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United Microelectronics

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FY2018 Annual Report · United Microelectronics
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United Microelectronics Corporation
2018 Annual Report
Printed on March 6, 2019

UMC Annual Report Information Can Be Accessed from the Following Websites:

http://www.umc.com

http://mops.twse.com.tw

TSE Code: 2303

NYSE Symbol: UMC

Spokesperson

Chitung Liu

Fab 8E

Securities Dealing Institution

17 Li-Hsin Rd., Hsinchu Science Park, 

Horizon Securities Co., Ltd.

Vice President and Chief 

Hsinchu, Taiwan 30078, R.O.C.

Financial Officer

886 (2) 2658 9168

886(3) 578 2258

Chitung_Liu@umc.com

Fab 8F

Stock Registration Department

3F, No.236 Hsin-Yi Rd. Sec. 4, Taipei, 

Taiwan 10680, R.O.C.

886 (2) 2326 8818

3 Li-Hsin 6th Rd., Hsinchu Science Park, 

http://www.honsec.com.tw

Acting Spokesperson(s)

Hsinchu, Taiwan 30078, R.O.C.

Jinhong Lin

Finance Division

Director

886 (2) 2658 9168

886(3) 578 2258

Fab 8S

16 Creation 1st Rd., Hsinchu Science Park, 

Jinhong_Lin@umc.com

Hsinchu, Taiwan 30077, R.O.C.

886(3) 578 2258

Lan Fu Tsau 

The Chairman and CEO Office

Fab 12A

ADR Depositary and Registrar

J.P. Morgan Depositary Receipts

383 Madison Avenue, 11th Floor

New York, NY 10179, U.S.A. 
General Contact:1(800) 990 1135 
Outside USA:1(651) 453 2128
http://www.adr.com

Corporate Communications

18, 20 Nan-Ke 2nd Rd., &57, Nan-Ke 3rd 

ADR Exchange Marketplace

Manager

886 (3) 578 2258

Lan_Fu_Tsau@umc.com

Rd., Tainan Science Park, Sinshih,  Tainan, 

Taiwan 74147, R.O.C.

886(6) 505 4888

Headquarter

Singapore Branch

3 Li-Hsin 2nd Rd., Hsinchu 

Fab 12i

Science Park, Hsinchu, Taiwan 

3 Pasir Ris Drive 12 Singapore 519528

30078, R.O.C.

886(3) 578 2258

Taipei Office

65 6213 0018

Subsidiary in Mainland China

HJ

8F, 68. Sec. 1, Neihu Rd., Taipei, 

333, Xinghua St., Suzhou Industrial Park, 

Taiwan 11493, R.O.C.

886(2) 2658 9168

Suzhou, Jiangsu Province 215025, PRC

0512 65931299

Fab 8A

Subsidiary in Mainland China

3, 5 Li-Hsin 2nd Rd., Hsinchu 

USCXM

Science Park, Hsinchu, Taiwan 

899 Wan Jia Chun Road, Xiang’an District, 

Xiamen, PRC

0592 7687888

Wavetek

30078, R.O.C.

886(3) 578 2258

Fab 8C & Fab 8D

6, 8 Li-Hsin 3rd Rd., Hsinchu 

Science Park, Hsinchu, Taiwan 

30078, R.O.C.

886(3) 578 2258

NYSE Euronext

11 Wall Street,

New York, NY 10005, U.S.A.

1(212)656 3000

http://www.nyse.com
Ticker/Search Code: UMC

Euro Convertible Bond Exchange 

Marketplace

Singapore Exchange Securities 

Trading Limited

2 Shenton Way 

#02-02 SGX Centre 1

Singapore 068804

65 6236 8888

http://www.sgx.com

ECB Search Code: ISIN XS1228110000

Auditors

Ernst & Young, Taiwan

Wan-Ju Chiu, Hsin-Min Hsu

9/F No. 333, Sec. 1 Keelung Road,  

10, Chuangxin 1st Rd., Baoshan Township, 

Hsinchu, Taiwan 30076, R.O.C.

886(3) 578 1259

Taipei 11012, Taiwan

886 (2) 2757 8888

http://www.ey.com

Nexpower
2, Houke S. Rd., Houli District, Taichung, 

Corporate Website

http://www.umc.com

Taiwan 42152, R.O.C.

886(4) 2580 8888

Table of Contents

Letter to Shareholders	

Corporate Profile	

	 4 

	 8 

9  Corporate Profile and Date of Establishment
10  Corporate Milestones

Corporate Governance Report 

13 

14  Corporate Organization
16  Directors’ and Managers’ Information
38  Corporate Governance Practices
95  Certified Public Accountant (CPA) Fee Information
96 
97  UMC’s  Chairman,  Presidents,  Chief  Financial  Officer,  
and Managers in Charge of Its Finance and Accounting  
Operations  Did  Not  Hold  Any  Positions  in  UMC’s  
Independent Auditing Firm or Its Affiliates in the Most  
Recent Year

Information of CPA Change

98  Change  in  Shareholding  of  Directors,  Managers  and  
Major  Shareholders  Who  Own  10%  or  More  of  
UMC Shares

100  Relationship Among the Top Ten Shareholders
101  Shares  Held  by  the  Company,  Directors,  Managers  
and Companies Directly or Indirectly Controlled by the  
Company,  and  the  Comprehensive  Shareholding  Ratio  
Based on Combined Calculation

Capital Overview 

103 

104  Capital and Shares
109  Issuance of Corporate Bonds
115   Preferred Shares
116  American Depositary Receipts
118 Employee Stock Option Handling Status
118 Issuance of New Restricted Employee Shares 
118 Status of New Shares Issuance in Connection with  

Mergers and Acquisitions

118 Financing Plans and Execution Status

Operations Overview 

119

120  Business Activities
127  Overview of Market, Productions, and Sales
132  Employees
133  Environmental Expenditure Information
133  Labor Relations
137  Major Contracts

2

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
Financial Review 

179

180  Condensed Balance Sheets
182  Condensed Statements of Comprehensive Income
184  Financial Analysis
188  Audit Committee’s Review Report
189  Financial Statements – Consolidated
266 Financial Statements – Parent Company

Review of Financial Position, Operating  13 9  
Results, Risk Management

140  Financial Position
141  Financial Performance
142  Cash Flows 
142  Major Capital Expenditures from Recent Years and  

Impact on Company’s Finance and Business

142  Main Reasons and Improvement Plans for Recent Annual  
Reinvestment Policies and Profit or Loss, and Investment  
Plans for the Coming Year

143  Risk Management and Evaluation
150  Other Necessary Supplements

Social Responsibility 

    15 1

152  Description of Corporate Social Responsibility

154  About Social Charity
159  Environmental Protection, Safety and Health  

Management Instructions

Special Disclosures 

    16 5

166  Summary of Affiliated Enterprises
178  Issuance of Private Placement Securities
178  Acquisition or Disposal of UMC Shares by Subsidiaries
178  Other Necessary Supplements
178  Disclosures  of  Events  Which  May  Have  a  Significant  
Influence  on  Stockholders’  Equity  or  Share  Price,  in  
Compliance  with  Item  3,  Paragraph  2  in  Article  36  of  
the Securities and Exchange Law of the R.O.C.

3

 
 
 
 
 
 
 
Dear Shareholders,

In the decade following the 2008 financial crisis, 2018 can be 
remembered as one of the more turbulent years. Economic 
headwinds emerged from US-China trade tensions, which 
altered  the  landscape  in  international  commerce  as  the 
introduction  of  tariffs  impacted  a  variety  of  imported 
products. Volatility in commodity prices including oil and 
raw materials compounded the uncertainty, leading to a 
rapid decline in global economic growth and offsetting a 
promising start to the first half of the year. Working amid 
difficult macro conditions, the concerted efforts of UMC’s 
employees  continued  to  create  opportunities.  Through 
new breakthroughs in technology development, strategic 
capacity  expansion  and  unwavering  customer  service 
we realized a record high in annual revenue. The foundry 
segment  shipped  a  total  of 7.1  million  8-inch  equivalent 
wafers, 4% more than the previous year. Overall capacity 
utilization  reached  93.1%,  which  was 1.3%  less  than  the 
year  before.  From  a  consolidated  basis,  annual  revenue 
totaled  NTD 151.25  billion,  with  a  gross  margin  of 15.1%, 
and an operating margin of 3.8%. As a result, UMC’s net 
income attributable to the parent was NTD 7.07 billion or an 
earnings per share of NTD 0.58.
UMC  is  c ommi t te d  to  p rov iding  c u s tom e r s  w i th  a 
comprehensive offering of wafer manufacturing solutions 
while working closely with our partners across the supply 
chain  to  focus  on  technology  development  and  capacity 
expansion.  Future  semiconductor  applications  will  be 
fueled  by  cloud  computing,  artificial  intelligence  (AI), 
Internet  of  T hings  (IoT), 5 G  communication  (5G)  and 
automotive  elec tronics  (auto),  where  grow th  can  be 
achieved via the diverse offerings in our logic and specialty 
process  technologies.  The  existing  technology  nodes  on 
logic and specialty technologies are also the focus of UMC's 
investment  strategy.  UMC's 12-inch  wafer  capacity  and 
process technologies in Taiwan, Singapore and China will be 
able to serve market requirements for product mix, wafer  
starts, and manufacturing efficiency to fulfill worldwide 
demand and help UMC penetrate new markets to enhance 
our foundry position.

4444

Looking  ahead,  UMC  will  continue  with  our  corporate 
direction of strengthening our financial performance and 
securing future growth opportunities. The management 
team  will  focus  on:  (1)  valuing  our  customers  with  a 
commitment  towards  customer  success;  (2)  proceeding 
with a prudent investment approach, focusing on product 
mix  optimization  and  increasing  our  market  share;  (3) 
continuous operational excellence by elevating quality and 
productivity; (4) striving to enhance shareholder returns. We 
will also focus on organizational integration to maximize 
efficiency and strengthening our core competencies.

Advanced Node Technologies Development

In  2018,  UMC  spent  NTD 13.03   billion  on  research  and 
development expenses to recruit and develop additional 
engineering talent. The R&D team helped the company to 
achieve  fruitful  results  in  the  development  of  advanced 
and  specialty  technologies.  The  14nm  FinFET  technology 
developed  by  UMC  has  entered  mass  production,  and 
the  yield  has  reached  volume  production  standards.  For 
28nm,  UMC  successfully  developed  its 28HPCU+  process 
technology, and through customer collaboration programs, 
our 28nm has successfully penetrated the Advanced Driving 
Assistance  System  (ADAS)  supply  chain  as  part  of  the 
automotive electronics market. At the same time, we will 
cooperate with customers to develop 22nm ultra-low power 
(uLP)/ ultra-low leakage (uLL) process technology that will 
feature superior transistor performance and an efficient 

cost structure to further enhance the competitiveness of 
our customers' products. This 22nm technology will target 
IoT, auto, industrial automation and a variety of wearable 
products for general-purpose, analog, mixed-signal, RF and 
other related applications.

U M C   S p e c i a l t y   P r o c e s s   Te c h n o l o g y   R e s e a r c h   a n d 

Development

In  the  specialty  technologies  segment,  UMC  is  the  first 
semiconductor  company  to  introduce 80 nm  embedded 
High Voltage (eHV) and Touch and Display Driver Integrated 
(TDDI) manufacturing technology, which has expanded the 
company’s  market  share  as  evidenced  by  the  increasing 
adoption  rate  from  our  customers.  In  response  to  the 
rising mobile demand for high resolution displays in LCD 
and AMOLED, UMC is also actively developing new 40nm 
and  28nm  high  voltage  process  technologies.  Currently, 
the company's 40nm high voltage products have already 
entered mass production. In response to the demand from 
a  wide  range  of  power  management  ICs,  UMC  offers  a 
variety of ultra-high voltage solutions for power chargers, 
LED bulbs, power amplifiers, AC-DC converters and motor 
drives,  etc.  UMC  also  star ted  development  of  a 55 nm 
BCD+NVM technology platform that accommodates green 
energy  needs.  In  MEMS  technology,  UMC  shipped  more 
than  400  million  MEMS  microphone  products  in  2018, 
while  CMOS-MEMS  gas  sensor  ICs  also  entered  volume 
production. UMC has developed RF SOI process technology 
with  unique  substrate  characteristics  to  prevent  high 
frequency distortion and minimize power loss. Currently, 
0.13um and 0.11um RF SOI process technologies are widely 
adopted by smartphone manufacturers and have entered 
mass production. In flash memory technology, 55nm and 
40nm  embedded  f lash  microcontrollers  (MCU)  are  in 
volume production, while 40nm combined with embedded 
SST  super  flash  (SuperFlash®)  memory  has  entered  pilot 
production, providing customers with faster performance 
at higher memory densities. In addition, UMC has started 

5

Letter to Shareholders development  of  an  ultra-fast  embedded  super  f lash 
memory  system  platform  on  28nm.  As  the  marketplace 
evolves  to  advanced  node  technologies,  our  engineering 
team  will  continue  to  innovate  and  develop  new  f lash 
memory solutions with industry partners such as Panasonic 
Japan for resistive memory ReRAM, to meet more stringent 
specification  requirements  from  customers.  UMC  has 
also collaborated with next-generation STT-MRAM leader 
Avalanche to jointly develop and produce a new generation 
of  embedded  magneto-resistive  random  access  memory 
(eMRAM).

UMC  Capital  Expenditure/Patent/Intellectual  Property 

Rights

In 2018, UMC's capital expenditure was USD 650 million, 
mainly for investment in advanced process R&D equipment 
and  capacity  expansion  at  Fab 12 A  in  Tainan,  Fab 12 X 
(USCXM) in Xiamen, China and Fab 8N in SuZhou, China. 
UMC became the first automotive grade IC supplier to be 
certified ISO 22301 for operation and business continuity 
management. We have also implemented a comprehensive 
"automot ive  ser v ice  plan"  to  int roduce  zero - defec t 
standards  to  assist  customers  in  meeting  automotive 
grade quality  requirements. UMC’s  automotive business 
has grown rapidly, and the products we manufacture have 
been widely adopted by world-renowned car manufacturers 
in Japan, Europe, Asia, and the United States. Due to the 
fierce and competitive nature of the auto industry, UMC 
significantly  improved  its  key  technical  capabilities  and 
focused on the layout of patents to protect our intellectual 
property  rights  as  the  number  of  patents  granted  grew 
steadily. In 2018, a total of 423 domestic and foreign patents 
were  obtained,  including 337  US  patents, 56  Republic  of 
China patents, and 30 Chinese patents. The total number 
of  patents  granted  to  UMC  overall  reached 12,991,  which 
established a strong foundation for our process technology 
knowledge  and  intellectual  property  portfolio.  In  order 
to  maintain  its  competitiveness,  UMC  also  significantly 

66

United Microelectronics Corporation  |  Annual Report 2018increased the quality of key technology patent applications 
and  continued  strengthening  customer  ser v ice  and 
competitive advantages to create value in the semi supply 
chain.

Corporate Governance and Corporate Social Responsibility

Focus, Nurture and Continuity are the core beliefs of UMC 
to ensure corporate sustainability, corporate governance 
and corporate social responsibility. UMC’s Board of Directors 
established  the  "Remuneration  Commit tee,"  "Audit 
Committee," "Capital Budget Committee," and "Nomination 
Committee" to deliver objective performance evaluations 
to  enhance  transparency  and  operational  supervision 
to  preser ve  the  best  interests  of  our  shareholders. 
In  2018,  in  addition  to  being  listed  as  a  “DJSI-World” 
constituent of the Dow Jones Sustainability Indices (DJSI) 
for the 11th consecutive year, we have earned the Taiwan 
Corporate Social Responsibility Award, Taiwan Enterprise 
Sustainability Report Award, Green Procurement Award, 
Excellent  Safety  and  Health  Unit  Award,  and  Corporate 

Environmental  Award.  These  honors  and  affirmations 
highlight UMC's collective community efforts in corporate 
social  responsibility,  and  we  are  highly  appreciative 
of  our  customers,  suppliers  and  shareholders  for  their 
support of UMC. This is the biggest driving force for us to 
continue on the path of sustainable business operations. 
UMC has a sound financial structure, a diverse customer 
b a s e ,   e xc e l l e n t   R&D,   w o r l d - cl a s s   m an u f a c t ur i n g 
capabilities, and extensive experience in the semiconductor 
industry. With the joint efforts of all colleagues, we are 
committed  to  implementing  the  company's  established 
strategy,  and  we  are  convinced  that  we  will  be  able  to 
break through the competitive challenges of the foundry 
industry, differentiate our competitiveness, and continue 
to grow our revenue and profit.
I am very grateful to all shareholders for supporting UMC 
over  the  years.  The  management  team  will  continue 
to  strengthen  the  advantages  of  UMC  and  improve  its 
technology,  quality  and  customer  service  to  enhance 
shareholder value and achieve new corporate milestones.

Chairman: Stan Hung	

President: SC Chien	

President: Jason Wang

77

Letter to Shareholders Corporate Profile

9 
10 

Corporate Profile and Date of Establishment
Corporate Milestones

8

United Microelectronics Corporation  |  Annual Report 2018Corporate Profile and Date of Establishment

UMC is a leading global semiconductor foundry that provides 

UMC  has  11  wafer  fabs  located  throughout  Asia,  including 

advanced  technologies  and  manufacturing  services  for 

three  advanced  12-inch  fabs.  Fab  12A  was  Taiwan’s  first  12-

applications spanning every major sector of the IC industry. 

inch fab, and has been in volume production for customer 

Founded in 1980 as Taiwan's first semiconductor company, 

products  since  2002.  This  advanced  facility  consists  of 

UMC  is  a  foundry  leader.  UMC's  comprehensive  foundry 

Phases  1-6  and  is  currently  manufacturing  customer 

solutions enable chip designers to leverage the strength of 

products  using  28nm  High-K/Metal  gate  and  14nm  FinFET 

the company's leading-edge processes, which include 28nm 

technologies.  UMC's  second  12-inch  fab,  Fab  12i,  is  located 

High-K/Metal Gate, 14nm FinFET, mixed signal/RFCMOS, and 

in  Singapore.  This  facility  is  our  specialty  technologies 

a wide range of specialty technologies.

center  that  provides  highly  specialized  processes  on  12-

UMC led the development of the commercial semiconductor 

inch  manufacturing  to  serve  a  diverse  range  of  product 

industry  in  Taiwan.  It  was  the  first  local  company  to  offer 

applications.  United  Semi,  located  in  Xiamen,  China,  is 

foundry services, as well as the first semiconductor company 

southern China's first 12-inch foundry fab and began volume 

to  list  on  the  Taiwan  Stock  Exchange  (1985).  UMC  has  an 

production  in  2016.  United  Semi  serves  China's  vast  IC 

extensive network of service offices in Taiwan, China, Europe, 

market and provides high quality, geographically diversified 

Japan, Korea, Singapore, and the United States to meet the 

manufacturing for our foundry customers.

needs  of  its  global  customer  base.  UMC  will  continue  to 

provide  customers  with  robust  process  technologies  and 

comprehensive  foundry  solutions,  enabling  customers  to 

continuously  strengthen  their  competitive  advantage  in 

Company establishment date: May 22, 1980.

today's rapidly changing industry. 

99

Corporate ProfileCorporate Milestones

May, 1980 

Established

July, 1985 

July, 1995 

  Officially listed on the TWSE

Transformed into a Pure-play Foundry Company

July-September, 1995	 Formed joint ventures with 11 IC design houses from North  

  America to establish three foundry companies

September, 1995 

8-inch fab starts mass production

January, 1996 

0.35mm technology process starts production

October, 1997  

0.25mm technology process starts production

April, 1998 

  Acquires Holtek Semiconductor fab (now known as Fab 8E)	

December, 1998 

  Acquires Nippon Steel Semiconductor Corp. fab  

(renamed UMCJ in 2001)

March, 1999 

0.18mm technology process starts production

November, 1999 

  Official construction begins for UMC's 12-inch fab in Tainan  

Science Park

January, 2000 

  UMC Group 5-in-1 Millennium (Consolidated UMC, United  

Semiconductor Corp. (USC), United Integrated Circuits Corp.  
(UICC), United Silicon, Inc. (USIC) and UTEK Semiconductor  

  Corp. into a single UMC) 

March, 2000   

  Manufactured first IC using all-copper interconnects

May, 2000 

  Manufactured first 0.13mm process IC

September, 2000 

Listed on the New York Stock Exchange

December, 2000 

  Groundbreaking for the world's most advanced 12-inch fab  

in Singapore (UMCi)

January, 2003 

  UMCi announced 12-inch fab equipment move-in

March, 2003 

  Manufactured the First 90nm Process IC

March, 2004   

  UMCi starts mass production

May, 2004 

90nm process is fully verified and starts mass production

July, 2004 

  UMC acquires SiS Microelectronics (now known as Fab 8S)

10

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December, 2004 

  Acquired its subsidiary UMCi and changed its name to Fab 12i

June, 2005 

  Manufactured the first 65nm customer IC

August, 2005  

90nm wafer shipments exceed 100,000

June, 2006 

  UMC is the first semiconductor manufacturer in the world to 

complete QC-080000 IECQ HSPM certification for all  
company-wide sites

November, 2006 

  Manufactured the first 45nm IC

January, 2007 

Expanded production site and completed a New R&D building  
in Southern Taiwan Science Park

September, 2008 

Listed as a constituent stock by Dow Jones Sustainability Indexes

October, 2008 

  Announces foundry industry's first 28nm SRAMs

April, 2009 

  Delivers customer ICs produced on its high performance 40nm  

logic technology

December, 2009 

  Announces completion of tender offer to UMC Japan

May, 2010 

Celebrated 30th Anniversary

December, 2010 

12-inch fab Fab 12A Phase 3 begins volume production

October, 2011  

28nm process begins pilot production

May, 2012 

  Groundbreaking ceremony for Fab 12A's new Phase 5 & 6  

in Tainan Science Park

March, 2013 

  Acquired HeJian Fab based in Suzhou, China

May, 2013 

Established its Specialty Technology Center of Excellence  
in Singapore 

August, 2014   

Joins Fujitsu’s new foundry company 

March, 2015 

  Groundbreaking of United Semi (Xiamen) Fab 

November, 2016 

  Holds grand opening ceremony for new 12-inch fab in Xiamen,  
  China and the fab starts mass production 

February, 2017 

Enters mass production for 14nm customer ICs 

June, 2018 

Board approves 100% acquisition of MIFS fab from Fujitsu 

11

Corporate Profile 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12

United Microelectronics Corporation  |  Annual Report 2018Corporate Governance Report 

Corporate Organization
Directors’ and Managers’ Information
Corporate Governance Practices
Certified Public Accountant (CPA) Fee Information
Information of CPA Change

14 
16 
38 
95 
96 
97  UMC’s  Chairman,  Presidents,  Chief  Financial  Officer,  and  Managers  in  
Charge  of  Its  Finance  and  Accounting  Operations  Did  Not  Hold  Any 
Positions  in  UMC’s  Independent  Auditing  Firm  or  Its  Affiliates  in  the  
Most Recent Year
Change in Shareholding of Directors, Managers and Major Shareholders  
Who Own 10% or More of UMC Shares
100   Relationship Among the Top Ten Shareholders
101  Shares  Held  by  the  Company,  Directors,  Managers  and  Companies 
Directly or Indirectly Controlled by the Company, and the Comprehensive  
Shareholding Ratio Based on Combined Calculation

98 

13

Corporate Governance Report 
 
 
 
 
 
Corporate Organization 

Board of Directors
Chairman

Audit Committee

 Auditing

Remuneration Committee

President

Capital Budget Committee

Nominating Committee

Foreign  

Global Sales & 

Manufacturing 

Technology 

Engineering 

Subsidiaries 

Marketing

Integration

Development

Service

Digital

Quality & 

Reliability 

Assurance

Organizational Functions

Foreign Subsidiaries
•	 Responsible  for  client  and  regional  market  development  in  the  
  Americas, Europe, Japan and Korea, and provide technical support  
  and services.

Engineering Service
•	 Responsible  for  product  engineering,  malfunction    and  material  
analysis,  product  introduction  and  yield  improvement  for  all  
fabs.

Global Sales and Marketing
•	 Responsible for global customer and operations management and  
  market development, and provide technical support and services.
•	 Undertake  UMC  's  objectives,  analyze  market  information  and  
integrate  UMC  ‘s  internal  resources  and  external  competition.  
  F o r m u l a t e   t e c h n i c a l   d e v e l o p m e n t   b l u e p r i n t s ,   s t r a t e g i c  
recommendations and advanced market development to serve as  
reference for UMC 's future business direction.

Manufacturing Integration
•	 Responsible for managing 8-inch and 12-inch  operations, product  
  manufacturing,  manufacturing  technology  development,  and  

integration of production and services.

Technology Development
•	 D esign,  develop  and  manage  intellec t u al  prop er t y  core  for  
  customer product needs.
•	 Research  and  develop  advanced  process  technology  platforms,  
  and develop and apply advanced material technology platforms.
•	 Research  and  develop  technolo gies  for  var iou s  mat ure  and  
  special process platforms.

•	 Provide company-wide photomask service, management, quality  

control and improvements.

•	 Provide  company-wide  back-end  encapsulation  testing,  quality  

control and improvements.

Digital
•	 Through  innovative  digital  technologies,  combine  IoT,  big  data  
and artificial intelligence and integrate semiconductor expertise  
(OT)  and  infor mation  technology  (IT).  Constr uc t  data-dr iven  
advanced semiconductor smart manufacturing systems to improve  
  produc t  quality  and  y ield.  Improve  and  optimize  produc tion  
efficiency  and  production  costs  to  achieve  world-class  quality  
  production services. Ensure information security and service quality  
to achieve customer satisfaction, company operational efficiency,  
and research and development momentum.

Quality and Reliability Assurance
•	 Responsible for comprehensive quality management, strengthening  
  quality awareness and improving product reliability testing to meet  
customer demand for quality and improve quality control for mass  

  products.

14

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate & 

Manufacturing 

Operation 

Planning

Resource 

Integration

Finance

Legal, IP & 

Compliance

Human 

Resources

New Business 

Development 

Corporate and Operation Planning

Human Resources

•	 Develop capacity plans and operational resource integration,  
  and  assist in production and sales coordination.

Manufacturing  Resource Integration
•	 Responsible for company-wide procurement, import and export,  
  warehousing management, plant operations, plant expansion  
  planning and environmental safety and risk management.

•	 Responsible  for  the  selection,  utilization,  cultivation  and  
retention of human resource and ensuring a suitable working  
environment for employees.

•	 Responsible for ensuring the physical safety of UMC 's personnel,   
  affairs and objects through tangible actions. 

New Business Development

•	 Responsible  for  developing,  assessing  and  managing  new  

Finance

ventures. 

•	 Responsible for UMC 's finances and accounting management,  
  and serve as spokesperson for UMC.

Legal, Intellectual Property and Compliance
•	 Responsible for domestic and international intellectual property  
rights management, legal affairs, and compliance with domestic  

  and foreign laws and regulations.

Audit
•	 Responsible for assisting the Board of Directors and managers to  
independently  and  objectively  assess  the  effectiveness  of  
internal control system designs and implementation. Provide  
timely recommendations for improvement to ensure compliance  

  with UMC 's policies and relevant laws and regulations.

15

Corporate Governance Report 
 
 
 
 
 
 
Directors' and Managers' Information
Directors’ Information

Title

Nationality 
/Place of 
Incorporation

Name

Gender

Chairman

R.O.C.

Stan Hung Male

Date Elected
(Date Assumed)


2018.06.12 
<2008.07.16>

Term 
Expires

Shareholding When 
Elected

Present
Shareholding

Common 
Shares

%

Common 
Shares

%

2021.06.11

16,341,452

0.13

39,916,452

0.32

Independent 
director

R.O.C.

Cheng-Li 
Huang

Male

2018.06.12
<2009.06.10>

2021.06.11

Independent 
director

R.O.C.

Wenyi Chu

Female

2018.06.12
<2015.06.09>

2021.06.11

Independent 
director

R.O.C.

Lih J. Chen Male

2018.06.12
<2018.06.12>

2021.06.11

Independent 
director

R.O.C.

Jyuo-Min 
Shyu

Male

2018.06.12
<2018.06.12>

2021.06.11

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

16

United Microelectronics Corporation  |  Annual Report 2018Spouse & Minor
Shareholding

Common 
Shares

%

1,269,435

0.01

Experience (Education)

Selected Current Position at UMC and Other Companies

Chairman, UMC
Bachelor in Accounting,  
Tamkang University

Chairman & Chief Strategic Officer, UMC; 
Chairman, Fortune Venture Capital Corp.; 
Chairman, TLC Capital Co., Ltd.; 
Chairman, Faraday Technology Corporation; 
Director, Triknight Capital Corporation; 
Chairman, HeJian Technology (Suzhou) Co., Ltd.; 
Chairman, UMC Capital Corp.; 
Director, United Microelectronics (Europe) B.V.; 
Director, UMC Capital (USA)

0

0

0

0

0

0

0

0

Professor, Department of Accounting, 
Tamkang University
Ph.D. of Business School, the University  
of Warwick

Professor, Department of Business 
Administration, National Taiwan University
Ph.D. of London Business School

Academician, Academia Sinica
Distinguished Chair Professor, National 
Tsing Hua University
Ph.D. in Physics, University of California, 
Berkeley

Professor, Department of Computer Science, 
National Tsing Hua University
Minister, Ministry of Science and Technology 
President, Industrial Technology Research 
Institute
Ph.D. in Electrical Engineering and 
Computer Science, University of California, 
Berkeley

None

None

None

Independent director, Inventec Corporation;  
Director, Iridium Medical Technology Co., Ltd.;  
Director, GeoThings, Inc.;  
Director, Modern Classic Limited

17

Corporate Governance ReportTitle

Nationality 
/Place of 
Incorporation

Name

Gender

Date Elected
(Date Assumed)


Director

R.O.C.
U.S.A.

Chung Laung 
Liu

Male

2018.06.12
<2006.06.12>

2021.06.11

Term 
Expires

Shareholding When 
Elected

Present  
Shareholding

Common 
Shares

0

%

0

Common 
Shares

0

%

0

Director

R.O.C.

Ting-Yu Lin

Male

Director

R.O.C.

N/A

Hsun Chieh 
Investment Co., 
Ltd.

2018.06.12
<2009.06.10>

2018.06.12
<1995.06.21>

2021.06.11

12,547,222

0.10

12,547,222

0.10

2021.06.11

441,371,000

3.50

441,371,000

3.55

R.O.C.

Representative:
SC Chien

Male

2018.06.12
<2016.03.01>

2021.06.11

1,894,648

0.02

6,094,648

0.05

R.O.C.

Director

R.O.C.

Male

Former 
representative:
Chitung Liu

N/A

Silicon 
Integrated 
Systems Corp.

2017.09.15
<2007.12.21>

2018.06.12
<2005.06.13>

2018.06.11

1,840,217

0.01

N/A

N/A

2021.06.11

315,380,424

2.50

285,380,424

2.30

U.S.A.

Representative:
Jason Wang

Male

2018.06.12
<2015.06.09>

2021.06.11

0

0

6,600,000

0.05

Former 
director

R.O.C.

N/A

UMC Science 
and Culture 
Foundation

2015.06.09
<2012.06.12>

2018.06.11

10,000

0.00

N/A

N/A

Note 1:  Present shareholding figures are actual number of shares held on February 28, 2019.

Note 2:  Directors’ election date is the same date they assumed their positions.

Note 3:  Directors are not spouses or relatives within the second degree of kinship of other managers and directors.

18

United Microelectronics Corporation  |  Annual Report 2018Spouse & Minor 
Shareholding

Common 
Shares

0

%

0

Experience (Education)

Selected Current Position at UMC and Other Companies

Academician, Academia Sinica
Honorary Chair Professor, National Tsing 
Hua University
Sc.D. of Massachusetts Institute of 
Technology

Chairman, TrendForce Corp.;  
Independent director, Microelectronics Technology Inc.;  
Independent director, Powerchip Technology Corporation;  
Independent director, Far EasTone Telecommunications Co., Ltd.; 
Independent director, Accton Technology Corporation;  
Director, Macronix International Co., Ltd.;  
Director, UBI Pharma Inc.;  
Director, GeoThings, Inc.;  
Supervisor, Andes Technology Corporation

0

0

Chairperson, Sunrox International Inc.
Master in International Finance, Meiji 
University

N/A

N/A

N/A

None

N/A

0

0

Director, UMC
Bachelor in Chemical Engineering, National 
Taiwan University

President, UMC;  
Director, Fortune Venture Capital Corp.;  
Director, TLC Capital Co., Ltd.;  
Director, Wavetek Microelectronics Corporation;  
Director, Epistar Corp.;  
Director, United Semiconductor (Xiamen) Co., Ltd.;  
Director, UMC Capital Corp.

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

0

0

Director, UMC
Business Administration, San Jose State 
University

President, UMC;  
Director, Fortune Venture Capital Corp.;  
Director, TLC Capital Co., Ltd.;  
Director, Wavetek Microelectronics Corporation;  
Director, UMC Group (USA);  
Director, United Microelectronics (Europe) B.V.;  
Director, UMC Capital Corp.;  
Director & President, UMC Capital (USA);  
Director, United Microtechnology Corporation (New York);  
Director, United Microtechnology Corporation (California);  
Director, Sino Paragon Limited

N/A

N/A

N/A

N/A

Note 4: Directors did not hold shares through other parties.
Note 5:  The Company’s 14 th term of directors was elected at the Annual General Meeting on June 12, 2018 with Lih J. Chen and Jyuo-Min Shyu newly  

elected as independent directors.

19

Corporate Governance Report 
Major Shareholders of UMC’s Institutional Shareholders

Name of Institutional Shareholders Major Shareholders (Holding Percentage)

Hsun Chieh Investment Co., Ltd.

Hsieh Yong Capital Co., Ltd. (63.48%); UMC (36.49%)

Silicon Integrated Systems Corp.

UMC (19.70%);  CA Indosuez (Switzerland) SA (1.65%); Mu-Chuan Lin (1.58%); Hsun Chieh Investment Co., 
Ltd. (1.47%); Hsing-Sen Liu (1.37%); Vanguard Emerging Markets Stock Index Fund, a series of Vanguard 
International Equity Index Funds (1.33%); Pi-Ling Li (1.32%); JPMorgan Chase Bank N.A., Taipei Branch in 
custody  for  Vanguard  Total  International  Stock  Index  Fund,  a  series  of  Vanguard  Star  Funds  (0.92%); 
Fang-Lung Huang (0.85%); Liang Xun Investment Co., Ltd. (0.60%)

UMC Science and Culture 
Foundation

N/A

Major Shareholders of Institutional Shareholders Whom Are Major Shareholders of UMC's 
Institutional Shareholders

Name of Institutional Shareholders Major Shareholders (Holding Percentage)

Hsieh Yong Capital Co., Ltd.

Unimic ron Te chnolo gy Cor p. (16.67 %); Si licon Integrated Sys tems Cor p. (16.67 %); 
Novatek Mic roelec tronics Cor p. (15.15%); Faraday Technology Cor poration (12.12%);   
King Yuan Elec tronics Co., Ltd . (7.58%)

20

United Microelectronics Corporation  |  Annual Report 2018Number of 
Companies 
also Serves as 
Independent 
Director for

Directors’ Professional Knowledge and Independence Information

Criteria

Five or More Years Experience or Professional Qualification

Independence Status (Note)

Lecturer or Above 
in Business, Law, 
Finance, Accounting 
or Corporate Business 
Related Fields

Qualification of Justice, 
Procurator, Attorney, 
CPA, Specialist or 
Technician of National 
Examination in 
Corporate Business 
Related Fields

Experience 
in Business, 
Law, Finance, 
Accounting or 
Corporate Business 
Related Fields

1

2

3

4

5

6

7

8

9

10

 Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

-

-

-

-

-

-

-

-

-

-

0

0

0

0

0

0

1

4

0

Name

Stan Hung

SC Chien

Jason Wang

Cheng-Li Huang

Wenyi Chu

Lih J. Chen

Jyuo-Min Shyu

Chung Laung Liu

Ting-Yu Lin

Notes:  For those directors who match the condition listed below during and two years before assuming period, “ 

 ” is marked in the appropriate space. 

(1) 

Is not an employee of the Company or its affiliates.

(2)  Is not a director or supervisor of the Company or its affiliates. (The same does not apply, however, in cases where the person is an independent  

director of the Company, its parent company, or any subsidiary, as appointed in accordance with the laws of Taiwan or with the laws of the  

country of the parent company or subsidiary.)

(3)  Does not directly or indirectly own more than 1% of the Company’s outstanding shares, nor is one of the top ten non-institutional shareholders of  

the Company.

(4)  Is not a spouse, relative within the second degree of kinship or lineal relative within the third degree of kinship of any person specified in the  

preceding three columns.

(5)  Is not a director, supervisor or employee of a legal entity which directly owns more than 5% of the Company’s issued shares, nor a director,  

supervisor or employee of the top five legal entities which are owners of the Company’s issued shares.

(6)  Is not a director, supervisor, or manager of a company which has a business relationship with the Company, nor a shareholder who owns more  

than 5% of such a company.

(7)  Is not an owner, partner, director, supervisor, manager or spouse of any sole proprietor business, partnership, company or institution which has  

provided the Company and its affiliates with financial, business consulting, or legal services, provided that this restriction does not apply to any  

  member of the compensation committee who exercises powers pursuant to Article 7 of the “Regulations Governing the Establishment and  

Exercise of Powers of Compensation Committee of Companies whose Stock is Listed on the TWSE or Traded on the GTSM.”

(8)  Is not a spouse or relative within the second degree of kinship of any of the directors.

(9)  Is not under any condition pursuant to Article 30 of the Company Act.

(10) Is not a government agency, legal entity or its representative pursuant to Article 27 of the Company Act.

21

Corporate Governance Report 
   
 
   
 
   
 
 
   
 
 
   
 
   
 
 
   
 
   
 
 
   
 
   
 
 
   
 
   
 
 
   
 
   
 
 
   
 
   
 
 
   
 
   
 
   
 
 
Managers’ Information

Title

Nationality Name

Gender Date Elected 

Present Shareholding

(Date 
Assumed)

Spouse &  
Minor Shareholding

Common 
Shares

%

Common 
Shares

%

Chairman & Chief 
Strategic Officer

R.O.C.

Stan Hung

Male

2008.07.16

39,916,452

0.32

1,269,435

0.01

President

R.O.C.

SC Chien

Male

2004.1 1 . 23

6,094,648

0.05

President

U.S.A.

Jason Wang

Male

201 4 .12.24

6,600,000

0.05

Senior Vice 
President

Senior Vice 
President & 
General Counsel

R.O.C.

Ming Hsu

Male

201 5 . 06.08

583,000

0.00

R.O.C.

Lucas S Chang

Male

201 8 .01. 01

600,000

0.00

0

0

0

0

0

0

0

0

Vice President

R.O.C.

TS Wu

Male

2013 .01.01

299,809

0.00

304

0.00

Vice President

R.O.C.

C C Hsu

Male

2013 .01.01

1,152,068

0.01

Vice President

R.O.C.

M C Lai

Male

201 5 . 03.30

626,863

0.01

Vice President

R.O.C.

G C Hung

Male

201 5 . 01.28

600,791

0.00

Vice President

R.O.C.

Wenchi Ting

Male

201 7. 01.03

600,000

0.00

Vice President

R.O.C.

Jerry CJ Hu

Male

2013 .04.02

605,000

0.00

Vice President

R.O.C.

Y S Shen

Male

201 4 .01.13

75,000

0.00

0

0

0

0

0

0

0

0

0

0

0

0

Vice President

R.O.C.

Steven S Liu

Male

201 7.04.24

  600,000

 0.00

 0

0 

Vice President

R.O.C.

SR Sheu

Male

2008.07.16

1,418,892

0.01

786,017

0.01

22

United Microelectronics Corporation  |  Annual Report 2018Experience/Education

Selected Current Position at Other Companies

Chairman & Chief Strategic Officer, UMC
Bachelor in Accounting, Tamkang University

Chairman, Fortune Venture Capital Corp.; 
Chairman, TLC Capital Co., Ltd.; 
Chairman, Faraday Technology Corporation; 
Director, Triknight Capital Corporation;
Chairman, HeJian Technology (Suzhou) Co., Ltd.; 
Chairman, UMC Capital Corp.; 
Director, United Microelectronics (Europe) B.V.;
Director, UMC Capital (USA)

President, UMC
Bachelor in Chemical Engineering, National 
Taiwan University

Director, Fortune Venture Capital Corp.; Director, TLC Capital Co., Ltd.; 
Director, Wavetek Microelectronics Corporation; Director, Epistar Corp.; 
Director, United Semiconductor (Xiamen) Co., Ltd.; Director, UMC Capital Corp.

President, UMC
Business Administration, San Jose State 
University

Director, Fortune Venture Capital Corp.; Director, TLC Capital Co., Ltd.; 
Director, Wavetek Microelectronics Corporation; Director, UMC Group (USA); 
Director, United Microelectronics (Europe) B.V.; Director, UMC Capital Corp.; 
Director & President, UMC Capital (USA); 
Director, United Microtechnology Corporation (New York); 
Director, United Microtechnology Corporation (California); 
Director, Sino Paragon Limited

Senior Vice President, UMC
Master in Science Electrical Engineering, 
University of Southern California

None

Senior Vice President & General Counsel, UMC
J.D. in Law, University of Santa Clara

Director, Alpha and Omega Semiconductor Limited;  
Director, Reebotic Inc.

Vice President, UMC
Master in Electronic Engineering, National Chiao 
Tung University

None

Vice President, UMC
Master in Materials Science & Engineering, 
National Tsing Hua University

Vice President, UMC
Bachelor in Materials Science & Engineering, 
National Tsing Hua University

Vice President, UMC
Master in Chemical Engineering, National 
Taiwan University

Vice President, UMC
Ph.D. in Computer Information Science, 
University of Texas at Austin

Vice President, UMC
Ph.D. in Materials Science & Engineering, 
Stanford University

Vice President, UMC
Bachelor in Electronic Engineering, Feng Chia 
University

Vice President, UMC
Master in Science Electrical Engineering, 
University of Southern California

Vice President, UMC
Master in Electrical Engineering, The University 
of New Mexico

Vice Chairman, United Semiconductor (Xiamen) Co., Ltd.

None

None

Director, Asia Pacific Microsystems, Inc.

None

Director, Faraday Technology Corporation

None

None

23

Corporate Governance ReportManagers’ Information(Continue)

Title

Nationality Name

Gender Date Elected 

Present Shareholding

(Date 
Assumed)

Spouse &  
Minor Shareholding

Common 
Shares

%

Common 
Shares

%

Vice President

R.O.C.

M L Liao

Male

2008.07.16

2,640,809

0.02

199,138

0.00

Vice President

R.O.C.

S S Hung

Male

2013 .01.01

416,406

0.00

Vice President

R.O.C.

Francia Hsu

Female

2016 . 03.16

280,000

0.00

Vice President & 
Chief Financial 
Officer

R.O.C.

Chitung Liu

Male

2005.10.20

2,440, 2 1 7

0.02

0

0

0

0

0

0

R.O.C.

Eric Chen

Male

2 0 1 1 . 02.14

600,000

0.00

0

0

R.O.C.

Johnson Liu

Male

20 1 4 .11.04

506, 413

R.O.C.

T W Liu

Male

2 0 1 5 .09.16

266,260

0.00

0.00

R.O.C.

S F Tzou

Male

2013.01.01

1,2 7 9,108

0.01

1,631

0.00

0

0

0

0

R.O.C.

Le Tien Jung

Male

2013.01.01

250,000

0.00

20,000

0.00

R.O.C.

Yau Kae Sheu

Male

2014.01.13

250,000

0.00

0

0

R.O.C.

J Y Wu

Male

2014.05.01

250, 1 9 1

0.00

587

0.00

Vice President 
& Chief Human 
Resources Officer

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

24

United Microelectronics Corporation  |  Annual Report 2018Experience/Education

Selected Current Position at Other Companies

Vice President, UMC
Bachelor in Electronic Engineering, National 
Taiwan Institute of Technology

Vice President, UMC
Bachelor in Materials Science & Engineering, 
National Tsing Hua University

None

None

Vice President, UMC
Master in Industrial Engineering, National Chiao 
Tung University

None

Vice President & Chief Financial Officer, UMC
EMBA in Business Administration, National 
Taiwan University

Vice President & Chief Human Resources Officer, 
UMC
EMBA in Finance, National Taiwan University

Director, Fortune Venture Capital Corp.; 
Director, TLC Capital Co., Ltd.;
Director, Unimicron Technology Corp.; 
Director, Novatek Microelectronics Corp.; 
Director, HeJian Technology (Suzhou) Co., Ltd.; 
Director, UMC Group (USA); 
Director, Green Earth Limited; 
Director, ECP Vita Pte. Ltd.; 
Director, Omni Global Limited; 
Director, UMC Capital Corp.;
Director, United Microchip Corporation; 
Director, UMC Technology Japan Co., Ltd.; 
Director, Sino Paragon Limited; 
Director, Mie Fujitsu Semiconductor Limited; 
Director, United Microtechnology Corporation (New York);
Director, United Microtechnology Corporation (California)

Director, United Semiconductor (Xiamen) Co., Ltd.;  
Director, Best Elite International Limited

Associate Vice President, UMC
Bachelor in Physics, Tamkang University

Associate Vice President, UMC
Bachelor in Electrical Engineering, National 
Central University

Associate Vice President, UMC
Master in Materials Science & Engineering, 
National Tsing Hua University

Associate Vice President, UMC
Ph.D. in Electrical Engineering, University of 
Texas at Austin

Associate Vice President, UMC
Master in Electrical Engineering, University of 
Missouri

Associate Vice President, UMC
Master in Physics, Tamkang University

None

None

None

None

None

None

25

Corporate Governance ReportManagers’ Information(Continue)

Title

Nationality Name

Gender Date Elected 

Present Shareholding

(Date 
Assumed)

Common 
Shares

%

Common 
Shares

Spouse &  
Minor Shareholding

%

0

R.O.C.

Osbert Cheng

Male

2014.08.01

250,938

0.00

0

R.O.C.

Steven Hsu

Male

2016.03.16

250,000

0.00

2,889

0.00

Singapore

Purakh Raj Verma Male

2017.08.09

 0

 0

Associate Vice 
President

R.O.C.

Chih Chong 
Wang

Male

2018.01.04

 250,000

 0.00

R.O.C.

C Y Hsu

Male

20 1 7. 0 4 .1 7

4,267

0.00

R.O.C.

Ji Fu Kung

Male

2013.01.01

250,741

0.00

R.O.C.

C P Yen

Male

2015.09.16

352,645

0.00

0 

 0

0

0

0

0 

0 

0

0

0

R.O.C.

Mindy Lin

Female

2018.05.14

627,925

0.01

781,408

0.01

R.O.C.

Pang Min Wang Male

2018.09.14

178,126

 0.00

16

0.00 

R.O.C.

Stephen K Chen Male

2015.09.16

N/A

N/A 

 N/A

N/A

R.O.C.

Max Chao

Male

20 15 . 0 1 .19

N/A

N/A 

 N/A

 N/A

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Former Senior Vice 
President

Former Vice 
President

Note 1: Stephen K Chen and Max Chao, former managers, were dismissed in 2018.

Note 2: Present shareholding figures are actual number of shares held on February 28, 2019.

Note 3: Managers did not hold shares through other parties.

Note 4: Managers are not spouses or relatives within the second degree of kinship of other managers.

Note 5: Managers’ election date is the same date they assumed their positions.

26

United Microelectronics Corporation  |  Annual Report 2018Experience/Education

Selected Current Position at Other Companies

Associate Vice President, UMC
Ph.D. in Electrical Engineering, National Chiao 
Tung University

None

Associate Vice President, UMC
Master in Electronic Engineering, National Chiao 
Tung University

None

Associate Vice President, UMC
Master in Microelectronics, Nanyang 
Technological University

Associate Vice President, UMC
Ph.D. in Electrical Engineering, National Chiao 
Tung University

Associate Vice President, UMC
EMBA, National Chiao Tung University

Associate Vice President, UMC
Ph.D. in Materials Science, University of 
Connecticut

Associate Vice President, UMC
Master in Engineering Science, National Cheng 
Kung University

None

None

None

None

Director, Nexpower Technology Corp.

Associate Vice President, UMC
Master in Business Administration, University of 
Leicester

None

Associate Vice President, UMC
Master in Integrated Manufacturing Systems 
Engineering, North Carolina State University

Former Senior Vice President, UMC
Master in Materials Science & Engineering, 
National Tsing Hua University

Former Vice President, UMC
Ph.D. in Materials Science, National Sun Yat-Sen 
University

None

N/A

N/A

27

Corporate Governance ReportRemuneration Paid to Directors (Including Independent Directors), Presidents and  
Vice Presidents
Directors’ Remuneration (Including Independent Directors’)

Title

Name

Base Compensation (A)

Severance Pay and 
Pensions(B)

 Director's Remuneration

Business Execution 
Expenses(D)

Ratio of Total 
Remuneration 
(A+B+C+D) to Net 
Income (%)

Compensation to 
Directors
(C)

The
Company

The
Company

Companies
 in the
 Consolidated 
Financial 
Statements

The
Company

Companies
 in the
 Consolidated 
Financial 
Statements

Companies
 in the
 Consolidated 
Financial 
Statements

The
Company

The
Company

Companies
 in the
 Consolidated 
Financial 
Statements

Companies
 in the
 Consolidated 
Financial 
Statements

Chairman

Stan Hung

Independent 
director

Independent 
director

Independent 
director

Independent 
director

Cheng-Li Huang

Wenyi Chu

Lih J. Chen

Jyuo-Min Shyu

Director

Chung Laung Liu

Director

Ting-Yu Lin

 0

1,080  

 0

0 

7,624

7,624

5,760

5,875

0.19

0.21

Director

Director

Hsun Chieh 
Investment Co., Ltd

Representative:
SC Chien

Former 
representative:
Chitung Liu

Silicon Integrated 
Systems Corp.

Representative:
Jason Wang

Former director UMC Science and 

Culture Foundation

In addition to the information disclosed in the table above, has any Director of the Company provided services to any of the companies included in the Financial 

Statements and received compensation for such services (e.g. provided consultation services in a non-employee capacity): None.

28

United Microelectronics Corporation  |  Annual Report 2018Compensation Earned by a Director Who Is an Employee of UMC or UMC’s Consolidated Entities

Employees' Profit Sharing Bonus (G)

Ratio of  Total Compensation 
(A+B+C+D+E+F+G) to Net Income 
(%)

Base Compensation 
Bonuses
and Special
Expenses etc. (E)

The
Company

Companies
 in the
 Consolidated 
Financial 
Statements

The
Company

Severance Pay
and
Pensions (F)

Companies  
in the  
Consolidated                              
Financial  
Statements

The
Company

Companies in the  
Consolidated                              
Financial Statements

The
Company

Cash

Stock

Cash

Stock

Companies in 
the Consolidated                              
Financial 
Statements

In Thousand NTD

Compensa
tion from
Other
Non-Conso
lidated
Entities
Invested
by the
Company

277,785

286,811

398

398

14,750

0

14,750

0

4.33

4.48

4,135 

29

Corporate Governance ReportRemuneration Paid to Directors (Including Independent Directors), Presidents and Vice Presidents(Continue)

Remuneration Range for Each 
Director in the
Company

Sum of the First 4 Items (A+B+C+D)

Sum of the First 7 Items (A+B+C+D+E+F+G)

Names of Directors

The
Company

Stan Hung 
Cheng-Li Huang 
Wenyi Chu 
Lih J. Chen 
Jyuo-Min Shyu 
Chung Laung Liu 
Ting-Yu Lin
Jason Wang 
SC Chien 
Chitung Liu 
Hsun Chieh Investment 
Co., Ltd.  
Silicon Integrated 
Systems Corp. 
UMC Science and 
Culture Foundation

Companies
 in the
Consolidated 
Financial 
Statements

Stan Hung 
Cheng-Li Huang 
Wenyi Chu 
Lih J. Chen 
Jyuo-Min Shyu 
Chung Laung Liu 
Ting-Yu Lin 
Jason Wang 
SC Chien 
Chitung Liu 
Hsun Chieh  
Investment Co., Ltd.  
Silicon Integrated  
Systems Corp. 
UMC Science and  
Culture Foundation

The
Company

Cheng-Li Huang
Wenyi Chu
Lih J. Chen 
Jyuo-Min Shyu
Chung Laung Liu 
Ting-Yu Lin 
Hsun Chieh  
Investment Co., Ltd. 
Silicon Integrated 
Systems Corp.  
UMC Science and 
Culture Foundation

Companies
 in the
 Consolidated 
Financial 
Statements

Cheng-Li Huang 
Wenyi Chu 
Lih J. Chen 
Jyuo-Min Shyu 
Chung Laung Liu 
Ting-Yu Lin 
Hsun Chieh Investment Co., Ltd. 
Silicon Integrated Systems Corp.  
UMC Science and  
Culture Foundation

Lower than NTD 2,000,000

NTD 2,000,000 (inclusive)~  
NTD 5,000,000 (exclusive)

NTD 5,000,000 (inclusive)~  
NTD 10,000,000 (exclusive)

NTD 10,000,000 (inclusive)~ 
NTD 15,000,000 (exclusive)

NTD 15,000,000 (inclusive)~  
NTD 30,000,000 (exclusive)

NTD 30,000,000 (inclusive)~  
NTD 50,000,000 (exclusive)

NTD 50,000,000 (inclusive)~  
NTD 100,000,000 (exclusive)

NTD 100,000,000 or More

 Chitung Liu

Chitung Liu

 SC Chien

 SC Chien

Jason Wang

Jason Wang

Stan Hung

13

Stan Hung

13

Total

13

13

30

United Microelectronics Corporation  |  Annual Report 2018  
  
 
  
 
 
 
 
  
  
  
31

Corporate Governance ReportRemuneration Paid to Directors (Including Independent Directors), Presidents and Vice Presidents(Continue)

Compensation Paid to Presidents and Vice Presidents

Title

Name

Salary(A)

Severance Pay and Pensions(B)

Bonuses and
Special Expenses etc.
(C)

The
Company

Companies in the  
Consolidated                              
Financial 
Statements

The
Company

Companies in the  
Consolidated                              
Financial 
Statements

The
Company

Companies in the  
Consolidated                              
Financial 
Statements

71,298

92,391

3,938

3,938

444,576

456,308

Chairman & Chief 
Strategic Officer

Stan Hung

President

President

Senior Vice 
President

Senior Vice 
President & 
General Counsel

SC Chien

Jason Wang

Ming Hsu

Lucas S Chang

Vice President

TS Wu

Vice President

Vice President

C C Hsu

M C Lai

Vice President

G C Hung

Vice President

Wenchi Ting

Vice President

Jerry CJ Hu

Vice President

Y S Shen

Vice President

Steven S Liu

Vice President

SR Sheu

Vice President

M L Liao

Vice President

S S Hung

Vice President

Francia Hsu

Vice President & 
Chief Financial 
Officer

Vice President 
& Chief Human 
Resources Officer

Chitung Liu

Eric Chen

Former Senior Vice 
President

Stephen K Chen

Former Vice 
President

Max Chao

32

United Microelectronics Corporation  |  Annual Report 2018Employees' Profit Sharing Bonus(D)

Ratio of  Total Compensation (A+B+C+D) 
to Net Income (%)

 In Thousand NTD

Compensation from Other Non-
Consolidated Entities Invested 
by the Company

The
Company

Companies in the  
Consolidated                              
Financial Statements

The
Company

Companies in the  
Consolidated                              
Financial Statements

Cash

Stock

Cash

Stock

50,150

0  

50,150

 0 

8.06

8.52

   2,950

33

Corporate Governance Report 
  
 
  
 
 
  
Remuneration Paid to Directors (Including Independent Directors), Presidents and Vice Presidents(Continue)

Compensation Range for Each President 
and Vice President in the Company

The Company

Names of Presidents and  
Vice Presidents

Companies in the Consolidated                              
Financial Statements

Lower than NTD 2,000,000

NTD 2,000,000 (inclusive)~  
NTD 5,000,000 (exclusive)

NTD 5,000,000 (inclusive)~  
NTD 10,000,000 (exclusive)

NTD 10,000,000 (inclusive)~ 
NTD 15,000,000 (exclusive)

NTD 15,000,000 (inclusive)~  
NTD 30,000,000 (exclusive)

NTD 30,000,000 (inclusive)~  
NTD 50,000,000 (exclusive)

NTD 50,000,000 (inclusive)~  
NTD 100,000,000 (exclusive)

NTD 100,000,000 or More

Total

SR Sheu, Max Chao

SR Sheu, Max Chao

 C C Hsu

C C Hsu

Ming Hsu, Lucas S Chang, TS Wu, M C Lai 
G C Hung, Wenchi Ting, Jerry CJ Hu, Y S Shen 
Steven S Liu, M L Liao, S S Hung,  Francia Hsu 
Chitung Liu, Eric Chen, Stephen K Chen

Ming Hsu, Lucas S Chang, TS Wu, M C Lai 
G C Hung, Wenchi Ting, Jerry CJ Hu, Y S Shen 
Steven S Liu, M L Liao, S S Hung,  Francia Hsu 
Chitung Liu, Eric Chen, Stephen K Chen

 SC Chien

Jason Wang

Stan Hung

21

SC Chien 

Jason Wang

Stan Hung

21

34

United Microelectronics Corporation  |  Annual Report 2018 
 
  
 
Remuneration Paid to Directors (Including Independent Directors), Presidents and Vice Presidents(Continue)

Employees’ Profit Sharing Bonus Paid to Management Team

Title

Name

Stock

Cash

Total

In Thousand NTD

Ratio of Total Profit Sharing 
Bonus to Net Income (%)

Chairman & Chief Strategic 
Officer

Stan Hung

President

President

SC Chien

Jason Wang

Senior Vice President

Ming Hsu

Senior Vice President & 
General Counsel

Lucas S Chang

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President &  
Chief Financial Officer

TS Wu

C C Hsu

M C Lai

G C Hung

Wenchi Ting

Jerry CJ Hu

Y S Shen

Steven S Liu

SR Sheu

M L Liao

S S Hung

Francia Hsu

Chitung Liu

Vice President & Chief 
Human Resources Officer

Eric Chen

Associate Vice President

Johnson Liu

Associate Vice President

T W Liu

Associate Vice President

S F Tzou

Associate Vice President

Le Tien Jung

Associate Vice President

Yau Kae Sheu

Associate Vice President

J Y Wu

Associate Vice President

Osbert Cheng

Associate Vice President

Steven Hsu

Associate Vice President

Purakh Raj Verma

Associate Vice President

Chih Chong Wang

Associate Vice President

C Y Hsu

Associate Vice President

Ji Fu Kung

Associate Vice President

C P Yen

Associate Vice President Mindy Lin

Associate Vice President

Pang Min Wang

Former Senior Vice 
President

Stephen K Chen

Former Vice President

Max Chao

0

76,050

76,050

1.08

35

Corporate Governance ReportComparison of Compensation of Directors, Presidents and Vice Presidents in the Past Two Years

Net Income Stated in the Parent Company Only 
Financial Reports (In Thousand NTD)

The Percentage of Directors’ Remuneration to Net 
Income (%)

The Percentage of Executive officer’s Compensation  
to Net Income (%)

2018

2017

The Company

Companies in 
the Consolidated                              
Financial Statements

The Company

Companies in 
the Consolidated                              
Financial Statements

7,072,990

7,072,990

9,628,734

9,628,734

0.19

8.06

0.21

8.52

0.15

1.79

0.34

2.02

Note 1: The directors’ remuneration includes Base Compensation, Severance Pay and Pensions, Compensation to Directors and Business Execution Expenses.  

The  managerial  officers’  compensation  includes  Salary,  Severance  Pay  and  Pensions,  Bonuses  and  Special  Expenses  etc.,  and  Employees’  Profit  

Sharing Bonus.

Note  2:  Relevant  information  during  2017  and  2018  were  prepared  in  accordance  with  International  Financial  Reporting  Standards  which  are  endorsed  

by Financial Supervisory Commission.

The  Company's  compensation  for  Directors  and  Executive  officers  is  based  on  the  UMC’s  Articles  of  Incorporation  and 

formulations, and is distributed in proper ratios.

The  Standards,  Policies,  and  Portfolios  for  Payment  of  Emoluments,  Procedures  for  Setting  Emoluments,  and  Correlations 

with Business Performance and Future Risks.

