TAIPEI, Oct. 29, 2014 /PRNewswire/ --

Third Quarter 2014 Overview[1]:

Revenue: NT$35.21 billion (US$1.16 billion)


    --  Gross margin: 21.5%; operating margin: 4.8%
    --  Foundry revenue from advanced node: 3% from 28nm, 24% from 40nm
    --  Foundry capacity utilization rate: 93%
    --  Net income attributable to the stockholders of the parent: NT$2.92
        billion (US$96 million)
    --  Earnings per share: NT$0.23; earnings per ADS: US$0.038

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the third quarter of 2014.

Revenue was NT$35.21 billion, with gross margin at 21.5% and operating margin at 4.8%. Net income attributable to the stockholders of the parent was NT$2.92 billion, with earnings per ordinary share of NT$0.23.

Mr. Po-Wen Yen, CEO of UMC, said, "In the third quarter, our foundry revenue grew 2.9% sequentially to NT$33.51 billion. Foundry operating margin was 8.8%. Overall capacity utilization reached 93%, led by increasing demand from communication products such as handsets and tablet devices, bringing wafer shipments to 1.462 million 8-inch equivalent wafers. Moreover, 24% of our revenue came from 40nm, while 28nm contribution rose from 1% to 3% quarter-over-quarter, demonstrating the sustained traction of UMC's leading edge geometries. Our 28nm yield progress for poly-SiON & gate-last, High-K Metal Gate products has continued to improve, which will drive significant production ramp during the fourth quarter. This progress will help attract multiple waves of new customers and products to strengthen UMC's 28nm growth and further diversify our customer base in advanced nodes."

CEO Yen continued, "UMC has collaborated with Asian regional partners for capacity deployment plans with the intention to expand our operating scale, strengthen efficiency and capture additional market share. This cooperative model will establish regional manufacturing centers that will build economy of scale to increase productivity and serve local markets, while helping UMC's global customers mitigate geographical risks in the supply chain. UMC's recent announcement with Fujitsu Semiconductor and our joint venture in Xiamen illustrates these collaborative efforts. Our foundry alliance with Fujitsu includes a 40nm licensing agreement which will enable UMC to better serve the Japanese local market, including automotive, industrial, consumer electronics, and other related sectors. Recently, we also announced an investment venture with Xiamen Municipal People's Government and FuJian Electronics & Information Group to establish a 12" fab in China for 40nm and 55nm foundry services, subject to approval by Taiwan government authorities. Meanwhile, UMC's dedicated engineering team continues to work on 10nm and 14nm advanced technologies in our Taiwan headquarters to ensure the company's next stage of growth. Our differentiated approach via global expansion, combined with the leadership in advanced manufacturing technologies, will serve as the engine that drives UMC's growth to enhance corporate profitability and provide long-term returns for our shareholders."



    [1]Unless otherwise stated, all
     financial figures discussed in this
     announcement are prepared in
     accordance with TIFRSs recognized
     by Financial Supervisory Commission
     in the ROC, which is different from
     IFRSs issued by the International
     Accounting Standards Board. They
     represent comparisons among the
     three-month period ending Sep 30,
     2014, the three-month period
     ending Jun 30, 2014, and the
     equivalent three-month period that
     ended Sep 30, 2013. For all 3Q14
     results, New Taiwan Dollar (NT$)
     amounts have been converted into
     U.S. Dollars at the Sep 30, 2014
     exchange rate of NT$ 30.41 per U.S.
     Dollar.

Summary of Operating Results



    Operating Results
    -----------------

    (Amount: NT$ million)                                     3Q14        2Q14                   QoQ %   3Q13                  YoY %
                                                                                        change                          change
    ---

    Net Operating Revenues                                         35,214        35,869            (1.8)         33,407              5.4

    Gross Profit                                                    7,559         8,207            (7.9)          7,337              3.0

    Operating Expenses                                            (5,270)      (5,280)           (0.2)        (4,894)             7.7

    Net Other Operating Income and Expenses                         (602)         (10)         5,920.0            (48)         1,154.2

    Operating Income                                                1,687         2,917           (42.2)          2,395           (29.6)

    Net Non-Operating Income and Expenses                           1,305           937             39.3           1,561           (16.4)

    Net Income Attributable to the Stockholders of the Parent       2,916         3,482           (16.3)          3,476           (16.1)

    EPS   (NT$ per share)                                            0.23          0.28                            0.28

               (US$ per ADS)                                        0.038         0.046                           0.046
               ------------                                         -----         -----                           -----

During 3Q14, foundry revenue increased 2.9% QoQ to NT$33.51 billion while New Business segment revenue, mainly consisting of solar subsidiary companies, decreased 48.2% sequentially to NT$1.72 billion, leading to a consolidated revenue of NT$35.21 billion, a 1.8% quarterly decline. Gross profit was NT$7.56 billion, or 21.5% of revenue. Operating income was NT$1.69 billion, or 4.8% of consolidated revenue, primarily due to a NT$602 million net other operating expense, mainly from an impairment loss in a solar subsidiary company during 3Q14. Net income attributable to the stockholders of the parent in 3Q14 was NT$2.92 billion, compared to NT$3.48 billion in 2Q14.

