

The amendments address the inconsistency between the requirements in IFRS 10 and IAS 28, in dealing with the loss of control of a subsidiary that is contributed to an associate or a joint venture. IAS 28 restricts gains and losses arising from contributions of non-monetary assets to an associate or a joint venture to the extent of the interest attributable to the other equity holders in the associate or joint venture. IFRS 10 requires full profit or loss recognition on the loss of control of a subsidiary. IAS 28 was amended so that the gain or loss resulting from the sale or contribution of assets that constitute a business as defined in IFRS 3 “Business Combinations” (IFRS 3) between an investor and its associate or joint venture is recognized in full.

IFRS 10 was also amended so that the gain or loss resulting from the sale or contribution of a subsidiary that does not constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized only to the extent of the unrelated investors’ interests in the associate or joint venture.

IFRS 17 “Insurance Contracts” (IFRS 17)

IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects (including recognition, measurement, presentation and disclosure requirements). The core of IFRS 17 is the General (building block) Model, under this model, on initial recognition, an entity shall measure a group of insurance contracts at the total of the fulfilment cash flows and the contractual service margin. The carrying amount of a group of insurance contracts at the end of each reporting period shall be the sum of the liability for remaining coverage and the liability for incurred claims.

Other than the General Model, the standard also provides a specific adaptation for contracts with direct participation features (the Variable Fee Approach) and a simplified approach (Premium Allocation Approach) mainly for short-duration contracts.

IFRS 17 was issued in May 2017 and it was amended in 2020 and 2021. The amendments include deferral of the date of initial application of IFRS 17 by two years to annual beginning on or after 1 January 2023 (from the original effective date of 1 January 2021); provide additional transition reliefs; simplify some requirements to reduce the costs of applying IFRS 17 and revise some requirements to make the results easier to explain. IFRS 17 replaces an interim Standard - IFRS 4 Insurance Contracts - from annual reporting periods beginning on or after 1 January 2023.

IAS 1 “Presentation of Financial Statements” (IAS 1) - Classification of Liabilities as Current or Non-current (Amendment)

These are the amendments to paragraphs 69-76 of IAS 1 presentation of financial statements and the amended paragraphs related to the classification of liabilities as current or non-current.

IFRS 16 “Leases” (IFRS 16) - Lease Liability in a Sale and Leaseback (Amendment)

The amendments add seller-lessee additional requirements for the sale and leaseback transactions in IFRS 16, thereby supporting the consistent application of the standard.

IAS 1 “Presentation of Financial Statements” (IAS 1) - Non-current Liabilities with Covenants (Amendment)

The amendments improved the information companies provide about long-term debt with covenants. The amendments specify that covenants to be complied within twelve months after the reporting period do not affect the classification of debt as current or non-current at the end of the reporting period.

The Company is currently evaluating the potential impact of the aforementioned standards and interpretations listed (a) - (e) to the Company’s financial position and performance, and the related impact will be disclosed when the evaluation is completed.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1)

Statement of Compliance

The Company’s consolidated financial statements were prepared in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers (Regulations) and IAS 34 “Interim Financial Reporting” which is endorsed and become effective by FSC.

(2)

Basis of Preparation

The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments measured at fair value.

(3)

General Description of Reporting Entity

Principles of consolidation

The same principles of consolidation have been applied in the Company’s consolidated financial statements as those applied in the Company’s consolidated financial statements for the year ended December 31, 2022. For the principles of consolidation, please refer to Note 4(3) of the Company’s consolidated financial statements for the year ended December 31, 2022.

The consolidated entities are as follows:

As of March 31, 2023, December 31, 2022 and March 31, 2022


			Percentage of ownership (%) As of
Investor	Subsidiary	Business nature	March 31, 2023	December 31, 2022	March 31, 2022
UMC	UMC GROUP (USA)	IC Sales	100.00	100.00	100.00
UMC	UNITED MICROELECTRONICS (EUROPE) B.V.	Marketing support activities	100.00	100.00	100.00
UMC	UMC CAPITAL CORP.	Investment holding	100.00	100.00	100.00
UMC	GREEN EARTH LIMITED (GE)	Investment holding	100.00	100.00	100.00
UMC	TLC CAPITAL CO., LTD. (TLC)	Venture capital	100.00	100.00	100.00
UMC	UMC INVESTMENT (SAMOA) LIMITED	Investment holding	100.00	100.00	100.00
UMC	FORTUNE VENTURE CAPITAL CORP. (FORTUNE)	Consulting and planning for venture capital	100.00	100.00	100.00
UMC	UMC KOREA CO., LTD.	Marketing support activities	100.00	100.00	100.00
UMC	OMNI GLOBAL LIMITED (OMNI)	Investment holding	100.00	100.00	100.00
UMC	SINO PARAGON LIMITED	Investment holding	100.00	100.00	100.00
UMC	BEST ELITE INTERNATIONAL LIMITED (BE)	Investment holding	100.00	100.00	100.00
UMC	UNITED SEMICONDUCTOR JAPAN CO., LTD.	Sales and manufacturing of integrated circuits	100.00	100.00	100.00
UMC and FORTUNE	WAVETEK MICROELECTRONICS CORPORATION (WAVETEK)	Sales and manufacturing of integrated circuits	80.13	80.14	80.17
TLC	SOARING CAPITAL CORP.	Investment holding	100.00	100.00	100.00
SOARING CAPITAL CORP.	UNITRUTH ADVISOR (SHANGHAI) CO., LTD.	Investment holding and advisory	100.00	100.00	100.00
GE	UNITED MICROCHIP CORPORATION	Investment holding	100.00	100.00	100.00
FORTUNE	TERA ENERGY DEVELOPMENT CO., LTD. (TERA ENERGY)	Energy technical services	100.00	100.00	100.00

TERA ENERGY	EVERRICH ENERGY INVESTMENT (HK) LIMITED (EVERRICH-HK)	Investment holding	100.00	100.00	100.00
EVERRICH-HK	EVERRICH (SHANDONG) ENERGY CO., LTD.	Solar engineering integrated design services	100.00	100.00	100.00
OMNI	UNITED MICROTECHNOLOGY CORPORATION (CALIFORNIA)	Research and development	100.00	100.00	100.00
OMNI	ECP VITA PTE. LTD.	Insurance	100.00	100.00	100.00
WAVETEK	WAVETEK MICROELECTRONICS INVESTMENT (SAMOA) LIMITED (WAVETEK-SAMOA)	Investment holding	100.00	100.00	100.00
WAVETEK-SAMOA	WAVETEK MICROELECTRONICS CORPORATION (USA)	Marketing service	100.00	100.00	100.00
BE	INFOSHINE TECHNOLOGY LIMITED (INFOSHINE)	Investment holding	100.00	100.00	100.00
INFOSHINE	OAKWOOD ASSOCIATES LIMITED (OAKWOOD)	Investment holding	100.00	100.00	100.00
OAKWOOD	HEJIAN TECHNOLOGY (SUZHOU) CO., LTD. (HEJIAN)	Sales and manufacturing of integrated circuits	99.9985	99.9985	99.9985
HEJIAN	UNITEDDS SEMICONDUCTOR (SHANDONG) CO., LTD.	Integrated circuits design services	100.00	100.00	100.00
UNITED MICROCHIP CORPORATION and HEJIAN	UNITED SEMICONDUCTOR (XIAMEN) CO., LTD. (USCXM)	Sales and manufacturing of integrated circuits	72.73	71.86	69.95

(4)

Other Significant Accounting Policies

The same accounting policies of consolidation have been applied in the Company’s consolidated financial statements as those applied in the Company’s consolidated financial statements for the year ended December 31, 2022. For the summary of significant accounting policies, please refer to Note 4 of the Company’s consolidated financial statements for the year ended December 31, 2022.

SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

The same significant accounting judgments, estimates and assumptions have been applied in the Company’s consolidated financial statements for the three-month period ended March 31, 2023 as those applied in the Company’s consolidated financial statements for the year ended December 31, 2022. For significant accounting judgments, estimates and assumptions, please refer to Note 5 of the Company’s consolidated financial statements for the year ended December 31, 2022.

CONTENTS OF SIGNIFICANT ACCOUNTS

(1)

Cash and Cash Equivalents

	As of
	March 31, 2023	December 31, 2022	March 31, 2022
Cash on hand and petty cash	$6,035	$6,023	$5,747
Checking and savings accounts	38,519,836	42,422,443	44,032,805
Time deposits	127,322,641	125,467,386	119,539,330
Repurchase agreements collateralized by government bonds and corporate notes	5,985,946	5,922,925	8,592,349
Total	$171,834,458	$173,818,777	$172,170,231

(2)

Financial Assets at Fair Value through Profit or Loss

	As of
	March 31, 2023	December 31, 2022	March 31, 2022
Financial assets mandatorily measured at fair value through profit or loss
Common stocks	$10,693,866	$10,275,563	$14,172,917
Preferred stocks	2,746,631	2,939,939	2,956,034
Funds	5,078,142	5,044,702	4,778,955
Convertible bonds	137,208	230,365	424,265
Forward contracts	-	-	235
Others	151,950	-	-
Total	$18,807,797	$18,490,569	$22,332,406

Current	$751,386	$705,918	$775,035
Non-current	18,056,411	17,784,651	21,557,371
Total	$18,807,797	$18,490,569	$22,332,406

(3)

Financial Assets at Fair Value through Other Comprehensive Income

	As of
	March 31, 2023	December 31, 2022	March 31, 2022
Equity instruments
Common stocks	$18,091,095	$15,007,053	$18,006,293
Preferred stocks	172,338	182,547	162,927
Total	$18,263,433	$15,189,600	$18,169,220

Current	$4,394,403	$3,213,057	$6,082,662
Non-current	13,869,030	11,976,543	12,086,558
Total	$18,263,433	$15,189,600	$18,169,220

These investments in equity instruments are held for medium to long-term purposes and therefore are accounted for as fair value through other comprehensive income.

Dividend income recognized in profit or loss from equity instruments designated as fair value through other comprehensive income were both nil for the three-month periods ended March 31, 2023 and 2022.

(4)

Financial assets measured at amortized cost

	As of
	March 31, 2023	December 31, 2022	March 31, 2022
Financial assets measured at amortized cost
Time deposits with original maturities over three months	$246,755	$849,308	$3,015,663
Bonds	20,000	20,000	20,000
Total	$266,755	$869,308	$3,035,663

Current	$259,264	$861,817	$3,026,877
Non-current	7,491	7,491	8,786
Total	$266,755	$869,308	$3,035,663

(5)

Accounts Receivable, Net

	As of
	March 31, 2023	December 31, 2022	March 31, 2022
Accounts receivable	$26,843,820	$36,653,611	$37,279,454
Less: loss allowance	(169,395)	(209,101)	(199,499)
Net	$26,674,425	$36,444,510	$37,079,955

Aging analysis of accounts receivable:

	As of
	March 31, 2023	December 31, 2022	March 31, 2022
Neither past due	$24,836,350	$30,545,437	$35,056,399
Past due:
≤ 30 days	1,288,032	5,303,765	1,602,089
31 to 60 days	87,445	130,408	15,475
61 to 90 days	8,294	3,247	9,659
91 to 120 days	5,084	7,886	431
≥ 121 days	618,615	662,868	595,401
Subtotal	2,007,470	6,108,174	2,223,055
Total	$26,843,820	$36,653,611	$37,279,454

Movement of loss allowance for accounts receivable:

	For the three-month periods ended March 31,
	2023	2022
Beginning balance	$209,101	$194,491
Net recognition (reversal) for the period	(39,706)	5,008
Ending balance	$169,395	$199,499

The collection periods for third party domestic sales and third party overseas sales were month-end 30 - 60 days and net 30 - 60 days, respectively.

An impairment analysis is performed at each reporting date to measure expected credit losses (ECLs) of accounts receivable. For the receivables past due within 60 days, including not past due, the Company estimates an expected credit loss rate to calculate ECLs. For the three-month periods ended March 31, 2023 and 2022, the expected credit loss rates were not greater than 0.2%. The rate is determined based on the Company’s historical credit loss experience and customer’s current financial condition, adjusted for forward-looking factors such as customer’s economic environment. For the receivables past due over 60 days, the Company applies the aforementioned rate and assesses individually whether to recognize additional expected credit losses by considering customer’s operating condition and debt-paying ability.

(6)

Inventories, Net

	As of
	March 31, 2023	December 31, 2022	March 31, 2022
Raw materials	$8,307,539	$6,335,428	$3,740,108
Supplies and spare parts	6,803,508	7,161,216	5,596,430
Work in process	16,282,279	14,897,926	15,506,602
Finished goods	1,285,541	2,675,390	557,561
Total	$32,678,867	$31,069,960	$25,400,701

For the three-month periods ended March 31, 2023 and 2022, the Company recognized NT$33,052 million and NT$34,371 million, respectively, in operating costs, of which NT$426 million was related to write-down of inventories and NT$329 million was related to reversal of write-down of inventories.

None of the aforementioned inventories were pledged.

(7)

Investments Accounted for Under the Equity Method

Details of investments accounted for under the equity method are as follows:


	As of
	March 31, 2023		December 31, 2022		March 31, 2022
Investee companies	Amount	Percentage of ownership or voting rights	Amount	Percentage of ownership or voting rights	Amount	Percentage of ownership or voting rights
Listed companies
FARADAY TECHNOLOGY CORP. (FARADAY) (Note A)	$2,005,744	13.78	$1,874,131	13.78	$1,809,926	13.78
UNIMICRON TECHNOLOGY CORP. (UNIMICRON) (Note B)	14,457,514	13.06	13,460,838	13.27	11,216,837	13.30


	As of
	March 31, 2023		December 31, 2022		March 31, 2022
Investee companies	Amount	Percentage of ownership or voting rights	Amount	Percentage of ownership or voting rights	Amount	Percentage of ownership or voting rights
Unlisted companies
MTIC HOLDINGS PTE. LTD. (Note C)	$-	45.44	$-	45.44	$-	45.44
UNITECH CAPITAL INC.	497,554	42.00	426,070	42.00	760,432	42.00
TRIKNIGHT CAPITAL CORPORATION	2,469,068	40.00	2,117,678	40.00	3,464,245	40.00
HSUN CHIEH CAPITAL CORP.	234,758	40.00	210,690	40.00	225,487	40.00
PURIUMFIL INC.	14,925	40.00	14,840	40.00	10,606	44.45
HSUN CHIEH INVESTMENT CO., LTD.	11,792,719	36.49	9,530,916	36.49	11,813,260	36.49
YANN YUAN INVESTMENT CO., LTD.	8,519,688	26.78	7,299,414	26.78	9,113,378	28.22
UNITED LED CORPORATION HONG KONG LIMITED	95,949	25.14	97,156	25.14	103,800	25.14
VSENSE CO., LTD. (Note C)	-	23.98	-	23.98	-	23.98
TRANSLINK CAPITAL PARTNERS I, L.P. (Note D)	66,005	10.38	54,556	10.38	229,824	10.38
Total	$40,153,924		$35,086,289		$38,747,795

Note A:

Beginning from June 2015, the Company accounts for its investment in FARADAY as an associate given the fact that the Company obtained the ability to exercise significant influence over FARADAY through representation on its Board of Directors.

Note B:

Beginning from June 2020, the Company accounts for its investment in UNIMICRON as an associate given the fact that the Company obtained the ability to exercise significant influence over UNIMICRON through representation on its Board of Directors. On January 6, 2023, UNIMICRON issued new shares to merge with SUBTRON TECHNOLOGY CO., LTD. (SUBTRON) through share conversion. The share conversion ratio was 1 common share of SUBTRON to exchange 0.219 common shares of UNIMICRON. The 23 million shares of SUBTRON held by the Company were exchanged to 5 million common shares newly issued by UNIMICRON.

Note C:

When the Company’s share of losses of an associate equals or exceeds its interest in that associate, the Company discontinues recognizing its share of further losses. Additional losses and liabilities are recognized only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of that associate.

Note D:

The Company follows international accounting practices in equity accounting for limited partnerships and uses the equity method to account for these investees.

The carrying amount of investments accounted for using the equity method for which there are published price quotations amounted to NT$16,463 million, NT$15,335 million and NT$13,027 million, as of March 31, 2023, December 31, 2022 and March 31, 2022, respectively. The fair value of these investments were NT$36,063 million, NT$28,416 million and NT$59,298 million as of March 31, 2023, December 31, 2022 and March 31, 2022, respectively.

Certain investments accounted for under the equity method were reviewed by other independent accountants. Shares of profit or loss of these associates and joint ventures amounted to NT$3,146 million and NT$(1,958) million for the three-month periods ended March 31, 2023 and 2022, respectively. Share of other comprehensive income of these associates and joint ventures amounted to NT$58 million and NT$96 million for the three-month periods ended March 31, 2023 and 2022, respectively. The balances of investments accounted for under the equity method were NT$29,217 million, NT$25,801 million and NT$27,255 million as of March 31, 2023, December 31, 2022 and March 31, 2022, respectively.

Although the Company is the largest shareholder of some associates; after comprehensive assessment, the Company does not own the major voting rights as the remaining voting rights holders are able to align and prevent the Company from ruling the relevant operation. Therefore, the Company does not control but owns significant influence over the aforementioned associates.

None of the aforementioned associates were pledged.

Financial information of associates:

There is no individually significant associate for the Company. When an associate is a foreign operation, and the functional currency of the foreign entity is different from the Company, an exchange difference arising from translation of the foreign entity will be recognized in other comprehensive income (loss). Such exchange differences recognized in other comprehensive income (loss) in the financial statements for the three-month periods ended March 31, 2023 and 2022 were NT$(5) million and NT$38 million, respectively, which were not included in the following table.

The aggregate amount of the Company’s share of all its individually immaterial associates that are accounted for using the equity method were as follows:

	For the three-month periods ended March 31,
	2023	2022
Income (loss) from continuing operations	$3,248,054	$(1,858,432)
Other comprehensive income (loss)	1,357,057	(638,404)
Total comprehensive income (loss)	$4,605,111	$(2,496,836)

One of UMC’s associates, HSUN CHIEH INVESTMENT CO., LTD., held 441 million shares of UMC’s stock as of March 31, 2023, December 31, 2022 and March 31, 2022, respectively. Another associate, YANN YUAN INVESTMENT CO., LTD., held 193 million shares, 193 million shares and 175 million shares of UMC’s stock as of March 31, 2023, December 31, 2022 and March 31, 2022, respectively. The subsidiary of UNIMICRON, one of UMC’s associates, held 0.05 million shares, nil and nil of UMC’s stock as of March 31, 2023, December 31, 2022 and March 31, 2022, respectively.