Policy for Directors’ Compensation

UMC  shall  assess  the  performance  of  directors  and  officers 

Pursuant  to  UMC’s  Articles  of  Incorporation,  Article  21-

according  to  the  Rules  for  Performance  Assessment  of 

1,  the  Company  shall  allocate  no  more  than  0.1%  of  profit 

the  Board  of  Directors  and  the  Performance  Appraisal  for 

as  directors’  compensation  for  each  profitable  fiscal  year 

employees  of  UMC,  in  order  to  decide  their  compensation. 

after  offsetting  any  cumulative  losses.  Directors  may  only 

An  adequate  compensation  scheme  will  be  determined 

receive  compensation  in  cash.  In  accordance  with  Article 

by  referencing  the  Company’s  operation  results,  future 

17,  remunerations  for  all  directors  shall  be  decided  by  the 

risks,  corporate  strategies, 

industry  trends,  and  also 

Board of Directors authorized by a meeting of shareholders 

individual  contribution.  The  performance  assessment 

according  to 

involvements  and  contributions  to  the 

and  compensation  proposals  were  reviewed  and  approved 

Companies’  operation  and  at  the  normal  rate  adopted  by 

by  Nominating  Committee,  Remuneration  Committee 

other firms of the same industry.

and  Board  of  Directors.  The  Company  will  review  the 

remuneration policy foresaid based on macroeconomics and 

Policy for Management Team’s Compensation 

business strategies to achieve both corporate sustainability 

The Company annually evaluates its salary level with similar 

and interest of stakeholders.

industries  to  ensure  the  Company’s  salary  is  competitive 

and  achieve  the  purpose  of  attracting  talent,  motivating 

and retaining talent. The Company’s salary structure can be 

divided  into  fixed  and  variable.  The  compensation  is  set  to 

fully reflect the achievements for individuals and teams.

36

United Microelectronics Corporation  |  Annual Report 2018 
 
 
37

Corporate Governance ReportUnited Microelectronics Corporation  |  Annual Report 2018

Corporate Governance Practices
Information of Board Meeting Operation

Board Meetings were held 8 times in 2018; all independent directors attended each meeting in person; the average attendance 

rate of all directors was 97.14%; the attendances of directors were as follows:

Title

Name

Chairman

Stan Hung

Independent 
director

Independent 
director

Independent 
director

Independent 
director

Lih J. Chen

Jyuo-Min Shyu 

Cheng-Li Huang

Wenyi Chu 

Director

Chung Laung Liu

Director

Ting-Yu Lin

Director

Hsun Chieh Investment Co., Ltd.

Representative:
SC Chien

Hsun Chieh Investment Co., Ltd.

Former representative:
Chitung Liu

Director

Silicon Integrated Systems Corp.

Representative:
Jason Wang

Former 
director

UMC Science and Culture 
Foundation

Former representative:
SC Chien

Other mentionable items:

Attendance in 
Person

By Proxy

Attendance Rate (%)

Remarks

8

6

6

8

8

8

7

5

2

8

2

0

0

0

0

0

0

0

1

0

0

0

100.00

Re-election

100.00

100.00

Newly elected on June 
12, 2018

Newly elected on June 
12, 2018

100.00

Re-election

100.00

Re-election

100.00

Re-election

87.50

Re-election

Representative was 
reassigned on June 
12, 2018

83.33

100.00

100.00

Re-election

100.00

Term expired on June 
11, 2018

1.  If  any  of  the  following  circumstances  occur,  the  dates  of  the  meetings,  sessions,  contents  of  motion,  all  independent  

  directors’ opinions and the company’s response should be specified:

(1)  Matters referred to in Article 14-3 of the Securities and Exchange Act: The Company has established an Audit Committee,  

and Article 14-3 of the Securities and Exchange Act is not applicable to the Company. Please refer to Page 40-42 of the   

  Annual Report for related information of the operation status of the Audit Committee.

(2) Other matters involving objections or expressed reservations by independent directors that were recorded or stated in  

  writing that require a resolution by the board of directors: None.

2. If  there  are  directors’  avoidance  of  motions  in  conflict  of  interest,  the  directors’  names,  contents  of  motion,  causes  for  

  avoidance and voting should be specified:

(1)  Proposal for approving the Company to increase the amount of endorsement to United Semiconductor (Xiamen) Co., Ltd.'s  

syndicated  loan  from  banks  on  March  7,  2018  and  October  24,  2018:  Director  SC  Chien  was  in  conflict  of  interest  and  

avoided the discussion and vote of the proposal since he also served concurrently as the Director of United Semiconductor  

(Xiamen) Co., Ltd. The proposal was approved without dissent by all other Directors in attendance.

(2) Proposal for approving to release the managerial officer from non-competition restrictions on March 7, 2018: Chairman  

Stan Hung, Director SC Chien and Director Jason Wang were in conflict of interest and avoided the discussion and vote  

of the proposal since Chairman Stan Hung also served concurrently as the Chairman of Faraday Technology Corporation,  

and Director SC Chien and Director Jason Wang also served concurrently as the Directors of Wavetek Microelectronics  

  Corporation. The proposal was approved without dissent by all other Directors in attendance.

3838

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Governance Report

(3) Proposal  for  approving  to  release  the  newly  elected  Director  from  non-competition  restrictions  on  March  7,  

2018: Director Chung Laung Liu, Director SC Chien and Director Jason Wang were in conflict of interest and avoided the  

  discussion and vote of the proposal since Director Chung Laung Liu also served concurrently as the Independent directors  

of Microelectronics Technology Inc. and Powerchip Technology Corporation, Director SC Chien also served concurrently as  

the Directors of United Semiconductor (Xiamen) Co., Ltd. and Wavetek Microelectronics Corporation, and Director Jason  

  Wang also served concurrently as the Director of Wavetek Microelectronics Corporation. The proposal was approved  

  without dissent by all other Directors in attendance.

(4) Proposal for approving the Company’s donation to UMC Science and Culture Foundation on March 7, 2018: Chairman  

Stan Hung and Director SC Chien were in conflict of interest and avoided the discussion and vote of the proposal since  

  Chairman  Stan  Hung  and  Director  SC  Chien  also  served  concurrently  as  the  Directors  of  UMC  Science  and  Culture  

Foundation. The proposal was approved without dissent by all other Directors in attendance.

(5) Proposal  for  approving  the  distributable  compensation  for  managerial  officers  on  March  7,  2018  and  July  25,  2018:  

  Directors who also served concurrently as the Company’s managerial officers were in conflict of interest and avoided the  

  discussion and vote of the proposal. The proposal was approved without dissent by all other Directors in attendance.

(6) Proposals  for  approving  to  release  the  managerial  officer  from  non-competition  restrictions  and  the  Director  from  

  non-competition  restrictions  on  June  29,  2018:  Chairman  Stan  Hung  was  in  conflict  of  interest  and  avoided  the  

  discussion and vote of the proposal since he also served concurrently as the Chairman of United Semiconductor (Xiamen)  

  Co., Ltd. The proposal was approved without dissent by all other Directors in attendance.

(7) Proposal for approving to adjust the attendance fee of the Audit Committee on October 24, 2018: Directors who also  

attended the Audit Committee were in conflict of interest and avoided the discussion and vote of the proposal. The  

  proposal was approved without dissent by all other Directors in attendance.

3. Measures  taken  to  strengthen  the  functionality  of  the  board:  To  implement  corporate  governance  and  enhance  the  

  Company's  board  functions,  and  to  set  forth  performance  objectives  to  improve  the  operation  efficiency  of  the  board  

  of directors, “The Rules for Performance Assessment of the Board of Directors” was established in 2015, and the Company  

  shall conduct an internal board performance assessment once a year. The Company engaged with an external assessment  

institution to conduct an assessment of board performance and efficiency in 2018.

  To assist the Board of Directors to enhance the management mechanism and to improve corporate governance for the  

  Company’s sustainable development, the Company established a Nominating Committee under the Board of Directors on  

  December  13,  2017  to  search,  review  and  propose  the  candidate  list  of  the  directors  and  the  executives  accordingly,  to  

  execute the performance assessment and to supervise the corporate governance system and its execution.

Note :  Attendance rate is calculated with number of meetings each board member actually attends and total number of board meetings held within his or  

her service period.

39

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operation of Audit Committee

The  Audit  Committee  assists  the  Board  of  Directors  in 

performing its supervision functions. It is also responsible for 

tasks defined by the Company Act, Securities and Exchange 

The Audit Committee is responsible for periodic review of 
the following important annual matters:
•  Financial statements 

Act  and  other  relevant  regulations.  Since  UMC  is  listed  on 

•  Internal control system

the  NYSE,  it  also  has  to  comply  with  the  U.S.  regulations 

•  Material transactions of assets, derivatives, loans,  

regarding foreign issuers. The Audit Committee is comprised 

  endorsements, guarantees

of  all  independent  directors,  with  2  financial  experts  and 
operating  according  to  Audit  Committee  Charter(please 
refer  to  the  company's  website  at  http://www.umc.com/
English/pdf/Audit_Committee_Charter_Eng.pdf).
According to the relevant regulations, the Audit Committee 

•  Audit plans of internal and external auditors and their  

  execution status

•  Engaging and removing the company's independent  

  auditors and assessing such auditors' remuneration and  

  independence

shall convene at least four regular meetings per year. In 2018 

•  Risks and control procedures of compliance with  

a total of six meetings were convened; it shall also maintain 

  government law 

good communication channels with the company’s internal 

•  Execution of documentation that involves government  

auditors, independent auditors, and management.

  agencies 

•  Implementation of whistleblower program and code of  

  conduct

Information of Audit Committee Operation

There were six Audit Committee meetings in 2018, and the attendance status is shown in the following table:

Title

Name

Attendance

Proxy Attendance

Actual Attendance 
Rate (%)

Note

Independent 
Director

Independent 
Director

Independent 
Director

Independent 
Director

Independent 
Director

Cheng-Li Huang

Wenyi Chu

Lih J. Chen

Jyuo-Min Shyu

Chung Laung Liu

6

6

4

4

2

0

0

0

0

0

100.00

Audit Committee convener
Re-elected (note)

100.00

Re-elected (note)

100.00

Newly elected (note)

100.00

Newly elected (note)

100.00

Term expired on June 11, 2018 
(note)

Note:  Mr. Cheng-Li Huang, Mrs. Wenyi Chu, Mr. Lih J. Chen and Mr. Jyuo-Min Shyu were elected as the independent directors during the Annual General  

Meeting on June 12, 2018, and became members of the Audit Committee. 

40

United Microelectronics Corporation  |  Annual Report 2018 
Operation of Audit Committee(Continue)

Other Matters to Be Recorded:

1. If the Audit Committee operates in any of the following circumstances, the date and session of the Board meeting, the content  

  of  motion,  the  resolution  of  Audit  Committee,  and  the  company’s  response  to  the  opinion  of  Audit  Committee  should  be  

  specified:

(1) Items listed in Article 14-5 of Securities and Exchange Act

Date/Session of Board 
Meeting

Content of Motion

Resolution of the 
Audit Committee

Company’s Response 
to the Opinion of the 
Audit Committee

March 7, 2018,  
the 18th meeting of 
the 13th session

1.  Approved  the  2017  Consolidated  Financial  Statements  

(including Individual Financial Statements).

2.  Approved the 2017 Statement of Internal Control System.

3.  Approved to change Certified  Public Accountant due to the  

Approved by   
all members  
present in the 
meeting.

Approved by all 
board directors 
present in the 
meeting.

internal reorganization of the CPA firm.

4.  Approved  the  content  of  appointed  service  and  fee  for  

the independent auditor appointed in 2018.

5.  Approved  the  company’s  donation  to  UMC  Science  and  

  Culture Foundation.

6.  Approved  to  increase  the  endorsement  and  guarantee  of  

the  syndication  loan  for  United  Semiconductor  (Xiamen)  

  Co., Ltd. 

7.  Approved  termination  of  the  issuance  plan  for  private  

  placement,  which  was  approved  at  the  2017  Annual  

  General Meeting.

8.  Approved  the  proposal  for  private  placement  based  

  on  future  operation  needs  and  will  propose  at  the  2018  

  Annual General Meeting for discussion.

April 25, 2018,  
the 19th meeting of 
the 13th session

1.  Approved the Q1 2018 Consolidated Financial Statements.

2.  Approved  the  merger  between  Fortune  Venture  Capital  

  Corp. and subsidiary UMC New  Business Investment Corp.

June 29, 2018,  
the 2nd meeting of the 
14th session

1.  Approved  the  acquisition  of  the  common  shares  of  Mie  
  Fujitsu Semiconductor Limited.
2. Approved  the  proposal  for  HeJian  Technology  (Suzhou)  
  Co.,  Ltd.,  a  subsidiary  of  the  company,  to  issue  an  initial  
  public  offering  ("IPO")  of  RMB  denominated  ordinary  
  shares (A-shares) on the Shanghai Stock Exchange.

July 25, 2018,  
the 3rd meeting  
of the 14 th session

October 24, 2018,  
the 4th meeting  
of the 14 th session

1.  Approved the Q2 2018 Consolidated Financial Statements.
2. Approved 
trading. 
3. Approved  the  acquisition  of  the  common  shares  of  
  Nexpower Technology Corp.

engagement 

derivatives 

in 

1.  Approved the Q3 2018 Consolidated Financial Statements.
2. Approved  to  increase  the  endorsement  and  guarantee  
for  United  Semiconductor  
  of 

the  syndication 

loan 

(Xiamen) Co., Ltd.  

Approved by   
all members  
present in the 
meeting.

Approved by   
all members  
present in the 
meeting.

Approved by   
all members  
present in the 
meeting.

Approved by   
all members  
present in the 
meeting.

Approved by all 
board directors 
present in the 
meeting.

Approved by all 
board directors 
present in the 
meeting.

Approved by all 
board directors 
present in the 
meeting.

Approved by all 
board directors 
present in the 
meeting.

41

Corporate Governance Report 
 
 
 
 
 
Operation of Audit Committee(Continue)

Date/Session of Board 
Meeting

Content of Motion

Resolution of the Audit 
Committee

December 12, 2018, 
the 6th meeting  
of the 14th session

March 6, 2019,  
the 7th meeting  
of the 14th session

Approved by   
all members  
present in the  
meeting.

Approved by   
all members  
present in the  
meeting.

1.  Approved the revision of the internal control system  
  and internal audit implementation rules.
2. Approved 2019 annual audit plan.
3. Approved  to  endorse  and  guarantee  the  loan  for  
  subsidiary Nexpower Technology Corp.

1.  Approved the 2018 Consolidated Financial Statements  

(including Individual Financial Statements).

2. Approved  the  2018  Statement  of  Internal  Control  
  System.
3. Approved  the  content  of  appointed  service  and  fee  for  

the independent auditor appointed in 2019.

4. Approved the company’s donation to UMC Science and  
  Culture Foundation.
5. Approved  amendment  of  the  UMC  Acquisition  or  
  Disposal of Assets Procedure.
6. Approved amendment of the UMC Financial Derivatives 
  Transaction Procedure.
7.  Approved  UMC’s  Singapore  branch  to  lend  funds  to  
  United Semiconductor (Xiamen) Co., Ltd.
8. Approved  termination  of  the  issuance  plan  for  private  
  placement,  which  was  approved  at  the  2018  Annual  
  General Meeting.

Company’s Response to 
the Opinion of the Audit 
Committee

Approved by all board 
directors present in 
the meeting.

Approved by all board 
directors present in 
the meeting.

(2)  There  were  no  other  resolutions  that  were  not  approved  by  the  Audit  Committee  but  were  approved  by  two  thirds  or  

  more of all directors in 2018.

2. Implementation of avoidance of independent director with respect to motion of stake: there was no such situation in the  

  Audit Committee in 2018. 

3. The communication channels between the independent directors, internal auditors, and independent auditors:

(1)  The  Company's  Audit  Division  sends  the  audit  reports  and  follow-up  reports  on  deficiencies  to  independent  directors  

  monthly. Besides these measures, the internal audit head presents the findings of all audit reports and communicates  

  follow-up reports with independent directors during the Audit Committee’s quarterly meetings.

(2)  Each  quarter,  the  company’s  independent  auditors  present  the  findings  of  their  review  or  audit  reports  regarding  the  

  financial results and internal control of the Company and its subsidiaries. The independent auditors are also required to  

  communicate to the Audit Committee the impact of IFRSs updates and announcements, any issues under applicable laws  

  and regulations that might affect the financial reports, as well as whether to adjust the entries.

(3)  The  internal  audit  head,  the  independent  auditors  and  independent  directors  can  contact  each  other  as  needed.  The  

  communication channels are seamless.

For  the  communication  between  independent  directors,  internal  audit  head,  and  independent  auditors,  please  refer  to  the 

company website: http://www.umc.com/English/investors/audit_committee/2018_communication.asp

42

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
43

Corporate Governance ReportCorporate Governance Implementation Status and Deviations from “The Corporate 
Governance Best-Practice Principles for TWSE/TPEx Listed Companies”

Evaluation Item

1.  Does the company establish and disclose the Corporate Governance Best-Practice Principles based on  
  “Corporate Governance Practice Principles for TWSE/TPEx Listed Companies?” 

Yes

No

2. Shareholding structure & shareholders’ rights

(1)  Does the company establish an internal operating procedure to deal with shareholders’ suggestions, doubts,  

disputes and litigations, and implement based on the procedure? 

(2) Does the company possess the list of its major shareholders as well as the ultimate owners of those shares?  

(3) Does the company establish and execute the risk management and firewall system within its conglomerate  

structure? 

(4) Does the company establish internal rules against insiders trading with undisclosed information? 

3. Composition and Responsibilities of the Board of Directors

(1)  Does the Board develop and implement a diversified policy for the composition of its members? 

(2) Does the company voluntarily establish other functional committees in addition to the Remuneration  
  Committee and the Audit Committee?

44

United Microelectronics Corporation  |  Annual Report 2018	
 
 
 
 
 
	
 
 
 
 
 
 
Implementation Status

Abstract Explanation

Deviations from “The Corporate 
Governance Best-Practice  
Principles for TWSE/TPEx Listed  
Companies” and Reasons

The UMC Corporate Governance Practice Principles is posted on the Corporate Governance section 
of UMC's website for stakeholders to download. Please refer to: http://www.umc.com/English/pdf/
UMC_Corporate_Governance_Practice_Principles_2017010_eng.pdf

None

UMC has designated a specific contact window (ir@umc.com) to deal with shareholders’  suggestions, 
doubts,  disputes  and  litigations.  Please  refer  to  the  company’s  website  for  stakeholders’  contact 
information: http://www.umc.com/English/CSR/c_2.asp

UMC  deals  with 
shareholders’ 
suggestions,  doubts,  disputes  and 
litigations based on “The Corporate 
Governance Best-Practice Principles 
for  TWSE/TPEx  Listed  Companies.” 
UMC  doesn’t  establish  an  internal 
operating procedure.

UMC possesses the list of its major shareholders as well as the ultimate owners of those shares.

None

UMC  has  established  relevant  control  mechanisms  within  its  internal  regulations  and  internal  
control  systems  in  accordance  with  laws  and  regulations  (including  “Rules  for  Regulating  
Related Party Transactions”).

None

UMC has formulated the Provisions on Insider Trading Prevention Policies and Control Procedures 
and is committed to advocating policies against insider trading.

None

UMC  has  established  the  Policy  for  Nomination  and  Election  of  Directors  that  takes  into  
account  the  company’s  organizational  culture,  business  model  and  long-term  development,  and  
also  established  criteria  to  ensure  the  diversity  of  the  Board  members.  UMC’s  Board  of  Directors  
comprises  of  nine  directors  from  different  professional  backgrounds,  and  they  are  responsible  
for  the  operations  and  supervision  of  UMC.  The  diversity  of  academic  and  industrial  experience  
of  the  board  members  greatly  enhances  UMC's  business  decisions  and  medium  and  long-term  
strategic  planning.  Current  members  of  the  Board  include  four  independent  directors  (including  
one  female  director)  and  two  external  individual  directors.  More  than  half  of  the  directors  do  
not  hold  managerial  positions  at  UMC.  For  UMC  Board  diversification  criteria,  please  refer  to  
UMC’s  Policy  for  Nomination  and  Election  of  Directors.  For 
implementation  of  Board  
diversification,  please  refer  to  the  skill  matrix  of  Board  members.    Please  refer  to  the  company’s  
website for relevant information: http://www.umc.com/English/investors/Corp_Gov.asp

To  meet  the  needs  of  industrial  characteristics  and  operations,  UMC  has  established  the  Capital  
Budget  Committee.  The  Committee  currently  comprises  of  four  independent  directors  and  two  
external  directors  responsible  for  assisting  UMC  with  its  long-term  development  strategy,  
financial  planning  and  business  performance.  For  the  sustainable  development  of  UMC  and  
assisting  the  Board  with  enhancing  its  management  mechanism  and  improving  corporate  
governance,  UMC  established  the  Nominating  Committee  on  December  13,  2017.  The  Committee  
comprises  of  all  independent  directors  who  are  responsible  for  searching  and  reviewing  the  
candidate list of the directors and executives accordingly, executing the performance assessment  
of  the  directors  and  executives,  and  supervision  of  corporate  governance.  For  information  on  
the  Capital  Budget  Committee  and  the  Nominating  Committee,  please  refer  to  the  UMC’s  
website  at http://www.umc.com/English/investors/Corp_Gov.asp

None

None

45

Corporate Governance ReportCorporate Governance Implementation Status and Deviations from “The Corporate Governance Best-Practice Principles for 
TWSE/TPEx Listed Companies”(Continue)

Evaluation Item

(3) Does the company establish a standard to measure the performance of the Board, and implement it  

annually? 

Yes

No

(4) Does the company regularly evaluate the independence of CPAs? 

46

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
Deviations from “The Corporate 
Governance Best-Practice 
Principles for TWSE/TPEx Listed 
Companies” and Reasons

None

Implementation Status

Abstract Explanation

UMC has formulated Rules for Performance Assessment of the Board of Directors and  implemented it 
accordingly. 
A.  The  company  conducted  annual  self-assessment  of  the  BOD,  its  functional  committees  and  
individual  board  members’  performance.  The  assessment  covers  aspects  such  as  awareness  of  
the  duties  of  directors,  the  degree  of  participation  in  the  company's  operations,  understanding  
the  business  and  its  risks,  the  improvement  of  policy  decision  quality,  the  composition  
  and  structure  of  the  board  of  directors,  the  election  and  continuing  professional  development  
  of  directors,  internal  control  and  Audit  Committee  communications,  oversight  of  the  financial  

reporting process, oversight of the external audit function and so on. 
In  2018,  the  self-assessment  of  the  Board  of  Directors,  functional  committees  and  individual  
  board  members  concluded  that  the  performance  was  "Excellent,"  and  the  reports  were  

submitted to the Nominating Committee and Board of Directors on March 6, 2019.

B.  The  company’s  board  performance  assessment  is  conducted  by  an  external  independent  
  professional  institution  or  a  panel  of  external  experts  and  scholars  at  least  once  every  three  
years.  The  company  engaged  with  external  assessment  institution  to  conduct  an  assessment  
  of  board  performance  and  efficiency  in  2018  for  the  first  time.  Please  refer  to  the  company’s  
  website for “The  Rules for Performance Assessment of the Board of Directors”: http://www.umc.com 

/English/pdf/The_Rules_for_Performance_Assessment_of_the_Board_of_Directors_eng.pdf.

UMC's Audit Committee regularly evaluates the internal quality control procedures and independence 
of independent auditors, and reports to the Board of Directors for approval: 
A.  Auditor Independence Declaration.
B.  All  audit  and  non-audit  services  provided  by  independent  auditors  are  first  reviewed  by  the  
  Audit Committee to ensure that non-audit services do not influence the result of the audit.
C.  The  same  audit  partner  has  not  performed  audit  services  for  more  than  five  consecutive  

None

years.

47

Corporate Governance Report 
 
 
 
 
 
 
 
 
Corporate Governance Implementation Status and Deviations from “The Corporate Governance Best-Practice Principles for 
TWSE/TPEx Listed Companies”(Continue)

Evaluation Item

4. Does the company set up a corporate governance unit or appoint personnel responsible for corporate governance matters  
(including  but  not  limited  to  providing  information  for  directors  and  supervisors  to  perform  their  functions,  handling  
  work related to meetings of the board of directors and the shareholders' meetings, filing company registration and changes  

to company registration, and producing minutes of board meetings and shareholders’ meetings)?

Yes

No

5. Does  the  company  establish  a  communication  channel  and  build  a  designated  section  on  its  website  for  stakeholders  
(including but not limited to shareholders, employees, customers, and suppliers), as well as handle all the issues they care  
for in terms of corporate social responsibilities?

48

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
Deviations from “The Corporate 
Governance Best-Practice 
Principles for TWSE/TPEx Listed 
Companies” and Reasons

None

Implementation Status

Abstract Explanation

UMC has established the Nominating Committee to strengthen the functions of the Board of Directors, 
ensure  shareholders'  rights,  and  supervise  relevant  departments  in  the  formulation  of  corporate 
governance rules and systems. The appointment of the Head of Corporate Governance was approved 
by  the  Nominating  Committee  and  Board  of  Directors  on  March  6,  2019.  The  Head  of  Corporate 
Governance is the Chief Financial Officer, who has been in a managerial position for at least three years 
in  a  public  company  in  handling  financial  and  stock  affairs,  and  has  in-service  professional  training 
in  according  with  the  law.  The  key  task  of  the  Head  of  Corporate  Governance  is  supervising  finance 
division of convening Board meetings and shareholders meetings, producing meeting agenda, minutes 
and  information  disclosure,  providing  business  information  required  by  the  directors,  assisting  the 
directors  with  legal  compliance,  and  assisting  the  directors  with  their  responsibilities  and  in-service 
training.
The  following  are  the  2018  Corporate  Governance  tasks,  and  a  report  has  been  submitted  to  the 
Nominating Committee and Board of Directors:
1. Ensure that Board members are promptly informed of key company information, and immediately  
  notified after the company has issued a press release.
2. Institute a Nominating Committee under the Board of Directors to supervise corporate governance  
  plans and implementation by UMC and its subsidiaries. Regularly report UMC's key operational and  
  governance issues or legal amendments to the Board. 
3. Arrange the required number of hours of in-service education for members of the Board, evaluate  
  and purchase appropriate Directors' and Officers' Liability Insurance and report its contents to Board  
  of Directors.
4. Convene  communication  meetings  on  an  as  needed  basis  for  independent  directors,  independent  
  auditors and the head of auditing, finance and accounting to implement internal control.
5. Notify  Board  of  Directors  members  of  the  agenda  seven  days  before  Board  meetings,  convene  
  meetings  and  provide  meeting  materials.  Avoid  presence  during  discussion  and  voting  where  a  
  motion  presents  a  conflict  of  interest.  Complete  and  submit  minutes  of  the  Board  of  Directors  
  meeting to each Board member within 20 days after the meeting. 
6. To  fulfill  corporate  governance,  evaluate  the  performance  of  the  Board  of  Directors  and  sub- 
  committees according to the Rules for Performance Assessment of the Board of Directors, and accept  
  external evaluation at least once every three years. 
7. Conduct  investor  briefings  on  quarterly  business  performance,  participate  in  periodic  investment  
  forums,  designate  specialists  to  service  shareholders  and  establish  multi  communication  channels  
  for investors.
8. Schedule shareholders' meeting in accordance with the law, complete and post meeting notification,  
  meeting  handbook  and  minutes  within  legally  mandated  time  frame,  record  changes  such  as  
  constitution amendments or Board re-election within legally mandated time frame.

UMC's Corporate Sustainability Committee is responsible for stakeholders and identifying issues across 
the  company.  The  Committee  is  also  responsible  for  establishing  consultation  and  communication 
channels  with  stakeholders  in  accordance  with  internal  operational  mechanisms,  designating 
specialists  to  receive,  record  and  responding  to  messages  and  input  from  various  stakeholders.  The 
Corporate  Sustainability  Committee  conducts  annual  review  of  key  corporate  social  responsibility 
issues  and  contingency  plans  to  determine  appropriate  responses  and  publicly  discloses  relevant 
stakeholder  communication  information  through  the  annual  Corporate  Social  Responsibility  Report 
and UMC’s website, and at the same time reports key stakeholder concerns and countermeasures at 
Board meetings.

None

49

Corporate Governance ReportCorporate Governance Implementation Status and Deviations from “The Corporate Governance Best-Practice Principles for 
TWSE/TPEx Listed Companies”(Continue)

Evaluation Item

Yes

No

6. Does the company appoint a professional shareholder service agency to deal with shareholder affairs?

7. Information Disclosure

(1)  Does  the  company  have  a  corporate  website  to  disclose  both  financial  standings  and  the  status  of  corporate  

governance? 

(2) Does  the  company  have  other  information  disclosure  channels  (e.g.  building  an  English  website,  appointing  
designated  people  to  handle  information  collection  and  disclosure,  creating  a  spokesman  system,  webcasting  
investor conferences)? 

8. Is  there  any  other  important  information  to  facilitate  a  better  understanding  of  the  company’s  corporate  governance  
  practices (e.g., including but not limited to employee rights, employee wellness, investor relations, supplier relations, rights  
  of  stakeholders,  directors’  and  supervisors’  training  records,  the  implementation  of  risk  management  policies  and  risk  
  evaluation  measures,  the  implementation  of  customer  relations  policies,  and  purchasing  insurance  for  directors  and  
  supervisors)?

9. Please explain the improvements which have been made in accordance with the results of the Corporate Governance Evaluation System  

released by the Corporate Governance Center, Taiwan Stock Exchange, and provide the priority enhancement measures.

50

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
Implementation Status

Abstract Explanation

Deviations from “The Corporate 
Governance Best-Practice 
Principles for TWSE/TPEx Listed 
Companies” and Reasons

UMC has appointed Horizon Securities Co., Ltd., a professional shareholder service agency, to deal with 
shareholder affairs.

None

The company has built a corporate website and exclusive webpage to publish up-to-date both financial 
standings and the status of corporate governance at all times for the investors’ reference. Please refer 
to the company’s website for related information: http://www.umc.com/English/investors/index.asp.

The  company  has  built  Chinese  and  English  websites  and  appointed  a  designated  person  to  handle 
information collection and disclosure, including the information of investor conferences. The company 
also has designated a spokesperson, acting spokesperson(s), and a specific contact window (ir@umc.
com) to deal with shareholders’ suggestions as per regulation. Please refer to the company’s website for 
related information: http://www.umc.com.

None

None

1. Continuing  Education/Training  of  Directors:  To  strengthen  the  competency  of  the  Board,  UMC  
informs  its  directors  periodically  of  professional  courses  held  by  relevant  organizations.  For  

None

  Continuing Education/Training of Director, please refer to pages 52-53 of this annual report.
2. Board  meeting  attendance:  Please  refer  to  pages  38-40  on  Board  Meeting  Operations  and  Audit  
  Committee Operations, and pages 56-57 on Remuneration Committee Operations in this annual report. 
3. Risk management policies and risk measurement standards implementation: Please refer to pages   
  143-150 on Risk Management and Evaluation in this annual report.
4. Customer policy implementation: Please refer to pages 127-129 on Overview of Market, Production,  
  and Sales in this annual report and the Corporate Social Responsibility Report on the UMC website at  
  http://www.umc.com/English/CSR/b.asp.
5. Employee  rights,  employment  care,  investor  relations,  supplier  relationships  and  stakeholders  
  rights implementation: Please refer to the Corporate Social Responsibility Report on the UMC website  
  at  http://www.umc.com/English/CSR/b.asp,  and  the  stakeholder  engagement  -  communication  of  
  stakeholders at  http://www.umc.com/English/CSR/c_2_2.asp.
6. The status of liability insurance for directors and supervisors purchased by the company: UMC has  
  purchased liability insurance for directors since 2000. The renewal of liability insurance for directors  
  was completed in 2017 and was reported during the last Board Meeting.
7. UMC website for corporate governance policies and implementation: http://www.umc.com/English/ 

investors/Corp_Gov.asp.

UMC  was  in  the  top  5%  of  rankings  in  “Corporate  Governance  Evaluation”  for  four  consecutive  years  since  2015.  To  implement  corporate 
governance and enhance the company’s board functions, “The Rules for Performance Assessment of the Board of Directors” was amended 
in 2017 stipulating that an external board performance assessment would be conducted at least once every three years, and the company 
engaged with an external assessment institution to conduct an assessment of board performance and efficiency in 2018 for the first time. 
To assist the Board of Directors to enhance the management mechanism and to improve corporate governance, the company has established 
a Nominating Committee under the Board of Directors on December 13, 2017 to search, review and propose the candidate list of the directors 
and the executives accordingly, to execute the performance assessment and to supervise the corporate governance system and its execution.

51

Corporate Governance Report 
 
Sponsoring 
Organization

Course

Training 
Hours

Compliance 
with 
Regulations 
(Note)

Corporate Governance Practices (Continue)

Continuing Education/Training of Directors in 2018:

Title

Name

Study Period

From

To

Chairman

Stan Hung

2018.03.07

2018.03.07

2018.07.24

2018.07.24

2018.10.23

2018.10.23

Independent 
Director

Cheng-Li 
Huang

2018.03.05

2018.03.05

2018.03.07

2018.03.07

2018.05.08

2018.05.08

2018.07.10

2018.07.10

Independent 
Director

Wenyi Chu

2018.03.07

2018.03.07

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

Performance Assessment 
of Board of Directors

Updates: Tax Act and 
Related Regulations

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

The Analysis of the points 
of the modification of the 
Company Act

TAIWAN DEPOSITARY 
& CLEARING 
CORPORATION

100% E-Voting in 2018 and 
Enhancement of Corporate 
Value

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

TAIWAN STOCK 
EXCHANGE 
CORPORATION

SECURITIES & FUTURES 
INSTITUTE

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

Performance Assessment 
of Board of Directors

Corporate Governance 
Roadmap Forum

The Compliance of Insider 
Equity Trading Regulations 
of Listed Companies 
Advocacy Meeting

Performance Assessment 
of Board of Directors

2018.04.20 2018.04.20

SECURITIES & FUTURES 
INSTITUTE

Insider Trading Prevention 
Advocacy Meeting in 2018

Independent 
Director

Lih J. Chen

2018 .10.15

2018 .1 0.15

Independent 
Director

Jyuo-Min 
Shyu

2018.03.26 2018.03.26

2018.05.15

2018.05.15

2018.08.14

2018.08.14

2018.09.10 2018.09.10

FINANCIAL 
SUPERVISORY 
COMMISSION R.O.C. 
(Taiwan)

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

12th Taipei Corporate 
Governance Forum

The Attack and Response 
of General Data Protection 
Regulation to Enterprises 
in Taiwan

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

The Plan and Major 
Reform of Corporate 
Governance Roadmap 
(2018~2020)

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

The Introduction of Major 
Issues of the Modification 
of the Company Act

TAIWAN STOCK 
EXCHANGE 
CORPORATION, TAIPEI 
BAR ASSOCIATION

Corporate Governance 
Roadmap Discussion 
Series host by FSC: The 
Duty and Power of 
Directors

52

3

3

3

6

3

3

3

3

3

6

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

1.5

Yes

1.5

Yes

1.5

3

Yes

Yes

United Microelectronics Corporation  |  Annual Report 2018Corporate Governance Practices (Continue)

Continuing Education/Training of Directors in 2018:

Title

Name

Study Period

From

To

Director

Chung 
Laung Liu

2018.03.07

2018.03.07

2018.08.01

2018.08.01

Director

Ting-Yu 
Lin

2018.03.07

2018.03.07

2018.04.20

2018.04.20

Representative 
of Juristic-Person 
Director

SC Chien

2018.03.07

2018.03.07

2018.10.23

2018.10.23

Representative 
of Juristic-Person 
Director

Jason 
Wang

2018.03.07

2018.03.07

2018.10.23

2018.10.23

Former 
Representative 
of Juristic-Person 
Director

Chitung 
Liu

2018.01.16

2018.01.16

2018.03.07

2018.03.07

2018.03.29

2018.03.29

Sponsoring 
Organization

Course

Training 
Hours

Compliance 
with 
Regulations 
(Note)

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

Performance 
Assessment of Board 
of Directors

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

Directors & Officers 
Liability Insurance

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

Performance 
Assessment of Board 
of Directors

SECURITIES & FUTURES 
INSTITUTE

Insider Trading 
Prevention Advocacy 
Meeting in 2018

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

Performance 
Assessment of Board 
of Directors

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

The Analysis of 
the points of the 
modification of the 
Company Act

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

Performance 
Assessment of Board 
of Directors

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

The Analysis of 
the points of the 
modification of the 
Company Act

The legal liability 
of Joint principal 
Offender, Instigator 
and Accessory of 
economic crime, and 
Case Analysis

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

Performance 
Assessment of Board 
of Directors

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

The Development 
Trend and Enterprises’ 
Response of FinTech

3

3

3

3

3

3

3

3

3

3

3

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Note: Regulations are Applicable Subjects, Continuing Education Hours, Continuing Education Scope, Continuing Education System and Continuing Education  

Arrangements and Information Disclosure specified in “Directions for the Implementation of Continuing Education for Directors and Supervisors of  
TWSE Listed and TPEx Listed Companies.”

53

Corporate Governance Report 
 
2

2

Corporate Governance Practices (Continue)

Continuing Education/Training of Managers in 2018:

Name

Course Date

Organizer

Course Title

Course Hours

SC Chien

Eric Chen

2018.03.20

Human Resources 
Department of UMC

【2018 Master Forum】Analysis and 
Prospects of Global Economic Trends

Title

President

Vice President  
& Chief Human 
Resources Officer

Vice President

Vice President

SR Sheu

M L Liao

Vice President

Steven S Liu

Human Resources 
Department of UMC

【Legal Course】Introduction of Trade 
Secrets

Former Vice 
President
President

Senior Vice 
President & General 
Counsel

Senior Vice 
President

Vice President  
& Chief Human 
Resources Officer

Max Chao

SC Chien

Lucas S Chang

Ming Hsu

Eric Chen

2018.05.16

Vice President

TS Wu

Vice President

G C Hung

Vice President

M L Liao

Vice President

Wenchi Ting

Vice President

Steven S Liu

Vice President

Jerry CJ Hu

Associate Vice 
President

Mindy Lin

Vice President

SR Sheu

Vice President & 
Chief Financial 
Officer

Chitung Liu

2018.05.24

Vice President

M C Lai

Vice President

S S Hong

2018.05.29

Associate Vice 
President

Purakh Raj 
Verma

Vice President

Y S Shen

2018.06.12

President

Jason Wang

2018.07.27

54

United Microelectronics Corporation  |  Annual Report 2018Corporate Governance Practices (Continue)

Continuing Education/Training of Managers in 2018:

Title

Name

Course Date

Organizer

Course Title

Course Hours

President

Vice President  
& Chief Human 
Resources Officer

SC Chien

Eric Chen

Vice President

TS Wu

Vice President

Vice President

SR Sheu

M L Liao

Vice President

Wenchi Ting

Vice President

Jerry CJ Hu

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

President

Vice President  
& Chief Human 
Resources Officer

Ji Fu Kung

C Y Hsu

Mindy Lin

SC Chien

Eric Chen

Vice President

M L Liao

Vice President

Wenchi Ting

Vice President

Jerry CJ Hu

Associate Vice 
President

Mindy Lin

2018.06.26

Human Resources 
Department of UMC

【2018 Master Forum】Strategic 
Innovation

2018.08.1 4

Human Resources 
Department of UMC

【2018 Master Forum】Global 
Manufacturing Strategy in the Age of 
Globalization 3.0

2 0 1 8 .1 1 . 02

Human Resources 
Department of UMC

【Executive Program】Finance for Non-
Financial Managers

2

2

4

Vice President

TS Wu

2 0 1 8 .1 1 . 2 3

Note: The implementation of the development plan for senior executives of each department was carried out, and the senior management training program  

  planning will be based on the results in 2018.
  The senior executive course are as follows:
 【2018 Master Forum】A total of three sessions were held, with a total of 174 supervisors participating, with a course satisfaction rating of 93%.
 【Executive Program】A total of two sessions were held, with a total of 66 supervisors participating, with a course satisfaction rating of 95.45%.

If  the  Company  Has  Adopted  Corporate  Governance  Best-Practice  Principles  and  Related  
Bylaws, Disclose How These Are to Be Searched

UMC's  website  has  established  a  "Corporate  Governance"  section  to  explain  the  corporate  governance  policies  and 

implementation. Investors could inquire about and download corporate governance related information from: http://www.

umc.com/English/investors/Corp_Gov.asp. For corporate governance implementation status, please refer to pages 38-94 of 

this annual report.

Procedures for Handling Proprietary/Strictly Confidential Information

These procedures were established to create an effective system for the handling and disclosure of proprietary/strictly 

confidential information to prevent inappropriate disclosure, ensure the consistency and accuracy of all information publicly 

released by the company and provide timely education for all directors, managers and employees to follow.

Please refer to the Company’s website for related information:

http://www.umc.com/English/pdf/Handling_Proprietary_Strictly_Confidential_Information_eng.pdf.

55

Corporate Governance Report 
 
      
 
 
 
 
Corporate Governance Practices (Continue)

Information on the Members of the Remuneration Committee

Status

Name/Condition Has at Least 5 years of Work Experience and the Following 

Professional Qualifications

An  Instructor  or 
Higher  Position 
in  a  Private  or 
Public College or 
University in the 
Field of Business, 
Law, 
Finance, 
Accounting,  or 
Business 
the 
Sector  of 
the 
Company

for 

A 
Judge,  Prosecutor, 
Lawyer,  CPA  or  Other 
Specialist  or  Technical 
Professional  Who  Are 
the 
Necessary 
Company's  Business 
and 
Been 
Have 
Certified  by  National 
and 
Examinations 
Licensed 
the 
Competent Authorities

by 

Independent 
director

Independent 
director

Independent 
director

Independent 
director

Cheng-Li Huang

Yes

Yes

Wenyi Chu

Lih J. Chen

Jyuo-Min Shyu

Yes

Yes

Yes

Work 
Experience 
Necessary for 
Business 
Administration, 
Legal Affairs,
Finance, 
Accounting, or 
Business
Sector of the 
Company

Yes

Yes

Yes

Yes

Meet Criteria of Independence  
(Note)

1

2

3

4

5

6

7

8

Note

Number of
Other Public
Companies
Where the
Member
concurrently
Serves as
Member in
Remuneration
Committee

0

0

0

1

Note:  For those members who match the condition listed below during and two years before assuming period, “ 
     ( 1)Is not an employee of the Company or its affiliates.

 ” is marked in the appropriate space. 

  (2)Is  not  a  director  or  supervisor  of  the  Company  or  its  affiliates.  The  same  does  not  apply,  however,  in  cases  where  the  person  is  an  independent  
director of the Company, its parent company, or any subsidiary, as appointed in accordance with the laws of Taiwan or with the laws of the country  

of the parent company or subsidiary.

     ( 3)Does not directly or indirectly own more than 1% of the Company’s outstanding shares, nor is one of the top ten non-institutional shareholders of the  

Company.

     ( 4)Is  not  a  spouse,  relative  within  the  second  degree  of  kinship  or  lineal  relative  within  the  third  degree  of  kinship  of  any  person  specified  in  the  

preceding three columns.

     ( 5)Is not a director, supervisor or employee of a legal entity which directly owns more than 5% of the Company’s issued shares, nor a director, supervisor  

or employee of the top five legal entities which are owners of the Company’s issued shares.

     ( 6)Is not a director, supervisor, or manager of a company which has a business relationship with the Company, nor a shareholder who owns more than  

5% of such a company.

     ( 7)Is not an owner, partner, director, supervisor, manager or spouse of any sole proprietor business, partnership, company or institution which has  

provided the company and its affiliates with financial, business consulting, or legal services.

     ( 8)Is not under any condition pursuant to Article 30 of the Company Act.

56

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
Operation of Remuneration Committee:
The  Remuneration  Committee  comprises  of  independent  directors.  The  goal  of  this  committee’s  operation  is  to  strengthen 

corporate governance and risk control, and to evaluate and monitor the Company’s remuneration system for its directors and 

executive officers while considering the provision of incentives to facilitate talent retention.

The  main  functions  are  to  periodically  review  the  policies  and  regulations  for  performance  appraisal  and  remuneration  of 

directors and executive officers, and to evaluate and prescribe the remuneration of directors and executive officers.

Information of Remuneration Committee Operation

1.  The Company has a Remuneration Committee composed of four members.

2. Term of the current Committee: From June 12, 2018 to June 11, 2021.

  The Company had convened three Remuneration Committee meetings in 2018 with the following attendance:

Title

Name 

Number of 
Actual
Attendance

Number of Proxy
Attendance

Rate of Actual
Attendance (%) 
(Note 1)

Note

Independent 
director

Wenyi Chu

Independent 
director

Cheng-Li 
Huang

Independent 
director

Independent 
director

Lih J. Chen

Jyuo-Min Shyu

Independent 
director

Chung Laung 
Liu

3

3

2

2

1

0

0

0

0

0

100.00

Remuneration Committee convener
Re-elected  (Note 2)

100.00

Re-elected  (note 2)

100.00

Newly elected  (Note 2)

100.00

Newly elected  (Note 2)

100.00

Term expired on June 11, 2018  (Note 2)

Other items that shall be recorded:
1.  If  the  Board  of  Directors  chooses  not  to  adopt  or  revise  recommendations  proposed  by  the  Remuneration  Committee,  the  date  of  the  
  Directors’ Meeting, session, contents of proposals, results of meeting resolutions, and the Company’s disposition of opinions provided by  
the Remuneration Committee shall be described in detail (also, where the salary and compensation approved by the Directors’ Meeting is  
  better than that recommended by the Remuneration Committee, the differences and the reason for the approval shall be described in  
  detail): None.
2. For the decisions made by the Remuneration Committee, if there are members who hold objection or reservation to a resolution and such  
  objection or reservation is on record or raised through a written statement, the date, session, contents of proposals, all members’ opinions,  
  and ways in handling these opinions should be elaborated: None.

Note 1:  Attendance Rate (%) is based on the committee member’s attendance during her/his term of service.

Note 2: Mrs. Wenyi Chu, Mr. Cheng-Li Huang, Mr. Lih J. Chen and Mr. Jyuo-Min Shyu were elected as the independent directors during the Annual General  

  Meeting on June 12, 2018, and became members of the remuneration committee.

57

Corporate Governance Report 
 
 
 
Corporate Governance Practices (Continue)

Nominating Committee
The  Nominating  Committee,  comprised  of  independent  directors,  shall  assist  the  Board  to  enhance  the  management 

mechanism and to improve corporate governance with regard to the Company’s sustainable development. The objectives of 

the Committee includes: 1. To incorporate the nomination policy and succession plans of the directors and the executives and 

then search for, review and propose the candidate list of the directors and executives accordingly; 2. To construct and develop 

the operation of the Board and the sub-committees, as well as to plan and execute the performance assessment of the Board, 

the sub-committees and the executive(s); 3. To enhance the corporate governance system and practices in order to protect the 

interests of stakeholders.

Information of Nominating Committee Operation

1.  There are 4 members in the Nominating Committee.

2. The  term  for  elected  committee  members  is  3  years,  starting  from  June  12,  2018  to  June  11,  2021.  A  total  of  2  Nominating  

  Committee meetings were held in 2018. The attendance of the committee members was as follows:

Title

Name

Attendance 
in Person

By Proxy

Attendance Rate 
(%)

Remarks

Convener

Lih J. Chen

Committee 
Member

Committee 
Member

Committee 
Member

Cheng-Li Huang

Wenyi Chu

Jyuo-Min Shyu

Ex-Convener

Chung Laung Liu

1

2

2

1

1

0

0

0

0

0

100.00

 Newly elected on June 12, 2018.

100.00

100.00

100.00

 Newly elected on June 12, 2018.

100.00

 Term expired on June 11, 2018.

Other mentionable items:
1.  If the Board of Directors declines to adopt or modifies a recommendation of the Nominating Committee, it should specify the date of the  
  meeting, session, content of the motion, resolution by the Board of Directors, and the Company’s response to the Nominating Committee’s  
  opinion: None.
2. Resolutions of the Nominating Committee objected to by members or expressed reservations and recorded or declared in writing, the date  
  of the meeting, session, content of the motion, all members’ opinions and the response to members’ opinion should be specified: None.
3. Major resolutions of Nominating Committee in 2018:
  March 7, 2018: Approved the Candidate List for the 14th term of Directors.

Notes: Attendance Rate (%) is based on the committee member’s attendance during her/his term of service.

58

United Microelectronics Corporation  |  Annual Report 2018  
  
59

Corporate Governance ReportSocial Responsibility Implementation Status

Evaluation Item

1. Corporate Governance Implementation

(1)  Does  the  company  declare  its  corporate  social  responsibility  policy  and  examine  the  results  of  the  

implementation?

Yes

No

(2) Does the company provide educational training on corporate social responsibility on a regular basis? 

(3) Does  the  company  establish  exclusively  (or  concurrently)  dedicated  first-line  managers  authorized  by  the  
board to be in charge of proposing the corporate social responsibility policies and reporting to the board?  

60

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
Implementation Status

Abstract Explanation

Deviations from “The Corporate 
Social Responsibility Best-Practice 
Principles for TWSE/TPEx Listed 
Companies” and Reasons

None

None

None

To fulfill corporate social responsibility and facilitate  economic, environmental and social progress 
for the purpose of achieving sustainable development, UMC has formulated and complied with its 
Corporate Social Responsibility Practice Principles. 
Currently, through the Corporate Sustainability Committee, UMC keeps abreast of relevant domestic 
and  international  standards  in  corporate  social  responsibility  and  changes  in  the  corporate 
environment.  UMC  regularly  reviews  and  improves  its  corporate  social  responsibility  practices, 
systems and management policies to improve the effectiveness of its corporate social responsibility 
implementations.

During corporate sustainability committee meetings and company-wide forums, the Co-President 
of UMC delivers and shares the social responsibility philosophy and implementation in education 
and training to achieve educational and training objectives.

The Corporate Sustainability Committee is the highest-level corporate sustainability organization 
within  UMC.  With  the  Co-President  as  Chair,  the  Committee  coordinates  UMC's  sustainable 
development  and  formulates  corporate  social  responsibility  strategies  and  objectives.  The 
Committee  conducts  semi-annual  reviews  to  improve  performance  and  goal  achievement.  The 
Chair  of  the  Committee  reports  promotion  outcome  and  plans,  and  key  stakeholder  issues  and 
countermeasures to the Board of Directors annually. 
The Corporate Sustainability Committee comprises of seven sub-committees, namely the Corporate 
Governance  Committee,  Customer  Relationship  Management  Committee,  Supplier  Management 
Committee, Innovation Technology Committee, Human Rights and Social Participation Committee, 
Environmental  Committee  and  Green  Manufacturing  Committee.  The  functions  of  each  sub-
committee are briefly described below:
•	 Corporate Governance Committee
  Help strengthen the function of the Board and shareholder equity, integrate related regulations and  
  policies of relevant departments, and help complete and implement the company’s internal control  
  system to ensure information transparency and disclosure, and compliance with regulations. 
•	 Customer Relationship Management Committee
  Refine customer service and quality control, improve service quality and customer satisfaction, and  
  protect customer interests and relevant trade secrets.
•	 Supplier Management Committee
  To establish a protective environment and emphasize the obligation to society, labor rights, security  
  and health while pursuing the goal of a continuously evolving supply chain, this sub-committee  
  develops  long-term  partnerships  with  vendors  for  quality,  cost  leadership,  delivery,  service/ 

response,  and sustainability.

•	 Innovation  Technology Committee
  Promote green product research and development and innovations, and lead in cutting-edge green  

technology.

•	 Human Rights and Social Participation Committee
  Responsible  for  protecting  the  basic  rights  of  employees  and  promoting  communication  with  
  outside  communities and society. Integrate the UMC Cultural and Educational Foundation, and  
  with  focus  on  education,  arts,  sports,  public  service  and  environmental  protection,  strive  to  
  promote technological  research and development cooperation, long-term educational assistance,  
  arts and sports activities and other social welfare events.
•	 Environmental Committee 
  Promote  company-wide  environmental,  safety  and  health,  energy,  water  and  greenhouse  gas  
  emission  management.  Establish  sustainable  supply  chains  and  long-term  partnerships  with  
  suppliers to enhance sustainable competitiveness.
•	 Green Manufacturing Committee 
  Promote company-wide green processes, such as hazardous materials management and increases  

in resource productivity.

61

Corporate Governance Report 
 
 
Social Responsibility Implementation Status (Continue)

Evaluation Item

(4) Does  the  company  declare  a  reasonable  salary  remuneration  policy,  and  integrate  the  employee  performance  
appraisal  system  with  its  corporate  social  responsibility  policy,  as  well  as  establish  an  effective  reward  and  
disciplinary system?

Yes

No

2. Sustainable Environment Development

(1)  Does  the  company  endeavor  to  utilize  all  resources  more  efficiently  and  use  renewable  materials  which  have  

low impact on the environment? 

62

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
Deviations from “The Corporate 
Social Responsibility Best-Practice 
Principles for TWSE/TPEx Listed 
Companies” and Reasons

None

None

Implementation Status

Abstract Explanation

Based on the philosophy of business integrity, UMC has formulated the Code of Ethics for Directors 
and  Officers,  the  Ethical  Corporate  Management  Best  Practice  Principles  and  the  Employee  Code 
of  Conduct  for  all  its  directors,  managers  and  employees  to  improve  the  quality  and  professional 
ethics of the company and its entire staff from top down.  To achieve UMC's operational plans and  
divisional  and  individual  goals,  determine  employee  work  performance,  and  justify  employee 
promotion, training and salary, UMC conducts regular, company-wide job performance evaluation 
annually that is in accordance with UMC's merit and demerit system.

In 2001, UMC became the first company in Taiwan's semiconductor industry to pass the integrated 
ISO 14001 and OHSAS 18001 certifications.  Please refer to the Environmental Protection, Safety and 
Health  Management  chapters  in  this  annual  report  for  details  on  greenhouse  gas  reduction  and 
management,  energy  conservation  management,  water  conservation  management,  waste  and 
resource recovery management, and pollution discharge and control.
For  more  detailed  descriptions  of  various  energy  efficiency  measures,  please  refer  to  UMC’s 
Corporate Social Responsibility Report, which is summarized below:
•	 Green Building: UMC has incorporated energy conservation, carbon reduction and green building  
into its operational guidelines and goals, and introduced green building certification into all its new  

  plants.
•	 Green  production:  To  achieve  the  goal  of  zero  pollution,  UMC  has  established  a  comprehensive  
  new material evaluation process to effectively screen and control new materials introduced into the  
  development of new processes so as to avoid or reduce the use of raw materials with environmental  

impact.

•	 Green process: The semiconductor process uses a wide variety of raw materials and requires high  
  purity  and  high  quality.  Through  improving  process  design  and  technology,  UMC  reduces  raw  
  material consumption, which not only reduces pollution emissions at the source, but also reduces  
  operating  costs.  UMC  has  established  a  comprehensive  information  database  to  manage  the  
incoming and requisition of raw materials for processing. In addition, in special projects to promote  
  carbon credit , source reduction is achieved through process optimization, workflow improvement  
  and target management.
•	 Green  design:  As  a  leader  in  semiconductor  wafer  technology,  UMC  not  only  ensures  that  its  
  output wafers meet the low toxicity requirements of customers, but is also committed to reducing  
the  environmental impact of manufacturing and developing numerous high-performance and   
low-power chip design process.

•	 Green  products:  Although  UMC  does  not  produce  private  brands  through  its  wafer  process  
integration,  it  continues  to  develop  and  incorporate  numerous  low-toxicity,  low-energy  green  
  product designs to provide customers with the most complete service for meeting the arrival of  
the  green  energy  era.  In  2006,  UMC  led  global  semiconductor  manufacturers  in  completing   
third-party verification and audit of the Hazardous Substance Process Management (HSPM) system,  
  becoming the first semiconductor manufacturer company in the world to obtain the QC-080000  

IECQ HSPM certification for all its plants.

•	 Packaging material management
  The materials used for shipping UMC products are in full compliance with the requirements of the  
  European RoHS (Restriction of the use of certain Hazardous Substances in electrical and electronic  
  equipment). All packaging materials are supplied by raw material suppliers, and are verified by  
impartial  laboratory  reports.  Whenever  possible,  packaging  materials  with  low  environmental  
impact are used.

•	 Resource Recycling and Reuse Research
  UMC prioritizes the reuse of recycled output waste, and continuously evaluates and introduces new  
technologies for reuse. UMC collaborates with qualified recycling vendors in applying for numerous  
recycling projects, and makes on-site improvements (such as changing liquid waste pipelines and  

  segregated collection) to increase the types of recyclable waste.

63

Corporate Governance Report 
 
 
 
 
 
 
 
 
 
 
 
 
Social Responsibility Implementation Status (Continue)

Evaluation Item

(2) Does  the  company  establish  proper  environmental  management  systems  based  on  the  characteristics  of  

their industries?

Yes

No

(3) Does  the  company  monitor  the  impact  of  climate  change  on  its  operations  and  conduct  greenhouse  gas  

inspections, as well as establish company strategies for energy conservation and carbon reduction?

64

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
Deviations from “The Corporate 
Social Responsibility Best-Practice 
Principles for TWSE/TPEx Listed 
Companies” and Reasons

None

None

Implementation Status

Abstract Explanation

To  promote  its  environmental  safety  and  health  management  system,  UMC  combines  daily 
management and comprehensive quality management activities, and incorporates environmental 
safety management plans into  actual fab operations to achieve implementation goals. In terms of 
environmental safety and health risks in its operations, UMC systematically assesses the possible 
impact of all process activities from raw material use to waste production on the environment and 
employees. Projects with potentially significant environmental impact are managed and controlled 
through raw material assessment, substitution and reduction, process pollution source control and 
reduction, effective treatment of end-of-pipe pollution, and reuse of surplus by-products. Employee 
safety  and  health  are  fundamentally  managed  through  equipment  safety,  chemical  safety  and 
operational safety. 
To  achieve  sustainable  operation,  UMC  adopts  a  clean  production  and  zero  disasters  approach 
to  environmental  protection  and  safety  and  health,  and  sets  environmental  health  and  safety 
management system goals every year. By promoting programs that reduce environmental impact 
and strengthen safety and health, UMC continuously improves its performance in environmental 
protection and safety and health management.

In the face of climate change, UMC has formulated the UMC Climate Change Policy as the Company's 
highest guiding principle for responding to climate change. UMC has also formulated the UMC Low 
Carbon Commitment as a guide for future carbon reduction projects.
•	Climate Change Policy
  Expectations to reach carbon neutral
  To be the low carbon solutions provider
  To promote the development of a low carbon economy
•	Low carbon Commitment
  Low-carbon design process
  Energy efficiency optimization
  Installing high efficiency fluorinated greenhouse gases abatement in new tools
  Adopting green building standard for new buildings
  Carbon partnerships with customers and suppliers
  Complete carbon footprint inventory for all fabs
  Investing in green technology industry
•	Greenhouse gas emission reduction goals
  1. (2013-2020)
    Reduce fluorinated greenhouse gas emissions intensity by 36%.
    Note: With 2010 as the base year.
  2. (2016-2020)
    Reduce electricity consumption intensity 10% in five years. 
    Note: With 2015 as the base year.
UMC  is  committed  to  the  spirit  of  initiative,  openness,  transparency  and  quality,  and  publicly 
discloses  its  management  of  greenhouse  gas-related  information.  Results  of  greenhouse  gas 
emissions inventory from 2000-2017 in Taiwan region passed ISO 14064-1 third party verification. 
Follow-up inventory and verification will be conducted regularly each year to fully control the use 
of  greenhouse  gases  and  verify  the  reduction  outcome.  The  annual  greenhouse  gas  emissions 
information  for  2018  will  be  verified  by  third  party  inspection  and  publicly  disclosed  before  June 
2019.
In  addition  to  publicly  disclosing  greenhouse  gas  emissions  information  in  the  Corporate  Social 
Responsibility  Report  and  UMC  Corporate  Sustainability  webpage    over  the  last  five  years,  UMC 
has  also  participated  in  the  international  carbon  disclosure  project(CDP)  since  2006  by  publicly 
disclosing its greenhouse gas emissions and related management measures each year. Furthermore, 
UMC has also been disclosing its greenhouse gas emissions and reduction information on the Market 
Observation Post System(MOPS) since 2014.

65

Corporate Governance ReportSocial Responsibility Implementation Status (Continue)

Evaluation Item

3. Preserving Public Welfare

(1)  Does  the  company  formulate  appropriate  management  policies  and  procedures  according  to  relevant  

regulations and the International Bill of Human Rights?

(2) Has  the  company  set  up  an  employee  hotline  or  grievance  mechanism  to  handle  complaints  with  appropriate  

solutions?