Earnings per ordinary share for the quarter were NT$0.23. Earnings per ADS were US$0.038. The basic weighted average number of outstanding shares in 3Q14 was 12,500,808,739, compared with 12,489,095,718 shares in 2Q14 and 12,459,978,088 shares in 3Q13. The diluted weighted average number of outstanding shares was 12,582,502,645 in 3Q14, compared with 12,607,860,758 shares in 2Q14 and 13,201,315,449 shares in 3Q13. The fully diluted share count on September 30, 2014 was approximately 12,781,655,000. On September 30, 2014, UMC held 200 million treasury shares acquired from the 15th share buy-back programs.

Detailed Financials Section

Foundry revenue increased by 2.9% to NT$33.51 billion due to sustained demand while New Business segment declined 48.2% to NT$1.72 billion due to a global slowdown in the solar sector, resulting in consolidated revenue of NT$35.21 billion. Cost of goods sold remained relatively flat from last quarter. Research and development expenses increased 4.3% to NT$3.47 billion. Net other operating expenses of NT$602 million was mostly due to an impairment loss from a solar subsidiary company.



    COGS & Expenses
    ---------------

    (Amount: NT$ million)                 3Q14          2Q14                    QoQ %   3Q13                    YoY %
                                                                       change                            change
    ---                                                                ------                            ------

    Net Operating Revenues                       35,214         35,869            (1.8)          33,407               5.4

    COGS                                       (27,655)      (27,662)           (0.0)        (26,070)              6.1

      Depreciation                              (8,483)       (8,662)           (2.1)         (8,151)              4.1

      Other Mfg. Costs                         (19,172)      (19,000)             0.9         (17,919)              7.0

    Gross Profit                                  7,559          8,207            (7.9)           7,337               3.0

    Gross Margin (%)                             21.5%         22.9%                           22.0%

    Operating Expenses                          (5,270)       (5,280)           (0.2)         (4,894)              7.7

      G&A                                         (845)         (857)           (1.4)           (854)            (1.1)

      Sales & Marketing                           (957)       (1,097)          (12.8)           (778)             23.0

      R&D                                       (3,468)       (3,326)             4.3          (3,262)              6.3

    Net Other Operating Income & Expenses         (602)          (10)         5,920.0             (48)          1,154.2

    Operating Income                              1,687          2,917           (42.2)           2,395            (29.6)
    ----------------                              -----          -----            -----            -----             -----

Net non-operating income in 3Q14 was NT$1.3 billion. Net investment gain was NT$487 million. Gains from investment disposal totaled NT$580 million.



    Non-Operating Income and Expenses
    ---------------------------------

    (Amount: NT$ million)             3Q14       2Q14        3Q13
    --------------------              ----       ----        ----

    Non-Operating Income and
     Expenses                              1,305         937       1,561

      Net Interest Income and
       Expenses                              (8)      (149)       (77)

      Net Investment Gain and Loss           487         188         639

      Gain and Loss on Disposal of
       Investment                            580         792         506

      Exchange Gain and Loss                 114         (4)         53

      Other Gain and Loss                    132         110         440
      -------------------                    ---         ---         ---

Cash inflow from operations was NT$12.04 billion. In 3Q14, CAPEX spending of NT$12.87 billion included NT$12.74 billion from the foundry segment, resulting in free cash outflow of NT$828 million. Cash outflow from financing activities was NT$6.66 billion, mostly due to the payment of NT$6.25 billion in cash dividends and cash paid from additional paid-in-capital to shareholders and loan repayment of NT$627 million. Total cash outflow was NT$6.89 billion in 3Q14. Over the next 12 months, the company expects to repay NT$4.44 billion in bank loans.



    Cash Flow Summary
    -----------------

    (Amount: NT$ million)         For the 3-Month      For the 3-Month
    --------------------

               Period Ended        Period Ended

               Sep. 30, 2014       Jun. 30, 2014

    Cash Flow from Operating
     Activities                                 12,039                 7,681

      Net Income before tax                      2,992                 3,854

      Depreciation & Amortization               10,195                 9,949

     Share of profit or loss of
      associates and joint
      ventures                                      54                 (132)

     Gain on disposal of
      investments                                (580)                (792)

     Impairment loss on non-
      financial assets                             597                     -

      Changes in Working Capital               (1,488)              (5,002)

      Other                                        269                 (196)

    Cash Flow from Investing
     Activities                               (12,684)              (7,032)

      Capital Expenditures                    (12,867)              (7,885)

     Proceeds from disposal of
      available-for-sale
      financial assets                             568                 1,102

     Acquisition of intangible
      assets                                     (268)                (428)

     Other                                       (117)                  179

    Cash Flow from Financing
     Activities                                (6,659)              (4,423)

     Bank Loans                                  (627)                  755

    Bonds Issued                                     -                5,000

    Redemption of Bonds                              -             (10,249)

    Cash Dividends and Cash
     paid from additional paid-
     in capital                                (6,253)                    -

     Other                                         221                    71

    Effect of Exchange Rate
     Changes                                       414                 (523)
      on Cash and Cash
       Equivalents

    Net Decrease in Cash and
     Cash Equivalents                          (6,890)              (4,297)
    ------------------------                    ------                ------

Cash and cash equivalents decreased to NT$42.74 billion, mostly from CAPEX spending, cash dividends, and cash paid from additional paid-in-capital to shareholders in 3Q14. The days of inventory decreased to 46 days.



