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United Microelectronics

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FY2019 Annual Report · United Microelectronics
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United Microelectronics Corporation
2019 Annual Report
Printed on February 26, 2020

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

Annual Report
2019

Spokesperson

Chitung Liu

Fab 8E

Securities Dealing Institution

17 Li-Hsin Rd., Hsinchu Science Park,  

Horizon Securities Co., Ltd.

Senior Vice President and  

Hsinchu, Taiwan 30078, R.O.C.

Chief Financial Officer 

886 (3) 578 2258

Stock Registration Department

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

886 (2) 2658 9168

Chitung_Liu@umc.com

Fab 8F

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

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 the USA:1 (651) 453 2128
http://www.adr.com

David Wong 

Finance Division

Manager

886 (2) 2658 9168

David_Wong@umc.com

Headquarters

3 Li-Hsin 2nd Rd., Hsinchu 

Science Park, Hsinchu, Taiwan 

30078, R.O.C.

886 (3) 578 2258

Taipei Office

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

ADR Exchange Marketplace

Southern Taiwan Science Park, Sinshih,  

Tainan, Taiwan 74147, R.O.C.

886 (6) 505 4888

Singapore Branch

3 Pasir Ris Drive 12, Singapore 519528

65 6213 0018

NYSE Euronext

11 Wall Street,

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

1 (212) 656 3000

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

Subsidiary in Mainland China

Marketplace

HJ

Singapore Exchange Securities 

Euro Convertible Bond Exchange 

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, P.R.C.

0512 65931299

Fab 8A

Subsidiary in Mainland China

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

USCXM

Trading Limited

2 Shenton Way 

#02-02 SGX Centre 1

Singapore 068804

65 6236 8888

http://www.sgx.com

Science Park, Hsinchu, Taiwan 

899 Wan Jia Chun Road, Xiang’an District, 

ECB Search Code: ISIN XS1228110000

30078, R.O.C.

886 (3) 578 2258

Xiamen, Fujian Province, P.R.C.

0592 7687888

Fab 8C & Fab 8D

Subsidiary in Japan

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

USJC

Science Park, Hsinchu, Taiwan 

3-1 Kinko-cho, Kanagawa-ku, Yokohama, 

30078, R.O.C.

886 (3) 578 2258

Kanagawa, Japan

81 45 620 2682

Wavetek

10 Chuangxin 1st Rd., Hsinchu Science Park, 

Baoshan Township, Hsinchu,  

Taiwan 30076, R.O.C.

886 (3) 578 1259

NexPower
2 Houke S. Rd., Central Taiwan Science Park, 

Houli District, Taichung, Taiwan 42152, R.O.C.

886 (4) 2580 8888

Auditors

Ernst & Young, Taiwan

Wan-Ju Chiu, Hsin-Min Hsu

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

Taipei, Taiwan 11012, R.O.C.

886 (2) 2757 8888

http://www.ey.com

Corporate Website

http://www.umc.com

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
97  Certified Public Accountant (CPA) Fee Information
97 
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, Production, and Sales
133  Employees
134  Environmental Expenditure Information
134  Labor Relations
138  Major Contracts

2

United Microelectronics Corporation  |  Annual Report 2019 
 
 
 
 
 
 
 
 
 
 
Financial Review 

183

184  Condensed Balance Sheets
186  Condensed Statements of Comprehensive Income
188  Financial Analysis
192  Audit Committee’s Review Report
193  Financial Statements – Consolidated
269 Financial Statements – Parent Company

Review of Financial Position, Operating  140  
Results, Risk Management

141  Financial Position
142  Financial Performance
143  Cash Flow
143  Major Capital Expenditures from Recent Years and  

Impact on Company’s Finance and Business

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

144  Risk Management and Evaluation
153  Other Necessary Supplements

Social Responsibility 

    15 4

155  Description of Corporate Social Responsibility

157  About Social Charity
163  Environmental Protection, Safety and Health  

Management Instructions

Special Disclosures 

    16 9

170  Summary of Affiliated Enterprises
182  Issuance of Private Placement Securities
182  Acquisition or Disposal of UMC Shares by Subsidiaries
182  Other Necessary Supplements
182  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  2019,  geopolitical  tension  and  a  constantly  changing 
environment surrounding international affairs resulted in 
a sharp decline in semiconductor demand. Although UMC 
continued to explore various avenues of growth to continue 
progressing our technologies, increase production capacity 
and  cultivate  new  customer  engagements,  the  difficult 
macro environment led to UMC’s 2019 revenue declining 
slightly  by 2%  over  the  prior  year.  Our  foundry  segment 
shipped  a  total  of 7.2  million 8 -inch  equivalent  wafers 
for the year, with capacity utilization rate at 89%. From a 
consolidated  basis,  UMC’s  annual  revenue  was  NT$148.2 
billion, gross profit margin was 14.4%, and operating profit 
margin was 3.2%. Profit attributable to the parent company 
was  NT$9.71  billion  or  an  earnings  per  share  of  NT$0.82. 
UMC’s  capital  expenditure  was  US$574  million,  mainly 
invested towards new R&D process equipment and capacity 
deployment of Fab 12A in Southern Taiwan Science Park, Fab 
12X in Xiamen and Fab 8N in Suzhou.
UMC  is  commit ted  to  prov iding  c ustomers  w ith  an 
extensive  offering  of  process  manufacturing  solutions 
by  collaborating  with  partners  across  the  supply  chain 
to  develop  process  technologies  and  expand  capacity. 
Future semiconductor demand will be driven by artificial 
intelligence (AI), Internet of Things (IoT), 5G communication 
(5G)  and  automotive  electronics  (AUTO).  We  will  achieve 
business  expansion  by  dif ferentiating  our  logic  and 
specialty technology solutions, with the latter being a core 
focus of UMC’s continuous investment strategy. In response 
to  market  demand,  UMC  has  diversified  its 12-inch  fabs 
to diversify risk, highlighted by the recent acquisition of 
USJC (United Semiconductor Japan Corporation). This 12-
inch wafer fab that will bring operating synergies through 
enhanced productivity by joining UMC’s network and supply 
chain  ecosystem  while  driving  our  long-term  growth  in 
specialty technology segments.

44
44

Looking  towards  the  f uture,  UMC  w ill  proceed  w ith 
the  business  strategy  of  strengthening  our  financial 
performance and securing future growth opportunities. 
UMC  management  team  will  focus  on:  (1)  Integrating 
organizational  ef fectiveness,  developing  technology, 
comprehensively improving quality and productivity, and 
pursuing  excellence  as  the  company’s  goal;  (2)  Working 
closely with the supply chain to improve product mix and 
market share to maintain stable profitability; (3) Continuing 
our  dedicat ion  to  c u stomer  ser v ice,  st rengthening 
sy nergies  and  prov iding  added  value,  grow ing  w ith 
customers, and creating win-win situations; (4) Enhancing 
the competitiveness of sustainable operations to protect 
shareholders’ best interests.

Advanced Technology Development

Research and Development has always been the focus of 
UMC’s operations. In 2019, UMC invested NT$11.86 billion 
in R&D, continuing to recruit and develop new R&D talent, 
which  led  to  fruitful  results  in  the  field  of  research  and 
development within advanced and specialty technologies.
Our  14FFC  (14nm  FinFET  Compact)  process  technology 
development  has  fulfilled  market  requirements  and  has 
been introduced for 5G and networking applications. The 

22nm  ultra-low  power  consumption  (22ULP)  and  ultra-
low leakage current (22ULL)  process platforms  have now 
completed  customer  product  verification,  which  can  be 
applied for semiconductor applications including Internet 
of  Things  (IoT),  mobile  devices,  automotive  electronics, 
and technologies such as analog, mixed signal, and RF. In 
addition, our 28nm high-performance computing (28HPC +) 
process will provide new business opportunities in the field 
of image signal processors (ISP) found in smartphones; these 
ICs  will  be  mass-produced  in  UMC’s  Taiwan  fab  in 2020. 
We also have a 28-nanometer millimeter-wave (mmWave) 
process that provides a low-power CMOS solution.

Specialty Technology Development

In  specialty  technology  applications,  UMC’s 28nm  high-
voltage technology entered volume production in 2019. UMC 
also introduced the industry’s first 40nm high-voltage driver 
IC process technology designed to complement organic light-
emitting displays (AMOLED). In addition, the development 
of 22nm high-voltage technology (22eHV) is in line with our 
customers’ expectations. Our world-class Radio Frequency 
Insulated Semiconductor (RFSOI) process technologies fulfill 
the stringent requirements of RF switches found in 4G & 5G 
mobile phones. At present, UMC’s 0.13 micron, 0.11 micron 
and 90nm RFSOI processes have entered mass production. 
We have started developing a 55nm RFSOI platform to ensure 
future growth momentum in this area. Utilizing embedded 
flash memory technology (eFlash), 55nm MCUs have entered 
mass  production  while  UMC’s 40nm  customer,  SST,  has 
completed yield and reliability verification. 28nm SST R&D 
progress is also in line with expectations, targeted to fulfill 
IoT  applications.  In  emerging  memory,  40nm  Resistive 
Random  Access  Memory  (ReRAM)  has  entered  the  small-
volume production stage. On our 22nm, Resistive Memory 
(ReRAM)  technology  and  Embedded  Magneto  Resistive 

5

Letter to Shareholders Random Access Memory  (eMRAM) process platforms can 
be applied to related products such as AI Internet of Things 
(AIoT). Lastly, UMC is actively investing in the development 
of gallium nitride (GaN) semiconductors to facilitate entry 
into high-performance power market segments.

Patents and Intellectual Property Rights

Facing  an  intensely  competitive  landscape,  UMC  has 
for t if ied  the  company ’s  patent  por t folio  to  protec t 
intellectual property rights. The total number of patents 
granted to UMC over the years reached 13,507, strengthening 
UMC strong foundation in process technology knowledge 
and intellectual property.
In 2019, a total of 515 domestic and foreign patents were 
obtained, including 345 US patents, 94 patents in Taiwan 
and 76 patents in mainland China. The growing number 
of  technology  patents  will  continue  to  create  additional 
competitive advantages for UMC to enhance value in the 
semiconductor supply chain.

Corporate Social Responsibility

Focus,  development  and  continuity  are  the  core  beliefs 
of  UMC  to  ensure  corporate  sustainability,  corporate 
governance and corporate social responsibility. To preserve 
the  best  interests  of  our  shareholders,  UMC’s  Board  of 
Directors  established  the  “Remuneration  Committee,  ” 
“Audit  Committee,  ”  “Capital  Budget  Committee”  and 
“Nomination Committee” to deliver objective performance 
evaluations  to  enhance  transparency  and  operational 
supervision. In 2019, UMC was recognized through a number 
of  distinguished  awards  and  honors  from  domestic  and 
foreign institutions and government agencies, highlighting 
UMC’s continuous commitment in the path of sustainable 
foundry operations.

66

United Microelectronics Corporation  |  Annual Report 2019Awards  and  Recognitions  received  in  environmental 

protection, safety and health:

Selected as a “DJSI-World” constituent on the Dow Jones 
Sustainability Indices for the 12th consecutive year
Awarded highest honors in Corporate Governance
Achieved  Leadership  Status  on  CDP’s  Climate  Change 
Assessment Program for four consecutive years
Achieved  the  highest  Platinum  honors  for  the  “Top  50 
Corporate  Sustainability  Report  Award”  and  the  first 
“English  Repor tage  Award.  ”  Awarded  the  “National 
Enterprise  Env ironmental  Protec tion  Award”  by  the 
Environmental  Protection  Administration  of  Executive 
Yuan, R.O.C for seventeen consecutive years
Awarded “Energy Saving Leadership Award” by Bureau of 
Energy, Ministry of Economic Affairs

We  have  strived  to  enhance  UMC’s  financial  structure, 
diversify  our  customer  base,  and enhance development 
with  world-class  manufacturing  capabilities.  We  are 
convinced  that  the  implementation  of  the  company’s 
strategy  will  elevate  UMC’s  competitiveness.  With  the 
joint effort of all our colleagues, the team will continue to 
provide better foundry services to improve the company’s 
operating performance and maximize benefits for UMC 
shareholders.  We  would  like  to  express  our  deepest 
gratitude to all shareholders and wish everyone happiness 
and health.

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 2019Corporate Profile and Date of Establishment

UMC  is  a  leading  global  semiconductor  foundry.  The 

UMC  has  12  wafer  fabs  located  throughout  Asia,  including  

Company provides high quality IC production with a focus 

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

on both logic and specialty technologies to serve every major 

inch fab, and has been in volume production for customer 

sector  of  the  electronics  industry.  UMC’s  comprehensive 

products  since  2002.  This  advanced  facility  consists  of 

technology  and  manufacturing  solutions  include  logic/RF, 

Phases  1-6  and  is  currently  manufacturing  customer 

embedded high voltage, embedded flash, RFSOI/BCD on 8” 

products  using  28-nanometer  High-K/Metal  gate  and 

&  12”  wafers  and  IATF-16949  automotive  manufacturing 

14-nanometer  FinFET  technologies.  UMC’s  second  12-

certification for all wafer fabs.

inch  fab,  Fab  12i,  is  located  in  Singapore.  This  facility  is 

Founded in 1980 as Taiwan’s first semiconductor company, 

our  specialty  technologies  center  that  provides  highly 

UMC  is  a  foundry  leader.  UMC’s  comprehensive  foundry 

specialized  processes  on  12-inch  manufacturing  to  serve  a 

solutions  enable  chip  designers  to  leverage  the  strength 

diverse range of product applications. United Semi, located 

of  the  company’s  leading-edge  processes,  which  include 

in  Xiamen,  China,  is  southern  China’s  first  12-inch  foundry 

28-nanometer  High-K/Metal  Gate,  14-nanometer  FinFET, 

fab  and  began  volume  production  in  2016.  United  Semi 

mixed  signal/RFCMOS,  and  a  wide  range  of  specialty 

serves  China’s  vast  IC  market  and  provides  high  quality, 

technologies.

geographically  diversified  manufacturing  for  our  foundry 

UMC led the development of the commercial semiconductor 

customers.  Japan-based  USJC,  fully  acquired  in  October 

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

of  2019,  is  UMC’s  fourth  300mm  fab.  USJC  offers  foundry 

foundry services, as well as the first semiconductor company 

volume  production  for  mature  specialty  nodes  ranging 

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

from 90-nanometer to 40-nanometer.

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

In  addition,  UMC’s  manufacturing  expertise  and  40years 

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

experience ensure industry-leading cycle times and defect 

needs  of  its  global  customer  base.  UMC  will  continue  to 

densities.  Comprehensive  process  control  systems  with 

provide  customers  with  robust  process  technologies  and 

advanced  methodologies  and  a  strong  engineering  team 

comprehensive  foundry  solutions,  enabling  customers  to 

support  fast  product  ramp.  UMC’s  advanced  automation, 

continuously  strengthen  their  competitive  advantage  in 

mature defect density, fast cycle times and ample capacity 

today’s rapidly changing industry. 

enable UMC to provide the most competitive manufacturing 

advantages for our foundry customers.

Company establishment date: May 22, 1980.

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 started mass production

January, 1996 

0.35-micron technology process started production

October, 1997  

0.25-micron technology process started production

April, 1998 

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

December, 1998 

  Acquired Nippon Steel Semiconductor Corp. fab  

(renamed UMCJ in 2001)

March, 1999 

0.18-micron technology process started production

November, 1999 

  Official construction began 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 0.13-micron 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 started mass production

May, 2004 

90nm process was fully verified and started mass production

July, 2004 

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

December, 2004 

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

10

United Microelectronics Corporation  |  Annual Report 2019 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June, 2005 

  Manufactured the first 65nm customer IC

August, 2005  

90nm wafer shipments exceeded 100,000

June, 2006 

Became 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 Tainan Science Park

September, 2008 

Listed as a constituent stock by Dow Jones Sustainability Indexes

October, 2008 

  Announced foundry industry's first 28nm SRAMs

April, 2009 

  Delivered customer ICs produced on its high performance 40nm  

logic technology

December, 2009 

  Announced completion of tender offer to UMC Japan

May, 2010 

Celebrated 30th Anniversary

December, 2010 

12-inch fab Fab 12A Phase 3 began production

October, 2011  

28nm process began 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   

Joined Fujitsu’s new foundry company 

March, 2015 

  Groundbreaking of United Semi (Xiamen) Fab 

November, 2016 

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

February, 2017 

Entered mass production for 14nm customer ICs 

June, 2018 

Board approved 100% acquisition of MIFS fab in Japan from Fujitsu 

September, 2019 

Selected as a DJSI Global Component for 12th Consecutive Year

October,  2019 

  Acquired 100% of MIFS 300mm fab, renamed USJC 

11

Corporate Profile 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12

United Microelectronics Corporation  |  Annual Report 2019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 
97 
97 
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,  and  Asia,  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 operational management and  
  market development, and provide technical support and services.
•	 Under take  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,  combined  IoT,  big  data  
and artificial intelligence and integrated 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  
of  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 2019 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate & 

Manufacturing 

Operation 

Planning

Resource 

Integration

Finance

Corporate 

Legal, IP & 

Development 

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 plant operations, plant expansion  
  planning and environmental safety and risk management.