Yes

No

66

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
Implementation Status

Abstract Explanation

Deviations from “The Corporate 
Social Responsibility Best-Practice 
Principles for TWSE/TPEx Listed 
Companies” and Reasons

None

None

UMC supports and respects international initiatives such as the International Labor Office Tripartite 
Declaration  of  Principles,  the  OECD  Guidelines  for  Multinational  Enterprises,  the  UN  Universal 
Declaration of Human Rights, the  UN Global Compact, the Responsible Business Alliance (RBA) and  
other labor and gender equality laws for the workplace, and formulates relevant policies to protect 
human and labor rights. The UMC Human Rights and Social Participation Committee is responsible 
for  promoting  and  overseeing  human  rights  polices  and  specific  management  plans.  For  related 
information,  please refer to the UMC website at  http://www.umc.com/English/CSR/c_4.asp.

To promote harmonious and positive labor relations, UMC receives employee suggestions through 
labor  and  management  meetings,  division  meetings,  forums,  grievance  hotlines  and  suggestion 
boxes, and ensures that all grievance mechanisms can fully fulfill their  communication and response 
functions. Employees are free to choose an appropriate channel for feedback, and UMC is committed 
to ensuring that this feedback is properly handled. To allow employees to confidently express their 
opinion and protect complainant rights, the investigation process and complainant identity are kept 
confidential.
Based  on  employee  attributes  and  local  regulations,  UMC  has  set  up  communication  channels 
appropriate to local conditions.
UMC has the following complaint channels
A. Complaint channels for all levels of employees and cases.
B. Assault and sexual harassment:
  Hotline: ext. 31995, Mailbox: 31995@umc.com
C. Chief of Human Resource mailbox: CHO MailBox
D. CSR mailbox: csr@umc.com
E.  ER Help Me Employee Hotline: ext. 12885
F.  Reporting fraud and ethical violation: whistleblower@umc.com (This e-mail will be automatically  
forwarded to the Audit Committee, the Head of the Audit Office, the Head of the Human Resource  

  Division and the Head of the Legal and Legal Compliance Division). 
  External reporting hotline: 0800-024-399 (toll free).
G. Grievance Hotline: 03-5782258, ext. 31425
H. Information Security and Confidential Protection Complaint: Infosec@umc.com

67

Corporate Governance Report 
Social Responsibility Implementation Status (Continue)

Evaluation Item

(3) Does  the  company  provide  a  healthy  and  safe  working  environment  and  organize  training  on  health  and  

safety for its employees on a regular basis?

Yes

No

68

United Microelectronics Corporation  |  Annual Report 2018 
 
 
Deviations from “The Corporate 
Social Responsibility Best-Practice 
Principles for TWSE/TPEx Listed 
Companies” and Reasons

None

Implementation Status

Abstract Explanation

UMC has three categories of safety and health education based on job characteristics: 
•	 Company-wide safety and health education.
•	 Plant safety and health education organized by each fab. 
•	 Safety  and  health  related  training  formulated  by  each  division  according  to  divisional   
  characteristics.
  Employee contingency response and safety awareness are cultivated and their cognitive competence  
  strengthened through continuous training and education to reduce accidents caused by unsafe  
  conduct. UMC's contingency response, legally required certifications, safety and health management  
  system maintenance, special operation safety protection and supervisory staff are included in the  
  Company's annual training plans. In addition to planned training courses, other education and  
  training are conducted as appropriate according to specific incident or major failure. In 2018, the  
  Safe Mindset 4.0 Course was added to UMC's  Behavior-Based Safety culture. To date, 2,063 classes  
  have been offered, attracting a total of 101,739 participants. The courses included e-learning courses  
  so that employees can learn safety and health knowledge without being limited by the schedule of  
	 physical courses.
In the spirit of Benefit from Society, Give Back to Society, UMC actively promotes healthy workplace-
related activities. In 2018, UMC promoted a healthy workplace lifestyle themed "Go! Profit Without 
Sacrifice, Take Charge of Your Health!"
1. The themed health promoting activities attracted 23,194 participants, and average satisfaction rate  
  was 96%. Specifically, Q1's " Let's GO Mother's Love!" had a total of 325 Likes from employees, 15,898  
  clicks, 15,898 participants and an average satisfaction rate of 97.5%.  
  Q2's  "Let's  GO~  Healthy  Weight"  self-weight  reduction  had  568  participants  and  95.7%  average  
  satisfaction. In the Q3 "Stress Management--Feed Your Body, Mind and Spirit" stress management  
information  platform  that  offers  relaxation  activities  and  stress  reduction  socials,  6,655  
  participated, and average satisfaction rate  was 95.53%. Q4's "Improve Health Index," a	 health  
  crisis awareness education and information service for personal alertness to health warnings,  
  had 73 participants and 96.2% average satisfaction.
2. 30,585 utilized massage services by visually impaired masseurs. 
3. 2,913consulted with in-house physicians.
4. 914 donated blood, totaling 1,427 bags of blood.
5. 532 received abdominal  ultrasound exam, and average satisfaction was 94.3%. 
6. 412 women were screened for cancer, and average satisfaction was 94.3%.
7. 858 received flu vaccination, and average satisfaction was  96.6%.
•	 Health guardian of employees and their dependents
  Each  year  after  the  legally  mandated  annual  medical  examination,  UMC  provides  health  
  management  and  health  promotion  activities  that    are  based  on  the  results  of  the  medical  
  examination. Special operation inspectors are included in graded case management, and physicians  
  are  hired  to  provide  health  consultation  services  for  employees.  This  health  risk  management  
  targets  all  employees  who  are  willing  to  provide  their  information,  and  achieves  100%  

identification of those at risk.

  1.  In  2018,  12,021  employees  across  the  Company  received  medical  examinations,  and  average  
  satisfaction  rate  was 93.38%.
  2. Based on questionnaire survey and risk classification, face-to-face consultation was scheduled  

    with in-house physicians, and participation rate was 100%.

•	 Employee consultation and assistance program promotion

Individual  counseling:  One-on-one  counseling  with  privacy  protection  mechanism  to  help  
  employees resolve mental health issues. UMC pays for 6 sessions per employee per year. In 2018, 270  
  employees used the free counseling service. 
  The UMC Health Center health promoting activities continued to be well received and supported by    
  employees  in  2018.  UMC's  healthy  workplace  promotion  and  implementation  were  also  widely  
  validated  by  both  employees  and  the  outside  community,  and  won  the  Global  Views  Monthly  
  Corporate Social Responsibility Award in 2018. The Company's Fab 8A, Fab 8S and Fab 12A won the  
  Healthy Workplace Self-management Excellence certification and received the health promotion  
  mark, evidencing UMC's efforts in promoting a healthy workplace and its determination to protect  
  employee rights, interests and health.

69

Corporate Governance Report 
 
 
 
Social Responsibility Implementation Status (Continue)

Evaluation Item

(4) Does  the  company  setup  a  communication  channel  with  employees  on  a  regular  basis,  as  well  as  reasonably  

inform employees of any significant changes in operations that may have an impact on them? 

Yes

No

(5)  Does the company provide its employees with career development and training sessions?

70

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
Deviations from “The Corporate 
Social Responsibility Best-Practice 
Principles for TWSE/TPEx Listed 
Companies” and Reasons

None

Implementation Status

Abstract Explanation

UMC  values  the  feedback  of  each  employee.  To    ensure  that  employee  input  is  conveyed,  the 
company  provides  comprehensive  employee  communication  channels  to  ensure  smooth  and 
accurate communication of employee opinions. UMC respects the legal rights granted to employees. 
Employees have the freedom to form societies without the company's interference or intervention. 
Through established and a sound communication mechanism, the company communicates regularly 
with employees to build positive labor relations.
The following are UMC's regular communication mechanisms:
1. Labor-management meeting
  A  labor-management  meeting  is  convened  each  quarter  for  each  plant,  and  fab  and  operating  
  regulations are adjusted according for each fab.
  UMC adopts a two-way interactive communication model with additional on-site consultation.  
  Before  the  meeting,  issue  related  regulations  and  their  interpretations  are  compiled  and  
individually  explained.    At  the  same  time,  the  Human  Resource  Division  assigns  employees  
  and supervisors familiar with relevant laws and regulations to form an inter-division and cross- 
  functional  consultation  team  to  provide  on-site  consultation  and  assistance  to  both  labor  and  
  management.
2. Senior Executives Communication Meeting, Employee Forum
  To familiarize employees and outside communities with UMC's operating policies and business  
  performance,  a    company-wide  forum  is  hosted  by  the  General  Manager.    After  each  quarterly  
investor  conference,  UMC  conducts  international,  cross-regional  interactive  communication  
  meetings with 6 connected sites, with top divisional executives at each fab cooperating with this  
  mechanism.  After  the  company-wide  forum,  fab  divisional  communication  meetings  are  
  convened as soon as possible to share with all employees overall operational performance and key  
  fab and divisional  development.
3. Employee Benefits Meeting, Secretary Forum
  An employee benefits meeting is convened each quarter to explain employee benefits activities  
  and  the  use  of  funds  for  the  quarter.  Employee  feedback  is  collected  during  the  meeting  to  
  ensure  that  benefits  are  more  in  line  with  employee  needs.  Company-wide  promotions  are  
  conveyed during quarterly secretary forums where division secretaries communicate  key issues  
  and assist with responding to employee feedback. 
4. Satisfaction Survey
  UMC frequently adopts regular,  project specific or incident specific satisfaction surveys. Current   
internal satisfaction survey systems used by UMC are quite diverse, and are specific to different  

  targets and purposes to ensure genuine employee feedback and effective improvement. 

The  UMC  training  blueprints  are  based  on  different  job  categories  and  ranks.  In  addition,  to 
encourage  ongoing  learning  and  career  development,  company-wide  education  and  training 
plans for the following year are formulated according to the outcome of the annual executive and 
employee training needs survey.

None

71

Corporate Governance Report 
 
 
Social Responsibility Implementation Status (Continue)

Evaluation Item

(6) Does  the  company  establish  any  consumer  protection  mechanisms  and  appealing  procedures  regarding  research  

development, purchasing, producing, operating and service? 

Yes

No

72

United Microelectronics Corporation  |  Annual Report 2018 
 
 
Deviations from “The Corporate 
Social Responsibility Best-Practice 
Principles for TWSE/TPEx Listed 
Companies” and Reasons

None

Implementation Status

Abstract Explanation

UMC is committed to strengthening world-class process technology, manufacturing capability and 
excellent  service  to  enhance  customer  service  value.  Since  the  beginning,  UMC  has  regarded  its 
customers as partners, and has created with them an exceptional business philosophy that is based 
on the spirit of United for Excellence. To achieve a win-win situation in its mission and goals, UMC 
integrates closely with its customers, hence rendering customer satisfaction a core company value. 
Specific customer-oriented behaviors involve providing total solutions from customer perspective 
to  meet  customer  demand  for  product  and  service  quality.  To  this  end,  UMC  has  introduced  the 
MyUMC, MyHJTC (for HJ only) and MyUSC (for USCXM only) online service platforms for customers to 
easily check their product status such as order production status, shipping date and product quality 
data. In addition, the website also provides an Engineering Data Analysis function for customers to 
more easily analyze product data as needed. 
In  addition  to  providing  customers  with  information  on  the  process  materials  for  their  products 
through the MyUMC, MyHJTC and MyUSC online service platforms, UMC has also incorporated the 
Voice of Customer (VOC) instant online complaint system within the MyUMC, MyHJTC and MyUSC 
service  platforms  for  easy  customer  access.  This  interface  allows  customers  to  make  requests, 
comments  or  suggestions  about  the  company's  products  or  services  at  any  time.  The  system 
responds  to  customers  within  24  hours  regarding  the  processing  of  their  request  by  relevant 
divisions.  A  specialist  then  assigns  the  customer  input  to  appropriate  division  for  handling  and 
response,  and  customers  can  check  the  progress  at  any  time  on  the  website.  UMC's  measures  for 
responding to customer complaints must meet customer demand for product and service quality. 
To  this  end,  UMC's  senior  executives  will  review  customer  complaints,  handling  progress  and  the 
quality  of  response  to  ensure  that  each  division  not  only  offers  corresponding  measures  but  also 
provides  subsequent  series  of  related  solutions  to  enhance  overall  customer  satisfaction.  UMC 
collects customer voice feedback in the VOC system and translates them into specific improvement 
actions  for  ongoing  and  comprehensive  improvement  of  the  company's  product  competitiveness 

and service quality.

MyUMC

MyHJTC (For HJ only)

MyUSC (For USCXM only)

73

Corporate Governance ReportSocial Responsibility Implementation Status (Continue)

Evaluation Item

(7) Does  the  company  advertise  and 

label 

its  goods  and  services  according  to  relevant  regulations  and  

international standards? 

Yes

No

(8) Does  the  company  evaluate  the  records  of  suppliers’  impact  on  the  environment  and  society  before  taking  

on business partnerships?

(9) Do  the  contracts  between  the  company  and  its  major  suppliers  include  termination  clauses  which  come  into  
force  once  the  suppliers  breach  the  corporate  social  responsibility  policy  and  cause  appreciable  impact  on  
the environment and society?

4. Enhancing Information Disclosure

(1)  Does  the  company  disclose  relevant  and  reliable  information  regarding  its  corporate  social  responsibility  on  

its website and the Market Observation Post System (MOPS)? 

5. If  the  Company  has  established  the  corporate  social  responsibility  principles  based  on  “the  Corporate  Social  Responsibility  
  Best-Practice  Principles  for  TWSE/TPEx  Listed  Companies”,  please  describe  any  discrepancy  between  the  Principles  and  their  

implementation:

6. Other  important  information  to  facilitate  better  understanding  of  the  company’s  corporate  social  responsibility  practices: 

7.  A  clear  statement  shall  be  made  below  if  the  corporate  social  responsibility  reports  were  verified  by  external  certification  

institutions: 

74

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Implementation Status

Abstract Explanation

UMC  is  ISO  9001  &  IATF  16949  &  QC  080000  IECQ  HSPM  international  standards  certified.  The  
Company's  quality  policies  are  based  on  these  standards  to  provide  customers  with 
excellent  product  quality,  reasonable  price  and  excellent  and  timely  service  to  enhance 
customer  competitiveness.  UMC  adheres  to  the  principle  of  continuous 
improvement. 
Through  cultivating  awareness  in  all  employees,  and  control  and  technical  improvement  in 
design  and  production,  UMC  offers  products  that  meet  regulatory  and  customer  demand 
for  no  harmful  substance  management,  thereby  fulfilling  the  Company's  responsibility 
as  a  global  citizen  to  ensure  environmental  protection  and  human  health  and  safety. 
Certificates

Deviations from “The Corporate 
Social Responsibility Best-Practice 
Principles for TWSE/TPEx Listed 
Companies” and Reasons

None

Based  on  UMC's  GG-026-004-C  sustainable  supply  chain  management  review  guidelines  for  
achieving  supply  chains  that  fulfill    environmental  protection,  social  responsibility,  labor  and 
human  rights,  safety,  health  and  sustainable  development,  UMC  has  formulated  evaluations  for 
reviewing  the  sustainable  development  of  supply  chains.  The  evaluation  comprises  of  a  set  of 
assessments  to  rate  the  sustainability  of  suppliers,  and  include  indicators  such  as  delivery  time, 
quality,  finance  and  operations.  Suppliers  with  unfavorable  review  outcome  are  offered  audit 
counseling for improvement, and in the case of severe issues, procurement or status as qualified 
suppliers is terminated.

Currently,  UMC  discloses  company  related  information  in  the  Company's  annual  report,  the  UMC 
Corporate  Social  Responsibility  Report  and  the  Corporate  Sustainability  webpage  at  http://www.
umc.com/English/CSR/index.asp on the UMC website. 
UMC also provides company information to relevant external stakeholders such as customers, the 
media and government agencies when requested.
Since 2014, UMC has been disclosing its social responsibility information such as the UMC Corporate 
Social  Responsibility  Report  and  greenhouse  gas  management  in  the  Market  Observatory  Post 
System annually.

None

None

For  details  of  the  Corporate  Social  Responsibility  Practice  Principles  formulated  by  UMC,  please  refer  to  http://www.umc.com/English/
investors/Corp_Gov.asp on the UMC website.
The  UMC  corporate  sustainable  operations  found  on  the  UMC  website  shows  no  significance  inconsistency  from  the  Corporate  Social 
Responsibility Best Practice Principles for TWSE/GTSM for Listed Companies. 

UMC is a current member of the Business Council for Sustainable Development of Taiwan (BCSD- Taiwan), Taiwan Corporate Sustainability 
Forum (TCSF), The Allied Association for Science Park Industries (ASIP) and Taiwan Semiconductor Industry Association (TSIA). In addition to 
actively promoting environmental safety and health and corporate sustainability activities, UMC also serves as a representative to provide 
recommendations to government and academic institutions in their formulation and development of corporate social responsibility policies.
For other details, please refer to the UMC Corporate Social Responsibility Report and the Corporate Sustainability webpage at http://www.
umc.com/English/CSR/index.asp on the UMC website.

As of 2018, UMC has publicly issued a non-financial related sustainability annual report for 18 consecutive years. 
At  the  same  time,  the  2017  UMC  Corporate  Social  Responsibility  Report  is  the  13th  annual  report  disclosing  UMC's  corporate  sustainable 
development.  This  report  is  compiled  according  to  the  GRI  Standards  of  the  Global  Reporting  Initiative,  and  is  verified  by  a  third  party 
(certification body) in accordance with the Account Ability 1000 Assurance Standard. In 2019, UMC will compile the 2018 UMC Corporate 
Social Responsibility Report that will address major corporate social responsibility issues and stakeholder concerns, and will commission a 
third party to verify the report. UMC will remain transparent to the public and continue to demonstrate its commitment and determination 
in pursuing sustainable development.

75

Corporate Governance ReportEthical Corporate Management

Evaluation Item

1. Establishment of ethical corporate management policies and programs

(1)  Does  the  company  declare  its  ethical  corporate  management  policies  and  procedures  in  its  guidelines  and  

external documents, as well as the commitment from its board to implement the policies?

Yes

No

(2)  Does  the  company  establish  policies  to  prevent  unethical  conduct  with  clear  statements  regarding  relevant  
  procedures,  guidelines  of  conduct,  punishment  for  violation,  rules  of  appeal,  and  the  commitment  to  

implement the policies? 

(3) Does  the  company  establish  appropriate  precautions  against  high-potential  unethical  conduct  or 

listed  
activities  stated  in  Article  2,  Paragraph  7  of  the  Ethical  Corporate  Management  Best-Practice  Principles  for  
TWSE/TPEx Listed Companies? 

2. Fulfill operations integrity policy

(1)  Does  the  company  evaluate  business  partners’  ethical  records  and  include  ethics-related  clauses  in  business  

contracts?

(2) Does  the  company  establish  an  exclusively  (or  concurrently)  dedicated  unit  supervised  by  the  Board  to  be  in  

charge of corporate integrity and regularly report to the Board of Directors? 

(3) Does  the  company  establish  policies  to  prevent  conflicts  of  interest  and  provide  appropriate  communication  

channels, and implement it?

(4)  Has  the  company  established  effective  systems  for  both  accounting  and  internal  control  to  facilitate  ethical  

corporate management, and are they audited by either internal auditors or CPAs on a regular basis?

(5)   Does the company regularly hold internal and external educational trainings on operational integrity?

76

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Implementation Status

Abstract Explanation

Deviations from “The Ethical 
Corporate Management Best-
Practice Principles for TWSE/TPEx 
Listed Companies” and Reasons

UMC  has  formulated  the  Ethical  Corporate  Management  Best  Practice  Principles,  the  Code  of 
Ethics for Directors and Officers, the Employee Code of Conduct and the UMC Code of Conduct as 
regulatory guidelines for all directors, managers and employees of the company. Please refer to the 
UMC website at http://www.umc.com/English/investors/Corp_Gov.asp and http://www.umc.com/
English/CSR/c_4.asp for details.

None

The  UMC  Ethical  Corporate  Management  Best  Practice  Principles  and  the  Employee  Code  of 
Conduct are provisions for addressing moral integrity, conflict of interest avoidance and business 
entertainment.  Other  relevant  education,  training  or  tests  are  conducted  from  time  to  time  for 
employee education. 

None

All suppliers have signed the Employment Ethics Terms and Conditions Agreement in which policies 
and  reporting  channels  are  clearly  stated.  Furthermore,  to  strengthen  and  implement  policies  on 
quality, penalties for violating the above Process Change Notification (PCN) are clearly stated in the 
purchase order in accordance with the UMC Raw Material Supplier PCN Application Management 
Method (GG-Q12-008-E).

The  Corporate  Sustainability  Committee  is  the  highest-level  corporate  social  responsibility 
organization within UMC. The committee formulates the direction and objectives of the company's 
corporate social responsibility and sustainable development, and reports to the Board of Directors 
annually. Ethical management is only one part of corporate sustainability. For further information, 
please refer to UMC website at  http://www.umc.com/English/CSR/c_4.asp.

None

None

Please refer to Pages 83-87 of the Employee Code of Conduct for policies and reporting channels.

None

The  UMC  audit  division  is  directly  under  the  Board  of  Directors/Audit  Committee  to  ensure  the 
independence and objectivity of audits. Each year, the audit division evaluates the company's risks 
and develops an annual audit plan, implements audits, issues audit reports and tracks improvement 
accordingly, and conducts control self-assessment annually. The head of the audit division regularly 
communicates with members of the Audit Committee regarding audit results and follow-up, and 
presents audit affairs and discusses with independent directors during Audit Committee and Board 
of Directors meetings to fully communicate audit content and performance.
UMC  regularly  revises  its  internal  control  system  to  respond  promptly  to  environmental  changes 
and to improve the effectiveness of  design and operation. Amendments are reported to the Audit 
Committee and Board of Directors for approval.
In addition, UMC is also listed on the New York Stock Exchange (NYSE) and subject to US regulations 
for foreign issuers. Since 2006, UMC has complied with the SOX 404 Act and has been audited by  
the  independent  auditors  annually.  To  date,  the  independent  auditors  have  issued  unqualified 
audit reports for UMC's internal control design and implementation performance.

In accordance with the philosophy of ethical management, UMC has formulated the Code of Ethics 
for  Directors  and  Officers,  the  Ethical  Corporate  Management  Best  Practice  Principles  and  the 
Employee Code of Conduct as regulatory guidelines for all its directors, managers and employees. 
From  top  down,  these  regulations  enhance  the  quality  of  conduct  and  professional  ethics  of  the 
company and its entire staff. The above mentioned Employee Code of Conduct is implemented in 
the daily tasks and businesses of all employees through physical and on-line training courses and 
online self-tests.
In 2018, UMC fabs in Taiwan and Singapore have completed the training courses and passed relevant 
tests.

None

None

77

Corporate Governance ReportEthical Corporate Management(Continue)

Evaluation Item

3. Operation of the integrity channel

(1)  Does  the  company  establish  both  a  reward/punishment  system  and  an  integrity  hotline?  Can  the  accused  be  

reached by an appropriate person for follow-up?

Yes

No

(2) Does  the  company  establish  standard  operating  procedures  for  confidential  reporting  on 

investigating  

accusation cases?

(3) Does the company provide proper whistleblower protection? 

4. Strengthening information disclosure

(1)  Does  the  company  disclose  its  ethical  corporate  management  policies  and  the  results  of  its  implementation  

on the company’s website and MOPS?

5. If the company has established the ethical corporate management policies based on the Ethical Corporate Management  
  Best-Practice Principles for TWSE/TPEx Listed Companies, please describe any discrepancy between the policies and their  

implementation. 

6. Other important information to facilitate a better understanding of the company’s ethical corporate management policies  

(e.g., review and amend its policies). 

78

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
 
Implementation Status

Abstract Explanation

Deviations from “The Ethical 
Corporate Management Best-
Practice Principles for TWSE/TPEx 
Listed Companies” and Reasons

Article 6 of the Employee Code of Conduct describes measures against ethics and fraud violations, 
and  protective  and  anti-retaliation  measures  for  reporting.  Employees  may  report  violations  to 
relevant management and supervisory units through e-mail or hotlines, and the head of the Audit 
Division is promptly notified of the report.

After receiving a fraud report, UMC will convene an investigative team to investigate the suspected 
fraud  described  in  the  report.  The  Company  will  protect  any  employee  reporting  ethics  violation 
or fraud and members of the investigative team from unfair treatment or retaliation. For details, 
please refer to pages 83-87 of the Employee Code of Conduct.

None

None

The  Company  will  protect  any  employee  reporting  ethics  violation  or  fraud  and  members  of  the 
investigative team from unfair treatment or retaliation. For details, please refer to pages 83-87 of 
the Employee Code of Conduct.

None

UMC  discloses  its  principles  on  ethical  corporate  management  and  relevant  regulations  on  its 
website and MOPS. In addition, UMC discloses relevant information in its CSR Report. 

None

UMC  has  formulated  the  Code  of  Ethics  for  Directors  and  Officers,  the  Ethical  Corporate  Management  Best  Practice  Principles  and  the 
Employee Code of Conduct. All directors, managers and employees of the Company shall abide by the provisions of these Codes and related 
regulations. For employee compliance with the Employee Code of Conduct, please refer to pages 83-87 of the Employee Code of Conduct in 
this annual report.

For other relevant communications such as employee rights, employee care, investor relations, supplier relationships and stakeholder rights, 
please refer to the UMC Corporate Social Responsibility Report and the Corporate Sustainability webpage at http://www.umc.com/English/
CSR/index.asp on the UMC website.

79

Corporate Governance ReportEthical Corporate Management(Continue)

Specific Measures for Ethical Management in 2017-2018

Item

Implementation Status

Legal Compliance

UMC Code of Conduct 
Implementation

UMC fair competition, 
intellectual property rights 
violations

•	Inter-division  regulatory  compliance  is  coordinated  by  the  Legal  Division,  and  other  regulations  are  
  regularly reviewed by relevant divisions.
•	In  2018,  the  Legal  Division  coordinated  overall  regulatory  compliance  with  the  EU  General  Data  
  Protection Regulation.  

•	 The	content	of	the	Codes	is	reviewed	bi-annually:	
  1. Review of the Employee Code of Conduct was completed in October 2017. 
  2. Relevant penal provisions were added to the Employee Code of Conduct in December 2017.
•	 Major	violations	of	employee	ethics	are	reported	to	the	Audit	Committee	on	a	quarterly	basis.	In	2018, no  
  major ethical violations were reported. 
•	 Employee	Code	of	Conduct	education	and	testing	were	conducted	in	August	2018, with 100% completion  
  rate.
•	 13 sessions of Employee Code of Conduct were offered for new employees in 2018, with 100% completion  
  rate.
•	 Employee	 Code	 of	 Conduct	 promotion/educational	 courses:	 1,102  participants  and  a  total  of  36  hours  in  
  2017; and  625 participants and a total of 19.5 hours in 2018.

•	 Litigation	cases	in	each	quarter	of	2018 were reported to the Audit Committee.
•	 The	 UMC	 Antitrust	 Policy	 for	 promoting	 fair	 competition	 can	 be	 found	 on	 the	 UMC	 website,	 and	 online	 
  testing is conducted regularly. Online testing for the Fair Trade Law (i.e. the Antitrust Law) was conducted  
  in November 2018. 
•	 For	 intellectual	 property	 rights	 education,	 two	 weekly	 training	 courses	 are	 offered	 to	 new	 employees:	 
Introduction to UMC Intellectual Property Rights, and Basic Legal Knowledge and Risk Awareness Regarding  

  External Documents. In 2018, four educational sessions were conducted on the eUMC website. 
•	 Introduction	 to	 UMC	 Intellectual	 Property	 Rights	 education/training	 course:	 2,066  participants  totaling  
  46  hours in 2017; and 1,333 participants totaling 45.9 hours in 2018.
•	 Basic	Legal	Knowledge	and	Risk	Awareness	Regarding	External	Documents	education/training	course:	837  
  participants totaling 20.4 hours since implementation began in April 2018.

Financial reporting related 

internal control 

•	Annual audit by external auditors and internal Audit Division.
•	Results of internal audits for 2018 were reported at the Audit Committee/Board of Directors meetings on a  
  quarterly basis.

80

United Microelectronics Corporation  |  Annual Report 2018 
Code of Ethics for Directors and Officers

The Board of Directors (the “Board”) of United Microelectronics 

•	 Gifts. Directors or officers and members of their immediate  

Corporation  (the  “Company”)  has  adopted  the  following 

  families may not accept gifts from persons or entities who  

Code  of  Ethics  (the  “Code”)  for  directors  and  officers  of  the 

  deal with the Company in those cases where any such gift  

Company. This Code applies to all directors and officers.

  has more than a nominal value or where acceptance of the  

No  code  or  policy  can  anticipate  every  situation  that  may 

  gifts could create the appearance of a conflict of interest.

arise. Accordingly, this Code is intended to serve as a source 

•	 Personal use of Company assets. Directors or officers may  

of guiding principles for directors and officers. Directors and 

  not use Company assets, labor or information for personal  

officers are encouraged to bring questions about particular 

  use unless approved by the Chairman of the Board or as part  

circumstances that may involve one or more of the provisions 

  of an approved compensation or expense reimbursement  

of this Code to the attention of the Chairman of the Board, 

  program.

who  may  consult  with  inside  or  outside  legal  counsel  as 

2. Corporate opportunities.

appropriate.

Directors  and  officers  are  prohibited  from:  (a)  taking  for 

Directors who also serve as officers of the Company should 

themselves  personal  opportunities  that  are  discovered 

read  this  Code  in  conjunction  with  the  Code  of  Ethics  for 

through the use of the Company’s property, information or 

employees  governing  the  business  conduct  of  Company 

position;  (b)  using  the  Company's  property,  information, 

employees.

1. Conflict of Interest.

or  position  for  personal  gain;  or  (c)  competing  with  the 

Company.

Directors  and  officers  must  avoid  any  conflicts  of  interest 

3. Corporate assets; confidentiality.

between  the  director  or  officer  and  the  Company.  Any 

Directors  and  officers  are  expected  to  protect  the  assets 

situation  that  involves,  or  may  reasonably  be  expected  to 

of  the  Company  and  use  them  efficiently  to  advance  the 

involve,  a  conflict  of  interest  with  the  Company  should  be 

interests of the Company. Those assets include tangible and 

disclosed  promptly  to  the  Chairman  of  the  Board,  such  as 

intangible assets, such as confidential Company information. 

extending a loan to, providing a guarantee of the obligations 

Directors and officers should maintain the confidentiality of 

of, conducting a material transaction with, selling products 

information entrusted to them by the Company and any other 

to  or  purchasing  products  from  a  director  or  officer  (or  a 
member of his or her immediate family1).
A “conflict of interest” can occur when a director or officer’s 

confidential information about the Company that comes to 

them, from whatever source in the course of the Company’s 

business, in their capacity as director or officer except when 

personal interest is adverse to - or may appear to be adverse 

disclosure  is  authorized  or  legally  mandated.  For  purposes 

to  -  the  interests  of  the  Company  as  a  whole.  Conflicts  of 

of  this  Code,  “confidential  information”  includes  all  non-

interest  also  arise  when  a  director  or  officer,  or  a  member 

public information relating to the Company, its customers or 

of  his  or  her  immediate  family,  receives  improper  personal 

suppliers.

benefits  as  a  result  of  his  or  her  position  as  a  director  or 

4. Compliance with laws, rules and regulations; fair dealing.

officer of the Company.

Appropriate  policies  and  procedures  are  in  place  for 

This Code does not attempt to describe all possible conflicts 

compliance  by  directors  and  officers,  with  laws,  rules  and 

of  interest  that  could  develop.  Some  of  the  more  common 

regulations  applicable  to  the  Company,  including  insider 

conflicts from which directors or officers must refrain are set 

trading  laws.  Transactions  in  the  Company’s  securities  are 

out below:

governed by the Company's policies with respect to trading 

•	 Relationship  of  Company  with  third  parties.  Directors  or  

such securities.

  officers  may  not  engage  in  any  conduct  or  activities  that  

Directors and officers shall endeavor to deal fairly with the 

  are  inconsistent  with  the  Company's  best  interests  or  

Company's customers, suppliers, competitors and employees. 

  that disrupt or impair the Company's relationship with any  

No director or officer should take unfair advantage of anyone 

  person or entity with which the Company has or proposes  

through  manipulation,  concealment,  abuse  of  privileged 

  to enter into a business or contractual relationship.

information,  misrepresentation  of  material  facts,  or  any 

•	 Compensation  from  non-Company  sources.  Directors  or  

other intentional unfair-dealing influence.

  officers  may  not  accept  compensation  (in  any  form)  for  

5. Accurate Reports and other Public Communications.

  services performed for the Company from any source other  

It is crucial that all books of accounts, financial statements and 

  than the Company.

records of the Company reflect the underlying transactions 

and  any  disposition  of  assets  in  a  full,  fair,  accurate  and 

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Corporate Governance ReportCode of Ethics for Directors and Officers(Continue)

timely manner. All officers and directors who are involved in 

Committee or other personnel as appropriate, or in the case 

the Company’s disclosure process are required to know and 

of an officer in accordance with the procedures set forth in 

understand  the  disclosure  requirements  applicable  to  the 

the  Code  of  Ethics  for  employees.  No  one  will  be  subject  to 

Company that are within the scope of their responsibilities, 

retaliation  because  of  a  good  faith  report  of  a  suspected 

and must endeavor to ensure that information in documents 

violation. Violations will be investigated by the Board or by a 

that the Company files with or submits to the ROC Securities 

person or persons designated by the Board. Any waiver of this 

and  Futures  Bureau  and  the  U.S.  Securities  and  Exchange 

Code may be made only by the Board and the details of the 

Commission, or otherwise disclosed to the public, is presented 

waiver, including name and title of the receiving party of the 

in a full, fair, accurate, timely and understandable manner. 

waiver, date of the board meeting when the waiver is granted, 

Additionally,  each  individual  involved  in  the  preparation 

the validity period of waiver, reason to grant the waiver and 

of  the  Company’s  financial  statements  must  prepare  those 

principle  for  granting  waiver,  will  be  promptly  disclosed  to 

statements  in  accordance  with  our  internal  accounting 

shareholders  and  others,  as  required  by  applicable  law  and 

policies,  which  take 

into  account  generally  accepted 

the Taiwan Stock Exchange listing standards. All requests for 

accounting policies set forth by the IFRSs, IASs, IFRIC and SIC, 

waivers or review by the Board should be made to one of the 

which  are  endorsed  by  Financial  Supervisory  Commission 

Company’s independent directors. 

(TIFRSs) and relevant laws and regulations applicable to the 

8. Enforcement of this Code of Ethics

Company,  ensure  they  are  consistently  applied,  and  follow 

The Board shall determine appropriate actions to be taken in 

any other applicable accounting standards and rules so that 

the event of violations of this Code and set forth procedure 

the  financial  statements  materially,  fairly  and  completely 

for  the  person  who  is  determined  to  have  violated  to  Code 

reflect the business transactions and financial condition of 

in the event of disagreement with the determination. Such 

the Company. 

actions  shall  be  reasonably  designed  to  deter  wrongdoing 

6.  Encouraging  the  reporting  of  any  illegal  or  unethical 

and to promote accountability for adherence to this Code. In 

behavior.

determining the proper course of action in a particular case, 

Directors and officers should promote ethical behavior and 

the  Board  shall  take  into  account  all  relevant  information, 

take steps to ensure the Company:

including  the  nature  and  severity  of  the  violation,  whether 

(a)  encourages  employees  to  talk  to  managers  and  other 

the violation appears to have been intentional or inadvertent 

appropriate  personnel  when  in  doubt  about  the  best 

and  whether  the  individual  in  question  had  been  advised 

course  of  action  in  a  particular  situation;  (b)  encourages 

prior to the violation.

employees to report violations of laws, rules, regulations, the 

Company's internal rules, or the Code of Ethics for employees 

to appropriate personnel; and (c) informs employees that the 

Company will not allow retaliation for reports made in good 

faith. 

7. Compliance Procedures.

1.  "Immediate family" shall include a person's spouse, parents, children, 

and relatives within three degrees of kinship.

Please  refer  to  the  website  http://www.umc.com/English/

Any  suspected  violations  of  this  Code  should  be  reported 

pdf/Code_of_Ethics.pdf for the presentation shown above.

promptly  to  managers,  the  internal  auditor,  the  Audit 

82

United Microelectronics Corporation  |  Annual Report 2018Employee Code of Conduct

I.  Objective:

The company’s objective in establishing this "Code of Conduct" is to promote ethics, honesty and professionalism within  

the company and among its employees. The company believes in being an integrated organization and that the action of  

every employee affects its entire organization and reputation. Any employee is obligated to strive for the extension of the  

Company’s interests within legal limits, and is responsible for preventing damages or loss to the Company’s interests. The  

company expects all employees to abide by this Code in carrying out their duties and functions so as to preserve public trust  

and to ensure the company’s sustainable growth and development.

II.   Scope:

This policy and its related procedures and measures are applicable to all employees (including senior executives and officers).

III.  Content:

1.  Morality and integrity

1-1.  The  company  dedicates  itself  to  abide  by  commercial  ethics  and  firmly  believes  in  the  values  of  an  integrated  

organization. This guideline has been introduced to outline applicable legal requirements and company policy required  

of the company and all employees. Any company employee with any query concerning ethics or legal matters is advised  

to consult with his or her division head or the company’s legal division for guidance.

1-2.  Ethical standards shall not be confined to legal compliance. Each individual shall be obligated to conduct all businesses  

ethically and to avoid any activity that would lead to a conflict of interest. 

1-3.  The principles governing ethics and integrity are comprised of:

1-3-1. Conducting all business with integrity and truthfully recording the process of all business dealings.

1-3-2.  Ensuring proper confidentiality of all commercial information when executing a mission and retaining complete  

  commercial and operational records, as well as respecting the commercial assets and intellectual properties of  

  the company, each client and each strategic partner of the company.

1-3-3.  All  company  accounting  ledgers,  invoices,  records,  accounting  entries,  capital  and  assets  must  be  securely  

  cataloged  and  safeguarded  to  ensure  that  all  company  transactions  and  business  dealings  can  be  fairly  and  

  accurately  reflected.  It  is  strictly  forbidden  to  fabricate,  falsify  or  create  misleading  claims  or  to  fabricate  or  

  falsify any accounting entries, records, financial reports or any other related documents, or to make any misleading  

  claims or records, or intentionally hide or cover the state of the company’s transactions; nor it is permitted to  

  open,  maintain  or  access  any  illegitimate  accounts  with  any  bank  or  a  third  party  institution  with  which  to  

  conduct account transactions related to the company. 

1-3-4.  It is forbidden to destroy, alter or forge any pertinent records that may likely be linked to an investigation, litigation  

  or legal related settlement proceeding.

1-3-5.   When  coming  across  incidents  involving  alleged  unethical  conduct  or  suspicions  of  violation  to  this  rule,  all  

  personnel are obligated to inform the company’s management.

2. Respect for individuals and customers:

  2-1.  The  company  respects  the  privacy  and  integrity  of  every  employee  and  upholds  strict  standards  of  privacy  and  

confidentiality for individual personal data. Treatment of customers and commercial data concerning other individuals  

shall also be bound by this principle of confidentiality.

  2-2. Each  employee  should  endeavor  to  deal  fairly  with  the  company’s  customers,  suppliers,  competitors  and  other  

employees.  No  employee  should  take  unfair  advantage  of  anyone  through  manipulation,  concealment,  abuse  of  

    privileged information, misrepresentation of material facts, or any other unfair-dealing practice.

  2-3. The  company  is  to  maintain  open  communication  channels  that  would  encourage  all  employees  to  participate  in  

company affairs and to express their opinions to supervisors of all levels.

3. Avoidance of conflict of interest:

  3-1.  Prior  to  engaging  in  any  business,  investment  or  related  activity  that  may  lead  to  a  conflict  of  interest  between  

    personal and professional relationships, the employee must fully disclose such conflict of interest to, and the potential  

conflict  must  be  subject  to  review  by,  the  chairman  &  president’s  office.  More  detailed  guidelines  on  conflicts  of  

interest are set forth in the company’s Rules of Integrity for the employees (as appendix I). All company personnel are  

obligated to file a report with the Human Resources Division of the company citing any probable conflict of interest    
83

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3-2.  Employees should avoid incidents that may involve a probable conflict of interest - for instance, an employee  

  moonlighting at a non-affiliated company, or an employee negotiating or conducting business transactions with  

  the company which would benefit such employee or the employee’s family or relatives personally. Employees  

  are prohibited to (a) take for themselves personal opportunities that are discovered through the use of corporate  

  property, information or position, (b) use corporate property, information or position for personal gain and (c)  

  compete with the company.

3-3.  Any  action  that  may  possibly  transfer  the  Company’s  resources  or  interests  to  employees,  their  relatives  or  

  friends  is,  in  principle,  prohibited.  If  such  action  is  considered  as  beneficial  for  both  the  individual  and  the  

  Company, it may be exceptionally permitted and proceeds only after obtaining the Chairman’s approval. Please  

  file a report with Appendix II.

3-4.  All employees are prohibited to provide or disclose openly company confidential information without securing  

  proper authorization from the company. It is strictly forbidden to trade confidential or insider information for  

individual gain, or to benefit others or put the company’ s interest in jeopardy.

3-5.  All  employees  are  forbidden  to  engage  in  any  of  the  aforesaid  activities  through  an  agent,  partner  or  any  

  representative only to circumvent this guideline.

3-6.   All personnel that participate in the review, evaluation and selection of vendors should avoid any circumstance  

  that has the potential to bias a fair decision.

3-7.  Unless  otherwise  approved  by  the  board  of  directors  in  advance  and  in  compliance  with  all  applicable  laws,  

  employees are not permitted to take out or accept company loans on behalf of oneself or one’s relative, or demand  

  the company to issue a liability guarantee.

3-8.  Unless for company business, advanced authorization shall be sought prior to accessing any of the company’s  

  services,  equipment,  facilities,  properties  or  any  other  form  of  resources.  All  employees  should  protect  the  

  company’s assets and ensure their efficient use. The company’s assets, whether tangible or intangible, are to be  

  used  only  by  authorized  employees  or  their  designees  and  only  for  the  legitimate  business  purposes  of  the  

  company.

3-9.  We request employees who have specific business and selected positions for management’s needs and employees  

  of designated departments to make an annual declaration of interests. If employees themselves or their relatives  

(up  to  the  third  degree)  have  investments  in  and/or  are  currently  employed  by  UMC  customers,  distributors,  

  distributors’ customers, suppliers, or competitors, the status of such investments and/or employment should  

  be reported in the "declaration of interests" system. The Human Resources Division will then be responsible for  

  data collection and summarization in order to report results to senior executives, the President and the Chairman.  

  However, in the case where such investment is made on firms that the Company invests in, have openly agreed to  

  be invested in, or are of publicly listed companies, the report to superiors is not required.

3-10. All employees shall not exploit opportunities for information access (including but not limited to attendance at  

  meetings  related  to  sales  and  production,  annual  planning,  policy  launching)  to  disclose  the  Company's  

  confidential  information  to  any  external  parties  (including  but  not  limited  to  the  Company's  customers,  

  suppliers, or any other parties who are not obliged to know).

4. Gratuity and business reception:

  4-1. All  employees  are  prohibited  to  accept  from  or  give  to  any  customer,  supplier  or  contingent  party  related  to  the  

company any kickbacks or any other form of illicit gain.

  4-2. All  employees  are  strictly  forbidden  to  accept  gifts  from  the  company’s  vendors  valued  at  over  one  thousand  N.T.  

    dollars (NT$1,000), or any cash, or any equivalent in monetary goods, i.e. gift certificates, check, stock certificate and  

the like.

  4-3. All employees are forbidden to accept lavish entertainment or reception.

  4-4. For the purpose of maintaining a normal business relationship, gifts that are to be presented to business counterparts  

should be imprinted with the company’s logo.

  4-5. It is prudent to conform to the general practice of common business decorum when accepting or arranging any type  

of  business  reception,  and  all  employees  shall  refrain  from  being  excessively  lavish  and  refrain  from  incurring  

significant or unnecessary expenses.

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5. Full, fair, accurate, timely and understandable disclosure:

  5-1.  It  is  crucial  that  all  books  of  account,  financial  statements  and  records  of  the  company  reflect  the  underlying  

transactions and any disposition of assets in a full, fair, accurate and timely manner.

  5-2. All employees who are involved in the company’s disclosure process are required to know and understand the disclosure  

requirements  applicable  to  the  company  that  are  within  the  scope  of  their  responsibilities,  and  must  endeavor  to  

ensure that information in documents that the company files with or submits to the Securities and Futures Bureau,  

Financial Supervisory Commission, Executive Yuan, ROC and the U.S. Securities and Exchange Commission, or that is  

otherwise disclosed to the public, is presented in a full, fair, accurate, timely and understandable manner.

  5-3. It is critically important that financial statements and related disclosures be free of material errors. Employees are  

    prohibited from knowingly making or causing others to make a materially misleading, incomplete or false statement  

to an accountant or an attorney in connection with an audit or any filing with any governmental or regulatory entity  

(such  as  the  ROC  Securities  and  Futures  Bureau,  Financial  Supervisory  Commission,  Executive  Yuan,  ROC,  the  U.S.  

Securities and Exchange Commission or the New York Stock Exchange).

  5-4. No individual, or any person acting under his or her direction, shall directly or indirectly take any action to coerce,  

    manipulate, mislead or fraudulently influence any of the company’s auditors if he or she knows (or should know) that  

    his or her actions, if successful, could result in rendering the company’s financial statements materially misleading.

6. Safeguard Associated with the Implementation of Code of Conduct and Reporting of Fraudulent Act:

  6-1.  All employees are to comply with applicable governmental laws, rules and regulations, and the company’s regulations  

and procedures.

  6-2. Employees, suppliers, customers or other related stakeholders can report illegal activity or major misconduct by UMC  

    managers or staff (“whistleblowing report”) through any of the following channels:

    6-2-1.  Send an email report to the email address whistleblower@umc.com which will then automatically forward a  

  copy of the report to the Audit Committee, ADT Level 1 Manager, HR Level 1 Manager, and LA&C Level 1 Manager. 

    6-2-2. Send  an  email  report  directly  to  any  of  the  following:  ADT  Level  1  Manager:  ADT_Director@umc.com;  HR  

  Level  1  Manager:  HR_Director@umc.com;  LA&C  Level  1  Manager:  LA&C_Director  @umc.com;  or  the  Audit  

  Committee: Audit_committee@umc.com).

    6-2-3. Report  the  issue  by  calling  the  whistleblowing  direct  phone  line  at:  0800-024-399  (toll  free)  or  03-5782258  

  ext 31425.

    6-2-4. Report the issue directly to a manager in HR or any other appropriate department/division. Once the manager  

  receives the report, they will immediately notify the ADT Level 1 Manager. Once a whistleblowing report has  

  been  received,  the  Company  will  assemble  an  investigation  team  to  conduct  a  thorough  inquiry  into  the  

  allegations made in the report. More detailed guidelines on reporting processes are set forth in the company’s  

  Whistleblower Program.

  6-3. For  the  person  reporting  a  violation  of  the  Code  of  Conduct  or  engagement  in  fraud  as  well  as  any  other  related  

employee involved in all subsequent investigations of the violation, the company will provide safeguard measures  

ensuring them against any unfair retaliation or treatment.

  6-4. Those  found  violating  or  breaching  the  Code  of  Conduct  are  to  face  adequate  corrective  action  by  the  company  

    depending on the severity of the incident. It is the responsibility of each employee to carefully read, understand and  

comply with this Code of Conduct and, as needed, to seek clarification on any point. Questions regarding any legal or  

ethical requirements should be directed to the director of the Human Resources or the company’s legal division.

7.  Waivers and amendments:

  7-1.  The company may waive application of this Code of Conduct to employees in certain limited situations. Any waivers of  

the provisions of this Code of Conduct for executive officers may be granted only in exceptional circumstances by  

the board of directors. The company will promptly disclose to its shareholders any such waivers granted to any of its  

executive officers and the reason for such waiver.

  7-2. Amendments to this Code of Conduct shall be promptly disclosed by the company. It is each individual’s responsibility  

to maintain familiarity with this Code of Conduct as the company reviews and revises its content from time to time. 

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(Appendix) Rules of Employee Integrity

1.  Objective:  To  maintain  the  common  practice  of  integrity  and  business  efficiency,  the  Rules  of  Employee  Integrity  has  

  been specially stipulated.

2. While employees of the Company are engaged in all sorts of business practices, they should conform to the following  

  principles:

  2-1.  Any employee is obligated to strive for the extension of the Company’s interests within legal limits.

  2-2. Any employee is responsible of preventing damages or loss of the Company’s interests.

3. Rules of Integrity:

  3-1.  Employees undertaking the business with vendors should adhere to the following principles:

3-1-1.   Be honest and fair while selecting vendors. Select those who present products/services with the most competitive  

  quality, prices, and delivery.

3-1-2.  No accepting of rake-offs or other illegitimate interests from vendors.

3-1-3.  Employees and relatives are strictly forbidden to accept any gifts, cash, or other valuables worth of NTD 1,000 or  

  above from vendors.

3-1-4.  In principle, employees are prohibited from accepting entertainment reception apart from simple meals. For  

  any question regarding this principle, ask a direct superior.

  3-2.  Employees in marketing or sales-related departments should adhere to the following principles when dealing with  

  customers:

  3-2-1. Be honest and fair while transacting with customers.

  3-2-2. Customers’ offer of gifts, cash, or other valuables should be courteously declined. In the case where such offer  

    cannot be declined or returned and its value exceeds USD100.00, please turn the item to the Employee Welfare  

    Committee to be handled on a case-by-case basis.

  3-3.  All employees should prevent any of the following from occurring and affecting the Company’s interests:

  3-3-1. Through  access  to  one’s  own  duties,  directly  or  indirectly  seeking  illegitimate  interests  or  engaging  in  

    fraudulent activities.

  3-3-2. Seeking  illegitimate  interests  through  one’s  authority  or  identity  to  access  duties  not  run  or  supervised  by  

    oneself.

  3-3-3. Defrauding others through access to one’s own duties.

  3-3-4.Invading or stealing equipment or property from the company.

  3-3-5. Engaging  in  fraudulent  activities  such  as  over-filing  for  traveling  expenses  or  overtime  compensations  or  

    applying for inaccurate expenses.

  3-4.  All employees have the responsibility of maintaining a clean image of the Company, which includes no gossiping  

  about colleagues or superiors outside of the office.

  3-5.  All supervisors must possess the ability of judging the rights and wrongs on integrity issues and should never use not  

  regulated as excuses for any debatable conduct. Besides being honest themselves, they should lead subordinates in  

  establishing a work environment practicing integrity.

  3-6.  Acceptance  inspectors  or  authenticator  of  each  business  operation  as  well  as  accounting  examiners  have  the  

  responsibility of reporting upon discover of those violating the Rules of Integrity.

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4. Rewards and Punishment:

  4-1. Rewards for reporting: Correcting or reporting on violations of integrity rules is an action of protecting the rights of  

employees, shareholders, and the Company. Once found to be factual, suitable rewards will be given to the reporter.

  4-2. Punishment:

4-2-1.  Punishment will be administered under any of the following occurrences:

  A. When an employee violates the Rules of Integrity.

  B. When a direct supervisor:

      a.  Causes his subordinate’s violation of the integrity rules due to his improper supervision and guidance.

      b.  Shelters a violator of the integrity rules with knowledge of the incident.

  C. When an acceptance inspector, authenticator, or examiner of each business operation:

      a.  Overlooks a violation of the integrity rules due to his negligence on the job.

      b.  Fails to report on any violation of the integrity rules found during acceptance inspecting, authenticating,  

  or examining.

4-2-2. Provisions  on  Punishment:  In  addition  to  recovering  and  returning  the  illegitimate  benefits  to  the  original  

  owner or company, violators of the integrity rules will be inflicted, in proportion to the weight of the incident,  

  with the following different punishments or the combination of them.

  A. According to internal punishment regulations

  B. Withholding of the performance cash award, year-end award and bonus

  C. Demotion of job grade

  D. Removal from post

  E.  Legal action

  4-3. Confession

4-3-1. In the case where the violator of the integrity rules makes the confession afterwards, his punishment may be  

  reduced or waived.

4-3-2. In the case of a group violation of the integrity rules, the first one making the confession may be waived from  

  his punishment.

Please  refer  to  the  website  http://www.umc.com/English/pdf/Employee_Code_of_Conduct-e.pdf  for  the  presentation  shown 

above.

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UMC Ethical Corporate Management Best Practice Principles

Article 1

Article 6

In  order  to  foster  a  corporate  culture  of  ethical  

  According  to  its  preceding  policy,  the  company  shall  

  management  and  sound  development,  the  company  

  prescribe 

specific  ethical  management  practices  

is  advised  to  adopt  these  principles  applicable  to  its  

and  programs  to  deter  unethical  conduct  ("prevention  

subsidiaries  and  other  institutions  or  juridical  persons  

  programs"), including operational procedures, guidelines,  

  which are substantially controlled by such company.

and training. 

Article 2

Article 7

  When  engaging  in  its  commercial  activities,  directors,  

  When establishing the prevention programs, the company  

  managers,  employees,  and  agents  or  persons  having  

shall analyze which business activities within its business  

substantial  control  over  such  companies  ("company  

scope  are  possibly  at  a  higher  risk  of  being  exposed  to  

  personnel")  shall  not  directly  or  indirectly  offer,  promise  

  unethical  conduct,  and  strengthen 

its  preventive  

to  offer,  request  or  accept  any  improper  benefits,  nor  

  measures.

commit  unethical  acts  including  breach  of  ethics,  illegal  

Article 8

acts, or breach of fiduciary duty ("unethical conduct") for  

The  company  clearly  specifies  in  its  rules  and  external  

  purposes of acquiring or maintaining benefits.

  documents  the  ethical  corporate  management  policies  

Article 3

and  the  commitment  by  the  board  of  directors  and  the  

"Benefits" in these Principles means any element of value,  

  management on rigorous and thorough implementation  

including  money,  endowments,  commission,  positions,  

of  such  policies,  and  carries  out  the  policies  in  internal  

services,  preferential  treatment  or  rebates  of  any  type  

  management and in commercial activities.

or  in  any  name.  Benefits  received  or  given  occasionally  

Article 9

in accordance with accepted social  customs  and  that  do  

The  company  engages  in  commercial  activities  in  a  fair  

  not  adversely  affect  specific  rights  and  obligations  shall  

and transparent manner based on the principle of ethical  

  be excluded.

Article 4

  management.

Prior  to  any  commercial  transactions,  the  company  will  

The  company  shall  comply  with  the  Company  Act,  

take  into  consideration  the  legality  of  their  agents,  

Securities and Exchange Act, Business Entity Accounting  

suppliers,  clients,  or  other  trading  counterparties  and  

  Act,  Political  Donations  Act,  Anti-Corruption  Statute,  

  whether  any  of  them  are  involved  in  unethical  conduct,  

  Government  Procurement  Act,  Act  on  Recusal  of  Public  

and will avoid any dealings with persons so involved.

Servants Due to Conflicts of Interest, TWSE/GTSM listing  

Article 10

rules, or other laws or regulations regarding commercial  

  When  conducting  business,  the  company  and 

its  

activities,  as  the  underlying  basic  premise  to  facilitate  

  personnel may not directly or indirectly offer, promise to  

ethical corporate management.

Article 5

offer, request, or accept any improper benefits in whatever  

form  to  or  from  clients,  agents,  contractors,  suppliers,  

The company shall abide by the operational philosophies  

  public servants, or other stakeholders.

of honesty, transparency and responsibility, base policies  

Article 11

on the principle of good faith and establish good corporate  

  When directly or indirectly offering a donation to political  

governance,  risk  control  and  management  mechanisms  

  parties,  organizations  or  individuals  participating  in  

to  create  an  operational  environment  for  sustainable  

  political  activities,  the  company  and  its  personnel  shall  

comply  with  the  Political  Donations  Act  and  their  own  

relevant  internal  operational  procedures,  and  shall  not  

  make such donations in exchange for commercial gains or  

  business advantages.

  development.

88

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UMC Ethical Corporate Management Best Practice Principles(Continue)

Article 12

Article 17

  When making or offering donations and sponsorship, the  

The  personnel  of  the  company  shall  exercise  the  due  

company  and  its  personnel  shall  comply  with  relevant  

care  of  good  administrators  to  urge  the  company  to  

laws and regulations and internal operational procedures,  

  prevent  unethical  conduct,  while  always  reviewing  the  

and shall not surreptitiously engage in bribery.

results of the preventive measures and continually making  

Article 13

adjustments so as to ensure thorough implementation of  

The  company  and  its  personnel  shall  not  directly  or  

its ethical corporate management policies.

indirectly  offer  or  accept  any  unreasonable  gifts,  

To  achieve  sound  ethical  corporate  management,  the  

  hospitality  or  other  improper  benefits  to  establish  

relevant  competent  authority  shall  be  responsible  for  

  business 

relationship 

or 

influence 

commercial  

establishing  and  supervising  the  implementation  of  the  

transactions.

Article 14

ethical  corporate  management  policies  and  prevention  

  programs, and report to the board of directors on a regular  

The  company  and  its  personnel  shall  observe  applicable  

laws  and  regulations,  internal  operational  procedures,  

  basis.

Article 18

and  contractual  provisions  concerning 

intellectual  

The personnel of the company shall comply with laws and  

  property,  and  may  not  use,  disclose,  dispose,  or  damage  

regulations  and 

the  prevention  programs  when  

intellectual  property  or  otherwise  infringe  intellectual  

conducting business.

  property  rights  without  the  prior  consent  of  the  

Article 19

intellectual property rights holder.

Article 15

The company shall adopt policies for preventing conflicts  

of  interest  to  identify,  monitor,  and  manage  risks  

The  company  shall  engage 

in  business  activities  

  possibly resulting from unethical conduct, and shall also  

in  accordance  with  applicable  competition  laws  and  

offer  appropriate  means  for  directors,  managers,  and  

regulations,  and  may  not  make  rigged  bids,  establish  

other  stakeholders  attending  or  present  at  board  

output restrictions or quotas, or share or divide markets  

  meetings  to  voluntarily  explain  whether  their  interests  

  by allocating customers, suppliers, territories, or lines of  

  would potentially conflict with those of the company.

commerce.

Article 16

Article 20

The company shall establish effective accounting systems  

In the course of research and development, procurement,  

and  internal  control  systems  for  business  activities  that  

  manufacture, provision, or sale of products and services,  

  may possibly be at higher risk of being involved in unethical  

the  company  and  its  personnel  observe  applicable  laws  

conduct, not have under-the-table or secret accounts, and  

and  regulations  and  international  standards  to  ensure  

conduct reviews regularly so as to ensure that the design  

the  transparency  of  information  about,  and  safety  of,  

and enforcement of the systems are showing results.

their  products  and  services.  They  shall  also  adopt  and  

Its  internal  audit  unit  shall  periodically  examine  the  

  publish  a  policy  on  the  protection  of  the  rights  and  

company's  compliance  with  the  foregoing  systems  and  

interests  of  consumers  or  other  stakeholders,  and  carry  

  prepare audit reports and submit the same to the board  

out the policy in their operations, with a view to prevent  

of directors. The internal audit unit may engage a certified  

their  products  and  services  from  directly  or  indirectly  

  public accountant to carry out the audit, and may engage  

  damaging  the  rights  and  interests,  health,  and  safety  of  

  professionals to assist if necessary.

consumers or other stakeholders.

89

Corporate Governance Report 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UMC Ethical Corporate Management Best Practice Principles(Continue)

Article 21

Article 25

The  company  establishes  "UMC  Code  of  Conduct",  "UMC  

The  company  shall  continuously  assess  the  promotional  

  Board of Directors and Managers Code of Ethics", and "UMC  

effectiveness  promotion  of  its  ethical  management  

Employee Code of Conduct" to guide directors, supervisors,  

  policy. The company shall also disclose the measures taken  

  managers, employees, and substantial controllers on how  

for  implementing  ethical  corporate  management,  the  

to conduct business.