    Current Assets
    --------------

    (Amount: NT$ billion)       3Q14       2Q14       3Q13
    --------------------        ----       ----       ----

    Cash and Cash Equivalents        42.74      49.63      47.71

    Notes & Accounts Receivable      21.93      21.62      18.66

      Days Sales Outstanding            56         52         52

    Inventories, net                 14.31      13.84      14.17

      Days of Inventory                 46         47         50

    Total Current Assets              91.8      98.37       88.9
    --------------------              ----      -----       ----

Current liabilities decreased to NT$45.44 billion, largely from the payment of NT$6.25 billion in cash dividends and cash paid from additional paid-in-capital to shareholders. Debt to equity ratio decreased to 39%.



    Liabilities
    -----------

    (Amount: NT$ billion)       3Q14       2Q14       3Q13
    --------------------        ----       ----       ----

    Total Current Liabilities        45.44      49.68      52.27

      Notes & Accounts Payable        6.75       6.85       7.62

      Short-Term Credit / Bonds      15.26      15.75      23.44

      Payables on Equipment           10.4       7.19       8.95

      Other                          13.03      19.89      12.26

    Long-Term Credit / Bonds         31.98      31.92       28.8

    Total Liabilities                84.43      88.69      88.35

    Debt to Equity                     39%       41%       42%
    --------------                     ---        ---        ---

Analysis of Revenue[2] for Foundry Segment

Revenue from North America and Europe rose to 45% and 6% of sales respectively, primarily from the demand in the communication segment.



                           Revenue Breakdown by Region
                           ---------------------------

    Region        3Q14     2Q14                1Q14          4Q13       3Q13
    ------        ----     ----                ----          ----       ----

    North America      45%               43%           45%        47%        43%
    -------------      ---                ---            ---         ---         ---

    Asia Pacific       44%               46%           45%        41%        44%
    ------------       ---                ---            ---         ---         ---

    Europe              6%                5%            7%         8%         7%
    ------             ---                ---            ---         ---         ---

    Japan               5%                6%            3%         4%         6%
    -----              ---                ---            ---         ---         ---

28nm revenue contribution rose to 3% while 40nm revenue represented 24% during 3Q14.



                     Revenue Breakdown by Geometry
                     -----------------------------

    Geometry         3Q14                2Q14        1Q14       4Q13        3Q13
    --------         ----                ----        ----       ----        ----

    28nm and below           3%                  1%        0%         0%          0%
    --------------          ---                  ---        ---         ---          ---

    28nm

3Q14 Revenue from fabless customers increased to 91%.



                  Revenue Breakdown by Customer Type
                  ----------------------------------

    Customer
     Type    3Q14               2Q14                1Q14       4Q13        3Q13
    -------- ----               ----                ----       ----        ----

    Fabless        91%                 90%               92%        89%         86%
    -------        ---                  ---                ---         ---          ---

    IDM             9%                 10%                8%        11%         14%
    ---            ---                  ---                ---         ---          ---

The communication segment represented 54% of revenue in 3Q14, demonstrating the robust demand in handset and tablet devices.



                    Revenue Breakdown by Application (1)
                    -----------------------------------

    Application   3Q14                2Q14               1Q14       4Q13        3Q13
    -----------   ----                ----               ----       ----        ----

    Computer             15%                 18%              18%        15%         16%
    --------             ---                  ---               ---         ---          ---

    Communication        54%                 49%              46%        49%         52%
    -------------        ---                  ---               ---         ---          ---

    Consumer             28%                 29%              31%        31%         28%
    --------             ---                  ---               ---         ---          ---

    Others                3%                  4%               5%         5%          4%
    ------               ---                  ---               ---         ---          ---


    (1) Computer consists of ICs such as CPU,
     GPU, HDD controllers, DVD/CD-RW control
     ICs, PC chipset, audio codec, keyboard
     controller, monitor scaler, USB, I/O
     chipset. Communication consists of handset
     components, broadband, WLAN, bluetooth,
     Ethernet, LAN, DSP, etc. Consumer consists
     of ICs used for DVD players, DTV, STB, MP3/
     MP4, flash controller, game consoles, DSC,
     smart cards, toys, etc.


    [2] Revenue in this section represents
     wafer sales

Blended ASP Trend for Foundry Segment

Blended average selling price (ASP) remained flat in 3Q14.
(To view ASP trend, visit http://www.umc.com/english/investors/3Q14_ASP_trend.asp)

Shipment and Utilization Rate[3] for Foundry Segment

Wafer shipments increased 2.5% quarterly to 1,462K in 3Q14, bringing overall utilization rate to 93%.