Finance

•	 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  

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

ventures. 

Corporate Development

•	 Responsible for corporate development and strategy planning.

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.

Auditing
•	 Responsible for assisting the Board of Directors and managers to  
independently  and  objectively  assess  the  effectiveness  of  
  designs and implementation of internal control system. 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

0.34

Independent 
Director

R.O.C.

Cheng-Li 
Huang

Male

2018.06.12
<2009.06.10>

2021.06.11

0

0

0

0

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

16

United Microelectronics Corporation  |  Annual Report 2019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, UMC Capital Corp.; 
Director, United Microelectronics (Europe) B.V.; 
Director, UMC Capital (USA);
Director, UnitedDS Semiconductor (Shandong) Co., Ltd.

0

0

0

0

0

0

0

0

Certified Public Accountant, Zheng Ji 
Accounting Firm
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

Emeritus Professor, 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Directors’ Information (Continue)

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

0.11

2021.06.11

441,371,000

3.50

441,371,000

3.76

R.O.C.

Representative:
SC Chien

Male

2018.06.12
<2016.03.01>

2021.06.11

1,894,648

0.02

7,894,648

0.07

Director

R.O.C.

N/A

Silicon 
Integrated 
Systems Corp.

2018.06.12
<2005.06.13>

2021.06.11

315,380,424

2.50

285,380,424

2.43

U.S.A.

Representative:
Jason Wang

Male

2018.06.12
<2015.06.09>

2021.06.11

0

0

10,200,000

0.09

Note 1:  Present shareholding figures are actual number of shares held on January 31, 2020.

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 2019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.

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, UMC Capital Corp.

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

Note 4: Directors did not hold shares through other parties.

Note 5:  Present Shareholding figures consist of shares under Trust with Discretion Reserved.

Note 6: Presidents and Chairman are not the same person, spouses or relatives within the first degree of kinship.

19

Corporate Governance ReportMajor Shareholders of UMC’s Institutional Shareholders

Name of Institutional Shareholders Major Shareholders (Holding Percentage)

Hsun Chieh Investment Co., Ltd.

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

Silicon Integrated Systems Corp.

UMC (20.20%); Hsun Chieh Investment Co., Ltd. (1.54%); Hsing-Sen Liu (1.43%); JPMorgan Chase Bank N.A., 
Taipei Branch in custody for Vanguard Total International Stock Index Fund, a series of Vanguard Star 
Funds (1.13%); Vanguard Emerging Markets Stock Index Fund, a series of Vanguard International Equity 
Index Funds (0.75%); Liang Xun Investment Co., Ltd. (0.63%); Zhi-Wei Wu (0.59%); De-Chang Wu (0.54%); 
Hua-Rong Lian (0.54%); Wen-Chi Chen (0.52%)

Major Shareholders of UMC’s Major Institutional Shareholders

Name of Institutional Shareholders Major Shareholders (Holding Percentage)

Shieh 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%)

Liang Xun Investment Co., Ltd.

Tsai- Feng H ou (23.42%); C hi- C hu an Hu ang (23.42%); Liang - Hsun Hu ang (17.72%); 
Hsiang -Shu Hu ang (17.72% ); Liang - Hsu an Hu ang (17.72%)

20

United Microelectronics Corporation  |  Annual Report 2019Directors’ Professional Knowledge and Independence Information

Criteria

Name

Stan Hung

SC Chien

Jason Wang

Cheng-Li Huang

Wenyi Chu

Lih J. Chen

Jyuo-Min Shyu

Chung Laung Liu

Ting-Yu Lin

Independence Status (Note)

1

2

3

4

5

6

7

8

9

10 11

12

Number of 
Companies 
also Serves as 
Independent 
Director for

Five or More Years Experience or Professional 
Qualification
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

 Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

-

-

-

-

-

-

-

-

-

-

0

0

0

0

0

0

1

4

0

Note:  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 who serves concurrently as an independent director of its parent company, subsidiary, or subsidiary of the same parent  

 company  in  accordance  with  the  laws  of  Taiwan  or  with  the  laws  of  the  country  of  the  parent  company,  subsidiary  or  subsidiary  of  the  same  

parent company).

(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  managers  specified  in  the  

column (1)or any person specified in the column(2)and(3).

(5)  Is  not  a  director,  supervisor  or  employee  of  a  legal  entity  which  directly  owns  more  than 5%  of  the  Company’s  issued  shares  or  are  the  top  five  

owners of the Company’s issued shares, nor a director, supervisor or employee of a legal entity which designates a representative to serve as a  

 director or supervisor of the Company in accordance with Article 27, paragraph 1 or 2 of the Company Act (the same does not apply, however, in  

cases where the person is an independent director of the Company who serves concurrently as an independent director of its parent company,  

subsidiary,  or  subsidiary  of  the  same  parent  company  in  accordance  with  the  laws  of  Taiwan  or  with  the  laws  of  the  country  of  the  parent  

company, subsidiary or subsidiary of the same parent company).

(6)  Is not a director, supervisor or employee of other company, and more than half of directors or voting shares of other company are controlled by  

the same person (the same does not apply, however, in cases where the person is an independent director of the Company who serves concurrently  

as an independent director of its parent company, subsidiary, or subsidiary of the same parent company in accordance with the laws of Taiwan or  

with the laws of the country of the parent company, subsidiary or subsidiary of the same parent company).

(7)  Is not a director, supervisor or employee of other company, and Chairman, President or Manager with equivalent position of other company are the  

same  person  or  spouse  (the  same  does  not  apply,  however,  in  cases  where  the  person  is  an  independent  director  of  the  Company  who  serves  

concurrently as an independent director of its parent company, subsidiary, or subsidiary of the same parent company in accordance with the laws  

of Taiwan or with the laws of the country of the parent company, subsidiary or subsidiary of the same parent company).

(8)  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 (the same does not apply, however, in cases where a company owns more than 20% but less than 50% of the Company’s issued  

shares  and  the  person  is  an  independent  director  of  the  Company  who  serves  concurrently  as  an  independent  director  of  its  parent  company,  

subsidiary, or subsidiary of the same parent company in accordance with the laws of Taiwan or with the laws of the country of the parent company,  

subsidiary or subsidiary of the same parent company).

(9)  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  auditing  or  services  of  finance,  business  consult  and  legal  affairs  for  which  the  accumulated  

remuneration  in  the  past  two  years  does  not  exceed  NTD  500,000,  provided  that  this  restriction  does  not  apply  to  any  member  of  the  

 compensation  committee,  public  tender  offer  review  committee,  or  special  committee  on  mergers  and  acquisitions  who  exercises  powers  

pursuant to related regulation such as the “Securities and Exchange Act” or the “Business Mergers And Acquisitions Act.”

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

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

(12)  Is not a legal entity owner 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

0.34

1,269,435

0.01

President

R.O.C.

SC Chien

Male

2004.1 1 . 23

7,894,648

0.07

President

U.S.A.

Jason Wang

Male

201 4 .12.24

10,200,000

0.09

Executive Vice 
President

Senior Vice 
President

Senior Vice 
President & Chief 
Financial Officer

Senior Vice 
President & 
General Counsel

R.O.C.

Ming Hsu

Male

201 5 . 06.08

1,873,000

0.02

R.O.C.

Oliver Chang

Male

202 0 . 02.26

462,589

0.00

R.O.C.

Chitung Liu

Male

200 5 . 10.20

3,340,217

0.03

R.O.C.

Lucas S Chang

Male

201 8 .01. 01

900,000

0.01

0

0

0

0

0

0

0

0

0

0

0

0

Vice President

R.O.C.

TS Wu

Male

2013 .01.01

1,009,809

0.01

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

1,526,863

0.01

Vice President

R.O.C.

G C Hung

Male

201 5 . 01.28

1,500,791

0.01

Vice President

R.O.C.

Wenchi Ting

Male

201 7. 01.03

1,350,000

0.01

0

0

0

0

0

0

0

0

22

United Microelectronics Corporation  |  Annual Report 2019Experience/Education

Selected Current Position at Other Companies

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

President, UMC
Bachelor in Chemical Engineering,  
National Taiwan University

President, UMC
Business Administration,  
San Jose State University

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

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

Director, Fortune Venture Capital Corp.; Director, TLC Capital Co., Ltd.;  
Director, Wavetek Microelectronics Corporation; Director, UMC Capital Corp.

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

Director, United Semiconductor Japan Co., Ltd.

Senior Vice President, UMC
Bachelor in Physics, Chinese Culture University

None

Senior Vice President &  
Chief Financial Officer, UMC
EMBA in Business Administration,  
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, Sino Paragon Limited; Director, United Semiconductor Japan Co., Ltd.

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

Director, Alpha and Omega Semiconductor Limited

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

Director, HeJian Technology (Suzhou) Co., Ltd.

None

Director, Asia Pacific Microsystems, Inc.

23

Corporate Governance ReportManagers’ Information	(Continue)

Title

Nationality Name

Gender Date Elected 

Present Shareholding

(Date 
Assumed)

Common 
Shares

%

Common 
Shares

Spouse &  
Minor Shareholding

Vice President

R.O.C.

Jerry CJ Hu

Male

2013 .04.02

1,045,000

0.01

Vice President

R.O.C.

Y S Shen

Male

201 4 .01.13

975,000

0.01

Vice President

R.O.C.

Steven S Liu

Male

201 7.04.24

  900,000

 0.01

0

0

 0

Vice President

R.O.C.

SR Sheu

Male

2008.07.16

1,418,892

0.01

786,017

0.01

Vice President

R.O.C.

M L Liao

Male

2008.07.16

3,540,809

0.03

199,138

0.00

Vice President

R.O.C.

S S Hong

Male

2013 .01.01

1,066,406

0.01

Vice President

R.O.C.

Francia Hsu

Female

2016 . 03.16

960,000

0.01

0

0

0

R.O.C.

Eric Chen

Male

2 0 1 1 . 02.14

1,250,000

0.01

R.O.C.

Johnson Liu

Male

20 1 4 .11.04

506, 413

0.00

1,631

R.O.C.

Victor Chuang

Male

2 0 1 9.03.28

364,671

0.00

13,943

R.O.C.

Chuck Chen

Male

2 0 1 9.03.28

508,201

0.00

R.O.C.

S F Tzou

Male

2013.01.01

1,879,108

0.02

0

0

%

0

0

0 

0

0

0

0.00

0.00

0

0

R.O.C.

Le Tien Jung

Male

2013.01.01

850,000

0.01

20,000

0.00

R.O.C.

Yau Kae Sheu

Male

2014.01.13

850,000

0.01

0

0

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 2019Experience/Education

Selected Current Position at Other Companies

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

None

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

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

Director, Faraday Technology Corporation

None

None

None

Chairman, United Semiconductor Japan Co., Ltd.

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

None

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

Associate Vice President, UMC
Bachelor in Physics, Tamkang University

Associate Vice President, UMC
Bachelor in Electrical Engineering,  
National Cheng Kung University

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

Director, Best Elite International Limited

None

None

None

None

None

None

25

Corporate Governance ReportManagers’ Information	(Continue)

Title

Nationality Name

Gender Date Elected 

Present Shareholding

(Date 
Assumed)

Spouse &  
Minor Shareholding

Common 
Shares

%

Common 
Shares

%

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

R.O.C.

J Y Wu

Male

2014.05.01

850, 1 9 1

0.01

587

0.00

R.O.C.

Osbert Cheng

Male

2014.08.01

850,938

0.01

0

0

R.O.C.

Steven Hsu

Male

2016.03.16

850,000

0.01

2,889

0.00

Singapore

Purakh Raj Verma Male

2017.08.09

R.O.C.

Yanan Mou

Male

2019.07.01

 0

 0

 0

 0

0 

0 

 40,146

0.00 

R.O.C.

C Y Hsu

Male

20 1 7. 0 4 .1 7

4,267

0.00

R.O.C.

Remi Yu

Male

2019.1 1 . 1 5

120,000

0.00

R.O.C.

Michael CY Wang Male

2019.1 2 . 3 1

0

0

R.O.C.

Ji Fu Kung

Male

2013.01.01

850,741

0.01

R.O.C.

C P Yen

Male

2015.09.16

952,645

 0.01

0

0

0

0

0

0

0

0

0

0 

R.O.C.

Mindy Lin

Female

2018.05.14

1,227,925

 0.01

781,408

0.01 

R.O.C.

Pang Min Wang Male

2018.09.14

418,126

0.00

16

0.00

Former Associate 
Vice President

R.O.C.

T W Liu

Male

2015.09.16

N/A

N/A 

 N/A

 N/A

Former Associate 
Vice President

R.O.C.

Chih Chong 
Wang

Male

2018.01.04

N/A

N/A 

 N/A

 N/A

Note 1: T W Liu and Chih Chong Wang, former managers, were dismissed in 2019.

Note 2: Present shareholding figures are actual number of shares held on January 31, 2020.

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.

Note 6: Present shareholding figures consist of shares under Trust with Discretion Reserved.

Note 7: Presidents and Chairman are not the same person, spouses or relatives within the first degree of kinship.

26

United Microelectronics Corporation  |  Annual Report 2019Experience/Education

Selected Current Position at Other Companies

Associate Vice President, UMC
Master in Physics, Tamkang University

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

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

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

Associate Vice President, UMC
Master in Electrical Engineering,
State University of New York at Stony Brook

Associate Vice President, UMC
EMBA, National Chiao Tung University

Associate Vice President, UMC
Bachelor in Electrophysics,  
National Chiao Tung University

Associate Vice President, UMC
Master in Chemical Engineering,  
Cornell 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

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

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

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

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

None

None

None

None

None

None

None

None

None

None

None

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

 Director's Remuneration

Base Compensation (A)

Severance Pay and 
Pensions(B)

Compensation to 
Directors(C)

Business Execution 
Expenses(D)

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

The
Company

The
Company

Companies
 in the
 Consolidated 
Financial 
Statements

The
Company

Companies
 in the
 Consolidated 
Financial 
Statements

The
Company

Companies
 in the
 Consolidated 
Financial 
Statements

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

 0

1,037  

 0

0 

10,259

21,259

7,080

7,170

0.18

0.30

Director

Ting-Yu Lin

Director

Director

Hsun Chieh 
Investment Co., Ltd.

Representative:
SC Chien

Silicon Integrated 
Systems Corp.

Representative:
Jason Wang

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 2019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

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 (%)

The
Company

Companies in the  
Consolidated                              
Financial Statements

The
Company

Cash

Stock

Cash

Stock

Companies in 
the Consolidated                              
Financial 
Statements

In Thousand NTD

Compensation 
from
Other Non- 
Consolidated
Entities
Invested
by the
Company

39,155

47,959

290

290

9,360

0

9,360

0

0.68

0.90

1,680 

29

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

Remuneration Range for Each 
Director in the
Company

Names of Directors

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

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

The
Company

The
Company

Companies
 in the
Consolidated 
Financial 
Statements

Companies
 in the
 Consolidated 
Financial 
Statements

Lower than NTD 1,000,000

NTD 1,000,000 (inclusive)~  
NTD 2,000,000 (exclusive)

NTD 2,000,000 (inclusive)~  
NTD 3,500,000 (exclusive)

Jason Wang
SC Chien

Stan Hung
Hsun Chieh Investment 
Co., Ltd.
Silicon Integrated 
Systems Corp.

Cheng-Li Huang
Wenyi Chu
Lih J. Chen
Jyuo-Min Shyu
Chung Laung Liu
Ting-Yu Lin

NTD 3,500,000 (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

Hsun Chieh 
Investment Co., Ltd.
Silicon Integrated 
Systems Corp.

Hsun Chieh Investment 
Co., Ltd.
Silicon Integrated 
Systems Corp.

Hsun Chieh Investment 
Co., Ltd.
Silicon Integrated 
Systems Corp.