Article 22

status  of 

implementation,  and 

the  effectiveness  

of  promotion  on  company  websites,  annual  reports,  

The  company  shall  periodically  organize 

training  

and  prospectuses,  and  shall  disclose  ethical  corporate  

and  awareness  programs  for  company  personnel,  and  

  management  best  practice  principles  on  the  Market  

should  execute  reward  and  discipline  systems  according  

  Observation Post System (MOPS).

to the relevant rules of the company, so they understand  

Article 26

the  companies'  resolve  to  implement  ethical  corporate  

The company shall at all times monitor the development  

  management, related policies, prevention programs, and  

of relevant local and international regulations concerning  

the consequences of engaging in unethical conduct.

ethical  corporate  management  and  encourage  their  

Article 23

  directors, managers, and employees to make suggestions,  

The  company  shall  establish  a  whistle-blowing  system  

  which the company will base its review and improvements  

and  guarantee  the  confidentiality  of  the  identity  of  

for  its  adopted  ethical  corporate  management  policies  

  whistle-blowers and the content of reported cases.

and measures  in order to achieve better implementation  

Article 24

of ethical management.

The  company  shall  adopt  and  publish  a  well-defined  

Article 27

  disciplinary and appeal system for handling violations of  

The  principles  shall  be  implemented  after  the  board  

the  ethical  corporate  management  rules,  and  shall  

of directors grants approval.The same procedure shall be  

  properly  make  the  announcement  on  the  company's  

followed when the principles have been amended.

internal  website  including  the  title  and  details  of  the  

violation, and the actions taken in response.

Please  refer  to  the  website  http://www.umc.com/English/

pdf/UMC_Ethical_Corporate_Management_Best_Practice_

Principles_eng.pdf for the presentation shown above.

90

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Internal Control System Execution Status

Statement of Internal Control System

  during  the  assessing  period:  effectiveness  and  efficiency  

Based  on  the  findings  of  self-assessment,  UMC  states  the 

  of  operations,  reliability,  timeliness,  transparency  of  our  

following  with  regard  to  its  internal  control  system  during 

reporting,  and  compliance  with  applicable  rulings,  laws  

the year 2018.

  and regulations.

1.  UMC  acknowledges  and  understands  that  establishing,  

6. This  Statement  is  an  integral  part  of  the  UMC’s  annual  

  operating  and  maintaining  an  internal  control  system  

report  and  prospectus,  and  will  be  made  public.  Any  

  are  the  responsibilities  of  its  Board  of  Directors  and  

falsehood,  concealment,  or  other  illegality  in  the  content  

  management,  and  such  a  system  has  been  established.  

  made public will entail legal liability under Articles 20, 32,  

  The  purpose  of  establishing  the  internal  control  system  

171 and 174 of the Securities and Exchange Law.

is  to  reasonably  assure  the  following  objectives:  The  

7.  This  Statement  was  passed  by  the  Board  of  Directors  in  

  effectiveness  and  efficiency  of  operations  (including  

their  meeting  held  on  March  6,  2019,  with  none  of  nine  

  profitability,  performance  and  the  safeguarding  assets);  

  attending  directors  expressing  dissenting  opinions,  and  

reliability,  timeliness,  transparency  of  our  reporting,  and  

the remainder all affirming the content of this Statement.

  compliance with applicable rulings, laws and regulations.

2. The  internal  control  system  has  inherent  limitations.  

  No  matter  how  perfectly  designed,  an  effective  internal  

  control  system  can  only  provide  reasonable  assurance  

  of  accomplishing  the  aforementioned  three  objectives.  

United Microelectronics Corporation

  Moreover, the effectiveness of an internal control system  

  may  be  subject  to  changes  of  environmental  or  

  circumstances.  Nevertheless,  our  internal  control  system  

  contains  self-monitoring  mechanism  and  UMC  takes  

  corrective actions whenever a deficiency is identified.

3. UMC evaluates the design and operating effectiveness of  

its internal control system based on the criteria provided  

Chairman: Stan Hung

in  the  Regulations  Governing  Establishment  of  Internal  

  Control  Systems  by  Public  Companies  (herein  below,  the  

  “Regulations”).  The  criteria  adopted  by  the  Regulations  

identify five components of internal control based on the  

  process  of  management  control:  (1)  control  environment,  

President: S C Chien

(2)  risk  assessment,  (3)  control  activities,  (4)  information  

  and  communication,  and  (5)  monitoring  activities.  Each  

  component further contains several items. Please refer to  

the Regulations for details.

4. UMC has evaluated the design and operating effectiveness  

President: Jason S Wang

  of  its  internal  control  system  according  to  the  aforesaid  

  Regulations.

5. Base on the findings of the assessment mentioned in the  

  preceding paragraph, UMC believes that, on December 31,  

  2018, its internal control system (including its supervision  

  and management of subsidiaries), had effectively assured  

that the following objectives had been reasonably achieved  

March 6, 2019

If a Certified Public Accountant (CPA) Was Engaged to Conduct a Special Audit of the Internal Control System, Provide Its Audit 

Report:

According to “Regulations Governing Establishment of Internal Control Systems by Public Companies”, the company was not 

required to engage a certified public accountant (CPA) to conduct a special audit of internal control system in 2018.

91

Corporate Governance Report 
 
 
 
 
 
 
 
 
 
 
 
 
 
Legal Liabilities of Company and Employees, Company Penalties Toward Employee Violation of 
Company Regulations, Key Oversights and Improvement

Company Legal Liabilities

Improvement

UMC  had  an  electrical  related  incident.  The  competent  authority 
found UMC in violation of the Occupational Safety and Health Act and 
imposed a fine of NTD 120,000.

The competent authority found that a few of UMC's operations "failed 
to comply with regulations" and violated the Labor Standards Act, and 
imposed a fine of NTD 200,000.

Note: The data represented for 2019 was gathered until March 6, 2019

Strengthened the contractor's workplace hazard notification and 
agreement operation.

UMC has improved the said oversights and complied with the Labor 
Standards Act.

Major Resolutions and Implementation Status of the Shareholders’ Meetings and the Board of 
Directors’ Meetings

The Major Resolutions from the Shareholders’ Meetings 

1.  The Company’s 2018 Annual General Meeting was held at UMC’s Fab 8S Conference Hall, No.16, Creation Rd. 1, Hsinchu Science  

  Park on June 12, 2018. The resolutions approved by the shareholders present in person or by proxy and its implementation  

status were as follows:

Items Resolutions from the Annual General Meeting

Implementation Status

1.

2.

3.

4.

5.

6.

Acceptance of the 2017 business report and 
financial statements

•	 In	 2017,  UMC’s  sales  revenue  was  NTD  149,284,706  thousand,  and  
  net  income  attributable  to  the  parent  reached  NTD  9,628,734  thousand,  

leading to an earnings per share of NTD 0.79.

Acceptance of the 2017 Earnings Distribution 
Chart

•	 Distribution	of	2017  earnings with cash dividend of NTD 8,557,023,101
•	 The	 ex-dividend	 record	 date	 was	 set	 for	 July	 16,  2018,  and  cash  dividend  for  
  common shares was paid on July 31, 2018.

Election of the Company’s 14th Term of 
Directors

Approval of the amendment of the Company’s 
Articles of Incorporation

Approval  of  the  issuance  plan  of  private 
placement 
for  common  shares,  ADR/GDR 
or  CB/ECB,  including  Secured  or  Unsecured 
Corporate Bonds. The amount of shares issued 
or convertible is proposed to be to no more than 
10% of registered capital

Approval  of  releasing  the  newly  elected 
directors from non-competition restrictions

•	 List	of	the	Company’s	14th term of directors Elected:
  Stan Hung, Cheng-Li Huang, Wenyi Chu, Lih J. Chen, 
  Jyuo-Min Shyu, Chung Laung Liu, Ting-Yu Lin, 
  SC Chien, representative of Hsun Chieh Investment Co., Ltd., and  
  Jason Wang, representative of Silicon Integrated Systems Corp.

•	 Implemented	in	accordance	with	resolution

•	 Considering	 market	 conditions,	 the	 resolution	 for	 terminating	 the	 issuance	 
  plan  for  private  placement  was  passed  during  the  7th  board  meeting  of  the  
  14th term.

•	 Implemented	in	accordance	with	resolution

2.  The Company’s 2018 First Extraordinary Meeting was held at UMC’s Fab 8S Conference Hall, No.16, Creation Rd. 1, Hsinchu  

  Science  Park  on  August  20,  2018.  The  resolutions  approved  by  the  shareholders  present  in  person  or  by  proxy 

  and its implementation status:

Items Resolutions from the Extraordinary Meeting

Implementation Status

Approval  of  proposal  for  HeJian  Technology 
(Suzhou) Co., Ltd., a subsidiary of the Company, 
to issue an initial public offering (“IPO”) of RMB 
denominated ordinary shares (A-shares) on the 
Shanghai Stock Exchange

Approval  of  releasing  the  directors  from  non-
competition restrictions

1.

2.

92

•	 Implemented	in	accordance	with	resolution

•	 Implemented	in	accordance	with	resolution

United Microelectronics Corporation  |  Annual Report 2018 
 
Major  Resolutions  and  Implementation  Status  of  the  Shareholders’  Meetings  and  the  Board  of  Directors’  Meetings
(Continue)

The Major Resolutions from the Board of Directors’ Meeting

Meeting Date

Major Resolutions

2018.03.07

2018.04.25

2018.06.12

2018.06.29

2018.07.25

2018.10.24

2018.11.05

2018.12.12

2019.03.06

•	 Approved	the	2017 Business Report and Financial Statements.
•	 Approved	the	2017 distributable compensation for employees and directors.
•	 Approved	the	2017 Dividend Distribution.
•	 Approved	termination	of	the	issuance	plan	for	private	placement,	which	was	approved	at	the	2017 Annual  
  General Meeting.
•	 Approved	the	proposal	for	private	placement	based	on	future	operation	needs	and	will	propose	at	the	2018  
  Annual General Meeting for discussion.
•	 Approved	the	date	of	convening	the	2018 Annual General Shareholders’ Meeting, meeting agenda and  
  submission period for shareholder proposals.
•	 Approved	capital	budget	execution.
•	 Approved	to	increase,	endorse	and	guarantee	the	syndication	loan	for	United	Semiconductor	(Xiamen)	Co.,	Ltd.
•	 Approved	to	change	Chartered	Public	Accountant	due	to	the	internal	reorganization	of	the	CPA	firm.
•	 Approved	UMC's	donation	to	UMC	Science	and	Culture	Foundation.
•	 Approved	to	release	the	managerial	officer	from	non-competition	restrictions.
•	 Approved	the	Company's	18th	share	repurchase	program.

•	 Approved	the	Q1, 2018 Consolidated Financial Statements.
•	 Approved	capital	budget	execution.
•	 Approved	to	release	the	managerial	officer	from	non-competition	restrictions.
•	 Approved	the	announced	merger	between	Fortune	Venture	Capital	Corp.	and	subsidiary	UMC	New	Business	 

Investment Corp.

•	Stan	Hung	is	unanimously	elected	as	Chairman	by	the	Board	of	Directors.
•	Approved	to	appoint	members	of	the	4th term of remuneration committee.
•	Approved	to	appoint	members	of	the	2nd term of nominating committee.
•	Approved	the	record	date	for	2017 cash dividend.
•	Approved	the	adjustment	of	2017 cash dividend ratio.

•	 Approved	proposal	for	HeJian	Technology	(Suzhou)	Co.,	Ltd.,	a	subsidiary	of	the	Company,	to	issue	an	initial	 
  public offering ("IPO") of RMB denominated ordinary shares (A-shares) on the Shanghai Stock Exchange.
•	 Approved	to	release	the	managerial	officer	from	non-competition	restrictions.
•	 Approved	the	date	of	convening	the	2018 Extraordinary General Shareholders’ Meeting, meeting agenda and  
  submission period for shareholder proposals.
•	 Approved	the	acquisition	of	the	common	shares	of	Mie	Fujitsu	Semiconductor	Limited.

•	 Approved	the	Q2, 2018 Consolidated Financial Statements.
•	 Approved	capital	budget	execution.
•	 Approved	the	acquisition	of	the	common	shares	of	Nexpower	Technology	Corporation.

•	 Approved	the	Q3, 2018 Consolidated Financial Statements.

•	 Approved	the	Company’s 19th share repurchase program.

•	 Approved	capital	budget	execution.

•	 Approved	the	2018 Business Report and Financial Statements.
•	 Approved	the	2018 distributable compensation for employees and directors.
•	 Approved	the	2018 Dividend Distribution.
•	 Approved	termination	of	the	issuance	plan	for	private	placement,	which	was	approved	at	the	2018 Annual  
  General Meeting.
•	 Approved	the	date	of	convening	the	2019 Annual General Shareholders’ Meeting, meeting agenda and  
  submission period for shareholder proposals.
•	 Approved	for	UMC's	Singapore	branch	to	lend	funds	to	United	Semiconductor	(Xiamen)	Co.,	Ltd.
•	 Approved	the	capital	reduction	for	the	cancellation	of	treasury	shares.
•	 Approved	UMC's	donation	to	UMC	Science	and	Culture	Foundation.
•	 Approved	to	designate	a	Company	Secretary.

93

Corporate Governance Report 
Major Issues of Record or Written Statements Made by Any Director Dissenting to Important 
Resolutions Passed by the Board of Directors During 2018 and as of the Annual Report Printing 
Date:
None.

Resignation or Dismissal of Chairman, President, and Heads of Accounting, Finance, Internal 
Audit and R&D During 2018 and as of the Annual Report Printing Date:

None.

Certification of Employees Whose Jobs Are Related to the Release of the Company's Financial 
Information

Number of Employees

Certification Name

Internal Audit

Accounting

Finance

Certified Public Accountants (CPA)

US Certified Public Accountants (US CPA)

Association of Chartered Certified Accountants Singapore (ACCA Singapore)

Certified Internal Auditor (CIA)

CABIAV Certificate of Certified Business Valuator

 2

 1

17 

5

 1

4

2

2

1

1

94

United Microelectronics Corporation  |  Annual Report 2018 
 
Certified Public Accountant (CPA) Fee Information
For the Non-Audit Fee Paid to CPA, CPA Firm, and Its Affiliate Greater than 1/4 of the Audit 
Fee, the Amount of Audit and Non-Audit Fee and Content of Non-Audit Service Should Be 
Disclosed
None, please refer to the following table.

Name of CPA Firm

Name of CPA

Audit 
Fee

System 
Design

Business 
Registration

Human 
Resources

Others
(Note)

Subtotal

Period

In Thousand NTD

Non-Audit Fees CPA Audit 

Remark

Ernst & Young, 
Taiwan

Wan-Ju Chiu,
Hsin-Min Hsu

57,098

69

1,214

1,283

2018.01.01~
2018.12.31

-

Note: The “Others” category within the non-audit fees mainly includes fees paid for services to review the checklist of public disclosure and filing and reading of  

the annual report and Prospectuses.

If the CPA Firm Changes, and the Audit Fee Paid in the Year of such Change Is Reduced from the 
Audit Fee of the Previous Year, the Amounts of the Audit Fees Before and After such Change 
and the Reason of such Change Should Be Disclosed
None.

If the Audit Fee Is Reduced by More than 15% from Last Year, the Amount, Ratio, and Reason for 
the Reduction of the Audit Fee Should Be Disclosed
In 2018, the audit fee was around NTD 10 million less than the audit fee from 2017, which is a reduction of around 15%. This is 

mainly due to the reduction in CPA audit hours. 

95

Corporate Governance Report 
 
 
 
 
Information of CPA Change
1. About the Previous CPA

Date of Change

2018.03.07

Reason and Description of the Change

The internal job responsibilities of the CPA firm have been adjusted, in that CPA 
Shao-Pin Kuo and CPA Wan-Ju Chiu have been replaced by CPA Wan-Ju Chiu and 
CPA Hsin-Min Hsu.

Disclosure that the Appointer or CPA is either Terminated 
or Refuses the Appointment

Situation

Party

CPA

Appointer

Termination of 
appointment

Does not accept 
(continuous) the 
appointment

Not applicable

Not applicable

Not applicable

Not applicable

Opinions and Reasons of Audit Report Issued in the Past 
Two Years other than Unqualified Opinions

None.

Any Disagreement with the Issuer

Yes

Accounting principles or practice

Disclosure of financial report

Scope or steps of audit

Others

Other Items to be Disclosed. (Those to be Disclosed 
According to Article 10 Paragraph 6 Item 1-4 to Item 1-7 of 
this Criteria)

No

Description

None. 

96

United Microelectronics Corporation  |  Annual Report 2018Information of CPA Change(Continue)

2. About the Successor CPA

Name of CPA Firm

Name of CPA

Date of Appointment

Consultation Results and Opinions on Accounting Treatments 
or Principles with Respect to Specified Transactions and the 
Company's Financial Reports that the CPA might Issue Prior to 
the Engagement

Ernst & Young, Taiwan

Wan-Ju Chiu, Hsin-Min Hsu

2018.03.07

None.

Documentary Opinion on the Matter of Disagreement between 
Successor CPA and Former CPA

None.

3.  Documentary reply by former CPA with respect to the matters of Article 10 Paragraph 6 Item 1 and Item 2-3 of this  
  Criteria.
  None.

UMC’s  Chairman,  Presidents,  Chief  Financial  Officer,  and 

Managers in Charge of Its Finance and Accounting Operations 

Did Not Hold Any Positions in UMC’s Independent Auditing Firm 

or Its Affiliates in the Most Recent Year.

97

Corporate Governance ReportChange in Shareholding of Directors, Managers and Major 
Shareholders Who Own 10% or More of UMC Shares

Title

Name

Chairman, CSO

Stan Hung

Director

Director

Hsun Chieh Investment Co., Ltd.

Silicon Integrated Systems Corp.

Independent Director

Cheng-Li Huang

Independent Director

Independent Director

Wenyi Chu

Lih J. Chen

Independent Director

Jyuo-Min Shyu

Director

Director

President

President

Chung Laung Liu

Ting-Yu Lin

SC Chien

Jason Wang

Senior Vice President

Ming Hsu

Senior Vice President, General 
Counsel

Lucas S Chang

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

TS Wu

C C Hsu

M C Lai

G C Hung

Wenchi Ting

Jerry CJ Hu

Y S Shen

Steven S Liu

SR Sheu

M L Liao

Holding  
Increase 
(Decrease)

2019

Pledged  
Holding  
Increae 
(Decrease)

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Unit: shares

2018

Pledged  
Holding  
Increae 
(Decrease)

0

0

0

0

0

0

0

0

0

Holding  
Increae  
(Decrease)

23,575,000

0

(30,000,000)

0

0

0

0

0

0

4,200,000

4,590,000

6,600,000

580,000

600,000

(150,000)

600,000

0

0

0

0

0

400,000

400,000

240,000

600,000

545,000

(17,000)

600,000

0

465,000

0

0

0

0

0

0

0

98

United Microelectronics Corporation  |  Annual Report 2018Change in Shareholding of Directors, Managers and Major Shareholders who own 10% or more of UMC Shares(Continue)

Title

Name

Vice President

Vice President

Vice President, CFO

Vice President, Chief Human 
Resources Officer

S S Hung

Francia Hsu

Chitung Liu

Eric Chen

Associate Vice President

Johnson Liu

Associate Vice President

Associate Vice President

T W Liu

S F Tzou

Associate Vice President

Le Tien Jung

Associate Vice President

Yau Kae Sheu

Associate Vice President

J Y Wu

Associate Vice President

Osbert Cheng

Associate Vice President

Steven Hsu

Associate Vice President

Purakh Raj Verma 

Associate Vice President

Chih Chong Wang

Associate Vice President

C Y Hsu

Associate Vice President

Ji Fu Kung

Associate Vice President

C P Yen

Associate Vice President

Mindy Lin

Associate Vice President

Pang Min Wang

Former Director

UMC Science and Culture 
Foundation

Former Senior Vice President

Stephen K Chen

Former Vice President

Max Chao

Note 1: No shareholder owns 10% or more of UMC shares.

Note 2: The data presented for 2019 was gathered until February 28, 2019.

Holding  
Increase 
(Decrease)

2019

Pledged  
Holding  
Increae 
(Decrease)

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

N/A

N/A

N/A

N/A

N/A

N/A

Holding  
Increae  
(Decrease)

30,000

280,000

600,000

534,443

196,000

250,000

(250,000)

250,000

250,000

(100,000)

250,000

250,000

0

250,000

0

250,000

250,000

250,000

0

0

625,000

0

Note 3: Counterparts of the shareholding transferred or pledged are not related parties.

Note 4: The shares change for Mindy Lin and Pang Min Wang are calculated starting from the assumed date.

Note 5: The shares change for UMC Science and Culture Foundation, Stephen K Chen and Max Chao are reported until their resignation.

Unit: shares

2018

Pledged  
Holding  
Increae 
(Decrease)

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

99

Corporate Governance ReportRelationship Among the Top Ten Shareholders

Name

Shares Held

Shares Held 
by Spouse 
or Underage 
Children

Total Shares 
Held in 
the Name 
of Other 
Persons

Shares

%

Shares %

Shares %

Remarks

Relationship Between 
the Company’s TopTen 
Shareholders Who Are Either 
Related Parties, Spouses, or 
Relatives Within the Second 
Degree of Kinship, His/
Her/Its Title (or Name) and 
Relationship

Title
(or Name)

Relationships

JPMorgan Chase Bank, N.A. acting 
in its capacity as depositary and 
representative to the holders of ADRs

JPMorgan Chase Bank N.A. Taipei 
Branch in custody for Capital World 
Growth and Income Fund

719,383,700

5.70

N/A N/A

0

0

None

None

451, 798,809

3.58

 N/A N/A

 0

 0

None

None 

Hsun Chieh Investment Co., Ltd.

441, 3 7 1 ,000

3.50

N/A N/A

Representative:
SC Chien

1,894,648

0.02

0

0

Silicon Integrated Systems Corp.

315,380,424

2.50

N/A N/A

Representative:
Jason Wang

0

0

0

0

Silchester International Investors 
International Value Equity Trust

215,169,000

1.70

N/A N/A

Prudential Assurance Company Ltd.

181,498,000

1.44

N/A N/A

Yann Yuan Investment Co., LTD.

172,000,000

1.36

N/A N/A

Cathay Life Insurance Co., Ltd.

160, 163, 2 3 7

1.27

N/A N/A

Taiwan Life Insurance Co., Ltd.

154,934,000

1.23

N/A N/A

JPMorgan Chase Bank N.A. Taipei Branch 
in custody for EuroPacific Growth Fund

149,780,000

1.19

N/A N/A

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

None

None

None

None

None

None

None

None

None

None

None

None

None

None

None

None

None

None

None

None

Note: The data shown above was recorded on July 22, 2018, which was the book closure date of the 2018 First Extraordinary General Meeting.

100

United Microelectronics Corporation  |  Annual Report 2018Shares Held by the Company, Directors, Managers and Companies 
Directly  or  Indirectly  Controlled  by  the  Company,  and 
the  Comprehensive  Shareholding  Ratio  Based  on  Combined 
Calculation

Investee Companies

UMC

Shares Held by Directors, 
Managers and Companies 
Directly or Indirectly Controlled 
by the Company

Comprehensive Shareholding

Number of 
Shares

Percentage of 
Ownership
(%)

Number of 
Shares

Percentage of 
Ownership
(%)

Number of 
Shares

Percentage of 
Ownership
(%)

UMC GROUP (USA)

UNITED MICROELECTRONICS (EUROPE) 
B.V.

UMC CAPITAL CORP.

TLC CAPITAL CO., LTD.

GREEN EARTH LIMITED

16,437,500

9,000

7 1,662,97 7

387,600,000

977,000,000

FORTUNE VENTURE CAPITAL CORP

462,000,000

UMC INVESTMENT (SAMOA) LIMITED

1 ,520,000

MTIC HOLDINGS PTE. LTD.

1 2,000,000

100.00

100.00

100.00

100.00

100.00

100.00

100.00 

45.44

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

16,437,500

9,000

7 1,662,97 7

387,600,000

977,000,000

462,000,000

100.00

100.00

100.00

100.00

100.00

100.00

1 ,520,000

100.00 

1 2,000,000

NEXPOWER TECHNOLOGY CORP.

33,998,269

47.7 5 

32,668, 0 1 3

45.88

66,666,282

UNITECH CAPITAL INC.

21 ,000,000

HSUN CHIEH INVESTMENT CO., LTD.

168 , 973,049

42.00

36.49

BEST ELITE INTERNATIONAL LIMITED

664,966, 2 7 5

100.00

2,500,000

5.00

23,500,000

0

0

0

0

1 6 8 ,973,049

664,966, 2 7 5

WAVETEK MICROELECTRONICS
CORPORATION

UMC GROUP JAPAN

UMC KOREA CO., LTD.

OMNI GLOBAL LIMITED

UNITED SEMICONDUCTOR
(XIAMEN) CO., LTD.

126,230,387

77.74 

3,867, 41 4

2.38

1 3 0,097, 8 0 1

1,000

1 1 0,000

4,300,000

100.00

100.00 

100.00 

0

0

0

0

0

0

1,000

1 1 0,000

4,300,000

0

0 

N/A

64.95

N/A

FARADAY TECHNOLOGY CORPORATION

34,240, 2 1 3

YANN YUAN INVESTMENT CO., LTD.

46,000,000 

SINO PARAGON LIMITED

2,600,000

TRIKNIGHT CAPITAL CORPORATION

168,000,000 

1 3.78 

30.87

100.00 

40.00

142,973

0.06

34,383, 1 86

0

0

0

0

0

0

46,000,000 

2,600,000

168,000,000 

Note 1: The investee companies are the investees under equity method and funds.

Note 2: The number of shares is based on the actual number of shares held on December 31, 2018.

45.44

93.63

4 7.00

36.49

100.00

80. 1 2

100.00

100.00

100.00

64.95

1 3.84

30.87

100.00

40.00

101

Corporate Governance Report102

United Microelectronics Corporation  |  Annual Report 2018Issuance of Corporate Bonds

Capital Overview
104  Capital and Shares
109 
1 1 5   Preferred Shares
1 1 6   American Depositary Receipts
1 1 8   Employee Stock Option Handling Status
1 1 8  
Issuance of New Restricted Employee Shares  
1 1 8   Status of New Shares Issuance in Connection with  

Mergers and Acquisitions

1 1 8   Financing Plans and Execution Status 

103

Capital Overview 
Capital and Shares
Source of Capital

Month/Year Issue Price

(Per 
Share)

Shares
(In Thousands)

Authorized 
Capital

Amount
(In Thousand 
NTD)

Paid-in Capital

Shares
(In Thousands)

Amount
(In Thousand 
NTD)

Source of 
Capital

Capital
Increased by
Assets Other
than Cash

Remarks

Other

September, 
2018

NTD 10

26,000,000

260,000,000

12,424,319

124,243,187

NOTE 1

-

-

Note 1:  On September 4, 2018, the Hsinchu Science Park Bureau, Ministry of Science and Technology approved the capital reduction of NTD 2,000,000 thousand  

due to cancellation of treasury  shares. The Company’s paid-in capital was decreased to NTD 124,243,187 thousand.

Note 2: The data shown above was gathered until March 6, 2019.

Type of Stock

Share Type

Issued Shares(Note 1)

Un-Issued Shares

Total Shares

Authorized Capital

Common stock

12,424,318,715

13,575,681,285

26,000,000,000

Note 1:  The Company’s issued shares are listed stock.

Note 2:  The data shown above was gathered until March 6, 2019.

Unit: Shares

Allotment for Stock 
Option Certificate 
(Units)
2,000,000,000

Information for Shelf Registration

Not Applicable

Status of Shareholders 
Common Shares

Item

Number of 
Shareholders

Shareh0lding 
(Shares)

Government 
Agencies

Financial 
Institutions

Other Juridical 
Persons

Natural Persons

Foreign 
Institutions and 
Natural Persons

Total

14

70

680

519,948

1,613

522,325

194,397,910

552,117,435

1,930,599,039

3,324,272,027

6,622,932,304

12,624,318,715

Percentage (%)

1.54

4.38

15.29

26.33

52.46

100.00

Note: The data shown above was recorded on July 22, 2018, which was the book closure date of 2018 First Extraordinary General Meeting.

104

United Microelectronics Corporation  |  Annual Report 2018 
Capital and Shares(Continue)

Shareholding Distribution Status 
Common Shares

Class of Shareholding
(Unit: Shares)

Number of Shareholders

1~     

1,000~    

 5,001~

10,001~

15,001~

20,001~

30,001~

50,001~

100,001~

200,001~

400,001~

600,001~

800,001~

Total

999

5,000

10,000

15,000

20,000

30,000

50,000

100,000

200,000

400,000

600,000

800,000

1,000,000

Over 1,000,001

197,598

214,465

53,521

19,725

10,635

10,283

7,349

4,715

2,004

901

271

133

96

629

522,325

Shareholding
(Shares)

61,229,053

498,100,385

395,731,820

241,748,239

189,246,999

252,414,178

286,447,966

328,705,045

277,468,511

248,766,944

132,610,460

92,732,574

86,972,342

9,532,144,199

12,624,318,715

Percentage (%)

0.49

3.95

3.13

1.91

1.50

2.00

2.27

2.60

2.20

1.97

1.05

0.73

0.69

75.51

100.00

Note: The data shown above was recorded on July 22, 2018, which was the book closure date of 2018 First Extraordinary General Meeting.

Preferred Shares

None

List of Major Shareholders

Shareholder's Name

Shareholding

Shares

Percentage (%)

JPMorgan Chase Bank, N.A. acting in its capacity as depositary and 
representative to the holders of ADRs

JPMorgan Chase Bank N.A. Taipei Branch in custody for Capital World 
Growth and Income Fund

Hsun Chieh Investment Co., Ltd.

Silicon Integrated Systems Corp.

Silchester International Investors International Value Equity Trust  

Prudential Assurance Company Ltd.

Yann Yuan Investment Co., Ltd.

Cathay Life Insurance Co., Ltd.

Taiwan Life Insurance Co., Ltd.

JPMorgan Chase Bank N.A. Taipei Branch in custody for EuroPacific Growth 
Fund

  719,383,700 

 451,798,809 

 441,371,000 

  315,380,424 

 215,169,000

  181,498,000 

 172,000,000 

  160,163,237

 154,934,000 

 149,780,000 

Note: The data shown above was recorded on July 22, 2018, which was the book closure date of the 2018 First Extraordinary General Meeting.

5.70

3.58

3.50

2.50

1.70

1.44

1.36

1.27

1.23

1.19

105

Capital OverviewCapital and Shares(Continue)

Market Price, Net Worth, Earnings, and Dividends Per Common 
Share

In NTD

Item

Market Price Per 
Share
(Note 1)

Highest

Lowest

Average

Net Worth Per 
Share

Before Distribution

After Distribution

Earnings Per 
Share

Weighted Average Shares 
(shares)

Dividends Per 
Share

Earnings Per Share (Note 2)

Earnings Per Share (Note 3)

Cash Dividends

Stock Dividends

Earning Distribution

Capital Distribution

Accumulated 
Undistributed Dividend

Return on 
Investment

Price/Earnings Ratio  
(Note 4)

Price/Dividend Ratio 
 (Note 5)

Cash Dividend Yield  
(Note 6)

2019 (Note 7)

12.00

10.55

11.31

-

-

-

-

-

-

-

-

-

-

-

-

2018

18.65

10.40

14.92

17.28

*

2017

16.80

11.30

14.23

17.45

16.75

12,103,879,632

12,208,239,978

0.58

*

*

*

*

-

25.83

*

*

0.79

0.79

0.71164307

-

-

-

17.30

19.21

0.05

*Subject to change based on resolutions of the 2019 shareholders’ meeting.

Note 1:  Referred to TWSE website.

Note 2:  EPS calculation was based on weighted average shares outstanding for the year.

Note 3:  EPS  calculation  was  based  on  retroactive  adjustment  for  capitalization  of  unappropriated  earnings,  additional  paid-in  capital  and  

employees’ compensation - stock.

Note 4:  Price/Earnings Ratio = Average Market Price/Earnings Per Share.

Note 5:  Price/Dividend Ratio = Average Market Price/Cash Dividends Per Share.

Note 6:  Cash Dividend Yield = Cash Dividends Per Share/Average Market Price.

Note 7:  The data represented for 2019 was gathered until March 6, 2019.

Note 8:  The average closing prices for years 2017, 2018 and 2019 were NTD 13.67, NTD 14.98, and NTD 11.37, respectively.

106

United Microelectronics Corporation  |  Annual Report 2018 
Capital and Shares(Continue)

Dividend Policy and Status

Dividend Policy in Company’s Articles of Incorporation

funding  requirements,  domestic  and  overseas  competitive 

According to the Company’s Articles of Incorporation, current 

landscape  and  its  capital  expenditure  forecast,  as  well  as 

year’s  earning,  if  any,  shall  be  distributed  in  the  following 

shareholders’ interest, balancing dividends and UMC’s long-

order:

1.  Payment of taxes.

term financial planning. The Board of Directors shall propose 

the  distribution  plan  and  submit  it  to  the  shareholders’ 

2.  Making up for loss in preceding years.

meeting  every  year.  The  distribution  of  shareholders 

3.  Setting  aside  10%  for  legal  reserve,  except  for  when  

dividend shall be allocated as cash dividend in the range of 

  accumulated  legal  reserve  has  reached  the  Company’s  

20% to 100%, and stock dividend in the range of 0% to 80%.

  paid-in capital.

4.  Appropriating or reversing special reserve by government  

Proposed Distribution of Dividend

  officials or other regulations.

5.  The  remaining,  plus  the  previous  year’s  unappropriated  

  earnings, shall be distributed according to the distribution  

The Company’s proposal for 2018 earnings distribution was 
passed  during  the  7th  board  meeting  of  the  14th  term.  This 
proposal, a cash dividend of NTD 6,916,104,855 from retained 

  plan  proposed  by  the  Board  of  Directors  according  to  

earnings (NTD 0.58 per share), will be discussed at the Annual 

the  dividend  policy  in  paragraph  two  of  this  clause  and  

General Meeting.

submitted to the shareholders’ meeting for approval.

The  dividend  policy  of  the  Company  shall  be  determined 

pursuant to factors such as the investment environment, its 

Effect of Share Dividends to Operating Performance and EPS
Not applicable.

107

Capital Overview 
 
Capital and Shares(Continue)

Employees’ and Directors’ Compensation

Related 

Information  of  Employees’  and  Directors’ 

them  in  the  profit  or  loss  during  the  periods  when  earned 

Compensation in Company’s Articles of Incorporation

for the  years. The Board of Directors estimated the amount 

Employees’  and  Directors’  Compensation  Policy  in  the 

by  taking  into  consideration  the  Articles  of  Incorporation, 

Company’s Articles of Incorporation is as follows:

government regulations and industry averages. If the Board 

The  Company  shall  allocate  no  less  than  5%  of  profit  as 

of  Directors  resolves  to  distribute  employee  compensation 

employees’ compensation and no more than 0.1% of profit as 

through stock, the number of stock distributed is calculated 

directors’ compensation for each profitable fiscal year after 

based on total employee compensation divided by the closing 

offsetting any cumulative losses.

price  of  the  day  before  the  Board  of  Directors  meeting.  If 

The  aforementioned  employees’  compensation  will  be 

the Board of Directors subsequently modifies the estimates 

distributed in shares or cash. The employees of the Company’s 

significantly,  the  Company  will  recognize  the  change  as  an 

subsidiaries  who  fulfill  specific  requirements  stipulated  by 

adjustment  in  the  profit  or  loss  in  the  subsequent  period. 

the  Board  of  Directors  may  be  granted  such  compensation. 

Information  relevant  to  the  aforementioned  employees’ 

Directors may only receive compensation in cash.

compensation  and  remuneration  to  directors  can  be 

The  Company  may,  by  a  resolution  adopted  by  a  majority 

obtained from the “Market Observation Post System” on the 

vote  at  a  meeting  of  the  Board  of  Directors  attended  by 

website of the TWSE.

two-thirds  of  the  total  number  of  directors,  distribute  the 

aforementioned  employees’  and  directors’  compensation  

The  Distributable  Compensation  for  Employees  and 

and report to the shareholders’ meeting for such distribution.

Directors Passed during the Board Meeting

The  Basis  for  Estimating  the  Amount  of  Employees’ 

Compensation  and  Remuneration  to  Directors,  for 

for 
The  Company’s  2018  distributable  compensation 
employees  and  directors  was  passed  during  the  7th  board 
meeting of the 14th term. The distribution status is as follows:

Calculating  the  Number  of  Shares  to  be  Distributed  as 

The Company is to distribute NTD 1,400,834,932 as employee 

Employees’  Compensation,  and  the  Accounting  Treatment 

cash  compensation  and  NTD  7,623,740  as  directors’ 

of the Discrepancy, between the Actual Distributed and the 

compensation.

Estimated Amount.

There is no difference between the amount passed during the 

The  Company  estimates  the  amounts  of  the  employees’ 

Board meeting and the recognized amount during 2018 of the 

compensation and  remuneration to directors and recognizes 

aforementioned employees’ and directors’ compensation.

The Amount of Employees’ Compensation Distributed in Stocks, and such Amount as a Percentage of the Sum of Net Income 

Stated in the Parent Company Only Financial Reports  and Total Employees’ Compensation: 

None.

Actual Distribution of Employees’ Compensation and Directors’ Remuneration for 2017:

In Thousand NTD

Item

Board Resolution (March 7, 2018)

Employees’ compensation distributed in Cash

Remuneration to directors

1,032,324

11,452

Note: The aforementioned actual distribution of employees’ compensation and remuneration to directors were consistent with the resolutions of  the Board 

of Directors meeting held on March 7, 2018.

108

United Microelectronics Corporation  |  Annual Report 2018Issuance of Corporate Bonds

Name of Bond

Issue date

Denomination 

Listing and trading

Issue price

Total amount

Coupon rate

Tenor and maturity date

Guarantor

Trustee

Underwriter

Transferring, paying or conversion agent

Legal counsel

Independent auditor

Repayment

Outstanding amount

Redemption clause

Restrictive clause

Name of credit rating agency, rating date and 
result of rating

United Microelectronics Corporation 4th Round of Unsecured Straight Bonds

June 7, 2012

NTD 1 million

Taipei Exchange

NTD 1 million

NTD 10,000 million; 5-year bond for NTD 7,500 million and 7-year bond for NTD 2,500 
million

Fixed rate; 1.43% p.a. and 1.63% p.a. for 5-year and 7-year bonds, respectively

5-year bond: June 7, 2017
7-year bond: June 7, 2019

None

Taiwan Cooperative Bank

None

None

Chen & Lin Attorneys-at-Law

Ernst & Young, Taiwan

The principal of 5-year and 7-year bonds will be repaid respectively in June 2017 and 
June 2019 upon maturity.
Interest will be paid annually for both 5-year and 7-year bonds.

NTD 2,500 million for the 7-year bond (Note)

None

None

Taiwan Ratings Corporation
May 14, 2012
twAA

Other rights of bondholders

Dilution ef fec t or other adverse impac t on 
existing shareholders’ equity, if conversion, 
exchange, or subscription rights are attached

Custodian

None

None

None

Note: NTD 7,500 million for the 5-year bond was repaid on June 7, 2017.

Buyback of Treasury Stock

Instance

Purpose

Buyback period
Price range (NTD)

19th round

18th round

17th round

16th round

For cancellation

For cancellation

To transfer to 
employees

2018.11.06~2019.01.05 2018.03.08~2018.05.07 2016.05.12~2016.07.11
7.55~20.80

7.90~18.70

9.85~21.30

To transfer to 
employees
2015.07.30~2015.09.29
7.55~18.80

Classification and executed 
volume(Shares)
Executed amount(NTD)
Cancellation and transfer volume(Shares) 0
Cumulative holding(Shares)

300,000,000 
Common shares

3,349,946,428

500,000,000

Cumulative holding as a percentage of total 
issued shares(%)

4.02

Note: The data shown above was gathered until March 6, 2019.

200,000,000 
Common shares

200,000,000 
Common shares

200,000,000 
Common shares

3,129,182,054

200,000,000

0

0

2,395,793,376

2,203,442,499

0

200,000,000

1.61

200,000,000

0

0

109

Capital OverviewIssuance of Corporate Bonds(Continue)

Name of Bond

Issue date

Denomination

Listing and trading

Issue price

Total amount

Coupon rate

Tenor and maturity date

Guarantor

Trustee

Underwriter

Transferring, paying or conversion agent

Legal counsel

Independent auditor

Repayment

Outstanding amount

Redemption clause

Restrictive clause

United Microelectronics Corporation 1st Unsecured Straight Corporate Bond
Issuance in 2013

March 15, 2013

NTD 1 million

Taipei Exchange

NTD 1 million

NTD 10,000 million; 5-year bond for NTD 7,500 million and 7-year bond for NTD 2,500 
million

Fixed rate; 1.35% p.a. and 1.50% p.a. for 5-year and 7-year bonds, respectively

5-year bond: March 15, 2018
7-year bond: March 15, 2020

None

Taiwan Cooperative Bank

None

None

Chen & Lin Attorneys-at-Law

Ernst & Young, Taiwan

The principal of 5-year and 7-year bonds will be repaid respectively in March 2018 and 
March 2020 upon maturity.
Interest will be paid annually for both 5-year and 7-year bonds.

NTD 2,500 million for the 7-year bond (Note)

None

None

Name of credit rating agency, rating date and 
result of rating

Taiwan Ratings Corporation
November 30, 2012
twAA

Other rights of bondholders

Dilution ef fec t or other adverse impac t on 
existing shareholders’ equity, if conversion, 
exchange, or subscription rights are attached

Custodian

None

None

None

Note: NTD 7,500 million for the 5-year bond was repaid on March 15, 2018.

110

United Microelectronics Corporation  |  Annual Report 2018Issuance of Corporate Bonds(Continue)

Name of Bond

Issue date

Denomination

Listing and trading

Issue price

Total amount

Coupon rate

Tenor and maturity date

Guarantor

Trustee

Underwriter

Transferring, paying or conversion agent

Legal counsel

Independent auditor

Repayment

Outstanding amount

Redemption clause

Restrictive clause

United Microelectronics Corporation 1st Unsecured Straight Corporate Bond
Issuance in 2014

June 18, 2014

NTD 1 million

Taipei Exchange

NTD 1 million

NTD 5,000 million; 7-year bond for NTD 2,000 million and 10-year bond for NTD 3,000 
million

Fixed rate; 1.70% p.a. and 1.95% p.a. for 7-year and 10-year bonds, respectively

7-year bond: June 18, 2021
10-year bond: June 18, 2024

None

Taiwan Cooperative Bank

None

None

Chen & Lin Attorneys-at-Law

Ernst & Young, Taiwan

The principal of 7-year and 10-year bonds will be repaid respectively in June 2021 and 
June 2024 upon maturity.
Interest will be paid annually for both 7-year and 10-year bonds.

NTD 5,000 million

None

None

Name of credit rating agency, rating date and 
result of rating

Not applicable

Other rights of bondholders

Dilution ef fec t or other adverse impac t on 
existing shareholders’ equity, if conversion, 
exchange, or subscription rights are attached

Custodian

None

None

None

111

Capital OverviewIssuance of Corporate Bonds(Continue)

Name of Bond

Issue date

Denomination

Listing and trading

Issue price

Total amount

Coupon rate

Tenor and maturity date

Guarantor

Trustee

Underwriter

United Microelectronics Corporation 1st Unsecured Straight Corporate Bond
Issuance in 2017

March 24, 2017

NTD 1 million

Taipei Exchange

NTD 1 million

NTD 8,300 million; 5-year bond for NTD 6,200 million and 7-year bond for NTD 2,100 
million

Fixed rate; 1.15% p.a. and 1.43% p.a. for 5-year and 7-year bonds, respectively

5-year bond: March 24, 2022
7-year bond: March 24, 2024

None

CTBC Bank Co., Ltd.

MasterLink Securities Corp. as the lead underwriter

Transferring, paying or conversion agent 

None

Legal counsel

Independent auditor

Repayment

Outstanding amount

Redemption clause

Restrictive clause

Chen & Lin Attorneys-at-Law

Ernst & Young, Taiwan

The principal of 5-year and 7-year bonds will be repaid respectively in March 2022 and 
March 2024 upon maturity.
Interest will be paid annually for both 5-year and 7-year bonds.

NTD 8,300 million

None

None

Name of credit rating agency, rating date and 
result of rating

Not applicable

Other rights of bondholders

Dilution ef fec t or other adverse impac t on 
existing shareholders’ equity, if conversion, 
exchange, or subscription rights are attached

Custodian

None

None

None

112

United Microelectronics Corporation  |  Annual Report 2018Issuance of Corporate Bonds(Continue)

Name of Bond

Issue date

Denomination

Listing and trading

Issue price

Total amount

Coupon rate

Tenor and maturity date

Guarantor

Trustee

Underwriter

United Microelectronics Corporation 2nd Unsecured Straight Corporate Bond
Issuance in 2017

October 3, 2017

NTD 1 million

Taipei Exchange

NTD 1 million

NTD 5,400 million; 5-year bond for NTD 2,000 million and 7-year bond for NTD 3,400 
million

Fixed rate; 0.94% p.a. and 1.13% p.a. for 5-year and 7-year bonds, respectively

5-year bond: October 3, 2022
7-year bond: October 3, 2024

None

CTBC Bank Co., Ltd

MasterLink Securities Corp. as a lead underwriter

Transferring, paying or conversion agent

None

Legal counsel

Independent auditor

Repayment

Outstanding amount

Redemption clause

Restrictive clause

Chen & Lin Attorneys-at-Law

Ernst & Young, Taiwan

The principal of 5-year and 7-year bonds will be repaid respectively in October 2022 
and October 2024 upon maturity.
Interest will be paid annually for both 5-year and 7-year bonds.

NTD 5,400 million

None

None

Name of credit rating agency, rating date and 
result of rating

Not applicable

Other rights of bondholders

Dilution ef fec t or other adverse impac t on 
existing shareholders’ equity, if conversion, 
exchange, or subscription rights are attached

Custodian

None

None

None

113

Capital OverviewIssuance of Corporate Bonds(Continue)

Type

Issue Date

Face Amount

Listing Exchange

Issue Amount

Issue Size

Coupon Rate

Maturity

Guarantor

Trustee

Underwriter

Legal Counsel

Auditor

Redemption

Currency Linked Zero Coupon Convertible Bonds due 2020

May 18, 2015

USD 200,000

Singapore Exchange Securities Trading Limited

USD 200,000

USD 600,000,000

0%

5 years; May 18, 2020

-

Citicorp International Limited
Credit Suisse(Hong Kong)Limited, Morgan Stanley Service Pty Limited,  
The Hong Kong and Shanghai Banking Corporation Limited

Chen & Lin Attorneys-at-law

Ernst & Young

Unless previously redeemed, converted, or repurchased and canceled, the Company 
will redeem the Bonds at the principal amount of the Bonds with an interest calculated 
(calculated semiannually) at the rate of -0.25% per annum on the maturity date (the 
Redemption Amount). The Redemption amount will be converted into NTD based 
on the Fixed Exchange Rate, and this fixed NTD amount will be converted using the 
Prevailing Rate for payment in USD.

Principal Payable

USD 600,000,000 as of March 6, 2019

Redemption or early redemption clause

114

(a)  The Company will, at the option of bondholder, redeem such holder’s Bonds in  
whole or in part at the principal amount of the Bonds with an interest calculated  
(calculated semiannually) at the rate of -0.25% per annum on the date which is  
3 years from the date of issue. The actual rates per annum are decided according  
to market conditions by the Company and joint underwriters overseas together  
on the pricing date.

(b)  Bondholders have the right to require the Company to redeem the bonds, in whole  
but not in part, at the principal amount of the Bonds with an interest calculated  
(calculated  semiannually)  at  the  rate  of  -0.25%  per  annum  (Early  Redemption  
Amount) if the Company’s common shares cease to be listed on the Taiwan Stock  
Exchange.    The  actual  rates  per  annum  are  decided  according  to  market  
conditions  by  the  Company  and  joint  underwriters  overseas  together  on  the  
pricing date.
In the event that a change of control (as defined in the indenture of the bonds)  
occurs  to  the  Company,  the  bondholders  shall  have  the  right  to  require  the  
Company to redeem the bonds, in whole but not in part, at the Early Redemption  
Amount.

(c) 

(d)  The Redemption procedures of the exercise of the put right by the Bondholder  
and  repurchase  by  the  Company  are  all  set  in  the  Indenture.  The  Redemption  
Amount and The Early Redemption Amount will be paid in cash by the Company  
on the payment date set in the Indenture.

(e)  The  Company  may  redeem  the  bonds,  in  whole  or  in  part,  after  3  years  of  the  
issuance and prior to the maturity date, at the Early Redemption Amount if the  
closing price of the Company’s common shares on the Taiwan Stock Exchange, for  
a period of 20 out of 30 consecutive trading days, is at least 125% of the conversion  
price.

(f)  The  Company  may  redeem  the  bonds,  in  whole,  but  not  in  part,  at  the  Early  
Redemption Amount if at least 90% in principal amount of the bonds has already  
been redeemed, repurchased and cancelled or converted.

(g)  The Company may redeem all, but not part, of the bonds, at the Early Redemption  
Amount at any time, in the event of certain changes in the ROC’s tax rules which  
would require the Company to gross up for payments of principal, or to gross up  
for  payments  of  interest  or  premium.  Bondholders  may  elect  not  to  have  their  
bonds redeemed by the Company in such event, in which case the bondholders  
shall not be entitled to receive payments of such additional amounts.

The Redemption Amount/The Early Redemption Amount will be converted into NTD 
based on the Fixed Exchange Rate, and this fixed NTD amount will be converted using 
the Prevailing Rate for payment in USD.

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of Corporate Bonds(Continue)

Type

Covenant

Name of rat ing company, d ate and result of 
rating

Other obligation

Balance of amount converted 
to (exchangeable or warrant) 
shares, ADSs, or other types 
of securities as of the Annual 
Report Printing Date

Policy of issuing or converting 
(exchangeable or warrant)

Effect on the current shareholders due to dilution

Currency Linked Zero Coupon Convertible Bonds due 2020

-

-

-

The  bondholders  may  from  June  28,  2015  to  May  8,  2020  covert  the  bonds  into 
the Company’s common shares as a substitute for the issuer’s cash redemption. 
In  addition,  the  bondholders  will  not  be  able  to  effect  conversion  into  common 
shares during any closed period.

The underlying conversion for ECB is newly issued shares. If the ECB is fully 
converted, the dilution ratio to original shareholders is 8.63%. The impact to the 
dilution is minimal.

Name of custodian

Citibank, N.A., London Branch

Exchangeable Bonds Information
None

Euro Convertible Bonds Information

Type

Item

Currency Linked Zero Coupon Convertible Bonds due 2020

Year

2019(Note)

2018

2017

2016

2015

2015.05.18
(Issue Date)

Convertible Price

NTD 14.8157

NTD 14.8157

NTD 15.4320

NTD 15.9895

NTD 16.7408

NTD 17.50

Market 
Price

High

Low

 USD 97.515

USD 124.583

USD 114.894

USD 95.625

USD 100.864

 USD 95.185

USD 95.662

USD 92.255

USD 88.052

USD 87.579

Average

 USD 96.255

USD 110.480

USD 104.396

USD 92.453

USD 93.145

-

-

-

Issue Date

2015.05.18

Reference Shares

Common shares

Note: The date presented for 2019 was gathered until March 6, 2019

Shelf Registration for Issuing Bonds

None

Corporate Bonds with Warrants

None

Preferred Shares

None

115

Capital OverviewAmerican Depositary Receipts

ISSUE DATE

2008.09.19

2007.10.09

2006.11.06

2006.09.01

2005.09.01

2005.01.20

2004.11.16

Listing Exchange

New York Stock 
Exchange

New York Stock 
Exchange

New York Stock 
Exchange

New York Stock 
Exchange

New York Stock 
Exchange

New York Stock 
Exchange

New York Stock 
Exchange

Issue Amount

Stock dividend Capital 

Reduction

USD 108.2 
million

Stock dividend Stock dividend USD 84.2 million USD 76.3 million

Listing Price/Unit

-

-

USD 3.05

-

-

USD 3.33

USD 3.47

Issue Units

9,885,719

-95,425,183

35,456,000

2,831,465

25,833,137

25,290,000

22,000,000

Underlying 
representing shares

UMC common 
shares

UMC common 
shares

UMC common 
shares

UMC common 
shares

UMC common 
shares

UMC common 
shares

UMC common 
shares

Number of equivalent 
local shares per ADS

Rights and obligations 
of ADS holders

5 shares

5 shares

5 shares

5 shares

5 shares

5 shares

5 shares

Same as the 
common 
shareholder

Same as the 
common 
shareholder

Same as the 
common 
shareholder

Same as the 
common 
shareholder

Same as the 
common 
shareholder

Same as the 
common 
shareholder

Same as the 
common 
shareholder

Trustee

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Depositary Bank

Citibank, N.A. Citibank, N.A. Citibank, N.A.

Citibank, N.A. Citibank, N.A. Citibank, N.A.

Citibank, N.A.

Custodian Bank

Citibank, N.A. 
Taipei Branch

Citibank, N.A. 
Taipei Branch

Citibank, N.A. 
Taipei Branch

Citibank, N.A. 
Taipei Branch

Citibank, N.A. 
Taipei Branch

Citibank, N.A. 
Taipei Branch

Citibank, N.A. 
Taipei Branch

Outstanding balance 
(Units)

The total outstanding balance is 143,204,659 units.

Issuing expenses and 
maintenance fees

Except for IPO and dividends, the issuing expense will be borne by the selling shareholders. The maintenance fees 
will be borne by the Company.

-

-

-

-

-

-

-

Important terms 
and conditions of 
depositary agreement 
and custodian 
agreement

Note 1: The data shown above was gathered until March 6, 2019.

Note 2: On October 21, 2009, the Depositary bank was changed to JPMorgan Chase Bank, N.A., and the custodian bank was changed to JPMorgan Chase Bank,  

N.A. Taipei Branch.

American Depositary Receipt Trading Data

Closing Price Per Share (USD)

High

 1.93

Low

 1.69

2019

Average

 1.83

High

3.08

Low

 1.64

2018

Average

2.47

Note: The data represented for 2019 was gathered until March 6, 2019

116

United Microelectronics Corporation  |  Annual Report 2018 
American Depositary Receipts(Continue)

2004.08.19

2004.01.02

2003.12.23

2003.08.15

2002.09.09

2002.03.19

2001.08.17

2000.09.19

New York Stock 
Exchange

New York Stock 
Exchange

New York Stock 
Exchange

New York Stock 
Exchange

New York Stock 
Exchange

New York Stock 
Exchange

New York Stock 
Exchange

New York Stock 
Exchange

Stock dividend USD 13.8 million USD 24.4 million Stock dividend Stock dividend USD 439.7 million Stock dividend USD 1,291.5 million

-

USD 4.92

USD 4.75

-

-

USD 9.25

-

USD 14.35

15,088,684

2,804,000

5,146,000

6,965,107

22,655,667

47,537,780

13,500,000

90,000,000

UMC common 
shares

UMC common 
shares

UMC common 
shares

UMC common 
shares

UMC common 
shares

UMC common 
shares

UMC common 
shares

UMC common 
shares

5 shares

5 shares

5 shares

5 shares

5 shares

5 shares

5 shares

5 shares

Same as the 
common 
shareholder

Same as the 
common 
shareholder

Same as the 
common 
shareholder

Same as the 
common 
shareholder

Same as the 
common 
shareholder

Same as the 
common 
shareholder

Same as the 
common 
shareholder

Same as the 
common 
shareholder

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Citibank, N.A.

Citibank, N.A.

Citibank, N.A.

Citibank, N.A.

Citibank, N.A.

Citibank, N.A.

Citibank, N.A.

Citibank, N.A.

Citibank, N.A. 
Taipei Branch

Citibank, N.A. 
Taipei Branch

Citibank, N.A. 
Taipei Branch

Citibank, N.A. 
Taipei Branch

Citibank, N.A. 
Taipei Branch

Citibank, N.A. 
Taipei Branch

Citibank, N.A. 
Taipei Branch

Citibank, N.A. 
Taipei Branch

-

-

-

-

-

-

-

-

117

Capital OverviewEmployee Stock Option Handling Status
The Processing Situation and Impact on Shareholders' Right from Employee Stock Option that 
have not Matured Yet
None.

Issuance of New Restricted Employee Shares

The Company did not issue Restricted Stock Awards during 2018 and as of the Annual Report Printing Date.

Status of New Shares Issuance in Connection with Mergers and 
Acquisitions

The Company has not completed any merger or acquisition of another corporation to issue new shares according to the 

Company Act or Enterprises Mergers and Acquisition Act, nor has the Board of Directors approved any merger or acquisition of 

another corporation to issue new shares according to the Company Act or Enterprises Mergers and Acquisition Act during 2018 

and as of the Annual Report Printing Date.

Financing Plans and Execution Status

Not Applicable.

118

United Microelectronics Corporation  |  Annual Report 2018Operations Overview

120  Business Activities
127  Overview of Market, Production, and Sales  
132   Employees 
Environmental Expenditure Information  
133 
133 
Labor Relations 
137  Major Contracts

119

Operations OverviewBusiness Activities

Business Scope

UMC  provides  wafer  fabrication  services  through  state-of-

sensor  and  mixed-signal/RF  CMOS.  UMC  strives  to  provide 

the-art  manufacturing  processes  and  produces  chips  for 

comprehensive services, delivering customized platforms to 

various  applications  within  the  IC  industry.  The  company 

meet the system-on-chip (SoC) needs of different customers.

provides logic and mixed-signal process technologies from 0.5 

micron  to  14nm.  UMC  continuously  introduces  competitive 

In 2018, revenue contribution from UMC’s wafer fabrication 

process technologies and complete solutions to enable chips 

accounted  for  more  than  95%  of  the  company’s  total  sales 

to be designed according to specific customer requirements. 

revenue,  with  the  remainder  generated  from  new  R&D 

Customers  can  select  different  processes  according  to  their 

ventures  and  manufacturing  of  solar  energy  and  next 

product  application,  such  as  embedded  memory,  high 

generation LED.

voltage,  integrated  bipolar/CMOS/depleted  CMOS,  MEMS 

Industry Overview

Current  Status  and  Development  of  the  Semiconductor 

no  longer  actively  invest  in  the  development  of  advanced 

Industry

processes  or  increase  of  capacity  due  to  cost  vs.  benefit 

The  development  of  electronic  products  has  been 

considerations. Instead, they have increased the proportion 

trending  towards  enhanced  functionality,  light  weight, 

of  wafer  manufacturing  to  foundry  outsourcing.  Some 

energy  saving  and  carbon  reduction.  The  incorporation 

makers  of  system  products  have  also  designed  ICs  (such  as 

of  artificial  intelligence  (AI)  concepts,  deep  learning  and 

cellphone  chips)  by  themselves  and  outsourced  to  wafer 

voice control in recent years has also affected the direction 

foundry.  These  industrial  trends  all  have  a  positive  impact 

of  chip  design.  Therefore,  the  complexity  of  chip  designs 

on  the  sustainable  development  of  the  professional  wafer 

has  significantly  increased  due  to  the  considerations  of 

foundry industry.

functional integration, performance enhancement, and low 

The  semiconductor  industry  had  a  strong  year  in  2018, 

power consumption. In addition, in response to the constant 

hitting  record  highs  in  terms  of  revenues,  equipment,  and 

miniaturization  of  semiconductor  fabrication  processes 

silicon wafer shipments, mainly driven by the strong growth 

and  costs  considerations,  development  is  heading  towards 

of  memory  products.  The  application  of  IoT,  automotive 

larger  diameter  wafers.  This  trend  has  caused  the  entry 

electronics, AR/VR and artificial intelligence have created a 

barrier  into  semiconductor  fabrication  process  technology 

major forward catalyst for the semiconductor market, which 

to continuously increase, and the investment has also been 

is going to be the primary driving force for the future growth 

growing exponentially.

of the semiconductor industry.