(8)

Property, Plant and Equipment

For the three-month period ended March 31, 2023:

Assets Used by the Company:

Cost:

	Land	Buildings	Machinery and equipment	Transportation equipment	Furniture and fixtures	Leasehold improvement	Construction in progress and equipment awaiting inspection	Total
As of January 1, 2023	$1,470,216	$37,597,769	$953,819,688	$64,923	$8,061,993	$63,075	$55,363,943	$1,056,441,607
Additions	-	26,100	-	-	-	-	25,150,237	25,176,337
Disposals	-	-	(920,338)	-	(2,196)	-	-	(922,534)
Transfers and reclassifications	-	215,841	16,071,861	5,178	523,914	-	(11,621,801)	5,194,993
Exchange effect	(10,035)	(29,908)	(966,250)	(83)	(2,005)	(484)	(41,413)	(1,050,178)
As of March 31, 2023	$1,460,181	$37,809,802	$968,004,961	$70,018	$8,581,706	$62,591	$68,850,966	$1,084,840,225

Accumulated Depreciation and Impairment:

	Land	Buildings	Machinery and equipment	Transportation equipment	Furniture and fixtures	Leasehold improvement	Construction in progress and equipment awaiting inspection	Total
As of January 1, 2023	$-	$22,731,506	$857,737,785	$51,597	$6,697,517	$59,383	$-	$887,277,788
Depreciation	-	350,300	8,537,488	1,205	126,565	942	-	9,016,500
Disposals	-	-	(915,485)	-	(2,196)	-	-	(917,681)
Exchange effect	-	(15,581)	(913,073)	10	(1,046)	(458)	-	(930,148)
As of March 31, 2023	$-	$23,066,225	$864,446,715	$52,812	$6,820,840	$59,867	$-	$894,446,459
Net carrying amount:
As of March 31, 2023	$1,460,181	$14,743,577	$103,558,246	$17,206	$1,760,866	$2,724	$68,850,966	$190,393,766

Assets Subject to Operating Leases:

Cost:


	Land	Buildings	Machinery and equipment	Furniture and fixtures	Total
As of January 1, 2023	$545,787	$2,443,247	$6,345	$1,334,291	$4,329,670
Transfers and reclassifications	-	-	-	5,698	5,698
Exchange effect	(1,532)	(1,154)	-	431	(2,255)
As of March 31, 2023	$544,255	$2,442,093	$6,345	$1,340,420	$4,333,113

Accumulated Depreciation and Impairment:


	Land	Buildings	Machinery and equipment	Furniture and fixtures	Total
As of January 1, 2023	$-	$1,202,812	$6,345	$1,302,266	$2,511,423
Depreciation	-	23,703	-	7,991	31,694
Exchange effect	-	(1,048)	-	310	(738)
As of March 31, 2023	$-	$1,225,467	$6,345	$1,310,567	$2,542,379
Net carrying amount:
As of March 31, 2023	$544,255	$1,216,626	$-	$29,853	$1,790,734

For the three-month period ended March 31, 2022:

Assets Used by the Company:

Cost:

	Land	Buildings	Machinery and equipment	Transportation equipment	Furniture and fixtures	Leasehold improvement	Construction in progress and equipment awaiting inspection	Total
As of January 1, 2022	$1,491,343	$36,827,480	$897,806,699	$55,959	$7,305,174	$61,282	$22,856,033	$966,403,970
Additions	-	-	-	-	-	-	9,405,926	9,405,926
Disposals	-	-	(663,538)	-	(1,999)	-	(8,918)	(674,455)
Transfers and reclassifications	-	158,298	14,675,789	-	168,823	-	(14,593,742)	409,168
Exchange effect	(13,733)	328,608	8,292,533	568	46,107	1,120	90,698	8,745,901
As of March 31, 2022	$1,477,610	$37,314,386	$920,111,483	$56,527	$7,518,105	$62,402	$17,749,997	$984,290,510

Accumulated Depreciation and Impairment:

	Land	Buildings	Machinery and equipment	Transportation equipment	Furniture and fixtures	Leasehold improvement	Construction in progress and equipment awaiting inspection	Total
As of January 1, 2022	$-	$21,184,969	$810,904,881	$47,108	$6,222,383	$55,125	$-	$838,414,466
Depreciation	-	362,943	9,968,344	1,071	115,590	431	-	10,448,379
Disposals	-	-	(657,923)	-	(1,999)	-	-	(659,922)
Transfers and reclassifications	-	160	-	-	-	-	-	160
Exchange effect	-	116,883	6,894,901	438	34,885	1,166	-	7,048,273
As of March 31, 2022	$-	$21,664,955	$827,110,203	$48,617	$6,370,859	$56,722	$-	$855,251,356
Net carrying amount:
As of March 31, 2022	$1,477,610	$15,649,431	$93,001,280	$7,910	$1,147,246	$5,680	$17,749,997	$129,039,154

Assets Subject to Operating Leases:

Cost:


	Land	Buildings	Furniture and fixtures	Total
As of January 1, 2022	$549,010	$2,422,389	$1,312,703	$4,284,102
Transfers and reclassifications	-	(1,222)	107	(1,115)
Exchange effect	(2,095)	10,991	7,442	16,338
As of March 31, 2022	$546,915	$2,432,158	$1,320,252	$4,299,325

Accumulated Depreciation and Impairment:


	Land	Buildings	Furniture and fixtures	Total
As of January 1, 2022	$-	$1,095,113	$1,236,790	$2,331,903
Depreciation	-	23,539	16,360	39,899
Transfers and reclassifications	-	(160)	-	(160)
Exchange effect	-	4,822	5,937	10,759
As of March 31, 2022	$-	$1,123,314	$1,259,087	$2,382,401
Net carrying amount:
As of March 31, 2022	$546,915	$1,308,844	$61,165	$1,916,924

Details of interest expense capitalized were as follows:

	For the three-month periods ended March 31,
	2023	2022
Interest expense capitalized	$1,279	$76
Interest rates applied	1.48% - 1.57%	1.54% - 1.61%

Please refer to Note 8 for property, plant and equipment pledged as collateral.

(9)

Leases

The Company leases various properties, such as land (including land use right), buildings, machinery and equipment, transportation equipment and other equipment with lease terms of 1 to 30 years, except for the land use rights with lease term of 50 years. Most lease contracts of land located in R.O.C state that lease payments will be adjusted based on the announced land value. The Company does not have purchase options of leased land at the end of the lease terms.

The Company as a lessee

(a)

Right-of-use Assets

	As of
	March 31, 2023	December 31, 2022	March 31, 2022
Land (including land use right)	$5,620,033	$5,714,166	$4,945,541
Buildings	201,561	124,420	264,133
Machinery and equipment	1,693,655	1,748,244	1,925,399
Transportation equipment	22,405	21,485	15,934
Other equipment	2,809	3,676	5,902
Net	$7,540,463	$7,611,991	$7,156,909

	For the three-month periods ended March 31,
	2023	2022
Depreciation
Land (including land use right)	$93,597	$81,992
Buildings	24,714	30,251
Machinery and equipment	51,361	52,005
Transportation equipment	3,462	2,764
Other equipment	1,020	1,189
Total	$174,154	$168,201

For the three-month periods ended March 31, 2023 and 2022, the Company’s addition to right-of-use assets amounted to NT$144 million and NT$54 million, respectively.

ii.

Please refer to Note 8 for right-of-use assets pledged as collateral.

(b)

Lease Liabilities

	As of
	March 31, 2023	December 31, 2022	March 31, 2022
Current	$541,733	$537,314	$567,191
Non-current	5,186,609	5,199,781	4,482,036
Total	$5,728,342	$5,737,095	$5,049,227

Please refer to Note 6(24) for the interest expenses on the lease liabilities.

The Company as a lessor

The Company entered into leases on certain property, plant and equipment which are classified as operating leases as they did not transfer substantially all of the risks and rewards incidental to ownership of the underlying assets. The main contracts are to lease the dormitory to the employees with cancellation clauses. Please refer to Note 6(8) for relevant disclosure of property, plant and equipment for operating leases.

(10)

Intangible Assets

For the three-month period ended March 31, 2023:

Cost:

	Goodwill	Software	Patents and technology license fees	Others	Total
As of January 1, 2023	$15,012	$5,669,787	$3,422,432	$2,953,984	$12,061,215
Additions	-	245,576	45,891	32,677	324,144
Write-off	-	(528,566)	(122,508)	(62,141)	(713,215)
Reclassifications	-	(243)	-	-	(243)
Exchange effect	-	(21,569)	43,388	(2,499)	19,320
As of March 31, 2023	$15,012	$5,364,985	$3,389,203	$2,922,021	$11,691,221

Accumulated Amortization and Impairment:

	Goodwill	Software	Patents and technology license fees	Others	Total
As of January 1, 2023	$7,398	$2,689,397	$2,597,513	$2,491,707	$7,786,015
Amortization	-	436,505	96,926	105,152	638,583
Write-off	-	(528,566)	(122,508)	(62,141)	(713,215)
Exchange effect	-	(6,727)	17,898	(2,310)	8,861
As of March 31, 2023	$7,398	$2,590,609	$2,589,829	$2,532,408	$7,720,244
Net carrying amount:
As of March 31, 2023	$7,614	$2,774,376	$799,374	$389,613	$3,970,977

For the three-month period ended March 31, 2022:

Cost:

	Goodwill	Software	Patents and technology license fees	Others	Total
As of January 1, 2022	$15,012	$4,845,037	$4,491,164	$3,348,071	$12,699,284
Additions	-	433,897	-	20,741	454,638
Write-off	-	(150,912)	-	(441,488)	(592,400)
Reclassifications	-	438	-	-	438
Exchange effect	-	(18,062)	422,602	(3,420)	401,120
As of March 31, 2022	$15,012	$5,110,398	$4,913,766	$2,923,904	$12,963,080

Accumulated Amortization and Impairment:

	Goodwill	Software	Patents and technology license fees	Others	Total
As of January 1, 2022	$7,398	$2,913,824	$3,324,667	$2,808,462	$9,054,351
Amortization	-	418,419	134,636	148,698	701,753
Write-off	-	(150,912)	-	(441,488)	(592,400)
Exchange effect	-	(15,578)	214,973	(2,861)	196,534
As of March 31, 2022	$7,398	$3,165,753	$3,674,276	$2,512,811	$9,360,238
Net carrying amount:
As of March 31, 2022	$7,614	$1,944,645	$1,239,490	$411,093	$3,602,842

The amortization amounts of intangible assets were as follows:

	For the three-month periods ended March 31,
	2023	2022
Operating costs	$335,924	$352,743
Operating expenses	$302,659	$349,010

(11)

Short-Term Loans

As of

March 31,

2023

December 31,

2022

March 31,

2022

Unsecured bank loans

$100,000

$1,339,861

	For the three-month periods ended March 31,
	2023	2022
Interest rates applied	2.03% - 2.45%	0.33% - 3.60%

(12)

Financial Liabilities at Fair Value through Profit or Loss, Current

	As of
	March 31, 2023	December 31, 2022	March 31, 2022
Embedded derivatives in exchangeable bonds	$782,936	$438,397	$1,155,073
Forward contracts	-	-	3,017
Total	$782,936	$438,397	$1,158,090

(13)

Bonds Payable

	As of
	March 31, 2023	December 31, 2022	March 31, 2022
Unsecured domestic bonds payable	$23,100,000	$23,100,000	$25,100,000
Unsecured exchangeable bonds payable	5,757,373	5,757,373	9,802,949
Less: Discounts on bonds payable	(626,767)	(672,686)	(1,359,782)
Total	28,230,606	28,184,687	33,543,167
Less: Current or exchangeable portion due within one year	(7,244,712)	(5,101,591)	(10,464,314)
Net	$20,985,894	$23,083,096	$23,078,853

UMC issued domestic unsecured corporate bonds. The terms and conditions of the bonds are as follows:


Term	Issuance date	Issued amount	Coupon rate	Repayment
Ten-year	In mid-June 2014	NT$3,000 million	1.95%	Interest will be paid annually and the principal will be repayable in June 2024 upon maturity.
Five-year	In late March 2017	NT$6,200 million	1.15%	Interest was paid annually and the principal was fully repaid in March 2022.
Seven-year	In late March 2017	NT$2,100 million	1.43%	Interest will be paid annually and the principal will be repayable in March 2024 upon maturity.
Five-year	In early October 2017	NT$2,000 million	0.94%	Interest was paid annually and the principal was fully repaid in October 2022.
Seven-year	In early October 2017	NT$3,400 million	1.13%	Interest will be paid annually and the principal will be repayable in October 2024 upon maturity.
Five-year	In late April 2021	NT$5,500 million	0.57%	Interest will be paid annually and the principal will be repayable in April 2026 upon maturity.
Seven-year	In late April 2021	NT$2,000 million	0.63%	Interest will be paid annually and the principal will be repayable in April 2028 upon maturity.
Ten-year (green bond)	In late April 2021	NT$2,100 million	0.68%	Interest will be paid annually and the principal will be repayable in April 2031 upon maturity.
Five-year	In mid-December 2021	NT$5,000 million	0.63%	Interest will be paid annually and the principal will be repayable in December 2026 upon maturity.

On July 7, 2021, UMC issued SGX-ST listed currency linked zero coupon exchangeable bonds. In accordance with IFRS 9, the value of the exchange right, call option and put option (together referred to as Option) of the exchangeable bonds was separated from the host and accounted for as “financial liabilities at fair value through profit or loss, current”. The effective rate of the host bond was 3.49%. The terms and conditions of the bonds are as follows:

Issue Amount: US$400 million

ii.

Period: July 7, 2021 - July 7, 2026 (Maturity Date)

iii.

Redemption:

(i)

UMC may, at its option, redeem in whole or in part at the principal amount of the bonds with an interest calculated at the rate of -0.625% per annum (the Early Redemption Amount) at any time after the third anniversary from the issue date and prior to the Maturity Date, if the closing price of the common shares of NOVATEK MICROELECTRONICS CORPORATION (NOVATEK) on the TWSE, converted into U.S. dollars at the prevailing exchange rate, for 20 out of 30 consecutive trading days prior to the publication of the redemption notice is at least 130% of the quotient of the Early Redemption Amount multiplied by the then exchange price (converted into U.S. dollars at the Fixed Exchange Rate), divided by the principal amount of the bonds. The Early Redemption Amount will be converted into NTD based on the Fixed Exchange Rate (NTD 27.902=USD 1.00), and this fixed NTD amount will then be converted using the prevailing exchange at the time of redemption for payment in USD.

(ii)

UMC may redeem the outstanding bonds in whole, but not in part, at the Early Redemption Amount, in the event that over 90% of the bonds have been previously redeemed, repurchased and cancelled or exchanged.

(iii)

In the event of any change in ROC taxation resulting in increase of tax obligation or the necessity to pay additional interest expense or increase of additional costs to UMC, UMC may redeem the outstanding bonds in whole, but not in part, at the Early Redemption Amount. Bondholders may elect not to have their bonds redeemed but with no entitlement to any additional amounts or reimbursement of additional taxes.

(iv)

All or any portion of the bonds will be redeemable at put price at the option of bondholders on July 7, 2024 at 98.14% of the principal amount.

(v)

In the event that the common shares of NOVATEK cease to be listed or are suspended from trading for a period equal to or exceeding 30 consecutive trading days on the TWSE, each bondholder shall have the right to require UMC to redeem the bonds, in whole but not in part, at the Early Redemption Amount.

(vi)

Upon the occurrence of a change of control (as defined in the indenture) of UMC, each bondholder shall have the right to require UMC to redeem the bonds, in whole but not in part, at the Early Redemption Amount.

iv.

Terms of Exchange:

(i)

Underlying Securities: Common Shares of NOVATEK

(ii)

Exchange Period: The bonds are exchangeable at any time on or after October 8, 2021 and prior to June 27, 2026, into NOVATEK common shares. If for any reason UMC does not have sufficient NOVATEK common shares to deliver upon the exchange of any bond, then, UMC will pay to the exchanging bondholder an amount in U.S. dollars equal to the product of the volume-weighted average closing price per NOVATEK common share on the TWSE for five consecutive trading days starting from and including the applicable exercise date (as defined in the indenture) (or such fewer number of trading days as are available within ten days starting from and including the applicable exercise date) each converted into USD at the prevailing rate on the day preceding the applicable trading day and the number of NOVATEK common shares that UMC is unable to deliver. Provided, however, that if the exercise date falls within 5 business days from the beginning of, and during, any closed period, the right of the converting holder of the bonds to vote with respect to the shares it receives will be subject to certain restrictions.

(iii)

Exchange Price and Adjustment: The exchange price was originally NT$731.25 per NOVATEK common share. The exchange price will be subject to adjustments upon the occurrence of certain events set out in the indenture. The exchange price was NT$583.3 per NOVATEK common share on March 31, 2023.

Redemption on the Maturity Date:

The bonds will be redeemed with 96.92% principal amount on the maturity date unless:

(i)

UMC shall have redeemed the bonds at the option of UMC, or the bonds shall have been redeemed at option of the bondholder;

(ii)

The bondholders shall have exercised the exchange right before maturity; or

(iii)

The bonds shall have been redeemed or repurchased by UMC and cancelled.

For the three-month periods ended March 31, 2023 and 2022, the Company has repurchased and cancelled the outstanding principal amount of exchangeable bonds totaling nil and US$37.5 million with derecognition of the related derivative financial liabilities, respectively. The difference between the repurchased amount and the carrying amount recognized in non-operating other gains and losses was immaterial.

(14)

Long-Term Loans

Details of long-term loans as of March 31, 2023, December 31, 2022 and March 31, 2022 were as follows:


	As of
Lenders	March 31, 2023	December 31, 2022	March 31, 2022	Redemption
Secured Long-Term Loan from Mega International Commercial Bank (1)	$8,515	$9,732	$13,381	Repayable quarterly from October 24, 2019 to October 24, 2024 with monthly interest payments. Interest-only payment for the first year.
Secured Long-Term Loan from Mega International Commercial Bank (2)	16,941	18,000	18,000	Repayable quarterly from February 23, 2022 to February 22, 2027 with monthly interest payments. Interest-only payment for the first year.
Secured Long-Term Loan from Mega International Commercial Bank (3)	56,941	60,500	-	Repayable quarterly from December 22, 2022 to February 23, 2027 with monthly interest payments. Interest-only payment for the first year.
Secured Long-Term Loan from Taiwan Cooperative Bank (1)	32,703	35,676	44,595	Repayable quarterly from October 19, 2015 to October 19, 2025 with monthly interest payments. Interest-only payment for the first year.
Secured Long-Term Loan from Taiwan Cooperative Bank (2)	1,458	4,375	10,208	Repayable monthly from May 31, 2019 to May 31, 2023 with monthly interest payments.
Secured Long-Term Loan from Taiwan Cooperative Bank (3)	29,000	32,000	41,000	Repayable monthly from August 13, 2020 to August 13, 2025 with monthly interest payments.
Secured Long-Term Loan from Taiwan Cooperative Bank (4)	15,000	16,552	21,207	Repayable monthly from October 29, 2020 to August 29, 2025 with monthly interest payments.
Secured Long-Term Loan from Taiwan Cooperative Bank (5)	77,854	84,166	101,000	Repayable monthly from April 15, 2021 to April 15, 2026 with monthly interest payments. Interest-only payment for the first year.
Secured Syndicated Loans from China Development Bank and 6 others (1)	1,924,649	1,915,577	18,763,162	Repayable semi-annually from October 20, 2016 to October 19, 2024 with semi-annually interest payments. Interest-only payment for the first and the second year.

Secured Syndicated Loans from China Development Bank and 6 others (2)	$12,076,126	$12,415,200	$12,686,800	Repayable semi-annually from March 19, 2021 to March 18, 2031 with semi-annually interest payments. Interest-only payment for the first and the second year.
Secured Long-Term Loan from First Commercial Bank	44,188	47,000	47,000	Repayable monthly from December 2, 2021 to December 2, 2026 with monthly interest payments. Interest-only payment for the first year.
Secured Long-Term Loan from KGI Bank	21,000	21,000	21,000	Repayable semi-annually from December 27, 2021 to December 25, 2026 with monthly interest payments. Interest-only payment for the first and the second year.
Secured Long-Term Loan from Shanghai Commercial Bank(1)	20,813	22,200	22,200	Repayable monthly from January 19, 2022 to December 15, 2026 with monthly interest payments. Interest-only payment for the first year.
Secured Long-Term Loan from Shanghai Commercial Bank(2)	4,980	-	-	Repayable monthly from March 23, 2023 to March 15, 2028 with monthly interest payments. Interest-only payment for the first year.
Unsecured Long-Term Loan from Xiamen Bank	-	-	452,194	Repayable semi-annually from November 24, 2020 to May 24, 2022 of RMB 0.1 million with monthly interest payments and the remaining principal will be repaid once at maturity. Interest-only payment for the first semi-annually year.
Unsecured Long-Term Loan from Bank of China	1,783,273	1,797,364	1,211,829	Repayable semi-annually from June 24, 2023 to June 24, 2026 with quarterly interest payments.
Unsecured Long-Term Loan from Bank of Taiwan (1)	-	-	458,333	Repayable quarterly from March 10, 2022 to December 10, 2024 with monthly interest payments.
Unsecured Long-Term Loan from Bank of Taiwan (2)	1,833,333	2,000,000	450,000	Repayable quarterly from March 24, 2023 to March 24, 2025 with monthly interest payments.
Unsecured Revolving Loan from Mega International Commercial Bank (Note A)	-	-	500,000	Repayable semi-annually from October 16, 2020 to April 16, 2022 with monthly interest payments.

Unsecured Revolving Loan from Taipei Fubon Bank (Note B)	$-	$-	$200,000	Repayable annually from August 9, 2020 to August 9, 2023 with monthly interest payments.
Unsecured Revolving Loan from Chang Hwa Commercial Bank (Note C)	-	-	400,000	Repayable quarterly from January 27, 2021 to October 27, 2022 with monthly interest payments.
Unsecured Revolving Loan from KGI Bank (Note D)	-	-	500,000	Repayable annually from August 10, 2023 to August 10, 2026 with monthly interest payments.
Unsecured Revolving Loan from First Commercial Bank (1) (Note E)	300,000	300,000	300,000	Settlement due on February 25, 2026 with monthly interest payments.
Unsecured Revolving Loan from First Commercial Bank (2) (Note E)	300,000	300,000	300,000	Settlement due on March 15, 2026 with monthly interest payments.
Unsecured Revolving Loan from First Commercial Bank (3) (Note E)	200,000	200,000	200,000	Settlement due on June 15, 2026 with monthly interest payments.
Unsecured Revolving Loan from Yuanta Commercial Bank (Note F)	-	-	1,000,000	Repayable annually from March 2, 2023 to March 2, 2026 with monthly interest payments.
Subtotal	18,746,774	19,279,342	37,761,909
Less: Current portion	(2,429,402)	(2,485,053)	(10,773,777)
Total	$16,317,372	$16,794,289	$26,988,132

	For the three-month periods ended March 31,
	2023	2022
Interest rates applied	1.61% - 6.03%	0.86% - 4.66%

Note A:

UMC entered into a 5-year loan agreement with Mega International Commercial Bank, effective from October 17, 2016. The agreement offered UMC a revolving line of credit of NT$3 billion. This line of credit will be reduced starting from the end of the two years and six months after the first use and every six months thereafter, with a total of six adjustments. As of March 31, 2022, the line of credit was fully used. The expiration date of the agreement was April 16, 2022.