                                        Wafer Shipments
                                        ---------------

                  3Q14                  2Q14                   1Q14       4Q13        3Q13
                  ----                  ----                   ----       ----        ----

     Wafer
     Shipments         1,462                     1,426              1,258       1,236        1,329
                       -----                     -----              -----       -----        -----

     (8"
     K
     equivalents)
     ------------


                           Quarterly Capacity Utilization Rate
                           -----------------------------------

                  3Q14                  2Q14                   1Q14       4Q13        3Q13
                  ----                  ----                   ----       ----        ----

     Utilization
     Rate                93%                      90%               81%        79%         87%
     -----------         ---                       ---                ---         ---          ---

     Total
     Capacity          1,586                     1,597              1,563       1,560        1,548
                       -----                     -----              -----       -----        -----

     (8"
     K
     equivalents)
     ------------


    [3] Utilization Rate =
     Quarterly Wafer Out /
     Quarterly Capacity

Capacity[4] for Foundry Segment

Capacity during the third quarter was 1,586K 8-inch equivalent wafers. The difference of 11K 8-inch equivalent wafers during 3Q14 compared to 2Q14 was primarily due to the change in capacity profile at Fab8D and the capacity upgrades at Fab12i. Fourth quarter¡¦s estimated capacity will be approximately 1,577K 8-inch equivalent wafer, the net result of 28nm capacity expansion at Fab12A with current capacity upgrades at Fab12i.



    Annual Capacity in                                                                                                                                                                            Quarterly Capacity in

    thousands of wafers                                                                                                                                                                           thousands of wafers
    -------------------                                                                                                                                                                           -------------------

               FAB                 Geometry                                2013        2012        2011        2010                    FAB                4Q14E               3Q14        2Q14        1Q14
                                     (um)
    ---                              ---

    Fab6A                       6"              3.5 - 0.45                             448         481         538         588                   Fab6A                           113          113          113                      111
    -----                       ---             ----------                             ---         ---         ---         ---                   -----                           ---          ---          ---                      ---

    Fab8A                       8"              0.5 - 0.25                             813         815         813         816                   Fab8A                           204          204          204                      201
    -----                       ---             ----------                             ---         ---         ---         ---                   -----                           ---          ---          ---                      ---

    Fab8C                       8"              0.35 - 0.11                            347         360         359         366                   Fab8C                            87           87           87                       86
    -----                       ---             -----------                            ---         ---         ---         ---                   -----                           ---          ---          ---                      ---

    Fab8D                       8"              0.13 - 0.09                            382         371         364         314                   Fab8D                            86           86           93                       94
    -----                       ---             -----------                            ---         ---         ---         ---                   -----                           ---          ---          ---                      ---

    Fab8E                       8"              0.5 - 0.18                             418         449         469         410                   Fab8E                           105          105          105                      103
    -----                       ---             ----------                             ---         ---         ---         ---                   -----                           ---          ---          ---                      ---

    Fab8F                       8"              0.18 - 0.11                            388         389         388         388                   Fab8F                            98           98           98                       96
    -----                       ---             -----------                            ---         ---         ---         ---                   -----                           ---          ---          ---                      ---

    Fab8S                       8"              0.18 - 0.11                            335         348         307         304                   Fab8S                            84           84           84                       83
    -----                       ---             -----------                            ---         ---         ---         ---                   -----                           ---          ---          ---                      ---

    Fab8N                       8"                                    0.5 -0.13        469           -          -          -                  Fab8N                           140          140          140                      126
    -----                       ---                                   ---------        ---         ---        ---        ---                  -----                           ---          ---          ---                      ---

    Fab12A                      12"             0.18 - 0.028                           651         579         501         374                   Fab12A                          180          174          174                      171
    ------                      ---             ------------                           ---         ---         ---         ---                   ------                          ---          ---          ---                      ---

    Fab12i                      12"             0.13 - 0.040                           550         537         530         454                   Fab12i                          135          145          147                      145
    ------                      ---             ------------                           ---         ---         ---         ---                   ------                          ---          ---          ---                      ---

                                   Total(1)                                       6,107       5,514       5,322       4,791                   Total                         1,577        1,586        1,597                    1,563
                                    =======                                       =====       =====       =====       =====                   =====                         =====        =====        =====                    =====

                                                                                    11%         4%        11%         4%
                                     YoY Growth Rate

                                      ===



    2010~2012 figures account for UMC parent company only.



    (1)One 6-inch wafer is converted into 0.5625(6(2)/8(2)) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25(12(2)/8(2)) 8-inch equivalent wafers. Capacity total figures are expressed in 8-inch equivalent wafers.

CAPEX for Foundry Segment

The foundry capital expenditure for 2014 will be US$1.3 billion. Spending during the first nine months of 2014 in the foundry segment was US$885 million.



    Capital Expenditure by Year- in US$ billion
    -------------------------------------------

             Year                2013       2012       2011  2010  2009
             ----                ----       ----       ----  ----  ----

             CAPEX              $1.10      $1.70      $1.60 $1.80 $0.55
             -----              -----      -----      ----- ----- -----



    2009~2012 figures account for UMC parent company only.


    2014 CAPEX Plan
    ---------------

            8"                  12"                Total
           ---                  ---                -----

           12%                       88%     US$ 1.3 billion
           ---                        ---      ---------------


    [4] Estimated capacity numbers
     are based on calculated maximum
     output rather than designed
     capacity. The actual capacity
     numbers may differ depending
     upon equipment delivery
     schedules, pace of migration to
     more advanced process
     technologies, and other factors
     affecting production ramp-up.