With  the  constantly  rising  entry  barriers  of  various 

Summarizing  the  views  from  all  major  forecast  agencies, 

semiconductor sectors from design, fabrication, packaging, 

the  continuous  and  steady  growth  of  domestic  and 

and  test, 

it 

is  extremely  difficult  for  semiconductor 

international economies can be expected in 2019. Yet there 

companies  to  have  total  control  over  every  single  sector. 

are  still  some  uncertainties  which  could  affect  future 

Under  the  considerations  of  professional  division  of  labor 

economic  development.  The  most  crucial  keys  are  how  the 

and  production  efficiency,  the  semiconductor  industry’s 

industry  will  navigate  Donald  Trump’s  economic  decisions 

move towards a vertical division of labor system is becoming 

and  the  Sino-US  Trade  War,  the  slowdown  of  economic 

more and more obvious. The development cost of advanced 

growth  in  China,  conflicts  in  regional  politics,  decisions 

process  technologies  and  the  capital  expenditure  of  new 

by  the  US  Fed,  degrees  of  inflation  in  various  countries, 

tools  and  equipment  have  risen  significantly,  such  that  the 

and  international  energy  price  trends.  Therefore,  all  major 

industrial  structure  of  professional  division  of  labor  has 

global wafer foundries should be prudent with their capital 

been formed. This phenomenon and the effect on the overall 

expenditures when expanding production capacity. Within 

environment  has  resulted  in  many  existing  Integrated 

this  context,  UMC  is  cautiously  expanding  advanced  28nm 

Device  Manufacturers  (IDMs)  to  announce  that  they  will 

process  capacity  while  also  increasing  its  12-inch  wafer 

120

United Microelectronics Corporation  |  Annual Report 2018foundry  footprint  with  United  Semiconductor  (Xiamen) 

The Development Trend and Competition of Electronic End 

Co., Ltd, a joint venture fab with Xiamen Municipal People's 

Products

Government  and  Fujian  Electronic  &  Information  Group 

Conventional  electronic  products  can  be  divided  into  four 

that is intended to reduce risk and enhance services for the 

categories:  Computer,  Communication,  Consumer,  and 

local  China  market.  UMC  has  also  dedicated  R&D  resources 

Automotive.  Electronic  products  have  been  developed 

to advanced manufacturing and special process technology 

towards  compact  size  and 

light  weight, 

low  power 

to  continuously  differentiate  itself,  thus  enhancing  the 

consumption,  interconnection,  artificial  intelligence,  and 

company’s competitiveness through better product mix that 

deep  learning.  For  example,  notebooks    and  tablets  can 

will help strengthen profitability

operate longer, and cellphones can be  wirelessly  connected 

to notebooks and tablets. In addition, the greatly enhanced 

Correlation Among Upstream, Midstream, and Downstream 

bandwidth  of  broadband  networks  has  contributed  to  the 

of Industry

development  of  networked  and  smart  TVs.  By  linking  all 

The  semiconductor  industrial  chain  can  be  divided  into  IC 

things via the access, delivery, and processing of information 

design,  mask,  wafer  fabrication,  testing  and  packaging.  IC 

to  form  a  large  network,  many  breakthrough  applications 

design  is  mainly  the  design  according  to  the  specifications 

and enormous business opportunities in the fields of smart 

and applications required by end products. Different IC chips 

home,  health  care  system,  and  urban  facilities  become 

and products will have emphasis on different characteristics, 

available.  Looking  towards  the  future,  the  key  technologies 

thus  leading  to  different  process  requirements.  Therefore, 

of smartphones, wearable electronics, AR/VR, autonomous/

professional  wafer  foundries  must  provide  the  most 

electrical  vehicle,  AI/deep  learning,  voice  control  products, 

current  technical  design  support  services  and  adequate 

and  IoT  will  be  constantly  adopted  and  commercialized. 

silicon  intellectual  property  (IP)  as  early  as  possible,  and 

As  such,  professional  wafer  fabrication  services  should 

continuously optimize process technology to help IC design 

complete  corresponding  process  development  and  silicon 

customers in their chip development. In the end, testing and 

intellectual properties as soon as possible in order to meet 

packaging  companies  will  perform  IC  packaging  and  pre-

the needs of different customers of products resulting from 

shipment testing to ensure customer chips are meeting their 

the Internet of Things (IoT) generation.

respective design specifications

121

Operations OverviewOverview of Technology and R&D

R&D Expenses for the Past 5 Years

In Thousand NTD

2018

2017

2016

2015

2014

Net operating revenues

151,252,571

149,284,706

147,870,124

144,830,421

140,012,076

Research and development expenses

13,025,139

13,669,589

13,532,356

12,174,824

13,663,874

Research and development expenses as 
a percentage of net operating revenues

8.61%

9.16%

9.15%

8.41%

9.76%

Note 1: The R&D expenses from 2014 to 2018 are determined according to the international financial report criteria approved by the Financial Supervisory  

  Commission. 

Note 2: The R&D expense for 2019 was calculated up until the publication date of March 6, 2019, which amounted to NTD 1,927,006 thousand.

Technologies or Products Successfully Developed within the Past 5 Years

Year

2014

R&D Achievements

‧	Successful  development  of  28nm  HK/MG  process  technology  and  gradual  launch  of  mass  production  after  customer  
  product qualification.
‧	Achieved  a  mass  production  milestone  of  15  million  units  for  smartphone  panel  driver  chips  based  on  55 nm  
  embedded high voltage process technology.
‧MEMS technology was adopted by New JRC, which expanded its MEMS microphone products to mass production.

2015

‧ Successful development of 14nm FinFET device with performance reaching leading industry levels.
‧ Successful  development  of  28nm  HPC+  (High  Performance  Compact  Plus)  process  technology,  which  can  provide  

lower leakage current and power consumption. It has been incorporated into customer’s pilot production.

‧ Successful  development  of  55nm  embedded  flash  memory  technology,  which  has  been  qualified  by  product  
  verification and has entered mass production.
‧ Successful  development  of  TSV  (Through-Silicon  Via)  for  mass  production,  which  can  drive  the  outstanding  
  performance of customer GPU products.

‧ Successful  development  of  28HPCU  process  technology,  which  was  provided  to  an  IP  provider  to  introduce  a  12.5  
  Gbps SerDes PHY IP programmable design solution for high speed I/O.
‧ Successful  development  of  40nm  embedded  charge  trap  (eCT)  flash  memory,  which  was  provided  to  customers  for  
  mass production of MCU products.
‧	Successful  development  of  55nm  ultra-low  power  (55uLP)  process,  which  was  provided  to  an 

IP  provider  to  
life-time  requirements  of  

introduce  PowerSlashTM  fundamental 

IP  solutions  to  meet  the 

long-term  battery 

  wireless IoT products. 

‧ Successful  development  of  a  customized  14nm  FinFET  process  technology,  which  entered  mass  production  for  
levels,  with  products  delivered  to  the  

ICs.  UMC’s  14nm  wafer  yields  reached 

industry  competitive 

customer 
company’s primary customer.

‧ Successful  pilot  production  of  28HPCU+  process  technology  for  customers  to  meet  the  demand  for  faster  chips  
  with better power saving features.
‧ Introduced  a  40nm  non-volatile  memory  technology  platform,  which  incorporated  Silicon  Storage  Technology’s  
low  power  consumption,  high  reliability,  
  outstanding  data  retention,  and  high  durability,  which  can  be  used  for  automobile,  industry,  consumer  products,  
  and IoT applications.

(SST’s)  embedded  SuperFlash®  non-volatile  memory  that  features 

‧	Successful  development  of  22nm  ultra-low  power 

(uLL)  HK/MG  process  to  provide  
customers  chips  with  faster  speed,  better  cost  efficiency  and  improved  power  saving  to  meet  future  demands  
from IoT, automotive electronics, industrial electronics, and various wearable products applications.

(uLP)/ultra-low 

leakage 

‧ 14nm  FinFET 

customized  process  has  entered  mass  production. 
(14FFC),  with  yield 

In  addition,  UMC  developed  a  new 
128Mb  SRAM  on  this  process  having  reached 
levels.  14FFC  also  passed  process  and  product  reliability  verification  to  officially  enter  

for  the 

14nm  FinFET  platform  process 
industry  competitive 
the pilot production stage for customer chips.

‧	UMC  partnered  with  the  leader  in  next  generation  STT-MRAM,  USA-based  Avalanche,  to  jointly  develop  and  
  produce eMRAM.

2016

2017

2018

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United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
Overview of Technology and R&D(Continue)

UMC’s  R&D  team  has  always  been  dedicated  to  promoting 

14FFC is expected to be ready for customer mass production 

the development of advanced process technology. With the 

in 2019.

adherence to the belief of “Customer’s Demand Comes First,” 

the  company  has  been  providing  pure-play  wafer  foundry 

Embedded MRAM

solutions to meet market trends and customer needs, which 

For  future  market  demands  related  to  advanced 

IoT, 

include  world-class  technology,  customer  support  services, 

automotive  electronics,  wearable  products,  and  cloud 

and state-of-the-art manufacturing. With the expansion of 

applications,  conventional  embedded  non-volatile  flash 

UMC’s  Tainan  Science  Park  site,  the  company  continues  to 

memory based on eFlash is gradually showing an imbalance 

recruit and train a large number of R&D talents. In 2018, UMC 

between cost and performance. In light of this, UMC invested 

continued to significantly invest in R&D resources with total 

in  the  R&D  of  eMRAM  in  2018.  For  this  R&D  plan,  UMC  has 

annual  R&D  expense  reaching  NTD  13.03  billion,  which  has 

integrated  all  existing  machines  in  the  company  while 

led to fruitful R&D achievements in advanced and specialty 

drawing upon its mass production experience for previous 

technologies.

generations of eFlash memory (55nm/40nm). It is expected 

that this technology can be incorporated into 28/22nm to be 

22nm Ultra-low Power/Ultra-low Leakage Process Technology

used by customers in 2021. 

UMC has developed 22nm process technology and its 28nm 

high  performance  compact  low  power  process  technology 
platform  (HPCU+).  With  the  same  number  of  mask  layers 
and  compatible  design  criteria  as  28nm,  the  performance 

Display Driver IC Process Technology

The  Display  Driver  IC  market  has  demonstrated  potential 

for rapid growth and possibilities in numerous applications, 

of  22nm  process  technology  has  been  enhanced  by  10%, 

including  smartphone,  portable  phone/PDA,  computer 

power consumption has been reduced by 20%, and area has 

screen,  touch  screen,  Tablet  PC,  e-book,  TV,  digital  camera, 

been  reduced  by  10%.  Therefore,  the  cost  competitiveness 

on-board screen, and wearable display. UMC’s High Voltage 

of  22nm  technology  has  been  greatly  improved  to  provide 

Technology  has  led  the  development  of  various  voltages  to 

customers  with  more  process  options.  22nm  ultra-low 

meet the specifications requirements of various application 

power/ultra-low  leakage  technologies  are  suitable  for  IoT,  

markets.  UMC  was  the  first  in  the  foundry  industry  to 

automotive electronics, industrial applications, and various 

introduce  a  40nm  High  Voltage  Process,  and  the  mass 

wearable  products  that  utilize  analog,  mixed  signal,  RF, 

production has been achieved for high-end LCD Display and 

and  other  relevant  technologies.  The  introduction  of  22nm 

high-end OLED Display markets. Meanwhile, the 28nm High 

by  UMC  has  maximized  the  value  of  the  company’s  28nm 

Voltage Platform has entered pilot production. In addition, 

process, with IP verification from 28nm directly converting 

UMC has begun developing a 22nm High Voltage Platform to 

to 22nm being relatively easy due to the use of compatible 

provide smaller SRAM with higher capacity in order to meet 

design specifications. UMC’s 22nm process is expected to be 

the demand of the 2K/4K high-end display market.

completed in the middle of 2019 and introduced to customers 

for pilot production.

14nm Process Technology

Power Management Process Technology

As  for  the  demands  for  various  power  management 

applications  (PMIC),  UMC’s  super  high  voltage  (5V  and  30V 

UMC  reached  the  mass  production  milestone  for  its 

in  coordination  with  300V,  500V  or  700V)  processes  have 

customized  14nm  FinFET  process  in  early  2017,  and  the 

entered  the  mass  production  stage.  This  technology  is 

competitiveness  of  device  performance  and  yield  has 

suitable for special applications such as power charger, LED 

reached  leading  industry  standards.  In  2018,  UMC’s  other 

bulb,  power  amplifier,  AC/DC  converter,  and  motor  driver 

14nm project (14FFC FinFET process platform) reached mass 

and  can  meet  industry  demand  for  higher  voltage  and 

production  quality  levels  for  product  yield  and  has  passed 

reduce  the  energy  consumption  during  voltage  conversion 

process and product reliability verification. Currently several 

in order to save energy. As for customers with demands for 

customers  have  already  designed  products  using  UMC’s 

highly  integrated  power  management,  UMC  can  provide  a 

14FFC platform and have entered the pilot production stage, 

complete  silicon  IP  platform  compatible  with  the  standard 

with  cooperation  with  other  customers  ongoing.  UMC’s 

logic  process,  and  various  0.5,  0.35,  0.25,  0.18,  and  0.11 

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Operations OverviewOverview of Technology and R&D(Continue)

micron  process  technologies  that  integrate  world-class, 

performance  and  higher  density  memory.  UMC  has  begun 

third  generation  low  conduction  resistance/high  sustained 

developing a 28nm SST embedded SuperFlash® non-volatile 

voltage  (5V~200V)  devices  that  can  be  used  for  cell  phone, 

memory  platform  and  researching  new  materials  for 

Tablet  PC,  appliance,  vehicle  applications,  etc.  UMC  has 

flash  memory  such  as  ReRAM,  in  order  to  meet  customer 

also  begun  developing  a  BCD+NVM  technology  platform, 

demands for higher specifications. Embedded flash memory 

and  adopted  a  12-inch  55nm  copper  process  for  PMIC  as  a 

is embedded on UMC’s logic technology platform, such that 

complete SoC solution for energy-saving demands.

the silicon IP on all logic technology platforms can support 

the SoC design of our customers to further enhance industry 

CMOS Image Sensor (CIS), MEMS, and RF SOI Technologies

competitiveness.

For CMOS image sensor technology development, UMC’s 65nm 

process has been verified to enter the mass production stage. 

Mixed Signal/RF Foundry Design Kit

The new processes, such as back-illuminated sensor (BIS) and 

Foundry  design  kits  can  provide  IC  design  houses  with  an 

55nm CIS process technologies, have entered the verification 

automated  design  environment  to  eliminate  unnecessary 

stage. This technology is expected to provide higher sensing 

human  manipulation  to  ensure  the  success  of  their  chip 

resolution  to  meet  product  upgrade  requirements.  With 

design.  UMC’s  complete  mixed  signal/RF  design  flows  for 

the  rising  popularity  of  MEMS  sensor  applications,  the 

different  processes  cover  both  the  frontend  and  backend 

demand  for  CMOS-MEMS  pure-play  foundry  service  has 

of  RF  IC  Design,  which  can  provide  channels  to  obtain  the 

also  increased.  UMC’s  MEMS  microphone  process  platform 

design and simulation of circuit level, circuit layout, layout 

can help many customers shorten their design process flow. 

verification,  and  precise  RF  device  mode.  In  the  frontend 

UMC's  total  shipments  for  MEMS  microphone  products  in 

flow,  UMC’s  fundamental  devices  of  its  mixed  signal/RF 

2018  exceeded  400  million  units.  CMOS-MEMS  gas  sensor 

process are executed in using a general design environment 

has  entered  mass  production,  and  optical  communication 

and  simulation  tools. 

In  the  backend  flow,  it  covers 

integrated chip (ICR/ICT) is in the pilot production stage.

parameterized cell (P Cell), including image-oriented layout, 

UMC has developed RF SOI process technology, and its unique 

in order to provide an automated and complete design flow. 

substrate  characteristics  can  prevent  harmonics  distortion 

Meanwhile, a callback function is provided during the design 

of high frequency signals and reduce power loss. Currently, 

flow  to  reduce  the  data  input.  Design  houses  can  enhance 

0.13um  and  0.11um  RF  SOI  process  technologies  have  both 

the productivity and reduce the risk of error via this flow.

entered mass production, and the produced chips have been 

UMC has worked with EDA vendors to provide its customers 

widely used by smartphone makers. Next generation 90nm 

with  a  parameterized  spiral  inductor  design  kit  based  on 

and 65nm RF SOI are in the R&D stage.

full-wave simulation – VIL (Virtual Inductor Library). VIL can 

Non-Volatile Flash Memory

allow  RF  CMOS  design  houses  to  create  and  simulate  the 

customized inductors compatible with UMC’s process. VIL is 

UMC has always been dedicated to providing customers with 

established based on UMC’s EMDM (Electromagnetic Design 

complete SoC solutions, among which the non-volatile flash 

Methodology)  such  that  engineers  can  easily  and  precisely 

memory device is the essential device for most applications. 

create any RF structure. EMDM allows design houses to have 

Auto  chips,  MCU  applications  and  consumer  products  such 

more flexibility to create new geometric modes via editing 

as  touch  control  applications  all  require  the  support  of 

parameters such as diameter, turn, width, and track pitch.

embedded  flash  technology.  In  addition  to  the  successful 

In addition, UMC’s foundry design kit provides the Optimum 

mass  production  of  0.18um  and  0.11um  technologies,  55nm 

Inductor Finder (OIF). OIF allows design houses to quickly and 

embedded  flash  memory  has  also  successfully  entered  the 

precisely create a large amount of calibrated inductor design 

mass  production  stage.  The  MCU  products  equipped  with 

libraries  with  respect  to  UMC’s  process.  Meanwhile,  OIF 

40nm  embedded  charge  trap  (eCT)  flash  memory  is  also 

also allows users to use software to execute the optimized 

in  mass  production.  The  40nm  technology  platform  with 

inductor  via  several  simple  steps.  For  example,  customers 

SST  (Silicon  Storage  Technology)  embedded  SuperFlash® 

can  define  desired  inductance  coefficients  to  reach  the 

non-volatile  memory  has  also  entered  small  volume  pilot 

balance  between  quality  factor  and  area.  OIF  can  select  a 

production  in  order  to  provide  customers  with  better 

design  that  best  fits  the  specifications  from  the  inductor 

design library within the shortest amount of time.

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United Microelectronics Corporation  |  Annual Report 2018Overview of Technology and R&D(Continue)

Silicon IP Support

successfully  helped  customers  with  quick  market  entry  for 

Along  with  the  design  trends  toward  more  precise  deep 

their  products.  In  addition  to  UMC  made  IPs,  the  company 

sub-micron  generation  processes  and  increasing  design 

has  also  established  partnerships  with  industry-leading  IP 

complexity,  foundry  can  no  longer  only  focus  on  process 

vendors  in  order  to  provide  physical  library,  non-volatile 

yield  improvement,  but  must  also  help  customers  shorten 

memory  IPs,  and  diversified  analog/mixed  signal  IPs  that 

their design flow and reduce design cost. In terms of library 

support  industrial  standard  interfaces  (such  as  USB,  DDR, 

design  kits,  UMC  strengthens  its  design  support  capability 

and  HDMI).  This  year  UMC  has  extended  its  long-term  IP 

by constantly providing optimized library design kits closely 

cooperation  with  all  leading  IP  vendors  to  22nm  and  14nm 

integrated with the company’s process technology in order 

processes in order to provide customers with a competitive 

to  help  designers  accelerate  the  completion  of  their  chip 

design support environment.

design.  From  mature  to  advanced  process  technologies  to 

specialty  processes,  UMC  can  provide  complete  Standard 

Intellectual Property

Cell,  I/O  and  customized  libraries  to  meet  customers’  chip 

design needs. In terms of logic process, UMC’s standard cell 

library for advanced processes can provide devices of various 

operating and threshold voltages (Vt). Along with low power 

library kits, they can meet various customer needs for design 

flexibility  and  high  performance/low  power  applications. 

UMC’s  I/O  library  has  an  extremely  small  area,  and  it  is 

qualified  through  a  stringent  Electrostatic  Discharge 

(ESD)  test  to  help  customers  design  competitive  products 

that  can  pass  the  ESD  test  with  voltage  as  high  as  4kV. 

So  far,  numerous  customers  have  taped-out  successfully 

and  mass  produced  products  using  UMC’s  I/O  library  on 

110,  90,  65,  55,  40,  and  28nm  processes.  UMC  also  provides 

Facing  increasing  technological  competition,  UMC  has 

significantly 

strengthened  patent 

filings 

to  protect 

intellectual  property  in  addition  to  greatly  enhancing 

technological  capabilities  in  critical  fields.  The  number  of 

granted  patents  has  been  growing  steadily.  The  company 

was  granted  a  total  of  423  domestic  and  foreign  patents 

in  2018,  337  of  which  are  US  patents,  56  ROC  patents,  and 

30  China  patents.  The  total  accumulated  number  of  UMC’s 

patents is 12,991, which can provide a thorough and strong IP 

foundation for UMC’s technologies. To keep this competitive 

edge,  UMC  has  greatly  increased  the  quality  and  quantity 

of critical technology patents in order to further strengthen 

customer service and competitiveness while helping them to 

customized embedded flash memory (eFlash) IP on various 

create profits.

process  generations  according  to  customer  needs  and  has 

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Operations OverviewLong-Term and Short-Term Business Plan

UMC  is  committed  to  delivering  comprehensive  wafer 

prov iding  c ustomized  advanced  process  technology 

fabrication solutions to its customers based on cooperation 

plat for ms  to  meet  c ustomers’  needs.  UMC’s  capital 

with partners in the entire supply chain, including suppliers 

expenditure for 2019 is expected to be approximately USD 

of  equipment,  automated  electronic  design  tools,  wafer 

1  billion.  Facing  market  requirements  for  continuously 

design  service,  silicon  IP,  and  packaging  and  testing.  The 

advancing semiconductor technology, in addition to UMC’s 

company  provides  customers  with  verified  reference 

own technology R&D, the company will work with strategic 

flows, broad silicon IP combinations, free design cell library 

partners  and  supply  chain  vendors  to  jointly  develop 3D 

databases, and diversified options for packaging and testing. 

chip  integration  technologies.  UMC  will  also  continue 

With advanced process technologies and world-class 12-inch 

raising environmental protection awareness and care for 

wafer  fabrication  technology,  UMC  can  assure  accelerated 

the environment. In addition to establishing a low carbon 

time-to-market for its customers’ SoC designs.

supply chain, UMC is dedicated to the support of various 

Short-Term Objectives

UMC’s short-term objectives are to expand the production 

capacity  of  8-inch  and 12-inch  special  technologies  and 

advanced processes, enhance capacity utilization rate, and 

strengthen profitability. Currently UMC owns three 12-inch 

fabs. In addition to the mass production of 14nm products, 

UMC’s  r ich  technology  plat for ms  at  var ious  process 

nodes  and  diversified  specialty  technologies  can  meet 

all  requirements  of  primary  market  applications.  At  the 

same time, we continue to conduct structural productivity 

enhancements and manufacturing capacity optimization of 

8-inch and 12-inch fabs to embrace new opportunities and 

improve revenue.

Medium-to-Long-Term Objectives

Process technology R&D has always been a primary focus 

of UMC. The R&D of advanced processes and equipment 

procurement will be more efficiently and actively managed, 

and all important R&D work will be implemented according 

to plan. UMC will work to reduce expenditures and enhance 

operational  efficiency  to  effectively  control  costs,  while 

environmental protection activities and the promotion of 

environmental protection education. 

Outstanding UMC Achievements in 2018

•	 UMC Singapore Branch (Fab 12i) was granted the National  

  Water Resources Achievement Award.

•	 UMC was granted the Electronics Technology Group Role  

  Model Award of the 2018 Global Views Monthly Corporate  

  Social Responsibility Award.

•	 UMC  was  recognized  as  Top  Level  by  “Corporate  

  Governance Evaluation” for the fourth consecutive year. 

•	 UMC  signed  a  long-term  wafer  foundry  cooperation  

  agreement with US company Allegro.

•	 UMC  worked  with  US  company  Avalanche  on  technical  

  development of eMRAM and relevant 28nm products.

•	 UMC was included as a DJSI constituent stock for the 11th  

consecutive year.

•	 UMC was granted the Platinum Award of the 2018 Taiwan  

  Corporate Sustainability Awards.

•	 UMC  was  granted  the  ROC  Enterprise  Environmental  

  Protection Award for 16 consecutive years.

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United Microelectronics Corporation  |  Annual Report 2018 
Overview of Market, Production, and Sales
Market Analysis
Primary Product Sales Regions

culture, the acquisition of HJTC, and the operation of a 12- 

UMC’s products have been well recognized by its important 

inch  fab  in  Xiamen  have  all  helped  UMC  gain  a  good  

customers  covering  all  global  regions.  The  sales  regions  of 

  position  in  the  global  market  and  increase  market  

the  company’s  products  are  mainly  Asia  Pacific  and  North 

share. It has also enabled UMC to conduct integration of  

America, which account for 50% and 38% of UMC’s total sales 

  products, orders, and process technologies in response to  

revenues, respectively. Europe and Japan accounted for 12% 

c ustomers’  needs  in  order  to  pursue  the  relat ive  

of  total  sales  revenues.  In  the  future  UMC  will  continue  to 

competitive advantages of China’s market expansion and  

strengthen its cooperation with world-class customers in all 

  operational scale; it is expected that UMC can benefit  

regions and focus on the development of high-end products 

from the rapid growth in this regional market.

for  customers  in  order  to  ensure  consistent  medium  and 

•	 UMC  is  optimistic  about  the  demand  for  high-end  

long-term growth for UMC.

Market Share

chips in the future market of mobile communication and  

computation; thus proper capital expenditure to promote  

the R&D of related processes and the establishment of  

UMC  is  a  world  leading  semiconductor  wafer  foundry.  The 

  advanced production capacity has been conducted. The  

total revenue of the global pure-play wafer foundry market 

company has also actively deployed its 28nm solution to  

in 2018 was approximately USD 63.4 billion. According to the 

continue working with leading customers to pursue more  

estimation  by  market  survey  institution  Gartner,  UMC  has 

f lagship  products.  UMC  is  committed  to  providing  

a  7.7%  share  of  the  pure-play  wafer  foundry,  and  its  main 

sufficient production capacity and to establish an open  

competitors are TSMC, Globalfoundries and SMIC. In 2018, the 

technical  platform  with  our  back-end  packaging  and  

total  operating  income  of  these  four  companies  accounted 

testing partners to provide proper services.

for 86.5% of total pure-play wafer foundry market.

•	 The overall structure of Taiwan’s semiconductor industry  

Future Supply-Demand Status and Market Growth

in terms of both operational efficiency and cost. Taiwan’s  

•	 According to the market survey of Semiconductor Industry  

semiconductor industry competitiveness combined with  

  Association  (SIA),  the  total  sales  revenue  of  the  

  UMC’s technical edge results in a positive multiplier effect  

is complete, exhibiting world-leading competitiveness  

semiconductor  industry  in  2018  was  close  to  USD  477.9  

for the company.

  billion, which has grown by 15.9% from 2017. The growth of  

semiconductor sales revenue in 2019 is expected to slow to  

Favorable Factors for Development Outlook

  mid-to-low single-digit growth.

Considering  the  continuous  growth  of  the  IC  industry, 

•	 Looking  forward  to  the  driving  force  behind  pure-play  

the  ideal  position  of  pure-play  wafer  foundry,  and  the 

foundry market growth, the growth momentum of Fabless  

company’s competitiveness, the favorable factors of long-

  design  companies  typically  outpaces  the  semiconductor  

term company development are summarized as follows:

industry,  and  IDMs  have  adopted  or  raised  the  ratio  of  

•	 Under  the  trend  of  IC  design  and  fabrication  vertical  

  wafer  fabrication  outsourcing  to  save  costs  and  reduce  

  division of labor, there has been prosperous development  

  market risk. Both of these factors have contributed to the  

  of the pure-play wafer foundry market and rapid growth  

  high growth of the pure-play wafer foundry market; thus  

  of global demand for pure-play wafer foundry services.

the performance of the pure-play wafer foundry industry  

•	 IDMs have adopted the strategy of outsourcing to wafer  

is  expected  to  be  better  than  the  overall  semiconductor  

foundry, thus contributing to the growth of the pure-play  

industry.

Niche of Competition

•	 UMC  has  relatively  high  market  share  in  China  and  
  Asia  Pacific  markets,  which  account  for 50%  of  total  
  UMC revenue. According to a report by SIA, in 2018 the  

  growth of semiconductor sales was the greatest in China  

  at 23%, followed by the 14% in America, 7% in Europe, 5.5%  

in Japan, and 3.7% in other Asia Pacific regions. There has  

  been  prosperous  development  of  IC  design  houses  in  

  China in recent years. Geographical proximity,  similar  

  wafer foundry market.

•	 Forming  strategic  alliances  with  major  international  

companies to acquire long-term stable orders.

•	 A  strong  management  team,  advanced  process  R&D,  

  and superior business development capability can result  

in outstanding operational performance.

•	 UMC is one of the most active in the foundry industry in  

  d e vel o p in g   o f  12 -in ch   w af e r   f ab   manuf a c t ur in g  

capabilities, owning a 12-inch fab in the Tainan Science  

  Park, one in Singapore, and another in Xiamen, China. As  

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Operations Overview 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Overview of Market, Production, and Sales(Continue)

for the future investment in 12-inch fabs, the production  

  v ar io u s  f iel d s ,  in clu din g  m e dic al   p ro du c t s   an d  

capacity will be further expanded according to customer  

  automobile gas flow sensors. Currently the customer has  

  needs and market application trends.

successfully sent samples to major mobile phone makers  

•	 UMC	 is	 in	 mass	 production	 of	 14nm advanced process.  

to be tested.

  UMC is one of the very few professional wafer foundries  

•	 UMC	 has	 provided	 through	 silicon	 via	 (TSV)	 2.5D/3D IC  

that  can  prov ide  such  process  technology  to  help  

technology to customers requiring advanced packaging  

customers profit and reduce production cost. In addition,  

technology under the environment of an open supply  

  UMC’s  28nm production technology has been adopted  

chain  cooperative  development.  With  top-notch  TSV  

f o r   m a s s   p r o d u c t i o n     f r o m   m u l t i p l e   I C   d e s i g n  

  and  front-end  wafer  processes  provided  by  foundry  

  houses,  which  will  further  strengthen  the  long-term  

fabs, highly innovative mid-to-rear-end 3D IC stacking,  

competitiveness of UMC.

  and  packaging  and  testing  from  back-end  ser v ice  

•	 The	 FinFET	 3D transistor process technology developed  

  providers, a complementary and complete platform can  

  by UMC can serve as a strengthened option for low power  

  be formed to provide a reliable 2.5D/3D IC solution for the  

consumption technology used in mobile computation  

semiconductor market.

  and  communication  products.  Through  a  technology  

•	 UMC	has	established	the	most	powerful	IoT	specialized	 

l i c e n s i n g   a g r e e m e n t   w i th   I B M ,   UM C   e n g i n e e r s  

  platform  solution  in  the  industry  and  provided  an  

  accomplished good R&D progress with mass production  

  ultra-low-power  (uLP)  process  with  extremely  low  

launched in the second half of 2017.

current leakage design suitable for all kinds of hybrid  

•	 The	 RF	 SOI	 process	 developed	 by	 UMC	 can	 serve	 as	 a	 

  process technologies. IoT chip designers can integrate  

complete solution for wireless communication products.  

  various process schematics to the customized platform  

In  addition  to  the  switches  for  front-end  RF  modules,  

  based on UMC’s lower power consumption technology  

  UMC can also provide advanced processes for switches  

in order to meet the specific requirements to enter the IoT  

for  antenna  tuning  and  power  amplifiers  in  order  to  

  and wearable electronic device markets; pilot production  

  meet customer needs for RF SOI, and to meet customer  

  of UMC’s 22uLP was launched by the end of 2018, and  

  expectations for both production capacity and delivery  

  mass production is scheduled for 2019.

time.

•	 UMC’s  14nm  (FinFET)  process  technology  successfully  

•	 In	 response	 to	 the	 development	 trend	 of	 electronic	 

  entered mass production for customer chips in early 2017.  

  products, UMC has developed SOI technologies, as well as  

  T he  yield  for  shipments  to  primary  customers  has  

specialty  technologies  including  embedded  memory,  

reached  industry  competitive  levels  for  this  highly  

  mixed signal, RF, MEMS sensor, and high voltage to meet  

  advanced process. Being one of the few foundries in the  

c u s tomer  demand  for  pro cess  te chnolo gies  and  

  world to achieve 14nm production capabilities, UMC has  

to  establish  a  leading  position  for  UMC  technology  

fully demonstrated the advantages of 14nm FinFET in  

  development.

terms of efficiency, power, and gate density in order to  

•	 The	 process	 platform	 of	 40nm integrated with Silicon  

  drive  next  generation  ICs  in  the  fields  of  Internet,  AI,  

  Storage Technology (SST) embedded SuperFlash® non- 

  and  various  consumer  products.  UMC’s 14nm  FinFET  

  volatile memory is 20% smaller than the mass production  

is 55% faster with twice the gate density of 28nm, while  

  55nm unit, and the total memory area has been reduced  
  by 20~30%. There have been more than 20 customers  
  and products manufactured at all stages based on UMC’s  

  power consumption is reduced by around 50%.

Unfavorable Factors for Development Outlook

  55nm SST embedded flash memory process, including  

•	 Due	to	the	optimism	of	future	long-term	annual	growth	 

  SIM card, financial transaction, automobile, IoT, MCU,  

  of  semiconductor  demand,  all major  global pure-play  

  and other product applications.

  wafer foundries and China have increased their capital  

•	 The	 MEMS	 gas	 f low	 sensor	 process	 platform	 jointly	 

  expenditures for expansion of production capacity based  

  developed by UMC and its customer is in successful mass  

  on advanced processes, which could lead to an imbalance  

  production and has been provided to end customers in  

  of supply and demand in the future market.

128

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Countermeasures

•	 Continuous	 cost	 saving	 and	 efficiency	 enhancements	 

to effectively reduce costs, and cautiously and effectively  

  ex panding  the  produc t ion  capac it y  of  advanced  

  processes; strengthening  the competitive edge of the  

company  by  increasing  the  ratio  and  product  mix  

towards high-end processes.

•	 Ex panding  the  foot pr int  of 12 -inch  fabs  through  

investment  participation  and  strategic  alliances  to  

reduce the time, risk, and cost of construction of new  

fabs and to serve local markets.

•	 Avoiding  blind  expansion  of  production  capacity;  all  

investment  plans  have  been  carefully  evaluated  with  

complete consideration of UMC’s maturity of high-end  

  processes and customer’s production capacity demands  

  at various stages.

•	 In response to the addition of new competitors, UMC  

cont inues  to  enhance  development  of  advanced  

  processes, and to maintain the existing advantages of  

stable high yield and complete services. The benefits of  

these are twofold: UMC can increase the lead against new  

competitors while also creating differentiation such that  

  UMC can continue to be the best option for its customers.

•	 Providing most advanced and proper process services  

  w ith  resp ec t  to  IC  pro duc t  charac ter ist ics  in  all  

  application  fields  in  order  to  help  customers  achieve  

the goals of lowest cost, high efficiency, and low power  

consumption.

•	 Strengthening marketing effectiveness and the customer  

service  mechanism  in  order  to  continuously  improve  

customer satisfaction.

•	 S t r e n g t h e n i n g   t h e   d e v e l o p m e n t   o f   l o n g - t e r m  

  partnerships  with  customers,  providing  competitive  

  advanced processes and production capacity, helping  

customers  expand  their  market  share,  and  growing  

together with customers in order to seize the opportunity  

  of new growth waves.

•	 Taking  countermeasures  at  all  times  to  respond  to  

constant market variations while facing global recession.  

  Expanding customer bases, improving product mix, and  

further enhancing the flexibility of production capacity  

  allocation in order to mitigate the impact of periodic  

  demand fluctuation.

Important Purposes and Production 
Processes of Main Products
Main Process Technologies and Corresponding Products

•	 CMOS	 Logic:	 for	 fabricating	 chips	 that	 execute	 logic	 

computing functions, such as programmable gate array,  

  multimedia processor, and application processor chips.

•	 Mixed-Signal: 

for 

fabricating  chips  which  can  

simultaneously process analog/digital mixed signal, such  

  as  ICs  for  broadband  access  communication  and  optical  

storage.

•	 RF  CMOS:  for  fabricating  high  frequency  wireless  

communication  chips,  such  as  ICs  for  cellphone  RF  

transceiver,  Wireless  Local  Area  Network  (WLAN)  and  

  Bluetooth.

•	 Embedded	 Memory:	 for	 fabricating	 integrated	 logic	 

  and memory chips for high performance with low power  

consumption,  such  as  chips  for  micro-controller,  touch  

controller, and smart card.

•	 High	 Voltage:	 for	 fabricating	 driver	 ICs	 for	 LCD	 TV,	 

cellphone, and tablet, e-paper screen driver IC, and power  

  management IC.

•	 CMOS	Image	Sensor:	for	fabricating	CMOS	image	sensors	 

  used in digital camera, cellphone, and webcam.

•	 MEMS:	

for	 making	 application	 products	 such	 as	 

  microphone, inertia sensor, and pressure sensor.

•	 3D  FinFET:  for  fabricating  high  performance  chips  and  

chips  for  executing  fast  logic  computation,  such  as  

  mobile phone baseband processor, application processor,  

  and memory controller.

•	 RF	 SOI	 process:	 for	 fabricating	 wireless	 front-end	 chips,	 

such  as  wireless  switch,  tuner  used  by  mobile  phones,  

  WLAN, and wireless base station.

Production and Fabrication Process

A  complete  IC  chip  fabrication  process  can  be  divided 

into  five  processes,  including  IC  design,  mask  fabrication, 

wafer  fabrication,  packaging,  and  testing.  UMC  has 

been  dedicated  to  the  R&D  of  advanced  IC  processes  and 

specialty  technologies  in  order  to  provide  customers  with 

technologies, materials, and equipment required by their IC 

design.

129

Operations Overview 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Status of Supply of Primary Raw Material

Primary Suppliers

Type of 
Primary Raw 
Material
Silicon wafer ˙S.E.H. Taiwan (manufacturing sites:  

  US, Japan, Taiwan, and Malaysia)
˙SILTRONIC Singapore 

(Manufacturing sites: Germany, 

  US, and Singapore)
˙Global Wafers (Manufacturing 

sites: US, Taiwan, Italy, and  Japan)

˙SUMCO Group (Manufacturing

sites: Japan and Taiwan)

˙SK Siltron (Manufacturing site: Korea)

Market Status of Suppliers

Procurement Strategy

These  five  makers  are  the 
world’s primary silicon wafer 
suppliers  with  production 
sites  in  US,  Japan,  Germany, 
Italy,  Korea,  Taiwan,  and 
Southeast  Asia.  They  can 
offer steady and high quality 
silicon wafers.

in 

1.  T he  company  has  been 
long-ter m  
  procurement  relationships  with  the  world’s  
  primary  suppliers  in  order  to  ensure  the  
  steady access to production material. 
2. In  recent  years  the  ratio  of  procurement  from  
local  makers  has  increased,  which  can  reduce  
the  risk  of  international  transportation  and  

  procurement cost.
3. The  company  will  convene  a  supplier  
  management  committee  meeting  every  quarter  
to  evaluate  suppliers’  performance  in  order  
to  adjust  the  ratio  of  procurement  from  these  

  suppliers.

Major Suppliers

Name

Amount

Supplier “ A”

Others

Net Total Supplies

5,277,316

37,620,283

42,897,599

Percentage 
of Net Total 
Supplies

12

88

100

2018

Relation to UMC

Amount

None

3,770,829

36,819, 1 4 1

40,589,970

In Thousand NTD

2017

Relation to UMC

None

Percentage 
of Net Total 
Supplies

9

91

100

Note: As of the Annual Report printing date, if there is any financial data of the publicly listed company (or company with stock transactions in securities firm’s  

premises) certified or approved by CPA audit, it should be disclosed: None.

Reasons for changes in procurement amount: No major changes.

Major Customers

Name

Amount

Customer “A”

Others

Total Net Operating 
Revenues

15 ,357,470

135,895,101

151,252,571

Percentage of 
Net Operating 
Revenues
10

90

100

2018

Relation to UMC

Amount

None

15,632,722

In Thousand NTD

2017

Relation to UMC

None

Percentage of 
Net Operating 
Revenues
10

133,651,984

149,284,706

90

100

Note: As of the Annual Report printing date, if there is any financial data of the publicly listed company (or company with stock transactions in securities  

firm’s premises) certified or approved by CPA audit, it should be disclosed: None.

Reasons for changes in sales amount: No major changes.

130

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
 
 
Production Figures

Segments

Unit Capacity

Production 
Quantity

Production Value 
(in Thousand NTD)

Capacity

Production 
Quantity

Production Value 
(in Thousand NTD)

2018

2017

Wafer 
Fabrication

in Thousands 
of 8-inch Wafer 
Equivalents

New Business

Total

Sales Figures

7,673

7,145

122,845,827

7,304

6,893

117,627,129

413,129

123,258,956

536,410

118,163,539

Segments

Unit

Shipments

3,077

4,031

Wafer 
Fabrication 

New Business

in Thousands 
of 8-inch Wafer 
Equivalents

Total

Domestic

Export

Domestic

Export

Domestic

Export

2018

Amount 
(in Thousand NTD)

54,444,1 4 1

89,185,989

82,376

73,581

54,526,517

89,259,570

Shipments

2,787

4,050

Industry Specific Key Performance Indicators

KPI

Utilization Rate

Wafer Sales Contributed from 40nm and 
below Technologies

Target

93.4%

44.3%

Actual

93.1%

40.5%

2017

Amount 
(in Thousand NTD)

48,723,790

95,493,937

125,123

111,820

48,848,913

95,605,757

2018

Difference

-0.3ppts

-3.8ppts

131

Operations Overview 
 
 
 
 
 
 
 
 
 
 
 
Employees

Number of Workers

Engineer

Administrator

Clerk

Technician

Total

Average Age

Average age

Average Service Years

Average service years

Educational Distribution Ratio (%)

Ph.D

Master

Bachelor/Associate/Diploma

High school and below

Note: The data represented for 2019 was gathered until March 6, 2019.

2019

 11,544

 747

 29

 7,250

  19,570

2019

  35.8

2019

 8.9

2019

 1.7

  29.6

 48.7

 20.0

2018

11,651

753

 31

7,494

19,929

2018

35.4

2018

8.7

2018

1.7 

  29.4 

 48.5 

20.4

2017

11,846

753

 45

7,432

20,076

2017

35.0

2017

8.0

2017

1.7 

  29.3 

 48.1 

20.9

132

United Microelectronics Corporation  |  Annual Report 2018Environmental Expenditure Information

By  the  publication  date  of  the  2018  annual  report,  all  audits 

preventive  equipment,  totaling  NTD  850  million.  The 

on  UMC  by  environmental  protection  agencies  showed 

monthly  pollution  prevention  expenses  and  O&M  of 

results in compliance with regulatory requirements with no 

pollution  prevention  equipment  exceeded  NTD  96  million, 

environmental  protection  violations  or  any  penalty  or  loss 

while  the  monthly  waste  disposal  cost  exceeded  NTD 

resulting from environmental pollution. 

23  million.  Meanwhile,  NTD  6.3  million  has  been  spent  on 

UMC  has 

identified  environmental  risks  during  the 

annual environment monitoring to track the overall emission 

operational  process  according  to  the  spirit  of  international 

of pollutants. In addition, in response to RoHS (Restriction of 

environmental  management  system  (ISO  14001)  standards, 

Hazardous Substances), around NTD 670,000 has been spent 

based on which corrective and preventive measures can be 

on  continuous  certification  of  the  QC-080000  IECQ  HSPM 

continuously  conducted,  including  equipment  hardware 

system, product inspection, and educational training. 

improvement,  enhancement  of  personal  educational 

In  the  future,  the  company’s  primary  environmental 

training,  and 

strengthening  of  operating 

system 

protection  expenditures  and  items  will  include:  1.  Costs  of 

management. 

replacement,  renewal,  and  upgrade  of  existing  pollution 

In  2018,  the  total  environmental  protection  related 

prevention  equipment;  2.  Operational  costs  of  pollution 

expenditures for all UMC fabs have exceeded NTD 2.39 billion. 

prevention  equipment;  3.  Waste  disposal  costs,  and  4. 

The environmental related expenditures include investment 

Environmental monitoring costs.

in  highly  efficient  pollution  prevention  technology  and 

Labor Relations

UMC has consistently valued employee benefits and welfare, 

UMC  is  committed  to  providing  employees  with  a  safe  and 

and  has  actively  cultivated  talent,  implemented  labor  laws 

friendly working environment. Through continuous efforts, 

and  regulations,  protected  employee  rights  and  interests, 

UMC  has  received  numerous  awards  from  the  Ministry 

and  created  a  bright  and  pleasant  working  environment. 

of  Labor  and  other  organizations  for  excellence  in  labor 

UMC complies with various local laws and regulations, and 

welfare, labor education, labor relations and human resource 

strengthens employee awareness to prevent labor disputes. 

innovation,  and  the  national  excellence  award  for  friendly 

Through  channels  such  as  labor-management  meetings, 

workplace.  Among  these  awards,  the  Special  Distinction 

divisional  meetings,  forums,  suggestion  boxes,  grievance 

Award  was  given  by  the  Hsinchu  Science  Park  Bureau  for 

hotlines staffed by complaint specialists, and communication 

Excellent Workplace Equality.

management  units,  the  Company  has  achieved  competent 

At  the  same  time,  UMC  has  also  won  various  corporate 

communication and effective problem-solving.

sustainability  awards  in  2018.  For  corporate  sustainability, 

In  addition  to  effectively  maintaining  harmonious  labor 

UMC  ranked  in  the  top  5%  for  corporate  self-governance, 

relations, UMC respects and promotes international human 

and  has  won  the  Global  Views  Monthly  Corporate  Social 

rights  by  providing  employees  with  a  quality  employment 

Responsibility  Award  and  the  Global  Views  Monthly  CSR 

environment.  Moreover,  in  UMC  and  all  its  subsidiaries, 

Survey  -  Electronic  Technology  Group  Exemplary  Award.  In 

the  management  and  implementation  of  labor  relations 

addition, UMC has been listed on the Dow Jones Sustainability 

such  as  employee  welfare  measures,  in-service  education, 

Index (DJSI) for 11 consecutive years.

training and retirement systems are planned and conducted 

From  recent  years  to  the  publication  of  this  annual  report, 

in  accordance  with  or  above  and  beyond  the  requirements 

UMC  has  not  suffered  any  loss  arising  from  labor  disputes. 

of  law.  UMC  has  also  set  up  in-house  physicians  to  provide 

In  view  of  the  abovementioned  comprehensive  system  and 

medical  services  and  quality  counseling  services  for  the 

diligent management, UMC can continue to effectively avoid 

physical  and  mental  health  needs  of  employees,  thereby 

labor disputes or losses. 

promoting harmonious labor relations.

133

Operations OverviewEducation and Training

High- qu alit y  t alents  are  the  cor ner s tone  o f  UMC 's 

•	 Mana gemen t  S k i l ls  Training:  Mana gemen t  sk i l ls  

competitiveness,  and  all-round  talent  development  and 

  development  is  an  important  task  for  supervisors  at  

cultivation is the key to improving human resource quality.

  all levels. To this end, UMC provides a series of courses  

UMC's  human  resource  cultivation  policies  are  tailored 

  targeting competencies relevant to supervisors, such as  

according to the career development needs of employees 

  management behavior, skills, knowledge and corporate  

in their particular job type and rank. The policies provide 

  culture integration. To assist supervisors with achieving  

systematic training for all employees, such as new employee, 

  cooperation  in  their  work  and  management,  learning  

technical,  management,  quality  control  and  language 

  resources  such  as  foreman/sectional  chief,  grassroots  

courses.  In  addition,  a  wide  range  of  learning  resources 

  supervisor, middle-level supervisor and senior executive  

such as online learning courses, on the job training (OJT) 

  training courses are conducted.

and  in-service  training  are  also  offered  to  provide  all 

•	 Quality Training: Training courses relevant to UMC quality  

employees with a working environment that is conducive 

  policies and quality requirements are conducted, such as  

for continuing development. In 2018, UMC has conducted 

  knowledge management, proposal improvement, project  

a total of 9,105 training sessions, totaling 17,399 hours of 

  management,  problem  analysis  techniques,  statistical  

training, 342,566 participants and total training expenses of 

  process control and experimental design.

NTD 55,869,585.

•	 Language  Training:  Employee  language  proficiency  is  

The following is a summary of training courses provided by 

  determined through language testing. Training programs  

UMC:

  targeting  specific  learning  needs  are  then  provided  

•	 New Employee Orientation: To help new employees quickly  

  accordingly to strengthen employee language skills and  

  adapt to the work environment, orientation training is  

  workplace competitiveness.

  provided for inexperienced new employees to give them  

•	 E-Learning: UMC has established a learning webpage for  

  a basic understanding of semiconductor processes and  

  employees that integrates all course information, training  

  establish a common language. In addition to basic courses  

  systems and data enquiries. The online platform enables  

  on  company  organization,  remuneration  and  benefits,  

  employees  to  easily  access  needed  information  for  

  basic  daily  necessities  and  industrial  safety,  U-Camp  

  planning and learning without schedule constraints.

  courses on workplace stress management and positive  

•	 On	the	Job	Training:	Each	fab	has	an	Education	Committee	 

  attitude also help new employees understand the spirit  

  to provide training for employees in the various divisions.  

  and  values  of  UMC.  To  help  new  employees  quickly  

  The training is based on skills required by specific jobs and  

  develop  professionalism  and  appropriate  job  attitude,  

  they  are  paired  with  a  mentor  to  help  them  quickly  

integrate into the corporate culture.

  professional skills assessment to ensure that employees  
  have the required job	 competencies. Additional training  
  based on individual differences is also provided to improve  

•	 Technical Training: To help engineers quickly master the  

  the  quality  of  work.  T he  Human  Resource  Div ision  

  o v e r a l l   t e c h n o l o g i e s   a n d   c o n t i n u e   t o   a d v a n c e  

  conducts  an  annual  rev iew  of  training  outcome  to  

  technologically,  UMC  has  a  comprehensive  training  

  determine  and  direct  the  operations  of  the  Education  

  blueprint  for  engineers  that  is  specific  to  divisional  

  Committee in each fab, and convenes a training outcome  

  at tr ibutes.  T he  cur r iculum  includes  basic  courses  

  meeting so that the fabs can share their experience.

(General to Level 2 courses) and advanced, technology- 

•	 In-service  Training:  UMC  provides  information  on  in- 

  specific themed seminars (Level 3 - 4 courses) to enhance  

  s e r v i c e   c o ur s e s   o f f e r e d   b y   o u t s i d e   c o l l e g e s   an d  

  the technical capability of the engineers and develop a  

  universities, promotes educational resources and offers  

  system of internal experts.

  subsidies for in-service training to encourage employees  

In  addition,  to  equip  employees  with  multiple  skills  

  to develop the professional competencies or management  

  and promote cross-divisional cooperation, UMC began  

  skills required at each stage of their career.

  promoting  inter-divisional  training  courses  in 2008  to 

•	 Business	 Ethics	 Training:	 To	 enhance	 the	 behavioral	 

increase  the  depth  and  breadth  of  professional  and  

literacy, professional ethics and professional competence  

  technical training for employees. Furthermore, curriculum  

  of  UMC  and  all  its  employees,  courses  on  employee  

  content  is  continuously  improved  to  meet  the  rapid  

  ethics, inside trading prevention and conflict of interest  

  changes and progress of technology.

  are conducted within the Company and promoted on the  

134

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
  Planning Section in the UMC homepage. To gain public  

and company-wide survey of training needs. The projects 

  trust, all employees (including high-level executives and  

include  company-wide,  cross-divisional  and  divisional 

  other managers in the operation team) are expected to  

training programs. Program implementation is reviewed 

  abide by the ethical spirit of the Company in their daily  

each quarter, and corrective and improvement measures are 

  tasks and businesses, thereby ensuring the sustainable  

proposed for unachieved goals to ensure the effectiveness of 

  growth and development of the Company.

specific employee training.

To ensure effective training direction and implementation, 

UMC  believes  that  creating  a  high-quality  work  and 

the  Human  Resource  Division  develops  education  and 

learning environment can increase employee performance 

training  projec ts  in  the  four th  quar ter  of  each  year 

output  and  retention,  and  that  high-quality  employees 

according to annual company-wide policies, the General 

who  continue  to  develop  are  the  key  foundation  to  the 

Manager's  directives  for  training  focus  and  direction, 

sustainable development of UMC.

Employee Benefits

Employee Welfare System

UMC believes that employees are the most important assets 

to the company, and that a company can continue to develop 

and progress only with appropriate and sufficient talent. To 

this end, UMC is committed to creating a healthy workplace 

environment.  In  addition  to  providing  competitive  salaries 

and  dividends,  a  comprehensive  education  and  training 

system,  diverse  benefits  and  a  safe  and  healthy  working 

environment,  UMC  has  also  developed  a  comprehensive 

employee welfare system in accordance with local laws and 

regulations and regional needs.

inter-fab competitions to cultivate team unity. At the same  

  time, other inter-divisional and inter-fab activities are held  

  during holidays to enhance employee work-life balance.

•	 Club  Recreation:  UMC  has  six  major  categories  of  clubs,  

  such as sports, arts and community service. Whether active  

  or more sedentary, employees can choose from a variety of  

  content.  In  2018,  UMC  had  a  total  of  27  clubs  and  about  

  2,200 participants.

•	 Accommodation  and  transportation  assistance:  UMC  

  provides  safe  and  comfortable  accommodations  for  both  

  direct  and  indirect  labor.  Free  scheduled  transportation  

  and shuttle services are also provided for convenient and  

UMC provides a variety of welfare measures as follow:

  quick connections.

•	 Nutritionally balanced and delicious meals: Each fab has  

At  the  same  time,  UMC  optimized  the  Welfare  Information 

its independently operated cafeteria and a variety of meal  

platform  in  2018  and  introduced  the  Welfare  Club  APP; 

  options. By combining the cafeteria, cafe and convenience  

through  geo-positioning,  employees  can  instantly  find 

  store into an integrated dining area, employees can enjoy  

contract  stores,  thereby  further  enhancing  their  after-work 

  healthy and balanced meals.

life. 

•	 Recreation  Center:  UMC’s  Hsinchu    location  is  equipped  

  with a Recreation Center, while Tainan Fab 12A is equipped  

  with the UMC Park Activity Center, a multi-purpose sports  

  center and gym. The company dormitory also has a gym. In  

  addition,  other  facilities  such  as  gyms  and  aerobic  

  classrooms are installed within appropriate areas of UMC  

  fabs to reflect the concept of a healthy workplace.

•	 Welfare Events: The Welfare Committee routinely organizes  

  events  (such  as  Family  Day,  art  activities,  movies,  trips),  

  and in coordination with Company celebrations, organizes  

UMC  also  holds  employee  health  in  high  regard,  and  plans 

and  implements  benefits  in  accordance  with  or  above  and 

beyond  the  requirements  of  the  law.  For  example,  UMC 

complies  with  the  Act  of  Gender  Equality  in  Employment, 

the  Regulations  for  Establishing  Measures  of  Prevention, 

Correction, Complaint and Punishment of Sexual Harassment 

in the Workplace, and regulations for leaves such as personal  

,sick,  maternity,  paternity,  menstrual,  family  care,  marital, 

bereavement,  occupational  sickness,  annual,  parental  and 

nursing leave.

135

Operations Overview 
 
In  particular,  UMC  was  the  first  private  enterprise  in  the 

factors  engineering  and  healthy  body  posture  guidelines 

country to promote a 12-hour rotating shift for its direct labor. 

to protect employee health. At the same time, health check 

Further worth mentioning is the Company's comprehensive 

for  employees  and  hospital  check-ups  for  their  families 

insurance  system  where  from  the  day  of  employment, 

are  provided  annually,  and  the  results  analyzed.  A  variety 

employees are provided with numerous insurance services. 

of  health  promoting  activities  and  education  are  then 

In  addition  to  labor,  health  and  free  group  insurance  (NTD 

organized  for  employees  accordingly  to  give  employees 

2 million group insurance and cancer insurance), the spouse 

further knowledge and skills for self-managing their health 

and children of employees can enjoy life insurance, accident 

and  the  health  of  their  families.  Furthermore,  through 

insurance  and  group  medical  insurance,  and  their  parents 

occupational safety and health project management, UMC's 

can  enjoy  accident  and  medical  insurance,  thereby  freeing 

Health Center has installed an internal reporting mechanism 

them of worry and enabling them to work their best for the 

for potential occupational chronic injury and disease, regular 

Company and society.

Employee Health
UMC is convinced that only employees who are physical and 

mentally healthy can be highly efficient and produce excellent 

work  performance.  Therefore,  UMC  has  a  longstanding 

commitment  to  creating  a  workplace  environment  that  is 

physically,  mentally  and  spiritually  healthy.  In  addition  to 

assisting employees in all aspects of health management and 

health promotion, UMC also reaches out to their families in 

the hope of boosting employee work morale and improving 

the quality of their work. 

To help employees balance their physical and mental health 

and  that  of  their  families  in  their  busy  work  life,  UMC 

provides free counseling services to ensure the mental health 

of employees. Through confidential professional counseling, 

employees  are  helped  to  address  their  psychological  and 

spiritual issues. In addition, through the Internet, brochures 

and lectures, employees are given the knowledge and skills 

for healthy living, thus enabling them to meet the multiple 

challenges of work and family.

In  2018,  UMC  adopted  the  "Go!  Profit  Without  Sacrifice, 

Take  Charge  of  Your  Health”  comprehensive  health  theme, 

and  integrated  occupational  safety  and  health  laws  such 

as  maternal  protection,  overwork  prevention,  human 

noise  inspection  and  vision  care  program  to  effectively 

prevent occupational injuries. Moreover, as of 2018, UMC's IT 

divisions have integrated their existing systems to construct 

a  new  Health  Care  System  for  employees.  In  addition  to 

allowing  employees  to  instantly  access  their  health  check 

report  and  consult  with  medical  staff  online,  the  system 

increases the daily follow-up rate by the medical care team. 

In addition to regulatory annual checkups, UMC also offers 

a variety of screening and health promoting activities such 

as  cancer  screening  for  women  (PAP  smear,  gynecological 

ultrasound,  breast  ultrasound),  other  cancer  screening,  flu 

vaccination, abdominal ultrasound and other out-of-pocket 

items  so  that  employees  can  choose  appropriate  health 

checks according to their needs.

Labor Pension System

In terms of labor pension system, UMC allocates the worker’s 

retirement  reserve  funds  to  the  Labor  Pension  Reserve 

Supervisory  Committees  in  compliance  with  regulations, 

and  processes  the  employee  labor  pension  payment  in 

accordance with the Labor Standards Law. Since July 1, 2005, 

for employees who opt for the retirement system under the 

Labor  Pension  Act,  6%  of  their  monthly  salary  is  paid  into 

their individual labor pension account to secure their rights 

and interests.

136

United Microelectronics Corporation  |  Annual Report 2018Major Contracts
Supply and Marketing
The  company  has  signed  sales  and  service  contracts  with 

the  global  market.  In  addition,  UMC  maintains  a  long-term 

the  following  companies  to  grasp  the  current  situation  of  

business  relationship  with  major  wafer  material  suppliers. 

The main supply and sales contracts are as follows:

Contract Type Contracted Party

Contract Period

Key Content

Sales

Sales

UMC Group(USA)

Jan 1, 2013~Dec 31, 2018

United Microelectronics (Europe)
B.V.

Jan 1,2018~Dec 31, 2022

Sales

UMC Group Japan Co., Ltd.

Jan 1, 2018~Dec 31, 2022

Sales

UMC Korea Co., Ltd.

Jan 1,2018~Dec 31,2018
Jan 1,2019~Dec 31,2019

Sales and related services for 
semiconductor products

Marketing support service for 
semiconductor products

Sales and related services for 
semiconductor products

Marketing support service for 
semiconductor products

Purchase

Shin-Etsu Handotai Taiwan Co., Ltd.

Indefinite

wafer material supply

Restrictive 
Clause

None

None

None

None

None

Patent and Technology License
UMC  values  and  protects  intellectual  property  rights. 

technology  license  contracts  with  major  semiconductor  or 

With  over  30  years  dedication  in  earning  semiconductor 

technology  patent  holders  to  ensure  that  UMC's  customers 

patents,  UMC  has  achieved  a  predominant  position  in  the 

are not subject to the risk of wafer process infringement. The 

semiconductor  industry.  UMC  also  enters  into  patent  or 

following are patent licensing contracts received and given 

by UMC:

Contract Type

Contracted Party

Contract Period

Key Content

Restrictive Clause

Patent  
cross-license

International Business 
Machines Corporation

Jun 25, 2009~Jun 30, 2029

Technology 
license

International Business 
Machines Corporation

From Jun 29, 2012

Patent license MOSAID Technologies 

Feb 8, 2013~Feb 8, 2018

Incorporated & 
MOSAID(Taiwan) Inc.

Patent  
cross-license

International Business 
Machines Corporation

Jun 13, 2013~Dec 30, 2035

Technology 
license

HeJian Technology 
(Suzhou) Co., Ltd. 

Jul 11, 2013~Jul 10, 2028

Patent cross-licensing for 
semiconductor  process, 
semiconductor  device 
and semiconductor design.