Cheng-Li Huang
Wenyi Chu
Lih J. Chen
Jyuo-Min Shyu
Chung Laung Liu
Ting-Yu Lin

Cheng-Li Huang
Wenyi Chu
Lih J. Chen
Jyuo-Min Shyu
Chung Laung Liu
Ting-Yu Lin

Cheng-Li Huang
Wenyi Chu
Lih J. Chen
Jyuo-Min Shyu
Chung Laung Liu
Ting-Yu Lin
Jason Wang
SC Chien

 Stan Hung

 Stan Hung 

 Jason Wang
SC Chien

Stan Hung
SC Chien

Jason Wang

Total

11

11

11

11

30

United Microelectronics Corporation  |  Annual Report 2019  
  
 
  
 
 
 
  
  
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

71,362

90,924

2,147

2,147

91,494

99,911

Chairman & Chief 
Strategic Officer

Stan Hung

President

President

Executive Vice 
President

Senior Vice 
President

Senior Vice 
President &  
Chief Financial 
Officer

Senior Vice 
President & 
General Counsel

SC Chien

Jason Wang

Ming Hsu

Oliver Chang

Chitung Liu

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 Hong

Vice President

Francia Hsu

Vice President 
& Chief Human 
Resources Officer

Eric Chen

32

United Microelectronics Corporation  |  Annual Report 2019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

41,930

0

41,930

0

2.13

2.42

   2,995

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

Lower than NTD 1,000,000

NTD 1,000,000 (inclusive)~  
NTD 2,000,000 (exclusive)

NTD 2,000,000 (inclusive)~  
NTD 3,500,000 (exclusive)

NTD 3,500,000 (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

The Company

 Oliver Chang

Names of Presidents and  
Vice Presidents

Companies in the Consolidated                              
Financial Statements

Oliver Chang 

Lucas S Chang, M C Lai, G C Hung, Wenchi Ting  
Y S Shen, SR Sheu, M L Liao, S S Hong 
Francia Hsu, Eric Chen

M C Lai, G C Hung, Wenchi Ting, Y S Shen
SR Sheu, M L Liao, S S Hong
Francia Hsu, Eric Chen

 Stan Hung, Ming Hsu, Chitung Liu, TS Wu
C C Hsu, Jerry CJ Hu, Steven S Liu

Stan Hung, Chitung Liu, TS Wu
C C Hsu, Jerry CJ Hu, Steven S Liu

SC Chien, Jason Wang

SC Chien, Ming Hsu, Lucas S Chang

 Jason Wang

20

20

34

United Microelectronics Corporation  |  Annual Report 2019  
 
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

Executive Vice President

Ming Hsu

Senior Vice President

Oliver Chang

Senior Vice President & 
Chief Financial Officer

Senior Vice President & 
General Counsel

Chitung Liu

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 
Human Resources 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 Hong

Francia Hsu

Eric Chen

Associate Vice President

Johnson Liu

Associate Vice President

Victor Chuang

Associate Vice President

Chuck Chen

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

Yanan Mou

Associate Vice President

C Y Hsu

Associate Vice President

Remi Yu

Associate Vice President Michael CY Wang

Associate Vice President

Ji Fu Kung

Associate Vice President

C P Yen

Associate Vice President Mindy Lin

Associate Vice President

Pang Min Wang

Former Associate Vice 
President

Former Associate Vice 
President

T W Liu

Chih Chong Wang

0

65,626

65,626

0.68

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 (%)

2019

2018

The Company

Companies in 
the Consolidated                              
Financial Statements

The Company

Companies in 
the Consolidated                              
Financial Statements

9,707,614

9,707,614

7,072,990

7,072,990

0.18

2.13

0.30

2.42

0.19

8.06

0.21

8.52

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

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

Bonus.

Note  2:Relevant  information  during 2018  and  2019  were  prepared  in  accordance  with  International  Financial  Reporting  Standards  which  are  endorsed  by  

Financial Supervisory Commission.

The Company’ s compensation for Directors and Executive officer’s is based on UMC’s Articles of Incorporation and formulations, 

and is distributed in proper ratios.

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

with Business Performance and Future Risks.

Policy  for  Directors’  (Including  Independent  Directors’) 

UMC  shall  assess  the  performance  of  directors  and  officers 

Compensation

according  to  the  Rules  for  Performance  Assessment  of 

Pursuant  to  UMC’s  Articles  of  Incorporation,  Article  21-1, 

the  Board  of  Directors  and  the  Performance  Appraisal  for 

the  Company  shall  allocate  no  more  than  0.1%  of  profit  as 

employees  of  UMC,  in  order  to  decide  their  compensation. 

directors’  (including  Independent  Directors’)  compensation 

An  adequate  compensation  scheme  will  be  calculated 

for each profitable fiscal year after offsetting any cumulative 

by  referencing  the  Company’s  operation  results,  future 

losses. Directors (including Independent Directors) may only 

risks,  corporate  strategies, 

industry  trends,  and  also 

receive  compensation  in  cash.  In  accordance  with  Article 

individual  contribution.  The  performance  assessment 

17,  remunerations  for  all  directors  (including  Independent 

and  compensation  proposals  were  reviewed  and  approved 

Directors) shall be decided by the Board of Directors authorized 

by  Nominating  Committee,  Remuneration  Committee 

by a meeting of shareholders according to involvements and 

and  Board  of  Directors.  The  Company  will  review  the 

contributions to the Companies’ operation and at the normal 

remuneration  policy  foresaid  based  on  macroeconomics  

rate adopted by other firms of the same industry.

and  business  strategies 

to  achieve  both  corporate 

sustainability and the interests of stakeholders.

Policy for Management Team’s Compensation 

The Company annually evaluates its salary level with similar 

industries  to  ensure  the  Company’s  salary  is  competitive. 

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 2019 
 
 
37

Corporate Governance ReportUnited Microelectronics Corporation  |  Annual Report 2019

Corporate Governance Practices
Information of Board Meeting Operation

Board Meetings were held 6 times in 2019; all independent directors attended each meeting in person; the average attendance 

rate of all directors was 100%; the attendances of directors were as follows:

Title

Name

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

Director

Hsun Chieh Investment Co., Ltd.

Representative:
SC Chien

Director

Silicon Integrated Systems Corp.

Representative:
Jason Wang

Other mentionable items:

Attendance in 
Person

By Proxy

Attendance Rate (%)

Remarks

6

6

6

6

6

6

6

6

6

0

0

0

0

0

0

0

0

0

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

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 41-43 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)  Proposals  for  retroactive  recognition  of  UMC’s  disposal  of  Machinery  and  Equipment  to  United  Semiconductor  

(XIAMEN)  Co.,  Ltd.  and  UMC's  Singapore  branch  to  lend  funds  to  United  Semiconductor  (XIAMEN)  Co.,  Ltd.  on  March  

  6, 2019: 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 UMC’s donation to UMC Science and Culture Foundation on March 6, 2019: 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.

(3) Proposal  for  approving  the  distributable  compensation  for  managerial  officers  on  March  6,  2019,  June  19,  2019  and  

  December  18,  2019:  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.

(4) Proposal for approving to adjust the attendance fee of the Audit Committee on December 18, 2019: 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.

3838

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Governance Report

  3. For the information of evaluation cycles, periods, scope, method and content of self-evaluation of the Board of Directors,  

    please refer to the execution status of the self-evaluation of the Board of Directors.

  4. Measures taken to strengthen the functionality of the board:

    To  implement  corporate  governance  and  enhance  the  Nomination  and  Election  of  the  Board,  the  Company  designated  

    a Company Secretary in 2019, and “Policy for Nomination and Election of Directors” and “Skill Matrix of Board Members,”  

    which  are  references  for  the  composition  structure  of  the  Board  established  by  the  Nominating  Committee.  Aside  from  

    conducting board performance evaluation every year, the Company also engaged with TAIWAN CORPORATE GOVERNANCE  

    ASSOCIATION  to  implement  performance  evaluation  of  the  Board  of  Directors  in  2018,  please  refer  to  the  Company’s  

    website for the evaluation report: http://www.umc.com/English/investors/Corp_Gov.asp

Note :  Attendance rate is calculated by using the number of meetings each board member actually attends and the total number of board meetings held  

within his or her service period.

39

 
Execution Status of the Board Evaluation

Evaluation Cycle Evaluation Period

Evaluation Scope

Evaluation Method

Evaluation Content

Annually

2019/1/1~2019/12/31

The Company’s board 
self-evaluation scope 
covers the evaluation 
of the board, functional 
committees and 
individual board 
members.

Self-evaluation of the 
board, its functional 
committees and 
individual board 
members’ performance

1. The self-evaluation of the board of  

    directors includes the following  

    aspects:

    (1) Participation in the operation of the  

company;

    (2) Improvement of the quality of the 

      board of directors’ decision making; 

    (3) Composition and structure of the  

      board of directors;

    (4) Election and continuing education  

      of the directors; and

    (5) Internal control.

2. The self-evaluation of the functional  

    committees includes the following  

    aspects:

    (1) Participation in the operation of the  

company;

    (2) Awareness of the duties of the  

functional committee;

    (3) Improvement of quality of decisions  

      made by the functional committee;

    (4) Composition of the functional  

committee and election of its  

      members; and

    (5) Internal control.

3. The self-evaluation of board members  

    includes the following aspects:

    (1) Familiarity with the goals and  

      missions of the company;

    (2) Awareness of the duties of a  

      director; 

    (3) Participation in the operation of the  

company;

    (4) Management of internal  

relationships and communication; 

    (5) The director’s professionalism and  

continuing education; and

    (6) Internal control.

40

United Microelectronics Corporation  |  Annual Report 2019     
     
     
     
     
     
     
Operation of the 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 

•  Audit plans of internal and external auditors and their 

operating according to the Audit Committee Charter (please 

  execution status

refer  to  the  Company’s  website  at  http://www.umc.com/

•  Engaging and removing the Company’s independent 

English/pdf/Audit_Committee_Charter_Eng.pdf).

  auditors and accessing such auditors’ remuneration and 

According to the relevant regulations, the Audit Committee 

  independence

shall convene at least four regular meetings per year. In 2019 

•  Risks and control procedures of compliance with 

a total of five 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 five Audit Committee meetings in 2019, 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

Cheng-Li Huang

Wenyi Chu

Lih J. Chen

Jyuo-Min Shyu

5

5

5

5

0

0

0

0

100.00

Audit Committee convener

100.00

100.00

100.00

41

Corporate Governance ReportOperation of the 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 the 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

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

1.  Approved  the  2018  Consolidated  Financial  Statements  

(including  Parent Company only Financial Statements).

2.  Approved the 2018 Statement of Internal Control System.

3.  Approved the content of appointed service and fee  for the  

Approved by   
all members  
present in the 
meeting.

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  for  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 directors 
participating in 
the discussion and 
voting in the board 
meeting.

April 24, 2019, the 8th 
meeting of the 14th 
session

1.  Approved the Q1 2019 Consolidated Financial Statements.

2.  Approved amendment of the UMC Loan Procedure.

3.  Approved  amendment  of  the  UMC  Endorsements  and  

  Guarantees Procedure.

July 24, 2019, the 10th 
meeting of the 14th 
session

1.  Approved the Q2 2019 Consolidated Financial Statements.

2.  Approved  to  decrease  the  endorsement  and  guarantee  of      

the  syndication  loan  for  United  Semiconductor  (Xiamen)  

  Co., Ltd.

Approved by   
all members  
present in the 
meeting.

Approved by   
all members  
present in the 
meeting.

Approved 
by directors 
participating in 
the discussion and 
voting in the board 
meeting.

Approved 
by directors 
participating in 
the discussion and 
voting in the board 
meeting.

42

United Microelectronics Corporation  |  Annual Report 2019 
 
 
 
Operation of the Audit Committee	(Continue)

Date/Session of Board 
Meeting

Content of Motion

Resolution of the 
Audit Committee

Company’s Response 
to the Opinion of the 
Audit Committee

October 30, 2019, the 
11th meeting of the 
14th session

1.  Approved the Q3 2019 Consolidated Financial Statements.

December 18, 2019, 
the 12th meeting of 
the 14th session

1.  Approved the revision of the internal control system and  

internal audit implementation rules.

2.  Approved to decrease the   endorsement and guarantee of  

the  syndication  loan  for  United  Semiconductor  (Xiamen)  

  Co., Ltd.

3.  Approved  the  content  of  appointed  service  and  fee  of  

independent auditor appointed.

Approved by   
all members  
present in the 
meeting.

Approved by   
all members  
present in the 
meeting.

February 26, 2020, 
the 13th meeting of 
the 14th session

1.  Approved  the  2019  Consolidated  Financial  Statements  

(including  Parent Company only Financial Statements).

2.  Approved the 2019 Statement of Internal Control System.

3.  Approved  for  UMC’s  Singapore  branch  to  lend  funds  to  

Approved by   
all members  
present in the 
meeting.

  United Semiconductor (Xiamen) Co., Ltd.

4.  Approved  issuing  restricted  stock  awards  for  employees. 

5.  Approved the content of appointed service and fee for the  

independent auditor appointed in 2020.

6.  Approved  the  Company’s  donation  to  UMC  Science  and  

  Culture Foundation.

Approved 
by directors 
participating in 
the discussion and 
voting in the board 
meeting.

Approved 
by directors 
participating in 
the discussion and 
voting in the board 
meeting.

Approved 
by directors 
participating in 
the discussion and 
voting in the board 
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 2019.

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

  Audit Committee in 2019. 

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’s website: http://www.umc.com/English/investors/audit_committee/2019_communication.asp

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 2019	
 
 
 
 
 
	
 
 
 
 
 
 
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_20191030_eng.pdf

None

UMC  has  designated  a  specific  contact  window  (ir@umc.com)  and  included  a  Investor  Relations 
section on the Stakeholder Contacts of the Company’s website to deal with shareholders’ suggestions, 
doubts,  disputes  and  litigation.  Please  refer  to  the  Company’s  website  for  stakeholders’  contact: 
http://www.umc.com/English/CSR/c_2.asp

UMC  deals  with 
shareholders’ 
suggestions,  doubts,  disputes  and 
litigation  based  on  “the  Corporate 
Governance Best-Practice Principles 
for  TWSE/TPEx  Listed  Companies.” 
UMC does not 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  has  also 
established  criteria  to  ensure  the  diversity  of  the  Board  members.  The  UMC  Board  of  Directors 
comprises of 9 members from different professional backgrounds, and is responsible for company 
operation and supervision. The diverse academic and industrial experiences of the Board members 
are an asset to corporate decision-making and long-term strategic planning. Currently, the Board 
has  4  seats  for  independent  directors  and  2  for  outside  directors,  while  3  serve  as  administrative 
directors.  Two  thirds  of  the  director  seats  are  filled  by  members  of  outside  companies.    There 
is  1  female  director  seat,  and  based  on  our  policy  of  gender  equality,  UMC  will  increase  the  seats 
of  female  directors  progressively.  The  Board  of  UMC  is  composed  of  members  with  diversified 
backgrounds  of  industry,  government  and  academia;  board  members'  experiences  include  the 
president  of  a  national  university,  academician  of  Academia  Sinica,  the  Minister  of  Science  and 
Technology,  president  of  ITRI,  financial  experts  of  finance,  accounting  and  strategy  management 
fields, and professionals from semiconductor and ICT businesses. The directors are qualified on the 
basic criteria, and professionalism requirements can also contribute to supervising and governing 
the  issues  on  corporate  governance,  environmental  sustainability,  corporate  social  responsibility, 
legal compliance and human rights protection through the sub-committees. Please refer to UMC’s 
Policy for Nomination and Election of Directors for UMC Board diversification criteria, the Directors’ 
Information and the Skill Matrix of Board members for implementation of Board diversification on 
the Company’s website: 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.  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? Are the implemented results reported to the Board, and used as a reference for individual  
directors’ compensation and nomination renewal? 

Yes

No

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

46

United Microelectronics Corporation  |  Annual Report 2019 
 
 
 
 
 
 
 
 
 
Implementation Status

Abstract Explanation

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

UMC  has  formulated  Rules  for  Performance  Evaluation  of  the  Board  of  Directors  and  implemented  
it accordingly.
A.  The  Company  conducted  annual  self-evaluation  of  the  BOD,  its  functional  committees  and  

None

individual  board members’ performance.
In  2019,  the  Nominating  Committee  conducted  the  self-evaluation  of  the  Board  of  Directors,  
functional committees and individual board members and reported the result to the Nominating  

  Committee and Board of Directors on February 26, 2020. The performance result was "Excellent".
B.  The  performance  of  the  Board  is  also  implemented  by  an  external  independent  professional  
institution  or  a  panel  of  external  experts  and  scholars  at  least  once  every  three  years.  
The  Company  engaged  with  an  external  assessment  institution  to  implement  performance  
evaluation  of  the  Board  of  Directors  in  2018.  Please  refer  to  the  Company’s  website  for  
“The  Rules  for  Performance  Evaluation  of  the  Board    of  Directors”:  http://www.umc.com/English/ 

  pdf/The_Rules_for_Performance_Evaluation_of_the_Board_of_Directors_eng.pdf.

The  Company’s  Directors’  Compensation  is  regulated  in  the  Company’s  Articles  of  Incorporation.  
The    Company  shall  allocate  no  more  than  0.1%  of  profit  as  directors’  compensation  for  
each  profitable  fiscal  year,  so  Directors’  Compensation  is  linked  to  the  performance  of  
the  Company’s  operation  and  the  Board.  According  to  the  Policy  for  Nomination  and  
Election  of  Directors,  performance  assessment  of  the  board  is  used  as  a  reference  for  

  nomination and election of Directors.

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.  Alll 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 audit outcome.
C.  The  same  independent  auditor  has  not  performed  audit  services  for  more  than  five  consecutive  

None

years.

D. UMC evaluates the independence and competence of the external auditor annually, including the  
size and reputation of the accounting firm,  the nature and extent of providing non-audit services,  

  peer review, quality of audit services, whether there are any legal proceedings, etc.

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

Yes

No

4.  Does 
the  company  have  an  adequate  number  of  corporate  governance  personnel  with  appropriate  
  qualifications  and  appoint  a  chief  corporate  governance  officer  to  be  in  charge  of  corporate  governance  
limited  to  providing  information  for  directors  and  supervisors  to  perform  their  
  affairs  (including  but  not 
  relating  to  board  
laws,  producing  minutes  of  board  meetings  and  

functions,  assisting  directors  and  supervisors  with 

legal  compliance,  handling  matters 

shareholders  meetings  according 

  meetings  and 

to 

shareholders meetings)?

