Book Fair
(Amount: NT$ million) value % value %
======================================================================
Foundry Industry 20,424 36 28,041 31
----------------------------------------------------------------------
Strategic Semiconductor Investments 13,572 24 38,116 42
----------------------------------------------------------------------
Other Investments 23,307 40 25,311 27
======================================================================
Total 57,303 100 91,468 100
----------------------------------------------------------------------
As of June 30, 2003, the total book value of long-term investments held by UMC was NT$57.30 billion, and the estimated fair value of long-term investments held by UMC was NT$91.47 billion. UMC plans to carefully adjust its long-term investments, focusing on its core foundry business and related strategic semiconductor investments. The ultimate goal is to pursue maximizing UMC's ROE (return on equity).
Recent Developments / Announcements
Jul. 21 UMCi Continues Equipment Move-in at 300mm Fab
Jul. 16 UMC Selected by TrendChip for Manufacturing of Taiwan
First Turnkey ADSL Residential Solution
Jul. 15 UMC Appoints Dr. Jackson Hu to CEO
Jul. 07 SuperH SH4-202 CPU Core Achieves Silver IP Status at UMC
Jul. 02 UMC and HBA Achieve Working 90-nanometer Silicon for HBA's
High Speed SRAM
Jun. 30 Spirea and UMC to Deliver ICs for Multimode WLAN Radios
Jun. 12 UMC Introduces Its Strained Silicon Process with Wafers
Built on AmberWave Technology
Jun. 09 UMC Shareholders Approved NT$0.401 Stock Dividend for
Fiscal Year 2002
May 29 Artisan and UMC Collaborate on PCI Express Compliant
0.13-micron PHY Core
Please visit UMC's website umc.com for further details regarding the above announcements.
(5) The long-term investments information disclosed is UMC Group
consolidated data, including UMC, Hsun Chieh Investment Corp.,
Fortune Venture Capital Corp. and UMC Capital Corp. For publicly
quoted investments, fair value is calculated by multiplying the
average closing price during the last month of the accounting
period (June of 2003) and the number of shares owned by the UMC
Group on June 30, 2003, together; otherwise, book value or
underlying equity of investments in net value as recorded on the
balance sheet at the end of the accounting period (June 30, 2003)
is used as the fair value.
Third Quarter of 2003 Outlook & Guidance
Quarter-over-quarter comparison:
Wafer ASP: flat to up
Wafer shipments: decrease by low-to-mid single digit percentage
Capacity utilization rate: close to 80%
Operating profit margins: close to double-digit
Percent of revenue from 0.18 micron & below technology: approximately 45%
The consumer segment is expected to post the strongest growth, while the communications segment is expected to remain weak.
Conference Call / Webcast Announcement
Wednesday, July 30, 2003
Time: 8:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM (London)
Dial-in numbers and Access Codes:
Asia/Europe: +1 (719) 457-2727
North America: +1 (800) 474-8920
Access Code: UMC
A live webcast and replay of the 2Q03 results announcement will be available at www.umc.com under the "Investor Relations / Investor Events" section.
About UMC
UMC (NYSE: UMC, TSE: 2303) is a leading global semiconductor foundry that manufactures advanced process ICs for applications spanning every major sector of the semiconductor industry. UMC delivers cutting-edge foundry technologies that enable sophisticated system-on-chip (SOC) designs, including 90nm copper, 0.13um copper, embedded DRAM, and mixed signal/RFCMOS. UMC is also a leader in 300mm manufacturing; Fab 12A in Taiwan is currently in volume production for a variety of customer products, while Singapore-based UMCi will begin pilot production later this year. UMC employs over 8,500 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, and the United States. UMC can be found on the web at umc.com.
Safe Harbor Statements
Except for statements in respect of historical matters, the statements in this release contain "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what may be implied by such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors, including, among other things: our dependence upon frequent introduction of new services and technologies based on the latest developments; the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; the risks associated with international global business activities; our dependence upon key personnel; general economic and political conditions, including those related to the semiconductor, communications, consumer electronics and computer industries; possible disruptions in commercial activities caused by natural and human induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases, such as SARS; reduced end-user purchases relative to expectations and orders; fluctuations in foreign currency exchange rates; and those risks identified in the section entitled "Risk Factors" in UMC's Annual Report on Form 20-F for year 2002 filed with the U.S. Securities and Exchange Commission on June 25, 2003.
The financial statements included in this release were unaudited and unconsolidated, and prepared and published in accordance with ROC GAAP. Investors are cautioned that there are many differences between ROC GAAP and U.S. GAAP, as described in the note 28 to the financial statements included in our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on June 25, 2003.