None

IBM  licensed  its  20nm 
C M O S 
F i n FE T 
an d 
technology to UMC

None

P a t e n t  
semiconductor process.

l i c e n s e   f o r 

None

Patent  cross-license  for 
semiconductor  process, 
semiconductor  device 
and 
semiconduc tor 
design.

UMC  licensed  its  0.13um 
process  technology  to 
HeJian Technology (Suzhou) 
Co., Ltd.

None

UMC signed and implemented the 
contract  in  accordance  with  the 
scope approved by the Investment 
Commission, Ministry of Economic 
Affairs.

Technology 
license

Mie Fujitsu 
Semiconductor Limited

From Aug 29, 2014

UMC  licensed  its  40nm 
process  technology  to  Mie 
Fujitsu 
Semiconductor 
Limited.

None

137

Operations Overview 
Major Contracts(Continue)

Contract Type

Contracted Party

Contract Period

Key Content

Restrictive Clause

Patent cross-
license

Avago Technologies 
General IP Pte. Ltd.

Jan 1 , 2014 ~Dec 31, 2018
Sep 29, 2019~Dec 31, 2023

Patent license

NXP B.V.

Sep 30, 2015~Sep 29, 2020

Technology 
license

United Semiconductor 
(Xiamen) Co., Ltd.

Dec 1, 2015~Dec 31, 2019

Patent  cross-license  for 
semiconductor  component 
related patents.

license 

Patent 
and 
assignment  of  right  for 
patent application.

UMC  licensed  its  55/40nm 
process  technology  to 
United  Semiconductor 
(Xiamen)  Co., Ltd.

None

None

UMC signed and implemented the 
contract  in  accordance  with  the 
scope approved by the Investment 
Commission, Ministry of Economic 
Affairs.

Technology 
license

United Semiconductor 
(Xiamen) Co., Ltd.

Ap r 1 , 20 1 7~Mar 31, 2022

Technology 
license

United Semiconductor 
(Xiamen) Co., Ltd.

Nov 23, 2018~Nov 22, 2028

licensed 

UMC 
its  28nm 
process  technology  to 
United  Semiconductor 
(Xiamen) Co., Ltd.

UMC  licensed  its  80/90nm 
process  technology  to 
United  Semiconductor 
(Xiamen) Co., Ltd.

UMC signed and implemented the 
contract  in  accordance  with  the 
scope approved by the Investment 
Commission, Ministry of Economic 
Affairs.

UMC signed and implemented the 
contract  in  accordance  with  the 
scope approved by the Investment 
Commission, Ministry of Economic 
Affairs.

Technology Collaboration

Contract Type

Contracted Party

Contract  Period

Key Content

Restrictive Clause

Technology 
Development

Fujian Jinhua Integrated 
Circuit, Co., Ltd.

May 13, 2016~May 12, 2021

Collaborative  development 
of DRAM process technology

None

Construction

Contract Type

Contracted Party

Contract Date

Key Content

Construction Wholetech System Hitech Limited, 

From Jan, 2018

Restrictive 
Clause

None

Sumitronics Taiwan Co., Ltd., K. J. 
Filtration Technologies Ltd., Versum 
Materials Taiwan Co., Ltd. and others.

L&K Engineering (Suzhou) Co., Ltd.,
Wholetech Group (Shanghai) Trading 
Co. Ltd.,	Jiashan Tanhou Semiconductor 
Exhaust Industry Co., Ltd. and others.

L&K Engineering (Suzhou) Co., Ltd.,	
Shanghai Nomura Engineering Co., 
Ltd.,	Tanhou (Shanghai) Semiconductor 
Exhaust Industry Co., Ltd.,	Shanghai 
Construction No.7 (Group) Co., Ltd. and 
others.

Construction

Construction

138

For  building  the  facilities 
  of  Fab  12A, 
Phase  5  in  the  Tainan  Science  Park,  UMC 
signed  construction  contracts  with  the 
vendors  listed  in  the  second  column.  The 
total  contracted  amount  exceeded  NTD  1.2 
billion.

From Jan, 2018 United Semiconductor (Xiamen) Co., Ltd. 

None

entered  into  construction  contracts  with 
the vendors listed in the second column for 
building fab facilities. The total contracted 
amount exceeded USD 13.3 million.

From Jan, 2018 HeJian  Technology 

(Suzhou)  Co., 

Ltd. 
entered  into  construction  contracts  with 
the vendors listed in the second column for 
fab  expansion  and  facilities  building.  The 
total contracted amount exceeded RMB 110 
million.

None

United Microelectronics Corporation  |  Annual Report 2018Review of Financial Position, Operating Results, 
Risk Management

140  Financial Position 
141  Financial Performance
142  Cash Flows 
142  Major Capital Expenditures from Recent Years and Impact on Company’s Finance and  

Business

142  Main Reasons and Improvement Plans for Recent Annual Reinvestment Policies and  

Profit or Loss, and Investment Plans for the Coming Year

143  Risk Management and Evaluation 
150  Other Necessary Supplements

139

Review of Financial Position, Operating Results, Risk Management 
 
Financial Position

Current assets

Property, plant and equipment

Intangible assets

Other assets

Total assets

Current liabilities

Non-current liabilities

Total liabilities

Capital

Additional paid-in capital

Retained earnings

Total equity

2018

1 4 1 ,1 9 3 ,432

172,846,595

2 ,991,804

47, 5 7 3,075

364,604,906

49,899,337

108,169,078

158,068, 4 1 5

124,243, 1 8 7

40,399,363

61 ,588,543

206,536,491

2017

139,160,486

2 0 5 , 74 1 ,681

3,787,509

45,409,486

394,099,162

88,061,070

92,000,508

180,061,578

126,243,1 8 7

40,858,350

48,065,899

214,037,584

In Thousand NTD

Differences

Differences(%)

2,032,946

(32,895,086)

(795,705)

2,1 63 ,589 

(29,494,256)

(38 , 1 6 1 ,733)

1 6 ,1 6 8 ,570

(2 1,993,163)

(2,000,000)

(458,987)

13,522,644

(7, 5 0 1 ,093)

1

(16)

(21)

5

(7)

(43)

18

(12)

(2) 

(1)

28

(4)

Analysis of deviation of over 20% between 2018 and 2017:
1. Intangible assets:
  Due to decrease in amortization of other intangible assets and patent and technology license fee.
2. Current liabilities:
  Due to decrease in repayments of short-term loans and current portion of long-term liabilities.
3. Retained earnings:
  Due to increase in net income and the net impact of retroactive applications of IFRS 9.

140

United Microelectronics Corporation  |  Annual Report 2018Financial Performance

Items

Years

Operating revenues

Operating costs

Gross profit

Operating expenses

Net other operating income and 
expenses

Operating income

Non-operating income and expenses

Income from continuing operations 
before income tax

Income tax benefit (expense)

Net income

2018

151,252,571

(128,412,544)

22,840,027

(22,159,679)

5,116,884 

5,797,232 

(3,612,833) 

2,184,399 

458,653

2,643,052 

2017

Differences

Differences (%)

In Thousand NTD

149,284,706

(122,226,948)

27,057,758 

(22,143,132)

1,653,695 

6,568,321 

1,230,101 

7,798,422 

(1,167,157)

6,631,265 

1,967,865 

(6,185,596)

(4,217,731)

(16,547) 

3,463,189 

(771,089) 

(4,842,934) 

(5,614,023) 

1,625,810

(3,988,213) 

1

5

(16)

0

209

(12)

(394)

(72)

(139)

(60)

Analysis of deviation of over 20% between 2018 and 2017:
1.  Net other operating income and expenses
  Due to increase in amortization of deferred government grants.
2.  Non-operating income and expenses
  Due to increase in net loss of financial assets and liabilities at fair value through profit or loss and net exchange loss.
3.  Income from continuing operations before income tax
  Due to decrease in gross profit, increase in net loss of financial assets and liabilities at fair value through profit or loss  

caused by stock market volatility and increase in net exchange loss.

4. Income tax benefit (expense)
  Due  to decrease in income  tax expense caused by decrease in income from continuing operations before income  tax  
  and increase in gain on deferred income tax related to changes in tax rates.

141

Review of Financial Position, Operating Results, Risk Management 
Cash Flows

Analysis of Cash Flow for the Year ended December 31, 2018

Cash at Beginning of 
Year

Net Cash Flow from 
Operating Activities

Net Cash Flow from 
Investing and Financing 
Activities

Cash at end of Year

In Thousand NTD

Remedial Measures for Cash Flow 
Shortfalls

Investment Plans

Financing Plans

81,674,572

50,934,976

(48,947,809)

83,661,739

-

-

Note:  Net cash flow from investing and financing activities includes the effect of exchange rate changes of NT$36,680.

Analysis of Cash Flow
1. Operating activities:
  Net  cash  flow  from  operating  activities  is  mainly  from  
  adding back depreciation expense to net income.
2. Investing activities:
  Net   cash  flow  from  investing  ac tivities  is  mainly  
  from capital expenditures, which are partially offset by  
  government grants.

3.  Financing activities:

  Net cash flow from financing activities is mainly from  
  repayments  of  long-term  and  short-term  loans  and  
  bonds,  distribution  of  cash  dividends  and  acquisition  
  o f   t r e a s u r y   s t o c k ,  w h i c h   a r e   p a r t i a l l y   o ffs e t   b y  
  borrowing long-term loans.

4. Remedial measures for cash flow shortfalls: 

  Not applicable.

Analysis of Cash Flow in the Coming Year

In Thousand NTD

Cash at Beginning of 
Year

Estimated Net Cash 
Flow from Operating 
Activities

Estimated Net Cash 
Flow from Investing and 
Financing Activities

Estimated Cash at end 
of Year

Estimated Remedial Measures for 
Cash Flow Shortfalls

Investment Plans

Financing Plans

83,661,739

49,340,937

(53,556,223)

79,446,453

-

-

Major Capital Expenditures from Recent Years and Impact on Company’s Finance and Business
In Thousand NTD
Execution Status of Major Capital Expenditures and Sources of Funding

Operating 
Segment

Project

Actual and Expected Sources of 
Funding

Completion Status
(Up To 2018)

Total Amount
(Up To 2018)

Capital Expenditures Plan

2018

2017

Wafer 
Fabrication

Production 
Equipment

R&D  
Equipment

Production 
and R&D 
Equipment

New 
Business

Cash flows generated from 
operations, bank loans and 
issuance of bonds

Cash flows generated from 
operations, bank loans and 
issuance of bonds

Cash flows generated from 
operations and bank loans

Completed

60,270,509

18,350,545

41,919,964

Completed

3,548,749

1,239,225

2,309,524

Completed

7,093

305

6,788

Expected Benefit from Capital Expenditures
Based on aforementioned capital expenditures, in 2018 the ratio of production capacity from high-end processes of 40nm or 
below is above 35%, of which the production capacity for high-end 28nm or below has grown by 13% from the previous year.

Main Reasons and Improvement Plans for Recent Annual 
Reinvestment Policies and Profit or Loss, and Investment Plans 
for the Coming Year

China's domestic market demand for semiconductors now 
ranks No. 1 in the world, and the Chinese government has 
recently  adopted  a  multi-pronged  approach  to  support 
its semiconductor industry. To be more aligned with the 
market and better meet the needs of IC design companies 
in China, UMC and its subsidiaries have invested about USD 
1.35 billion into United Semiconductor  (Xiamen)  Co., Ltd. 
over a period of five years since 2015 in accordance with 
the projected plan. As of December 31, 2018, a total capital 
of USD 1.22 billion has been invested into the Company’s 

Xiamen  12-inch  fab  for 28-55nm  wafer  service  to  pursue 
further growth of the Company.
In 2009, UMC established UMC New Business Investment 
Corp., which mainly invested in the solar energy and LED 
industries. However, due to continuously sluggish market 
conditions, the company was merged into Fortune Venture 
Capital Corp., a UMC's subsidiary, on July 1, 2018 to improve 
the  Group's  operational  efficiency.  UMC's  investment 
policies are based on long-term strategic investments to 
match the Company's operations and development.

142

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
Risk Management and Evaluation

Enterprise Risk Management Architecture 

BOD/Chairman

Auditing Committee

Internal Auditing & Control

Enterprise risk management
Committee

Divisions

Major R&D Projects in the Future

Latest Annual 
Project

Current Progress

22nm  process 
technology

14nm process 
technology

Embedded 
magneto-
resistive 
memory

/ultra-low 

leakage 
22nm  ultra-low  power 
technology  development  by  securing  strategic 
customers, determining device specifications and 
starting  new  process  technology  development. 
to 
The  process  development 
be  completed  with  customer  product  pilot 
production starting in mid-2019.

is  expected 

Mass  production  for  the  customer  using  UMC’s 
14nm  FinFET  process  has  been 
customized 
successfully 
launched.  The  development  of 
UMC’s  14nm  FinFET  process  platform  has  also 
been  completed,  which  has  passed  reliability 
verification. Currently it has officially entered pilot 
production  for  customer  chips.  The  milestone  of 
customer product mass production is expected to 
be achieved in 2019.

Relevant  process  development  and  verification 
the 
should  be 
development  project  schedule  for  embedded 
magneto-resistive memory.

conducted  according 

to 

Future R&D Projects and the Estimated R&D 
Expenses

Estimated annual R&D expenses for the next three years

Item/Year

2019

2020

2021

R&D expenses

Net operating income 
(undisclosed financial 
forecast of the company)

The share of R&D expenses 
to net operating income

Not 
applicable

Not 
applicable

Not 
applicable

Not 
applicable

Not 
applicable

Not 
applicable

7% to 10% 7% to 10% 7% to 10%

Time of Mass 
Production

R&D Expenses 
Which Should Be 
Invested for the 
Next Two Years

NTD 1.5 billion

2019

Key Success Factors for Future R&D

Customer  circuit  design  verification 
and  product  yield  have  been  qualified 
to mass production standards.

NTD 1.6 billion

2019

lead  customer  has 

The 
launched 
product  pilot  production  using  UMC’s 
14nm FinFET process platform.

NTD 1.5 billion

2021

Customer’s  circuit  design  verification  and 
product yield have been qualified to mass 
production standards.

Special 
technology 
R&D

Development and verification of 90/55/40/28nm 
specialty technology platform (including HV, CIS, 
eFlash, RF SOI, etc.)

NTD 500 million 2020

to  

•	 Cooperating  with  customers 
  create a win-win situation.
•  Completing 
  time.
•  Quality verification is in compliance  
  with customer requirements.

verification 

on  

IP 

Note: The R&D expenses for the next three years will account for around 60% to 75% of the total annual R&D expenses.

In  2018,  UMC  has  been  constantly  strengthening  its 
independent R&D capabilities and fabrication; in the future, 
UMC will continue to be dedicated to the R&D of advanced 
and  specialty processes. The company will adhere  to  its 
R&D strategy to establish independent R&D capabilities and 
will work with important partners, such as IDM and Fabless, 
to  develop  key  process  technologies  through  technology 
licensing. UMC will also work with suppliers of photomask, 
packaging, equipment, material, and EDA to speed up the 
market launch schedule in order to fulfill the company’s 
promise to provide customers with R&D of key processes.

In terms of independent R&D capabilities, UMC’s focus is on 
recruitment and cultivation of R&D talents in order to build 
an outstanding R&D team. The 12-inch R&D production line 
will continue to be expanded in the R&D Center located in 
Tainan Science Park with sufficient funds for enriching the 
overall R&D resources. In 2018, UMC’s R&D led to fruitful 
achievement.  Mass  production  optimization  has  been 
ongoing  28nm;  the  development  of  a 22 nm  ultra-low 
power/ultra-low leakage shrink process technology can be 
provided as a planar process technology solution with lower 
cost and better cost efficiency for customers in response 

143

Review of Financial Position, Operating Results, Risk ManagementRisk Management and Evaluation (Continue)

to the demand for the future IoT era. Currently, UMC has 
provided the design specifications of the first version to 
customers for design-in purposes, and pilot production is 
expected in 2019. In terms of 14nm process technology, high 
performance FinFET device and high yield SRAM have also 
been successfully developed for UMC’s 14nm FFC platform, 
which  has  entered  the  customer  chip  mass  production 
stage. Mass production wafer yield for this process has also 
reached industry competitive levels with wafers shipped 
to  the  primary  customer  already.  The  cooperation  with 
other  customers  regarding  this 14nm  process  has  also 
been in progress. UMC’s R&D team will continue with the 
optimization  of 14nm  to  take  the  full  advantages  of  the 
performance, power consumption, and gate density of 14nm 
FinFET in order to drive next generation Internet, AI, and 
consumer product applications. For specialty technologies, 
UMC has launched the development of “More than Moore” 
processes  and  successf ully  prov ided  comprehensive 
solutions  such  as  ultra-low  power  platform  (uLP),  CMOS 
image sensor (CIS), MEMS, eFlash, embedded high voltage 
(eHV), power management IC (PMIC), and RF SOI.
In order to control the technology and development schedule 
to  fulfill  the  promise  of  customer  market  launch,  UMC 
will continue with the independent R&D strategy, adhere 
to  a  customer-first  philosophy  and  integrate  external 
R&D resources. The company will also accelerate the R&D, 
expand the production capacity and enhance the revenue 
mix of key processes so that higher profits can be created in 
order to respond to the challenges resulting from constant 
technology evolvement.

The Impacts of Interest Rates, Foreign 
Exchange Rates and Inflation on Corporate 
Profitability and Future Countermeasures

Interest Rate Fluctuation

The  bank  loans  of  the  Company  are  floating  rate  debts. 
Therefore, changes in market interest rates will result in 
fluctuations in future cash flows. Based on the bank loans as 
of December 31, 2018, if the interest rate increases/decreases 
by 10 basis points, the Company’s net profit for 2018 will 
decrease/increase  by  NTD 43,930  thousand.  In  order  to 
reduce interest rate risk, the Company continues to monitor 
changes in market interest rates. Besides bank loans, the 
Company also utilizes various financing instruments. To 
support operating needs, the Company will take advantage 
of long-term debts with favorable fixed rates depending on 
market conditions.

Foreign Exchange Rate Fluctuation

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

144

and the Company’s net investments in foreign subsidiaries. 
Based  on  the  assets  and  liabilit ies  of  r isk-avoiding 
management  denominated  in  foreign  currencies  as  of 
December 31, 2018, when the NT dollar strengthens/weakens 
by 10 percent against the US dollar, the Company’s net profit 
for 2018 will decrease/ increase by NTD 1,367,271 thousand. 
On the other hand, when the Chinese Yuan strengthens/
weakens by 10 percent against the US dollar, the Company’s 
net profit for 2018 will increase/decrease by NTD 2,623,900 
thousand.

The Company applies natural hedges on the foreign currency 
risk arising from purchases or sales denominated in foreign 
currencies, which means balancing the assets and liabilities 
denominated in foreign currencies to reduce the impact 
from fluctuation in foreign exchange rates. The Company 
may use derivatives, such as currency forward contracts, 
to partially hedge foreign currency risks associated with 
certain highly probable forecast transactions. These hedges 
will  offset  only  a  portion  of,  but  do  not  eliminate,  the 
financial impact from changes in foreign exchange rates. 
Furthermore,  as  net  investments  in  foreign  subsidiaries 
are  for  strategic  purposes,  they  are  not  hedged  by  the 
Company. The Company continues to monitor the changes 
in foreign exchange rates in order to respond promptly to 
any significant fluctuation.
Inflation
The situation of inflation variation from early 2018 to today: 
the  average  growth  of  the  consumer  price  index  (CPI)  in 
Taiwan in 2018 was around 1.98%. Even though there was a 
YoY decline of 0.05% for December, the annual average was 
kept at 1.98%, thus indicating a rather stable price trend 
without any concern of inflation.

Policies for High-Risk and Highly Leveraged 
Investments,  Lending,  Endorsements, 
Guarantees for Other Parties, and Financial 
Derivatives Transactions, Main Reasons for 
Profit and Loss, and Future Countermeasures

“Loan 

established 

The Company has not engaged in any transaction of high-risk 
or  highly  leveraged  investments.  Any  financial  derivatives 
transaction 
is  to  enhance  the  Company’s  operating 
performance and reduce operating and financial risks.
Procedure,” 
The  Company  has 
“Endorsements  and  Guarantees  Procedure,”  and  “Financial 
Derivatives  Transaction  Procedure”  in  compliance  with  the 
relevant rules and regulations issued by Financial Supervisory 
Commission.  These  internal  procedures  serve  as  the  basis 
for  the  Company  to  enter  into  transactions  mentioned 
above.  The  Company  has  announced  and  reported  these 
transactions,  and  also  established  a  registration  book  in 
order  to  review  these  transactions  regularly.  If  necessary, 
measures will be taken to control financial risks.

United Microelectronics Corporation  |  Annual Report 2018Risk Management and Evaluation (Continue)

Impact and Corresponding Measures of Major  
Domestic and International Policy and Legal 
Changes on UMC's Finances and Business

Expected  Benefits,  Possible  Risks  and 
for  Mergers  and 
Response  Measures 
Acquisitions.

UMC  complies  w ith  nat ional  polic ies  and  laws.  T he 
Company's relevant divisions keep abreast with major policy 
and  legal  changes  at  all  times.  UMC  adjusts  its  internal 
systems and business activities accordingly to ensure the 
smooth operation of the Company.

Impact  on  the  Company’s  Financial  Results 
and  Corresponding  Contingency  Plans  in 
Response  to  Changes  in  Technology  and  the 
Industry

The company places significant importance on the dynamics 
of the semiconductor industry and continues to invest and 
develop semiconductor manufacturing process technology 
and  know-how.  In  order  to  accelerate  the  development 
of  logic  and  specialty  technologies,  optimize  transistor 
performance, reduce power consumption, and continuously 
enhance our technical advantages, UMC invested a total 
of NTD 13.03 billion in research and development in 2018. 
At  the  same  time,  the  company  is  also  actively  working 
with  external  academic  and  government  institutions  to 
develop  new  process  technologies  for  next  generation 
product  applications  to  diversify  the  company’s  process 
technology offerings. The company invested approximately 
USD 650 million in capital expenditure during 2018. UMC 
will  continue  to  invest  in  existing  logic  and  specialty 
technologies, expanding 8” and 12” capacity and driving 
internal  operational  efficiencies.  The  company  believes 
that  these  efforts  will  create  higher  customer  adoption 
of our logic and specialty technologies and expand UMC’s 
market share to fuel growth. UMC will strive to enhance 
its  operations  and  preser ve  the  best  interests  of  its 
shareholders.

The  Impact  of  Corporate  Image  Change  on 
Corporate Crisis Management and Response 
Measures

The  company's  business  philosophy 
is  based  on  the 
company's sustainable operation and long-term partnership 
with  customers  and  social  groups.  The  company  regularly 
holds  shareholders'  meetings  and  legal  person  briefings  to 
increase  financial  transparency.  The  company  also  actively 
participates  in  community  and  public  welfare  activities, 
and  effectively  fulfills  its  responsibility  as  a  member  of 
society.  For  a  variety  of  different  emergencies,  there  are 
special  personnel  responsible  for  planning  and  responding 
to minimize the uncertainty of business operations.

With  UMC's  customers  located  all  over  the  world  and 
given the Company's business philosophy of continuously 
improv ing  the  ser v ice  quality  to  its  customers,  UMC 
understands the importance of satisfying customer needs 
and providing local services. At the same time, UMC also 
recognizes  that  with  expansion  through  mergers  and 
acquisitions,  the  Company  can  take  advantage  of  the 
increased economies of scale and operational efficiency. 
Based on this concept, UMC's Board of Directors approved 
the acquisition of  the  entire  share  capital  of  Mie Fujitsu 
Semiconductor Limited in June, 2018. After the transaction 
is  completed,  the  acquired  company  will  become  UMC's 
production  base  in  Japan  for 12-inch  wafer  services.  In 
addition,  UMC  will  also  continue  to  invest  in  United 
Semiconductor (Xiamen) Co., Ltd. to provide 12-inch wafer 
services in China. UMC's global operational capabilities can 
be strengthened, and customers are given more competitive 
foundry solutions. On the other hand, UMC's overall value 
can be increased and shareholder interests can be enhanced.

The  main  risk  of  cross-border  merger  and  acquisition 
involves integration and compliance with the regulations 
and compliance of various countries. To comply with the 
regulations of related authorities for equity purchase or 
merger  and  acquisition,  UMC  conducts  careful  planning 
and  consultation  with  professionals  from  the respective 
countries. The goal is to not only complete equity purchases 
or mergers, but also to strategically plan to sustain future 
business and maximize shareholders’ interest.

Risk  of  Excess  Capacity  from  Fluctuating 
Economic Conditions

The Company increases its production capabilities through 
fab  expansion  in  order  to  accommodate  more  customer 
orders,  thus  providing  the  means  to  increase  revenue, 
profits  and  market  share.  When  production  capacity 
reaches  economies  of  scale,  manufacturing  costs  can  be 
dramatically reduced. However, the significant potential for 
fluctuations in the semiconductor industry economic cycle 
creates financial risk, as any excess capacity still must be 
accounted for under depreciation of plants and equipment 
during demand softening caused by economic conditions. 
This risk would be considered a burden to the Company.
The  Company’s  capacity  expansion  is  under  deliberate 
capital  expenditure  plans,  which  focus  on  satisf ying 
customers’  needs  while  optimizing  capital  utilization. 
Disciplined  capital  expenditure  can  help  to  develop  a 
healthy industry environment.

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The Company has set forth the Capital Budget Committee 
from 2013, which comprises of members from the Company’s 
Independent  directors  and  non-executive  directors.  The 
Committee’s goal includes review of the Company’s capital 
expenditure budget, with the intent to strengthen long-
term corporate strategy, financial planning and business 
performance.

and 

Risk 
Procurement Concentration

Responsive  Measures 

of 

Risk  of  mater ial  shor tage:  for  example,  insuf f icient 
production  capacity,  accident  in  the  factory,  or  natural 
disaster could result in material shortage. 
Risk avoidance approach: currently UMC adopts a supplier 
self-management mode, in that these materials are stored 
in the company’s and suppliers’ warehouses near UMC fabs. 
The safety inventory level is increased to meet emergency 
demand and to shorten the emergency response time in 
order  to  effectively  reduce  material  shortage  risk,  and 
the  company’s  operation  regulations  are  formulated 
according  to  the  four  subjec ts  of  “Risk  A ssessment 
Operation,”  “Operational  Impact  Analysis  Operation,” 
“Accident Response and Operation Sustainability Plan” and 
“Emergency Material Procurement Operation.” 
In addition, UMC has established alternative suppliers and 
regularly implements evaluations of supplier capabilities, 
f lexibilities  and  natural  disaster  risk  mechanisms  that 
correspond to the production site. Currently, there are no 
high risk incidents. In case of emergency, the emergency 
response  mechanism  will  be  activated,  and  it  will  be 
managed  according  to  the  “Acc ident  Response  and 
Operation Sustainability Plan” and “Emergency Material 
Procurement Operation.”

Risks of Sales Concentration and Responsive 
Measures

UMC has established long-term steady cooperation with 
multiple world-class customers, and the long-term steady 
growth of the company can be ensured by combining the 
competitive edges of UMC and these customers. In 2018, the 
total sales revenues of UMC’s top 10 customers accounted for 
approximately 51% of UMC’s total sales revenues. UMC will 
continue to closely cooperate with customers who require 
advanced and specialty processes, and provide customized 
solutions for specific products and applications. UMC will 
continue to provide comprehensive customer oriented pure-
play wafer foundry solutions in order to expand its customer 
base and improve product mix. The company will further 
enhance the flexibility of production capacity allocation to 
reduce the impact of periodic demand fluctuations with the 
goal of mitigating risk.

146

Risk of Change of Control and Stock Price 
Fluctuation  from  Large  Scale  Transfer  of 
Shares

If the Company’s directors or major shareholders holding 
more than 10% of issued and outstanding shares transfer 
a significant portion of their shareholding in the Company, 
then  a  change  of  control  may  occur.  Furthermore,  such 
transfer  may  give  r ise  to  investors’  concer ns  on  the 
operation of the Company and may cause the market price 
of the Company’s shares to fluctuate.
The share withholding status of the Company’s directors and 
managers have been reported based on official regulations 
and laws. Meanwhile, there has been no significant share 
transfer activity.

Risk of the Company Losing One or More Key 
Personnel without Adequate Replacement 
Due to Any Change of Company Control

UMC’s  future  success  depends  to  a  large  extent  on  the 
continued  service  of  the  Company’s  chairman  and  key 
executive officers. If the chairman or key executive officers 
leave  their positions  as  a result of a change  in Company 
control,  and  qualified  replacement  personnel  cannot  be 
found and integrated in a short period of time, operations 
may be adversely affected.
The Company’s management focuses its operations with the 
intent to maximize value for its shareholders, thus gaining 
their  trust  and  recognition.  If  there  were  a  replacement 
of  management,  the  succeeding  personnel  would  have 
to  recognize  corporate  culture,  be  qualified  to  assume 
professional duties, and be able to execute the Company’s 
policy.

Litigation and Non-Litigation Incidents

On July 1, 2016, International Business Machines Corporation 
(IBM) filed a complaint in the United States District Court for 
the Southern District of New York alleging that UMC failed 
to pay the technology license fees in accordance with the 
technology license agreement and claimed USD 10 million 
with interest of 12% per annum. UMC appealed a judgment 
issued on September 15, 2017 by the United States District 
Court  of  Southern  District  of  New  York  for  the  subject 
matter. The appeal is still on trial. Since the final judgement 
has not been issued, UMC cannot make reliable estimate of 
the financial effect of the litigation.

On August 31, 2017, the Taichung District Prosecutors Office 
indicted  UMC  for  the  Trade  Secret  Act  of  R.O.C.,  alleging 
that employees of UMC misappropriated the trade secrets 

United Microelectronics Corporation  |  Annual Report 2018Risk Management and Evaluation (Continue)

of MICRON TECHNOLOGY INC. (MICRON). On December 5, 
2017, MICRON filed a civil action with similar cause against 
UMC with the United States District Court, Northern District 
of California. MICRON claimed entitlement to the actual 
damages, treble damages and relevant fees and requested 
the court to issue an order that enjoins UMC from using its 
trade secrets in question. The case is currently in progress 
and  UMC  has  appointed  counsels  to  prepare  answers 
against these charges.
On January 12, 2018, UMC filed three patent infringement 
actions with the Fuzhou Intermediate People’s Court against, 
among  others,  MICRON  (XI’AN)  CO.,  LTD.  and  MICRON 
(SHANGHAI)  TRADING  CO.,  LTD.,  requesting  the  court  to 
order the defendants to stop manufacturing, processing, 
importing,  selling,  and  committing  to  sell  the  products 
deploying the infringing patents in questions, and also to 
destroy all inventories and related molds and tools. On July 3, 
2018, the Fuzhou Intermediate People’s Court ruled against 
the aforementioned two defendants, holding that the two 
defendants must immediately cease to manufacture, sell, 
and import products that infringe the patent rights of UMC. 
The lawsuit filed by UMC is still on trial.
On  November 1,  2018,  the  Department  of  Justice  of  the 
United States (DOJ) unsealed an indictment against UMC, 
FUJIAN JINHUA INTEGRATED CIRCUIT CO., LTD. (JINHUA), and 
three individuals, including one current employee and two 
former employees of UMC, alleging that UMC and others 
conspired to steal trade secrets of MICRON, and used that 
information to develop technology that was subsequently 
transferred to JINHUA.  On the same day, the DOJ filed a civil 
complaint enjoining the aforementioned defendants from 
exporting  to  the  United  States  any  products  containing 
DRAM manufactured by UMC or JINHUA and preventing the 
defendants from transferring the trade secrets to anyone 
else. The indictment and civil complaint are still on trial. 
UMC  has  suspended  the  joint  technology  development 
activities with JINHUA and appointed counsel to prepare 
answers against these charges. Given these litigations are 
still in the preliminary stages, UMC cannot assess the legal 
proceeding and probable outcome or impact.

Risk of Climate Change

The Risk of Climate Change May Negatively Affect UMC’s 
Business Operation

It has become a global consensus that climate change will 
result in economic loss. The inevitable global carbon risk will 
not only bring rising manufacturing and transportation 
costs due to increased prices for petroleum and electricity, 
but will also directly impact the economy and the operation 
of enterprises from the perspectives of energy tax, carbon 
tax, border carbon tariff, and stringent environmental laws 
and regulations.

In addition to the risks resulting from climate change, UMC 
also sees opportunities. In 2010, UMC was the first in the 

industry  to  announce  a  comprehensive  climate  change 
policy as the criteria for the company in response to the era 
of carbon restriction. UMC has also actively implemented 
measures  in  response  to  climate  change.  For  example, 
to  reduce  the  emissions  from  f luorinated  greenhouse 
gases used in by wafer foundries, UMC was the first in the 
industry to complete a two-phase fluorinated greenhouse 
gases replacement plan for all its fabs (by replacing C2F6 
with  C3F8  and  C3F8  with  C 4F8)  in  order  to  greatly  reduce 
greenhouse gas emission and the impact of global warming. 
In the meantime, UMC supported the EPA early reduction 
project and acquired a carbon reduction allowance, thus 
successfully turning risk into competitiveness.

Additionally, natural disasters possibly caused by climate 
change,  including  drought,  f lood,  ex treme  weather, 
and  rising  sea  level,  could  lead  to  impact  on  corporate 
operations.  UMC’s  fabs  are  located  on  islands,  such  as 
Taiwan  and  Singapore,  so  they  are  more  sensitive  to  the 
effects of climate change. UMC has taken into consideration 
the risk of disaster introduced by climate change during 
fab construction, and the company will continue to review 
and improve by following the ISO 22301 Business Continuity 
Management System.

At  its  current  stage,  UMC  has  conducted  the  analysis  of 
climate  change  risk  according  to  the  aspects  of  policies 
and  laws  and  regulat ions,  var iat ion  of  market  and 
technology,  business  reputation,  and  physical  risks  in 
order  to  determine  the  responsive  measures  to  reduce 
the  potential  impacts.  Meanwhile,  considering  its  core 
technology  and  manpower,  UMC  has  also  been  seeking 
opportunities to enhance operational competitive edges 
based on the aspects of resources efficiency, energy source, 
products, services, market, and business reputation. Facing 
the issues of global climate change and the management 
of energy and greenhouse gases, in recent years UMC has 
been actively drafting environmental protection objectives 
through various stages and aspects and developed specific 
implementation plans for gradual promotion.

Disaster Risk Management

As a leader in the semiconductor fabrication industry, UMC 
is fully aware of the impacts of natural disasters and man-
made accidents on production and operation. Therefore, 
UMC has always faced disaster risk management with an 
active attitude of prevention management, and pursues 
the  highest  safety  standards  within  the  semiconductor 
industry  through  stringent  risk  engineering  control  and 
implementation  management  of  safety  regulations  and 
standards.

Fire Safety

UMC  ha s  applied  inter nat ional  s t and ard s,  such  a s 
Factory  Mutual  (FM)  Insurance  Company,  Underwriters 
Laboratories Inc. (UL), National Fire Protection Association 
(NFPA),  and  Semiconductor  Equipment  and  Materials 

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Review of Financial Position, Operating Results, Risk ManagementRisk Management and Evaluation (Continue)

International  (SEMI)  to  building  structure,  equipment, 
and  risk  engineering  control  and  assessment,  and  the 
company  regulations  have  been  formulated  to  serve  as 
definite  requirements.  UMC  is  also  the  only  company  in 
the semiconductor industry with its own fire brigade. In 
addition to being equipped with professional fire engines 
and  fire  rescue  equipment,  the  fire  brigade  normally 
conduct professional training to teach emergency response 
capabilities  to  employees,  while  having  the  ability  to 
respond onsite in case of disaster.

Protection Against Natural Disaster

UMC has actively planned and established a complete and 
sound  disaster  risk  management  response  procedure.  It 
has worked with world-renowned structure consultation 
companies specialized in responding to earthquake disaster, 
such as EQE (EQE International Inc.) and JENSEN HUGHES 
to  include  seismic  safety  of  buildings,  factory  facilities, 
pipelines, and production machines into the design criteria 
at  the  preliminary  stage  of  fab  construction.  There  are 
plans for continuous improvement of older fabs built prior 
to 1999. In February 2016, an earthquake of Richter scale 
magnitude 6.6 took place in southern Taiwan, registering 
close to 6 at UMC’s Fab 12A in Tainan Science Park. However, 
hardware  loss  was  rather  moderate  compared  to  other 
companies in the industry, which was an indication of the 
effectiveness of UMC’s seismic design. In addition, UMC has 
continued to introduce new seismic protection technologies, 
including anti-earthquake damper for buildings and seismic 
isolation  platforms  for  reticle  stocker  and  furnace  and 
the establishment of an onsite earthquake early warning 
system in 2018 for further enhancement of personal safety 
and reduction of risks associated with losses of machine and 
equipment due to earthquake.

with the machine specifications compliance review before 
machines are moved in and machine installation inspection 
after machines are moved in.

International Risk Rating (Triple-Star Rating System)

UMC introduced the Triple-Star Rating System in 1998, and 
the  company  has  since  invited  international  insurance 
company AIG (American International Group) to conduct 
risk  audits  so  that  UMC  could  continuously  enhance 
fab  protection  level  in  order  to  be  in  compliance  with 
international standards and to maintain the commitment 
level of Highly Protected Risk (HPR) for our customers and 
the insurance market. Aside from some items in older fabs, 
the ratings of all other fabs are maintained at the highest 
level.

(BCM) 
Business  Continuity  Management 
UMC  recognizes  that  pursuing  the  sustainable  operation 
of  its  organization  actually  means  providing  strategic 
customers  and  important  stakeholders  with  continuous 
services.  Therefore,  the  highest  mission  of  the  company  is 
to  provide  customers  with  diversified,  high  quality,  and 
uninterrupted wafer foundry services.
In  2013,  UMC  was  the  first  in  the  industry  to  be  granted 
the  ISO  22301  Business  Continuity  Management  System 
Certificate issued by SGS Taiwan Ltd., for both its Hsinchu 
HQ and Fab 12A. In 2016, Fab 12i in Singapore was granted 
ISO  22301  Business  Continuity  Management  System 
Certificate  after  only  its  first  evaluation.  Under  such 
operation  and  maintenance  mechanism,  UMC  will 
continue  to  review,  refine,  and  ensure  the  maintenance 
and  recovery  of  the  highest  operational  objectives  upon 
occurrence  of  disaster  or  impact  in  order  to  protect  the 
rights and interests of customers and stakeholders.

Responses to Climate Change Risk

Business Continuity Policies

UMC  has  always  cared  about  the  possible  impacts  from 
extreme  weather.  T he  company  has  completed  f lood 
potential  simulations  for  fabs  in  Taiwan  since 2014,  and 
conducted hardware improvement to strengthen the flood 
control capacity of Fab 12A. UMC was also the first in this 
industry  to  develop  an  early  warning  system  to  detect 
water shortage that is integrated with quarterly long-term 
weather forecast data to provide the prediction of water 
conditions in the coming three months so that water saving 
measures can be conducted, and water truck contract and 
rehearsals can be prepared in advance to reduce any risk to 
operations.

Safety Protection of Process Equipment

Safety,  Health,  and  Environmental  Protection  Standards 
of Semiconductor Manufacturing Equipment (SEMI S2) is 
the primary international standard for UMC to establish 
the mechanism for review of new machines and company 
regulations. The “UMC Process Equipment ESH Procurement 
Specifications” has been introduced at the procurement 
stage. The safety of machines can be under effective control 

148

•	 T he  highest  purpose  of  the  company’s  sustainable  
    operation and management is to provide customers with  
    diversified, high quality, and uninterrupted wafer foundry  
    services while continuously pursuing partnerships with its  
    customers.
•	 UMC  will  implement  the  operation  of  the  business  
    continuity  management  organization  and  conduct  
    business  impact  analysis  and  risk  assessment  when  
    the business environment changes, so that sustainable  
    operation strategies and objectives can be formulated and  
    secure resources can be obtained for such implementation  
    with continuous review and refinement.
•	 In case of disaster or impact, UMC will invest sufficient  
    resources according to its business continuity strategies  
    in order to maintain and restore optimal operations. The  
    company will keep good communication with, fight for  
    and protect the rights and interests of its customers and  
    stakeholders.

United Microelectronics Corporation  |  Annual Report 2018Risk Management and Evaluation (Continue)

Enterprise Information Security Risk 
Management
Risk Management Organization Structure

In 2018, UMC established the “Enterprise Risk Management 
Committee” to collaborate with key organizations in the 
company's risk management and control to jointly examine 
and manage internal and external risks and prioritize risk 
response strategies for major risk issues across the company. 
It  is  combined  with  internal  audit  functions  to  ensure 
that the operational risks associated with operations are 
properly managed. In the same year, UMC established the 
"Corporate Security Division" responsible for the company's 
information security and physical security planning and 
related  audit  matters,  and  working  together  with  the 
“Information Technology Division” to further strengthen 
information security.

Information Security Policy

UMC's information security policy is based on the guiding 
principle: "To establish Information Security Management 
r ules  in  accord ance  to  regulat ions  and  c u stomer ’s 
requirement, to reach a consensus that information security 
is  everyone’s  responsibility  through  full  awareness,  to 
protect information Confidentiality, Integrity, Availability 
for  the  Company  and  Customer,  and  to  provide  a  safe 
production environment to ensure sustainable operation 
of the Company's business." The major information security 
objectives are aimed at antivirus, anti-intrusion and anti-
leakage through the building of multiple internal controls 
such as firewall, intrusion detection and antivirus systems 
to enhance the Company's ability to defend against external 
attacks.  Also,  with  the  support  of  top  management  and 
through regular education and training programs, security 
operation/awareness  is  tightly  involved  and  seamlessly 
integrated into every employee's daily work.

Establish Enterprise Risk Management System

The Enterprise Risk Management Committee integrates the 
identified various risk items, including strategy, operations, 
finance, disasters, etc., assesses the likelihood and severity 
of  the  occurrence,  defines  the  priority  order  and  risk 
level of the risk items, and takes the risk of response. The 
management  plan  periodically  reviews  the  potential 
occurrence of risks and the potential for changes in severity 
over time to grasp the effectiveness of risk management 
plans and related control operations.

UMC  complies  with  multiple  ISO  certification  standards 
as  a  means  of  achieving  risk-oriented  management  and 
inspection purposes in the areas of quality, environment, 
water resources, carbon footprint, green energy, etc. Related 
information  security  certification  includes  ISO15408, 
ISO22301 and ISO27001. The Company has also established 
corresponding risk management committees to promote 

standardization processes and reduce the risk of business 
operations. Please refer to the company website for related 
certification information. http://www.umc.com/English/
CSR/b_5.asp.
Assessment of Information Security and Cyber Risks

UMC  pays  special  attention  to  the  security  risks  from 
e x te r na l   i n t r u s i o n ,   an d   b ui l d s   a   c o mpl e te   mu l t i -
layer  defense  mechanism  including  firewall,  intrusion 
detection, antivirus system, vulnerability scanning, patch 
management  procedure  and  penetration  testing,  etc. 
The  annual  self-assessment  on  cyber  security  defense 
capability is about an average of 3 to 4 points (corresponding 
to  Defined  ~  Managed  level  in  InfoSec  Maturity  Model). 
The  found  weakness  items  are  listed  as  annual  projects 
for consistent improvement. In addition to internal self-
assessment,  the  Company  also  leverages  a  professional 
international  security  company's  resources  to  help  on 
overall security healthy inspection as a trusted third party 
verification and a basis for further improvement.

Information Security Management System

UMC  is  an  ADR  issuing  company.  Since  January 2006 , 
i n t e r n a l   c o n t r o l   p r o c e ss e s   m u s t   c o m p l y   w i th   th e 
Sarbanes-Oxley  Act  (SOX 404).  In  compliance  with  SOX 
404 specifications, UMC has conducted security program 
compliance certification for its key financial processes. In the 
following year, UMC further strengthened its information 
security by introducing the ISO 27001 information security 
management system certification to operate its information 
system under the standard management regulations. This 
will reduce security loopholes and production abnormalities 
caused by human error. In addition, through the annual 
operation reviews, continuous improvements will be made 
to the Plan-Do-Check-Act (PDCA) cycle. 
In 2014, a cross-division security committee was established. 
Based on the need to produce secure products like smart 
card,  the  Company  decided  to  introduce  ISO 15408  (CC, 
Common  Cr iter ia)  cer tif ication.  T he  cer tif ication  is 
specifically designed for secure production procedures not 
only in data receiving, processing and destroying but also 
higher physical access control request for securing the entire 
production line. Continuous improvement of PDCA is then 
carried out through biennial recertification.

The Arrangement of the Security Insurance

In  v iew  of  recent  repor ts  about  data  leakage,  v ir us 
infection, hacking event in Taiwan and the world, together 
with  the  ransomware  incident  of  peer  semiconductor 
manufacturer's information system in August 2018 which 
caused billions of NT dollars in operational disruption (BI, 
Business Interruption), the worldwide security threat has 
been  drastically  intensified.  There  is  no  guarantee  that 
enterprises will not become the target attacks even if they 
already  have  good  security  protection  in  place.  UMC's 

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strategy  is  to  adopt  cyber  security  insurance  as  a  new 
option for partly transferring and mitigating the risk. This 
insurance became effective in Jan. 2019 with a retroactive 
option that can trace back to stealth threats existing in the 
company prior to the effective date. The initial insurance 
amount is set to be USD 10 million and covering all UMC fabs 
in Taiwan and Singapore. In the future, they will be reviewed 
annually to protect the company from potential losses in the 
event of a cyberattack.
The  Impact  of  Occurred  Major  Security  Incidents  and 
Corresponding Response Measures

UMC  had  a  major  WannaCry  ransomware  incident  in 
2016,  causing 42   Servers/PC/NBs  used  in  the  OA  area 
to  be  infected  and  needing  to  be  re-built.  Fortunately, 
due  to  early  detection  and  proper  handling,  it  did  not 
spread  to  production  line  computers.  In  recent  years, 
this  was  considered  a  relatively  serious  virus  incident. 
In  addition  to  immediately  upgrading  to  new  versions 
of  antivirus  sof tware  with  behavior-based  detection 
capability and implementing strict information device in/
out management, the Company policy also requires that 
production line computers update critical patches to defend 
against  such  worm-type  viruses  that  may  attack  system 
vulnerabilities. Another countermeasure is to set the Access 
Control List (ACL) in the production line network to grant 
necessary access between equipment tools, which can block 
viruses  from  spreading  and  limit  the  impact  to  a  small 

scale.  After  the  virus  incident  in  2018,  SEMICON  Taiwan 
formed a member task force that included UMC to co-study 
equipment information security standards and contribute 
as a responsible local enterprise.
In short, the current security risks disclosed by UMC in this 
annual  report  should  be  supplemented  with  a  famous 
quote from the information security industry: "There is no 
such thing as 100% security." While new attack techniques 
are constantly reinvented, defense systems are faced with 
zero-day  attack  limitations;  past  defense  achievements 
do not necessarily mean or guarantee that anomalies will 
not happen in the future. Enterprises must keep pace with 
the  times  and  confront  the  ever-changing  and  growing 
information  security  threat.  Information  security  has  a 
long way to go and requires continuous improvement. UMC 
will uphold its corporate culture of "Customer-orientation, 
Integrity, Innovation, Accountability, Efficiency" and fulfill 
its ”due care/due diligence” management responsibility to 
provide customers with a secure production environment 
to reduce operational risk and reward shareholders with the 
highest investment value as possible.

Other Significant Risks
None.

Note: The analysis and valuation of Risk Items shown above include  

the data during 2018 and as of the Annual Report Printing Date.

Other Necessary Supplements

None.

150

United Microelectronics Corporation  |  Annual Report 2018 
 
Social Responsibility

152  Description of Corporate Social Responsibility
154  About Social Charity 
159  Environmental Protection, Safety and Health  

Management Instructions

151

Social Responsibility 
Description of Corporate Social Responsibility

At UMC, not only does the company regard Corporate Social 
Responsibility  (CSR)  as  a  primary  aspect  of  its  corporate 
culture, all employees are expected to act as corporate social 
responsibility  role models so that UMC can achieve its goal 
of pursuing sustainable operation to give back to society 
and care for social development.
In 2018, UMC was awarded with multiple honors related to 
corporate social responsibility, including Taiwan Corporate 
Sustainability Report Award, Green Procurement Award, 
Occupational  Safety  and  Health  Award,  and  Enterprises 
Environmental Protection Award. Meanwhile, UMC has been 
listed as one of the DJSI-World constituent stocks of DJSI 
(Dow Jones Sustainability Indices) for 11 consecutive years. 
DJSI  is  one  of  the  most  credible  international  corporate 
sustainability evaluation tools, so this is an indication that 
UMC’s  sustainability  performance  has  been  recognized 
by  the  international  investor  sector  as  a  global  leading 
enterprise. 

In addition to continuous dedication to this industry, the 
self-expectation of UMC is to become a green giant within 
the  semiconductor  industry.  Energy  saving  and  carbon 
reduction is a long-term undertaking, in which UMC is an 
advocator  of  low  carbon  innovation  and  provider  of  low 
carbon solution as well as an implementer of low carbon 
actions. UMC established "Fluorinated Greenhouse Gases 
Reduction Work Group" as early as 1999 in response to global 
warming, and it achieved its 2010 voluntary reduction goal 
outlined  by  Taiwan  Semiconductor  Industry  Association 
ahead of schedule. On Earth Day (April 22) in 2010, UMC was 
the  first  in  the  industry  to  announce  a  “Climate  Change 
Policy” and “UMC’s Low Carbon Commitment” as the highest 
guidelines in response to climate change.

In 2013, UMC started an early reduction project for carbon 
reduction allowance approved by the EPA, which was based 
on  the  company’s  carbon  reduction  achievements  for 
more than a decade. UMC completed the first carbon trade 
recognized by Taiwan’s EPA in 2014, which can be regarded 
as an important milestone for the domestic carbon trading 
market.  The  income  from  this  carbon  trade  was  used  as 
for  the  environmental  protection  fund.  Meanwhile,  the 
“UMC  Eco-Echo  Ecology  Preservation  Hope  Project”  was 
activated to work with The Society of Wilderness to promote 
the Sauter's frog habitat preservation action in Hsinchu, 
where UMC’s HQ is located, as an effort for contributing to 
environmental sustainability. In 2016, UMC extended the 
spirit of this project and launched the UMC Eco Echo Award. 
It has collected outstanding projects and creative ideas for 
a friendly environment via the execution and selection of 
the Eco Echo Award in order  to urge more people to  join 

152

this  environmental  protection  effort.  By 2018,  more  and 
more enterprises were participating in the care for local 
Taiwan  ecology;  in  terms  of  society,  UMC  also  provides 
disadvantaged organizations with energy saving and carbon 
reduction services through its energy saving service team 
in  the  three  aspects  of  energy  conservation  and  safety 
counseling, technical information on energy resources and 
engineering improvement in order to fully utilize corporate 
resources in response to global warming.
UMC has also actively promoted clean production and green 
product management. In 2006, the company was the first 
among all semiconductor makers in the world to complete 
the third party verification audit of Hazardous Substance 
Process Management (HSPM) system, and UMC became the 
first company in the world to acquire QC-080000 IECQ HSPM 
certificate for all fabs. In 2009, it completed the first “product 
carbon  footprint”  verification  of  IC  wafers  according  to 
the  International  Carbon  Footprint  Standard  PAS2050. 
In  2010,  UMC  completed  the  “product  water  footprint” 
verification of IC wafers according to the Business Water 
Footprint Accounting criteria of the non-profit international 
organization “Water Footprint Network.” As an important 
milestone  for  development  of  green  production,  these 
results can also provide complete, scientific, and reliable 
product  information  as  the  basis  for  self-review  and 
continuous improvement. UMC also actively promotes green 
supply  chain  projects  to  help  customers  produce  green 
products with lower environmental impact and to enhance 
the sustainable competitiveness of the entire supply chain.
UMC’s  Corporate  Social  Responsibility  Report  issued  in 
2018 was composed by referring to the Global Reporting 
Initiative  (GRI)  Standards,  and  the  content  of  this  report 
was verified by a third party according to “Account Ability 
1000 Assurance Standard.” In the same year, the Corporate 
Social Responsibility Report published by UMC was awarded 
the  Taiwan  Corporate  Sustainability  Report  Award  for 
the  11th  consecutive  year.  These  honors  and  recognitions 
indicate  that,  after  long-term  dedication  to  corporate 
social  responsibility,  UMC’s  actions,  transparency  and 
completeness of information disclosure have all reached 
the  international  level,  such  that  it  has  become  a  global 
benchmark enterprise.

Str uc ture  of  UMC’s  Cor porate  Social  Responsi bi lit y 
Organization

UMC’s Corporate Sustainability Committee was established 
in  April 2008.  This  is  an  important  milestone  of  UMC’s 
implementation  of  social  responsibility  and  direction 
towards  the  road  to  sustainability,  and  it  also  represent 
UMC’s  foc us  on  cor porate  soc ial  responsibilit y  and 
resolution of promoting relevant measures. This committee 
is the highest level organization within UMC in charge of 
sustainable development and formulation of directions and 
objectives of corporate social responsibility for the entire 
company.  The  performance  and  objective  achievement 
will be reviewed regularly by the chairman and committee 

United Microelectronics Corporation  |  Annual Report 2018Description of Corporate Social Responsibility (Continue)

members, and the director general of this committee will 
report to the board of directors annually on the effectiveness 
and plan of promotion, and important issues and responsive 
measures that stakeholders are concerned about.

while pursuing the goal of a continuously evolving supply 
chain, this sub-committee develops long-term partnerships 
with vendors for quality, cost leadership, delivery, service/
response, and sustainability.

There  are  seven  sub-committees  under  the  Corporate 
Sustainability Committee, which are Corporate Governance 
C o m m i t t e e ,   Cu s t o m e r   R e l a t i o n sh i p   M a n a g e m e n t 
Committee, Supplier Management Committee, Innovation 
Te chn o l o g y   C o mmi t t e e ,   H um an   R i gh t s   an d   S o c ia l 
Participation  Committee,  Environment  Committee,  and 
Green Manufacturing Committee. Their functions are as 
described below:

Corporate Governance Committee

Help strengthen the function of the Board and shareholder 
equity, integrate related regulations and policies of relevant 
depar tments,  and  help  complete  and  implement  the 
company’s internal control system to ensure information 
t ransparenc y  and  disclosure,  and  compliance  w ith 
regulations. Thus, operation philosophy such as core value 
of integrity and honesty, transparency of information, focus 
on the shareholder equity and fine internal control can be 
fulfilled.
Customer Relationship Management Committee

Refine customer service and quality control, improve service 
quality and customer satisfaction, and protect customer 
interests and relevant trade secrets.

Supplier Management Committee

To  establish  a  protective  environment  and  emphasize 
the obligation to society, labor rights, security and health 

Innovation Technology Committee

Promote  green  product  research  and  development  and 
innovations, and lead in cutting-edge green technology.

Human Rights and Social Participation Committee

Responsible for protecting the basic rights of employees and 
promoting communication with outside communities and 
society. Integrate the UMC Science and Culture Foundation, 
and with focus on education, arts, sports, public service and 
environmental protection, strive to promote technological 
research  and  development  co op erat ion,  long-ter m 
educational assistance, arts and sports activities and other 
social welfare events.
Environment Committee

P romote  company-w ide  env ironmental,  safe t y  and 
health,  energy,  water  and  greenhouse  gas  emission 
management. Establish sustainable supply chains and long-
term partnerships with suppliers to enhance sustainable 
competitiveness.
Green Manufacturing Committee

Promote company-wide green processes, such as hazardous 
mate r ials   mana g e m e n t   an d   in c rea s e s   in   re s o urc e 
productivity.
The organizational structure of Corporate Sustainability 
Committee is as shown below:

Board of Directors

Corporate Sustainability Committee

Sustainability Office

Green 
Manufacturing 
Committee

Environment 
Committee

Human Rights and 
Social Participation 
Committee

Innovation 
Technology 
Committee

Supplier 
Management 
Committee

Customer 
Relationship 
Management 
Committee

Corporate 
Governance 
Committee

To maintain and effectively implement UMC’s corporate sustainability promises, UMC’s corporate sustainability 
committee will adjust the organizational structure in accordance with actual operating results.

153

Social ResponsibilityAbout Social Charity

UMC Science and Culture Foundation

Es t ablishe d  in 1996 ,  the  UMC  S c ience  and  Cul t ure 
Foundation  has  been  promoting  social  charity  for  many 
years.  Cur rently,  the  focus  is  long-ter m  educational 
assistance, and the Spreading the Seeds of Hope Project was 
launched in 2005 to help disadvantaged families through 
tutoring.  Collaborating  with  agencies  in  Hsinchu  and 
Tainan, the Foundation funds classrooms and the hourly 
wages of teacher trainees from universities to provide free 
tutoring  to  disadvantaged  students  needing  academic 
assistance.

Summary of key implementations in 2018:

Key Items

Description

Outcome

Letter Writing 
Volunteers

letters, 

Through 
the 
volunteers  reach  out  to  
their  sponsored  school 
children 
to  encourage 
them, which is the simplest 
way  of  offering  friendship, 
care and hope. 

Sponsored  a  total 
of  110  children 
f rom  the  Fund 
for  Children  and 
Families.

  For  more  information  on  charity  events,  please  refer  to 
the UMC Science and Culture Foundation webpage at http://
foundation.umc.com/

Key Items

Description

Outcome

Donations for 2018 are as follow:

Education 
for the 
Disadvantaged

Life Education

UMC Drum 
Club

Parent 
Education

In 2018, 120 children 
  total 
received  a 
of  750  hours  of 
tutoring.

last  10 
Over  the 
the  Club 
years, 
has 
given  68 
performances  to 
a  total  audience 
of  more 
than 
20,000 people.

Over  the 
last  6 
years, the group has 
given  37  inspiring 
performances  to  a 
total  audience  of 
more  than  25,000 
people.

Continued 
sponsor 
program in 2018.

to 
the 

During its 25th anniversary 
celebration  in  2005,  UMC 
launched 
the  Spreading 
the  Seeds  of  Hope  Project, 
an  educational  program 
that  provides  after-school 
tutoring  for  children  from 
disadvantaged  families  in 
Hsinchu and Tainan.

Formed  in  2009,  the  Love 
Storyteller  Club  has  given 
drama  performances 
in 
Pingtung,  Hsinchu 
and 
Tainan.

Organized  by  the  former 
Executive  Director,  the 
UMC  Drum  Club  was 
launched  in  the  Hsinchu 
and  Tainan  Science  Park  in 
July  2013.  The  group  hopes 
to give back to society with 
"friendships through drums 
and 
through 
love.  "  Moreover,  through 
executive  participation,  a 
culture  of    volunteering  is 
promoted. 

inspiration 

Exclusively  sponsored  the  
Whatever  Makes  Sense  for 
Voice  of  IC  Teacher  Hung 
Lan.  Discussions  are  based 
on  brain  science  research 
and  audience  opinion  on 
parent  education,  and  the 
vast  influence  of  media  is 
used to jointly create smart 
living with the audience.

Story-telling 
Volunteers

Employees 
volunteering 
for  story-telling  led  reading 
activities in Baoshi Elementary 
School  in  Hsinchu  County  to 
motivate  children  to  read  on 
their own.

In 
the 
2018, 
volunteers provided 
18  sessions  of 
ac tiv ities  to  a 
total  of  about  300 
children.

154

UMC 
Science and 
Culture 
Foundation

Social Participation

Spreading  the  Seeds  of  Hope  Project 
Tutoring Program
Sponsored 110 children from the Fund 
for Children and Families.
Sponsored 
Association. 
Sponsored art and cultural events.

the  Nantou  Karate 

Life  education  promotion  and  other 
sponsorships.
Subtotal

UMC LOHAS 
Education 
Foundation

Sponsored 
the  Hsinchu  City 
Government's 2018  Special Learning 
Programs for Foreign Residence.

Provided free admissions for charity/
visitations  (a  total  of  700  students 
visited  the  UMC  Recreation  Center, 
and  300  free  admissions  to  the  
recreational  facilities  were  given  to 
charity group.

Sponsored  events  organized  by 
the  Hsinchu  City  Department  of 
Education in 2018.

Sponsored  Science  Park  Cup  sports 
competitions.

Sponsored  the  sites  for    Taiwan 
Lear ning 
Development 
Association  and  Taiwan  Toy  Library 
Association.

and 

Subtotal

Total

In NTD

Amount

3,977,177

1,320,000

2,000,000

1,280,000

2,975,475

11,552,652

125,200

100,000

100,000

600,000

120,000

1,045,200

12,597,852

Promoting UMC Volunteer Culture

Und er  the  lea d er ship  o f  UMC  S c ience  and  Cul t ure 
Foundation,  the volunteer  culture  at  UMC  has  gradually 
expanded  to  include  volunteers  from  throughout  the 
Company. At present, a large group of eager UMC volunteers 
has  spontaneously  formed    the  Candlelight  Club  for 
community services. The volunteer climate has gradually 
expanded to various clubs, and in 2018, 5 clubs participated 
in charity services.