5.  Does  the  company  establish  a  communication  channel  and  build  a  designated  section  on  its  website  for  
limited  to  shareholders,  employees,  customers,  and  suppliers),  as  well  as  

stakeholders  (including  but  not 

  handle all the issues they care for in terms of corporate social responsibilities?

48

United Microelectronics Corporation  |  Annual Report 2019 
 
 
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  Chief  Corporate  Governance  Officer  was 
approved by the Nominating Committee and Board of Directors on March 6, 2019. The Chief Corporate 
Governance Officer is the CFO who has been in a managerial position for at least three years in a public 
company in handling financial and stock affairs. The Chief Corporate Governance Officer had already 
completed  15  hours  of  training  in  2019,  and  will  complete  professional  training  in  accordance  with 
laws  and  regulations.  The  key  task  of  the  Chief  Corporate  Governance  Officer  is  supervising  finance 
division’s  convening  of  Board  meetings  and  shareholders  meetings,  producing  meeting  agendas, 
minutes  and  information  disclosures,  providing  business  information  required  by  the  directors, 
assisting the directors with legal compliance, and assisting the directors with their responsibilities and 
in-service training. In addition, every year the Chief Corporate Governance Officer communicates with 
the independent directors on corporate governance-related affairs on a regular basis.
The  following  are  the  2019  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 the  
  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,  functional  
  committees and individual board members according to the Rules for Performance Evaluation 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 notifications,  
issue the meeting handbook and minutes within the legally mandated time frame, record changes  
  such as Articles of Incorporation of UMC or Board re-election within the 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  respond  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  disclose  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

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?

Yes

No

(2) Does 

the  company  have  other 
appointing  designated  people  to  handle 
system, webcasting investor conferences)?

information  disclosure  channels 

(e.g.  building  an  English  website,  
information  collection  and  disclosure,  creating  a  spokesman  

(3) Does  the  company  announce  the  annual  financial  report  within  2  months  after  the  end  of  the  fiscal  

year, and announce the Q1, Q2, Q3 financial reports and monthly operation status before the deadlines?

8  Is  there  any  other  important  information  to  facilitate  a  better  understanding  of  the  company’s  corporate  
investor  
limited 
  governance  practices 
records, 
the  
implementation  of  

(e.g., 
relations, 
relations, 
supplier 
implementation  of 
risk  management  policies  and 
customer relations policies, and purchasing insurance for directors and supervisors)?

to  employee 
stakeholders,  directors’  and 

rights,  employee  wellness, 
supervisors’ 

risk  evaluation  measures, 

including  but  not 

rights  of 

training 

the 

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 2019 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 information 
for both financial standings and the status of corporate governance at all times for 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

The Company announces its monthly operation status within the prescribed deadlines and announces 
the annual and the quarterly financial reports before the deadlines. The Company’s announcement of 
the 2019 annual financial report was completed on February 26, 2020.

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 52-54 of this annual report. 
(2) Board meeting attendance: Please refer to Page 38-43 on Board of Directors Operations and Audit  
  Committee  Operations,  and  Page  62  on  Remuneration  Committee  Operations  in  this  annual  

report.

(3) Risk  management  policies  and  risk  measurement  standards  implementation:  Please  refer  to   
  Risk Matters in this annual report.
(4) Customer policy implementation: Please refer to Page 127 on Market, Production and Sales Overview  
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 2019 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  five  consecutive  years  since  2015.  To  implement  corporate 
governance and enhance the Company’s board functions, the Company designated Company Secretary in 2019, and “Policy for Nomination 
and Election of Directors” and “Skill Matrix of Board Members” which are references for composition structure of the Board are established 
by the Nominating Committee.

51

Corporate Governance Report 
 
 
 
Continuing Education/Training of Directors in 2019:

Title

Name

Study Period

Sponsoring 
Organization

Course

From

To

Training 
Hours

Compliance 
with 
Regulations 
(Note)

Chairman

Stan Hung

2019.07.23

2019.07.23

2019.10.29

2019.10.29

Independent 
Director

Cheng-Li 
Huang

2019.07.31

2019.07.31

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

SECURITIES & FUTURES 
INSTITUTE

2019.10.04

2019.10.04

2 0 1 9.1 1 . 2 1

2 0 1 9.1 1 . 2 1

TAIWAN STOCK 
EXCHANGE 
CORPORATION

TAIWAN STOCK 
EXCHANGE 
CORPORATION

20 19.12 .13

20 19.12 .13

SECURITIES & FUTURES 
INSTITUTE

Global Trends for 
Sustainable Development 
of Corporate Social 
Responsibility & Adaptive 
Planning of Management

International Anti-Tax 
Avoidance Development

The Compliance of Insider 
Equity Trading Regulations 
of Listed Companies 
Advocacy Meeting in 2019

ESG Investment Forum

2019 Board Functions 
Enhancement Seminars

The Hedging Practice 
of Derivatives of Listed 
Companies Seminar in 
2019

2019.12 .18

2019.12 .18

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

The Trends for Technology 
Risk & the Governance of 
Information Security

Independent 
Director

Wenyi Chu

2019.04.26

2019.04.26

SECURITIES & FUTURES 
INSTITUTE

Insider Trading Prevention 
Advocacy Meeting in 2019

2019.05.07

2019.05.07

2019.11.06

2019.11.06

20 19.12 .1 8

20 19.12 .1 8

Independent 
Director

Lih J. Chen

20 19.11 . 2 7

20 19.11 . 2 7

TAIWAN STOCK 
EXCHANGE 
CORPORATION

TAIWAN STOCK 
EXCHANGE 
CORPORATION

ESG Investment Forum

2019 Board Functions 
Enhancement Seminars

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

The Trends for Technology 
Risk & the Governance of 
Information Security

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

15th International 
Corporate Governance 
Forum

20 19.12 .1 8

20 19.12 .1 8

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

The Trends for Technology 
Risk & the Governance of 
Information Security

3

3

3

2

3

3

3

3

3

3

3

3

3

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

52

United Microelectronics Corporation  |  Annual Report 2019Continuing Education/Training of Directors in 2019:

Title

Name

Study Period

From

To

Sponsoring 
Organization

Course

Training 
Hours

Compliance 
with 
Regulations 
(Note)

Independent 
Director

Jyuo-Min 
Shyu

2019.03.26 2019.03.26

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

2019.05.03

2019.05.03

SECURITIES & FUTURES 
INSTITUTE

The New Regulation 
of Cayman & 
BVI Government 
Legislation about 
Economic Substance 
Activities

Insider Trading 
Prevention Advocacy 
Meeting in 2019

20 19. 0 5 .15

20 19. 0 5 .15

2019.08.13

2019.08.13

2 0 1 9 . 1 1 . 1 2

2 0 1 9 . 1 1 . 1 2

2 0 1 9 . 1 1 . 2 1

2 0 1 9 . 1 1 . 2 1

20 19.12 .1 8

20 19.12 .1 8

Director

Chung 
Laung Liu

2019.08.02

2019.08.02

2019.09.03

2019.09.03

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

The Impact of 
Statute for Industrial 
Innovation Drafts 
to Corporate’s Tax 
Planning in the Future

Internet Security & 
Emergency Response

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

Introduction of 
Corporate Governance 
Evaluation

TAIWAN STOCK 
EXCHANGE 
CORPORATION

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

SECURITIES & FUTURES 
INSTITUTE

2019 Board Functions 
Enhancement 
Seminars

The Trends for 
Technology Risk & 
the Governance of 
Information Security

Digital Transformation 
and Cloud Computing

Directors & 
Supervisors’ Principles 
of Performing Duties 
of Business Judgment

The Discussion of 
International and 
Taiwan’s  
Anti-Tax Avoidance 
Development & 
Enterprise Response

The Trends for 
Technology Risk & 
the Governance of 
Information Security

2019.09.03

2019.09.03

SECURITIES & FUTURES 
INSTITUTE

2 0 1 9.12 .1 8

2 0 1 9.12 .1 8

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

1.5

Yes

3

Yes

1.5

Yes

1.5

1.5

3

3

3

3

3

3

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

53

Corporate Governance ReportContinuing Education/Training of Directors in 2019:

Title

Name

Study Period

From

To

Sponsoring 
Organization

Course

Training 
Hours

Compliance 
with 
Regulations 
(Note)

Director

Ting-Yu 
Lin

2 0 1 9. 0 7.1 7

2 0 1 9. 0 7.1 7

SECURITIES & FUTURES 
INSTITUTE

2019.12.18

2019.12.18

Representative 
of Juristic-Person 
Director

SC Chien

2019.05.03

2019.05.03

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

SECURITIES & FUTURES 
INSTITUTE

2019.08.02

2019.08.02

SECURITIES & FUTURES 
INSTITUTE

2 0 1 9.1 2 .1 8

20 19.12 .1 8

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

Representative 
of Juristic-Person 
Director

Jason 
Wang

2 0 1 9. 0 7. 3 1

20 1 9. 0 7. 31

SECURITIES & FUTURES 
INSTITUTE

The Compliance of 
Insider Equity Trading 
Regulations of Listed 
Companies Advocacy 
Meeting in 2019

The Trends for 
Technology Risk & 
the Governance of 
Information Security

Insider Trading 
Prevention Advocacy 
Meeting in 2019

The Compliance of 
Insider Equity Trading 
Regulations of Listed 
Companies Advocacy 
Meeting in 2019

The Trends for 
Technology Risk & 
the Governance of 
Information Security

The Compliance of 
Insider Equity Trading 
Regulations of Listed 
Companies Advocacy 
Meeting in 2019

2019.1 0. 29

2019.10.29

2 0 1 9.1 2 .1 8 2 0 1 9.1 2 .1 8

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

International  
Anti-Tax Avoidance 
Development

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

The Trends for 
Technology Risk & 
the Governance of 
Information Security

3

3

3

3

3

3

3

3

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.”

54

United Microelectronics Corporation  |  Annual Report 2019 
 
Continuing Education/Training of Managers in 2019:

Title

Name

Course Date

Organizer

Course Title

Course Hours

Vice President

M C Lai

Vice President  

G C Hung

Vice President

Wenchi Ting

Vice President

Jerry CJ Hu

Vice President

SR Sheu

Vice President

Francia Hsu

Vice President  
& Chief Human 
Resources Officer

Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Senior  
Vice President & 
Chief Financial 
Officer

Eric Chen

2019.01.18

UNITED 
MICROELECTRONICS 
CORP.

The Impact of the Sino-US Trade War 
on Taiwan-funded Enterprises and the 
Countermeasures

Victor Chuang

Le Tien Jung

Mindy Lin

Chitung Liu

2019.03.25

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

Consolidated Financial Statement 
Preparation Practice Workshop

Vice President

TS Wu

Vice President

Wenchi Ting

Vice President

SR Sheu

Eric Chen

2019.04.12

Victor Chuang

Mindy Lin

Chitung Liu

2019.05.16

Chitung Liu

2019.05.17

Vice President  
& Chief Human 
Resources Officer

Associate  
Vice President
Associate  
Vice President
Senior  
Vice President & 
Chief Financial 
Officer

Senior  
Vice President & 
Chief Financial 
Officer

UNITED 
MICROELECTRONICS 
CORP.

【2019 Master Forum】Strategy of Talent 
and Organizational Capability

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

The Practices of Corporate Governance: 
The Latest Amendments to the “Company 
Act” and Corporate Correspondence

Analysis of Illegal Cases of Corporate 
“Securities Fraud” and Related Legal 
Liabilities

2

6

2

3

3

55

Corporate Governance ReportContinuing Education/Training of Managers in 2019:

Title

Name

Course Date

Organizer

Course Title

Course Hours

2019.05.27 
2019.05.30 
2019.06.05

UNITED 
MICROELECTRONICS 
CORP.

【Legal Course】 Introduction of Trade 
Secrets Act

2

President

President

Executive Vice 
President
Senior  
Vice President & 
Chief Financial 
Officer

Senior  
Vice President & 
General Counsel

SC Chien

Jason Wang

Ming Hsu

Chitung Liu

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 Sheng

Vice President

Steven S Liu

Vice President

Vice President

SR Sheu

M L Liao

Vice President

S S Hong

Vice President

Francia Hsu

Vice President  
& Chief Human 
Resources Officer

Eric Chen

Victor Chuang

Chuck Chen

S F Tzou

Le Tien Jung

Yau Kae Sheu

J Y Wu

Osbert Cheng

Steven Hsu

Yanan Mou

Remi Yu

Ji Fu Kung

C P Yen

Mindy Lin

Pang Min Wang

Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate 
Vice President
Associate 
Vice President
Associate  
Vice President
Associate 
Vice President
Associate 
Vice President
Associate  
Vice President
Associate 
Vice President
Associate 
Vice President
Associate 
Vice President
Associate 
Vice President
Associate 
Vice President

56

United Microelectronics Corporation  |  Annual Report 2019Continuing Education/Training of Managers in 2019:

Title

Name

Course Date

Organizer

Course Title

Course Hours

2019.06.1 1 
2019.06.25

UNITED 
MICROELECTRONICS 
CORP.

【Executive Program】Innovation, Value 
Creation and Sustainable Development

Vice President

TS Wu

Vice President  

G C Hung

Vice President

Wenchi Ting

Vice President

Jerry CJ Hu

Vice President

Francia Hsu

Vice President  
& Chief Human 
Resources Officer

Eric Chen

Victor Chuang

Chuck Chen

S F Tzou

Osbert Cheng

Mindy Lin

S F Tzou

Le Tien Jung

Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Vice President

Vice President

UNITED 
MICROELECTRONICS 
CORP.

【Legal Course】Strengthen the 
Introduction of the Legal Effect of 
Violation of Laws Related to Trade Secrets 

J Y Wu

2019.08.29

Osbert Cheng

Steven Hsu

TS Wu

M C Lai

Vice President

Jerry CJ Hu

Vice President  

Steven S Liu

Associate  
Vice President
Associate  
Vice President
Associate  
Vice President

Chuck Chen

Remi Yu

Mindy Lin

2019.09.24 
2019.1 0 . 1 7

UNITED 
MICROELECTRONICS 
CORP.

【Executive Program】Strategic Marketing 
Analysis

3

1

3

57

Corporate Governance ReportContinuing Education/Training of Managers in 2019:

Title

Name

Course Date

Organizer

Course Title

Course Hours

2019.09.26 

UNITED 
MICROELECTRONICS 
CORP.

【Legal Course】Foreign Corrupt 
Practices Act

2019.10.24

UNITED 
MICROELECTRONICS 
CORP.

The Wavelength of 5G (5th Generation 
Mobile Networks)

1

2

2019.11.07
2019.11.08

UNITED 
MICROELECTRONICS 
CORP.

Process Analysis for Executives

2

President

Vice President

Vice President

SC Chien

TS Wu

M C Lai

Vice President

G C Hung

Vice President

Wenchi Ting

Vice President

Jerry CJ Hu

Vice President

Y S Shen

Vice President

Vice President

SR Sheu

M L Liao

Vice President

S S Hong

Vice President

Francia Hsu

Vice President  
& Chief Human 
Resources Officer

Eric Chen

Associate  
Vice President
Associate 
Vice President
Associate  
Vice President
Vice President

Vice President

Vice President

Victor Chuang

Steven Hsu

Mindy Lin

M C Lai

Y S Shen

M L Liao

Vice President

TS Wu

Vice President

Steven S Liu

Vice President

Francia Hsu

Victor Chuang

Chuck Chen

Le Tien Jung

Yau Kae Sheu

J Y Wu

Yanan Mou

Remi Yu

Ji Fu Kung

Mindy Lin

Pang Min Wang

Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President

58

United Microelectronics Corporation  |  Annual Report 2019Continuing Education/Training of Managers in 2019:

Title

Name

Course Date

Organizer

Course Title

Course Hours

2019.11.28 
2019.12.03

UNITED 
MICROELECTRONICS 
CORP.

Objectives & Key Results
“Measure What Matters”

Vice President

TS Wu

Vice President  

M C Lai

Vice President

Steven S Liu

Vice President

SR Sheu

Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Vice President

Victor Chuang

Chuck Chen

S F Tzou

J Y Wu

Osbert Cheng

Steven Hsu

C Y Hsu

Remi Yu

C P Yen

Mindy Lin

Pang Min Wang

TS Wu

Vice President

G C Hung

Vice President

Jerry CJ Hu

Vice President

Steven S Liu

Vice President

SR Sheu

Vice President  
& Chief Human 
Resources Officer

Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Associate  
Vice President
Senior  
Vice President & 
Chief Financial 
Officer

2019.12.10

UNITED 
MICROELECTRONICS 
CORP.

【2019 Master Forum】Understanding the 
Essence of Business from the Financial 
Statements

Eric Chen

Victor Chuang

Chuck Chen

S F Tzou

C Y Hsu

C P Yen

Mindy Lin

Chitung Liu

2019.12.18

TAIWAN  
CORPORATE 
GOVERNANCE 
ASSOCIATION

The Trends for Technology Risk & the 
Governance of Information Security

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 2019.
  The senior executive course are as follows:
 【2019 Master Forum】A total of two sessions were held, with a total of 115 supervisors participating, and a course satisfaction rating of 90%.
 【Executive Program】A total of four sessions were held, with a total of 111 supervisors participating, and a course satisfaction rating of 94%.

