Significant Related Party Transactions

12 Months Ended

Dec. 31, 2020

Disclosure Of Transactions Between Related Parties [Abstract]

Significant Related Party Transactions

7. SIGNIFICANT RELATED PARTY TRANSACTIONS

a. Significant intercompany transactions between consolidated entities were as follows:

For the year ended December 31, 2018

		Transactions (Note A)
Entity	Counterparty	Account	Amount		Terms (Note B)
			NT$
			(In Thousands)
UMC	UMC-USA	Sales	$	57,107,585	Net 60 days
UMC	UMC-USA	Accounts receivable		7,312,272	—
UMC	UMC GROUP JAPAN	Sales		4,159,637	Net 60 days
UMC	UMC GROUP JAPAN	Accounts receivable		905,048	—
UMC	USCXM	Sales	1,356,567 (Note C )		Net 30 days
UMC	USCXM	Accounts receivable		48,163	—
USCXM	UMC-USA	Sales		698,988	Net 60 days
USCXM	UMC-USA	Accounts receivable		120,678	—
HJ	UMC-USA	Sales		307,471	Net 60 days
HJ	UMC-USA	Accounts receivable		35,161	—
HJ	UMC GROUP JAPAN	Sales		272,218	Net 60 days
HJ	UMC GROUP JAPAN	Accounts receivable		61,971	—

For the year ended December 31, 2019

		Transactions (Note A)
Entity	Counterparty	Account	Amount		Terms (Note B)
			NT$
			(In Thousands)
UMC	UMC-USA	Sales	$	47,736,335	Net 60 days
UMC	UMC-USA	Accounts receivable		5,937,706		—
UMC	UMC GROUP JAPAN	Sales		3,933,964	Net 60 days
UMC	UMC GROUP JAPAN	Accounts receivable		608,622		—
UMC	USCXM	Sales	1,209,310 (Note C)		Net 30 days
UMC	USCXM	Accounts receivable		31,334		—
UMC	USCXM	Loan receivable		1,201,200		—
USCXM	UMC-USA	Sales		745,226	Net 60 days
USCXM	UMC-USA	Accounts receivable		33,242		—
HJ	UMC-USA	Sales		152,012	Net 60 days
HJ	UMC-USA	Accounts receivable		21,138		—
HJ	UMC GROUP JAPAN	Sales		250,736	Net 60 days
HJ	UMC GROUP JAPAN	Accounts receivable		51,150		—

For the year ended December 31, 2020

		Transactions (Note A)
Entity	Counterparty	Account	Amount		Terms (Note B)
			NT$
			(In Thousands)
UMC	UMC-USA	Sales	$	49,357,981	Net 60 days
UMC	UMC-USA	Accounts receivable		5,388,172		—
UMC	UMC GROUP JAPAN	Sales		1,220,419	Net 60 days
UMC	USCXM	Sales	1,183,180		Net 30 days
			(Note C)
UMC	USCXM	Accounts receivable		24,831		—
USCXM	UMC-USA	Sales		970,358	Net 60 days
USCXM	UMC-USA	Accounts receivable		250,092		—
HJ	UMC-USA	Sales		137,860	Net 60 days
HJ	UMC-USA	Accounts receivable		33,069		—
HJ	UMC GROUP JAPAN	Sales		106,077	Net 60 days
USJC	UMC-USA	Sales		1,395,094	Net 60 days
USJC	UMC-USA	Accounts receivable		456,860		—

Note A: The significant intercompany transactions listed above include downstream transactions.

Note B: The sales price to the above related parties was determined through mutual agreement in reference to market conditions.