Fourth Quarter of 2014 Outlook & Guidance

Quarter-over-Quarter Guidance:


    --  Foundry Segment Wafer Shipment: To decrease by approximately 3%
    --  Foundry Segment ASP in US$: To increase by approximately 1%
    --  Foundry Segment Profitability: Gross margin will be in the mid-20
        percentage range
    --  Foundry Segment Capacity Utilization: Approximately 90%
    --  Expect to recognize approximately US$50mn from Fujitsu for 40nm
        licensing fee
    --  Guidance to New Business Segment: Revenue to be approximately NT$2.5bn
        and net loss attributable to UMC parent company to be approximately
        NT$400mn

Recent Developments / Announcements



    Oct. 28, 2014         UMC Enters Volume Production for
                          Lantiq's Communication ICs
    -------------         --------------------------------

    Oct. 09, 2014         UMC Board Resolves to Enter a Joint
                          Venture Agreement for a 12" Fab in
                          China
    -------------        ------------------------------------

    Sep. 16, 2014         UMC Selected as a DJSI Global
                          Component for Seventh Consecutive
                          Year
    -------------        ----------------------------------

    Sep. 03, 2014         NJR Analog ICs Manufactured at UMC
                          Adopted by Major Japanese Auto OEM
    -------------        -----------------------------------

    Aug. 29, 2014         UMC Joins Fujitsu's New Foundry
                          Company
    -------------        --------------------------------

    Aug. 08, 2014         UMC Again Earns Top 10 Ranking for
                          Corporate Citizenship by Taiwan's
                          CommonWealth Magazine
    -------------        -----------------------------------

    Aug. 06, 2014         NJR and UMC Extends Collaboration to
                          MEMS Microphone Manufacturing
    -------------        ------------------------------------

    Jul. 30, 2014        UMC 2Q 2014 Financial Results
    -------------        -----------------------------

Please visit UMC's website for further details regarding the above announcements

Conference Call / Webcast Announcement

Wednesday, October 29, 2014

Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 09:00 AM (London)

Dial-in numbers and Access Codes:



    USA Toll Free:                    1-800 871-3110,
                                      1-888 700-7397

    Taiwan Number:                   02-2192-8016

    Other Areas:                     +886-2-2192-8016


    Access Code:                     UMC

A live webcast and replay of the 3Q14 results announcement will be available at http://www.umc.com under the "Investors / Events" section.

About UMC

UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing for applications spanning every major sector of the IC industry. UMC¡¦s robust foundry solutions allow chip designers to leverage the company¡¦s leading-edge processes, which include 28nm poly-SiON and gate-last High-K/Metal Gate technology, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i. Fab 12A consists of Phases 1-4 which are in production for customer products down to 28nm. Construction has been completed for Phases 5&6, with future plans for Phases 7&8. The company employs over 15,000 people worldwide and has offices in Taiwan, mainland China, Europe, Japan, Korea, Singapore, and the United States. UMC can be found on the web at http://www.umc.com

Note from UMC Concerning Forward-Looking Statements

Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S. Federal Securities laws, including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks. Further information regarding these and other risks is included in UMC¡¦s filings with the U.S. Securities and Exchange Commission, including its registration statements and reports on Forms F-1, F-3, F-6 and 20-F and 6-K, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

Safe Harbor Statements

This release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by use of words such as "strategy," "expects," "continues," "plans," "anticipates," "believes," "will," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts.

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international global business activities; (iv) our dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risks is included in UMC's filings with the U.S. Securities and Exchange Commission, including its registration statements and reports on Form F-1, F-3, F-6 and 20-F and 6-K, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

The financial statements included in this release are prepared and published in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from ROC GAAP and US GAAP.

This presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.

- FINANCIAL TABLES TO FOLLOW -



                                                     UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

                                                       Consolidated Condensed Balance Sheet

                                                           As of  September 30, 2014

                         Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)



                                              September 30, 2014
                                              ------------------

                                                US$                                      NT$                     %
                                                ---                                      ---                     ---

    Assets

    Current assets

     Cash and cash
      equivalents                                      1,406                                      42,744                14.2%

     Financial assets
      at fair value
      through profit
      or loss,
      current                                             21                                         649                 0.2%

     Available-for-
      sale financial
      assets, current                                     72                                       2,190                 0.7%

     Notes & Accounts
      receivable, net                                    721                                      21,932                 7.3%

     Inventories, net                                    471                                      14,310                 4.8%

     Other current
      assets                                             328                                       9,977                 3.3%

        Total current
         assets                                        3,019                                      91,802                30.5%
                                                       -----                                      ------                 ----


    Non-current assets

     Funds and
      investments                                      1,093                                      33,236                11.0%

     Property, plant
      and equipment                                    5,343                                     162,474                54.0%

     Other non-
      current assets                                     437                                      13,310                 4.5%

        Total non-
         current assets                                6,873                                     209,020                69.5%
                                                       -----                                     -------                 ----

    Total assets                                       9,892                                     300,822               100.0%
                                                       =====                                     =======                =====


    Liabilities

    Current liabilities

     Short-term
      loans                                              233                                       7,075                 2.4%