2

2

3

59

Corporate Governance Report 
 
      
 
 
 
 
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 38-96 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.

60

United Microelectronics Corporation  |  Annual Report 2019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 the 
Business 
Sector of the 
Company

Independent 
Director
Independent 
Director
Independent 
Director
Independent 
Director

Cheng-Li Huang

Wenyi Chu

Lih J. Chen

Jyuo-Min Shyu

Yes

Yes

Yes

Yes

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

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

9

10

Note

Number of
Other Public
Companies
Where the
Member
Concurrently
Serves as a
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 who serves concurrently as an independent director of its parent company, subsidiary, or subsidiary of the same parent  
company in accordance with the laws of Taiwan or with the laws of the country of the parent company, subsidiary or subsidiary of the same parent  
company).   

     ( 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 managers specified in the column  

(1) or any person specified in the column (2) and (3). 

     ( 5)Is not a director, supervisor or employee of a legal entity which directly owns more than 5% of the Company’s issued shares or are the top five owners  
of the Company’s issued shares, nor a director, supervisor or employee of a legal entity which designates a representative to serve as a director or  
supervisor of the Company in accordance with Article 27, paragraph 1 or 2 of the Company Act (the same does not apply, however, in cases where the  
person is an independent director of the Company who serves concurrently as an independent director of its parent company, subsidiary, or subsidiary of  
the same parent company in accordance with the laws of Taiwan or with the laws of the country of the parent company, subsidiary or subsidiary of  
the same parent company). 

     ( 6)Is  not  a  director,  supervisor  or  employee  of  other  company,  and  more  than  half  of  directors  or  voting  shares  of  other  company  are  
controlled by the same person (the same does not apply, however, in cases where the person is an independent director of the Company who serves  
concurrently  as  an  independent  director  of  its  parent  company,  subsidiary,  or  subsidiary  of  the  same  parent  company  in  accordance  with  the 
laws of Taiwan or with the laws of the country of the parent company, subsidiary or subsidiary of the same parent company).  

     ( 7)Is not a director, supervisor or employee of other company, and Chairman, President or Manager with equivalent position of other company are the 
same  person  or  spouse  (the  same  does  not  apply,  however,  in  cases  where  the  person  is  an  independent  director  of  the  Company  who  serves  
concurrently as an independent director of its parent company, subsidiary, or subsidiary of the same parent company in accordance with the laws of  
Taiwan or with the laws of the country of the parent company, subsidiary or subsidiary of the same parent company).

     ( 8)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 (the same does not apply, however, in cases where a company owns more than 20% but less than 50% of the Company’s issued  
shares  and  the  person  is  an  independent  director  of  the  Company  who  serves  concurrently  as  an  independent  director  of  its  parent  company,  
subsidiary, or subsidiary of the same parent company in accordance with the laws of Taiwan or with the laws of the country of the parent company,  
subsidiary or subsidiary of the same parent company).

     ( 9)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  auditing  or  services  of  finance,  business  consultation  and  legal  
affairs  for  which  the  accumulated  remuneration  in  the  past  two  years  does  not  exceed  NTD  500,000,  provided  that  this  restriction  does  
not  apply  to  any  member  of  the  compensation  committee,  public  tender  offer  review  committee,  or  special  committee  on  mergers  and  
acquisitions  who  exercises  powers  pursuant  to  related  regulation  such  as  the  “Securities  and  Exchange  Act”  or  the  “Business  Mergers  And  
Acquisitions Act.”

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

61

Corporate Governance Report 
 
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
 
   
 
 
 
 
 
   
 
 
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Operation of the Remuneration Committee:
The goal of the Remuneration 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.

Annual Focus of the Remuneration Committee:

•	Approval of directors’ remuneration

•	Manager performance and compensation structure review

•	Approval of manager’s salary and reward

Information of the 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 2019 with the following attendance:

Title

Name 

Number of 
Actual
Attendance

Number of Proxy
Attendance

Rate of Actual
Attendance (%) 

Note

Independent 
Director

Wenyi Chu

Independent 
Director

Cheng-Li 
Huang

Independent 
Director

Independent 
Director

Lih J. Chen

Jyuo-Min Shyu

3

3

3

3

0

0

0

0

100.00

Remuneration Committee convener

100.00

100.00

100.00

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.
3. Major resolutions of the Remuneration Committee in 2019:

Date/ Meeting

Proposal 

Resolution

March 6, 2019,
the 3rd meeting of
the 4th session

1.  Directors’ 2018 remuneration
2. Review  the  structure  of  management 
team’s compensation and performance  
  evaluation  system,  and  also  propose  
the management team’s compensation

Approved by all 
members present  
in the meeting.

June 19, 2019,
the 4th meeting of 
the 4th session

1.  Management team’s 2019 salary review
2. Proposal  of  the  management  team’s  
  compensation

December 18, 2019,
the 5th meeting of 
the 4th session

1.  Proposed  adjustment  of  attendance 
fees for Audit Committee meetings

2. Proposal  of  management 
  compensation structure

team’s  

Approved by all 
members present  
in the meeting.

Approved by all 
members present  
in the meeting.

Any Independent Director with a Dissenting 
Opinion or Qualified Opinion

Approved by directors participating in the 
discussion and voting in the board meeting.

Approved by directors participating in the 
discussion and voting in the board meeting.

Approved by directors participating in the 
discussion and voting in the board meeting.

62

United Microelectronics Corporation  |  Annual Report 2019 
 
 
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 2019. 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

2

2

2

2

0

0

0

0

100.00

100.00

100.00

100.00

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 the Nominating Committee in 2019:
  Meeting on March 6, 2019

(1) Nominated the Company Secretary of the Company
(2) Approved the Company’s Policy for Nomination and Election of Directors
(3) Approved the Company’s Skill Matrix of Board Members

  Meeting on October 30, 2019

(1) Amended the Company’s Corporate Governance Practice Principles
(2) Amended the Company’s Rules for Performance Evaluations of the Board of Directors

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

63

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

Evaluation Item

Yes

No

1.  Does the company identify environmental, social and corporate governance issues related to the company’s  
  operations in accordance with the materiality principle?

2.  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?

64

United Microelectronics Corporation  |  Annual Report 2019 
Implementation Status

Abstract Explanation

Through the Corporate Sustainability Committee, the Company keeps abreast of the development 
of  domestic  and  foreign  corporate  social  responsibility  standards  and  changes  in  the  corporate 
environment, reviews and improves the corporate social responsibility system of UMC, and identifies 
environmental,  social  and  corporate  governance  issues  related  to  the  Company’s  operations  in 
accordance with the materiality principle.
In  addition,  the  Enterprise  Risk  Management  Committee  has  also  formulated  enterprise  risk 
management  policies.  Through  risk  management  methods  and  organizations,  the  committee 
effectively  prevents  and  controls  enterprise  risks,  comprehensively  implements  them  in  daily 
operations,  shapes  and  deepens  the  risk  culture,  and  establishes  complete  and  transparent  risk 
communication to maintain steady operations. It also develops response strategies for major risk 
issues, regularly submits them to the Board of Directors for approval, reviews and updates relevant 
standard operating procedures to ensure the effectiveness of risk management.
For related risk (including environmental, social and corporate governance issues), please refer to 
the  section  “Risk  Management  and  Evaluation”  of  this  annual  report  and  UMC  Corporate  Social 
Responsibility Report.

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  stakeholders  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, Environment Committee and Green Manufacturing Committee. The functions of each  
sub-committee are briefly described below:
•	 Corporate Governance Committee 
  Helps strengthen the function of the Board and shareholder equity, integrates related regulations  
  and policies of relevant departments, and helps complete and implement the Company’s internal  
  control  system  to  ensure  information  transparency  and  disclosure,  and  compliance  with  

regulations. 

•	 Customer Relationship Management Committee
  Refines customer service and quality control, improves service quality and customer satisfaction,  
  and protects 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
  Promotes green product research and development and innovations, and leads 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. Integrates the UMC Cultural and Educational Foundation, and  
  with  focus  on  education,  arts,  sports,  public  service  and  environmental  protection,  strives  to  
  promote technological research and development cooperation, long-term educational assistance,  
  arts and sports activities and other social welfare events.
•	 Environment Committee 
  Promotes  company-wide  environmental,  safety  and  health,  energy,  water  and  greenhouse  gas  
  emission  management.  Establishes  sustainable  supply  chains  and  long-term  partnerships  with  
  suppliers to enhance sustainable competitiveness.
•	 Green Manufacturing Committee 
  Promotes company-wide green processes, such as hazardous materials management and increases  

in resource productivity.

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

None

None

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Corporate Social Responsibility and Deviations from “The Corporate Governance Best-Practice Principles for TWSE/TPEx 

Listed Companies” (Continue)

Evaluation Item

3. Environmental Issues

Yes

No

(1)  Doest  the  company  establish  proper  environmental  management  systems  based  on  the  characteristics  of  

their industries?

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

low impact on the environment?

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United Microelectronics Corporation  |  Annual Report 2019 
 
 
 
 
 
Implementation Status

Abstract Explanation

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

None

None

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 plant 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  operations,  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  2001,  UMC  became  the  first  company  in  Taiwan’s  semiconductor  industry  to  pass  integrated 
environmental  protection,  safety  and  health  management  system  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 fabs.
•	 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- 
  cost chip design processes.
•	 Green products
  Although  UMC  does  not  produce  its  own  brands  through  its  wafer  process  manufacturing,  
it  continues  to  develop  and  incorporate  numerous  low-toxicity,  low-energy  green  product  
technoogies  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 QC-080000 IECQ  
  HSPM certification for all its fabs.
•	 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. As much as 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.

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Evaluation Item

(3) Does  the  company  evaluate  the  potential  risk  and  oppertunities  of  climate  change  on  its  operations  and  

take actions?

Yes

No

(4) Does  the  company  conduct  inspections  about  greenhouse  gas,  water  consumption,  and  total  weight  of  
  waste  for  last  two  years,  as  well  as  establish  company  strategies  for  energy  conservation,  carbon  reduction,  
  management of water consumption, and total weight of waste?

4. Social Issues

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

regulations and the International Bill of Human Rights?

(2) Does  the  company  declare  a  reasonable  employee  welfare  measures  (including  salary  remuneration  policy,  

regulations for leaves and others) and integrate the company’s performance with employees’ reward?

68

United Microelectronics Corporation  |  Annual Report 2019 
 
 
 
 
 
 
 
 
 
 
 
Implementation Status

Abstract Explanation

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 FCs 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 base year.
  2. (2016-2020)
    Reduce electricity consumption intensity 10% in five years. 
    Note: With 2015 as base year.
In addition to the disclosure of greenhouse gas emissions, potential risks and opportunities of climate 
change, and related management and responding measures in the Corporate Social Responsibility 
Report,  UMC  also  disclosed  relevant  information  through  involvement  in  international  CDP 
organization initiatives. From 2016 to 2019, UMC has been awarded “Leadership Level” in the annual 
evaluation of the CDP Climate Change Program for four consecutive years.

The environmental information of UMC in the past five years, such as greenhouse gas emissions, 
water  consumption,  and  total  weight  of  waste,  will  be  disclosed  in  the  “UMC  Corporate  Social 
Responsibility Report” every year, and verified by a third party.
UMC  has  also  formulated  the  environmental  protection  policy,  climate  change  policy  and  water 
resources management policy, and promoted the reduction plans and targets at various stages as a 
guideline for continuous improvement.

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.

UMC conducts and implements a reasonable employee welfare system; please refer to the employee 
benefits  of  operations  overview  in  this  annual  report.  The  factors  that  decide  the  salaries  of 
employees include educational background, work performance and market value. No employee will 
be discriminated against because of their gender, race, religious beliefs, political stance or marital 
status.
UMC complies with local statutory regulations and systems related to leave, minimum wage, and 
pension and other mandatory benefits to safeguard the rights of our employees.
In order to achieve personal, departmental and company performance goals as well as understand 
the job performance of employees, UMC conducts a performance evaluation of all employees every 
year. The information obtained can be used as a reference during employee promotions, training 
and when distributing compensation.

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

None

None

None

None

69

Corporate Governance ReportCorporate Social Responsibility and Deviations from “The Corporate Governance Best-Practice Principles for TWSE/TPEx 

Listed Companies” (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

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United Microelectronics Corporation  |  Annual Report 2019 
 
 
Implementation Status

Abstract Explanation

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

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  

None

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  2019,  the「Awareness  of  hazardous    chemicals」Course  was  
held.  To  date,  2,099  classes  have  been  offered,  attracting  a  total  of  82,225  participants.  The  
courses  include  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  2019,  UMC  promoted  a  healthy  workplace  lifestyle  themed  
“My UMC Health Diary"
1.  The 

themed  health  promoting  activities  attracted  64,055  participants,  and  overall  

satisfaction rate was 95%.  
Specifically, Q1 My Stress Relief Diary - Stress Relief for Well-Being. 

lucky  draws, 

  Courses  on  aromatherapy  and  self-hypnosis  relaxation  skills  were  organized  to  help  
employees  manage  stress  on  their  own,  and  alleviate  stress-related  physical  and  emotional  
  problems (such as  insomnia, negative emotions, etc.). A total of 1,337 individuals participated,  
  and the average overall  satisfaction rate was 92%. 
  Q2 My Happiness Diary - Mommy Care for Well-Being 
  Women  has  a  very  important  role  in  families  and  society.  On  every  Women  and  Children’s 
  Day,  we  organize  activities  such  as  sharing  good  news,  sharing  parenting  articles,  e-Check  
lectures  on  women’s  cancers  and  3-in-1  cancer  screening  for  women.  
  A  total  of  4,424  individuals  participated,  and  the  average  overall  satisfaction  rate  was  95.6%. 
  Q3 My Health Diary - Fight Fat and Reclaim Fitness
  Adopt  self-managed  exercise  and  weight 
  nursing  staff. 

loss,  and  report  the  APP  data  to  the  
In  addition,  a  physical  therapist  is  hired  to  teach  employees  how  
to  strengthen  their  necks,  pectoral  and  psoas    muscles,  as  well  as  daily  health  care.  
191  people  participated  in  the  weight  loss  activity,  losing  a  total    of  353.4  kg.  A  total  
  of  482  individuals  participated,  and  the  average  overall  satisfaction  rate  was  97.1%. 
  Q4 My Downshifting Diary - Beat Danger Index for Health
  Blood  pressure  self-measurement  and  self-care  health  passbooks  are  promoted  for  
employees  with  high  blood  pressure  and  abnormal  lab  test  results.  In  addition,  healthy  
  blood  pressure  contests  and    lectures  on  blood  pressure  related  autonomic  nerves  are  
  organized  to  enhance    employees’  sensitivity    toward  possible  health  hazards  caused  by 
  hypertension.  To  achieve    early  diagnosis  and  early  treatment,  and  reduce  the  incidence  
  of  increased  infection  due  to  chronic  diseases,  employee  abdominal  ultrasound  and  
flu  vaccination  are  conducted  for  early    detection  of  disease  risks  and  for  increasing  
immunity.  A  total  of  3,766  individuals  participated,  and  the  average  overall  satisfaction  
rate was 95.9%.

2.  31,400 utilized massage services by visually impaired masseurs. 
3.  2,218 consulted with in-house physicians.
4.  1,024 donated blood, totaling 1,609 bags of blood.
5.  1,057 received abdominal ultrasound exam, and satisfaction rate was 95.1 %.
6.  994 women were screened for cancer, and satisfaction rate was 96.4% (Note: The number is  

included  in the number of Q2 health promotion activities).

7.  292 received flu vaccination.
8.  A total of 407 training courses for emergency personnel were conducted, and the training rate  
  was  100%.
9.  There were 349 injuries and illnesses and emergency notifications.

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Evaluation Item

Yes

No

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

(5)  Does  the  company  comply  with  relevant  regulations  and  international  standards  about  customers’  health,  

safty, privacy, advertise and label of goods and services and establish consumer protection policy?

72

United Microelectronics Corporation  |  Annual Report 2019 
 
 
 
 
Implementation Status

Abstract Explanation

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

10. There were 520 new medical examinations.
11.  There were 323 high-level health examinations.
12.  Administrative services (group health insurance) totaled 3,828 occasions.
•	Protecting the health of employees and their families
  The  Company  provides  physical  and  health  checkups  for  employees,  and  based  on  the  results,  
  organizes  health  promotion  activities  for  heath  management.  Special  operation  inspectors  are  
  classified  for  case  management,  and  doctors  are  hired  to  provide  on-site  health  consultation  
  services for employees. Effective health risk management and case management are implemented  
  for all employees with abnormal test results. They are also included into the information system for  
  monitoring, thereby achieving 100% care rate.
  1. In 2019, a total of 12,105 employees in the Company received physical checkup.
  2. Health examination reports and questionnaire outcome were classified according to the risks.  
  Health management and consultation by on-site doctors are then arranged accordingly to achieve  
  100% follow-up care.