Note B:

UMC entered into a 5-year loan agreement with Taipei Fubon Bank, effective from February 9, 2018. The agreement offered UMC a revolving line of credit of NT$2 billion. This line of credit will be reduced starting from the end of the two years after the first use and every twelve months thereafter, with a total of four adjustments. The expiration date of the agreement is August 9, 2023. As of March 31, 2023, December 31, 2022 and March 31, 2022, the unused line of credit were NT$0.5 billion, NT$0.5 billion and NT$0.8 billion, respectively.

Note C:

UMC entered into a 5-year loan agreement with Chang Hwa Commercial Bank, effective from November 2, 2016. The agreement offered UMC a revolving line of credit of NT$3 billion. This line of credit will be reduced starting from the end of the third year after the first use and every three months thereafter, with a total of nine adjustments. As of March 31, 2022, the unused line of credit was NT$0.6 billion. The expiration date of the agreement was October 27, 2022.

Note D:

UMC entered into a 5-year loan agreement with KGI Commercial Bank, effective from May 10, 2021. The agreement offered UMC a revolving line of credit of NT$3 billion. This line of credit will be reduced starting from the end of the second year after the first use and every twelve months thereafter, with a total of four adjustments. The expiration date of the agreement is August 10, 2026. As of March 31, 2023, December 31, 2022 and March 31, 2022, the unused line of credit were NT$3 billion, NT$3 billion and NT$2.5 billion, respectively.

Note E:

First Commercial Bank approved the 1-year credit loan on April 14, 2022, which offered UMC a revolving line of credit of NT$2 billion starting from the approval date to April 13, 2023. As of March 31, 2023 and December 31, 2022, the unused line of credit were both NT$1.2 billion.

Note F:

UMC entered into a 5-year loan agreement with Yuanta Commercial Bank, effective from March 3, 2021. The agreement offered UMC a revolving line of credit of NT$4 billion. This line of credit will be reduced starting from the end of the second year after the contract date and every twelve months thereafter, with a total of four adjustments. The expiration date of the agreement is March 2, 2026. As of March 31, 2023, December 31, 2022 and March 31, 2022, the unused line of credit were NT$3 billion, NT$4 billion and NT$3 billion, respectively.

Please refer to Note 8 for property, plant and equipment and right-of-use assets pledged as collateral for long-term loans.

(15)

Post-Employment Benefits

Defined contribution plan

The employee pension plan under the Labor Pension Act of the R.O.C. is a defined contribution plan. Pursuant to the plan, UMC and its domestic subsidiaries make monthly contributions of 6% based on each individual employee’s salary or wage to employees’ pension accounts. Pension benefits for employees of the Singapore branch and subsidiaries overseas are provided in accordance with the local regulations. Total pension expenses of NT$471 million and NT$456 million were contributed by the Company for the three-month periods ended March 31, 2023 and 2022, respectively.

Defined benefit plan

The employee pension plan mandated by the Labor Standards Act of the R.O.C. is a defined benefit plan. The pension benefits are disbursed based on the units of service years and average monthly salary prior to retirement according to the Labor Standards Act. Two units per year are awarded for the first 15 years of services while one unit per year is awarded after the completion of the 15th year and the total units will not exceed 45 units. The Company contributes an amount equivalent to 2% of the employees’ total salaries and wages on a monthly basis to the pension fund deposited with the Bank of Taiwan under the name of a pension fund supervisory committee. The pension fund is managed by the government’s designated authorities and therefore is not included in the Company’s consolidated financial statements. Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year. For the three-month periods ended March 31, 2023 and 2022, total pension expenses of NT$11 million and NT$8 million, respectively, were recognized by the Company.

(16)

Deferred Government Grants

	As of
	March 31, 2023	December 31, 2022	March 31, 2022
Beginning balance	$4,677,444	$8,543,798	$8,543,798
Arising during the period	7,550	174,352	691
Recorded in profit or loss:
Other operating income	(931,702)	(4,164,189)	(1,053,908)
Exchange effect	17,154	123,483	284,672
Ending balance	$3,770,446	$4,677,444	$7,775,253

Current (classified under other current liabilities)	$2,045,295	$2,681,842	$4,104,185
Non-current (classified under other noncurrent liabilities-others)	1,725,151	1,995,602	3,671,068
Total	$3,770,446	$4,677,444	$7,775,253

The significant government grants related to equipment acquisitions received by the Company are amortized as income over the useful lives of related equipment and recorded in the net other operating income and expenses.

(17)

Refund Liabilities (classified under other current liabilities)

As of

March 31,

2023

December 31,

2022

March 31,

2022

Refund liabilities

$1,091,508

$1,139,227

$678,733

(18)

Decommissioning liabilities (classified under other noncurrent liabilities-others)

As of

March 31,

2023

December 31,

2022

March 31,

2022

Decommissioning liabilities

$392,975

$366,863

Under certain applicable agreement, the Company is obligated to dismantling and removing the items of property, plant and equipment and restoring the site on which they are located. Accordingly, the Company recognized the liability pursuant to the present value of the estimated decommissioning and restoration cost during the three-month periods ended March 31, 2023 and 2022.

(19)

Equity

Capital stock:

UMC had 26,000 million common shares authorized to be issued as of March 31, 2023, December 31, 2022 and March 31, 2022, of which 12,505 million shares, 12,505 million shares, and 12,482 million shares were issued as of March 31, 2023, December 31, 2022 and March 31, 2022, respectively, each at a par value of NT$10.

ii.

UMC had 134 million, 135 million and 122 million ADSs, which were traded on the NYSE as of March 31, 2023, December 31, 2022 and March 31, 2022, respectively. The total number of common shares of UMC represented by all issued ADSs were 672 million shares, 674 million shares and 612 million shares as of March 31, 2023, December 31, 2022 and March 31, 2022, respectively. One ADS represents five common shares.

iii.

On December 5, 2022, UMC issued restricted stocks for its employees in a total of 23 million shares with a par value of NT$10 each. The aforementioned issuance of new shares was approved by the competent authority and the registration was completed. Please refer to Note 6(20) for the information of restricted stocks.

iv.

In March 2022 and October 2022, UMC has recalled and cancelled 1 million shares and 0.4 million shares, respectively of unvested restricted stocks issued for employees according to the issuance plan. The aforementioned reduction of capital was approved by the competent authority and the registration was completed.

Retained earnings and dividend policies:

According to UMC’s Articles of Incorporation, current year’s earnings, if any, shall be distributed in the following order:

Payment of taxes.

ii.

Making up loss for preceding years.

iii.

Setting aside 10% for legal reserve, except for when accumulated legal reserve has reached UMC’s paid-in capital.

iv.

Appropriating or reversing special reserve by government officials or other regulations.

The remaining, if applicable, may be distributed preferentially as preferred shares dividends for the current year, and if there is still a remaining balance, in addition to the previous year’s unappropriated earnings, UMC shall distribute it according to the distribution plan proposed by the Board of Directors according to the dividend policy and submitted to the shareholders’ meeting for approval.

Because UMC conducts business in a capital intensive industry and continues to operate in its growth phase, the dividend policy of UMC shall be determined pursuant to factors such as the investment environment, its funding requirements, domestic and overseas competitive landscape and its capital expenditure forecast, as well as shareholders’ interest, balancing dividends and UMC’s long-term financial planning. The Board of Directors shall propose the distribution plan and submit it to the shareholders’ meeting every year. The distribution of shareholders’ dividend shall be allocated as cash dividend in the range of 20% to 100%, and stock dividend in the range of 0% to 80%.

According to the regulations of Taiwan FSC, UMC is required to appropriate a special reserve in the amount equal to the sum of debit elements under equity, such as unrealized loss on financial instruments and debit balance of exchange differences on translation of foreign operations, at every year-end. Such special reserve is prohibited from distribution. However, if any of the debit elements is reversed, the special reserve in the amount equal to the reversal may be released for earnings distribution or offsetting accumulated deficits.

The appropriation of earnings for 2021 was approved by the shareholders’ meeting held on May 27, 2022, while the appropriation of earnings for 2022 was proposed by the Board of Directors’ meeting held on February 22, 2023. The details of appropriation were as follows:

	Appropriation of earnings (in thousand NT dollars)		Cash dividend per share (NT dollars)
	2022	2021	2022	2021
Legal reserve	$8,905,139	$5,832,570
Special reserve	(2,180,156)	(3,250,434)
Cash dividends	45,017,096	-	$3.60	$-

In addition, the shareholders’ meeting held on May 27, 2022 approved to distribute cash from additional paid-in capital of NT$37,446 million, at NT$3 per share.

The aforementioned 2021 appropriation approved by shareholders’ meeting was consistent with the resolutions of the Board of Directors’ meeting held on February 24, 2022.

The appropriation of 2022 unappropriated retained earnings has not yet been approved by the shareholders’ meeting as of the reporting date. Information relevant to the Board of Directors’ meeting resolutions and shareholders’ meeting approval can be obtained from the “Market Observation Post System” on the website of the TWSE.

Please refer to Note 6(22) for information on the employees and directors’ compensation.

Non-controlling interests:

	For the three-month periods ended March 31,
	2023	2022
Adjusted balance as of January 1	$343,679	$157,092
Attributable to non-controlling interests:
Net income	201,545	258,088
Other comprehensive income (loss)	(3)	32
Share-based payment transactions	2,334	-
Changes in subsidiaries’ ownership	(17)	(1,338)
Non-controlling interests	100	4,842
Others	(203,211)	(124,447)
Ending balance	$344,427	$294,269

(20)

Share-Based Payment

Restricted stock plan for employees

On May 27, 2022, the shareholders approved a compensation plan in their meeting to issue restricted stocks to qualified employees of the Company without consideration. The maximum shares to be issued are 50 million common shares. UMC is authorized to issue restricted stocks in one tranche or in installments, under the custody of trust institution, within two years from the date of receiving the effective declaration from the competent authority.

The issuance plan was authorized for effective registration by the Securities and Futures Bureau of the FSC and accordingly, 23 million shares of restricted stock for employees were issued without consideration on December 5, 2022. The life of the plan is four years. Beginning from the end of two years since the date of grant, those employees who fulfill both service period and performance conditions set by UMC are gradually eligible to the vested restricted stocks at certain percentage and time frame. For those employees who fail to fulfill the vesting conditions, UMC will recall and cancel their stocks without consideration. During the vesting period, the restricted stock holders are entitled the same rights as those of common stock holders including the right to receive dividends, but are restricted to sell, pledge, set guarantee, transfer, grant, or dispose the restricted stocks in any other ways. Related information can be obtained from the “Market Observation Post System” on the website of the TWSE.

On June 10, 2020, the shareholders approved a compensation plan in their meeting to issue restricted stocks to qualified employees of UMC without consideration. The maximum shares to be issued are 233 million common shares. UMC is authorized to issue restricted stocks in one tranche or in installments, under the custody of trust institution, within one year from the date of receiving the effective declaration from the competent authority.

The issuance plan was authorized for effective registration by the Securities and Futures Bureau of the FSC and accordingly, 1 million shares and 200 million shares of restricted stock for employees were issued without consideration on June 9, 2021 and September 1, 2020, respectively. The life of the plan is four years. Beginning from the end of two years since the date of grant, those employees who fulfill both service period and performance conditions set by UMC are gradually eligible to the vested restricted stocks at certain percentage and time frame. For those employees who fail to fulfill the vesting conditions, UMC will recall and cancel their stocks without consideration. During the vesting period, the restricted stock holders are entitled the same rights as those of common stock holders including the right to receive dividends, but are restricted to sell, pledge, set guarantee, transfer, grant, or dispose the restricted stocks in any other ways. Related information can be obtained from the “Market Observation Post System” on the website of the TWSE.

The aforementioned compensation costs for the equity-settled share-based payment issued in 2022 and 2020 were measured at fair value based on the closing quoted market price of the shares on the grant date, NT$44.4, NT$53.0 and NT$21.8 per share, respectively. The unvested restricted stocks issued on the grant date for employees are recognized in unearned employee compensation as a transitional contra equity account and such account shall be amortized as compensation expense over the vesting period. For the three-month periods ended March 31, 2023 and 2022, the compensation costs of NT$289 million and NT$377 million, respectively, were recognized in expenses by the Company.

Stock appreciation right plan for employees

In June 2021 and September 2020, the Company executed a compensation plan to grant 1 million units and 26 million units of cash-settled stock appreciation right to qualified employees of the Company without consideration, respectively. One unit of stock appreciation right to employees represents a right to the intrinsic value of one common share of UMC. The life of the plan is four years. Beginning from the end of two years since the date of grant, those employees who fulfill both service period and performance conditions set by the Company are gradually eligible to the vested stock appreciation right at certain percentage and time frame. For those employees who fail to fulfill the vesting conditions, the Company will withdraw their rights without consideration. During the vesting period, the holders of the stock appreciation right are not entitled the same rights as those of common stock holders of UMC.

The compensation cost for the cash-settled share-based payment was measured at fair value initially by using Black-Scholes Option Pricing Model and will be remeasured at the end of each reporting period until settlement. As of March 31, 2023, the assumptions used are as follows:

	Granted in June 2021	Granted in September 2020
Share price of measurement date (NT$/ per share)	$52.90	$52.90
Expected volatility	26.09% - 40.21%	28.22% - 35.82%
Expected life	0.19 - 2.19 years	0.42 - 1.42 years
Expected dividend yield	5.50%	5.50%
Risk-free interest rate	1.05%	1.05%

For the three-month periods ended March 31, 2023 and 2022, the compensation costs of NT$24 million and NT$55 million, respectively, were recognized in expenses by the Company. The liabilities for stock appreciation right recognized which were classified under other payables and other noncurrent liabilities-others amounted to NT$364 million, NT$340 million and NT$420 million as of March 31, 2023, December 31, 2022 and March 31, 2022, respectively. The intrinsic value for the liabilities of vested rights was nil.

(21)

Operating Revenues

Disaggregation of revenue

By Product

	For the three-month periods ended March 31,
	2023	2022
Wafer	$51,789,675	$60,956,128
Others	2,419,772	2,466,692
Total	$54,209,447	$63,422,820

ii.

By geography

	For the three-month periods ended March 31,
	2023	2022
Taiwan	$13,437,402	$24,889,694
Singapore	3,430,892	8,299,252
China (includes Hong Kong)	9,491,733	9,622,607
Japan	4,690,401	3,722,838
Korea	6,767,158	4,526,860
USA	8,430,260	7,337,991
Europe	2,147,817	1,884,878
Others	5,813,784	3,138,700
Total	$54,209,447	$63,422,820

The geographic breakdown of the Company’s operating revenues was based on the location of the Company’s customers.

iii.

By the timing of revenue recognition

	For the three-month periods ended March 31,
	2023	2022
At a point in time	$53,783,241	$62,811,763
Over time	426,206	611,057
Total	$54,209,447	$63,422,820

Contract balances

Contract assets, current

	As of
	March 31, 2023	December 31, 2022	March 31, 2022	December 31, 2021
Sales of goods and services	$725,978	$766,691	$708,712	$677,326
Less: Loss allowance	(390,522)	(393,373)	(370,119)	(357,705)
Net	$335,456	$373,318	$338,593	$319,621

The loss allowance was assessed by the Company primarily at an amount equal to lifetime expected credit losses. The loss allowance was mainly resulted from the suspension of the joint technology development agreement as disclosed in Note 9(7).

ii.

Contract liabilities

	As of
	March 31, 2023	December 31, 2022	March 31, 2022	December 31, 2021
Sales of goods and services	$3,696,134	$3,985,003	$4,991,065	$4,083,140

Current	$3,269,274	$3,546,815	$4,396,351	$3,441,754
Non-current	426,860	438,188	594,714	641,386
Total	$3,696,134	$3,985,003	$4,991,065	$4,083,140

The movement of contract liabilities is mainly caused by the timing difference of the satisfaction of a performance of obligation and the consideration received from customers.

The Company recognized NT$1,692 million and NT$1,990 million, respectively, in revenues from the contract liabilities balance at the beginning of the period as performance obligations were satisfied for the three-month periods ended March 31, 2023 and 2022.

The Company’s transaction price allocated to unsatisfied performance obligations amounted to NT$221 million and NT$194 million as of March 31, 2023 and 2022, respectively. The Company will recognize revenue as the Company satisfies its performance obligations over time that aligns with progress toward completion of a contract in the future. The estimate of the transaction price does not include any estimated amounts of variable consideration that are constrained.

Asset recognized from costs to fulfill a contract with customer

As of March 31, 2023, December 31, 2022 and March 31, 2022, the Company recognized costs to fulfill engineering service contracts eligible for capitalization as other current assets which amounted to NT$762 million, NT$721 million and NT$675 million, respectively. Subsequently, the Company will expense from costs to fulfill a contract to operating costs when the related obligations are satisfied.

(22)

Operating Costs and Expenses

The Company’s employee benefit, depreciation and amortization expenses are summarized as follows:

	For the three-month periods ended March 31,
	2023			2022
	Operating costs	Operating expenses	Total	Operating costs	Operating expenses	Total
Employee benefit expenses
Salaries	$6,422,752	$3,042,646	$9,465,398	$7,030,250	$3,240,135	$10,270,385
Labor and health insurance	379,761	137,225	516,986	334,975	120,837	455,812
Pension	370,053	112,598	482,651	359,699	104,371	464,070
Other employee benefit expenses	90,965	36,779	127,744	75,920	34,641	110,561
Depreciation	8,771,788	396,396	9,168,184	10,140,278	449,165	10,589,443
Amortization	374,571	305,870	680,441	381,609	351,425	733,034

According to UMC’s Articles of Incorporation, the employees and directors’ compensation shall be distributed in the following order:

UMC shall allocate no less than 5% of profit as employees’ compensation and no more than 0.2% of profit as directors’ compensation for each profitable fiscal year after offsetting any cumulative losses. The aforementioned employees’ compensation will be distributed in shares or cash. The employees of UMC’s subsidiaries who fulfill specific requirements stipulated by the Board of Directors may be granted such compensation. Directors may only receive compensation in cash. UMC may, by a resolution adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors, distribute the aforementioned employees and directors’ compensation and report to the shareholders’ meeting for such distribution.

The Company recognized the employees and directors’ compensation in the profit or loss with corresponding other payables during the periods when earned for the three-month periods ended March 31, 2023 and 2022. The Board of Directors estimates the amount by taking into consideration the Articles of Incorporation, government regulations and industry averages. If the Board of Directors resolves to distribute employee compensation through stock, the number of stock distributed is calculated based on total employee compensation divided by the closing price of the day before the Board of Directors’ meeting. If the Board of Directors subsequently modifies the estimates significantly, the Company will recognize the change as an adjustment in the profit or loss in the subsequent period.

The distributions of employees and directors’ compensation for 2021 were reported to the shareholders’ meeting held on May 27, 2022, while the distributions of employees and directors’ compensation for 2022 were approved through the Board of Directors’ meeting held on February 22, 2023. The details of distribution were as follows:

	2022	2021
Employees’ compensation – Cash	$9,160,485	$4,770,909
Directors’ compensation	45,000	25,264

The aforementioned employees and directors’ compensation for 2022 approved during the Board of Directors’ meeting were consistent with amounts recognized by the Company. The aforementioned employees and directors’ compensation for 2021 reported during the shareholders’ meeting was consistent with the resolutions of the Board of Directors’ meeting held on February 24, 2022.

Information relevant to the aforementioned employees and directors’ compensation can be obtained from the “Market Observation Post System” on the website of the TWSE.