     Financial
      liabilities at
      fair value
      through profit
      or loss,
      current                                              0                                           8                 0.0%

     Payables                                            963                                      29,271                 9.7%

     Current portion
      of long-term
      liabilities                                        269                                       8,188                 2.7%

     Other current
      liabilities                                         29                                         902                 0.3%

        Total current
         liabilities                                   1,494                                      45,444                15.1%
                                                       -----                                      ------                 ----


    Non-current liabilities

     Bonds payable                                       821                                      24,977                 8.3%

     Long-term loans                                     231                                       7,008                 2.4%

     Other non-
      current
      liabilities                                        230                                       7,001                 2.3%

        Total non-
         current
         liabilities                                   1,282                                      38,986                13.0%
                                                       -----                                      ------                 ----

        Total
         liabilities                                   2,776                                      84,430                28.1%
                                                       -----                                      ------                 ----


    Equity

    Equity attributable to the parent
     company

    Capital                                            4,184                                     127,248                42.3%

    Additional paid-
     in capital                                        1,296                                      39,418                13.1%

    Retained
     earnings,
     unrealized gain
     or loss on
     available-for-
     sale                                              1,587                                      48,244                16.0%
        financial assets and
         exchange differences on
         translation of
        foreign operations

    Treasury stock                                      (78)                                    (2,365)              (0.8%)


         Total equity
          attributable to
          the parent
          company                                      6,989                                     212,545                70.6%

    Non-controlling
     interests                                           127                                       3,847                 1.3%
                                                         ---                                       -----                  ---

         Total equity                                  7,116                                     216,392                71.9%
                                                       -----                                     -------                 ----

    Total
     liabilities and
     equity                                            9,892                                     300,822               100.0%
                                                       =====                                     =======                =====


    Note?New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2014 exchange rate of NT
                                                                                     $30.41 per U.S. Dollar.

    All figures are prepared in accordance with TIFRSs.



                                                                                                                                                                                      UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

                                                                                                                                                                                   Consolidated Condensed Statements of Comprehensive Income

                                                                                                                                                                             Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

                                                                                                                                                                                               Except Per Share and Per ADS Data



                                                                                                                   Year over Year Comparison                        Quarter over Quarter Comparison
                                                                                                                   -------------------------                        -------------------------------

                                                                                                      Three-Month Period Ended                                                              Three-Month Period Ended

                                                                                                    September 30, 2014                     September 30, 2013       %                              September 30, 2014                         June 30, 2014          %
                                                                                                    ------------------                     ------------------                                      ------------------                         -------------

                                                                                                           US$                                     NT$             US$                                     NT$                                    Chg.              US$            NT$                US$              NT$                  Chg.
                                                                                                           ---                                     ---             ---                                     ---                                    ----              ---            ---                ---              ---                  ----

    Net operating revenues                                                                                        1,158                                     35,214          1,099                                     33,407                                   5.4%         1,158             35,214            1,180               35,869                (1.8%)

    Operating costs                                                                                               (909)                                  (27,655)         (858)                                  (26,070)                                  6.1%         (909)          (27,655)           (910)            (27,662)               (0.0%)

    Gross profit                                                                                                    249                                      7,559            241                                      7,337                                   3.0%           249              7,559              270                8,207                (7.9%)
                                                                                                                    ---                                      -----            ---                                      -----                                    ---            ---              -----              ---                -----

                                                                                                                  21.5%                                     21.5%         22.0%                                     22.0%                                               21.5%             21.5%           22.9%               22.9%

    Operating expenses

      - Sales and marketing expenses                                                                               (32)                                     (957)          (26)                                     (778)                                 23.0%          (32)             (957)            (36)             (1,097)              (12.8%)

      - General and administrative expenses                                                                        (28)                                     (845)          (28)                                     (854)                                (1.1%)          (28)             (845)            (28)               (857)               (1.4%)

      - Research and development expenses                                                                         (114)                                   (3,468)         (107)                                   (3,262)                                  6.3%         (114)           (3,468)           (110)             (3,326)                 4.3%


          Subtotal                                                                                                (174)                                   (5,270)         (161)                                   (4,894)                                  7.7%         (174)           (5,270)           (174)             (5,280)               (0.2%)
                                                                                                                   ----                                     ------           ----                                     ------                                    ---           ----             ------             ----               ------                 -----

    Net other operating income and expenses                                                                        (20)                                     (602)           (1)                                      (48)                                100.0%          (20)             (602)             (0)                (10)               100.0%
                                                                                                                    ---                                       ----            ---                                        ---                                  -----            ---               ----                                  ---                 -----

    Operating income                                                                                                 55                                      1,687             79                                      2,395                                (29.6%)            55              1,687               96                2,917               (42.2%)

                                                                                                                   4.8%                                      4.8%          7.2%                                      7.2%                                                4.8%              4.8%            8.1%                8.1%


    Net non-operating income and expenses                                                                            43                                      1,305             51                                      1,561                                (16.4%)            43              1,305               31                  937                 39.3%
                                                                                                                    ---                                      -----            ---                                      -----                                 ------            ---              -----              ---                  ---                  ----

    Income from continuing operations before income tax                                                              98                                      2,992            130                                      3,956                                (24.4%)            98              2,992              127                3,854               (22.4%)