•	Employee consulting and assistance program
  To assist employees with physical, mental and spiritual issues, the Company provides each  
  employee  with 6 free sessions of individual counseling per year. 
  Appointments  for  individual  counseling  are  arranged  through  a  one-on-one  privacy  protection  
  mechanism.  In  2019,  a  total  of  398  individuals  received  the  free  counseling  service  and  125  
  individuals received paid services. 

In  2019,  the  UMC  Health  Center  continued  to  implement  health  promotion  activities  that  were  
  well-  received  and  supported  by  employees.  UMC’s  promotion  and  cultivation  of  a  healthy  
  workplace  is  deeply  recognized  by  enterprises.  In  2019,  Fab  8D,  Fab  8E,  Fab  8F  and  Fab  12A  
  received  the  Excellent  Self-Managed  Healthy  Workplace  certification  and  obtained  the  health  
  promotion  badge.  This  award    symbolizes  the  hard  work  that  UMC  put  into  cultivating  a  
  healthy  workplace.  It  demonstrates  UMC’s  active  protection  of  employee  health  and  concern  
  for their physical and psychological rights. 

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.

UMC is committed to strengthening its 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 the customers’ 
perspective  to  meet  customer  demand  for  product  and  service  quality.  To  this  end,  UMC  has 
introduced the My UMC, My HJTC (for HJ only) and My USC (for USCXM only) online service platforms 
for  customers  to  easily  check  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  My  UMC,  My  HJTC,  My  USC  and  My  USJC  online  service  platforms,  UMC  has  also 
incorporated  the  Voice  of  Customer  (VOC)  instant  online  complaint  system  within  the  My  UMC, 
My  HJTC,  My  USC  and  My  USJC  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 one working day regarding the processing of 
their request by relevant divisions. A specialist then assigns the customer input to the appropriate 
division for handling and response, and customers can check the progress at any time on the website. 

None

None

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Evaluation Item

Yes

No

74

United Microelectronics Corporation  |  Annual Report 2019 
Implementation Status

Abstract Explanation

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

UMC’s measures for responding to customer complaints must meet customer demand for product 
and service quality. To this end, there is a regular review for 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)

My USJC (For USJC only)

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Corporate Governance ReportCorporate Social Responsibility and Deviations from “The Corporate Governance Best-Practice Principles for TWSE/TPEx 

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Evaluation Item

Yes

No

(6) Does  the  company  establish  supplier’s  management  policy  and  ask  to  comply  with  regulations  about  

environmental protection, labor and human rights, safety, health?

5. Does the company prepare a Social Responsibility Report that complies with international guidlines and is verified by a  

third party?

6. 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:

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

76

United Microelectronics Corporation  |  Annual Report 2019 
 
 
 
 
 
 
 
Implementation Status

Abstract Explanation

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

For  consumer  protection  mechanisms,  in  order  to  strictly  protect  customer-related  information, 
UMC  has  established  an  external  document  management  procedure.  All  specifications  and 
technical  documents  from  customers  are  strictly  controlled  by  UMC’s  internal  system.  Therefore, 
we can prevent leakage of customer documents and ensure the document is utilized and proceeded 
appropriately. In the future, UMC will continue to accumulate smart assets, provide better products 
and  services,  work  with  customers  to  take  on  bigger  challenges  in  technology  development  and 
production, and share win-win results with customers.
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 citizens to ensure environmental protection and 
human health and safety.
Certificates

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 includes indicators such as delivery time, quality, finance 
and  operations.  Suppliers  with  unfavorable  review  outcomes  are  offered  audit  counseling  for 
improvement,  and  in  the  case  of  severe  issues,  procurement  or  status  as  qualified  suppliers  are 
terminated.

As  of  2019,  UMC  has  publicly  issued  a  non-financial  related  sustainability  annual  report  for  19 
consecutive  years.  At  the  same  time,  the  2018  UMC  Corporate  Social  Responsibility  Report  is  the 
14th  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  2020,  UMC  will  compile  the  2019  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.

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/TPEx  for  Listed  Companies.  For  other  details,  please  refer  to  the  “Corporate  Social 
Responsibility” of this Annual Report and UMC Corporate Social Responsibility Report on the UMC website.

UMC  is  a  current  member  of  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.

77

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

Evaluation Item

Yes

No

1. Establishment of ethical corporate management policies and programs

(1)   Does  the  company  declare  its  ethical  corporate  management  policies  and  procedures  approved  by  the  Board  

of Directors, in its guidelines and external documents, implement the policies?

(2)  Does  the  company  establish  policies  to  prevent  unethical  conduct,  analyze  and  evaluate  the  risk  of  unethical  
conduct  in  operating  scope  periodically,  at  least  including  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?

(3) 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 and recheck the policies periodically?

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,  implementation,  and  regularly  report  to  the  Board  of  Directors,  at  least  one  
time a year?

(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  Audit  Division  based  on  the  results  of  assessment  of  the  
in  unethical  conduct  to  examine  accordingly  the  compliance  with  the  prevention  
risk  of 

involvement 

  programs? or engage CPAs to carry out the audit?

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

78

United Microelectronics Corporation  |  Annual Report 2019 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Implementation Status

Abstract Explanation

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

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

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.  The  Company  also  establishes  a  risk  assessment  mechanism  against  unethical 
conduct. Other relevant education, training or tests are conducted from time to time for employee 
education. 

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

None

None

Please refer to Pages 85-89 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  develops  an  annual  audit 
plan based on risk evaluation results, including the involvement of unethical conduct, implements 
audit,  issues  audit  report  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 operating. 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 Employee Code of Conduct, and the Ethical Corporate Management 
Best Practice Principles 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  abovementioned  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 2019, UMC fabs in Taiwan and Singapore have completed the training courses and passed relevant 
tests.

None

None

79

Corporate Governance ReportEthical Corporate Management and Deviations from “The Corporate Governance Best-Practice Principles for TWSE/TPEx 

Listed Companies” (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 and follow-up?

(3) Does the company provide proper whistleblower protection?

4. Strengthening information disclosure

  Does  the  company  disclose  its  ethical  corporate  management  policies  and  the  results  of  its  implementation  
  on the company’s website and MOPS?

5. 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).

80

United Microelectronics Corporation  |  Annual Report 2019 
 
 
 
 
 
 
 
 
Implementation Status

Abstract Explanation

Deviations from “The Corporate 
Governance 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. Once investigation confirm, 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.  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 85-89 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 85-89 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 Employee Code of Conduct and the Ethical Corporate Management 
Best Practice Principles. 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 85-89 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.

81

Corporate Governance ReportEthical Corporate Management and Deviations from “The Corporate Governance Best-Practice Principles for TWSE/TPEx 

Listed Companies” (Continue)

Specific Measures for Ethical Management in 2018-2019

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	2019, the Legal Division coordinated overall regulatory compliance with the EU General Data Protection  
  Regulation. 

•	 The	content	of	the	Codes	is	reviewed	biennial:	
  1. Review of the Employee Code of Conduct was completed in April 2019. 
  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	2019, no 
  major ethical violations were reported.
•	 Employee	Code	of	Conduct	education	and	testing	were	conducted	in	August	2019, with 100% completion  
  rate.
•	 Employee	Code	of	Conduct	training	course	for	new	employees:	625 participants and a total of 937.5 hours  
  in 2018; and 224 participants and a total of 336 hours in 2019.

•	 Litigation	cases	in	each	quarter	of	2019 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 September 2019.
•	 For	 intellectual	 property	 rights	 education,	 three	 weekly	 training	 courses	 are	 offered	 to	 new	 employees:	 
Introduction  to  UMC  Intellectual  Property  Rights,  Trade  Secrets  &  Basic  Legal  and  Risk  Awareness  for 
Incoming  Data.  In  the  first  half  of  2019,  we  continued  to  focus  on  training  via  the  eUMC  website,  

  maintaining the frequency of announcement every six months.
•	 Introduction	to	UMC	Intellectual	Property	Rights	training	course	for	new	employees:	1,333 participants and  
  a total of 653 hours in 2018; 285 participants and a total of 71.3 hours in 2019.
•	 Trade	 Secrets	 training	 course	 for	 new	 employees:	 separate	 from	 UMC	 Intellectual	 Property	 Rights	 as	 
  an  individual  course  since  December  2018  with  54  participants  and  a  total  of  8.6  hours  in  2018;  and  285  
  participants and a total of 45.6 hours in 2019.
•	 Basic	Legal	and	Risk	Awareness	for	Incoming	Data	training	course	for	new	employees:	implemented	since	 
  April 2018. A total of 837 participants and a total of 209.3 hours in 2018; 285 participants and a total of 71.3  
  hours in 2019.

Financial reporting related 

internal control 

•	Annual audit by external auditors and internal Audit Division.
•	Results of internal audits for 2019 were reported at the Audit Committee/Board of Directors meetings on a  
  quarterly basis.

82

United Microelectronics Corporation  |  Annual Report 2019 
 
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 

83

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/UMC_Ethical_Corporate_Management_Best_Practice_

promptly  to  managers,  the  internal  auditor,  the  Audit 

Principles_eng.pdf for the presentation shown above.

84

United Microelectronics Corporation  |  Annual Report 2019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.

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Employee Code of Conduct	(Continue)

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 that might concern the individual or the company.

  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.

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Employee Code of Conduct	(Continue)

  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.

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;  

    H R    L e vel 1   M ana g e r:  H R _ D ire c to r @ um c . c o m;  L A&C  L e vel 1   M ana g e r:  z _ L e gal@ um c . c om;  o r  

    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.

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Employee Code of Conduct	(Continue)

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. 

(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  USD    100.00,  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.

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Employee Code of Conduct	(Continue)

  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.

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,  

  Company  shall  establish  a  risk  assessment  mechanism  

  managers,  employees,  and  agents  or  persons  having  

against  unethical  conduct,  analyze  and  assess  on  a  

substantial  control  over  such  companies  (“company  

regular    basis  business  activities  within  their  business  

  personnel”) shall not directly or indirectly offer, promise  

scope  which  are  at  a  higher  risk  of  being  involved  in  

to  offer,  request  or  accept  any  improper  benefits,  nor  

  unethical  conduct,  and  establish  prevention  programs  

commit  unethical  acts  including  breach  of  ethics,  illegal  

accordingly and review their adequacy and effectiveness  

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

on a regular basis.

  purposes of acquiring or maintaining benefits.

Article 8

Article 3

The  company  shall  request  their  directors  and  senior  

“Benefits” in these Principles means any element of value,  

  management  to  issue  a  statement  of  compliance  with  

including  money,  endowments,  commission,  positions,  

the ethical management policy and require in the terms  

services,  preferential  treatment  or  rebates  of  any  type  

of employment that employees comply with such policy.  

or  in  any  name.  Benefits  received  or  given  occasionally  

The  company  clearly  specifies  in  its  rules  and  external  

in accordance with accepted social  customs  and  that  do  

  documents  the  ethical  corporate  management  policies  

  not  adversely  affect  specific  rights  and  obligations  shall  

and  the  commitment  by  the  board  of  directors  and  the  

  be excluded.

Article 4

  management on rigorous and thorough implementation  

of  such  policies,  and  carries  out  the  policies 

in  

The  company  shall  comply  with  the  Company  Act,  

internal  management  and  in  commercial  activities.  

Securities and Exchange Act, Business Entity Accounting  

The company shall compile documented information on  

  Act,  Political  Donations  Act,  Anti-Corruption  Statute,  

the ethical management policy, statement, commitment  

  Government  Procurement  Act,  Act  on  Recusal  of  Public  

and  implementation  mentioned  in  the  first  and  second  

Servants Due to Conflicts of Interest, TWSE/GTSM listing  

  paragraphs and retain said information properly.

rules, or other laws or regulations regarding commercial  

Article 9

activities,  as  the  underlying  basic  premise  to  facilitate  

The  company  engages  in  commercial  activities  in  a  fair  

ethical corporate management.

and transparent manner based on the principle of ethical  

Article 5

  management.

The company shall abide by the operational philosophies  

Prior  to  any  commercial  transactions,  the  company  will  

of  honesty,  transparency  and  responsibility,  base  

take  into  consideration  the  legality  of  their  agents,  

  policies  on  the  principle  of  good  faith  and  establish  

suppliers,  clients,  or  other  trading  counterparties  and  

good  corporate  governance, 

risk  control  and  

  whether  any  of  them  are  involved  in  unethical  conduct,  

  management  mechanisms  to  create  an  operational  

and will avoid any dealings with persons so involved.

environment for sustainable development.

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Article 10

Article 16

  When  conducting  business,  the  company  and 

its  

In the course of research and development, procurement,  

  personnel may not directly or indirectly offer, promise to  

  manufacture, provision, or sale of products and services,  

offer, request, or accept any improper benefits in whatever  

the  company  and  its  personnel  observe  applicable  laws  

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

and  regulations  and  international  standards  to  ensure  

  public servants, or other stakeholders.

the  transparency  of  information  about,  and  safety  of,  

Article 11

their  products  and  services.  They  shall  also  adopt  and  

  When directly or indirectly offering a donation to political  

  publish  a  policy  on  the  protection  of  the  rights  and  

  parties,  organizations  or  individuals  participating  in  

interests  of  consumers  or  other  stakeholders,  and  carry  

  political  activities,  the  company  and  its  personnel  shall  

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

comply  with  the  Political  Donations  Act  and  their  own  

their  products  and  services  from  directly  or  indirectly  

relevant  internal  operational  procedures,  and  shall  not  

  damaging  the  rights  and  interests,  health,  and  safety  of  

  make such donations in exchange for commercial gains or  

consumers or other stakeholders.

  business advantages.

Article 12

Article 17

The  personnel  of  the  company  shall  exercise  the  due  

  When making or offering donations and sponsorship, the  

care  of  good  administrators  to  urge  the  company  to  

company  and  its  personnel  shall  comply  with  relevant  

  prevent  unethical  conduct,  while  always  reviewing  the  

laws and regulations and internal operational procedures,  

results  of  the  preventive  measures  and  continually  

and shall not surreptitiously engage in bribery.

  making  adjustments  so  as 

to  ensure 

thorough  

Article 13

implementation  of  its  ethical  corporate  management 

The  company  and  its  personnel  shall  not  directly  or  

  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  

  business 

relationship 

or 

influence 

commercial  

for    establishing  and  supervising  the  implementation  

transactions.

Article 14

of  the  ethical  corporate  management  policies  and  

  prevention  programs,  and  report  to  the  board  of  

The  company  and  its  personnel  shall  observe  applicable  

  directors annually.

laws  and  regulations,  internal  operational  procedures,  

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.

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Article 20

Article 24

The  company  shall  establish  effective  accounting  

The  company  shall  adopt  and  publish  a  well-defined  

systems 

  and  internal  control  systems  for  business  

  disciplinary and appeal system for handling violations of  

activities  that    may  possibly  be  at  higher  risk  of  being  

the  ethical  corporate  management  rules,  and  shall  

involved  in  unethical  conduct,  not  have  under-the-table  

  properly  make  the  announcement  on  the  company's  

or  secret  accounts,  and  conduct  reviews  regularly  so  

internal  website  including  the  title  and  details  of  the  

as 

to  ensure 

that 

the  design  and  enforcement  

violation, and the actions taken in response.

of the systems are showing results.

Article 25

The  internal  audit  unit  of  the  company  shall  devise  

The  company  shall  continuously  assess  the  promotional  

relevant  audit  plans  based  on  the  results  of  assessment   

effectiveness  promotion  of  its  ethical  management  

of  the  risk  of  involvement  in  unethical  conduct,  which  

  policy. The company shall also disclose the measures taken  

  plans  shall  include  parties  to  audit  and  audit  scope,  

for  implementing  ethical  corporate  management,  the  

items  and  frequency  etc.,  and  examine  accordingly  the   

status  of 

implementation,  and 

the  effectiveness  

compliance  with  the  prevention  programs.  The  internal  

of  promotion  on  company  websites,  annual  reports,  

audit  unit  may  engage  a  certified  public  accountant  

and  prospectuses,  and  shall  disclose  ethical  corporate  

to  carry  out  the  audit,  and  may  engage  professionals  

  management  best  practice  principles  on  the  Market  

to  assist  if  necessary.  The  results  of  examination  in  the  

  Observation Post System (MOPS).

  preceding  paragraph  shall  be  reported  to  senior  

Article 26

  management  and 

the  ethical  management 

team  

The company shall at all times monitor the development  

and  reduced  to  writing  in  the  form  of  an  audit  report  

of 

relevant 

local  and 

international 

regulations  

to be submitted to the board of directors.

concerning 

ethical 

corporate  management 

and  

Article 21

encourage  their    directors,  managers,  and  employees  

The  company  establishes  "UMC  Code  of  Conduct",  

to  make  suggestions,    which  the  company  will  base  its  

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

review  and 

improvements  for 

its  adopted  ethical  

and "UMC  Employee Code of Conduct" to guide directors,  

corporate  management  policies  and  measures 

in  

supervisors,  managers,  employees,  and  substantial  

order  to  achieve  better 

implementation  of  ethical  

controllers on how to conduct business.

Article 22

  management.