United Microelectronics Corporation  |  Annual Report 2018 
About Social Charity (Continue)

UMC  is  passionate  about  public  charity.  The  Company 
recognizes the limited resources of organizations for the 
disadvantaged and their great need for energy conservation 
and  carbon  reduction.  Therefore,  in  2015,  UMC  began 
forming the Energy Conservation Service Team, which was 
officially launched in 2016.  The volunteer team comprises 
of experts in energy conservation, water conservation, air 
conditioning,  lighting  and  fire  prevention,  and  focuses 
on  prioritizing  the  disadvantaged,  energy  conservation 
and  safety,  feedback  and  improvement.  Based  on  these 
positions, the volunteer team provides organizations for 
disadvantaged groups with energy and safety diagnostics, 
and funding for immediate improvement projects.
Charity services provided by clubs and the Energy 

Conservation Service Team in 2018:

Clubs

Services

Candlelight 
Club

Charity  bazaars  (Holiday  Bazaar,    Rebirth  Bazaar 
and Concert, St. Joseph Social Welfare Foundation, 
Eden Social Welfare Foundation)

Ukelele Club

Fundraisers 
Welfare Foundation, 823 Jianan Flood Fundraiser)

(World  Vision,  St.  Joseph  Social 

Organization  events  (Miracle  Home,  Huashan 
Social Welfare Foundation Youth Dreamer Project) 

Teaching  (Nan-he  Elementary  School,  Fu-sing 
Elementary  School  and  Xin-xing  Elementary 
School 
in  Hsinchu  County,  Hsinchu  County 
Association for the Visually Impaired)

Free  performances 
(Hsinchu  Where!  Youth 
Services  Thanksgiving  Dinner,    Hsinchu  Veteran 
Homes, Hsinchu Chien-Kung Community, Rebirth 
Concert  at  16th  Children's  Park,  Erlin  Town  and 
Villages Charity Market, Chang Thai Home for the 
Disabled in Xinhua, Taiwan)

UMC Drum 
Club

Charity  performances  (Catholic  Social  Service 
Center fair, UMC Family Day)

Taichi Club

Huakuang Social Welfare Foundation- Huaguang 
Outreach, UMC Charity fundraising event

Ai-Heng Training Center for Mental Retardation

Energy 
Conservation 
Service Team

UMC Social Charity Units

T he  UMC  S c ience  and  Cul t ure  Found at ion  and  the 
UMC  LOHAS  Education  Foundation  are  two  major  UMC 
foundations. The series of social participation events by the 
Spreading the Seeds of Hope Project, which started out as 
education assistance for the disadvantaged, the UMC Love 
Storyteller Club for life education and the Voice of IC Teacher 
Hung Lan for parent education, consistently convey love and 
hope, bringing warmth to every needed corner. In addition 
to the two major foundations, UMC is the only electronics 
corporation  in  Taiwan  to  establish  an  independent  fire 
brigade  to  assist  with  disaster  relief  in  the  Science  Park 
and surrounding communities, and further fire prevention 
education by promoting fire safety in elementary schools. 

The various integral social participations are key forces in 
UMC social citizenship and outreach to the disadvantaged. 
The combination of UMC's internal resources allows UMC 
employees  to  contribute  wholeheartedly  to  society  and 
create  a  safer  and  warmer  society  through  their  caring 
conviction and social outreach.

2018 Outcome for Spreading the Seeds of Hope-Educational 
Assistance  for  Children  from  Disadvantaged  Families 
Project

In view of the huge gap in Taiwan's educational resources, 
UMC began implementing the  Spreading the Seeds of Hope 
- Educational Assistance for Children from Disadvantaged 
Families  Project  in 2005.  Through  corporate  strength, 
UMC  strives  to  improve  education  for  children  f rom 
disadvantaged families by providing them with afterschool 
tutoring, and fulfilling the "spreading hope" stage of the 
project.
In 2018, UMC continued to invest in the Seeds of Hope to 
help disadvantaged school children, and is committed to 
cultivating four key areas, namely life education, reading, 
environmental  protection  and  green  energy,  and  basic 
technology talents. Based on these spiritual, educational, 
environmental  and  basic  technology  dimensions,  a  new 
series of cultivation activities were implemented.

Strengthening educational foundation--  "Let Hope Sprout 
- Cultivate New Energy for the Future"

In 2010, UMC launched five key programs around the theme 
"Let Hope Sprout - Cultivate New Energy for the Future." The 
program is summarized below:

I. Spreading the Seeds of Hope—Educational Assistance for 
Children from Disadvantaged Families

T he  UMC  Science  and  Culture  Foundation  continues 
to  sponsor  the  tutoring  costs  for  school  children,  and 
provides  comprehensive  education  through  reading  and 
character  education  activities  by  volunteers.  It  is  hoped 
that with the launch of the program, tutoring centers can 
be established in Hsinchu Science Park and Tainan Science 
Park to provide long-term educational assistance to children 
from disadvantaged families. In 2010, key tasks in Stage 1 
of the Spreading the Seeds of Hope-Educational Assistance 
for  Children  from  Disadvantaged  Families  Project  were 
extended. In addition, long-term outreach such as reading 

155

Social ResponsibilityAbout Social Charity (Continue)

and character education helped cultivate positive values and 
a learning attitude in children from disadvantaged families. 
To  further  incorporate  the  strength  of  UMC  employees 
and  their  families  into  the  program  for  helping  children 
from disadvantaged families, the UMC volunteer tutoring 
team formed in 2005 was integrated with the UMC Science 
and Culture Foundation and the UMC Candlelight Club. In 
addition to collaborating on activities such as collecting 
gift donations for Christmas and other holidays, camps and 
visitations are also organized at various times each year 
where  volunteer  teams  comprising  UMC  employees  and 
their  families  interact  with  children  from  the  Spreading 
the Seeds of Hope Tutoring Program. It is hoped that more 
passionate like-minded educators and companies can be 
recruited into the program. Moreover, the Company hopes 
that by giving long-term and sustained attention, it can 
inspire human care and love so that children with limited 
educational resources can also access educational resources 
through professional tutoring, learn and grow confidently 
and happily like other children. Furthermore, it is hoped 
that the program can sprout, grow and thrive in even more 
places.

The outcome of UMC's Seeds of Hope long-term projects are 
as follow: 
1. Through close collaboration between academic counseling  
  and  families/schools,  children  from  disadvantaged  
  families regained confidence and growth in their learning.
2. Volunteer outreach helped prevent deviant behaviors in  
  children by allowing them to feel understood and cared 
  for,  and  helped  them  begin  to  break  out  of  poverty  
  through the power of education.
3. In  2018,  120  children  received  a  total  of 750   hours  of  
  tutoring.
4. Through  sponsoring  the  Nantou  Karate  Association,  
  disadvantaged students gained confidence and discovered  
  their strength through karate training.

II. Promoting National Reading Culture Through   Me 2 We 
Reading Club

To promote the National Reading Culture, UMC employees 
formed  the  Me 2  We  Reading  Club  to  not  only  share  the 
joy of reading within the Company, but also to train UMC 
employees for volunteer storytelling. The storytelling skills 
not  only  allow  employees  to  experience  the  pleasure  of 
storytelling, but also enhance the quality of their reading 
time with their children.
In addition to sharing reading with their colleagues and 
children,  UMC  employees  went  beyond  their  personal 
scope and participated in the Spreading the Seeds of Hope 
Tutoring  Program  to  promote  reading  in  remote  rural 
elementary schools.

156

III.  Promoting  Life  Education  T hrough  Life  Education 
Volunteer Club

The Life Education Volunteer Club recruits members from 
UMC's employees and their families to help disadvantaged 
youths  avoid  delinquency  and  discover  their  personal 
strengths. After receiving former training and certification, 
the  volunteers  visit    indigenous  students  and  marginal 
youths in Hsinchu and Nantou to help them understand the 
true meaning of living and personal growth.

In  addition,  the  UMC  Love  Storyteller  Club  was  formed, 
where  volunteers  worked  in  teams  to    choreograph, 
rehearse, construct props and costumes and perform. In 
addition to public performances in the 88 Flood disaster 
areas, the club was also invited by the Ministry of Justice to 
perform in Cheng Jheng High School so that given limited 
educational resources, those in remote rural areas and those 
on probation can still enjoy a rich spiritual feast. Through 
these experiences, UMC volunteers were also inspired to 
reflect on their own lives and cherish their blessings.

Summary of achievements in 2018:

Key Items

Outcome

Sponsored  the  Whatever 
Makes  Sense  for  Voice  of  IC 
Teacher Hung Lan program

A  total  of  52  episodes  were 
broadcasted in 2018.

Candlelight Club-Community 
outreach  and 
fundraising 
bazaar

A  total  of  19  bazaars,  totaling 
6,370  participants.  319  volunteers 
participated, totaling 1,787 hours.

Ukelele 
performance and teaching

Club-Volunteer 

A  total  of  11  sessions,  totaling 
2,807  participants.  93  volunteers 
participated, totaling 473.5 hours.

I V.   E c o   G r e e n   E n e r g y   P r o g r a m s     f o r   P r o m o t i n g 
Environmental  Education  and  Green  Energy  Technology 
Talent Cultivation

In  v iew  of  the  grow ing  problem  of  global  war ming, 
environmental  issues  have  become  a  responsibility  for 
everyone.  In  addition  to  its  commitment  to  establishing 
a  low-carbon  supply  chain  and  green  energy  industry, 
UMC  is  passionate  about  suppor ting  env ironmental 
events and promoting environmental education. Through 
var ious  env ironmental  programs,  eco  concepts  are  
further promoted to students, friends and families so that 
environmental protection becomes a  responsibility and life  
standard for everyone.

V. Semiconductor Programs for Cultivating Taiwan's High-
Tech Talents

With the mission of cultivating Taiwan's high-tech talents, 
UMC  not  only  invests  in  developing  and  improving  the 
company's talents, but also in cultivating seed talent for 
Taiwan's semiconductor technology through early contact. 
The semiconductor process practicum courses in National 

United Microelectronics Corporation  |  Annual Report 2018About Social Charity (Continue)

Cheng  Kung  University,  National  Central  University  and 
Chung Yuan Christian University are taught by experts from 
UMC for early cultivation of semiconductor seed talent at 
the  university  stage  so  that  young  students  can  acquire 
deeper semiconductor knowledge and skills in their studies. 
Furthermore, they can better dovetail into their subsequent 
workplace development and actively integrate into their 
career,  thereby  achieving  talent  cultivation  for  Taiwan's 
semiconductor technology.
In  addition,  through  the  National  Science  Council,    UMC 
collaborates  with  National  Taiwan  University,  National 
Tsing  Hua  University,  National  Chiao  Tung  University, 
National Cheng Kung University and  National Chung Cheng 
University  on  advanced  technology  R&D  and  projects  to 
achieve the most effective industry-university cooperation 
for integrating theory and practice.
Representative Outcome of Semiconductor Programs:
1.  Collaborated  with  National  Cheng  Kung  University, 
National  Central  University  and  Chung  Yuan  Christian 
University  to offer special industry-university courses on 
semiconductors. 
2. Collaborated  with  National  Cheng  Kung  University, 
National  Tsing  Hua  University,  National  Chung  Cheng 
Uni ver si t y  and  Nat ional  C hiao  Tung  Uni ver si t y  on 
innovations and R&D projects. The research scope includes 
advanced integrated circuit materials, micro-sensors and 
actuators, core embedded sensing processing components, 
and continuing patents.

Summary of key implementation outcomes in 2018:

Key Items

Outcome

Industry-
University

National Central 
University,  
Chung Yuan 
Christian 
University

Nano 
Generation 
course at 
National Cheng 
Kung University

Campus 
Cultivation

Domestic 
and Overseas 
Summer 
Internship

Offered semiconductor processing 
practicum  courses  in  2018.  About 
178 students enrolled.

Offered an introductory course 
on    Semiconductor  Processing 
in  the  Nano  Generation  at 
National Cheng Kung University 
in  2018.  About  230  students 
enrolled.

specific  number 
Provide  a 
internship  opportunities 
of 
each 
In 
summer  vacation. 
2018,  a  total  of  21  interns  were 
recruited. 

Key Items

Outcome

Campus 
Cultivation

Equipment 
Intern

Enterprise 
Visitations

Campus 
Ambassador 
for disabled 
students

Technology, 

Collaborated  with  National 
Taiwan  University  of  Science 
and 
National 
Taipei  University  of  Technology, 
Chung  Hua  University,  Southern 
Taiwan  University  of  Science 
and  Technology,  National  Chin-
Yi  University  of  Technology, 
National  United  University, 
Da-Yeh  University,  National 
Kaohsiung  University  of  Science 
and  Technology  and  National 
Formosa  University  to  provide 
student internship opportunities 
at  UMC.  In    2018,  a  total  of  44 
interns were accepted. 

Provide  enterprise  visitation 
opportunity for schools. In 2018, 
the  Company  received  a    total 
of  1,347  visitors  from  National 
Cheng  Kung  University,  National 
Kaohsiung  University  of  Science 
and Technology, National Central 
University, Chung Yuan Christian 
University,  National  Tsing  Hua 
University, National Chiao Tung 
University and National Taiwan 
Normal University.

Employed  students  who  are 
disabled 
for  work  study. 
Strengthened  campus  talent  
recruitment and encouraged 
disadvantaged 
students 
to  actively  learn.  Since  the 
program  began  in  2013,  a  total 
of  106  students  with  physical 
disabilities  were  provided  with 
work  study  opportunities,  and 
in  2018,  19  students  were  still 
employed.

157

Social ResponsibilityAbout Social Charity (Continue)

Key Items

Outcome

UMC Social Participation

Campus 
relationship 
development

National Cheng 
Kung University 
Career Advisor 
Program

PTP Prospective 
Talent Program

Advanced 
Intelligent Elite 
Development 
(AIED)

158

including 
career 

  a  series  of  
Helped  arranged 
cultivation 
image 
brand 
book 
activities, 
discussion, 
sharing, 
internship  cooperation,  and 
for  semiconductor 
exhibits 
display.  In  2018,  30  sessions 
of  book  discussion  were  held, 
with a total of more than 3,500 
participants.

students 
future  pulse 

In  its  collaboration  with  key 
schools  in  recent  years,  UMC 
offers  career  seminars  and 
career  coaching  programs  to 
understand  
help 
from  the 
the 
perspective 
industrial 
of 
professionals.  Moreover,  based 
on  student  traits  and  learning, 
the  career  coaches  provide 
career  plan  suggestions 
to 
help students find career paths 
that  are  appropriate  for  them. 
With  National  Cheng  Kung 
University as an example, UMC 
has  been  providing  career 
coaching 
for  7  years,  with 
more  than  200  students  from 
the  university  participating 
each  year,  and  the  program 
is  still  being  implemented.  In 
addition,  students  are  assisted 
with  resume  writing  to  help 
them  discover  their  strengths, 
sell  themselves  in  their  resume 
and  capture  the  attention  of 
companies and executives.

early 

targeted 

contac t 

T he 
and  
agreement  with  prospective 
talents  on  campus  enhances 
interaction 
connection  and 
talents.  The 
with 
  UMC  PTP  also 
broadening 
expands 
and 
influence  of  UMC.  Since  UMC 
began  recruiting  outstanding 
talent  in  2013,  4,140  students 
have been recruited and 1,934 
prospects  are still in school.

image 

the 

the 

higher 

acquire 

To 
quality 
employees, campus relationships 
and 
connection  and 
interaction  with  outstanding 
talents 
equipment 
are 
  established. 
systematically 
Recruitment 
for  outstanding 
talent  began  in  2018,  and  1,149 
students  have  attended 
the 
campus briefings

Committed to the core philosophy of "people-orientation 
and co-prosperity with society", UMC fulfills its corporate 
social  responsibility  according  to  the  concept  of  LOHAS 
(Lifestyle of Health and Sustainability). UMC believes that the 
success of a company not only requires personal diligence, 
but also the support of a harmonious society for it to flourish 
and  develop  robustly.  Therefore,  since  its  establishment, 
UMC  has  declared  itself  a  public  instrument  in  its  long-
term management policy, and is committed to giving back 
to society.  Therefore, in addition to their commitment to 
the Company's business growth, the "Happy Employees" of 
UMC are also enthusiastic about social charity. To encourage 
employee  participation  in  charity,  UMC  provides Charity 
Leave for employees to participate in volunteer services.

UMC has always been wholehearted in social charity, and 
continues  to  donate  money  to  cultural,  and  educational 
and  academic  units.  Recipients  include  groups  such  as 
UMC  Science  and  Culture  Foundation,  UMC  Operation 
Management Thesis Award, National Cheng Kung University 
academic  funding  for  Nano-IC  Engineering,  temporary 
transfer of feedback fund for management talent, Taiwan 
Semiconduc tor  Indust r y  A ssoc iat ion  Env ironmental 
Protection  Fund,  Global  Views  Educational  Foundation 
Green  Award  prizes,  VLSI  Design/CAD  Symposium  and 
Taiwan  Semiconductor  Industry  Association,  as  well  as 
charity events. 
In  the  days  to  come,  UMC  will  remain  dedicated  to  its 
philosophy  of  receiving  from  society  and  giving  back  to 
society by supporting social charity.

Summary of donations in 2018:

Social Participation

UMC

Donated to UMC Science and Culture 
Foundation
Donated to the 8th UMC Operation 
Management Thesis Award

Donated to the National Cheng Kung 
University academic funding for  Nano-
IC Engineering

Donated to feedback fund for temporary 
transfer of management talent

Donated to Taiwan Semiconductor 
Industry Association Environmental 
Protection Fund

Donated to the Global Views 
Educational Foundation Green Award 
prizes

Donated to VLSI Design/CAD 
Symposium

Donated to the Taiwan Semiconductor 
Industry Association

Total

In NTD

Amount

10,000,000

2,916,614 

3,000,000 

621,729 

531,335 

650,000 

100,000

50,000

17,869,678

United Microelectronics Corporation  |  Annual Report 2018About Social Charity (Continue)

Environmental Protection, Safety and Health Management 
Instructions

In terms of environmental protection, safety and health, 
UMC has set the objective of zero pollution and zero incident 
to  become  an  enterprise  of  sustainable  development;  in 
addition to being in compliance with and better than the 
requirements of environmental safety and health laws and 
regulations, the company utilizes advanced environmental 
protection,  safety  and  health,  risk  and  disaster  rescue 
technologies to actively enhance environmental protection 
and  safety  aspects  based  on  a  forward-looking  vision. 
UMC  has  also  continued  with  environmental  safety  and 
health education and advocacy for all its employees and 
encouraged  active  participation  in  related  activities  to 
strengthen the environmental safety and health belief and 
habits of all employees through subtle influence.

ESH Management System

UMC’s ESH management system is established according 
to ISO 14001 and OHSAS 18001 standards. It is intended to 
integrate daily management with total qualify management 
(TQM)  activities  such  that  the  ESH  management  plan 
can  be  integrated  with  actual  fab  operation  in  order  to 
achieve the effectiveness of implementation. As for various 

ESH  risks  of  company  operation,  the  possible  impacts  of 
various  activities  (from  the  use  of  raw  materials  to  the 
generation of waste) on the environment and all company 
employees will be evaluated via a systematic approach. As 
for the items which could result in major environmental 
impact,  the  management  and  reduction  will  be  applied 
via the assessment/replacement/reduction approach for 
raw materials, control and reduction of process pollution 
source, effective treatment of end-of-the-pipe pollution, 
and residual by-product reclamation. In terms of safety and 
health,  UMC  will  start  with  management  of  equipment, 
chemical,  and  operation  safety  in  order  to  maintain  the 
safety and health of all employees. 
In order to achieve the objective of sustainable development, 
the company has set clean production and zero incident as 
the promotion direction of environmental protection and 
safety and health. Every year UMC will set the objectives and 
targets of the ESH management system in coordination with 
the company’s operation direction, and each fab will launch 
various  plans  for  reducing  environmental  impact  and 
strengthening safety and health in order to continuously 
improve companyperformance of environmental protection 
and safety and health management.

Achievement status of UMC’s Important ESH Objectives/Targets in 2018:

Objective

Target

Achievement Status

Eliminating major accidents and 
continuously promoting self-
management of safety and care and 
individual occupational safety

Promoting green management Green 
2020 project to reduce the company’s 
impact on the environment

1.  Zero  Major  /  Serious  occupational  safety 
incident

One occupational safety incident  throughout 
the year

2. Fewer than 13 minor (or above) accidents

A total of 10 incidents throughout the year

The milestone of 2018 was achieved

To reduce water, electricity, and waste by 10% 
over the base year by 2020. 
1. Water Usage: 10% reduction (Intensity)
2. Electricity Usage: 10% reduction (Intensity)
3. Waste Generation: 10% reduction (Intensity)

Note: the base year is 2015

159

Social ResponsibilityEnvironmental Protection, Safety and Health Management Instructions (Continue)

Environmental Protection

Greenhouse Gas Reduction and Management

Facing the issues of climate change and worsening global 
warming,  UMC  has  already  prepared  and  implemented 
responsive strategies. It set up the “Fluorinated Greenhouse 
Gases Reduction Work Group” in 1999 to be dedicated to 
the  research  and  promotion  of  reduction  of  fluorinated 
greenhouse gases. It formulated the “UMC Climate Change 
Policy”  in 2010  as  the  highest  guiding  principle  of  the 
company in response to climate change. 
The  major  reduction  plans  with  respect  to  f luorinated 
greenhouse gases to be promoted include:

•	 Measuring  the  utilization  rates  of  process  tools  using  
f luorinated  greenhouse  gas  and  the  destruction  and  
  removal efficiency of its emissions control technologies to  
  be  fully  aware  of  the  machine  performance  and  to  

improve those with poor performance. 

•	 Implementing survey and assessment of the consumption  
  amount  for  fluorinated  greenhouse  gases  in  order  to  
  understand the greenhouse gas emission volume of each  
  process tool.
•	 Carrying  out  a  research  project  on  alternative  gas  to  
  reduce the consumption of process gasses that contribute  
  t o   g l o b a l   w a r m i n g   p o t e n t i a l   ( G W P )   v i a   s o u r c e  

improvement. 

•	 As  for  the  new  fluorinated  greenhouse  gas  emissions  
  control  technologies,  the  selection,  assessment,  and  
investment  have  been  applied  for  installation  of  high  
  performance  f luorinated  greenhouse  gas  abatement  
  systems in order to reduce the emission of fluorinated  
  greenhouse gases year by year.

In 2007 and 2011, UMC led the industry in completing the 
2-Phase fluorinated greenhouse gases replacement plan 
(replacing C2F6 with C3F8 and replacing C3F8 with C4F8) for 
the  entire  company,  thus  greatly  reducing  the  emission 
of  greenhouse  gas  and  its  impact  on  global  warming. 
After years of effort, UMC has achieved the objectives of 
the “Carbon Reduction 333” project and the “369+ Energy 
and Resources Productivity Enhancement Project” in 2012 
and 2015, respectively. The company has also formulated 
the “Green 2020” project to commit to goals of 10% water 
saving, 10% power saving, and 10% waste reduction in the 
future based on more stringent self-requirement standards 
and more active spontaneous actions.

In  addit ion,  UMC  ha s  conduc ted  the  pro cessing  o f 
greenhouse  gas  infor mation  w ith  public  disclosure 
by  adhering  to  the  principles  of  initiative,  openness, 
transparenc y,  and  quality  adherence.  T he  results  of 
greenhouse  gas  emission  inventories  of  the  company  in 
Taiwan from 2000 to 2017 have all passed ISO 14064-1 third 
party verification. From now on, the annual inventory and 
verification of emission and reduction will be conducted 
regularly  to  be  fully  aware  of  the  current  status  of  the 

160

use of greenhouse gas and to verify the effectiveness of 
reduction. The emission and reduction information from 
2018  is  planned  for  disclosure  after  completion  of  third 
party  verification  in  June 2019.  In  the  annual  ranking 
announced by the International CDP organization in 2018, 
UMC got a score of Leadership A-, indicating that UMC has 
been  positively  recognized  by  international  investment 
organizations in terms of information disclosure related to 
climate change and sustainability. 

Energy Saving Management

The  use  of  energy  will  consume  the  Earth’s  resources, 
and  it  will  also generate  carbon dioxide  resulting in the 
greenhouse  effect.  To  reduce  the  environmental  impact 
of the greenhouse effect, UMC has set annual goals and 
plans to  reduce  greenhouse gas emission. In addition to 
constant  evaluation  and  introduction  of  various  energy 
saving technologies, UMC will carry out energy saving plans 
for  relevant  facilities  in  order  to  directly  and  effectively 
reduce  the  company’s  energy  consumption.  In  addition, 
UMC has promoted the implementation of energy saving 
management plans for offices and public areas together 
with advocacy activities and educational training in order 
to enhance the concepts and habits of all employees with 
regard to energy saving and greenhouse gas reduction.

Water Resources Saving and Management

For more effective utilization of limited water resources, 
UMC  formulated  its  “Water  Management  Policy  and 
Commitment” in 2015. From the perspectives of introduction 
of water resources risk management system, development 
and  application  of  diversified  water  resources,  supply 
chain cooperation, and strengthening of water resources 
education,  UMC  will  continue  to  promote  various  water 
saving  measures, actively  enhance water efficiency, and 
introduce new water saving technology in order to promote 
the emphasis and saving of water resources. According to 
the fab construction schedule, the fab water recycling rate 
and process water recycling rate of all fab are superior to 
the standard set by Science Park Bureau. The water saving 
measures  for  general  water  consumption  include  the 
adoption of water-efficient tap, rainwater interception for 
landscape watering, and saving of water consumption by 
air conditioner and kitchen.

Waste Management and Resource Recycling Management

UMC’s waste management is established on an economic 
and effective waste management mechanism to achieve the 
objectives of safe, healthy and harmless resource utilization. 
The strategies include total amount reduction, recycling 
and reuse of resources, and waste management. UMC has 
always  adhered  to  the  belief  of  green  production  while 

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
Environmental Protection, Safety and Health Management Instructions (Continue)

promoting waste and resource recycling management. On 
one hand it has reduced the generation of waste through 
process improvement, raw material reduction and source 
management; on the other hand it has actively promoted 
waste recycling and reuse to replace the existing end-of-the-
pipe treatment mode and to convert garbage into useful 
resources. In addition to reducing the resources and cost 
of waste treatment, the company hopes to help alleviate 
the increasingly serious environmental problem. Finally, in 
terms of waste management, manpower will be dedicated 
to regular auditing of the company’s waste disposal service 
provider  and  tight  control  of  waste  destination  while 
selecting the optimal waste disposal approach.

Pollution Emission and Control

End-of-the-pipe  treatment  has  been  regarded  as  the 
last  resort  in  recent  years.  In  terms  of  pollution  control, 
in  addition  to  development  of  required  technologies  in 
response  to  new  env ironmental  protection  laws  and 
regulations  or  standards,  UMC  has  also  considered  the 
tolerance  and  interaction  of  the  overall  environment 
to  apply  self-control  and  constantly  introducing  high 
per for mance  pollution  prevention  technologies  and 
equipment.  All  pollution  prevention  equipment  are 
operated and maintained by professional work teams, and 
the operation status of all pollution prevention equipment 
is  monitored  by  a  central  system  with  shifts  covering 
24-hours to ensure emission quality. 

Other Environmental Management Plans

Over  the  years,  UMC  has  continued  with  its  ef fort  in 
environmental protection by constantly introducing various 
environmental management tools such as environmental 
management system, product life cycle assessment,  and 
environmental  accounting.  The  hope  is  to  achieve  the 
substantial objectives of environmental improvement and 
reduction of environmental impact via the environmental 
management approach, and spontaenous and continuous 
improvement.

UMC  was  aware  of  the  green  wave  coming  f rom  the 
international environmental protection trend and customer 
demand as early as 2003, and it began the promotion of 
the green supply chain management system and became a 
member of SONY Green Partner in the same year. To date, the 
company has continuously passed re-verification, indicating 
UMC’s  hazardous  substance  management  effectiveness 
has  been  recognized  by  customers.  In 2006 ,  UMC  was 
the  first  among  global  semiconductor  manufacturers  to 
complete the hazardous substance process management 
(HSPM) system audit and to be granted the recommended 
registration. UMC has also become the first semiconductor 
manufacturer in the world to have all fabs granted with the 
QC-080000 IECQ HSPM certificate.

In  addition,  for  laying  the  foundation  of  green  product, 
process  and  design,  UMC  has  ac tively  implemented 
comprehensive  carbon/water  management  plans.  In 
September  2009,  it  completed  the  world’s  first  “Product 
Carbon  Footpr int ”  and  EPD  (Env ironmental  P roduc t 
Declaration)  verification  of  IC  wafer,  and  obtained  the 
independent verification statement issued by a third party 
to  become  the  first  semiconductor  company  in  Taiwan 
to  independently  and  completely  calculate  and  verify 
the product carbon emission information. In 2010, it was 
the first in the industry to complete the water footprint 
verification of 8-inch and 12-inch fabs. With the important 
operational belief of symbiosis of sustainable environment, 
UMC  has  provided  the  comprehensive  green  production 
system plans to help its customers produce environmental 
friendly, high quality products. The completion of carbon 
footprint,  water  footprint,  and  environmental  product 
declaration indicates that UMC has tracked and monitored 
the information of various environmental impacts during 
the  IC  wafer  manufacturing  process  through  rigorous 
systems  with  international  cer tification,  and  helped 
c ustomers  completely  constr uc t  the  env ironmental 
information of green product and supply chain. This also 
specifically  demonstrates  UMC’s  active  undertaking  of 
social responsibility. 
In  the  future,  UMC  will  more  aggressively  promote  the 
green  supply  chain  project  based  on  carbon  footprint, 
water footprint, and Environmental Product Declaration 
to  help  customers  produce  green  products  with  lower 
environmental  impact  and  to  enhance  the  sustainable 
competitiveness of the entire supply chain. 

Safety and Health
Promoting the Culture of Individual Occupational Safety

T he  analysis  of  the  causes  of  domest ic  and  foreign 
accidents has revealed that 90% of them are due to “Human 
Factors”, such that the safety  of  personal behavior has a 
more profound impact on the safety of the organization. 
Therefore, UMC is dedicated to promoting the safety and 
health culture of “Individual Occupational Safety”. Starting 
from  “Pay  attention  to  your  own  safety  and  care  about 
other’s  safety”  and  “Occupational  safety  is  everyone’s 
responsibility” and under the declaration and leadership 
of the chairman, UMC has introduced the safety thinking 
mode,  and  established  complete  communication  and 
proposal  channels  so  that  employees  can  express  their 
opinions and receive professional response and assistance, 
cultivate work attitude and habit of "Put safety and health 
first", implement safety and health protection work, and 
continuously enhance the quality of the work environment. 
It is expected that UMC can become the global role model of 
safety and health.

161

Social ResponsibilityEnvironmental Protection, Safety and Health Management Instructions (Continue)

Safety and Health Management

•	 Management of Hazardous Chemicals

By law, all UMC fabs have formulated labor safety and health 
management plans every year, and the contents include:

•	 ESH Risk Assessment

Ever  since  the  founding  of  company,  UMC  has  been 
introducing  various  methods  for  risk  assessment  of  the 
company’s  processes,  equipment,  and  chemicals.  UMC 
has also tried to reduce the occurrence of accidents and 
environmental pollution caused by process and equipment 
though engineering improvement and process replacement.
As for the safety and health risk, UMC has divided them into 
preliminary review, change review, and regular review. As 
for the execution of preliminary review, in addition to using 
a simple risk matrix for selecting operating activities with 
higher risks to carry out improvement and management, 
UMC has also conducted the review and risk reduction of 
hazardous workplace  with respect to the items listed in the 
Hazardous Workplace Review and Inspection Rules. 
As for the environmental and safety and health risks caused 
by change of equipment, and introduction of new chemicals 
and new machines, the assessment should be carried out 
according  to  the  rules  of  change  review.  In  addition  to 
managing these according to domestic laws and regulations, 
the  specification  requirements  of  safety  facilities  and 
environmental  protection  of  equipment  and  chemicals 
should be specified according to international standards, so 
that the ESH impacts can be minimized at the beginning of 
such change.
In addition to the aforementioned preliminary review and 
change review, the ESH risk assessment will be conducted 
again for all operations ever three years, and the operation 
items with increased risk levels must be examined to see if 
there is a need for improvement.

•	 Management of Machine, Equipment, or Appliance

In addition to being in compliance with domestic standards, 
such  as  CNS  (Chinese  National  Standards)  and  machine 
equipment  appliance  safety  standard,  the  machines 
used  by  UMC  must  come  with  the  reports  (provided  by 
the  equipment  supplier)  meeting  the  semiconductor 
m a n u f a c t u r i n g   e q u i p m e n t   s a f e t y ,   h e a l t h ,   a n d 
environmental protection standard (SEMI S2) formulated 
by international semiconductor equipment and material 
organization. If there is any non-conforming item, it must 
be improved before entry into the fab. After fab entry, the 
water, electrical, gas, and chemical use safety inspection 
must be conducted according to different stages of machine 
installation before these machines can be used. 
During machine operation and maintenance, employees 
should  receive  the  educational  training  of  the  machine 
operation and be in compliance with the operation rule. 
Unless  there  is  approved  application  and  adoption  of 
alternative safety measures, it is prohibited to disable  the 
safety interlock device of the machine in order to avoid any 
significant occupational incident. 

162

UMC  has  a  strict  ESH  review  mechanism  for  fab  entry 
of  chemicals.  According  to  the  C hemical  Substance 
Mana gement  P ro ce dure  o f  the  company,  chemic al 
substances with high risks must be in compliance with the 
regulation, and the relevant protection must be confirmed 
before they can be used. 
As  for  the  chemicals  in  use,  in  addition  to  labeling    and 
training  by  law,  the  exposure  risk  assessment  method 
should  be  introduced  and  the  chemical  risk  level  and 
classification management measures should be established 
in order to reduce the exposure hazard risks of workers.
The working  environment monitoring should be conducted 
every six months according to the Rules for Implementation 
of Working Environment Monitoring. The effective sampling 
strategy should be formulated, and the monitoring results 
should be verified by statistical analysis tool to ensure the 
exposure situation of every similar exposure group and to 
protect the health of employees. 
There  are toxic  gas detectors  distributed  in the working  
environment in the fab for early control of trace gas leak 
with  timely  warning  and  automatic  broadcast  to  notify 
employees to evacuate to designated safe areas.

•	 Procurement Management and Contractor Management
UMC has specified the safety and health rule of procurement 
in the operation regulation of the company’s procurement 
department. The raw materials suppliers will be requested 
to  conduct  labeling,  production,  and  transpor tation 
according to domestic laws and regulations, and there will 
be regular audit of suppliers to ensure that there will not be 
any safety or health or environmental protection accident 
that would cause abnormal supply.
As for the contractor management, the active and effective 
management  approach  should  be  adopted  to  prevent 
contractors  from  accidents.  In  addition  to  carrying  out 
qualified contractor evaluation and formulating “Notices of 
ESH Contractor” to be signed by the person in charge of the 
contractor, all workers entering the fab should receive UMC’s 
“Contractor  ESH  Educational  Training”.  In  addition,  the 
“Contractor Work Place Hazard Notification and Agreement 
Meeting” should be completed for all contractors entering 
the fab. A complete online application system should be 
established for effective control of construction application 
and  the  management  before,  dur ing,  and  af ter  the 
construction. In addition to requesting the contractor to 
assign onsite supervisory personnel, a safety agreement 
meeting should be convened every day before construction. 
During construction period, occupational safety personnel 
should conduct frequent audits in addition to the onsite 
supervision  by  the  responsible  department  in  order  to 
ensure that all operations are in compliance with safety 
regulations.
•	 Formulation of Safety and Health Operational Standard

UMC  has  formulated  the  safety  and  health  protection 

United Microelectronics Corporation  |  Annual Report 2018Environmental Protection, Safety and Health Management Instructions (Continue)

standard which is applicable to the entire company, and 
each operational department should formulate operational 
standards for different operations according to company 
regulat ion.  T he  content  should  include:  op erat ing 
procedure,  operation  inspection  and  regular  inspection 
items,  protective  equipment  to  be  used,  and  operation 
frequency.
In  addition  to  being  in  compliance  with  the  operational 
standard, all employees should pay attention to the unsafe 
behaviors of others and offer reminders at the work place 
according to the spirit of individual occupational safety in 
order to achieve the optimal effect of personal discipline 
control.
•	 Regular  Inspection,  Key  Points  Inspection,  Operation  

Inspection, and Onsite Walkthrough

Regular  and  key  points  inspections  should  be  arranged 
for various facilities and operations according to laws and 
regulations, and operation inspections should be conducted 
regularly by employees in charge of facilities and operations.
In addition to the matters specified by laws and regulations, 
supervisors at all levels and occupational safety personnel 
should arrange regular and irregular onsite walkthroughs 
and audits. The deficiencies of audits should be tracked by 
computer system, and these cases can only be closed after 
the improvement is completed. 

•	 Safety and Health Educational Training

By nature, UMC’s ESH educational trainings can be divided 
into three categories:
-Company-wide safety and health educational training
-Fab-wide safety and health educational training arranged 
by each fab.
-ESH trainings formulated by each department according to 
the nature of each department
The  continuous  educational  training  and  advocacy  can 
develop  employees’  emergency  response  capability  and 
safety  concept,  strengthen  employees’  perception,  and 
reduce  the  occurrence  of  accidents  caused  by  unsafe 
conduct. UMC has included the emergency response, licenses 
required by laws and regulations, maintenance of the safety 
and health management system, safety protection of special 
operation, and construction supervision personnel in the 
annual training plan. In addition to the training courses in 
the plan, educational trainings should be arranged from 
time  to  time  with  respect  to  specific  incident  or  major 
deficiency if necessary. In 2018 there was a new course of 
“Safety mindset 4.0” of company’s BBS (Behavior - Based 
Safety) culture. A total of 2,063 courses were arranged in 
the entire year to train a total of 101,739 people. It contained 
e-learning courses and physical courses so that employees 
could  learn  about  safety  and  health  knowledge  without 
being limited by time and venue.

•	 Management of Personal Protective Equipment

UMC  provides  complete  personal  protective  equipment 

according to different natures of operations, which should 
be regularly  inspected  and replaced  by employees using 
such equipment. This item should be the key point during 
onsite walkthrough by supervisors and occupational safety 
personnel in order to remind employees to pay attention to 
the correct use of protective equipment and to wear them 
all the time.

•	 Health Examination, Health Management, and Health  
  Promotion Matters

UMC believes that employees are the most important asset 
of  an  enterprise.  Only  employees  that  are  healthy  both 
physically and mentally can provide highly efficient and 
high quality work performance. Therefore, over the years 
UMC  has  been  dedicated  to  creating  a  work  place  that 
can contribute to  physical, mental,  and spiritual  health. 
In  addition  to  helping  employees  with  comprehensive 
health management and health promotion, care has been 
extended  to  employees’  families,  hoping  to  achieve  the 
goals of work moral and work quality enhancement. 
•	 Collection, Sharing, and Utilization of Safety and Health  

Information

The collection and sharing of company safety and health 
information are conducted via diversified modes. Domestic 
and foreign safety and health regulations are collected and 
reviewed by the Division of Risk Management and Safety 
and Health, which will suggest to carry out the proposal 
within the company to be approved by the ESH Committee. 
The external major accidents and safety and health news 
will  be  advocated  to  employees  via  CSR  newsletter  or 
BBS within the company. The safety and health advocacy 
posters will be put on occupational safety bulletin boards 
in all fabs frequently. In addition, communication channels 
such as ESH mailbox and ESH proposal systems have been 
established  on  the  company’s  intranet  website  for  our 
employees to reflect opinions or problems related to safety 
and health management.

•	 Emergency Response Measures

In  order  to  allow  employees  to  be  equipped  with  the 
knowledge  and  skills  of  immediate  disaster  relief  upon 
occurrence of any accident, all employees must take basic 
fire-fighting,  safety  and  emergency  response  courses 
arranged  by  the  company  every  5  years.  These  courses 
cover fire safety, disaster response, and actual operation 
of fire distinguishers, and all employees are expected to 
be  equipped  with  such  skills.  In  addition,  an  emergency 
response  team  (ERT)  is  formed  in  ever y  fab,  and  the 
members of this team should receive various emergency 
response trainings and regular rehearsals with respect to 
various accidents in order to strength the disaster response 
skills  of  ERT  members  and  to  achieve  the  objective  of 
protection and control at the initial stage of disaster.

•	 Statistical Analysis of Occupational Incidents

As for occupational incidents  that take place at the work 

163

Social Responsibility 
 
Environmental Protection, Safety and Health Management Instructions (Continue)

place,  in  addition  to  regular  summary  and  report,  every 
accident  must  be  registered  in  the  accident  report  and 
investigation  system  to  be  tracked.  In  addition  to  the 
investigation  of  accident  causes  and  improvement  and 
prevention,  accident  prevention  should  be  included  as 
the  company’s  objective  and  target  of  safety  and  health 
management. Various activities must be promoted in order 
to achieve the accident reduction and safety enhancement.

•	 Safety  and  Health  Management  Record,  Performance 
Review, and Rewards

For facilitating the management, in addition to the written 
records, UMC has established multiple computer systems 
as  the  aid  for  safety  and  health  management,  such  as 
automatic  inspection  system,  ISO 14001  &  OHSAS 18001 
management  system,  accident  report  and  investigation 
system,  and  walk through  repor t  system.  In  addition 
to  facilitating  data  inquiry  by  employees,  the  tracking 
of  preventive  management  measures  should  also  be 
strengthened.
For  the  performance  of  safety  and  health  management, 
in  addition  to  management  review  meetings  regularly 
convened in each fab and for the entire company to review 
the  objectives  and  targets,  occupational  competitions 
will be arranged in each fab, and all active occupational 
management  indicators  should  b e  included  a s  the 
evaluation  items  for  individuals  and  departments.  The 
departments  with  outstanding  performances  should  be 
rewarded, and the selection of outstanding occupational 
safety  achievement  will  be  arranged  every  year  in  the 
company to encourage the active improvement of safety 
and health in the work environment and the exchange of 
safety and health improvement matters among different 
fabs.  T hese  will  also  contribute  to  the  promotion  of 
individual occupational safety and reduction of accidents. 

Granted Awards of Safety and Health and Environmental 
Protection

UMC has been devoted to the promotion of environmental 
protection  and  labor  safety  and  health.  In  addition  to 
being  dedicated  to  achieving  the  international  level  of 
risk control and environmental protection and safety and 
health  management  performance,  UMC’s  various  ESH 
management  behaviors  have  also  been  well  received  by 
competent authorities and among peers.

The awards granted to UMC in 2018 are as shown below:  

•	 “The Best Participation of Green Procurement for Enterprises" 
  by  the  Environmental  Protection Administration  of 
  Executive Yuan, R.O.C.
•	 “Enterprise  Environmental  Protection  Award”  by  the  
  Environmental Protection Administration of Executive  
  Yuan, R.O.C. (Fab 8E)
•	 “Outstanding Energy Saving Performance Award” by the  
  Bureau  of  Energy,  Ministry  of  Economic  Affairs,  R.O.C.  

(Fab 8E)

•	 “Watermark Award” by the Singapore's National Water  
  Agency (Fab 12i)
•	 “Award of Enterprise with Outstanding Waste Reduction  
  and Resources Circulation” by the Hsinchu Science Park  
  Bureau,  Ministr y  of  Science  and  Technology,  R.O.C.  

(Fab 8D)

•	 “Business with Outstanding Environmental Protection  
  Performance” by the Tainan Science Park Bureau, Ministry  
  of Science and Technology, R.O.C. (Fab 12A),( Fab 12A II)
•	 “Outstanding Occupational Safety and Health Unit” by  
  the Hsinchu Science Park Bureau, Ministry of Science and  
  Technology, R.O.C. (Fab 8A)

164

United Microelectronics Corporation  |  Annual Report 2018 
 
Special Disclosures

Issuance of Private Placement Securities 

166  Summary of Affiliated Enterprises 
178 
178  Acquisition or Disposal of UMC Shares by Subsidiaries
178  Other Necessary Supplements 
178  Disclosures  of  Events  Which  May  Have  a  Significant  
Influence  on  Stockholders’  Equity  or  Share  Price,  in  
Compliance with Item  3, Paragraph  2 in Article 36 of the  
Securities and Exchange Law of the R.O.C.

165

Special Disclosures 
 
 
Summary of Affiliated Enterprises
Affliated Organization Chart

United Microelectronics Corp.

UMC Group(USA)

100.00%

United 
Microelectronics 
(Europe)B.V.

100.00%

UMC Capital Corp.

100.00%

UMC Capital(USA) 100.00%

TLC Capital Co., Ltd.

100.00%

Soaring Capital Corp.

100.00%

Unitruth Advisor 
(Shanghai) Co., Ltd.

100.00%

Fortune Venture 
Capital Corp.

100.00%

Tera Energy 
Development Co., 
Ltd.

100.00%

Everrich Energy 
Investment (HK) 
Limited

100.00%

Everrich 
(Shandong) Energy 
Co., Ltd.

100.00%

UMC Group Japan

100.00%

UMC Korea Co., Ltd.

100.00%

Green Earth Limited

100.00%

United Microchip 
Corporation

100.00%

United 
Semiconductor 
(Xiamen) Co., Ltd.

50.73%

UMC Investment 
(Samoa)Limited

100.00%

Nexpower 
Technology Corp.

Wavetek 
Microelectronics 
Corporation

93.36%

78.47%

SocialNex Italia 1 
S.R.L.

100.00%

Wavetek 
Microelectronics 
Investment (Samoa) 
Limited

100.00%

Wavetek 
Microelectronics  
Corporation(USA)

100.00%

Best Elite 
International Limited

100%

Infoshine Technology 
Limited

100.00%

Oakwood Associates 
Limited

100.00%

Hejian Technology 
(Suzhou) Co., Ltd.

98.14%

UnitedDS 
Semiconductor 
(Shandong) Co., Ltd.

100.00%

United 
Semiconductor 
(Xiamen) Co., Ltd.

14.49%

Omni Global Limited

100.00%

Sino Paragon Limited

100.00%

100.00%

100.00%

United 
Microtechnology 
Corporation  
(New York)

United 
Microtechnology 
Corporation 
(California)

ECP Vita Pte. Ltd.

100.00%

UMC Technology 
Japan Co., Ltd.

100.00%

Note 1: UMC holds 47.75% of Nexpower Technology Corp.(Nexpower); Fortune Venture Capital Corp. holds 33.47% of Nexpower, and TLC Capital Co.,  

Ltd. holds 12.14% of Nexpower, and the comprehensive shareholding ratio is 93.36%.

Note 2: UMC  holds  77.74%  of  Wavetek  Microelectronics  Corporation  (Wavetek);  Fortune  Venture  Capital  Corp.  holds  0.73%  of  Wavetek,  and  the  

comprehensive shareholding ratio is 78.47%.

166

United Microelectronics Corporation  |  Annual Report 2018 
 
Summary of Affiliated Enterprises (Continue)

Basic Data of Affiliated Enterprises

Name of Corporation

Date of
Establishment

Address

UMC Group(USA)

1997.08.11

488 De Guigne Drive, Sunnyvale,  
CA 94085, USA

United Microelectronics 
(Europe)B.V.

1989.05.23

De Entree77, 1101BH,  
Amsterdam Zuidoost,  
The Netherlands

UMC Capital Corp.

2001.01.16

190 Elgin Avenue, George Town, Grand 
Cayman, Cayman Islands

UMC Group Japan

2013.02.08

UMC Korea Co., Ltd.

2013.04.12

TLC Capital Co., Ltd.

2005.10.14

Fortune Venture Capital Corp. 1993.09.21

15F Akihabara Centerplace Bldg.,  
1 Kanda Aioi-cho, Chiyoda-ku,  
Tokyo 101-0029, Japan

1117, Hanshin Intervally 24, 
322, Teheran-ro, Gangnam-gu, 
Seoul, Korea

5F, No.17, Lane 120, Neihu Road Section 1, 
Taipei, Taiwan 114, R.O.C.

5F, No.17, Lane 120, Neihu Road Section 1, 
Taipei, Taiwan 114, R.O.C.

Green Earth Limited

2009.09.09

UMC Investment(Samoa) 
Limited

2011.03.30

Vistra Corporate Services Centre, 
Ground Floor NPF Building, 
Beach Road, Apia Samoa

Vistra Corporate Services Centre, 
Ground Floor NPF Building, 
Beach Road, Apia Samoa

Nexpower Technology Corp.

2005.11.25

2, Houke S. Rd., Houli District, Taichung, 
Taiwan 42152, R.O.C

UMC Capital(USA)

2001.02.13

488 De Guigne Drive, Sunnyvale,  
CA 94085, USA

ECP Vita Pte. Ltd.

2012.05.10

Soaring Capital Corp.

2008.03.25

8 Marina View#09-05
Asia Square Tower 1
Singapore(018960)

Level 2, Lotemau Centre,  
Vaea Street, Apia, Samoa

 In NTD

Capital

Major Business /
Production Items

495,705,688

IC Sales

116,867,702

Marketing support 
activities

2,161,140,397

Investment holding

8,187,000

IC Sales

15,070,000

Marketing support 
activities

3,876,000,000

Venture capital

4,620,000,000

Consulting and 
planning for venture 
capital

29,988,444,000

Investment holding

43,519,120

Investment holding

711,986,480

Sales and 
manufacturing of 
solar power batteries

6,031,400

Investment holding

271,413,000

Insurance

27,351,000

Investment holding

Unitruth Advisor
(Shanghai) Co., Ltd.

2008.10.16

No.1468,Nanjing Road West,Suite 2908 
Shanghai,China

24,125,600

Investment holding 
and advisory

Tera Energy Development 
Co., Ltd.

2011.07.19

1F., No.1, Jinshan 8th St., Hsinchu Taiwan 
30080, R.O.C.

186,550,910

Energy technical 
services

Everrich Energy Investment 
(HK) Limited

2009.12.16

Room 2702-03, CC Wu Building,302-8 
Hennessy Road, Wanchai, Hong Kong

25,988,211

Investment holding

Everrich (Shandong)
Energy Co., Ltd.

2009.11.02

Entrepreneurship Service Center, 
Building 4, Torch City, High-tech Zone, 
Jining City, Shandong Province, China

22,617,750

Solar engineering 
integrated design 
services

167

Special DisclosuresSummary of Affiliated Enterprises (Continue)

Name of Corporation

Date of
Establishmen

Address

Wavetek Microelectronics
Corporation

2010.10.18

10, Chuangxin 1st Rd., Baoshan 
Township, Hsinchu, Taiwan 30076, 
R.O.C.

Wavetek Microelectronics 
Investment
(Samoa) Limited

2013.08.28

Le Sanalele Complex, Ground Floor, 
Vaea Street, Saleufi, Apia, Samoa

Wavetek Microelectronics  
Corporation(USA)

2013.09.26

488 De Guigne Drive, Sunnyvale,  
CA 94085, USA

SocialNex Italia 1 S.R.L.

2011.11.11

Corso Venezia, 36-20121,  
Milano, Italy

Best Elite International 
Limited

2001.07.12

Infoshine Technology Limited 2002.02.12

Oakwood Associates Limited 2002.02.12

HeJian Technology
(Suzhou) Co., Ltd.

2001.11.23

UnitedDS Semiconductor 
(Shandong) Co., Ltd

2014.03.25

Omni Global Limited

2013.07.02

Vistra Corporate Services Centre, 
Wickhams Cay II, Road Town, Tortola, 
VG1110, B.V.I.

Vistra Corporate Services Centre, 
Wickhams Cay II, Road Town, Tortola, 
VG1110, B.V.I.

Vistra Corporate Services Centre, 
Wickhams Cay II, Road Town, Tortola, 
VG1110, B.V.I.

333, Xinghua St., Suzhou Industrial 
Park, Suzhou, Jiangsu Province 215025, 
PRC

17th Floor, Building3, Aosheng 
Plaza,1166 Xinluo Ave., Jinan High-Tech 
Development Zone

Vistra Corporate Services Centre, 
Ground Floor NPF Building, Beach Road, 
Apia Samoa

United Microtechnology 
Corporation(New York)

2013.07.08

420 Sand Creek Rd., Apt. 113 Albany, 
NY 12205, USA

United Microtechnology 
Corporation(California)

United Semiconductor
(Xiamen) Co., Ltd

2014.12.10

2014.10.01

488 Deguigne Drive, Sunnyvale,  
CA 94085, USA

899 Wan Jia Chun Road, Xiang’an 
District, Xiamen, PRC

United Microchip Corporation 2015.02.04

UMC Technology Japan Co., 
Ltd.

2016.04.01

P.O. Box 31119 
Grand Pavilion, Hibiscus Way, 802 West 
Bay Road, Grand Cayman, 
KY1-1205 Cayman Islands

15F Akihabara Centerplace Bldg.,  
1 Kanda Aioi-cho, Chiyoda-ku,  
Tokyo 101-0029, Japan

Sino Paragon Limited

2016.06.06

Vistra Corporate Services Centre, 
Ground Floor NPF Building, Beach Road, 
Apia Samoa

Note: The data is dated December 31, 2018.

168

 In NTD

Capital

Major Business /
Production Items

1,623,771,110

Sales and 
manufacturing of 
integrated circuits

46,275,000

Investment holding

1,809,420

Sales and marketing 
service

356,030

Photovoltaic power 
plant

7,206,788,677

Investment holding

10,675,578,000

Investment holding

10,675,578,000

Investment holding

14,613,260,591

136,785,000

Sales and 
manufacturing of 
integrated circuits

Design support of 
integrated circuits

130,160,000

Investment holding

28,649,150

30,157,000

Research & 
development

Research & 
development

57,895,591,743

Sales and 
manufacturing of 
integrated circuits

29,874,878,250

Investment holding

4,775,750

Semiconductor 
manufacturing 
technology 
development and 
consulting services

83,204,400

Investment holding

United Microelectronics Corporation  |  Annual Report 2018Summary of Affiliated Enterprises (Continue)

Data for Common Shareholders of Treated-as Controlled Companies and Affiliates
None.

Business of United Microelectronics Corporation (UMC) and Its Affiliated Enterprises
The business of UMC and its affiliated enterprises includes semiconductor wafer manufacturing, electronics, optronics,
investment activities, insurance, and trade.

169

Special DisclosuresSummary of Affiliated Enterprises (Continue)

Directors, Supervisors and Presidents of Affiliated Enterprises

Name of Corporation

Title

Name or Representative

Shareholding

UMC Group (USA)

Director

Jason Wang

United Microelectronics  
(Europe)B.V.

Director

Chitung Liu

Director

Stan Hung

Director

Jason Wang

UMC Capital Corp.

Chairman Stan Hung

Director

SC Chien

Director

Jason Wang

Director

Chitung Liu

Director

Chih Chiang Peng

UMC Group Japan

Director

J J Chang

Director

C C Tien

Director

Yen Huang

Supervisor Angel Sun

UMC Korea Co., Ltd.

Director

Carissa Tseng

Chairman United Microelectronics 
Corporation

Representative:Stan Hung

Director

United Microelectronics 
Corporation

Representative: SC Chien

Director

United Microelectronics 
Corporation

Representative: Jason Wang

Director

United Microelectronics 
Corporation

Representative: Chitung Liu

Director

United Microelectronics 
Corporation

Representative: Chih Chiang Peng

Supervisor United Microelectronics 
Corporation

Representative: Jinhong Lin

TLC Capital Co., Ltd.

170

Shares

-

-

-

-

-

-

-

-

-

-

-

-

-

-

387,600,000

-

387,600,000

-

387,600,000

-

387,600,000

-

387,600,000

-

387,600,000

-

%

-

-

-

-

-

-

-

-

-

-

-

-

-

-

100.00

-

100.00

-

100.00

-

100.00

-

100.00

-

100.00

-

United Microelectronics Corporation  |  Annual Report 2018Summary of Affiliated Enterprises (Continue)

Name of Corporation

Title

Name or Representative

Shareholding

Fortune Venture Capital Corp.

Chairman

Director

Director

Director

United Microelectronics 
Corporation

Representative: Stan Hung

United Microelectronics 
Corporation

Representative: SC Chien

United Microelectronics 
Corporation

Representative: Jason Wang

United Microelectronics 
Corporation

Representative: Chitung Liu

Director and 
President

United Microelectronics 
Corporation

Representative: Chih Chiang Peng

Supervisor

United Microelectronics 
Corporation

Representative: Bellona Chen

Green Earth Limited

Director

Chitung Liu

UMC Investment(Samoa)Limited Director

Nexpower Technology Corp.

Chairman

United Microelectronics 
Corporation

United Microelectronics 
Corporation

Representative: Steven Sheng

Director

Unimicron Technology Corp.

Director

Director

Director

Representative:  Kevin Liu

United Microelectronics 
Corporation

Representative: C P Yen

United Microelectronics 
Corporation

Representative: Jinhong Lin

United Microelectronics 
Corporation

Representative: Eric Zhou

Supervisor

Fortune Venture Capital Corp.

23,826,545

Representative: Tachih Lung

-

Shares

462,000,000

-

462,000,000

-

462,000,000

-

462,000,000

-

462,000,000

-

462,000,000

-

-

%

100.00

-

100.00

-

100.00

-

100.00

-

100.00

-

100.00

-

-

1,520,000

100.00

33,998,269

-

400,326

-

33,998,269

-

33,998,269

-

33,998,269

-

47.75

-

0.56

-

47.75

-

47.75

-

47.75

-

33.46

-

171

Special DisclosuresSummary of Affiliated Enterprises (Continue)

Name of Corporation

Title

Name or Representative

Shareholding

UMC Capital(USA)

Director and 
President

Jason Wang

Director

Stan Hung

ECP Vita Pte. Ltd.

Director

Chitung Liu

Director

Bellona Chen

Director

Vic Yen

Director

Sofia Wang

Shares

-

-

-

-

-

-

%

-

-

-

-

-

-

Soaring Capital Corp.

Director

TLC Capital Co., Ltd.

900,000

100.00

Unitruth Advisor (Shanghai)  
Co., Ltd.

Director

Chih Chiang Peng

-

-

Tera Energy Development Co., Ltd. Chairman

Fortune Venture Capital Corp.

18,655,091

100.00

Representative: Steven Sheng

-

-

Director

Fortune Venture Capital Corp.

18,655,091

100.00

Representative: Su Ying Shih

-

-

Director

Fortune Venture Capital Corp.

18,655,091

100.00

Representative: Jinhong Lin

-

-

Supervisor

Fortune Venture Capital Corp.

18,655,091

100.00

Representative: Tachih Lung

-

-

Everrich Energy Investment (HK)
Limited

Director

Tera Energy Development Co., Ltd.

750,000

100.00

Director

Jinhong Lin

Everrich (Shandong)
Energy Co., Ltd.

Executive 
Director

Steven Sheng

Supervisor

Su Ying Shih

-

-

-

-

-

-

172

United Microelectronics Corporation  |  Annual Report 2018Summary of Affiliated Enterprises (Continue)

Name of Corporation

Title

Name or Representative

Shareholding

Wavetek Microelectronics 
Corporation

Chairman

United Microelectronics 
Corporation

Representative: Wen-Yang 
Chen

Director

United Microelectronics 
Corporation

Representative:SC Chien

Director

United Microelectronics 
Corporation

Representative:Jason Wang

Supervisor

Chih Chiang Peng

Wavetek Microelectronics 
Investment
(Samoa) Limited

Wavetek Microelectronics 
Corporation (USA)

Director

Wen-Yang Chen

Director

Chian Gauh Shih

SocialNex Italia 1 S.R.L.

Director

Sherry Chang

Best Elite International Limited

Director

Chau-Shen Yu

Director

Jeremy Wang

Director

Eric Chen

Director

Jinhong Lin

Infoshine Technology Limited

Director

Chau-Shen Yu

Oakwood Associates Limited

Director

Chau-Shen Yu

Shares

126,230,387

-

126,230,387

-

126,230,387

-

15,001

-

-

-

-

-

-

-

-

-

%

77.74

-

77.74

-

77.74

-

0.00

-

-

-

-

-

-

-

-

-

173

Special Disclosures 
Summary of Affiliated Enterprises (Continue)

Name of Corporation

Title

Name or Representative

Shareholding

Shares

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

%

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

HeJian Technology (Suzhou)  
Co., Ltd.