(23)

Net Other Operating Income and Expenses

	For the three-month periods ended March 31,
	2023	2022
Government grants	$1,008,885	$1,327,721
Rental income from property, plant and equipment	50,404	45,389
Gain on disposal of property, plant and equipment	59,020	61,418
Others	(81,519)	(91,190)
Total	$1,036,790	$1,343,338

(24)

Non-Operating Income and Expenses

Other gains and losses

	For the three-month periods ended March 31,
	2023	2022
Gain on valuation of financial assets and liabilities at fair value through profit or loss	$705,829	$2,417,830
Gain on disposal of investments accounted for under the equity method	19,548	-
Others	16,789	146,340
Total	$742,166	$2,564,170

Finance costs

	For the three-month periods ended March 31,
	2023	2022
Interest expenses
Bonds payable	$98,934	$156,063
Bank loans	174,707	301,291
Lease liabilities	44,957	34,371
Others	2,936	41
Financial expenses	25,716	12,124
Total	$347,250	$503,890

(25)

Components of Other Comprehensive Income (Loss)


	For the three-month period ended March 31, 2023
	Arising during the period	Reclassification adjustments during the period	Other comprehensive income (loss), before tax	Income tax effect	Other comprehensive income (loss), net of tax
Items that will not be reclassified subsequently to profit or loss:
Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income	$3,073,833	$-	$3,073,833	$6,873	$3,080,706
Share of other comprehensive income (loss) of associates and joint ventures which will not be reclassified subsequently to profit or loss	1,343,564	-	1,343,564	-	1,343,564
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations	(1,187,684)	-	(1,187,684)	80,496	(1,107,188)
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss	8,309	(1,341)	6,968	1,037	8,005
Total other comprehensive income (loss)	$3,238,022	$(1,341)	$3,236,681	$88,406	$3,325,087

	For the three-month period ended March 31, 2022
	Arising during the period	Reclassification adjustments during the period	Other comprehensive income (loss), before tax	Income tax effect	Other comprehensive income (loss), net of tax
Items that will not be reclassified subsequently to profit or loss:
Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income	$(1,666,445)	$-	$(1,666,445)	$(55,120)	$(1,721,565)
Share of other comprehensive income (loss) of associates and joint ventures which will not be reclassified subsequently to profit or loss	(733,160)	-	(733,160)	-	(733,160)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations	3,773,432	-	3,773,432	(22,228)	3,751,204
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss	133,067	-	133,067	(7,662)	125,405
Total other comprehensive income (loss)	$1,506,894	$-	$1,506,894	$(85,010)	$1,421,884

(26)

Income Tax

The major components of income tax expense (benefit) for the three-month periods ended March 31, 2023 and 2022 were as follows:

Income tax expense (benefit) recorded in profit or loss


	For the three-month periods ended March 31,
	2023	2022
Current income tax expense (benefit):
Current income tax charge	$2,306,944	$3,160,764
Adjustments in respect of current income tax of prior periods	(121,236)	(3,000)
Deferred income tax expense (benefit):
Deferred income tax related to origination and reversal of temporary differences	574,973	379,807
Deferred income tax related to recognition and derecognition of tax losses and unused tax credits	(190)	63,532
Adjustment of prior year’s deferred income tax	(862)	(2,461)
Deferred income tax arising from write-down or reversal of write-down of deferred tax assets	(15,725)	(16,391)
Income tax expense recorded in profit or loss	$2,743,904	$3,582,251

ii.

Deferred income tax related to components of other comprehensive income (loss)

(i)

Items that will not be reclassified subsequently to profit or loss:

	For the three-month periods ended March 31,
	2023	2022
Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income	$6,873	$(55,120)

(ii)

Items that may be reclassified subsequently to profit or loss:

	For the three-month periods ended March 31,
	2023	2022
Exchange differences on translation of foreign operations	$80,496	$(22,228)
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss	1,037	(7,662)
Income tax related to items that may be reclassified subsequently to profit or loss	$81,533	$(29,890)

(iii)

Deferred income tax charged directly to equity

	For the three-month periods ended March 31,
	2023	2022
Adjustments of changes in net assets of associates and joint ventures accounted for using equity method	$196	$-

The Company is subject to taxation in Taiwan and other foreign jurisdictions. As of March 31, 2023, income tax returns of UMC and its subsidiaries in Taiwan have been examined by the tax authorities through 2020, while in other foreign jurisdictions, relevant tax authorities have completed the examination through 2012.

UMC’s branch in Singapore obtained two tax incentives granted by the Singapore government for a period of five years from August 2020. The qualifying incomes are either tax-exempt or taxed at concessionary tax rate. The incentive period will end in July 2025.

(27)

Earnings Per Share

Earnings per share-basic

	For the three-month periods ended March 31,
	2023	2022
Net income attributable to the parent company	$16,183,002	$19,807,535
Weighted-average number of ordinary shares for basic earnings per share (thousand shares)	12,348,880	12,283,479
Earnings per share-basic (NTD)	$1.31	$1.61

Earnings per share-diluted

	For the three-month periods ended March 31,
	2023	2022
Net income attributable to the parent company	$16,183,002	$19,807,535
Weighted-average number of ordinary shares for basic earnings per share (thousand shares)	12,348,880	12,283,479
Effect of dilution
Restricted stocks for employees	122,772	164,890
Employees’ compensation	125,584	86,360
Weighted-average number of ordinary shares after dilution (thousand shares)	12,597,236	12,534,729
Earnings per share-diluted (NTD)	$1.28	$1.58

(28)

Reconciliation of Liabilities Arising from Financing Activities

For the three-month period ended March 31, 2023:


			Non-cash changes
Items	As of January 1, 2023	Cash Flows	Foreign exchange	Others (Note A)	As of March 31, 2023
Short-term loans	$-	$100,000	$-	$-	$100,000
Long-term loans (current portion included)	19,279,342	(585,090)	52,522	-	18,746,774
Bonds payable (current portion included)	28,184,687	-	-	45,919 (Note B)	28,230,606
Guarantee deposits (current portion included)	30,757,001	1,991,430	(194,896)	-	32,553,535 (Note C)
Lease liabilities	5,737,095	(159,259)	(374)	150,880	5,728,342
Other financial liabilities (Note D)	21,449,487	-	101,606	26,327	21,577,420

For the three-month period ended March 31, 2022:


			Non-cash changes
Items	As of January 1, 2022	Cash Flows	Foreign exchange	Others (Note A)	As of March 31, 2022
Short-term loans	$1,924,124	$(640,426)	$56,163	$-	$1,339,861
Long-term loans (current portion included)	36,624,907	28,005	1,108,997	-	37,761,909
Bonds payable (current portion included)	40,536,658	(7,249,135)	-	255,644 (Note B)	33,543,167
Guarantee deposits (current portion included)	14,369,769	69,641	354,499	-	14,793,909 (Note C)
Lease liabilities	5,068,754	(171,822)	64,228	88,067	5,049,227
Other financial liabilities (Note D)	20,966,209	-	773,677	58,769	21,798,655

Note A: Other non-cash changes mainly consisted of discount amortization measured by the effective interest method.

Note B: Please refer to Note 6(13) for the Company’s exchangeable bonds.

Note C: Guarantee deposits mainly consisted of deposits of capacity reservation.

Note D: Please refer to Note 9(6) for more details on other financial liabilities.

RELATED PARTY TRANSACTIONS

The following is a summary of transactions between the Company and related parties during the financial reporting periods:

(1)

Name and Relationship of Related Parties

Name of related parties		Relationship with the Company
FARADAY TECHNOLOGY CORP. and its Subsidiaries		Associate
UNIMICRON TECHNOLOGY CORP.		Associate
SILICON INTEGRATED SYSTEMS CORP.		The Company’s director
PHOTRONICS DNP MASK CORPORATION		Other related party

(2)

Significant Related Party Transactions

Operating transactions

Operating revenues

	For the three-month periods ended March 31,
	2023	2022
Associates	$561,947	$1,322,803
Others	321	13,465
Total	$562,268	$1,336,268

Accounts receivable, net

	As of
	March 31, 2023	December 31, 2022	March 31, 2022
Associates	$390,291	$529,525	$957,186
Others	312	1,052	10,404
Total	$390,603	$530,577	$967,590

The sales price to the above related parties was determined through mutual agreement in reference to market conditions. The collection periods for domestic sales to related parties were month-end 30 - 60 days, while the collection periods for overseas sales were month-end 30 - 60 days.

Refund liabilities (classified under other current liabilities)

	As of
	March 31, 2023	December 31, 2022	March 31, 2022
Associates	$957	$1,545	$2,426
Others	1	7	34
Total	$958	$1,552	$2,460

Significant asset transactions

Acquisition of investments accounted for under the equity method

Purchase price

Trading Volume

(In thousands

of shares)

Transaction

underlying

For the three-month period

ended March 31, 2023

Associates

4,945

Stock

$608,224

It was the acquisition of UNIMICRON’s stock. Please refer to Note 6(7) for the relevant information.

For the three-month period ended March 31, 2022: None.

Acquisition of intangible assets

	Purchase price
	For the three-month periods ended March 31,
	2023	2022
Associates	$21,015	$6,466

Others

Mask expenditure

	For the three-month periods ended March 31,
	2023	2022
Others	$548,775	$591,246

Other payables of mask expenditure

As of

March 31,

2023

December 31,
2022

March 31,

2022

Others

$622,693

$812,185

$720,366

Key management personnel compensation

	For the three-month periods ended March 31,
	2023	2022
Short-term employee benefits	$587,360	$304,839
Post-employment benefits	766	746
Share-based payment	137,450	222,478
Others	163	161
Total	$725,739	$528,224

ASSETS PLEDGED AS COLLATERAL

The following table lists assets of the Company pledged as collateral:


	Carrying Amount
	As of
	March 31, 2023	December 31, 2022	March 31, 2022	Party to which asset(s) was pledged	Purpose of pledge
Refundable Deposits (Time deposit)	$812,248	$812,248	$811,660	Customs	Customs duty guarantee
Refundable Deposits (Time deposit)	236,587	236,587	234,304	Science Park Bureau	Collateral for land lease
Refundable Deposits (Time deposit)	18,647	29,371	20,619	Science Park Bureau	Collateral for dormitory lease
Refundable Deposits (Time deposit)	64,950	64,950	64,950	National Property Administration, Ministry of Finance	Guarantee for the application of national non-public use land for development
Refundable Deposits (Time deposit)	8,118	8,118	-	Bureau of Land Administration, Tainan City Government	Guarantee for the application of national non-public use land for development
Refundable Deposits (Time deposit)	38,000	34,100	26,600	Liquefied Natural Gas Business Division, CPC Corporation, Taiwan	Energy resources guarantee
Refundable Deposits (Time deposit)	1,051,063	1,043,840	1,156,835	Bank of China and Agricultural Bank of China	Bank performance guarantee
Refundable Deposits (Time deposit)	455,850	459,750	-	CTBC Bank Singapore Branch	Collateral for letter of credit
Refundable Deposits (Bank deposit)	-	-	6,900	Shanghai Commercial Bank	Collateral for letter of credit
Buildings	4,786,227	4,828,597	5,131,837	Taiwan Cooperative Bank and Secured Syndicated Loans from China Development Bank and 6 others	Collateral for long-term loans

Machinery and equipment	$11,930,817	$14,066,044	$23,021,806	Taiwan Cooperative Bank, Mega International Commercial Bank, KGI Bank, First Commercial Bank, Shanghai Commercial Bank and Secured Syndicated Loans from China Development Bank and 6 others	Collateral for long-term loans
Transportation equipment	447	592	1,520	Secured Syndicated Loans from China Development Bank and 6 others	Collateral for long-term loans
Furniture and fixtures	22,696	46,823	137,084	Secured Syndicated Loans from China Development Bank and 6 others	Collateral for long-term loans
Right-of-use assets	277,899	278,230	289,465	Secured Syndicated Loans from China Development Bank and 6 others	Collateral for long-term loans
Total	$19,703,549	$21,909,250	$30,903,580

SIGNIFICANT CONTINGENCIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(1)

As of March 31, 2023, amounts available under unused letters of credit mainly for importing machinery and equipment were NT$1.2 billion.

(2)

As of March 31, 2023, the Company entrusted financial institutes to open performance guarantee, mainly related to the litigations and customs tax guarantee, amounting to NT$2.2 billion.

(3)

The Company entered into several patent license agreements and development contracts of intellectual property for a total contract amount of approximately NT$3.1 billion. As of March 31, 2023, the portion of royalties and development fees not yet recognized was NT$1.3 billion.

(4)

The Company entered into several construction contracts for the expansion of its operations. As of March 31, 2023, these construction contracts amounted to approximately NT$76.7 billion and the portion of the contracts not yet recognized was approximately NT$47.9 billion.

(5)

The Company entered into several wafer-processing contracts with its customers. According to the contracts, the Company shall provide agreed production capacity with the customers.

(6)

The Board of Directors of UMC resolved in October 2014 to participate in a 3-way agreement with Xiamen Municipal People’s Government and FUJIAN ELECTRONIC & INFORMATION GROUP to form a company which will focus on 12’’ wafer foundry services. The Company obtained R.O.C. government authority’s approval for the investment and invested RMB 8.3 billion in USCXM in instalments from January 2015 to September 2018, according to the agreement that the Company obtained the ability to exercise control. Furthermore, based on the agreement, UMC recognized a financial liability in other financial liabilities, current and other noncurrent liabilities-others, respectively for the purchase from the other investors of their investments in USCXM at their original investment cost plus interest totally amounting to RMB 4.9 billion, beginning from the seventh year (2022) following the last instalment payment made by the other investors. Accordingly, the Company recognizes non-controlling interests as required by IFRS 10 during the reporting period. At the end of each reporting period, the Company recognizes a financial liability for its commitment to the other investors in accordance with IFRS 9, at the same time derecognizing the non-controlling interests. Any difference between the financial liability and the non-controlling interests balance is recognized in equity.

On April 27, 2022, the Board of Directors of UMC approved an investment to increase capital of RMB 4.12 billion or equivalent US dollars (approximately US$0.66 billion) in its Cayman Islands subsidiary, UNITED MICROCHIP CORPORATION, for its Samoa subsidiary, GE, to purchase the shares of USCXM from XIAMEN JINYUAN INDUSTRIAL DEVELOPMENT CO., LTD.; in addition, the Company's subsidiary, HEJIAN, plans to purchase shares of USCXM with RMB 0.74 billion or equivalent US dollars (approximately US$0.12 billion) from FUJIAN ELECTRONICS & INFORMATION INDUSTRY ENTREPRENEURSHIP INVESTMENT LIMITED PARTNERSHIP. As a result, the total investment amount is RMB 4.9 billion. The transaction will be completed in three times from 2022 to 2025 at the ratio of 60%, 20% and 20%, respectively.

(7)

On August 31, 2017, the Taichung District Prosecutors Office indicted UMC based on the Trade Secret Act of R.O.C., alleging that employees of UMC misappropriated the trade secrets of MICRON TECHNOLOGY, INC. (MICRON) and of MICRON MEMORY TAIWAN CO., LTD.. On June 12, 2020, an adverse ruling issued by the District Court of Taichung in a suit alleged that UMC, two of its current employees and a former employee engaged in the misappropriation of trade secrets. UMC appealed against the sentence. On November 26, 2021, UMC and MICRON announced a settlement agreement between the two companies for all legal proceedings worldwide (the “Settlement Agreement”). Accordingly, MICRON submitted a motion to withdraw the case. On January 27, 2022, the Intellectual Property and Commercial Court announced its ruling of this case and UMC was sentenced to a fine of NT$20 million, subject to a two-year term of probation.

On December 5, 2017, MICRON filed a civil action with similar cause against UMC with the United States District Court, Northern District of California. MICRON claimed entitlement to the actual damages, treble damages and relevant fees and requested the court to issue an order that enjoins UMC from using its trade secrets in question. In accordance with the Settlement Agreement, the court issued a dismissal of the case with prejudice in January 2022.

On January 12, 2018, UMC filed three patent infringement actions with the Fuzhou Intermediate People’s Court against, among others, MICRON (XI’AN) CO., LTD. and MICRON (SHANGHAI) TRADING CO., LTD., requesting the court to order the defendants to stop manufacturing, processing, importing, selling, and committing to sell the products deploying the infringing patents in question, and also to destroy all inventories and related molds and tools. On July 3, 2018, the Fuzhou Intermediate People’s Court granted preliminary injunction against the aforementioned two defendants, holding that the two defendants must immediately cease to manufacture, sell, and import products that infringe the patent rights of UMC. The court approved withdrawal of one of the patent infringement actions on our motion while the other two actions are still on trial. In accordance with the Settlement Agreement, UMC submitted a motion to withdraw the case, and the motion is currently pending.

The amounts of aforementioned fine from ruling of the Intellectual Property and Commercial Court and the worldwide settlement between UMC and MICRON were recorded in non-operating other losses and have no material financial and operational effect on UMC’s business for the years presented.

10.

SIGNIFICANT DISASTER LOSS

None.

11.

SIGNIFICANT SUBSEQUENT EVENTS

None.

12.

OTHERS

(1)

Categories of financial instruments

	As of
Financial Assets	March 31, 2023	December 31, 2022	March 31, 2022
Financial assets at fair value through profit or loss	$18,807,797	$18,490,569	$22,332,406
Financial assets at fair value through other comprehensive income	18,263,433	15,189,600	18,169,220
Financial assets measured at amortized cost
Cash and cash equivalents (cash on hand excluded)	171,828,423	173,812,754	172,164,484
Receivables	28,903,999	38,783,086	38,822,973
Refundable deposits	2,749,664	2,749,691	2,390,529
Other financial assets	266,755	869,308	3,035,663
Total	$240,820,071	$249,895,008	$256,915,275

Financial Liabilities
Financial liabilities at fair value through profit or loss	$782,936	$438,397	$1,158,090
Financial liabilities measured at amortized cost
Short-term loans	100,000	-	1,339,861
Payables	55,730,821	58,893,871	39,295,080
Guarantee deposits (current portion included)	32,553,535	30,757,001	14,793,909
Bonds payable (current portion included)	28,230,606	28,184,687	33,543,167
Long-term loans (current portion included)	18,746,774	19,279,342	37,761,909
Lease liabilities	5,728,342	5,737,095	5,049,227
Other financial liabilities	21,577,420	21,449,487	21,798,655
Total	$163,450,434	$164,739,880	$154,739,898

(2)

Financial risk management objectives and policies

The Company’s risk management objectives are to manage the market risk, credit risk and liquidity risk related to its operating activities. The Company identifies, measures and manages the aforementioned risks based on policy and risk preference.

The Company has established appropriate policies, procedures and internal controls for financial risk management. Before entering into significant financial activities, approval process by the Board of Directors and Audit Committee must be carried out based on related protocols and internal control procedures. The Company complies with its financial risk management policies at all times.

(3)

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risks comprise currency risk, interest rate risk and other price risk (such as equity price risk).

Foreign currency risk

The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a different currency from the Company’s functional currency) and the Company’s net investments in foreign subsidiaries.

The Company applies natural hedges on the foreign currency risk arising from purchases or sales, and utilizes spot or forward exchange contracts to manage foreign currency risk and the net effect of the risks related to monetary financial assets and liabilities is minor. The notional amounts of the foreign currency contracts are the same as the amount of the hedged items. In principle, the Company does not carry out any forward exchange contracts for uncertain commitments. Furthermore, as net investments in foreign subsidiaries are for strategic purposes, they are not hedged by the Company.

The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Company’s profit is performed on significant monetary items denominated in foreign currencies as of the end of the reporting period. When NTD strengthens/weakens against USD by 10%, the profit for the three-month periods ended March 31, 2023 and 2022 decreases/increases by NT$988 million and NT$1,291 million, respectively. When RMB strengthens/weakens against USD by 10%, the profit for the three-month periods ended March 31, 2023 and 2022 decreases/increases by NT$468 million and increases/decreases by NT$40 million, respectively. When JPY strengthens/weakens against USD by 10%, the profit for the three-month periods ended March 31, 2023 and 2022 decreases/increases by NT$410 million and NT$481 million, respectively.

Interest rate risk

The Company is exposed to interest rate risk arising from borrowing at floating interest rates. All of the Company’s bonds have fixed interest rates and are measured at amortized cost. As such, changes in interest rates would not affect the future cash flows. On the other hand, as the interest rates of the Company’s short-term and long-term bank loans are floating, changes in interest rates would affect the future cash flows but not the fair value. Please refer to Note 6(11), (13) and (14) for the range of interest rates of the Company’s bonds and bank loans.

At the reporting dates, a change of 10 basis points of interest rate in a reporting period could cause the profit for the three-month periods ended March 31, 2023 and 2022 to decrease/increase by NT$5 million and NT$10 million, respectively.

Equity price risk

The Company’s listed and unlisted equity securities, investments in convertible bonds and exchange right of the exchangeable bonds issued are susceptible to market price risk arising from uncertainties about future performance of equity markets. The Company’s equity investments are classified as financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income, the investments in convertible bonds which contain the right of conversion to equity instruments are classified as financial assets at fair value through profit or loss, and the exchange right of the exchangeable bonds issued is classified as financial liabilities at fair value through profit or loss as it does not satisfy the definition of an equity component. Please refer to Note 6(2), (3) and (12) for the relevant information.

The sensitivity analysis for the equity instruments is based on the change in fair value as of the reporting date. A change of 5% in the price of the aforementioned financial assets at fair value through profit or loss of listed companies could increase/decrease the Company’s profit for the three-month periods ended March 31, 2023 and 2022 by NT$341 million and NT$397 million, respectively. A change of 5% in the price of the aforementioned financial assets at fair value through other comprehensive income of listed companies could increase/decrease the Company’s other comprehensive income for the three-month periods ended March 31, 2023 and 2022 by NT$736 million and NT$769 million, respectively.