Article 27

The  company  shall  periodically  organize 

training  

The  principles  shall  be  implemented  after  the  board  

and  awareness  programs  for  company  personnel,  and  

of  directors  grants  approval.  The  same  procedure  shall  

should  execute  reward  and  discipline  systems  according  

  be  followed when the principles have been amended.

to the relevant rules of the company, so they understand  

the  companies'  resolve  to  implement  ethical  corporate  

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

  management, related policies, prevention programs, and  

pdf/UMC_Ethical_Corporate_Management_Best_Practice_

the consequences of engaging in unethical conduct.

Principles_eng.pdf for the presentation shown above.

Article 23

The  company  shall  establish  a  whistle-blowing  system  

and  guarantee  the  confidentiality  of  the  identity  of  

  whistle-blowers and the content of reported cases.

92

United Microelectronics Corporation  |  Annual Report 2019 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 2019.

  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 Act.

is  to  reasonably  assure  the  following  objectives:  The  

7.  This  Statement  was  passed  by  the  Board  of  Directors  

  effectiveness  and  efficiency  of  operations  (including  

in their meeting held on Feb. 26, 2020, 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  

Chairman: Stan Hung

  provided  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  

President: S C Chien

  environment,  (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,  

  2019, its internal control system (including its supervision  

  and management of subsidiaries), had effectively assured  

that the following objectives had been reasonably achieved  

Feb. 26, 2020

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 2019.

93

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

None.

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

The Major Resolutions from the Shareholders’ Meetings 

The Company’s 2019 Annual General Meeting was held at UMC’s Fab 8S Conference Hall, No.16, Creation Rd. 1, Hsinchu Science 

Park on June 12, 2019. 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

Acceptance of the 2018 business report and 
financial statements

•	 In	2018, UMC’s sales revenue was NTD 151,252,571 thousand, and full-year net 
income reached NTD 7,072,990 thousand, leading to an earnings per share of  

  NTD 0.58.

Acceptance of the 2018 Earnings Distribution 
Chart

•	 Distribution	of	2018  earnings with cash dividend of NTD 6,916,104,855.
•	 The	ex-dividend	record	date	was	set	for	July	22, 2019, and cash dividend for  
  common shares was paid on August 6, 2019.

Approval of the amendment of the Company’s 
“Acquisition or Disposal of Assets Procedure.”

Approval of the amendment of the Company’s 
“Financial Derivatives Transaction Procedure.”

Approval of the amendment of the Company’s 
“Loan Procedure.”

Approval of the amendment of the Company’s 
“Endorsements and Guarantees Procedure.”

•	 Implemented	in	accordance	with	resolution

•	 Implemented	in	accordance	with	resolution

•	 Implemented	in	accordance	with	resolution

•	 Implemented	in	accordance	with	resolution

1.

2.

3.

4.

5.

6.

94

United Microelectronics Corporation  |  Annual Report 2019 
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

2019.03.06

2019.04.24

2019.06.19

2019.07.24

2019.10.30

2019.12.18

2020.02.26

•	 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.

•	 Approved	the	Q1, 2019 Consolidated Financial Statements.
•	 Approved	capital	budget	execution.
•	 Approved	addition	of	proposals	of	the	2019 Annual General Shareholders’ Meeting.
•	 Approved	the	Company’s	20th share repurchase program.

•	 Approved	the	adjustment	of	2018 cash dividend ratio.
•	 Approved	the	record	date	for	2018 cash dividend.
•	 Approved	the	capital	reduction	for	the	cancellation	of	treasury	shares.

•	 Approved	the	Q2, 2019 Consolidated Financial Statements.
•	 Approved	capital	budget	execution.

•	 Approved	the	Q3, 2019 Consolidated Financial Statements.

•	 Approved	capital	budget	execution.

•	 Approved	the	2019 Business Report and Financial Statements.
•	 Approved	the	2019 distributable compensation for employees and directors.
•	 Approved	the	2019 Dividend Distribution.
•	 Approved	capital	budget	execution.
•	 Approved	issuing	Restricted	Stock	Awards	for	employees.
•	 Approved	the	date	of	convening	the	2020 Annual General 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	UMC’s	donation	to	UMC	Science	and	Culture	Foundation.

95

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 2019 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 2019 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

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

 Audit

Accounting

Finance

 2

 1

15 

4

 1

3

2

1

1

1

96

United Microelectronics Corporation  |  Annual Report 2019 
 
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

If there is no such thing, 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

65,983

23

30 

1,042

1,095

2019.01.01~
2019.12.31

-

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 2019, the audit fee was around NTD 9 million more than the audit fee from 2018, which is an increase of around 16%. This is 

mainly due to the acquisition of new subsidiaries that generate audit fees.

Information of CPA Change

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

Executive Vice President

Ming Hsu

Senior Vice President

Oliver Chang

Senior Vice President, CFO

Chitung Liu

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)

2020

Pledged  
Holding  
 Increase 
(Decrease)

Unit: Shares

2019

Pledged  
Holding  
 Increase 
(Decrease)

Holding  
 Increase  
(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

0

0

0

0

0

0

0

0

0

0

0

0

0

1,800,000

3,600,000

1,290,000

0

0

0

0

0

0

0

0

0

0

0

0

N/A

N/A

900,000

300,000

710,000

0

0

0

0

0

900,000

450,000

900,000

750,000

440,000

900,000

300,000

0

900,000

0

0

0

0

0

0

0

98

United Microelectronics Corporation  |  Annual Report 2019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, Chief Human 
Resources Officer

S S Hong

Francia Hsu

Eric Chen

Associate Vice President

Johnson Liu

Associate Vice President

Victor Chuang

Associate Vice President

Chuck Chen

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

Yanan Mou

Associate Vice President

Associate Vice President

C Y Hsu

Remi Yu

Associate Vice President

Michael CY Wang

Associate Vice President

Ji Fu Kung

Associate Vice President

C P Yen

Associate Vice President

Mindy Lin

Associate Vice President

Pang Min Wang

Former Associate Vice President T W Liu

Former Associate Vice President Chih Chong Wang

Holding  
Increase 
(Decrease)

2020

Pledged  
Holding  
Increase 
(Decrease)

Unit: Shares

2019

Pledged  
Holding  
Increase 
(Decrease)

Holding  
Increase  
(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

N/A

N/A

N/A

N/A

650,000

680,000

650,000

0

240,000

240,000

600,000

600,000

600,000

600,000

600,000

600,000

0

0

0

120,000

0

600,000

600,000

600,000

240,000

0

90,000

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

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

Note 2:  The data presented for 2020 was gathered until January 31, 2020.

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

Note 4: The shares changes for Oliver Chang, Victor Chuang, Chuck Chen, Yanan Mou, Remi Yu and Michael CY Wang are calculated starting from the assumed  

date.

Note 5:  The shares changes for T W Liu and Chih Chong Wang are reported up until their resignation.

Note 6: The Holding Increase (Decrease) data consists of shares under Trust with Discretion Reserved.

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

695,338,445

5.93

N/A N/A

N/A

N/A

None

None

Hsun Chieh Investment Co., Ltd.

441, 3 7 1 ,000

3.76

N/A N/A

N/A

N/A

Representative:
Ping Kun Hung

0

0

0

0

0

0

None

None

None

None

Nan Shan Life Insurance Company, Ltd.

317,538,000

2.71

N/A N/A

N/A

N/A

None

None

Representative:
Ying Tsung Tu

Data unavailable

Silicon Integrated Systems Corp.

285,380,424

2.43

N/A N/A

N/A

N/A

1,858

0.00

0

0

0

0

None

None

None

None

Representative:
Cheng Chien Chien

Silchester International Investors 
International Value Equity Trust

280,293,000

2.39

N/A N/A

N/A

N/A

None

None

Yann Yuan Investment Co., Ltd.

200,000,000

1 .7 1

N/A N/A

N/A

N/A

None

None

Representative:
Wen Ching Lin

Data unavailable

Prudential Assurance Company Ltd.

1 8 8 ,525,000

1 .61

N/A N/A

N/A

N/A

1 6 9 , 727,682

1 . 45

N/A N/A

N/A

N/A

None

None

None

None

Dimensional  Emerging  Markets  Value 
Fund

JPMorgan Chase Bank N.A. Taipei 
Branch in custody for Vanguard Total 
International Stock Index Fund, a series 
of Vanguard Star Funds

Silchester International Investors 
International Value Equity Group Trust

1 6 1 , 801,905

1 . 38

N/A N/A

N/A

N/A

None

None

1 4 3 , 946,000

1 . 2 3

N/A N/A

N/A

N/A

None

None

Note: The data shown above was recorded on July 22, 2019, which was the record date for the distribution of 2019 cash dividend.

100

United Microelectronics Corporation  |  Annual Report 2019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)

16,437,500

United Microelectronics (Europe) B.V.

9,000

UMC Capital Corp.

TLC Capital Co., Ltd.

Green Earth Limited

Fortune Venture Capital Corp.

7 1,662,97 7

397,956,300

977,000,000

401,734,448

100.00

100.00

100.00

100.00

100.00

100.00

UMC Investment (Samoa) Limited

1 ,520,000

100.00 

MTIC Holdings Pte. Ltd.

1 2,000,000

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

397,956,300

977,000,000

401,734,448

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

42.00

2,500,000

5.00

23,500,000

Hsun Chieh Investment Co., Ltd.

277,280,380

Best Elite International Limited

664,966, 2 7 5

36.49

100.00

0

0

0

0

277,280,380

664,966, 2 7 5

Wavetek Microelectronics Corporation

14 4,948,118

79.83 

3,705,414

2.04

1 4 8 ,653, 532

UMC Group Japan

UMC Korea Co., Ltd.

Omni Global Limited

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

United Semiconductor (Xiamen) Co., Ltd.

0

0 

N/A

65.22

N/A

Faraday Technology Corporation

34,240, 2 1 3

1 3.78 

102,973

0.04

34,343, 1 86

Yann Yuan Investment Co., Ltd.

46,000,000 

30.87

Sino Paragon Limited

2,600,000

100.00 

Triknight Capital Corporation

237,000,000 

United Semiconductor Japan Co., Ltd.

116,246,616 

40.00

100.00

0

0

0

0

0

0

0

0

46,000,000 

2,600,000

237,000,000 

116,246,616 

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, 2019.

45.44

93.63

4 7.00

36.49

100.00

81 . 8 7

100.00

100.00

100.00

65.22

1 3.82

30.87

100.00

40.00

100.00

101

Corporate Governance Report102

United Microelectronics Corporation  |  Annual Report 2019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 Thousand)

Authorized 
Capital

Amount
(In Thousand 
NTD)

Paid-in Capital

Shares
(In Thousand)

Amount
(In Thousand 
NTD)

Source of 
Capital

Capital
Increased by
Assets Other
than Cash

Remarks

Other

March, 2019 NTD 10

26,000,000

260,000,000

12,124,319

121,243,187

July, 2019

NTD 10

26,000,000

260,000,000

11,724,319

117,243,187

Note 1

Note 2

-

-

-

-

Note 1:  On March 21, 2019, the Hsinchu Science Park Bureau, Ministry of Science and Technology approved the capital reduction of NTD 3,000,000 thousand due  

to cancellation of treasury shares. The Company’s paid-in capital was decreased to NTD 121,243,187 thousand.

Note 2:  On July 8, 2019, the Hsinchu Science Park Bureau, Ministry of Science and Technology approved the capital reduction of NTD 4,000,000 thousand due  

to cancellation of treasury shares. The Company’s paid-in capital was decreased to NTD 117,243,187 thousand.

Note 3:  The data shown above was gathered until February 26, 2020.

Type of Stock

Share Type

Issued Shares(Note 1)

Un-Issued Shares

Total Shares

Authorized Capital

Common Stock

11,724,318,715

14,275,681,285

26,000,000,000

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

Note 2:  The data shown above was gathered until February 26, 2020.

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

15

59

725

520,631

1,579

523,009

161,934,388

806,451,345

1,327,982,228

3,416,733,132

6,011,217,622

11,724,318,715

Percentage (%)

1.38

6.88

11.33

29.14

51.27

100.00

Note: The data shown above was recorded on July 22, 2019, which was the record date for the distribution of 2019 cash dividend.

104

United Microelectronics Corporation  |  Annual Report 2019 
 
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

191,993

217,981

54,459

20,046

11 ,201

10,678

7,657

4,898

2,086

909

272

140

91

598

523,009

Shareholding
(Shares)

58,329,906

506,223, 1 7 4

405,300,074

246,151 ,792

200,466,954

263,008,540

298,595, 2 5 1

342 ,512, 92 1

288,376,568

249,166,256

134,558,264

96,442,978

81,549,522

8,553,636, 5 1 5

11,724,318, 7 1 5

Note: The data shown above was recorded on July 22, 2019, which was the record date for the distribution of 2019 cash dividend.

Preferred Shares

None.

List of Major Shareholders

Shareholder's Name

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

Hsun Chieh Investment Co., Ltd.

Nan Shan Life Insurance Company, Ltd.

Silicon Integrated Systems Corp.

Silchester International Investors International Value Equity Trust  

Yann Yuan Investment Co., Ltd.

Prudential Assurance Company Ltd.

Dimensional Emerging Markets Value Fund

JPMorgan Chase Bank N.A., Taipei Branch in custody for Vanguard Total 
International Stock Index Fund, a series of Vanguard Star Funds

Shares

  695,338,445 

441,371,000 

317,538,000 

 285,380,424 

280,293,000

 200,000,000 

188 ,525,000 

  169,727,682

  1 6 1 ,801,905 

Silchester International Investors International Value Equity Group Trust

1 43,946,000 

Note: The data shown above was recorded on July 22, 2019, which was the record date for the distribution of 2019 cash dividend.

Percentage (%)

0.50

4.32

3.46

2.10

1.71

2.24

2.55

2.92

2.46

2.12

1.15

0.82

0.69

72.96

100.00

Shareholding

Percentage (%)

5.93

3.76

2.7 1

2.43

2.39

1.7 1

1.61

1.45

1.38

1.23

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)

2020 (Note 7)

1 7.15

14.15

15.98

-

-

-

-

-

-

-

-

-

-

-

-

2019

17.05

10.55

13.63

17.61

*

2018

18.65

10.40

14.92

17.28

16.70

11,785,108,150

12,103,879,632

0.82

*

*

*

*

-

16.24

*

*

0.58

0.58

0.58989396

-

-

-

25.83

25.39

0.04

*Subject to change based on resolutions of the 2020 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 2020 was gathered until February 26, 2020.

Note 8:  The average closing prices for years 2018, 2019 and 2020 were NTD 14.98, NTD 13.32, and NTD 16.04, respectively.

106

United Microelectronics Corporation  |  Annual Report 2019 
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.

The Company’s proposal for 2019 earnings distribution was 

5.  The  remaining,  plus  the  previous  year’s  unappropriated  

passed during the 14th board meeting of the 14th term. This 

  earnings, shall be distributed according to the distribution  

proposal, a cash dividend of NTD 9,765,154,720 from retained 

  plan  proposed  by  the  Board  of  Directors  according  to  

earnings (NTD 0.75 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’ 

earned.  The  Board  of  Directors  estimates  the  amount  by 

Compensation in the Company’s Articles of Incorporation

taking  into  consideration  the  Articles  of  Incorporation, 

Employees’  and  Directors’  Compensation  Policy  in  the 

government regulations and industry averages. If the Board 

Company’s Articles of Incorporation is as follows:

of  Directors  resolves  to  distribute  employee  compensation 

The  Company  shall  allocate  no  less  than  5%  of  profit  as 

through stock, the number of stock distributed is calculated 

employees’ compensation and no more than 0.1% of profit as 

based on total employee compensation divided by the closing 

directors’ compensation for each profitable fiscal year after 

price  of  the  day  before  the  Board  of  Directors  meeting.  If 

offsetting any cumulative losses.

the Board of Directors subsequently modifies the estimates 

The  aforementioned  employees’  compensation  will  be 

significantly,  the  Company  will  recognize  the  change  as  an 

distributed in shares or cash. The employees of the Company’s 

adjustment  in  the  profit  or  loss  in  the  subsequent  period. 

subsidiaries  who  fulfill  specific  requirements  stipulated  by 

Information relevant to the aforementioned employees and 

the  Board  of  Directors  may  be  granted  such  compensation. 

directors’  compensation  can  be  obtained  from  the  “Market 

Directors may only receive compensation in cash.

Observation Post System” on the website of the TWSE.

The  Company  may,  by  a  resolution  adopted  by  a  majority 

vote  at  a  meeting  of  the  Board  of  Directors  attended  by 

The  Distributable  Compensation  for  Employees  and 

two-thirds  of  the  total  number  of  directors,  distribute  the 

Directors Passed during the Board Meeting.

aforementioned  employees’  and  directors’  compensation 

The  Company’s  2019  distributable  compensation 

for 

and report to the shareholders’ meeting for such distribution.

employees  and  directors  was  passed  during  the  13th  board 

meeting  of  the  14th  term.  The  distribution  status  is  as 

The  Basis  for  Estimating  the  Amount  of  Employees 

follows:

and  Directors’  Compensation,  the  Basis  for  Calculating 

The Company is to distribute NTD 1,132,952,365 as employee 

the  Number  of  Shares  to  be  Distributed  as  Employees’ 

cash  compensation  and  NTD  10,258,577  as  directors’ 

Compensation,  and  the  Accounting  Treatment  of  the 

compensation.