The forward-looking statements in this release reflect the current belief of UMC as of the date of this release and UMC undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Balance Sheet
As of June 30, 2003
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars
(US$)
June 30, 2003
----------------------
US$ NT$ %
------ -------- ------
ASSETS
Current Assets
Cash and Cash Equivalents 2,165 74,940 24.8%
Short-term Investments 27 918 0.3%
Notes & Accounts Receivables 374 12,941 4.3%
Inventories 217 7,499 2.5%
Other Current Assets 190 6,592 2.2%
------ -------- ------
Total Current Assets 2,973 102,890 34.1%
------ -------- ------
Non-Current Assets
Funds and Long-term Investments 1,711 59,207 19.6%
Other Financial Assets 56 1,932 0.6%
Property, Plant and Equipment 3,737 129,341 42.8%
Intangible Assets 0 13 0.0%
Other Assets 254 8,795 2.9%
------ -------- ------
Total Non-Current Assets 5,758 199,288 65.9%
------ -------- ------
TOTAL ASSETS 8,731 302,178 100.0%
====== ======== ======
LIABILITIES
Current Liabilities
Payables 399 13,806 4.6%
Current Portion of Long-term Liabilities 441 15,269 5.0%
Other Current Liabilities 57 1,975 0.7%
------ -------- ------
Total Current Liabilities 897 31,050 10.3%
------ -------- ------
Non-Current Liabilities
Bonds Payable 1,359 47,035 15.6%
Long-term Loans 117 4,052 1.3%
Other Liabilities 118 4,062 1.3%
------ -------- ------
Total Non-Current Liabilities 1,594 55,149 18.2%
------ -------- ------
TOTAL LIABILITIES 2,491 86,199 28.5%
------ -------- ------
STOCKHOLDERS' EQUITY
Capital Stock 4,664 161,408 53.4%
Capital Reserve 2,310 79,955 26.5%
Retained Earnings, Unrealized Long-term
Investment Loss and Translation Adjustment 172 5,969 2.0%
Treasury Stock (906) (31,353) -10.4%
------ -------- ------
TOTAL STOCKHOLDERS' EQUITY 6,240 215,979 71.5%
------ -------- ------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 8,731 302,178 100.0%
====== ======== ======
--------------------------------------------------------------------
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2003 exchange rate of NT$ 34.61 per U.S. Dollar.
All figures are in ROC GAAP.
-0-
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Year Over Year Comparison
-----------------------------------------
Three-Month Period Ended
June 30, 2003 June 30, 2002 %
---------------- --------------- --------
US$ NT$ US$ NT$ Chg.
------- -------- ------ -------- --------
Net Sales 627 21,706 537 18,580 16.8%
Cost of Goods Sold (483) (16,723) (416) (14,375) 16.3%
------- -------- ------ -------- --------
Net Gross Profit 144 4,983 121 4,205 18.5%
------- -------- ------ -------- --------
23.0% 23.0% 22.6% 22.6%
Operating Expenses
- Sales & Marketing 13 457 3 99 361.6%
- General & Administrative 16 565 30 1,049 -46.1%
- Research & Development 43 1,477 59 2,048 -27.9%
------- -------- ------ -------- --------
72 2,499 92 3,196 -21.8%
------- -------- ------ -------- --------
Operating Income (Loss) 72 2,484 29 1,009 146.2%
11.5% 11.5% 5.4% 5.4%
Net Non-Operating Income
(Expenses) 18 610 99 3,441 -82.3%
------- -------- ------ -------- --------
Income (loss) before Income
Tax 90 3,094 128 4,450 -30.5%
14.3% 14.3% 23.9% 23.9%
Income Tax (Expense) Benefit (12) (407) - (4) 10075.0%
------- -------- ------ -------- --------
Net Income (Loss) 78 2,687 128 4,446 -39.6%
======= ======== ====== ======== --------
12.4% 12.4% 23.9% 23.9%
Earnings (loss) per share 0.005 0.18 0.009 0.30
------- -------- ------ --------
Earnings (loss) per ADS (2) 0.026 0.90 0.043 1.50
------- -------- ------ --------
Weighted Average Number of
Shares
Outstanding (in millions) 14,639 14,751
-------- --------
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Quarter Over Quarter Comparison
----------------------------------------
Three-Month Period Ended
June 30, 2003 March 31, 2003 %
--------------- --------------- --------
US$ NT$ US$ NT$ Chg.
------ -------- ------ -------- --------
Net Sales 627 21,706 517 17,898 21.3%
Cost of Goods Sold (483) (16,723) (438) (15,158) 10.3%
------ -------- ------ -------- --------
Net Gross Profit 144 4,983 79 2,740 81.9%
------ -------- ------ -------- --------
23.0% 23.0% 15.3% 15.3%
Operating Expenses
- Sales & Marketing 13 457 8 266 71.8%
- General & Administrative 16 565 15 510 10.8%
- Research & Development 43 1,477 36 1,265 16.8%
------ -------- ------ -------- --------
72 2,499 59 2,041 22.4%
------ -------- ------ -------- --------
Operating Income (Loss) 72 2,484 20 699 255.4%
11.5% 11.5% 3.9% 3.9%
Net Non-Operating Income
(Expenses) 18 610 (8) (295) -
------ -------- ------ -------- --------
Income (loss) before Income
Tax 90 3,094 12 404 665.8%
14.3% 14.3% 2.3% 2.3%
Income Tax (Expense) Benefit (12) (407) - (1) 40600.0%
------ -------- ------ -------- --------
Net Income (Loss) 78 2,687 12 403 566.7%
====== ======== ====== ======== --------
12.4% 12.4% 2.3% 2.3%
Earnings (loss) per share 0.005 0.18 0.001 0.03
------ -------- ------ --------
Earnings (loss) per ADS (2) 0.026 0.90 0.004 0.15
------ -------- ------ --------
Weighted Average Number of
Shares
Outstanding (in millions) 14,639 14,727
-------- --------
----------------------------------------------------------------------
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2003 exchange rate of NT$ 34.61 per U.S. Dollar. All
figures are in ROC GAAP.