Please refer to Note 12(7) for sensitivity analysis information of other equity instruments or derivatives that are linked to such equity instruments whose fair value measurement is categorized under Level 3.

(4)

Credit risk management

The Company only trades with approved and creditworthy third parties. Where the Company trades with third parties which have less credit, it will request collateral from them. It is the Company’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, notes and accounts receivable balances are monitored on an ongoing basis to decrease the Company’s exposure to credit risk.

The Company mitigates the credit risks from financial institutions by limiting its counter parties to only reputable domestic or international financial institutions with good credit standing and spreading its holdings among various financial institutions. The Company’s exposure to credit risk arising from the default of counter-parties is limited to the carrying amount of these instruments.

As of March 31, 2023, December 31, 2022 and March 31, 2022, accounts receivable from the top ten customers represent 59%, 56% and 60% of the total accounts receivable of the Company, respectively. The credit concentration risk of other accounts receivable is insignificant.

(5)

Liquidity risk management

The Company’s objectives are to maintain a balance between continuity of funding and flexibility through the use of cash and cash equivalents, bank loans, bonds and lease.

The table below summarizes the maturity profile of the Company’s financial liabilities based on the contractual undiscounted payments and contractual maturity:

	As of March 31, 2023
	Less than 1 year	2 to 3 years	4 to 5 years	> 5 years	Total
Non-derivative financial liabilities
Short-term loans	$100,481	$-	$-	$-	$100,481
Payables	55,443,426	-	-	-	55,443,426
Guarantee deposits	359,975	3,541,595	-	28,651,965	32,553,535
Bonds payable (Note)	2,445,649	6,611,389	10,577,944	4,144,408	23,779,390
Long-term loans	3,136,723	7,886,582	5,867,808	5,177,073	22,068,186
Lease liabilities	664,310	1,304,041	1,229,376	4,150,521	7,348,248
Other financial liabilities	17,314,748	4,328,918	-	-	21,643,666
Total	$79,465,312	$23,672,525	$17,675,128	$42,123,967	$162,936,932

	As of December 31, 2022
	Less than 1 year	2 to 3 years	4 to 5 years	> 5 years	Total
Non-derivative financial liabilities
Payables	$58,767,584	$-	$-	$-	$58,767,584
Guarantee deposits	238,416	3,867,087	169,419	26,482,079	30,757,001
Bonds payable (Note)	322,155	8,742,481	10,593,656	4,151,128	23,809,420
Long-term loans	3,246,153	8,425,744	7,798,280	3,031,293	22,501,470
Lease liabilities	658,092	1,222,822	1,207,385	4,299,914	7,388,213
Other financial liabilities	17,233,129	4,308,513	-	-	21,541,642
Total	$80,465,529	$26,566,647	$19,768,740	$37,964,414	$164,765,330

	As of March 31, 2022
	Less than 1 year	2 to 3 years	4 to 5 years	> 5 years	Total
Non-derivative financial liabilities
Short-term loans	$1,350,659	$-	$-	$-	$1,350,659
Payables	38,838,916	-	-	-	38,838,916
Guarantee deposits	112,469	3,546,193	65,941	11,069,306	14,793,909
Bonds payable (Note)	2,365,095	8,837,693	10,640,794	4,171,288	26,014,870
Long-term loans	12,036,339	12,984,720	11,440,726	6,147,555	42,609,340
Lease liabilities	698,333	1,204,362	1,070,279	2,772,888	5,745,862
Other financial liabilities	13,207,549	8,805,347	-	-	22,012,896
Total	$68,609,360	$35,378,315	$23,217,740	$24,161,037	$151,366,452
Derivative financial liabilities
Forward exchange contracts
Gross settlement
Inflow	$682,914	$-	$-	$-	$682,914
Outflow	(685,931)	-	-	-	(685,931)
Net	$(3,017)	$-	$-	$-	$(3,017)

Note:

UMC issued unsecured exchangeable bonds where the bondholders may exchange the bonds at any time on or after October 8, 2021 and prior to June 27, 2026 into NOVATEK common shares which UMC holds and accounts for as equity instruments investments measured at fair value through other comprehensive income. The balances of equity instruments investments measured at fair value through other comprehensive income were NT$4,394 million, NT$3,213 million and NT$6,083 million as of March 31, 2023, December 31, 2022 and March 31, 2022, respectively. All or any portion of the bonds will be redeemable at put price at the option of bondholders on July 7, 2024 at 98.14% of the principal amount.

(6)

Foreign currency risk management

UMC entered into forward exchange contracts for hedging the exchange rate risk arising from the net monetary assets or liabilities denominated in foreign currency. The details of forward exchange contracts entered into by UMC are summarized as follows:

As of March 31, 2023 and December 31, 2022

None.

As of March 31, 2022

Type		Notional Amount		Contract Period
Forward exchange contracts		Sell USD 32 million		March 17, 2022 - April 28, 2022

(7)

Fair value of financial instruments

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities;

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable;

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

Assets and liabilities measured and recorded at fair value on a recurring basis:

	As of March 31, 2023
	Level 1	Level 2	Level 3	Total
Financial assets:
Financial assets at fair value through profit or loss, current	$715,222	$-	$36,164	$751,386
Financial assets at fair value through profit or loss, noncurrent	6,871,508	648,957	10,535,946	18,056,411
Financial assets at fair value through other comprehensive income, current	4,394,403	-	-	4,394,403
Financial assets at fair value through other comprehensive income, noncurrent	10,318,956	-	3,550,074	13,869,030
Financial liabilities:
Financial liabilities at fair value through profit or loss, current	-	-	782,936	782,936

	As of December 31, 2022
	Level 1	Level 2	Level 3	Total
Financial assets:
Financial assets at fair value through profit or loss, current	$669,444	$-	$36,474	$705,918
Financial assets at fair value through profit or loss, noncurrent	6,626,088	468,164	10,690,399	17,784,651
Financial assets at fair value through other comprehensive income, current	3,213,057	-	-	3,213,057
Financial assets at fair value through other comprehensive income, noncurrent	8,366,276	-	3,610,267	11,976,543
Financial liabilities:
Financial liabilities at fair value through profit or loss, current	-	-	438,397	438,397

	As of March 31, 2022
	Level 1	Level 2	Level 3	Total
Financial assets:
Financial assets at fair value through profit or loss, current	$740,801	$236	$33,998	$775,035
Financial assets at fair value through profit or loss, noncurrent	9,802,275	546,853	11,208,243	21,557,371
Financial assets at fair value through other comprehensive income, current	6,082,662	-	-	6,082,662
Financial assets at fair value through other comprehensive income, noncurrent	9,290,908	-	2,795,650	12,086,558
Financial liabilities:
Financial liabilities at fair value through profit or loss, current	-	3,017	1,155,073	1,158,090

Fair values of financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income that are categorized into Level 1 are based on the quoted market prices in active markets. If there is no active market, the Company estimates the fair value by using the valuation techniques (income approach and market approach) in consideration of cash flow forecast, recent fund raising activities, valuation of similar companies, individual company’s development, market conditions and other economic indicators.

If there are restrictions on the sale or transfer of a financial asset, which are a characteristic of the asset, the fair value of the asset will be determined based on similar but unrestricted financial assets’ quoted market price with appropriate discounts for the restrictions. To measure fair values, if the lowest level input that is significant to the fair value measurement is directly or indirectly observable, then the financial assets are classified as Level 2 of the fair value hierarchy, otherwise as Level 3.

During the three-month periods ended March 31, 2023 and 2022, there were no significant transfers between Level 1 and Level 2 fair value measurements.

Reconciliation for fair value measurement in Level 3 fair value hierarchy were as follows:

	Financial assets at fair value through profit or loss						Financial assets at fair value through other comprehensive income
	Common stock	Preferred stock	Funds	Convertible bonds	Others	Total	Common stock	Preferred stock	Total
As of January 1, 2023	$3,198,808	$2,865,258	$4,626,333	$36,474	$-	$10,726,873	$3,427,720	$182,547	$3,610,267
Recognized in profit (loss)	(79,268)	(124,211)	(82,785)	(260)	(540)	(287,064)	-	-	-
Recognized in other comprehensive income (loss)	-	-	-	-	-	-	(49,984)	(10,209)	(60,193)
Acquisition	157,176	-	145,432	-	152,475	455,083	-	-	-
Disposal	-	(58,690)	-	-	-	(58,690)	-	-	-
Return of capital	(14)	-	(1,485)	-	-	(1,499)	-	-	-
Transfer out of Level 3	(225,078)	-	-	-	-	(225,078)	-	-	-
Exchange effect	(6,194)	(9,249)	(22,037)	(50)	15	(37,515)	-	-	-
As of March 31, 2023	$3,045,430	$2,673,108	$4,665,458	$36,164	$151,950	$10,572,110	$3,377,736	$172,338	$3,550,074

		Financial liabilities at fair value through profit or loss
		Derivatives
As of January 1, 2023		$438,397
Recognized in profit (loss)		344,539
As of March 31, 2023		$782,936

	Financial assets at fair value through profit or loss					Financial assets at fair value through other comprehensive income
	Common stock	Preferred stock	Funds	Convertible bonds	Total	Common stock	Preferred stock	Total
As of January 1, 2022	$3,584,326	$2,580,246	$3,464,652	$234,936	$9,864,160	$2,351,603	$151,859	$2,503,462
Recognized in profit (loss)	220,006	88,123	669,572	439	978,140	-	-	-
Recognized in other comprehensive income (loss)	-	-	-	-	-	281,120	11,068	292,188
Acquisition	147,500	218,634	162,727	-	528,861	-	-	-
Disposal	-	-	-	(149,850)	(149,850)	-	-	-
Transfer out of Level 3	(136,800)	-	-	-	(136,800)	-	-	-
Exchange effect	28,995	46,156	80,626	1,953	157,730	-	-	-
As of March 31, 2022	$3,844,027	$2,933,159	$4,377,577	$87,478	$11,242,241	$2,632,723	$162,927	$2,795,650

		Financial liabilities at fair value through profit or loss
		Derivatives
As of January 1, 2022		$2,380,599
Recognized in profit (loss)		(1,082,703)
Derecognition		(142,823)
As of March 31, 2022		$1,155,073

The total profit (loss) of NT$(287) million and NT$978 million for the three-month periods ended March 31, 2023 and 2022, were included in profit or loss that is attributable to the change in unrealized gains or losses relating to those financial assets without quoted market prices held at the end of the reporting period.

The total profit (loss) of NT$(345) million and NT$1,002 million for the three-month periods ended March 31, 2023 and 2022, were included in profit or loss that is attributable to the change in unrealized gains or losses relating to those financial liabilities without quoted market prices held at the end of the reporting period.

The Company’s policy to recognize the transfer into and out of fair value hierarchy levels is based on the event or changes in circumstances that caused the transfer.

Significant unobservable inputs of fair value measurement in Level 3 fair value hierarchy were as follows:


As of March 31, 2023
Category	Valuation technique	Significant unobservable inputs	Quantitative information	Interrelationship between inputs and fair value	Sensitivity analysis of interrelationship between inputs and fair value
Unlisted stock	Market Approach	Discount for lack of marketability	0% - 50%	The greater degree of lack of marketability, the lower the estimated fair value is determined.	A change of 5% in the discount for lack of marketability of the aforementioned fair values of unlisted stocks could decrease/increase the Company’s profit (loss) for the three-month period ended March 31, 2023 by NT$265 million and NT$233 million, respectively, and decrease/increase the Company’s other comprehensive income (loss) for the three-month period ended March 31, 2023 by NT$244 million.
Embedded derivatives in exchangeable bonds	Binomial tree valuation model	Volatility	37.30%	The higher the volatility, the higher the estimated fair value is determined.	A change of 5% in the volatility could decrease/increase the Company’s profit (loss) for the three-month period ended March 31, 2023 by NT$113 million and NT$110 million, respectively.

As of March 31, 2022
Category	Valuation technique	Significant unobservable inputs	Quantitative information	Interrelationship between inputs and fair value	Sensitivity analysis of interrelationship between inputs and fair value
Unlisted stock	Market Approach	Discount for lack of marketability	0% - 50%	The greater degree of lack of marketability, the lower the estimated fair value is determined.	A change of 5% in the discount for lack of marketability of the aforementioned fair values of unlisted stocks could decrease/increase the Company’s profit (loss) for the three-month period ended March 31, 2022 by NT$300 million and NT$251 million, respectively, and decrease/increase the Company’s other comprehensive income (loss) for the three-month period ended March 31, 2022 by NT$206 million.
Embedded derivatives in exchangeable bonds	Binomial tree valuation model	Volatility	41.22%	The higher the volatility, the higher the estimated fair value is determined.	A change of 5% in the volatility could decrease/increase the Company’s profit (loss) for the three-month period ended March 31, 2022 by NT$192 million and NT$182 million, respectively.

Assets and liabilities not recorded at fair value but for which fair value is disclosed:

The fair value of bonds payable is estimated by the market price or using a valuation model. The model uses market-based observable inputs including share price, exchange price, volatility, risk-free interest rates and risk discount rates. The fair value of long-term loans is determined using discounted cash flow model, based on the Company’s current incremental borrowing rates of similar loans.

The fair values of the Company’s cash and cash equivalents, receivables, refundable deposits, other financial assets, short-term loans, payables and guarantee deposits approximate their carrying amount.

As of March 31, 2023

		Fair value measurements during reporting period using
Items	Fair value	Level 1	Level 2	Level 3	Carrying amount
Bonds payables (current portion included)	$28,381,492	$22,905,691	$5,475,801	$-	$28,230,606
Long-term loans (current portion included)	18,746,774	-	18,746,774	-	18,746,774

As of December 31, 2022

		Fair value measurements during reporting period using
Items	Fair value	Level 1	Level 2	Level 3	Carrying amount
Bonds payables (current portion included)	$28,346,985	$22,916,330	$5,430,655	$-	$28,184,687
Long-term loans (current portion included)	19,279,342	-	19,279,342	-	19,279,342

As of March 31, 2022

		Fair value measurements during reporting period using
Items	Fair value	Level 1	Level 2	Level 3	Carrying amount
Bonds payables (current portion included)	$34,638,735	$25,214,067	$9,424,668	$-	$33,543,167
Long-term loans (current portion included)	37,761,909	-	37,761,909	-	37,761,909

(8)

Significant financial assets and liabilities denominated in foreign currencies

The following information was summarized by the foreign currencies other than the functional currency of the Company. The exchange rates disclosed were used to translate the foreign currencies into the functional currency. The significant financial assets and liabilities denominated in foreign currencies were as follows:


	As of
	March 31, 2023			December 31, 2022
	Foreign Currency (thousand)	Exchange Rate	NTD (thousand)	Foreign Currency (thousand)	Exchange Rate	NTD (thousand)
Financial Assets
Monetary items
USD:NTD	$1,499,955	30.39	$45,583,618	$1,548,069	30.65	$47,448,305
EUR:NTD	47,206	32.95	1,555,444	72,598	32.54	2,362,354
JPY:NTD	8,661,948	0.2267	1,963,664	6,013,172	0.2305	1,386,036
RMB:NTD	1,659	4.405	7,309	1,656	4.384	7,261
SGD:USD	161,146	0.7509	3,677,326	64,822	0.7439	1,477,979
USD:RMB	288,465	6.8717	8,731,793	299,074	6.9646	9,131,581
USD:JPY	176,979	133.54	5,357,769	230,511	132.70	7,050,718
Non-Monetary items
USD:NTD	219,680	30.39	6,676,084	224,599	30.65	6,883,952
Financial Liabilities
Monetary items
USD:NTD	1,171,012	30.49	35,704,142	1,118,779	30.75	34,402,440
EUR:NTD	54,742	33.35	1,825,652	73,542	32.94	2,422,478
JPY:NTD	10,964,215	0.2308	2,530,541	6,543,263	0.2346	1,535,050
RMB:NTD (Note C)	4,844,115	4.455	21,580,531	4,838,233	4.434	21,452,727
SGD:USD	198,994	0.7543	4,576,584	207,996	0.7473	4,779,645
USD:RMB	135,009	6.8717	4,133,090	113,269	6.9646	3,497,875
USD:JPY	43,672	133.54	1,346,016	52,396	132.70	1,631,151


	As of
	March 31, 2022
	Foreign Currency (thousand)	Exchange Rate	NTD (thousand)
Financial Assets
Monetary items
USD:NTD	$1,026,891	28.57	$29,338,285
EUR:NTD	15,884	31.72	503,830
JPY:NTD	3,107,549	0.2333	724,991
RMB:NTD	1,649	4.481	7,390
SGD:USD	71,169	0.7378	1,500,175
USD:RMB	629,297	6.3482	17,901,191
USD:JPY	186,402	122.41	5,323,304
Non-Monetary items
USD:NTD	212,210	28.57	6,062,844
Financial Liabilities
Monetary items
USD:NTD	573,033	28.67	16,428,870
EUR:NTD	12,699	32.12	407,885
JPY:NTD	3,297,594	0.2374	782,849
RMB:NTD (Note C)	4,811,648	4.531	21,801,579
SGD:USD	110,333	0.7415	2,345,542
USD:RMB	643,621	6.3482	18,512,929
USD:JPY	23,379	122.41	679,386

Note A:

The foreign currency transactions mentioned above are expressed in terms of the amount before elimination.

Note B:

Please refer to the consolidated statements of comprehensive income for the total of realized and unrealized foreign exchange gain and loss. Since there were varieties of foreign currency transactions and functional currencies within the subsidiaries of the Company, the Company was unable to disclose foreign exchange gain (loss) towards each foreign currency with significant impact.

Note C:

Please refer to Note 9(6) for more details on other financial liabilities.

(9)

Significant intercompany transactions among consolidated entities for the three-month periods ended March 31, 2023 and 2022 are disclosed in Attachment 1.

(10)

Capital management

The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios to support its business and maximize the shareholders’ value. The Company also ensures its ability to operate continuously to provide returns to shareholders and the interests of other related parties, while maintaining the optimal capital structure to reduce costs of capital.

To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders, issue new shares or dispose assets to redeem liabilities.

Similar to its peers, the Company monitors its capital based on debt to capital ratio. The ratio is calculated as the Company’s net debt divided by its total capital. The net debt is derived by taking the total liabilities on the consolidated balance sheets minus cash and cash equivalents. The total capital consists of total equity (including capital, additional paid-in capital, retained earnings, other components of equity and non-controlling interests) plus net debt.

The Company’s strategy, which is unchanged for the reporting periods, is to maintain a reasonable ratio in order to raise capital with reasonable cost. The debt to capital ratios as of March 31, 2023, December 31, 2022 and March 31, 2022 were as follows:

	As of
	March 31, 2023	December 31, 2022	March 31, 2022
Total liabilities	$194,081,051	$197,601,153	$180,623,409
Less: Cash and cash equivalents	(171,834,458)	(173,818,777)	(172,170,231)
Net debt	22,246,593	23,782,376	8,453,178
Total equity	355,550,063	335,450,939	302,285,107
Total capital	$377,796,656	$359,233,315	$310,738,285
Debt to capital ratios	5.89%	6.62%	2.72%

13.

ADDITIONAL DISCLOSURES

(1)

The following are additional disclosures for the Company and its affiliates as required by the R.O.C. Securities and Futures Bureau:

Financing provided to others for the three-month period ended March 31, 2023: Please refer to Attachment 2.

Endorsement/Guarantee provided to others for the three-month period ended March 31, 2023: Please refer to Attachment 3.

Securities held as of March 31, 2023 (excluding subsidiaries, associates and joint venture): Please refer to Attachment 4.

Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20 percent of the capital stock for the three-month period ended March 31, 2023: Please refer to Attachment 5.

Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20 percent of the capital stock for the three-month period ended March 31, 2023: Please refer to Attachment 6.

Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20 percent of the capital stock for the three-month period ended March 31, 2023: Please refer to Attachment 7.

Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million or 20 percent of the capital stock for the three-month period ended March 31, 2023: Please refer to Attachment 8.

Receivables from related parties with amounts exceeding the lower of NT$100 million or 20 percent of capital stock as of March 31, 2023: Please refer to Attachment 9.

Names, locations and related information of investees as of March 31, 2023 (excluding investment in Mainland China): Please refer to Attachment 10.

Financial instruments and derivative transactions: Please refer to Note 12.

(2)

Investment in Mainland China

Investee company name, main businesses and products, total amount of capital, method of investment, accumulated inflow and outflow of investments from Taiwan, net income (loss) of investee company, percentage of ownership, investment income (loss), carrying amount of investments, cumulated inward remittance of earnings and limits on investment in Mainland China: Please refer to Attachment 11.

Directly or indirectly significant transactions through third regions with the investees in Mainland China, including price, payment terms, unrealized gain or loss, and other events with significant effects on the operating results and financial condition: Please refer to Attachment 1, 3, 8 and 9.

(3)

Information of major shareholders as of March 31, 2023: Please refer to Attachment 12.

14.