Chairman

Stan Hung

Vice Chairman Chau-Shen Yu

Director and 
President

Ming-Cheng Kao

Director

Chitung Liu

Director

Wan Ling Cheng

Director

Jinhong Lin

Independent 
Director

Qingheng An

Independent 
Director

Feng-I Lin

Independent 
Director

Wenli Zhang

Supervisor

Jeremy Wang

Supervisor

Ming-Chun Chu

Supervisor

I-Cheng Lu

UnitedDS 
Semiconductor(Shandong) Co., Ltd.

Executive 
Director

Steven Sheng

Supervisor

Archi Chen

Omni Global Limited

Director

Chitung Liu

174

United Microelectronics Corporation  |  Annual Report 2018Summary of Affiliated Enterprises (Continue)

Name of Corporation

Title

Name or Representative

Shareholding

United Microtechnology 
Corporation (New York)

Director

Jason Wang

Director

Chitung Liu

United Microtechnology 
Corporation (California)

Director

Jason Wang

Director

Chitung Liu

United Semiconductor (Xiamen) 
Co., Ltd.

Chairman

Chau-Shen Yu

Vice Chairman

Chih-Ching Hsu

Director

Gang Wu

Director

Tao Yang

Director

Guo-Yu Sui

Director

SC Chien

Director

Eric Chen

Director

Jinhong Lin

Director

Jeremy Wang

Supervisor

Wei-Piao Huang

Supervisor

Angel Sun

United Microchip Corporation

Director

Chitung Liu

UMC Technology Japan Co., Ltd.

Director

Chitung Liu

Director

Jinhong Lin

Sino Paragon Limited

Director

Jason Wang

Director

Chitung Liu

Note: The data is dated December 31, 2018.

Shares

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

%

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

175

Special DisclosuresSummary of Affiliated Enterprises (Continue)

Summarized Operating Results of UMC Subsidiaries 

 In Thousand NTD

Company

Capital

Assets

Liabilities Net Worth

Net 
Operating 
Revenues

Operating 
Income 
(Loss)

Net Income 
(Loss)

Earnings (Loss) 
Per Share 
(NTD)

UMC Group (USA)

495,706

9,583,342  

7,873,923

1,709,419

58,692,137 

43,378 

51,023 

3.10 

United Microelectronics  
(Europe) B.V.

116,868 

141,355 

8,666 

132,689 

47,230 

3,543 

2,749 

305.38 

UMC Capital Corp.

2 ,1 6 1 ,140 

3,451,556 

382 

3,451,174 

402,972 

(114,609)

(114,609)

(1.60)

UMC Group Japan

8,187 

1,081,515 

1,021,744 

59,771 

4,574,282 

75,605 

43,056 

43,056.27 

UMC Korea Co., Ltd. 

15,070 

21,066 

378 

20,688 

14,230 

1,156 

1,148 

10.44 

TLC Capital Co., Ltd.

3,876,000 

4,270,623 

23,948 

4,246,675 

356,574 

18,548 

(28,853)

(0.07)

Fortune Venture Capital Corp.

4,620,000 

5,616,952 

24,479 

5,592,473 

948,850 

(194,835)

(196,483)

(0.47)

Green Earth Limited

29,988,444 

17,150,726 

- 

17,150,726 

UMC Investment(Samoa) 
Limited

43,519 

42,908 

 - 

42,908 

-

-

- 

(5,570,897)

(6.69)

-

532 

0.35 

Nexpower Technology Corp.

711,986 

1,158,522 

1,045,524 

112,998 

86,152 

(320,750)

(351,503)

(7.43)

UMC Capital (USA)

6,031 

16,642 

178 

16,464 

7,728 

368 

330 

ECP Vita Pte. Ltd.

271,413 

539,199 

29,034 

510,165 

45,150 

41,687 

41,130 

1.65 

4.57 

Soaring Capital Corp.

27,351 

14,199 

24,126 

14,319 

 - 

4 

14,199 

1 

(1,912)

(1,904)

(2.12)

14,315 

8,725 

(2,041)

(1,812)

NA

186,551 

86,672 

5,024 

81,648 

6,507 

(11,973)

1,786 

0.07 

25,988

32,388 

30

32,358

-

(130)

2,987

22,618 

48,958 

16,166 

32,792 

52,487 

4,886

3,108 

2.97

NA

Unitruth Advisor (Shanghai) 
Co., Ltd.

Tera Energy Development Co., 
Ltd.

Everrich Energy Investment (HK) 
Limited

Everrich (Shandong) Energy Co., 
Ltd.

176

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
Summary of Affiliated Enterprises (Continue)

Company

Capital

Assets

Liabilities Net Worth

 In Thousand NTD

Net 
Operating 
Revenues

Operating 
Income 
(Loss)

Net Income 
(Loss)

Earnings (Loss) 
Per Share 
(NTD)

Wavetek Microelectronics 
Corporation

Wavetek Microelectronics 
Investment (Samoa) Limited

Wavetek Microelectronics 
Corporation(USA)

1,623,771 

1,404,140 

662,000 

742,140 

1,884,722 

(295,728)

(308,322)

(1.90)

46,275 

11,045 

1,939 

9,106 

-

(7,421)

(7,277)

(5.82)

1,809 

2,875 

316 

2,559 

7,385 

355 

194 

SocialNex Italia 1 S.R.L.

356 

161,890 

34,022 

127,868 

13,582 

1,355 

1,342 

Best Elite International 
Limited

7,206,789 

23,093,501 

3,138  23,090,363 

Infoshine Technology Limited

10,675,578 

23,013,970 

Oakwood Associates Limited

10,675,578 

23,013,970 

-

-

23,013,970 

23,013,970 

-

-

-

(5,526)

376,114 

 - 

381,162 

(1,024)

381,162 

14,613,261 

27,329,062 

4,084,367  23,244,695 

10,306,348 

2,215,793 

363,030 

3.24 

NA

0.57 

NA

NA

0.11 

Hejian Technology (Suzhou) 
Co., Ltd.

UnitedDS Semiconductor 
(Shandong) Co., Ltd.

United Microtechnology 
Corporation(New York)

United Microtechnology 
Corporation(California)

United Semiconductor 
(Xiamen) Co., Ltd.

136,785 

238,665 

39,250 

199,415 

159,499 

16,802 

15,057 

NA

Omni Global Limited 

130,160 

594,085 

21,573 

572,512 

28,649 

30,425 

60 

30,365 

-

67 

(69)

42,683 

9.93 

4 

(29)

(766.20)

30,157 

34,936 

1,164 

33,772 

25,143 

1,423 

2,328 

58,220.76 

57,895,592 

94,377,826 

59,661,654 

34,716,172 

6,555,680 

(8,631,490)

(11,724,602)

NA

United Microchip Corporation

29,874,878 

17,123,928 

 - 

17,123,928 

 - 

 - 

(5,570,480)

(6.72)

UMC Technology Japan Co., 
Ltd.

4,776 

9,295 

295 

9,000 

1,294 

76 

(246)

(70.35)

Sino Paragon Limited

83,204 

120,901 

-

120,901 

- 

-

14,442 

5.55 

Note: USD:NTD=1:30.157, JPY:NTD=1:0.2729, EUR:NTD=1:35.603, RMB:NTD=1:4.5595, KRW:NTD=1:0.0274.

177

Special Disclosures 
 
 
 
 
 
Issuance of Private Placement Securities

The  Company’s  2018  Annual  General  Meeting  (AGM)  has  authorized  the  Board  to  engage  with  strategic  investors  through 
private placement and raise capital from specific parties, through issuing either single or combo instruments such as common 
shares, DRs (including but not limited to ADS), or Euro/Domestic convertible bonds (including secured or unsecured corporate 
bonds), based on market conditions and the Company's needs. The amount of shares issued or convertible is proposed to be 
no more than 10% of total shares issued (i.e., no more than 1,262,431,871 shares). Considering market conditions, the Board of 
Directors resolved on March 6, 2019, to terminate the private placement offering.

Acquisition or Disposal of UMC Shares by Subsidiaries

In thousand NTD, Shares

Subsidiary

Paid-in 
Capital

Source
of Capital

Holding %
by the
Company

Acquisition
or Disposal
Date

Shares 
Acquired
and 
Amount

Disposal
Shares and
Amount

Profit/
Loss

As of Annual Report
Printing Date

Shares Amount

Fortune Venture Capital 
Corp.

4,620,000

New 
shares
for cash

Note:  (1) The data is dated March 6, 2019. 

100.00

2019

None

None

None

16,078,737

105,114

2018

None

None

None

16,078,737

105,114

(2) None of the above companies pledged UMC shares as collateral.
(3) The Company did not provide endorsements or guarantees to these subsidiaries.
(4) The Company did not provide loans to these subsidiaries.

Other Necessary Supplements

None.

Disclosures of Events Which May Have a Significant Influence on 
Stockholders’ Equity or Share Price, in Compliance with Item  3, 
Paragraph 2 in Article 36 of the Securities and Exchange Law of 
the R.O.C. during 2018 and as of the Annual Report Printing Date

None.

178

United Microelectronics Corporation  |  Annual Report 2018 
 
 
Financial Review

180  Condensed Balance Sheets 
182  Condensed Statements of Comprehensive Income 
184   Financial Analysis 
188  Audit Committee’s Review Report 
189  Financial Statements – Consolidated
266  Financial Statements – Parent Company

179

Financial ReviewCondensed Balance Sheets

Condensed Balance Sheets-Consolidated

In Thousand NTD

Item

Current assets

Property, plant and 
equipment

Intangible assets

Other assets

Total assets

Current liabilities

Non-current liabilities

Total liabilities

Equity attributable to the 
parent company

Capital

Additional paid-in capital

Retained earnings

Before 
distribution

After 
distribution

Before 
distribution

After 
distribution

Before 
distribution

After 
distribution

2018

2017

2016

2015

2014

14 1 ,193,432

1 7 2 ,846,595

139,160,486

110,469,594

94,816, 5 2 1

96,863,149

205,741,681

224,983,404

186,433,395

166,690,243

2 ,991,804

4 7,573,075

3,787,509

45,409,486

4,088,303

47, 1 13 ,881

4,504,088

51 ,612,806

4,532,938

45,159,318

364,604,906

394,099,162

386,655,1 82

337,366,810

313,245,648

49,899, 337

88,061,070

7 1 ,978,462

48,245, 5 1 8

48,106,076

*

96,618,093

78,090,621

55,152,491

55 ,045,398

108,169,078

92,000,508

95,935,096

60,303,889

40,130,7 2 1

15 8,068, 4 1 5

180,061,578

167,913,558

108,549,407

88,236,797

*

188,618,601

174,025, 7 1 7

115,456,380

95,176,1 1 9

206,069,7 23

213,080,776

216,579,895

226,790,338

221,159,053

12 4 ,243,1 8 7

126,243,1 8 7

126,243,1 8 7

127,581,329

127,303,048

40 ,399,363

6 1 ,588,543

40,858,350

48,065,899

40,997,092

47,655,1 76

41 ,651,569

50,707,642

39,447,879

44,339,023

*

39,508,876

41 ,543,0 17

43,800,669

37,399,701

Other components of equity

(14, 5 13 ,940)

2,632,37 7

6,403,477

Treasury stock

Non-controlling interests

Total equity

Before 
distribution

After 
distribution

(5,647,430)

(4,719,037)

(4,719,037)

466,768

956,808

2,161 ,729

10,675,404

(3,825,606)

2,027,065

12,372,7 12

(2,303,609)

3,849,798

206,536,491

214,037,584

218,741,624

228,817,403

225,008,851

*

205,480, 561

212,629,465

221,910,430

218,069,529

Note 1  :  * Subject to change based on resolutions of the 2019 shareholders’ meeting.

Note 2  :  The company listed on the TWSE or traded on the TPEx shall include in its analysis the updated financial data which are audited or reviewed by a CPA for  

  the most recent period up to the publication date of the annual report: None.

180

United Microelectronics Corporation  |  Annual Report 2018 
 
Condensed Balance Sheets-Parent Company

In Thousand NTD

Item

Current assets

Property, plant and 
equipment

Intangible assets

Other assets

Total assets

Current liabilities

Non-current liabilities

Total liabilities

Equity

Capital

Additional paid-in capital

Retained earnings

Other components of equity

Treasury stock

Total equity

Before 
distribution

After 
distribution

Before 
distribution

After 
distribution

Before 
distribution

After 
distribution

Before 
distribution

After 
distribution

2018

2017

101,335,770

101, 1 1 5 ,727

106,676,034

1 2 7,101,974

2016

82,558,263

157,573, 1 3 1

2015

2014

72,211, 2 1 1

169,031,687

68,881,364

155,458,694

2,886,159

93,849,564

3,459,829

84,756,630

4,015,370

82,908,196

4,399,963

80,159,888

4,433,528

69,080,163

299,187,220

32 1 ,994,467

327,054,960

325,802,749

297,853,749

26,797,263

58,655,702

47,397,892

41,441,501

38,405,248

*

67,212,725

53,510,051

48,348,474

45,344,570

66,320,234

93, 1 1 7,497

50,257,989

108,913,691

63,077,1 7 3

110,475,065

57,570,910

99,012, 4 1 1

38,289,448

76,694,696

*

1 1 7,470,7 14

116,587,224

105,919,384

83,634,018

206,069,723

124,243,187

40,399,363

61 ,588,543

213,080,776

126,243,1 8 7

40,858,350

48,065,899

216,579,895

126,243,187

40,997,092

47,655,176

226,790,338

127,581,329

41,651,569

50,707,642

2 2 1 ,159,053

127,303,048

39,447,879

44,339,023

*

39,508,876

41,543,017

43,800,669

37,399,701

(14,513,940)

(5,647,430)

2,632,37 7

(4,719,037)

6,403,477

(4,719,037)

1 0,675,404

(3,825,606)

12,372,7 12

(2,303,609)

206,069,723

213,080,776

216,579,895

226,790,338

221,159,053

*

204,523,753

210,467,736

219,883,365

214,219,7 3 1

Note 1  :  * Subject to change based on resolutions of the 2019 shareholders’ meeting.

Note 2  :  The company listed on the TWSE or traded on the TPEx shall include in its analysis the updated financial data which are audited or reviewed by a CPA for  

  the most recent period up to the publication date of the annual report: None.

181

Financial Review 
 
Condensed Statements of Comprehensive Income

Condensed Statements of Comprehensive Income-Consolidated

In Thousand NTD

Item

Operating revenues

Gross profit

Operating income

Non-operating income and expenses

Income from continuing operations 
before income tax

Net income

Other comprehensive income (loss), 
net of tax

Total comprehensive income (loss)

Net income attributable to 
stockholders of the parent

Net income attributable to non-
controlling interests

Comprehensive income attributable 
to stockholders of the parent

Comprehensive income attributable 
to non-controlling interests

2018

2017

2016

2015

2014

151,252,571

149,284,706

147,870,124

144,830,421

140,012,076

22,840,027

5,797,232

(3,612,833)

2,184,399

2,643,052

949,944

3,592,996

7,072,990

27,057,758

6,568,321

1,230,1 01

7,798,422

6,631,265

(4,034,355)

2,596,910

9,628,734

30,379,430

6,193,576

(1,346,938)

4,846,638

3,863,075

(4,364,780)

(501,705)

8,315,660

31 ,768,527

10,835,657

2,876,488

13,712,1 4 5

12,835,651

(1,794,644)

11,041,007

13,448,624

31,852,678

10,076,332

3,436,964

13,513,296

11 ,479,589

6,738,120

18,217,709

12,141,341

(4,429,938)

(2,997,469)

(4,452,585)

(612,973)

(661,752)

8,126,828

5,705,980

3,983,198

11,716,094

18,736,470

(4,533,832)

(3,109,070)

(4,484,903)

(675,087)

(518,761)

Earnings per share (NTD)

0.58

0.79

0.68

1.08

0.97

Note 1  :  EPS was calculated based on weighted average shares outstanding for the period.
Note 2  :  The company listed on the TWSE or traded on the TPEx shall include in its analysis the updated financial data which are audited or reviewed by a CPA  

  for the most recent period up to the publication date of the annual report: None.

182

United Microelectronics Corporation  |  Annual Report 2018 
Condensed Statements of Comprehensive Income-Parent Company

Item

Operating revenues

Gross profit

Operating income

Non-operating income and expenses

Income from continuing operations 
before income tax

Net income

Other comprehensive income (loss), 
net of tax

2018

2017

2016

2015

132,834,602

132,179,198

135,592,136

130,685,516

28,358,887

28,686,022

30,548,1 9 1

12,790,237

(6,581,581)

6,208,656

7,072,990

1,053,838

29,718,7 7 1

1 1,538,896

(1,114,125)

10,424,7 7 1

9,628,734

(3,922,754)

9,605,769

(594,179)

9,011,590

8,315,660

(4,332,462)

In Thousand NTD

2014

120,615,391

29,590,980

1 1,130,389 

2,707,901 

13,838,290 

10,913, 8 1 1 

3,032,406

13,946, 2 1 7 

13,448,624 

(1,732,530) 

12,141,341 

6,595,129 

Total comprehensive income

8,126,828

5,705,980

3,983,198

11 ,716,094 

18,736,470 

Earnings per share (NTD)

0.58

0.79

0.68

1.08

0.97

Note 1  :  EPS was calculated based on weighted average shares outstanding for the period.
Note 2  :  The company listed on the TWSE or traded on the TPEx shall include in its analysis the updated financial data which are audited or reviewed by a CPA 

 for the most recent period up to the publication date of the annual report: None.

Auditors’ Opinions from 2014 to 2018

Year

2014

2015

2016

2017

2018

CPA

Audit Opinion

Shao-Pin Kuo, Meng-Lin Song

Unqualified-Modified Opinion

Shao-Pin Kuo, Meng-Lin Song

Unqualified-Modified Opinion

Shao-Pin Kuo, Meng-Lin Song

Unqualified Opinion with Emphasis of Matter Paragraphs or Other Matter Paragraphs

Shao-Pin Kuo, Wan-Ju Chiu

Unqualified Opinion with Emphasis of Matter Paragraphs or Other Matter Paragraphs

Wan-Ju Chiu, Hsin-Min Hsu

Unqualified Opinion with Emphasis of Matter Paragraphs or Other Matter Paragraphs

183

Financial Review 
 
Financial Analysis

Financial Analysis- Consolidated

Item

Capital 
structure

Debt ratio (%)

Long-term funds to property, plant and 
equipment (%)

Liquidity

Current ratio (%)

Quick ratio (%)

Operating 
performance

Times interest earned (times)

Average receivables turnover (times)

Days sales outstanding

Average inventory turnover (times)

Average payables turnover (times)

Average inventory turnover days

Property, plant and equipment turnover 
(times)

Total assets turnover (times)

Profitability

Return on assets (%)

Return on stockholders' equity attributable 
to the parent company (%)

Pre-tax income to paid-in capital (%)

Net profit margin (%)

Earnings per share (NTD)

Cash Flow

Cash flow ratio (%)

Cash flow adequacy ratio (%)

Cash flow reinvestment ratio (%)

Leverage

Operating leverage

Financial leverage

2018

43.35

158.30

282.96

222.80

1.79

6.7 5

54

7.04

19.26

52

0.80

0.40

1.28

3.37

5.32

1.7 5

0.58

102.08

86.78

4.03

19. 1 1

1.91

2017

45.69

129.95

158.03

121.72

4.24

6.78

54

6.93

18.26

53

0.69

0.38

2. 2 1

4.48

8.54

4.44

0.79

59.59

81.49

4.68

16.86

1.58

2016

43.43

124.22

153.48

114.73

4.33

6.98

52

6.78

18.34

54

0.72

0. 4 1

1. 35

3. 7 5

7. 35

2.61

0.68

64. 53

75.74

4. 1 1

17. 7 7

1 . 25

2015

32.1 8

148.23

196.53

155.43

16. 35

6.95

53

6.88

18.65

53

0.82

0.45

4.07

6.00

11.20

8.86

1.08

123.92

89.02

5.93

9.78

1.05

2014

28. 1 7

155.02

201.35

150.93

14. 3 1

7. 1 5

51

7.40

15.93

49

0.85

0.46

3.96

5.66

1 1. 1 1

8.20

0.97

93. 10

90.40

5.44

9.82

1.07

Analysis of changes of over 20% between 2017 and 2018:

1.   Long-term  funds  to  property,  plant  and  equipment:  Due  to  increase  in  long-term  capital  and  decrease  in  net  worth  of  

  property, plant and equipment.

2.  Current ratio: Due to decrease in short-term loans and current portion of long-term liabilities.

3.  Quick ratio: Due to decrease in short-term loans and current portion of long-term liabilities.

4.  Times interest earned: Due to decrease in income before income tax.

5.    Return on assets: Due to decrease in net income.

6.   Return  on  stockholders’  equity  attributable  to  the  parent  company:  Due  to  decrease  in  net  income  attributable  to  

  stockholders of the parent.

7.    Pre-tax  income  to  paid-in  capital:  Due  to  decrease  in  income  before  income  tax  attributable  to  stockholders  of  the  

  parent.

8.   Net profit margin: Due to decrease in net income.

9.   Earnings per share: Due to decrease in net income attributable to stockholders of the parent.

10. Cash flow reinvestment ratio: Due to decrease in short-term loans and current portion of long-term liabilities.

11.   Financial leverage: Due to decrease in operating income.

184

United Microelectronics Corporation  |  Annual Report 2018 
 
 
Financial Analysis (Continue)

Note 1  : The calculation of EPS was based on weighted average shares outstanding for the year.
Note 2 : The calculation formulas of financial analysis are listed as follows:
1. Capital structure

(1)  Debt ratio = total liabilities / total assets
(2) Long-term funds to property, plant and equipment = (total equity + bonds payable +long-term loans) / net worth of property, plant and equipment

2. Liquidity

(1)  Current ratio = current assets / current liabilities
(2) Quick ratio = (current assets – inventory – prepaid expenses – non-current assets held for sale – other current assets) / current liabilities
(3) Times interest earned = income before interest and tax / interest expenses

3. Operating performance

(1)  Average  receivables  (including  accounts  receivable  and  notes  receivable  arising  from  business  operations)  turnover  =  net  sales  /  average  receivables  
    (including accounts receivable and notes receivable arising from business operations) for each period
(2) Days sales outstanding = 365 / average receivables turnover
(3) Average inventory turnover = cost of sales / average inventory 
(4) Average payables (including accounts payable and notes payable arising from business operations) turnover = cost of sale / average payables (including  
    accounts payable and notes payable arising from business operations) for each period
(5) Average inventory turnover days = 365 / average inventory turnover
(6) Property, plant and equipment turnover = net sales / average net worth of property, plant and equipment 
(7) Total assets turnover = net sales / average total assets

4. Profitability

(1)  Return on assets = [net income + interest expenses (1- tax rate)] / average total assets
(2) Return on stockholders' equity attributable to the parent company = net income attributable to stockholders of the parent / average total equity attributable  
    to the parent company
(3) Pre-tax income to paid-in capital = income before tax attributable to stockholders of the parent / paid-in capital
(4) Net profit margin = net income / net sales
(5) Earnings per share = (net income attributable to stockholders of the parent – preferred shares dividends) / weighted average number of outstanding shares

5. Cash flow

(1)  Cash flow ratio = net cash provided by operating activities / current liabilities
(2) Cash flow adequacy ratio = five-year sum of net cash provided by operating activities / five-year sum of capital expenditures, inventory increase and cash  
    dividend
(3) Cash flow reinvestment ratio = (net cash provided by operating activities – cash dividend) / (gross property, plant and equipment + long-term investments +  
    other non-current assets + working capital)

6. Leverage

(1)  Operating leverage = (net operating revenue – variable operating costs and expenses) / operating income
(2) Financial leverage = operating income / (operating income – interest expenses)

Note 3 : The company listed on the TWSE or traded on the TPEx shall include in its analysis the updated financial data which are audited or reviewed by a CPA for  

  the most recent period up to the publication date of the annual report: None.

185

Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
  
Financial Analysis (Continue)

Financial Analysis- Parent Company

Item

Capital 
structure

Debt ratio (%)

Long-term funds to property, plant and 
equipment (%)

Liquidity

Current ratio (%)

Quick ratio (%)

Operating 
performance

Times interest earned (times)

Average receivables turnover (times)

Days sales outstanding

Average inventory turnover (times)

Average payables turnover (times)

Average inventory turnover days

Property, plant and equipment turnover 
(times)

Total assets turnover (times)

Profitability

Return on assets (%)

Return on equity (%)

Pre-tax income to paid-in capital (%)

Net profit margin (%)

Earnings per share (NTD)

Cash Flow

Cash flow ratio (%)

Cash flow adequacy ratio (%)

Cash flow reinvestment ratio (%)

Leverage

Operating leverage

Financial leverage

2018

31. 12

242. 9 1

378. 16

313.86

9. 1 4

6.02

6 1

6. 73

18.60

54

1 . 16

0. 43

2. 47

3. 37

5.00

5. 32

0.58

182. 12

135. 24

4.20

7.82

1.06

2017

33.82

186. 5 1

181.87

150.22

12 . 13

5.69

64

6.90

18.47

53

0.93

0. 41

3. 21

4.48

8.26

7.28

0.79

102.75

121.08

5.95

8.70

1.09

2016

33.78

160.90

174. 18

139.84

1 1.00

6.50

56

7.00

19. 18

52

0.83

0.42

2. 73

3. 75

7. 14

6. 13

0.68

119. 78

97.08

5.56

10.5 5

1.08

2015

30. 39

161 . 3 1

174. 25

13 1 .82

18.45

6.99

52

6. 7 7

18.83

54

0. 8 1

0.42

4. 4 1

6.00

10.93

10.29

1.08

132. 1 7

92.02

5. 5 5

8.99

1.04

2014

25. 7 5

163.1 0

179. 35

138.53

16.96

7.02

52

7.1 0

1 7.28

5 1

0.80

0.42

4.37

5.66

10.87

10.07

0.97

112.48

92. 1 2

5.35

8. 1 1

1.05

Analysis of changes of over 20% between 2017 and 2018:

1.  Long-term  funds  to  property,  plant  and  equipment  and  Property,  plant  and  equipment  turnover:  Due  to  decrease  in  net  

  worth of property, plant and equipment.

2. Current ratio, Quick ratio and Cash flow ratio: Due to decrease in current liabilities.

3. Times  interest  earned,  Return  on  assets,  Return  on  equity,  Pre-tax  income  to  paid-in  capital,  Net  profit  margin  and  

  Earnings per share: Due to decrease in income before tax and net income.

4. Cash flow reinvestment ratio: Due to increase in working capital.

186

United Microelectronics Corporation  |  Annual Report 2018Financial Analysis (Continue)

Note 1  : The calculation of EPS was based on weighted average shares outstanding for the year.
Note 2 : The calculation formulas of financial analysis are listed as follows:
1. Capital structure

(1)  Debt ratio = total liabilities / total assets
(2) Long-term funds to property, plant and equipment = (total equity + bonds payable +long-term loans) / net worth of property, plant and equipment

2. Liquidity

(1)  Current ratio = current assets / current liabilities
(2) Quick ratio = (current assets – inventory – prepaid expenses – non-current assets held for sale – other current assets) / current liabilities
(3) Times interest earned = income before interest and tax / interest expenses

3. Operating performance

(1)  Average  receivables  (including  accounts  receivable  and  notes  receivable  arising  from  business  operations)  turnover  =  net  sales  /  average  receivables  
    (including accounts receivable and notes receivable arising from business operations) for each period
(2) Days sales outstanding = 365 / average receivables turnover
(3) Average inventory turnover = cost of sales / average inventory 
(4) Average payables (including accounts payable and notes payable arising from business operations) turnover = cost of sale / average payables (including  
    accounts payable and notes payable arising from business operations) for each period
(5) Average inventory turnover days = 365 / average inventory turnover
(6) Property, plant and equipment turnover = net sales / average net worth of property, plant and equipment 
(7) Total asset turnover = net sales / average total assets

4. Profitability

(1)  Return on assets = [net income + interest expenses (1- tax rate)] / average total assets
(2) Return on equity = net income / average total equity
(3) Pre-tax income to paid-in capital = income before tax / paid-in capital
(4) Net profit margin = net income / net sales
(5) Earnings per share = (net income – preferred shares dividends) / weighted average number of outstanding shares

5. Cash flow

(1)  Cash flow ratio = net cash provided by operating activities / current liabilities
(2) Cash flow adequacy ratio = five-year sum of net cash provided by operating activities / five-year sum of capital expenditures, inventory increase and cash  
    dividend
(3) Cash flow reinvestment ratio = (net cash provided by operating activities – cash dividend) / (gross property, plant and equipment + long-term investments +  
    other non-current assets + working capital)

6. Leverage

(1)  Operating leverage = (net operating revenue – variable operating costs and expenses) / operating income
(2) Financial leverage = operating income / (operating income – interest expenses)

Note 3 : The company listed on the TWSE or traded on the TPEx shall include in its analysis the updated financial data which are audited or reviewed by a CPA for  

  the most recent period up to the publication date of the annual report: None.

187

Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
  
Financial Analysis (Continue)

Audit Committee’s Review Report

The  Board  of  Directors  has  prepared  and  submitted  to  us  the  Company’s  2018  Business  Report,  Financial  Statements  and 
proposal  for  earnings  distribution.  Financial  Statements  were  audited  by  Ernst  &  Young  and  they  issued  an  audited  report 
accordingly.  We,  as  the  Audit  Committee  of  the  Company,  have  reviewed  the  Business  Report,  Financial  Statements,  and 
proposal for earnings distribution and do not find any discrepancies. According to Article 14-4 of the Securities and Exchange 
Act and Article 219 of the Company Act, we hereby submit this report.

United Microelectronics Corporation

Chairperson of the Audit Committee: Cheng-Li Huang 

  March 6, 2019

188

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
      
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189

Financial Review 
           
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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(cid:3)
(cid:79)
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191191

Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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(cid:87)

(cid:3)
(cid:87)
(cid:82)
(cid:81)
(cid:3)
(cid:71)
(cid:81)
(cid:68)
(cid:3)
(cid:68)
(cid:81)
(cid:76)
(cid:75)
(cid:38)

(cid:3)
(cid:73)
(cid:82)
(cid:3)
(cid:70)
(cid:76)
(cid:79)
(cid:69)
(cid:88)
(cid:83)
(cid:72)
(cid:53)

(cid:17)
(cid:68)
(cid:81)
(cid:76)
(cid:75)
(cid:38)

(cid:3)
(cid:73)
(cid:82)
(cid:3)
(cid:70)
(cid:76)
(cid:79)
(cid:69)
(cid:88)
(cid:83)
(cid:72)
(cid:53)
(cid:3)
(cid:72)
(cid:75)
(cid:87)
(cid:3)
(cid:81)
(cid:76)
(cid:3)
(cid:71)
(cid:72)
(cid:76)
(cid:79)
(cid:83)
(cid:83)
(cid:68)
(cid:3)
(cid:71)
(cid:81)
(cid:68)
(cid:3)
(cid:71)
(cid:72)
(cid:87)
(cid:83)
(cid:72)
(cid:70)
(cid:70)
(cid:68)
(cid:3)
(cid:92)
(cid:79)
(cid:79)
(cid:68)
(cid:85)
(cid:72)
(cid:81)
(cid:72)
(cid:74)
(cid:3)
(cid:72)
(cid:86)
(cid:82)
(cid:75)
(cid:87)
(cid:3)
(cid:72)
(cid:85)
(cid:68)
(cid:3)
(cid:86)
(cid:87)
(cid:81)
(cid:72)
(cid:80)
(cid:72)
(cid:87)
(cid:68)
(cid:87)
(cid:86)
(cid:3)
(cid:79)
(cid:68)
(cid:76)
(cid:70)
(cid:81)
(cid:68)
(cid:81)
(cid:76)
(cid:73)
(cid:3)
(cid:71)
(cid:72)
(cid:87)
(cid:68)
(cid:71)
(cid:76)
(cid:79)
(cid:82)
(cid:86)
(cid:81)
(cid:82)
(cid:70)

(cid:28)
(cid:20)
(cid:19)
(cid:21)

(cid:3)
(cid:15)

(cid:3)

(cid:25)
(cid:75)
(cid:70)
(cid:85)
(cid:68)

    (cid:48)

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(cid:81)
(cid:68)
(cid:90)
(cid:76)
(cid:68)
(cid:55)

(cid:3)
(cid:15)

(cid:74)
(cid:81)
(cid:88)
(cid:82)
(cid:60)
(cid:9)

(cid:3)

(cid:3)
(cid:87)
(cid:86)
(cid:81)
(cid:85)
      (cid:40)

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
   
 
     
 
 
 
 
 
 
 
 
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194

United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 
For the years ended December 31, 2018 and 2017
(Expressed in Thousands of  New Taiwan Dollars, Except for Earnings per Share)

Operating revenues
    Sales revenues
    Less: Sales returns and discounts
        Net sales
    Other operating revenues
        Net operating revenues
Operating costs

    Costs of goods sold
    Other operating costs
        Operating costs
Gross profit
Operating expenses

    Sales and marketing expenses
    General and administrative expenses
    Research and development expenses
    Expected credit losses
        Subtotal
Net other operating income and expenses
Operating income
Non-operating income and expenses
    Other income
    Other gains and losses
    Finance costs
    Share of profit or loss of associates and joint ventures
    Bargain purchase gain
    Exchange gain, net
    Exchange loss, net
        Subtotal
Income from continuing operations before income tax
Income tax benefit (expense)
Net income
Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss
    Remeasurements of defined benefit pension plans
    Unrealized gains or losses on financial assets at fair value through other
      comprehensive income
    Gains or losses on hedging instruments which will not be reclassified
      subsequently to profit or loss
    Share of other comprehensive income (loss) of associates and joint ventures
      which will not be reclassified subsequently to profit or loss
    Income tax related to items that will not be reclassified subsequently
Items that may be reclassified subsequently to profit or loss
    Exchange differences on translation of foreign operations
    Unrealized gains or losses on available-for-sale financial assets
    Share of other comprehensive income (loss) of associates and joint ventures which
      may be reclassified subsequently to profit or loss
    Income tax related to items that may be reclassified subsequently
Total other comprehensive income (loss), net of tax
Total comprehensive income

    Net income attributable to:
        Stockholders of the parent
        Non-controlling interests

    Comprehensive income attributable to:
        Stockholders of the parent
        Non-controlling interests

    Earnings per share (NTD)
        Earnings per share-basic 
        Earnings per share-diluted 

Notes

4, 6(19), 7, 14

4, 6(4), 6(14), 6(18),
6(20), 7, 14

4, 6(3), 6(14), 6(18),
6(19), 6(20), 7, 14

4, 6(15), 6(21), 14

4
4, 6(22), 6(27), 7
6(22)
4, 6(8), 14

4,12
4,12

4, 5, 6(24), 14

6(23)

4, 5, 6(14)

4

4, 5, 6(24)

For the years ended December 31,

2018

2017

$

$          

143,786,087
(1,080,084)
142,706,003
8,546,568
151,252,571

144,454,670
(1,497,126)
142,957,544
6,327,162
149,284,706

(123,794,988)
(4,617,556)
(128,412,544)
22,840,027

(118,252,107)
(3,974,841)
(122,226,948)
27,057,758

(3,901,912)
(4,823,391)
(13,025,139)
(409,237)
(22,159,679)
5,116,884
5,797,232

1,391,376
(1,128,290)
(2,851,225)
(667,701)
-  
-  
(356,993)
(3,612,833)
2,184,399
458,653
2,643,052

(55,060)
1,454,018

(2,572)

(475,139)

112,384

(47,009)
-  
(23,942)

(4,233,830)
(4,239,713)
(13,669,589)
-  
(22,143,132)
1,653,695
6,568,321

875,587
1,001,679
(2,495,162)
276,962
5,130
1,565,905
-  
1,230,101
7,798,422
(1,167,157)
6,631,265

(184,186)
-  

-  

1,221

31,311

(5,975,203)
581,439
1,350,183

160,880
(4,034,355)
2,596,910

9,628,734
(2,997,469)
6,631,265

5,705,980
(3,109,070)
2,596,910

0.79
0.74

195

$

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$

4, 5, 6(24)

(12,736)
949,944
3,592,996

$              

$              

$              

7,072,990
(4,429,938)
2,643,052

$              

$              

8,126,828
(4,533,832)
3,592,996

4, 6(25)

$                       
$                       

0.58
0.55

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

Financial Review4
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United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 2018 and 2017
(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities:

    Net income before tax

    Adjustments to reconcile net income before tax to net cash provided by operating activities:

        Depreciation

        Amortization

        Expected credit losses

        Bad debt reversal

        Net loss (gain) of financial assets and liabilities at fair value through profit or loss

        Interest expense

        Interest income

        Dividend income

        Share-based payment

        Share of  loss (profit) of associates and joint ventures

        Gain on disposal of property, plant and equipment

        Gain on disposal of other assets

        Loss (gain) on disposal of investments

        Impairment loss on financial assets

        Impairment loss on non-financial assets

        Exchange loss (gain) on financial assets and liabilities

        Bargain purchase gain

        Amortization of deferred government grants

            Income and expense adjustments

        Changes in operating assets and liabilities:

            Financial assets and liabilities at fair value through profit or loss

            Contract assets

            Notes receivable and accounts receivable

            Other receivables

            Inventories

            Prepayments

            Other current assets

            Contract fulfillment costs

            Contract liabilities

            Notes and accounts payable

            Other payables

            Other current liabilities

            Net defined benefit liabilities

            Other noncurrent liabilities-others

                Cash generated from operations

            Interest received

            Dividend received

            Interest paid

            Income tax paid

                    Net cash provided by operating activities

(continued)

For the years ended December 31,

2018

2017

$             

2,184,399

$             

7,798,422

49,948,589

2,100,130

409,237

-

1,167,735

2,768,672

(789,001)

(602,375)

695,669

667,701

(136,743)

-

19,286

-

46,225

1,217,590

-

(3,885,722)

53,626,993

789,666

(357,515)

(1,382,668)

618,317

(46,497)

409,962

333,557

(448,933)

(3,020,517)

257,044

(426,302)

191,559

(26,405)

-

50,965,120

2,133,726

-

(1,752)

(598,270)

2,406,872

(353,159)

(522,428)

-

(276,962)

(82,397)

(6,601)

(1,276,956)

950,335

-

(2,432,098)

(5,130)

(1,469,616)

49,430,684

520,335

-

1,587,562

(261,834)

(1,565,132)

(2,014,104)

(2,383,660)

-

-

(185,907)

727,300

1,803,309

(14,562)

(209,250)

52,702,660

55,233,163

666,774

782,157

(2,221,301)

(995,314)

50,934,976

329,194

584,612

(1,905,718)

(1,766,856)

52,474,395

197

Financial Review             
               
                  
                              
               
               
                 
                 
                  
                  
                 
                              
                     
                              
                     
               
                              
              
             
                  
                 
              
                  
                   
                  
                  
                 
              
                  
                 
                  
                   
                              
             
                  
                  
              
                 
             
English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 2018 and 2017
(Expressed in Thousands of New Taiwan Dollars)

For the years ended December 31,

2018

2017

Cash flows from investing activities:

    Acquisition of financial assets at fair value through profit or loss

$               

(593,563)

$

    Proceeds from disposal of financial assets at fair value through profit or loss

    Acquisition of available-for-sale financial assets

    Proceeds from disposal of available-for-sale financial assets

    Acquisition of financial assets measured at cost

    Proceeds from disposal of financial assets measured at cost

    Acquisition of investments accounted for under the equity method

    Increase in prepayment for investments

    Proceeds from capital reduction and liquidation of investments

    Disposal of subsidiaries

    Derecognition of hedging financial assets and liabilities

    Acquisition of property, plant and equipment

    Proceeds from disposal of property, plant and equipment

    Increase in refundable deposits

    Decrease in refundable deposits

    Acquisition of intangible assets

    Government grants related to assets acquisition

    Increase in other noncurrent assets-others

    Decrease in other noncurrent assets-others

        Net cash used in investing activities

Cash flows from financing activities:

    Increase in short-term loans

    Decrease in short-term loans

    Proceeds from bonds issued

    Bonds issuance costs

    Redemption of bonds

    Proceeds from long-term loans

    Repayments of long-term loans

    Increase in guarantee deposits

    Decrease in guarantee deposits

    Cash dividends

    Treasury stock acquired

    Treasury stock sold to employees

    Acquisition of subsidiaries

    Change in non-controlling interests

        Net cash (used in) provided by financing activities

Effect of exchange rate changes on cash and cash equivalents

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

1,061

-

-

-

-

(840,000)

-

61,800

(9,813)

(2,572)

(138,022)

18,789

(998,216)

2,159,636

(14,419)

361

(204,280)

(17,200)

2,101,791

-

-

(19,590,075)

(44,236,276)

200,991

(1,674,984)

691,807

(838,675)

7,129,770

(36,440)

1,090

119,613

(109,627)

424,706

(1,283,938)

6,755,920

(30,294)

35,864

(15,499,603)

(35,415,592)

22,021,005

(34,309,253)

-

-

(7,500,000)

758,500

(2,638,697)

213,432

(125,301)

(8,557,684)

(6,148,273)

2,204,000

-

597,385

(33,484,886)

36,680

1,987,167

81,674,572

$           

83,661,739

$

48,804,321

(42,925,604)

13,700,000

(15,785)

(7,500,000)

12,000,708

(7,602,596)

194,555

(84,192)

(6,103,195)

-

-

(1,308,614)

1,994

9,161,592

(2,124,804)

24,095,591

57,578,981

81,674,572

198

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

United Microelectronics Corporation  |  Annual Report 2018                      
                              
                              
                              
                              
                              
            
                  
              
                  
                 
               
                   
                      
            
             
            
                              
                              
              
                  
              
                  
                 
              
              
               
                              
                  
            
                    
               
             
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United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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n
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N

3
3
6
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5

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N

3
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9
5
1

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N

2
4
3
,
4

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o
N

e
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o
N

-

-

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n
o
N

A
N

/

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D
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D
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(cid:3)
(cid:72)
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(cid:3)
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(cid:3)
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(cid:90)
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(cid:3)
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(cid:3)
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(cid:3)
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(cid:3)
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(cid:3)
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266

United Microelectronics Corporation  |  Annual Report 2018 
           
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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267

Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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(cid:3)
(cid:72)
(cid:69)
(cid:3)
(cid:92)
(cid:79)
(cid:69)
(cid:68)
(cid:81)
(cid:82)
(cid:86)
(cid:68)
(cid:72)
(cid:85)
(cid:3)
(cid:71)
(cid:79)
(cid:88)
(cid:82)
(cid:70)
(cid:3)
(cid:92)
(cid:72)
(cid:75)
(cid:87)
(cid:3)
(cid:15)
(cid:72)
(cid:87)
(cid:68)
(cid:74)
(cid:72)
(cid:85)
(cid:74)
(cid:74)
(cid:68)
(cid:3)
(cid:72)
(cid:75)
(cid:87)

(cid:17)
(cid:86)
(cid:87)
(cid:81)
(cid:72)
(cid:80)
(cid:72)
(cid:87)
(cid:68)
(cid:87)
(cid:86)
(cid:3)
(cid:79)
(cid:68)
(cid:76)
(cid:70)
(cid:81)
(cid:68)
(cid:81)
(cid:76)
(cid:73)
(cid:3)
(cid:92)
(cid:79)
(cid:81)
(cid:82)
(cid:3)
(cid:92)
(cid:81)
(cid:68)
(cid:83)
(cid:80)
(cid:82)
(cid:70)
(cid:3)
(cid:87)
(cid:81)
(cid:72)
(cid:85)
(cid:68)
(cid:83)

(cid:3)
(cid:72)
(cid:86)
(cid:72)
(cid:75)
(cid:87)
(cid:3)
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(cid:82)
(cid:3)
(cid:86)
(cid:76)
(cid:86)
(cid:68)
(cid:69)

(cid:3)
(cid:72)
(cid:75)
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(cid:81)
(cid:82)

(cid:3)
(cid:17)
(cid:85)
(cid:82)
(cid:85)
(cid:85)
(cid:72)
(cid:3)
(cid:85)
(cid:82)
(cid:3)
(cid:71)
(cid:88)
(cid:68)
(cid:85)
(cid:73)
(cid:3)
(cid:82)
(cid:87)
(cid:3)
(cid:72)
(cid:88)
(cid:71)
(cid:3)
(cid:85)
(cid:72)
(cid:75)
(cid:87)
(cid:72)
(cid:75)
(cid:90)

(cid:3)
(cid:15)
(cid:87)
(cid:81)
(cid:72)
(cid:80)
(cid:72)
(cid:87)
(cid:68)
(cid:87)
(cid:86)
(cid:86)
(cid:76)
(cid:80)

(cid:3)

(cid:3)
(cid:79)
(cid:68)
(cid:76)
(cid:85)
(cid:72)
(cid:87)
(cid:68)
(cid:80)
(cid:80)
(cid:82)
(cid:85)
(cid:73)
(cid:3)
(cid:72)
(cid:72)
(cid:85)
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(cid:69)
(cid:88)
(cid:83)
(cid:72)
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(cid:3)
(cid:72)
(cid:75)
(cid:87)

(cid:3)
(cid:81)
(cid:76)

(cid:3)
(cid:71)
(cid:72)
(cid:87)
(cid:83)
(cid:72)
(cid:70)
(cid:70)
(cid:68)
(cid:3)
(cid:92)
(cid:79)
(cid:79)
(cid:68)
(cid:85)
(cid:72)
(cid:81)
(cid:72)
(cid:74)
(cid:3)
(cid:86)
(cid:71)
(cid:85)
(cid:68)
(cid:71)
(cid:81)
(cid:68)
(cid:87)
(cid:86)
(cid:3)
(cid:74)
(cid:81)
(cid:76)
(cid:87)
(cid:76)
(cid:71)
(cid:88)
(cid:68)
(cid:3)
(cid:75)
(cid:87)
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(cid:90)

(cid:3)
(cid:72)
(cid:70)
(cid:81)
(cid:68)
(cid:71)
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(cid:82)
(cid:70)
(cid:70)
(cid:68)
(cid:3)
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(cid:3)
(cid:87)
(cid:76)
(cid:71)
(cid:88)
(cid:68)
(cid:3)
(cid:81)
(cid:68)
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(cid:82)
(cid:3)
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(cid:3)
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(cid:15)
(cid:68)
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(cid:75)
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(cid:85)
(cid:82)
(cid:87)
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(cid:3)
(cid:87)
(cid:81)
(cid:72)
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(cid:3)
(cid:73)
(cid:82)
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(cid:86)
(cid:87)
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(cid:71)
(cid:88)
(cid:36)
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(cid:3)
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268

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United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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(cid:74)
(cid:81)
(cid:88)
(cid:82)
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(cid:87)
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(cid:87)
(cid:79)
(cid:88)
(cid:86)
(cid:72)
(cid:85)
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(cid:15)
(cid:81)
(cid:82)
(cid:76)
(cid:87)
(cid:76)
(cid:86)
(cid:82)
(cid:83)
(cid:3)
(cid:79)
(cid:68)
(cid:76)
(cid:70)
(cid:81)
(cid:68)
(cid:81)
(cid:76)
(cid:73)
(cid:3)
(cid:72)
(cid:75)
(cid:87)
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(cid:87)
(cid:81)
(cid:72)
(cid:86)
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(cid:85)
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(cid:3)
(cid:82)
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(cid:3)
(cid:92)
(cid:79)
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(cid:82)
(cid:3)
(cid:71)
(cid:72)
(cid:71)
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(cid:72)
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(cid:81)
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(cid:3)
(cid:72)
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(cid:68)
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(cid:87)
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(cid:72)
(cid:80)
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(cid:68)
(cid:87)
(cid:86)
(cid:3)
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(cid:68)
(cid:76)
(cid:70)
(cid:81)
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(cid:81)
(cid:76)
(cid:73)
(cid:3)
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(cid:79)
(cid:81)
(cid:82)
(cid:3)
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(cid:81)
(cid:68)
(cid:83)
(cid:80)
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(cid:70)
(cid:3)
(cid:87)
(cid:81)
(cid:72)
(cid:85)
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(cid:83)
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(cid:74)
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(cid:92)
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(cid:70)
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(cid:3)
(cid:72)
(cid:75)
(cid:55)

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(cid:70)
(cid:76)
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(cid:69)
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(cid:83)
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(cid:53)
(cid:3)
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(cid:75)
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(cid:3)
(cid:81)
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(cid:3)
(cid:71)
(cid:72)
(cid:87)
(cid:83)
(cid:72)
(cid:70)
(cid:70)
(cid:68)
(cid:3)
(cid:92)
(cid:79)
(cid:79)
(cid:68)
(cid:85)
(cid:72)
(cid:81)
(cid:72)
(cid:74)
(cid:3)
(cid:86)
(cid:72)
(cid:70)
(cid:76)
(cid:87)
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(cid:68)
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(cid:87)
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(cid:82)
(cid:70)
(cid:70)
(cid:68)
(cid:3)
(cid:75)
(cid:87)
(cid:76)

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(cid:3)
(cid:72)
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(cid:81)
(cid:68)
(cid:71)
(cid:85)
(cid:82)
(cid:70)
(cid:70)
(cid:68)
(cid:3)
(cid:81)
(cid:76)
(cid:3)
(cid:86)
(cid:90)
(cid:82)
(cid:79)
(cid:73)
(cid:3)
(cid:75)
(cid:86)
(cid:68)
(cid:70)
(cid:3)
(cid:71)
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(cid:3)
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271

Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
English Translation of Parent Company Only Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION
PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME 
For the years ended December 31, 2018 and 2017
(Expressed in Thousands of  New Taiwan Dollars, Except for Earnings per Share)

Operating revenues
    Sales revenues
    Less: Sales returns and discounts
        Net sales
    Other operating revenues
        Net operating revenues
Operating costs

    Costs of goods sold
    Other operating costs
        Operating costs
Gross profit
Operating expenses

    Sales and marketing expenses
    General and administrative expenses
    Research and development expenses
    Espected credit losses
        Subtotal
Net other operating income and expenses
Operating income
Non-operating income and expenses
    Other income
    Other gains and losses
    Finance costs
    Share of profit or loss of subsidiaries, associates and joint ventures
    Exchange gain, net
    Exchange loss, net
        Subtotal
Income from continuing operations before income tax
Income tax benefit (expense)
Net income
Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss
    Remeasurements of defined benefit pension plans
    Unrealized gains or losses on financial assets at fair value through other
      comprehensive income
    Gains or losses on hedging instruments which will not be reclassified
      subsequently to profit or loss
    Share of other comprehensive income (loss) of subsidiaries, associates
      and joint ventures which will not be reclassified subsequently to profit or loss
    Income tax related to items that will not be reclassified subsequently
Items that may be reclassified subsequently to profit or loss
    Exchange differences on translation of foreign operations
    Unrealized gains or losses on available-for-sale financial assets
    Share of other comprehensive loss of subsidiaries, associates
      and joint ventures which may be reclassified subsequently to profit or loss
    Income tax related to items that may be reclassified subsequently
Total other comprehensive income (loss), net of tax
Total comprehensive income

    Earnings per share (NTD)
        Earnings per share-basic 
        Earnings per share-diluted 

For the years ended December 31,

Notes

2018

2017

4, 6(19), 7

$     

124,657,755
(1,015,210)
123,642,545
9,192,057
132,834,602

$     

126,841,507
(1,497,471)
125,344,036
6,835,162
132,179,198

(98,265,958)
(4,020,453)
(102,286,411)
30,548,191

(98,660,176)
(3,800,251)
(102,460,427)
29,718,771

(2,932,576)
(3,475,793)
(11,133,700)
(356,435)
(17,898,504)
140,550
12,790,237

944,738
(772,104)
(824,954)
(6,641,627)
712,366
-  
(6,581,581)
6,208,656
864,334
7,072,990

(55,060)

1,458,848

(2,572)

(479,969)

112,384

1,094,614
-  
(1,062,412)

(3,285,908)
(2,847,432)
(12,135,340)
-  
(18,268,680)
88,805
11,538,896

685,178
783,125
(979,485)
(985,703)
-  
(617,240)
(1,114,125)
10,424,771
(796,037)
9,628,734

(184,186)
-  

-  

1,221

31,311

(3,249,649)
1,304,433
(1,959,983)

(11,995)
1,053,838
8,126,828

$         

134,099
(3,922,754)
5,705,980

$         

$                   
$                   

0.58
0.55

$                   
$                   

0.79
0.74

4, 6(4), 6(14), 6(18),
6(20), 7

4, 6(14), 6(18), 6(19),
6(20), 7

4, 6(15), 6(21), 7

4
4, 6(22), 7
6(22)
4, 6(8)
4,12
4,12

4, 5, 6(24)

6(23)

4, 5, 6(14)

4

4, 5, 6(24)

4, 5, 6(24)

4, 6(25)

The accompanying notes are an integral part of the parent company only financial statements.

272

United Microelectronics Corporation  |  Annual Report 2018 
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273

Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
English Translation of Parent Company Only Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION
PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS
For the years ended December 31, 2018 and 2017
(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities:

    Net income before tax

    Adjustments to reconcile net income before tax to net cash provided by operating activities:

        Depreciation

        Amortization

        Expected credit losses

        Bad debt reversal

        Net loss (gain) of financial assets and liabilities at fair value through profit or loss

        Interest expense

        Interest income

        Dividend income

        Share-based payment

        Share of loss of subsidiaries, associates and joint ventures

        Gain on disposal of property, plant and equipment

        Gain on disposal of other assets

        Gain on disposal of investments

        Exchange gain on financial assets and liabilities

        Amortization of deferred income

            Income and expense adjustments

        Changes in operating assets and liabilities:

            Financial assets and liabilities at fair value through profit or loss

            Contract assets

            Notes receivable and accounts receivable

            Other receivables

            Inventories

            Prepayments

            Other current assets

            Contract fulfillment costs

            Contract liabilities

            Accounts payable

            Other payables

            Other current liabilities

            Net defined benefit liabilities

            Other noncurrent liabilities-others

                Cash generated from operations

            Interest received

            Dividend received

            Interest paid

            Income tax paid

                    Net cash provided by operating activities

(continued)

274

For the years ended December 31,

2018

2017

$                  

6,208,656

$                

10,424,771

36,634,963

1,894,471

356,435

-

896,806

763,080

(422,239)

(522,499)

695,669

6,641,627

(168,849)

-

-

(170,206)

(1,132,898)

45,466,360

6,177

(354,665)

(3,288,853)

483,890

(7,601)

(13,899)

(1,680,000)

(343,898)

(3,170,712)

461,121

(476,828)

167,726

(26,405)

4,815,200

48,246,269

427,175

1,187,648

(490,768)

(566,445)

48,803,879

41,613,009

1,960,307

-

(2,181)

(610,524)

936,528

(232,678)

(452,500)

-

985,703

(128,668)

(6,601)

(47,242)

(611,234)

(941,984)

42,461,935

470,627

-

3,697,292

(102,499)

(914,330)

(644,980)

(20,000)

-

-

(490,696)

244,309

1,834,180

(13,763)

3,855,650

60,802,496

197,708

1,176,674

(547,666)

(1,360,268)

60,268,944

United Microelectronics Corporation  |  Annual Report 2018                  
                  
                    
                    
                       
                                   
                                   
                          
                       
                      
                       
                       
                      
                      
                      
                      
                       
                                   
                    
                       
                      
                      
                                   
                          
                                   
                        
                      
                      
                   
                      
                  
                  
                           
                       
                      
                                   
                   
                    
                       
                      
                          
                      
                        
                      
                   
                        
                      
                                   
                   
                                   
                       
                      
                      
                       
                       
                    
                        
                        
                    
                    
                  
                  
                       
                       
                    
                    
                      
                      
                      
                   
                  
                  
English Translation of Parent Company Only Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION
PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS
For the years ended December 31, 2018 and 2017
(Expressed in Thousands of New Taiwan Dollars)

Cash flows from investing activities:

    Proceeds from disposal of available-for-sale financial assets

$                                 
-

$                       

40,802

    Acquisition of investments accounted for under the equity method

(17,709,460)

(14,557,510)

For the years ended December 31,

2018

2017

    Increase in prepayment for investments

    Proceeds from capital reduction and liquidation of investments

    Derecognition of hedging financial assets and liabilities

    Acquisition of property, plant and equipment

    Proceeds from disposal of property, plant and equipment

    Increase in refundable deposits

    Decrease in refundable deposits

    Increase in other receivables

    Decrease in other receivables

    Acquisition of intangible assets

    Government grants related to assets acquisition

    Increase in other noncurrent assets-others

    Decrease in other noncurrent assets-others

        Net cash used in investing activities

Cash flows from financing activities:

    Increase in short-term loans

    Decrease in short-term loans

    Proceeds from bonds issued

    Bonds issuance costs

    Redemption of bonds

    Proceeds from long-term loans

    Repayments of long-term loans

    Increase in guarantee deposits

    Decrease in guarantee deposits

    Cash dividends

    Treasury stock acquired

    Treasury stock sold to employees

        Net cash used in financing activities

Effect of exchange rate changes on cash and cash equivalents

Net (decrease) increase in cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

(132,937)

840,000

(2,572)

-

2,629,758

-

(10,291,299)

(18,378,148)

413,519

(1,537,579)

667,555

(4,688,320)

8,916,796

(838,675)

123,367

(36,440)

-

265,643

(89,242)

209,294

(3,997,116)

-

(1,241,444)

69,395

(30,294)

16,010

(24,276,045)

(35,062,852)

6,821,325

(12,647,575)

-

-

(7,500,000)

700,000

(474,356)

82,518

(125,466)

(8,557,684)

(6,148,273)

2,204,000

(25,645,511)

177,045

(940,632)

60,282,802

17,853,130

(17,612,790)

13,700,000

(15,785)

(7,500,000)

2,900,000

(7,371,578)

180,146

(83,697)

(6,103,195)

-

-

(4,053,769)

(1,232,733)

19,919,590

40,363,212

$                

59,342,170

$                

60,282,802

The accompanying notes are an integral part of the parent company only financial statements.

275

Financial Review                      
                                   
                    
                                   
                 
                 
                       
                       
                   
                        
                       
                       
                   
                   
                    
                                   
                      
                   
                       
                         
                        
                        
                                   
                         
                 
                 
                    
                  
                 
                 
                                   
                  
                                   
                        
                   
                   
                       
                    
                      
                   
                         
                       
                      
                        
                   
                   
                   
                                   
                    
                                   
                 
                   
                       
                   
                      
                  
                  
                  
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United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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(cid:38)
(cid:3)
(cid:72)
(cid:75)
(cid:87)
(cid:3)
(cid:81)
(cid:76)
(cid:3)
(cid:86)
(cid:72)
(cid:74)
(cid:81)
(cid:68)
(cid:75)
(cid:70)
(cid:3)
(cid:81)
(cid:82)
(cid:76)
(cid:87)
(cid:76)
(cid:86)
(cid:76)
(cid:88)
(cid:84)
(cid:70)
(cid:68)
(cid:3)
(cid:87)
(cid:86)
(cid:82)
(cid:83)
(cid:3)
(cid:86)
(cid:88)
(cid:79)
(cid:83)
(cid:3)
(cid:87)
(cid:86)
(cid:82)
(cid:70)
(cid:3)
(cid:87)
(cid:68)
(cid:3)
(cid:87)
(cid:72)
(cid:72)
(cid:75)
(cid:86)

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(cid:182)
(cid:92)
(cid:81)
(cid:68)
(cid:83)
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(cid:3)
(cid:86)
(cid:81)
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(cid:76)
(cid:87)
(cid:88)
(cid:69)
(cid:76)
(cid:85)
(cid:87)
(cid:86)
(cid:76)
(cid:39)

(cid:3)

(cid:3)
(cid:17)
(cid:72)
(cid:80)
(cid:82)
(cid:70)
(cid:81)
(cid:76)

(cid:3)
(cid:72)
(cid:89)
(cid:76)
(cid:86)
(cid:81)
(cid:72)
(cid:75)
(cid:72)
(cid:85)
(cid:83)
(cid:80)
(cid:82)
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(cid:3)
(cid:85)
(cid:72)
(cid:75)
(cid:87)
(cid:82)
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(cid:3)
(cid:86)
(cid:86)
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(cid:85)
(cid:82)
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(cid:76)
(cid:73)
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(cid:86)
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(cid:73)
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(cid:3)
(cid:72)
(cid:89)
(cid:76)
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Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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325

Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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United Microelectronics Corporation  |  Annual Report 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Company and Its Affiliated Enterprises Have Not Experienced 
Any Financial Difficulties During the Most Recent Year up to the 
Publication Date.

337

Financial ReviewUnited Microelectronics Corporation

Representative: Stan Hung