Note C: UMC authorized technology licenses to its subsidiary, USCXM, in the amount of US$0.35 billion, which was recognized as deferred revenue to be realized over time.

b. Significant transactions between the Company and other related parties were as follows:

(i) Name and Relationship of Related Parties

Name of related parties	Relationship with the Company
FARADAY TECHNOLOGY CORP. and its Subsidiaries	Associate
HSUN CHIEH INVESTMENT CO., LTD.	Associate
HSUN CHIEN CAPITAL CORP.	Associate
TRIKNIGHT CAPITAL CORPORATION	Associate
UNIMICRON TECHNOLOGY CORP.	Associate
JINING SUNRICH SOLARENERGY CORPORATION	Joint venture’s subsidiary
SILICON INTEGRATED SYSTEMS CORP.	The Company’s director
PHOTRONICS DNP MASK CORPORATION	Other related parties
UNITEDVISION SEMICONDUCTOR CO., LTD.	Other related parties
UPI SEMICONDUCTOR CORP.	Other related parties
UNISTARS CORPORATION	Other related parties
CHUAN-FANG ZHUAN	Subsidiary’s director

(ii) Operating revenues

	For the years ended December 31,
	2018		2019		2020
	NT$		NT$		NT$
	(In Thousands)		(In Thousands)		(In Thousands)
Associates	$	1,291,398	$	1,532,339	$	2,085,425
Joint ventures		4,277		—		—
Others		27,881		45,523		26,856
Total	$	1,323,556	$	1,577,862	$	2,112,281

(iii) Accounts receivable, net

	As of December 31,
	2019		2020
	NT$		NT$
	(In Thousands)		(In Thousands)
Associates	$	278,702	$	172,808
Others		11,243		6,110
Total	$	289,945	$	178,918

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

(iv) Refund liabilities (classified under other current liabilities)

	As of December 31,
	2019		2020
	NT$		NT$
	(In Thousands)		(In Thousands)
Associates	$	7,880	$	1,186
Others		48		36
Total	$	7,928	$	1,222

(v) Significant asset transactions

Acquisition of financial assets at fair value through profit or loss, noncurrent

For the year ended December 31, 2018: None.

				For the year ended December 31, 2019
	Trading Volume (In thousands of shares)		Transaction underlying	Purchase price
				NT$
				(In Thousands)
Associates		500	Stock of MATERIALS ANALYSIS TECHNOLOGY INC.	$	32,923
Associates		1,900	Stock of GEAR RADIO LTD.		37,211
Total				$	70,134

				For the year ended December 31, 2020
	Trading Volume (In thousands of shares)		Transaction underlying	Purchase price
				NT$
				(In Thousands)
Associates		1,000	Stock of WELLYSUN INC.	$	25,000

Acquisition of investments accounted for under the equity method

				For the year ended December 31, 2018
	Trading Volume (In thousands of shares)		Transaction underlying	Purchase price
				NT$
				(In Thousands)
Associates		84,000	Stock	$	840,000

				For the year ended December 31, 2019
	Trading Volume (In thousands of shares)		Transaction underlying	Purchase price
				NT$
				(In Thousands)
Associates		72,000	Stock	$	720,000

For the year ended December 31, 2020: None.

Acquisition of intangible assets

	Purchase price
	For the years ended December 31,
	2018		2019		2020
	NT$		NT$		NT$
	(In Thousands)		(In Thousands)		(In Thousands)
Associates	$	200,610	$	339,463	$	335,425

Disposal of subsidiary

				For the year ended December 31, 2018
	Trading Volume (In thousands of shares)		Transaction underlying	Proceeds		Disposal (loss) gain
				NT$		NT$
				(In Thousands)		(In Thousands)
Others		46,168	Stock of UNISTARS CORPORATION	$	4,617	$	(31,856	)

For the years ended December 31, 2019 and 2020: None.

(vi) Others

Mask expenditure

	For the years ended December 31,
	2018		2019		2020
	NT$		NT$		NT$
	(In Thousands)		(In Thousands)		(In Thousands)
Others	$	1,750,088	$	2,346,263	$	1,811,827

Other payables of mask expenditure

	As of December 31,
	2018		2019		2020
	NT$		NT$		NT$
	(In Thousands)		(In Thousands)		(In Thousands)
Others	$	571,036	$	683,892	$	532,810

c. Key management personnel compensation

	For the years ended December 31,
	2018		2019		2020
	NT$		NT$		NT$
	(In Thousands)		(In Thousands)		(In Thousands)
Short-term employee benefits	$	387,294	$	271,135	$	435,251
Post-employment benefits		4,660		2,406		2,458
Termination benefits		—		3,415		283
Share-based payment		293,857		62,203		365,666
Others		435		578		571
Total	$	686,246	$	339,737	$	804,229