OPERATING SEGMENT INFORMATION

The Company determined its operating segments based on business activities with discrete financial information regularly reported through the Company’s internal reporting protocols to the Company’s chief operating decision maker. The Company only has wafer fabrication operating segment as the single reporting segment. The primary operating activity of the wafer fabrication segment is the manufacture of chips to the design specifications of our customers by using our own proprietary processes and techniques. There was no material difference between the accounting policies of the operating segment and those described in Note 4. Please refer to the Company’s consolidated financial statements for the related segment revenue and operating results.

ATTACHMENT 1 (Significant intercompany transactions between consolidated entities)
(Amount in thousand; Currency denomination in NTD or in foreign currencies)

For the three-month period ended March 31, 2023

	Related party	Counterparty	Relationship with the Company (Note 2)	Transactions
No. (Note 1)				Account	Amount	Collection periods (Note 3)	Percentage of consolidated operating revenues or consolidated total assets (Note 4)
No. (Note 1)				Account	Amount	Collection periods (Note 3)
0	UNITED MICROELECTRONICS CORPORATION	UMC GROUP (USA)	1	Sales	$16,410,042	Net 60 days	30%
0	UNITED MICROELECTRONICS CORPORATION	UMC GROUP (USA)	1	Accounts receivable	6,546,699	-	1%
0	UNITED MICROELECTRONICS CORPORATION	UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.	1	Sales	278,810	Net 30 days	1%
					(Note 5)
0	UNITED MICROELECTRONICS CORPORATION	UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.	1	Accounts receivable	9,234	-	0%
0	UNITED MICROELECTRONICS CORPORATION	UNITEDDS SEMICONDUCTOR (SHANDONG) CO., LTD.	1	Sales	124,764	Net 30 days	0%
0	UNITED MICROELECTRONICS CORPORATION	UNITEDDS SEMICONDUCTOR (SHANDONG) CO., LTD.	1	Accounts receivable	6,207	-	0%
1	UNITED SEMICONDUCTOR JAPAN CO., LTD.	UMC GROUP (USA)	3	Sales	1,405,490	Net 60 days	3%
1	UNITED SEMICONDUCTOR JAPAN CO., LTD.	UMC GROUP (USA)	3	Accounts receivable	789,215	-	0%
2	UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.	UMC GROUP (USA)	3	Sales	486,863	Net 60 days	1%
2	UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.	UMC GROUP (USA)	3	Accounts receivable	292,085	-	0%
2	UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.	UNITED MICROELECTRONICS CORPORATION	2	Sales	121,777	Net 30 days - Net 45 days	0%
2	UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.	UNITED MICROELECTRONICS CORPORATION	2	Accounts receivable	114,062	-	0%
3	WAVETEK MICROELECTRONICS CORPORATION	UMC GROUP (USA)	3	Sales	118,632	Net 60 days	0%
3	WAVETEK MICROELECTRONICS CORPORATION	UMC GROUP (USA)	3	Accounts receivable	80,821	-	0%
4	HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.	UMC GROUP (USA)	3	Sales	146,954	Net 60 days	0%
4	HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.	UMC GROUP (USA)	3	Accounts receivable	103,682	-	0%

For the three-month period ended March 31, 2022

	Related party	Counterparty	Relationship with the Company (Note 2)	Transactions
No. (Note 1)				Account	Amount	Collection periods (Note 3)	Percentage of consolidated operating revenues or consolidated total assets (Note 4)
No. (Note 1)				Account	Amount	Collection periods (Note 3)
0	UNITED MICROELECTRONICS CORPORATION	UMC GROUP (USA)	1	Sales	$14,114,663	Net 60 days	22%
0	UNITED MICROELECTRONICS CORPORATION	UMC GROUP (USA)	1	Accounts receivable	7,749,798	-	2%
0	UNITED MICROELECTRONICS CORPORATION	UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.	1	Sales	287,225	Net 30 days	0%
					(Note 5)
0	UNITED MICROELECTRONICS CORPORATION	UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.	1	Accounts receivable	9,683	-	0%
1	UNITED SEMICONDUCTOR JAPAN CO., LTD.	UMC GROUP (USA)	3	Sales	936,411	Net 60 days	1%
1	UNITED SEMICONDUCTOR JAPAN CO., LTD.	UMC GROUP (USA)	3	Accounts receivable	693,802	-	0%
2	UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.	UMC GROUP (USA)	3	Sales	369,311	Net 60 days	1%
2	UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.	UMC GROUP (USA)	3	Accounts receivable	247,760	-	0%
3	WAVETEK MICROELECTRONICS CORPORATION	UMC GROUP (USA)	3	Sales	221,831	Net 60 days	0%
3	WAVETEK MICROELECTRONICS CORPORATION	UMC GROUP (USA)	3	Accounts receivable	141,060	-	0%


Note 1:	UMC and its subsidiaries are coded as follows:
	1. UMC is coded "0".
	2. The subsidiaries are coded consecutively beginning from "1" in the order presented in the table above.
Note 2:	Transactions are categorized as follows:
	1. The holding company to subsidiary.
	2. Subsidiary to holding company.
	3. Subsidiary to subsidiary.
Note 3:	The sales price to the above related parties was determined through mutual agreement in reference to market conditions.
Note 4:	The percentage with respect to the consolidated asset/liability for transactions of balance sheet items are based on each item's balance at period-end.
	For profit or loss items, cumulative balances are used as basis.
Note 5:	UMC authorized technology licenses to its subsidiary, UNITED SEMICONDUCTOR (XIAMEN) CO., LTD., in the amount of USD 0.35 billion which was recognized as deferred revenue.
	Since it was a downstream transaction, the deferred revenue would be realized over time.

ATTACHMENT 2 (Financing provided to others for the three-month period ended March 31, 2023)

(Amount in thousand; Currency denomination in NTD or in foreign currencies)

Collateral

No.

Lender

Counter-party

Financial statement account

Related Party

Maximum balance for the period

Ending balance

Actual amount provided

Interest rate

Nature of financing

Amount of sales to (purchases from) counter-party

Reason for financing

Loss allowance

Limit of financing amount for individual counter-party

Limit of total financing amount

Item

Value

None

ATTACHMENT 3 (Endorsement/Guarantee provided to others for the three-month period ended March 31, 2023)

(Amount in thousand; Currency denomination in NTD or in foreign currencies)

UNITED MICROELECTRONICS CORPORATION

No.
(Note 1)

Endorsor/Guarantor

Receiving party

Limit of guarantee/endorsement amount for receiving party (Note 3)

Maximum balance for the period

Percentage of accumulated guarantee amount to net assets value from the latest financial statement

Limit of total guarantee/endorsement amount (Note 4)

Company name

Relationship
(Note 2)

Ending balance

Actual amount
provided

Amount of collateral guarantee/endorsement

UNITED MICROELECTRONICS
CORPORATION

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

$159,842,536

$10,254,705

$10,254,705
(Note 5)

$6,850,544
(Note 5)

2.89%

$159,842,536

HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.

No.
(Note 1)

Endorsor/Guarantor

Receiving party

Limit of guarantee/endorsement amount for receiving party (Note 6)

Maximum balance for the period

Percentage of accumulated guarantee amount to net assets value from the latest financial statement

Limit of total guarantee/endorsement amount (Note 6)

Company name

Relationship
(Note 2)

Ending balance

Actual amount
provided

Amount of collateral guarantee/endorsement

HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

$14,206,850

$2,982,072

$1,795,334

9.45%

$14,206,850


Note 1:	The parent company and its subsidiaries are coded as follows:
	1. The parent company is coded "0".
	2. The subsidiaries are coded consecutively beginning from "1" in the order presented in the table above.
Note 2:	According to the "Guidelines Governing the Preparation of Financial Reports by Securities Issuers" issued by the R.O.C. Securities and Futures Bureau, receiving parties should be disclosed as one of the following:
	1. A company with which it does business.
	2. A company in which the public company directly and indirectly holds more than 50% of the voting shares.
	3. A company that directly and indirectly holds more than 50% of the voting shares in the public company.
	4. A company in which the public company holds, directly or indirectly, 90% or more of the voting shares.
	5. A company that fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
	6. A company that all capital contributing shareholders make endorsements/guarantees for their jointly invested company in proportion to their shareholding percentages.
	7. Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.
Note 3:	The amount of endorsements/guarantees shall not exceed 45% of the net worth of endorsor/guarantor; and the ceilings on the amount of endorsements/guarantees for any single entity are as follows:
	1. The amount of endorsements/guarantees for any single entity shall not exceed 45% of net worth of endorsor/guarantor.
	2. The amount of endorsements/guarantees for a company which endorsor/guarantor does business with, except the ceiling rules abovementioned shall not exceed the needed amounts arising from business dealings which is the higher amount of total sales or purchase transactions between endorsor/guarantor and the receiving party.
	The aggregate amount of endorsements/guarantees that the Company as a whole is permitted to make shall not exceed 45% of the Company's net worth, and the aggregate amount of endorsements/guarantees for any single entity shall not exceed 45% of the Company's net worth.
Note 4:	Limit of total guarantee/endorsement amount shall not exceed 45% of UMC's net assets value as of March 31, 2023.
Note 5:	Total endorsement amount is up to USD 30 million and CNY 2.12 billion. As of March 31, 2023, actual amount provided was NT$ 6.85 billion.
Note 6:	Limit of total endorsed/guaranteed amount shall not exceed 45% of HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.'s net assets value as of March 31, 2023.
	The amount of endorsements/guarantees for any single entity shall not exceed 45% of net worth of HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.'s net assets value as of March 31, 2023.
	The aggregate amount of endorsements/guarantees that the Company as a whole is permitted to make shall not exceed 45% of the Company's net worth, and the aggregate amount of endorsements/guarantees for any single entity shall not exceed 45% of the Company's net worth.

ATTACHMENT 4 (Securities held as of March 31, 2023) (Excluding subsidiaries, associates and joint ventures)
(Amount in thousand; Currency denomination in NTD or in foreign currencies)

UNITED MICROELECTRONICS CORPORATION

				March 31, 2023
Type of securities	Name of securities	Relationship	Financial statement account	Units (thousand)/ bonds/ shares (thousand)	Carrying amount		Percentage of ownership (%)	Fair value/ Net assets value		Shares as collateral (thousand)
Fund	MILLERFUL NO.1 REAL ESTATE INVESTMENT TRUST	-	Financial assets at fair value through profit or loss, current	22,174		$223,070	1.34		$223,070	None
Stock	PIXART IMAGING, INC.	-	Financial assets at fair value through profit or loss, current	1,600		172,800	1.09		172,800	None
Stock	KING YUAN ELECTRONICS CO., LTD.	-	Financial assets at fair value through profit or loss, current	2,675		129,738	0.22		129,738	None
Fund	RED ARC GLOBAL INVESTMENTS (IRELAND) ICAV TERM LIQUIDITY FUND	-	Financial assets at fair value through profit or loss, current	57		189,614	0.39		189,614	None
Fund	TGVEST ASIA PARTNERS II(TAIWAN), L.P.	-	Financial assets at fair value through profit or loss, noncurrent	-		310,127	18.00		310,127	None
Stock	PIXTECH, INC.	-	Financial assets at fair value through profit or loss, noncurrent	9,883		-	17.63		-	None
Stock	UNITED FU SHEN CHEN TECHNOLOGY CORP.	-	Financial assets at fair value through profit or loss, noncurrent	17,511		-	15.75		-	None
Stock	HOLTEK SEMICONDUCTOR INC.	-	Financial assets at fair value through profit or loss, noncurrent	22,144		1,636,461	9.79		1,636,461	None
Fund	GRANDFULL CONVERGENCE INNOVATION GROWTH FUND, L.P.	-	Financial assets at fair value through profit or loss, noncurrent	-		174,464	9.38		174,464	None
Stock	UNITED INDUSTRIAL GASES CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	16,680		1,358,061	7.66		1,358,061	None
Stock	OCTTASIA INVESTMENT HOLDING INC.	-	Financial assets at fair value through profit or loss, noncurrent	4,530		345,543	6.29		345,543	None
Stock	AMIC TECHNOLOGY CORP.	-	Financial assets at fair value through profit or loss, noncurrent	1,412		-	4.71		-	None
Stock	KING YUAN ELECTRONICS CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	20,483		993,411	1.67		993,411	None
Stock	ENNOSTAR INC.	-	Financial assets at fair value through profit or loss, noncurrent	5,357		285,019	0.71		285,019	None
Stock	PROMOS TECHNOLOGIES INC.	-	Financial assets at fair value through profit or loss, noncurrent	324		-	0.72		-	None
Stock-Preferred stock	TONBU, INC.	-	Financial assets at fair value through profit or loss, noncurrent	938		-	-		-	None
Stock-Preferred stock	AETAS TECHNOLOGY INC.	-	Financial assets at fair value through profit or loss, noncurrent	1,166		-	-		-	None
Stock-Preferred stock	TA SHEE GOLF & COUNTRY CLUB	-	Financial assets at fair value through profit or loss, noncurrent	0		18,000	-		18,000	None
Stock	NOVATEK MICROELECTRONICS CORP.	-	Financial assets at fair value through other comprehensive income, current	10,184		4,394,403	1.67		4,394,403	None
Stock	SILICON INTEGRATED SYSTEMS CORP.	The Company's director	Financial assets at fair value through other comprehensive income, noncurrent	142,535		2,679,661	19.02		2,679,661	None
Stock	UNIMICRON HOLDING LIMITED	Associate	Financial assets at fair value through other comprehensive income, noncurrent	20,000		2,823,231	10.74		2,823,231	None
Stock	ITE TECH. INC.	-	Financial assets at fair value through other comprehensive income, noncurrent	13,960		1,253,606	8.67		1,253,606	None
Stock	CHIPBOND TECHNOLOGY CORPORATION	-	Financial assets at fair value through other comprehensive income, noncurrent	53,164		3,684,253	7.20		3,684,253	None
Stock	NOVATEK MICROELECTRONICS CORP.	-	Financial assets at fair value through other comprehensive income, noncurrent	6,261		2,701,436	1.03		2,701,436	None
Stock-Preferred stock	MTIC HOLDINGS PTE. LTD.	Associate	Financial assets at fair value through other comprehensive income, noncurrent	12,000		172,338	-		172,338	None

ATTACHMENT 4 (Securities held as of March 31, 2023) (Excluding subsidiaries, associates and joint ventures)
(Amount in thousand; Currency denomination in NTD or in foreign currencies)

FORTUNE VENTURE CAPITAL CORP.

				March 31, 2023
Type of securities	Name of securities	Relationship	Financial statement account	Units (thousand)/ bonds/ shares (thousand)	Carrying amount		Percentage of ownership (%)	Fair value/ Net assets value		Shares as collateral (thousand)
Bonds	CRYSTALWISE TECHNOLOGY INC.	-	Financial assets measured at amortized cost, current	20		$20,000	-		N/A	None
Convertible bonds	GEAR RADIO LTD.	-	Financial assets at fair value through profit or loss, current	-		30,390	-		30,390	None
Stock	DARCHUN VENTURE CORP.	-	Financial assets at fair value through profit or loss, noncurrent	1,514		2,468	19.65		2,468	None
Stock	SOLARGATE TECHNOLOGY CORP.	-	Financial assets at fair value through profit or loss, noncurrent	957		-	15.94		-	None
Fund	TRENDFORCE CAPITAL FUND SPC-TRENDFORCE CAPITAL FUND I SP	-	Financial assets at fair value through profit or loss, noncurrent	15		99,233	14.33		99,233	None
Stock	EVERGLORY RESOURCE TECHNOLOGY CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	2,500		27,225	10.23		27,225	None
Stock	ADVANCE MATERIALS CORP.	-	Financial assets at fair value through profit or loss, noncurrent	10,669		81,723	9.08		81,723	None
Stock	EXCELSIUS MEDICAL CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	1,500		-	7.50		-	None
Stock	TAIWAN REDEYE BIOMEDIAL INC.	-	Financial assets at fair value through profit or loss, noncurrent	743		5,854	6.46		5,854	None
Stock	LICO TECHNOLOGY CORP.	-	Financial assets at fair value through profit or loss, noncurrent	6,609		-	5.32		-	None
Stock	AMPAK TECHNOLOGY INC.	-	Financial assets at fair value through profit or loss, noncurrent	3,000		266,700	4.53		266,700	None
Stock	EMPASS TECHNOLOGY INC.	-	Financial assets at fair value through profit or loss, noncurrent	374		5,235	4.48		5,235	None
Stock	MERIDIGEN BIOTECH CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	3,838		-	4.20		-	None
Stock	TAIWAN AULISA MEDICAL DEVICES TECHNOLOGIES, INC.	-	Financial assets at fair value through profit or loss, noncurrent	1,114		10,540	4.01		10,540	None
Stock	WIN WIN PRECISION TECHNOLOGY CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	2,089		176,545	3.79		176,545	None
Stock	CENTERA PHOTONICS INC.	-	Financial assets at fair value through profit or loss, noncurrent	1,332		13,321	3.43		13,321	None
Stock	SOLID STATE SYSTEM CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	2,400		48,360	3.21		48,360	None
Stock	TOPOINT TECHNOLOGY CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	4,416		130,276	3.11		130,276	None
Fund	TRANSLINK CAPITAL PARTNERS IV, L.P.	-	Financial assets at fair value through profit or loss, noncurrent	-		228,230	2.96		228,230	None
Stock	BRIGHT SHELAND INTERNATIONAL CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	1,200		37,200	2.87		37,200	None
Stock	TAIWAN SEMICONDUCTOR CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	6,741		630,958	2.56		630,958	None
Stock	CHENFENG OPTRONICS CORP.	-	Financial assets at fair value through profit or loss, noncurrent	2,214		24,955	2.36		24,955	None
Stock	UHT UNITECH COMPANY LTD.	-	Financial assets at fair value through profit or loss, noncurrent	1,500		26,175	2.31		26,175	None
Fund	VERTEX V (C.I.) FUND L.P.	-	Financial assets at fair value through profit or loss, noncurrent	-		169,386	2.07		169,386	None
Stock	TERASILIC CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	600		7,230	2.05		7,230	None
Stock	CHIPBOND TECHNOLOGY CORPORATION	-	Financial assets at fair value through profit or loss, noncurrent	13,989		969,403	1.89		969,403	None

ATTACHMENT 4 (Securities held as of March 31, 2023) (Excluding subsidiaries, associates and joint ventures)
(Amount in thousand; Currency denomination in NTD or in foreign currencies)

FORTUNE VENTURE CAPITAL CORP.

				March 31, 2023
Type of securities	Name of securities	Relationship	Financial statement account	Units (thousand)/ bonds/ shares (thousand)	Carrying amount		Percentage of ownership (%)	Fair value/ Net assets value		Shares as collateral (thousand)
Stock	ACEPODIA, INC.	-	Financial assets at fair value through profit or loss, noncurrent	2,055		$60,981	1.65		$60,981	None
Stock	FORMOSA PHARMACEUTICALS, INC.	-	Financial assets at fair value through profit or loss, noncurrent	1,762		106,953	1.55		106,953	None
Stock	ACER E-ENABLING SERVICE BUSINESS INC.	-	Financial assets at fair value through profit or loss, noncurrent	550		122,375	1.33		122,375	None
Fund	VERTEX VI FUND L.P.	-	Financial assets at fair value through profit or loss, noncurrent	-		48,804	1.30		48,804	None
Stock	ISENTEK INC.	-	Financial assets at fair value through profit or loss, noncurrent	318		38,160	1.22		38,160	None
Stock	CRYSTALWISE TECHNOLOGY INC.	-	Financial assets at fair value through profit or loss, noncurrent	444		5,457	1.01		5,457	None
Stock	YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	2,439		91,219	0.91		91,219	None
Stock	CUBTEK INC.	-	Financial assets at fair value through profit or loss, noncurrent	850		42,245	0.89		42,245	None
Stock	POWERTEC ELECTROCHEMICAL CORP.	-	Financial assets at fair value through profit or loss, noncurrent	9,930		-	0.70		-	None
Stock	PRENETICS GLOBAL LTD.	-	Financial assets at fair value through profit or loss, noncurrent	736		21,472	0.66		21,472	None
Stock	ROARING SUCCESS LTD.	-	Financial assets at fair value through profit or loss, noncurrent	317		3,763	0.64		3,763	None
Stock	CHITEC TECHNOLOGY CORP., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	217		11,801	0.64		11,801	None
Stock	EVERGREEN AVIATION TECHNOLOGIES CORP.	-	Financial assets at fair value through profit or loss, noncurrent	2,192		214,378	0.59		214,378	None
Stock	HYE TECHNOLOGY CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	143		6,063	0.48		6,063	None
Stock	UNICTRON TECHNOLOGIES CORP.	-	Financial assets at fair value through profit or loss, noncurrent	224		18,435	0.47		18,435	None
Stock	AIROHA TECHNOLOGY CORP.	-	Financial assets at fair value through profit or loss, noncurrent	400		269,600	0.27		269,600	None
Stock	CHANG WAH TECHNOLOGY CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	2,179		97,741	0.23		97,741	None
Stock	SOLAR APPLIED MATERIALS TECHNOLOGY CORP.	-	Financial assets at fair value through profit or loss, noncurrent	1,173		42,878	0.20		42,878	None
Stock	WALTOP INTERNATIONAL CORP.	-	Financial assets at fair value through profit or loss, noncurrent	5		-	0.15		-	None
Stock	SHINFOX ENERGY CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	66		5,821	0.03		5,821	None
Stock	FORTEMEDIA, INC.	-	Financial assets at fair value through profit or loss, noncurrent	21		15	0.02		15	None
Stock-Preferred Stock	FORTEMEDIA, INC.	-	Financial assets at fair value through profit or loss, noncurrent	311		1,813	-		1,813	None
Stock-Preferred Stock	FLOADIA CORP.	-	Financial assets at fair value through profit or loss, noncurrent	2		-	-		-	None
Stock-Preferred Stock	EJOULE INTERNATIONAL LIMITED	-	Financial assets at fair value through profit or loss, noncurrent	23,909		155,963	-		155,963	None
Stock-Preferred Stock	BRAVOTEK CORP.	-	Financial assets at fair value through profit or loss, noncurrent	3,050		98,500	-		98,500	None
Stock-Preferred Stock	GEAR RADIO LTD.	-	Financial assets at fair value through profit or loss, noncurrent	3,400		15,799	-		15,799	None

ATTACHMENT 4 (Securities held as of March 31, 2023) (Excluding subsidiaries, associates and joint ventures)
(Amount in thousand; Currency denomination in NTD or in foreign currencies)

FORTUNE VENTURE CAPITAL CORP.