(2) 1 ADS equals 5 ordinary shares.
-0-
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
For the Three-Month
Period Ended For the Year Ended
June 30, 2003 June 30, 2003
---------------------- ----------------------
US$ NT$ % US$ NT$ %
------ -------- ------ ------ -------- ------
Net Sales 627 21,706 100% 1,144 39,604 100%
Cost of Goods Sold (483) (16,723) -77.0% (921) (31,881) -80.5%
------ -------- ------ ------ -------- ------
Net Gross Profit 144 4,983 23.0% 223 7,723 19.5%
------ -------- ------ ------ -------- ------
Operating Expenses
- Sales & Marketing 13 457 2.1% 21 723 1.8%
- General &
Administrative 16 565 2.6% 31 1,075 2.8%
- Research &
Development 43 1,477 6.8% 79 2,742 6.9%
------ -------- ------ ------ -------- ------
72 2,499 11.5% 131 4,540 11.5%
------ -------- ------ ------ -------- ------
Operating Income (Loss) 72 2,484 11.5% 92 3,183 8.0%
Net Non-Operating Income
(Expenses) 18 610 2.8% 9 315 0.8%
------ -------- ------ ------ -------- ------
Income (loss) before
Income Tax 90 3,094 14.3% 101 3,498 8.8%
Income Tax (Expense)
Benefit (12) (407) -1.9% (12) (408) -1.0%
------ -------- ------ ------ -------- ------
Net Income (Loss) 78 2,687 12.4% 89 3,090 7.8%
====== ======== ====== ====== ======== ======
Earnings (loss) per
share 0.005 0.18 0.006 0.21
------ -------- ------ --------
Earnings (loss) per ADS
(2) 0.026 0.90 0.030 1.05
------ -------- ------ --------
Weighted Average Number
of Shares
Outstanding (in
millions) 14,639 14,683
-------- --------
---------------------------------------------------------------------
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2003 exchange rate of NT$ 34.61 per U.S. Dollar. All
figures are in ROC GAAP.
(2) 1 ADS equals 5 ordinary shares.
-0-
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Statement of Cash Flows
For The Six Months Ended June 30, 2003
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
US$ NT$
------ -------
Cash flows from operating activities :
Net Income 89 3,090
Depreciation & Amortization 536 18,533
Bad debt expense 2 62
Long-term investment loss accounted for under the
equity method (4) (145)
Loss on decline in market value of long-term
investments 3 90
Inventory loss 26 901
Gain on disposal of investments (34) (1,176)
Gain on disposal of property, plant and equipment (1) (32)
Exchange gain on long-term liabilities (3) (90)
Loss on reacquisition of bonds 0 5
Change in working capital & others (27) (922)
------ -------
Net cash provided from operating activities 587 20,316
Cash flows from investing activities :
Decrease in short-term investments 46 1,553
Decrease in other financial assets 48 1,650
Increase in long-term investments (142) (4,914)
Proceeds from disposal of long-term investments 11 393
Acquisition of property, plant and equipment (157) (5,420)
Proceeds from disposal of property, plant and
equipment 12 429
Increase in deposits-out (0) (8)
Increase in deferred expenses / other assets (9) (298)
------ -------
Net cash used in investing activities (191) (6,615)
Cash flows from financing activities :
Decrease in short-term loans (3) (100)
Decrease in long-term loans (204) (7,060)
Proceeds from bonds issued 433 15,000
Reacquisition of bonds (50) (1,737)
Deposits-in 0 0
Treasury stock (59) (2,056)
------ -------
Net cash provided from financing activities 117 4,047
------ -------
Net increase in cash and cash equivalents 513 17,748
------ -------
Cash and cash equivalents at beginning of period 1,652 57,192
Cash and cash equivalents at end of period 2,165 74,940
====== =======
----------------------------------------------------------------------
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2003 exchange rate of NT$ 34.61 per U.S. Dollar.
All figures are in ROC GAAP.
--------------------------------------------------------------------------------
Contact:
UMC
Chitung Liu / Ite Pan, +886-2-2700-6999 ext. 6957
chitung_liu@umc.com
ite_pan@umc.com
or
Christensen IR
Tip Fleming / Jane Liu, +1-212-618-1978 / +852-2864-4814
tfleming@christensenir.com
jliu@christensenir.com |