                                                                                                                   8.5%                                      8.5%         11.8%                                     11.8%                                                8.5%              8.5%           10.7%               10.7%


    Income tax expense                                                                                             (13)                                     (413)          (19)                                     (590)                               (30.0%)          (13)             (413)            (18)               (528)              (21.8%)
                                                                                                                    ---                                       ----            ---                                       ----                                 ------            ---               ----              ---                 ----                ------

    Net income                                                                                                       85                                      2,579            111                                      3,366                                (23.4%)            85              2,579              109                3,326               (22.5%)

                                                                                                                   7.3%                                      7.3%         10.1%                                     10.1%                                                7.3%              7.3%            9.3%                9.3%


    Other comprehensive income (loss)                                                                              (50)                                   (1,501)          (74)                                   (2,249)                               (33.3%)          (50)           (1,501)               4                  103                     -
                                                                                                                    ---                                     ------            ---                                     ------                                 ------            ---             ------              ---                  ---                   ---


    Total comprehensive income                                                                                       35                                      1,078             37                                      1,117                                 (3.5%)            35              1,078              113                3,429               (68.6%)
                                                                                                                    ===                                      =====            ===                                      =====                                  =====            ===              =====              ===                =====                ======


        Net income attributable to:

    Stockholders of the parent                                                                                       96                                      2,916            114                                      3,476                                (16.1%)            96              2,916              115                3,482               (16.3%)

    Non-controlling interests                                                                                      (11)                                     (337)           (3)                                     (110)                                100.0%          (11)             (337)             (6)               (156)               100.0%


        Comprehensive income attributable to:

    Stockholders of the parent                                                                                       45                                      1,372             41                                      1,255                                   9.3%            45              1,372              120                3,636               (62.3%)

    Non-controlling interests                                                                                      (10)                                     (294)           (4)                                     (138)                                100.0%          (10)             (294)             (7)               (207)                42.0%


    Earnings per share-basic                                                                                      0.008                                       0.23          0.009                                       0.28                                                0.008               0.23            0.009                 0.28
                                                                                                                  -----                                       ----          -----                                       ----                                                -----               ----            -----                 ----

    Earnings per ADS (2)                                                                                          0.038                                       1.15          0.046                                       1.40                                                0.038               1.15            0.046                 1.40
                                                                                                                  -----                                       ----          -----                                       ----                                                -----               ----            -----                 ----

    Weighted average number of shares

    outstanding (in millions)                                                                                                                            12,501                                                   12,460                                                                 12,501                               12,489
                                                                                                                                                         ------                                                   ------                                                                 ------                               ------


    Notes:

    (1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2014 exchange rate of NT $30.41 per U.S. Dollar.

    All figures are prepared in accordance with TIFRSs.

    (2) 1 ADS equals 5 common shares.



                                                                                                                                        UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

                                                                                                                                      Consolidated Condensed Statements of Comprehensive Income

                                                                                                                               Figures in Millions 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 Nine-Month Period Ended

                                                                                                                September 30, 2014                                                September 30, 2014
                                                                                                                ------------------                                                ------------------

                                                                                                                  US$                                      NT$                            %                        US$            NT$              %
                                                                                                                  ---                                      ---                            ---                      ---            ---              ---

    Net operating revenues                                                                                               1,158                                      35,214                                  100.0%         3,380          102,777           100.0%

    Operating costs                                                                                                      (909)                                   (27,655)                                (78.5%)       (2,668)        (81,110)         (78.9%)

    Gross profit                                                                                                           249                                       7,559                                   21.5%           712           21,667            21.1%
                                                                                                                           ---                                       -----                                    ----            ---           ------             ----



    Operating expenses

      - Sales and marketing expenses                                                                                      (32)                                      (957)                                 (2.7%)          (95)         (2,888)          (2.8%)

      - General and administrative expenses                                                                               (28)                                      (845)                                 (2.4%)          (84)         (2,549)          (2.5%)

      - Research and development expenses                                                                                (114)                                    (3,468)                                 (9.9%)         (333)        (10,129)          (9.9%)

          Subtotal                                                                                                       (174)                                    (5,270)                                (15.0%)         (512)        (15,566)         (15.2%)
                                                                                                                          ----                                      ------                                  ------           ----          -------           ------

    Net other operating income and expenses                                                                               (20)                                      (602)                                 (1.7%)          (18)           (557)          (0.5%)


    Operating income                                                                                                        55                                       1,687                                    4.8%           182            5,544             5.4%


    Net non-operating income and expenses                                                                                   43                                       1,305                                    3.7%            86            2,594             2.5%
                                                                                                                           ---                                       -----                                     ---            ---            -----              ---

    Income from continuing operations before income tax                                                                     98                                       2,992                                    8.5%           268            8,138             7.9%



    Income tax expense                                                                                                    (13)                                      (413)                                 (1.2%)          (37)         (1,122)          (1.1%)
                                                                                                                           ---                                        ----                                   -----            ---           ------            -----

    Net income                                                                                                              85                                       2,579                                    7.3%           231            7,016             6.8%