				March 31, 2023
Type of securities	Name of securities	Relationship	Financial statement account	Units (thousand)/ bonds/ shares (thousand)	Carrying amount		Percentage of ownership (%)	Fair value/ Net assets value		Shares as collateral (thousand)
Stock-Preferred Stock	SONATUS, INC.	-	Financial assets at fair value through profit or loss, noncurrent	897		$119,333	-		$119,333	None
Stock-Preferred Stock	HAHOW INC.	-	Financial assets at fair value through profit or loss, noncurrent	151,217		129,579	-		129,579	None
Stock-Preferred Stock	TAISHIN FINANCIAL HOLDING CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	3,305		55,524	-		55,524	None
Convertible bonds	BRIGHT SHELAND INTERNATIONAL CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	170		16,694	-		16,694	None
Convertible bonds	EPISIL-PRECISION INC.	-	Financial assets at fair value through profit or loss, noncurrent	50		4,835	-		4,835	None
Convertible bonds	ELITE MATERIAL CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	300		31,065	-		31,065	None
Convertible bonds	GIANT MANUFACTURING CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	100		9,940	-		9,940	None
Convertible bonds	GENESYS LOGIC, INC.	-	Financial assets at fair value through profit or loss, noncurrent	20		2,260	-		2,260	None
Convertible bonds	CHUNG HWA CHEMICAL INDUSTRIAL WORKS,LTD.	-	Financial assets at fair value through profit or loss, noncurrent	20		2,100	-		2,100	None
Convertible bonds	CHANG WAH ELECTROMATERIALS INC.	-	Financial assets at fair value through profit or loss, noncurrent	120		13,860	-		13,860	None
Stock	SHIN-ETSU HANDOTAI TAIWAN CO., LTD.	-	Financial assets at fair value through other comprehensive income, noncurrent	10,500		554,505	7.00		554,505	None

TLC CAPITAL CO., LTD.

				March 31, 2023
Type of securities	Name of securities	Relationship	Financial statement account	Units (thousand)/ bonds/ shares (thousand)	Carrying amount		Percentage of ownership (%)	Fair value/ Net assets value		Shares as collateral (thousand)
Fund	EVERYI CAPITAL ASIA FUND, L.P.	-	Financial assets at fair value through profit or loss, noncurrent	-		$250,336	18.18		$250,336	None
Stock	BEAUTY ESSENTIALS INTERNATIONAL LTD.	-	Financial assets at fair value through profit or loss, noncurrent	150,500		128,063	13.99		128,063	None
Fund	OAK HILL OPPORTUNITIES FUND, SEGREGATED PORTFOLIO	-	Financial assets at fair value through profit or loss, noncurrent	13		344,637	13.16		344,637	None
Stock	ARTERY TECHNOLOGY CORP.	Associate	Financial assets at fair value through profit or loss, noncurrent	5,112		140,606	9.99		140,606	None
Fund	EVERYI CAPITAL ASIA FUND II, L.P.	-	Financial assets at fair value through profit or loss, noncurrent	-		132,465	7.14		132,465	None
Stock	EVERGLORY RESOURCE TECHNOLOGY CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	1,200		13,068	4.91		13,068	None
Fund	TRANSLINK CAPITAL PARTNERS III, L.P.	-	Financial assets at fair value through profit or loss, noncurrent	-		231,797	4.24		231,797	None
Stock	CHENFENG OPTRONICS CORP.	-	Financial assets at fair value through profit or loss, noncurrent	3,321		37,432	3.53		37,432	None
Stock	WELLYSUN INC.	-	Financial assets at fair value through profit or loss, noncurrent	1,000		13,940	2.20		13,940	None
Stock	ISENTEK INC.	-	Financial assets at fair value through profit or loss, noncurrent	503		60,326	1.93		60,326	None
Stock	ADVANCE MATERIALS CORP.	-	Financial assets at fair value through profit or loss, noncurrent	1,387		10,623	1.18		10,623	None
Stock	PLAYNITRIDE INC.	-	Financial assets at fair value through profit or loss, noncurrent	1,070		107,012	1.00		107,012	None
Stock	SIMPLO TECHNOLOGY CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	1,422		431,012	0.77		431,012	None

ATTACHMENT 4 (Securities held as of March 31, 2023) (Excluding subsidiaries, associates and joint ventures)
(Amount in thousand; Currency denomination in NTD or in foreign currencies)

TLC CAPITAL CO., LTD.

				March 31, 2023
Type of securities	Name of securities	Relationship	Financial statement account	Units (thousand)/ bonds/ shares (thousand)	Carrying amount		Percentage of ownership (%)	Fair value/ Net assets value		Shares as collateral (thousand)
Stock	TXC CORP.	-	Financial assets at fair value through profit or loss, noncurrent	1,978		$176,041	0.64		$176,041	None
Stock	POWTEC ELECTROCHEMICAL CORP.	-	Financial assets at fair value through profit or loss, noncurrent	6,470		-	0.46		-	None
Stock	HANDA PHARMACEUTICALS, INC.	-	Financial assets at fair value through profit or loss, noncurrent	550		108,350	0.42		108,350	None
Stock	YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	600		22,440	0.22		22,440	None
Stock	EVERGREEN STEEL CORP.	-	Financial assets at fair value through profit or loss, noncurrent	536		29,909	0.13		29,909	None
Convertible bonds	ALL COSMOS BIO-TECH HOLDING CORP.	-	Financial assets at fair value through profit or loss, noncurrent	200		20,290	-		20,290	None
Capital-Preferred stock	CHIPBETTER MICROELECTRONICS INC.(formerly GUANGXI CHIPBETTER MICROELECTRONICS INC.)	-	Financial assets at fair value through profit or loss, noncurrent	672		50,065	-		50,065	None
Capital-Preferred stock	CANAANTEK CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	190		50,664	-		50,664	None
Capital-Preferred stock	HEFEI TBSTEST TECHNOLOGIES CO., LTD	-	Financial assets at fair value through profit or loss, noncurrent	168		31,984	-		31,984	None
Capital-Preferred stock	LINSI MICROELECTRONICS (SHENZHEN) CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	459		34,472	-		34,472	None
Capital-Preferred stock	WUHAN JIMU INTELLIGENT TECHNOLOGY CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	41		32,511	-		32,511	None
Capital-Preferred stock	ZHEJIANG SAXUM SEMICONDUCTOR TECHNOLOGY CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	280		34,393	-		34,393	None
Capital-Preferred stock	NINGBO JSAB SEMICONDUCTOR CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	115		38,294	-		38,294	None
Capital-Preferred stock	MZ OPTOELECTRONIC TECHNOLOGY (SHANGHAI) CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	118		26,430	-		26,430	None
Stock-Preferred stock	YOUJIA GROUP LTD.	-	Financial assets at fair value through profit or loss, noncurrent	2,685		813	-		813	None
Stock-Preferred stock	ALO7 LTD.	-	Financial assets at fair value through profit or loss, noncurrent	2,377		-	-		-	None
Stock-Preferred stock	ADWO MEDIA HOLDINGS LTD.	-	Financial assets at fair value through profit or loss, noncurrent	5,332		-	-		-	None
Stock-Preferred stock	IMO, INC.	-	Financial assets at fair value through profit or loss, noncurrent	8,519		-	-		-	None
Stock-Preferred stock	GAME VIDEO LTD.	-	Financial assets at fair value through profit or loss, noncurrent	279		-	-		-	None
Stock-Preferred stock	EJOULE INTERNATIONAL LTD.	-	Financial assets at fair value through profit or loss, noncurrent	50,767		376,474	-		376,474	None
Stock-Preferred stock	TURNING POINT LASERS LTD.	-	Financial assets at fair value through profit or loss, noncurrent	2,000		60,780	-		60,780	None
Stock-Preferred stock	SILC TECHNOLOGIES, INC.	-	Financial assets at fair value through profit or loss, noncurrent	2,393		67,831	-		67,831	None
Stock-Preferred stock	SINO APPLIED TECHNOLOGY CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	855		13,675	-		13,675	None
Stock-Preferred stock	RAMON SPACE LTD.	-	Financial assets at fair value through profit or loss, noncurrent	249		49,132	-		49,132	None
Stock-Preferred stock	XMEMS LABS, INC.	-	Financial assets at fair value through profit or loss, noncurrent	4,494		120,019	-		120,019	None
Simple Agreement for Future Equity	RAMON SPACE LTD.	-	Financial assets at fair value through profit or loss, noncurrent	-		60,780	-		60,780	None

ATTACHMENT 4 (Securities held as of March 31, 2023) (Excluding subsidiaries, associates and joint ventures)
(Amount in thousand; Currency denomination in NTD or in foreign currencies)

UMC CAPITAL CORP.

				March 31, 2023
Type of securities	Name of securities	Relationship	Financial statement account	Units (thousand)/ bonds/ shares (thousand)	Carrying amount		Percentage of ownership (%)	Fair value/ Net assets value		Shares as collateral (thousand)
Convertible bonds	CLOUDWORDS, INC.	-	Financial assets at fair value through profit or loss, current	-	USD	190	-	USD	190	None
Capital	TRANSLINK MANAGEMENT III, L.L.C.	-	Financial assets at fair value through profit or loss, noncurrent	-	USD	2,682	14.33	USD	2,682	None
Fund	TRANSLINK CAPITAL PARTNERS III, L.P.	-	Financial assets at fair value through profit or loss, noncurrent	-	USD	20,622	11.47	USD	20,622	None
Fund	TRANSLINK CAPITAL PARTNERS IV, L.P.	-	Financial assets at fair value through profit or loss, noncurrent	-	USD	22,530	8.87	USD	22,530	None
Stock	OCTTASIA INVESTMENT HOLDING INC.	-	Financial assets at fair value through profit or loss, noncurrent	5,594	USD	14,041	7.76	USD	14,041	None
Fund	TRANSLINK CAPITAL PARTNERS V, L.P.	-	Financial assets at fair value through profit or loss, noncurrent	-	USD	2,798	6.44	USD	2,798	None
Stock	ALL-STARS SP IV LTD.	-	Financial assets at fair value through profit or loss, noncurrent	7	USD	6,768	5.03	USD	6,768	None
Fund	TRANSLINK CAPITAL PARTNERS II, L.P.	-	Financial assets at fair value through profit or loss, noncurrent	-	USD	4,292	4.53	USD	4,292	None
Stock	CNEX LABS, INC.	-	Financial assets at fair value through profit or loss, noncurrent	454		-	4.43		-	None
Fund	GROVE VENTURES II, L.P.	-	Financial assets at fair value through profit or loss, noncurrent	-	USD	2,770	3.25	USD	2,770	None
Fund	GROVE VENTURES III, L.P.	-	Financial assets at fair value through profit or loss, noncurrent	-	USD	704	2.19	USD	704	None
Fund	SIERRA VENTURES XI, L.P.	-	Financial assets at fair value through profit or loss, noncurrent	-	USD	16,430	1.76	USD	16,430	None
Fund	STORM VENTURES FUND V, L.P.	-	Financial assets at fair value through profit or loss, noncurrent	-	USD	10,527	1.69	USD	10,527	None
Stock	ACHIEVE MADE INTERNATIONAL LTD.	-	Financial assets at fair value through profit or loss, noncurrent	237	USD	18	1.39	USD	18	None
Fund	SIERRA VENTURES XII, L.P.	-	Financial assets at fair value through profit or loss, noncurrent	-	USD	3,329	1.38	USD	3,329	None
Stock	NEUROBLADE LTD.	-	Financial assets at fair value through profit or loss, noncurrent	374	USD	911	0.91	USD	911	None
Stock	APPIER GROUP INC.	-	Financial assets at fair value through profit or loss, noncurrent	320	USD	4,009	0.32	USD	4,009	None
Stock-Preferred stock	ACHIEVE MADE INTERNATIONAL LTD.	-	Financial assets at fair value through profit or loss, noncurrent	2,644	USD	1,004	-	USD	1,004	None
Stock-Preferred stock	GLYMPSE, INC.	-	Financial assets at fair value through profit or loss, noncurrent	1,349		-	-		-	None
Stock-Preferred stock	ATSCALE, INC.	-	Financial assets at fair value through profit or loss, noncurrent	8,520	USD	5,291	-	USD	5,291	None
Stock-Preferred stock	SENSIFREE LTD.	-	Financial assets at fair value through profit or loss, noncurrent	614		-	-		-	None
Stock-Preferred stock	DCARD HOLDINGS LTD.	-	Financial assets at fair value through profit or loss, noncurrent	30,075	USD	6,081	-	USD	6,081	None
Stock-Preferred stock	GCT SEMICONDUCTOR, INC.	-	Financial assets at fair value through profit or loss, noncurrent	175	USD	2	-	USD	2	None
Stock-Preferred stock	FORTEMEDIA, INC.	-	Financial assets at fair value through profit or loss, noncurrent	12,241	USD	5,593	-	USD	5,593	None
Stock-Preferred stock	SIFOTONICS TECHNOLOGIES CO., LTD.	-	Financial assets at fair value through profit or loss, noncurrent	3,500	USD	1,809	-	USD	1,809	None
Stock-Preferred stock	NEVO ENERGY, INC.	-	Financial assets at fair value through profit or loss, noncurrent	4,980		-	-		-	None
Stock-Preferred stock	NEXENTA SYSTEMS, INC.	-	Financial assets at fair value through profit or loss, noncurrent	6,555		-	-		-	None

ATTACHMENT 4 (Securities held as of March 31, 2023) (Excluding subsidiaries, associates and joint ventures)
(Amount in thousand; Currency denomination in NTD or in foreign currencies)

UMC CAPITAL CORP.

				March 31, 2023
Type of securities	Name of securities	Relationship	Financial statement account	Units (thousand)/ bonds/ shares (thousand)	Carrying amount		Percentage of ownership (%)	Fair value/ Net assets value		Shares as collateral (thousand)
Stock-Preferred stock	CLOUDWORDS, INC.	-	Financial assets at fair value through profit or loss, noncurrent	9,461	USD	3,777	-	USD	3,777	None
Stock-Preferred stock	EAST VISION TECHNOLOGY LTD.	-	Financial assets at fair value through profit or loss, noncurrent	2,770		-	-		-	None
Stock-Preferred stock	BLUESPACE.AI, INC.	-	Financial assets at fair value through profit or loss, noncurrent	533	USD	1,902	-	USD	1,902	None
Stock-Preferred stock	REED SEMICONDUCTOR CORP.	-	Financial assets at fair value through profit or loss, noncurrent	3,864	USD	1,501	-	USD	1,501	None
Stock-Preferred stock	A.A.A TARANIS VISUAL LTD.	-	Financial assets at fair value through profit or loss, noncurrent	490	USD	5,584	-	USD	5,584	None
Stock-Preferred stock	NEUROBLADE LTD.	-	Financial assets at fair value through profit or loss, noncurrent	333	USD	1,693	-	USD	1,693	None
Stock-Preferred stock	HYPERLIGHT CORP.	-	Financial assets at fair value through profit or loss, noncurrent	249	USD	1,809	-	USD	1,809	None
Stock-Preferred stock	AMMAX BIO, INC.	-	Financial assets at fair value through profit or loss, noncurrent	493	USD	1,275	-	USD	1,275	None
Stock-Preferred stock	CLEARMIND BIOMEDICAL, INC.	-	Financial assets at fair value through profit or loss, noncurrent	400	USD	1,000	-	USD	1,000	None
Convertible bonds	GLYMPSE, INC.	-	Financial assets at fair value through profit or loss, noncurrent	-		-	-		-	None
Simple Agreement for Future Equity	DREAMBIG SEMICONDUCTOR INC.	-	Financial assets at fair value through profit or loss, noncurrent	-	USD	3,000	-	USD	3,000	None

TERA ENERGY DEVELOPMENT CO., LTD.

March 31, 2023

Type of securities

Name of securities

Relationship

Financial statement account

Units (thousand)/ bonds/ shares (thousand)

Carrying amount

Percentage of ownership (%)

Fair value/ Net assets value

Shares as collateral (thousand)

Stock

TIAN TAI PHOTOELECTRICITY CO., LTD.

Financial assets at fair value through profit or loss, noncurrent

357

$6,519

1.18

$6,519

None

SINO PARAGON LIMITED

March 31, 2023

Type of securities

Name of securities

Relationship

Financial statement account

Units (thousand)/ bonds/ shares (thousand)

Carrying amount

Percentage of ownership (%)

Fair value/ Net assets value

Shares as collateral (thousand)

Fund

SPARKLABS GLOBAL VENTURES FUND I, L.P.

Financial assets at fair value through profit or loss, noncurrent

$81,235

11.13

$81,235

None

Fund

SPARKLABS KOREA FUND II, L.P.

Financial assets at fair value through profit or loss, noncurrent

41,935

5.00

41,935

None

ATTACHMENT 5 (Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20 percent of the capital stock for the three-month period ended March 31, 2023)

(Amount in thousand; Currency denomination in NTD or in foreign currencies)

Type of securities

Name of the securities

Financial statement account

Counter-party

Relationship

Beginning balance

Addition

Disposal

Ending balance

Units (thousand)/ bonds/shares (thousand)

Amount

Units (thousand)/ bonds/shares (thousand)

Amount

Units (thousand)/ bonds/shares (thousand)

Amount

Cost

Gain (Loss)
from disposal

Units (thousand)/ bonds/shares (thousand)

Amount

None

ATTACHMENT 6 (Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20 percent of the capital stock for the three-month period ended March 31, 2023)

(Amount in thousand; Currency denomination in NTD or in foreign currencies)

UNITED MICROELECTRONICS CORPORATION

Where counter-party is a related party, details of prior transactions

Name of properties

Transaction date

Transaction amount

Payment status

Counter-party

Relationship

Former holder of property

Relationship between former holder and acquirer of property

Date of transaction

Transaction amount

Price reference

Date of acquisition and status of utilization

Other commitments

Fab

2023.01.01 - 2023.03.20

$915,920

By the construction progress

GANG-WEI CONSTRUCTION CO., LTD.

Third party

N/A

Negotiation

Manufacturing
purpose

None

Fab

2023.03.29 - 2023.03.30

1,395,334

By the construction progress

L&K ENGINEERING CO., LTD. (SINGAPORE BRANCH)

Third party

N/A

Negotiation

Manufacturing
purpose

None

ATTACHMENT 7 (Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20 percent of the capital stock for the three-month period ended March 31, 2023)

(Amount in thousand; Currency denomination in NTD or in foreign currencies)

Names of properties

Transaction date

Date of original acquisition

Carrying amount

Transaction amount

Status of proceeds collection

Gain (Loss) from disposal

Counter-party

Relationship

Reason of disposal

Price reference

Other commitments

None

ATTACHMENT 8 ( Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million or 20 percent of capital stock for the three-month period ended March 31, 2023)

(Amount in thousand; Currency denomination in NTD or in foreign currencies)

UNITED MICROELECTRONICS CORPORATION

Transactions

Details of non-arm's length transaction

Notes and accounts receivable (payable)

Note

Counter-party

Relationship

Purchases (Sales)

Amount

Percentage of total purchases (sales)

Term

Unit price

Term

Balance

Percentage of total receivables (payable)

UMC GROUP (USA)

Subsidiary

Sales

$16,410,042

Net 60 days

N/A

$6,546,699

FARADAY TECHNOLOGY CORPORATION

Associate

Sales

316,861

Month-end 60 days

N/A

204,273

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

Subsidiary

Sales

278,810

Net 30 days

N/A

9,234

UNITEDDS SEMICONDUCTOR (SHANDONG) CO., LTD.