    Other comprehensive income (loss)                                                                                     (50)                                    (1,501)                                 (4.2%)            90            2,731             2.7%
                                                                                                                           ---                                      ------                                   -----            ---            -----              ---


    Total comprehensive income                                                                                              35                                       1,078                                    3.1%           321            9,747             9.5%
                                                                                                                           ===                                       =====                                     ===            ===            =====              ===


        Net income attributable to:

    Stockholders of the parent                                                                                              96                                       2,916                                    8.3%           249            7,578             7.4%

    Non-controlling interests                                                                                             (11)                                      (337)                                 (1.0%)          (18)           (562)          (0.6%)


        Comprehensive income attributable to:

    Stockholders of the parent                                                                                              45                                       1,372                                    3.9%           338           10,269            10.0%

    Non-controlling interests                                                                                             (10)                                      (294)                                 (0.8%)          (17)           (522)          (0.5%)


    Earnings per share-basic                                                                                             0.008                                        0.23                                                 0.020             0.61
                                                                                                                         -----                                        ----                                                 -----             ----

    Earnings per ADS (2)                                                                                                 0.038                                        1.15                                                 0.100             3.05
                                                                                                                         -----                                        ----                                                 -----             ----


    Weighted average number of shares                                                                                                                            12,501                                                                12,490
         outstanding (in millions)



    Notes:

    (1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2014 exchange rate of NT $30.41 per U.S. Dollar.

    All figures are prepared in accordance with TIFRSs.

    (2) 1 ADS equals 5 common shares.


                              UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

                                 Consolidated Condensed Statement of Cash Flows

                               For The Nine-Month Period Ended September 30, 2014

                             Figures in Millions of New Taiwan Dollars (NT$) and U.S.
                                                   Dollars (US$)


                                                   USD                                NTD
                                                   ---                                ---

    Cash flows from
     operating activities
     :

        Net
         income
         before
         tax                                               268                                8,138

         Depreciation
         &
         Amortization                                      986                               29,994

         Impairment
         loss
         on
         financial
         assets                                              8                                  257

         Impairment
         loss
         on
         non-
         financial
         assets                                             20                                  597

         Gain
         on
         disposal
         of
         investments                                      (57)                             (1,739)

         Changes
         in
         notes
         &
         accounts
         receivable                                      (167)                             (5,084)

         Changes
         in
         other
         current
         assets                                          (158)                             (4,796)

         Changes
         in
         assets,
         liabilities
         and
         others                                           (47)                             (1,415)
                                                           ---                               ------

    Net
     cash
     provided
     by
     operating
     activities                                            853                               25,952


    Cash flows from
     investing activities
     :

         Acquisition
         of
         available-
         for-
         sales
         financial
         assets                                            (5)                               (167)

         Proceeds
         from
         disposal
         of
         available-
         for-
         sale
         financial
         assets                                             72                                2,199

         Acquisition
         of
         financial
         assets
         measured
         at
         cost                                             (24)                               (747)

         Proceeds
         from
         sale
         of
         financial
         assets
         measured
         at
         cost                                               22                                  674

         Acquisition
         ofinvestments
         accounted
         for
         under
         the
         equity
         method                                            (4)                               (121)

         Acquisition
         of
         property,
         plant
         and
         equipment                                       (889)                            (27,029)

         Proceeds
         from
         disposal
         of
         property,
         plant
         and
         equipment                                           8                                  253

         Acquisition
         of
         intangible
         assets                                           (29)                               (871)

        Others                                             (0)                                 (7)
                                                           ---                                  ---

    Net
     cash
     used
     in
     investing
     activities                                          (849)                            (25,816)


    Cash flows from
     financing activities
     :

         Increase
         in
         short-
         term
         loans                                              78                                2,364

         Proceeds
         from
         bonds
         issued                                            164                                5,000

         Redemption
         of
         bonds                                           (339)                            (10,306)

         Proceeds
         from
         long-
         term
         loans                                              60                                1,824

         Repayments
         of
         long-
         term
         loans                                            (57)                             (1,735)

         Cash
         dividends
         and
         cash
         paid
         from
         additional
         paid-
         in
         capital                                         (206)                             (6,253)

        Others                                              14                                  419
                                                           ---                                  ---

    Net
     cash
     used
     in
     financing
     activities                                          (286)                             (8,687)


     Effect
     of
     exchange
     rate
     changes
     on
     cash
     and
     cash
     equivalents                                            16                                  464
                                                           ---                                  ---

    Net
     decrease
     in
     cash
     and
     cash
     equivalents                                         (266)                             (8,087)


     Cash
     and
     cash
     equivalents
     at
     beginning
     of
     period                                              1,672                               50,831
                                                         -----                               ------


     Cash
     and
     cash
     equivalents
     at
     end
     of
     period                                              1,406                               42,744
                                                         =====                               ======



    Note: New Taiwan Dollars have been translated into U.S. Dollars
     at the September 30, 2014 exchange rate of NT $30.41 per U.S.
     Dollar.

    All figures are prepared in accordance with TIFRSs.

Contacts:

Bowen Huang / David Wong
UMC, Investor Relations
+886-2-2658-9168, ext. 16900
bowen_huang@umc.com / david_wong@umc.com

SOURCE United Microelectronics Corporation