Subsidiary

Sales

124,764

Net 30 days

N/A

6,207

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

Subsidiary

Purchases

122,892

Net 30 days or 45 days

N/A

34,109

UMC GROUP (USA)

Transactions

Details of non-arm's length transaction

Notes and accounts receivable (payable)

Note

Counter-party

Relationship

Purchases (Sales)

Amount

Percentage of total purchases (sales)

Term

Unit price

Term

Balance

Percentage of total receivables (payable)

UNITED MICROELECTRONICS CORPORATION

Parent company

Purchases

USD

530,848

Net 60 days

N/A

USD

215,724

UNITED SEMICONDUCTOR JAPAN CO., LTD.

Associate

Purchases

USD

44,207

Net 60 days

N/A

USD

26,069

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

Associate

Purchases

USD

15,794

Net 60 days

N/A

USD

9,654

HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.

Associate

Purchases

USD

4,541

Net 60 days

N/A

USD

3,425

WAVETEK MICROELECTRONICS CORPORATION

Associate

Purchases

USD

3,759

Net 60 days

N/A

USD

2,659

UNITED SEMICONDUCTOR JAPAN CO., LTD.

Transactions

Details of non-arm's length transaction

Notes and accounts receivable (payable)

Note

Counter-party

Relationship

Purchases (Sales)

Amount

Percentage of total purchases (sales)

Term

Unit price

Term

Balance

Percentage of total receivables (payable)

UMC GROUP (USA)

Associate

Sales

JPY

6,108,171

Net 60 days

N/A

JPY

3,481,319

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

Transactions

Details of non-arm's length transaction

Notes and accounts receivable (payable)

Note

Counter-party

Relationship

Purchases (Sales)

Amount

Percentage of total purchases (sales)

Term

Unit price

Term

Balance

Percentage of total receivables (payable)

UMC GROUP (USA)

Associate

Sales

RMB

109,632

Net 60 days

N/A

RMB

66,307

FARADAY TECHNOLOGY CORPORATION

Associate

Sales

RMB

54,458

Month-end 60 days

N/A

RMB

41,084

UNITED MICROELECTRONICS CORPORATION

The ultimate parent of the Company

Sales

RMB

27,422

Net 30 days or 45 days

N/A

RMB

25,894

ATTACHMENT 8 ( Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million or 20 percent of capital stock for the three-month period ended March 31, 2023)

(Amount in thousand; Currency denomination in NTD or in foreign currencies)

WAVETEK MICROELECTRONICS CORPORATION

Transactions

Details of non-arm's length transaction

Notes and accounts receivable (payable)

Note

Counter-party

Relationship

Purchases (Sales)

Amount

Percentage of total purchases (sales)

Term

Unit price

Term

Balance

Percentage of total receivables (payable)

UMC GROUP (USA)

Associate

Sales

$118,632

Net 60 days

N/A

$80,821

HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.

Transactions

Details of non-arm's length transaction

Notes and accounts receivable (payable)

Note

Counter-party

Relationship

Purchases (Sales)

Amount

Percentage of total purchases (sales)

Term

Unit price

Term

Balance

Percentage of total receivables (payable)

UMC GROUP (USA)

Associate

Sales

RMB

33,091

Net 60 days

N/A

RMB

23,537

ATTACHMENT 9 (Receivables from related parties with amounts exceeding the lower of NT$100 million or 20 percent of capital stock as of March 31, 2023)
(Amount in thousand; Currency denomination in NTD or in foreign currencies)

UNITED MICROELECTRONICS CORPORATION

		Ending balance						Turnover rate (times)	Overdue receivables		Amount received in subsequent period		Loss allowance
		Ending balance							Overdue receivables
Counter-party	Relationship	Notes receivable	Accounts receivable		Other receivables	Total			Amount	Collection status
UMC GROUP (USA)	Subsidiary	$-		$6,546,699	$9		$6,546,708	8.18	$-	-		$4,231,496		$9,163
FARADAY TECHNOLOGY CORPORATION	Associate	-		204,273	-		204,273	5.39	-	-		30,173		168

UNITED SEMICONDUCTOR JAPAN CO., LTD.

Ending balance

Turnover rate (times)

Overdue receivables

Amount received in subsequent period

Loss allowance

Counter-party

Relationship

Notes receivable

Accounts
receivable

Other
receivables

Total

Amount

Collection status

UMC GROUP (USA)

Associate

JPY

3,481,319

JPY

3,481,319

7.28

JPY

1,757,047

JPY

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

Ending balance

Turnover rate (times)

Overdue receivables

Amount received in subsequent period

Loss allowance

Counter-party

Relationship

Notes receivable

Accounts
receivable

Other
receivables

Total

Amount

Collection status

UMC GROUP (USA)

Associate

RMB

66,307

RMB

66,307

6.40

RMB

30,574

RMB

FARADAY TECHNOLOGY CORPORATION

Associate

RMB

41,084

RMB

41,084

5.42

RMB

20,067

RMB

UNITED MICROELECTRONICS CORPORATION

Parent company

RMB

25,894

RMB

25,894

8.46

RMB

22,070

RMB

HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.

Ending balance

Turnover rate (times)

Overdue receivables

Amount received in subsequent period

Loss allowance

Counter-party

Relationship

Notes receivable

Accounts
receivable

Other
receivables

Total

Amount

Collection status

UMC GROUP (USA)

Associate

RMB

23,537

RMB

23,537

4.63

RMB

686

Collection in subsequent period

RMB

12,248

RMB

ATTACHMENT 10 (Names, locations and related information of investee companies as of March 31, 2023) (Not including investment in Mainland China)
(Amount in thousand; Currency denomination in NTD or in foreign currencies)

UNITED MICROELECTRONICS CORPORATION
Investee company	Address	Main businesses and products	Initial Investment				Investment as of March 31, 2023				Net income (loss) of investee company		Investment income (loss) recognized		Note
			Ending balance		Beginning balance		Number of shares (thousand)	Percentage of ownership (%)	Carrying amount
			Ending balance		Beginning balance		Number of shares (thousand)	Percentage of ownership (%)	Carrying amount
UMC GROUP (USA)	USA	IC Sales	USD	16,438	USD	16,438	16,438	100.00		$1,888,711		$(122,403)		$(122,403)
UNITED MICROELECTRONICS (EUROPE) B.V.	The Netherlands	Marketing support activities	USD	5,421	USD	5,421	9	100.00		151,685		1,314		1,314
UMC CAPITAL CORP.	Cayman Islands	Investment holding	USD	81,500	USD	81,500	71,663	100.00		5,272,402		109,958		109,958
GREEN EARTH LIMITED	Samoa	Investment holding	USD	977,000	USD	977,000	977,000	100.00		13,411,386		293,858		293,858
TLC CAPITAL CO., LTD.	Taipei City, Taiwan	Venture capital		4,610,000		4,610,000	433,942	100.00		4,830,488		(124,684)		(124,684)
UMC INVESTMENT (SAMOA) LIMITED	Samoa	Investment holding	USD	1,520	USD	1,520	1,520	100.00		42,910		15		15
FORTUNE VENTURE CAPITAL CORP.	Taipei City, Taiwan	Consulting and planning for venture capital		3,440,053		3,440,053	607,485	100.00		7,204,126		686,964		686,964
UMC KOREA CO., LTD.	Korea	Marketing support activities	KRW	550,000	KRW	550,000	110	100.00		22,179		(425)		(425)
OMNI GLOBAL LIMITED	Samoa	Investment holding	USD	4,300	USD	4,300	4,300	100.00		759,332		15,822		15,822
SINO PARAGON LIMITED	Samoa	Investment holding	USD	2,600	USD	2,600	2,600	100.00		125,941		(1,077)		(1,077)
BEST ELITE INTERNATIONAL LIMITED	British Virgin Islands	Investment holding	USD	309,102	USD	309,102	664,966	100.00		32,304,213		967,192		967,192
UNITED SEMICONDUCTOR JAPAN CO., LTD.	Japan	Sales and manufacturing of integrated circuits	JPY	64,421,068	JPY	64,421,068	116,247	100.00		25,467,229		1,061,275		1,061,275
WAVETEK MICROELECTRONICS CORPORATION	Hsinchu County, Taiwan	Sales and manufacturing of integrated circuits		1,903,741		1,903,741	148,112	79.49		1,285,887		(1,765)		(1,403)
MTIC HOLDINGS PTE. LTD.	Singapore	Investment holding	SGD	12,000	SGD	12,000	12,000	45.44		-		(2,493)		-
UNITECH CAPITAL INC.	British Virgin Islands	Investment holding	USD	21,000	USD	21,000	21,000	42.00		497,554		178,770		75,084
TRIKNIGHT CAPITAL CORPORATION	Taipei City, Taiwan	Investment holding		2,342,800		2,342,800	326,734	40.00		2,469,068		878,475		351,390
HSUN CHIEH INVESTMENT CO., LTD.	Taipei City, Taiwan	Investment holding		336,241		336,241	1,201,774	36.49		11,792,719		6,093,296		2,223,321
YANN YUAN INVESTMENT CO., LTD.	Taipei City, Taiwan	Investment holding		2,300,000		2,300,000	138,000	26.78		8,519,688		(39,953)		(10,698)
FARADAY TECHNOLOGY CORPORATION	Hsinchu City, Taiwan	Design of application-specific integrated circuit		38,918		38,918	34,240	13.78		2,005,744		499,985		68,878
UNIMICRON TECHNOLOGY CORP.	Taoyuan City, Taiwan	Manufacturing of PCB		2,775,835		2,438,565	198,878	13.06		14,457,514		3,764,007		491,665

ATTACHMENT 10 (Names, locations and related information of investee companies as of March 31, 2023) (Not including investment in Mainland China)
(Amount in thousand; Currency denomination in NTD or in foreign currencies)

FORTUNE VENTURE CAPITAL CORP.
Investee company	Address	Main businesses and products	Initial Investment				Investment as of March 31, 2023				Net income (loss) of investee company		Investment income (loss) recognized		Note
			Ending balance		Beginning balance		Number of shares (thousand)	Percentage of ownership (%)	Carrying amount
			Ending balance		Beginning balance		Number of shares (thousand)	Percentage of ownership (%)	Carrying amount
TERA ENERGY DEVELOPMENT CO., LTD.	Hsinchu City, Taiwan	Energy Technical Services		$100,752		$100,752	7,800	100.00		$101,961		$1,291		$1,291
PURIUMFIL INC.	Hsinchu City, Taiwan	Chemicals and filtration products & Microcontamination control service		10,000		10,000	1,000	40.00		14,925		213		85
UNITED LED CORPORATION HONG KONG LIMITED	Hongkong	Investment holding	USD	22,500	USD	22,500	22,500	25.14		95,949		2,700		(1,707)
WAVETEK MICROELECTRONICS CORPORATION	Hsinchu County, Taiwan	Sales and manufacturing of integrated circuits		8,856		8,856	1,194	0.64		11,091		(1,765)		(11)
UNIMICRON TECHNOLOGY CORP.	Taoyuan City, Taiwan	Manufacturing of PCB		-		-	-	-		-		3,764,007		4,096

TLC CAPITAL CO., LTD.

Investee company

Address

Main businesses and products

Initial Investment

Investment as of March 31, 2023

Net income (loss) of investee company

Investment income (loss) recognized

Note

Ending balance

Beginning balance

Number of shares (thousand)

Percentage of ownership
(%)

Carrying amount

SOARING CAPITAL CORP.

Samoa

Investment holding

USD

900

USD

900

100.00

$10,913

$1,151

HSUN CHIEH CAPITAL CORP.

Samoa

Investment holding

USD

8,000

USD

8,000

40.00

234,758

64,130

25,652

VSENSE CO., LTD.

Taipei City, Taiwan

Medical devices, measuring equipment, reagents and consumables

95,916

4,251

23.98

(4,144)

UMC CAPITAL CORP.

Investee company

Address

Main businesses and products

Initial Investment

Investment as of March 31, 2023

Net income (loss) of investee company

Investment income (loss) recognized

Note

Ending balance

Beginning balance

Number of shares (thousand)

Percentage of ownership
(%)

Carrying amount

TRANSLINK CAPITAL PARTNERS I, L.P.

Cayman Islands

Investment holding

USD

3,853

USD

3,873

10.38

USD

2,172

USD

8,022

USD

668

TERA ENERGY DEVELOPMENT CO., LTD.

Investee company

Address

Main businesses and products

Initial Investment

Investment as of March 31, 2023

Net income (loss) of investee company

Investment income (loss) recognized

Note

Ending balance

Beginning balance

Number of shares (thousand)

Percentage of ownership
(%)

Carrying amount

EVERRICH ENERGY INVESTMENT (HK) LIMITED

Hongkong

Investment holding

USD

750

USD

750

100.00

$47,212

$696

WAVETEK MICROELECTRONICS CORPORATION

Investee company

Address

Main businesses and products

Initial Investment

Investment as of March 31, 2023

Net income (loss) of investee company

Investment income (loss) recognized

Note

Ending balance

Beginning balance

Number of shares (thousand)

Percentage of ownership
(%)

Carrying amount

WAVETEK MICROELECTRONICS INVESTMENT (SAMOA) LIMITED

Samoa

Investment holding

USD

1,650

USD

1,650

100.00

$2,936

$(7)

ATTACHMENT 10 (Names, locations and related information of investee companies as of March 31, 2023) (Not including investment in Mainland China)

(Amount in thousand; Currency denomination in NTD or in foreign currencies)

WAVETEK MICROELECTRONICS INVESTMENT (SAMOA) LIMITED

Investee company

Address

Main businesses and products

Initial Investment

Investment as of March 31, 2023

Net income (loss) of investee company

Investment income (loss) recognized

Note

Ending balance

Beginning balance

Number of shares (thousand)

Percentage of ownership
(%)

Carrying amount

WAVETEK MICROELECTRONICS CORPORATION (USA)

USA

Marketing service

USD

100.00

$2,900

$(7)

BEST ELITE INTERNATIONAL LIMITED

Investee company

Address

Main businesses and products

Initial Investment

Investment as of March 31, 2023

Net income (loss) of investee company

Investment income (loss) recognized

Note

Ending balance

Beginning balance

Number of shares (thousand)

Percentage of ownership
(%)

Carrying amount

INFOSHINE TECHNOLOGY LIMITED

British Virgin Islands

Investment holding

USD

354,000

USD

354,000

100.00

$32,341,253

$969,017

INFOSHINE TECHNOLOGY LIMITED

Investee company

Address

Main businesses and products

Initial Investment

Investment as of March 31, 2023

Net income (loss) of investee company

Investment income (loss) recognized

Note

Ending balance

Beginning balance

Number of shares (thousand)

Percentage of ownership
(%)

Carrying amount

OAKWOOD ASSOCIATES LIMITED

British Virgin Islands

Investment holding

USD

354,000

USD

354,000

100.00

$32,341,253

$969,017

OMNI GLOBAL LIMITED

Investee company

Address

Main businesses and products

Initial Investment

Investment as of March 31, 2023

Net income (loss) of investee company

Investment income (loss) recognized

Note

Ending balance

Beginning balance

Number of shares (thousand)

Percentage of ownership
(%)

Carrying amount

UNITED MICROTECHNOLOGY CORPORATION (CALIFORNIA)

USA

Research & Development

USD

1,000

USD

1,000

100.00

$40,672

$266

ECP VITA PTE. LTD.

Singapore

Insurance

USD

9,000

USD

9,000

100.00

700,806

15,708

GREEN EARTH LIMITED

Investee company

Address

Main businesses and products

Initial Investment

Investment as of March 31, 2023

Net income (loss) of investee company

Investment income (loss) recognized

Note

Ending balance

Beginning balance

Number of shares (thousand)

Percentage of ownership
(%)

Carrying amount

UNITED MICROCHIP CORPORATION

Cayman Islands

Investment holding

USD

974,050

USD

974,050

100.00

$13,383,982

$293,832

ATTACHMENT 11 (Investment in Mainland China as of March 31, 2023)

(Amount in thousand; Currency denomination in NTD or in foreign currencies)

Investee company

Main businesses and products

Total amount of
paid-in capital

Method of investment
(Note 1)

Accumulated
outflow of
investment from
Taiwan as of
January 1, 2023

Investment flows

Accumulated outflow of investment from Taiwan as of
March 31, 2023

Percentage of ownership

Investment income (loss) recognized
(Note 2)

Carrying amount
as of
March 31, 2023

Accumulated inward remittance of earnings as of
March 31, 2023

Outflow

Inflow

Net income (loss) of investee company

UNITRUTH ADVISOR (SHANGHAI) CO., LTD.

Investment Holding and advisory

(USD

$24,312
800)

(ii)SOARING CAPITAL CORP.

(USD

$24,312
800)

(USD

$24,312
800)

$1,152

100.00%

$1,152
(iii)

$10,811

EVERRICH (SHANDONG) ENERGY CO., LTD.

Solar engineering integrated design services

(USD

22,793
750)

(ii)EVERRICH ENERGY INVESTMENT (HK) LIMITED

(USD

22,793
750)

(USD

22,793
750)

697

100.00%

697
(iii)

46,846

(USD

133,473
4,392)

UNITED LED CORPORATION

Research, manufacturing and sales in LED epitaxial wafers

(USD

2,552,760
84,000)

(ii)UNITED LED CORPORATION HONG KONG LIMITED

(USD

615,397
20,250)

(USD

615,397
20,250)

(RMB

2,700
613)

25.14%

(RMB

678
154)
(ii)

(RMB

95,113
21,592)

HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.

Sales and manufacturing of integrated circuits

(RMB

13,855,020
3,145,294)

(ii)OAKWOOD ASSOCIATES LIMITED

(USD

9,393,610
309,102)

(USD

9,393,610
309,102)

(RMB

960,594
218,069)

99.9985%
(Note 4)

(RMB

960,581
218,066)
(ii)

(RMB

31,570,300
7,166,924)

UNITEDDS SEMICONDUCTOR (SHANDONG) CO., LTD.

Design support of integrated circuits

(RMB

132,150
30,000)

(iii)HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.

(RMB

50,477
11,459)

99.9985%

(RMB

50,477
11,459)
(iii)

(RMB

845,214
191,876)

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

Sales and manufacturing of integrated circuits

(RMB

71,351,283
16,197,794)

(ii)UNITED MICROCHIP CORPORATION and (iii)HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.

(USD

29,325,317
964,966)
(Note 5)

(USD

29,325,317
964,966)
(Note 5)

(RMB

717,077
162,787)

72.73%

(RMB

516,852
117,333)
(ii)

(RMB

24,148,483
5,482,062)

Accumulated investment in Mainland China as of
March 31, 2023

Investment amounts authorized by Investment Commission, MOEA

Upper limit on investment

$39,381,429
(USD 1,295,868)

$88,474,802
(USD 2,911,313)

$213,123,382


Note 1 :	The methods for engaging in investment in Mainland China include the following:
	(i) Direct investment in Mainland China.
	(ii) Indirectly investment in Mainland China through companies registered in a third region (Please specify the name of the company in third region).
	(iii) Other methods.
Note 2 :	The investment income (loss) recognized in current period, the investment income (loss) were determined based on the following basis:
	(i) The financial statements were reviewed by an international certified public accounting firm in cooperation with an R.O.C. accounting firm.
	(ii) The financial statements were reviewed by the auditors of the parent company.
	(iii) Others.
Note 3 :	Initial investment amounts denominated in foreign currencies are translated into New Taiwan Dollars using the spot rates at the financial report date.
Note 4 :	The Company indirectly invested in HEJIAN TECHNOLOGY (SUZHOU) CO., LTD. via investment in BEST ELITE INTERNATIONAL LIMITED, an equity investee. The investment has been approved by the Investment Commission, MOEA
	in the total amount of USD 383,569 thousand. As of March 31, 2023, the amount of investment has been all remitted.
Note 5 :	The investment to UNITED SEMICONDUCTOR (XIAMEN) CO., LTD. (USCXM) from HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.and indirectly invested in USCXM via investment in GREEN EARTH LIMITED.
	The consent to invest in USCXM's investment has been approved by the Investment Commission, MOEA in the total amount of USD 2,505,944 thousand. As of March 31, 2023, the amount of investment USD 783,595 thousand has not yet been remitted.

ATTACHMENT 12 (Information of major shareholders as of March 31, 2023)


UNITED MICROELECTRONICS CORPORATION
Name	Number of shares	Percentage of ownership (%)
JPMorgan Chase Bank, N.A. acting in its capacity as depositary and representative to the holders of ADRs	671,674,630	5.37