Discrepancy  between  the  Actual  Distributed  and  the 

There is no difference between the amount passed during the 

Estimated Amount.

Board meeting and the recognized amount during 2019 of the 

The  Company  recognizes  the  employees  and  directors’ 

aforementioned employees’ and directors’ compensation.

compensation in the profit or loss during the periods when 

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.

Distribution of Employees and Directors’ Compensation for 2018:

In Thousand NTD

Item

Board Resolution (March 6, 2019)

Employees’ compensation distributed in Cash

Directors’ compensation

1,400,835

7,624

Note: The actual distribution of employees and directors’ compensation for 2018 were consistent with the resolutions of the Board of Directors meeting held  

on March 6, 2019.

108

United Microelectronics Corporation  |  Annual Report 2019 
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

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.

None (Note)

None

None

Name of credit rating agency, rating date and 
result of rating

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. NTD 2,500 million for the 7-year bond was repaid on June 7, 2019.

Buyback of Treasury Stock
(1) Completed Share Buyback Programs

Instance

Purpose

Buyback period

Price range (NTD)
Classification and executed volume(Shares)
Executed amount(NTD)

Ratio of executed volume to the volume to be  
repurchased (%)

Cancellation and transfer volume(Shares)
Cumulative holding(Shares)

Cumulative holding as a percentage of total issued 
shares(%)

Note: The data shown above was gathered until February 26, 2020.

(2) Uncompleted Share Buyback Programs: None.

20th round

19th round

For cancellation
2019.04.25~2019.06.24

8.40~18.10

For cancellation
2018.11.06~2019.01.05

7.55~20.80

200,000,000 Common shares

300,000,000 Common shares

2,641,387,106

100

3,349,946,428

100

200,000,000

300,000,000

0

0

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 2019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 2019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 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 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, Taiwan

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 in the Fixed Exchange Rate, and this fixed NTD amount 
will be converted using the Prevailing Rate for payment in USD.

Principal payable

USD 573,600,000 as of February 26, 2020

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.

(c) 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.

(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 2019 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of Corporate Bonds	(Continue)

Type

Covenant

Name of credit rating agency, rating date 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

Year

2020

Currency Linked Zero Coupon Convertible Bonds due 2020

2019

2018

2017

2016

2015

2015.05.18
(Issue Date)

Convertible Price

NTD 14.2179

NTD 14.2179

NTD 14.8157

NTD 15.4320

NTD 15.9895

NTD 16.7408

NTD 17.50

Market 
Price

High

Low

 USD 121.726

 USD 121.802

USD 124.583

USD 114.894

USD 95.625

USD 100.864

 USD 107.981

 USD 95.185

USD 95.662

USD 92.255

USD 88.052

USD 87.579

Average

 USD 115.616

 USD 101.385

USD 110.480

USD 104.396

USD 92.453

USD 93.145

-

-

-

Issue Date

May 18, 2015

Reference Shares

Common shares

Note: The date presented for 2020 was gathered until February 26, 2020

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 137,725,632 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 February 26, 2020.

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

2.81

Low

 2.42

2020

Average

2.63

High

2.80

Low

 1.69

2019

Average

2.11

Note: The data represented for 2020 was gathered until February 26, 2020.

116

United Microelectronics Corporation  |  Annual Report 2019 
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’ rights from employee stock options that 
have not matured yet:
None.

Issuance of New Restricted Employee Shares

The Company did not issue Restricted Stock Awards during 2019 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 2019 

and as of the Annual Report Printing Date.

Financing Plans and Execution Status

Not Applicable.

118

United Microelectronics Corporation  |  Annual Report 2019Operations Overview

120  Business Activities
127  Overview of Market, Production, and Sales  
133   Employees 
134  Environmental Expenditure Information  
134 
Labor Relations 
138  Major Contracts

119

Operations OverviewBusiness Activities

Business Scope

UMC  provides  wafer  fabrication  services  through  state-of-

voltage,  integrated  bipolar/CMOS/depleted  CMOS,  MEMS 

the-art  manufacturing  processes  and  produces  chips  for 

sensor  and  mixed-signal/RF  CMOS.  UMC  strives  to  provide 

various  applications  within  the  IC  industry.  The  Company 

comprehensive services, delivering customized platforms to 

provides logic and mixed-signal process technologies from 0.5 

meet the system-on-chip (SoC) needs of different customers.

micron  to  14nm.  UMC  continuously  introduces  competitive 

process technologies and complete solutions to enable chips 

In 2019, revenue contribution from UMC’s wafer fabrication 

to be designed according to specific customer requirements. 

accounted for the vast majority of the Company’s total sales 

Customers  can  select  different  processes  according  to  their 

revenue,  with  the  remainder  generated  from  new  R&D 

product  application,  such  as  embedded  memory,  high 

ventures and manufacturing of solar energy.

Industry Overview

Current  Status  and  Development  of  the  Semiconductor 

or  increase  capacity  due  to  cost  vs.  benefit  considerations. 

Industry

Instead,  they  have  increased  the  proportion  of  wafer 

The  development  of  electronic  products  has  been  trending 

manufacturing  to  foundry  outsourcing.  Some  makers  of 

towards  enhanced  functionality, 

light  weight,  energy 

system  products  have  also  designed  ICs  (such  as  cellphone 

saving and carbon reduction. The incorporation of artificial 

chips) by themselves and outsourced to wafer foundry. These 

intelligence (AI) concepts, deep learning and voice control in 

industrial trends all have a positive impact on the sustainable 

recent  years  has  also  affected  the  direction  of  chip  design. 

development of the professional wafer foundry industry.

Therefore,  the  complexity  of  chip  designs  has  significantly 

For  2019,  worldwide  semiconductor  revenue  declined  12.9% 

increased due to the considerations of functional integration, 

due to the U.S. - China Trade War, and demand saturation for 

performance  enhancement,  and  low  power  consumption. 

PC  and  smart  phone,  etc.  The  worldwide  memory  industry 

In  addition,  in  response  to  the  constant  miniaturization  of 

declined over 30%, due to over-capacity, inventory correction 

semiconductor fabrication processes and cost considerations, 

and  demand  weakness.  Non-memory  semiconductor 

development  is  heading  towards  larger  diameter  wafers. 

declined  3%,  while  worldwide  foundry  business  showed 

This trend has caused the entry barrier into semiconductor 

a  slight  decline.  The  applications  of 

IoT,  automotive 

fabrication process technology to continuously increase, and 

electronics, AR/VR and artificial intelligence have created a 

the investment has also been growing exponentially.

major forward catalyst for the semiconductor market, which 

With  the  constantly  rising  entry  barriers  of  various 

is going to be the primary driving force for the future growth 

semiconductor sectors from design, fabrication, packaging, 

of the semiconductor industry.

and  test, 

it 

is  extremely  difficult  for  semiconductor 

Summarizing  the  views  from  all  major  forecast  agencies, 

companies  to  have  total  control  over  every  single  sector. 

continuous and steady growth of domestic and international 

Under  the  considerations  of  professional  division  of  labor 

economies can be expected in 2020, due to steady demand 

and  production  efficiency,  the  semiconductor  industry’s 

increase  from  5G,  AI,  IoT  and  automotive  electronics,  and 

move towards a vertical division of labor system is becoming 

a  rebound  of  the  memory  industry;  however,  the  global 

more and more obvious. The development cost of advanced 

economy and semiconductor market will also be negatively 

process  technologies  and  the  capital  expenditure  of  new 

impacted by COVID-19. The worldwide semiconductor market 

tools  and  equipment  have  risen  significantly,  such  that  the 

is expected to grow more than 7%, the non-memory segment 

industrial  structure  of  professional  division  of  labor  has 

should  grow  around  5%,  and  foundry  revenue  should  grow 

been formed. This phenomenon and the effect on the overall 

around 5%. However, there are still some uncertainties which 

environment has resulted in many existing Integrated Device 

could affect future economic development. The most crucial 

Manufacturers (IDMs) to announce that they will no longer 

keys are how the industry will navigate U.S. President Donald 

actively  invest  in  the  development  of  advanced  processes 

Trump’s economic decisions and the U.S. - China Trade War, 

120

United Microelectronics Corporation  |  Annual Report 2019Industry Overview (Continue)

the  slowdown  of  economic  growth  in  China,  conflicts  in 

The Development Trend and Competition of Electronic End 

regional politics, decisions by the US Fed, degrees of inflation 

Products

in various countries, and international energy price trends. 

Conventional  electronic  products  can  be  divided  into  four 

Therefore, all major global wafer foundries should be prudent 

categories:  Computer,  Communication,  Consumer,  and 

with their capital expenditures when expanding production 

Automotive.  Electronic  products  have  been  developed 

capacity.  The  impact  of  COVID-19  to  semiconductor  and 

towards  compact  size  and 

light  weight, 

low  power 

foundry in 2020 is great and crucial.

consumption,  interconnection,  artificial  intelligence,  and 

Within  this  context,  UMC  is  cautiously  expanding  capacity 

deep  learning.  For  example,  notebooks  and  tablets  can 

while  also  increasing  its  12-inch  wafer  foundry  footprint 

operate  longer,  and cellphones  can  be  wirelessly connected 

by  acquiring  100%  of  Mie  Fujitsu  Semiconductor  Limited 

to notebooks and tablets. In addition, the greatly enhanced 

(MIFS), to make MIFS a wholly-owned subsidiary. The name 

bandwidth  of  broadband  networks  has  contributed  to  the 

was changed to United Semiconductor Japan Co., Ltd. (USJC), 

development  of  networked  and  smart  TVs.  By  linking  all 

and technology is mainly from 90nm to 40nm. UMC has also 

things via the access, delivery, and processing of information 

dedicated  R&D  resources  to  advanced  manufacturing  and 

to  form  a  large  network,  many  breakthrough  applications 

specialty process technologies to continuously differentiate 

and enormous business opportunities in the fields of smart 

itself,  thus  enhancing  the  Company’s  competitiveness 

home,  health  care  system,  and  urban  facilities  become 

through  better  product  mix  that  will  help  strengthen 

available.  Looking  towards  the  future,  the  key  technologies 

profitability.

of smartphones, wearable electronics, AR/VR, autonomous/

electrical  vehicle,  AI/deep  learning,  voice  control  products, 

Correlation Among Upstream, Midstream, and Downstream 

and  IoT  will  be  constantly  adopted  and  commercialized. 

Industries

As  such,  professional  wafer  fabrication  services  should 

The  semiconductor  industrial  chain  can  be  divided  into  IC 

complete  corresponding  process  development  and  silicon 

design,  mask,  wafer  fabrication,  testing  and  packaging.  IC 

intellectual properties as soon as possible in order to meet 

design  is  mainly  the  design  according  to  the  specifications 

the needs of different customers of products resulting from 

and applications required by end products. Different IC chips 

the Internet of Things (IoT) generation.

and products will have emphasis on different characteristics, 

thus  leading  to  different  process  requirements.  Therefore, 

professional  wafer  foundries  must  provide  the  most 

current  technical  design  support  services  and  adequate 

silicon  intellectual  property  (IP)  as  early  as  possible,  and 

continuously optimize process technology to help IC design 

customers in their chip development. In the end, testing and 

packaging  companies  will  perform  IC  packaging  and  pre-

shipment testing to ensure customer chips are meeting their 

respective design specifications.

121

Operations OverviewOverview of Technology and R&D

R&D Expenses for the Past 5 Years

In Thousand NTD

2019

2018

2017

2016

2015

Operating Revenues

148,201,641

151,252,571

149,284,706

147,870,124

144,830,421

Research and Development Expenses

11,860,244

13,025,139

13,669,589

13,532,356

12,174,824

Research and Development Expenses as 
a Percentage of Operating Revenues

8.00%

8.61%

9.16%

9.15%

8.41%

Note :  The R&D expense for 2020 was calculated up until the publication date of February 26, 2020, which amounted to NTD 1,764,946 thousand. 

Technologies or Products Successfully Developed within the Past 5 Years

Year

2015

2016

2017

R&D Achievements

‧	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 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 introduce  
  PowerSlashTM fundamental IP solutions to meet the long-term battery life-time requirements of wireless IoT  
  products.

‧	Successful development of a customized 14nm FinFET process technology, which entered mass production for customer  
ICs. UMC’s 14nm wafer yields reached industry competitive levels, with products delivered to the 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 (SST’s)  
  embedded SuperFlash® non-volatile memory that features low power consumption, high reliability, outstanding data  
retention, and high durability, which can be used for automobile, industry, consumer products, and IoT applications.

2018

‧	Successful development of 22nm ultra-low power (ULP)/ultra-low leakage (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.

‧ 14nm FinFET customized process has entered mass production. In addition, UMC developed a new 

14nm FinFET platform process (14FFC), with yield for the 128Mb SRAM on this process having reached 
industry competitive levels. 14FFC also passed process and product reliability verification to officially enter  
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.

2019

‧	14nm FinFET Plus customized process has entered mass production. In addition, UMC developed a new 14nm FinFET  
  platform compact process (14FFC), with yield for the 128Mb SRAM on this process having reached industry  

competitive levels. 14FFC also passed process and product reliability verification to officially enter the pilot  

  production stage for customer chips.
‧ 40nm ReRAM was co-developed with Panasonic and is already at risk production stage. This high performance  
  ReRAM is fully compatible with UMC’s CMOS logic process.

122

United Microelectronics Corporation  |  Annual Report 2019 
 
 
 
 
 
 
 
 
 
Overview of Technology and R&D	(Continue)

UMC’s  R&D  team  has  always  been  dedicated  to  promoting 

UMC’s 14FFC platform and have entered the pilot production 

the development of advanced process technology. With the 

stage,  with  cooperation  with  other  customers  ongoing. 

adherence to the belief of “Customer’s Demand Comes First,” 

UMC’s  14FFC  is  expected  to  be  ready  for  customer  mass 

the  Company  has  been  providing  pure-play  wafer  foundry 

production in 2020.

solutions to meet market trends and customer needs, which 

include  world-class  technology,  customer  support  services, 

Embedded MRAM

and state-of-the-art manufacturing. With the expansion of 

For  future  market  demands  related  to  advanced 

IoT, 

UMC’s  Tainan  Science  Park  site,  the  Company  continues  to 

automotive  electronics,  wearable  products,  and  cloud 

recruit and train a large number of R&D talent. In 2019, UMC 

applications,  conventional  embedded  non-volatile  flash 

continued to significantly invest in R&D resources with total 

memory based on eFlash is gradually showing an imbalance 

annual  R&D  expense  reaching  NTD  11.86  billion,  which  has 

between cost and performance. In light of this, UMC invested 

led to fruitful R&D achievements in advanced and specialty 

in the R&D of eMRAM in 2018. For this R&D plan, UMC plans 

technologies.

to  verify  a  macro  test  chip  in  2020  and  expects  that  this 

technology  can  be  incorporated  into  its  22nm  platform  in 

22nm ultra-low power/ultra-low leakage Process Technology

2021 for potential customers.

UMC has developed its 22nm process technology and 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 of 

ReRAM

ReRAM is a novel NVM with a simple structure, low operation 

voltage, low read current, fast program/erase speed and very 

22nm process technology has been enhanced by 10%, power 

good reliability. The ReRAM process is fully logic compatible 

consumption has been reduced by 20%, and area has been 

with fewer add-on masks and low extra cost. UMC started to 

reduced by 10%. Therefore, the cost competitiveness of 22nm 

co-develop ReRAM with Panasonic in 2017 and was already in 

technology has been greatly improved to provide customers 

risk production in 2019. UMC plans to make this novel NVM 

with  more  process  options.  22nm  ultra-low  power/ultra-

technology widely available.

low  leakage  technologies  are  suitable  for  IoT,    automotive 

electronics,  industrial  applications,  and  various  wearable 

Display Driver IC Process Technology

products  that  utilize  analog,  mixed  signal,  RF,  and  other 

relevant  technologies.  The  introduction  of  22nm  by  UMC 

has  maximized  the  value  of  the  Company’s  28nm  process, 

with IP verification from 28nm directly converting to 22nm 

being  relatively  easy  due  to  the  use  of  compatible  design 

specifications.  UMC’s  22nm  process  has  been  introduced 

to  customers  and  has  completed  pilot  production.  Mass 

production is expected in 2020.

14nm Process Technology

The  Display  Driver  IC  market  has  demonstrated  potential 

for rapid growth and possibilities in numerous applications, 

including  smartphone,  portable  phone/PDA,  computer 

screen,  touch  screen,  Tablet  PC,  e-book,  TV,  digital  camera, 

on-board screen, and wearable display. UMC’s High Voltage 

Technology  has  led  the  development  of  various  voltages  to 

meet the specifications requirements of various application 

markets.  UMC  was  the  first  in  the  foundry  industry 

to  introduce  a  40nm  High  Voltage  Process,  and  mass 

production has been achieved for high-end LCD Display and 

UMC  reached  the  mass  production  milestone  for  its 

high-end OLED Display markets. Meanwhile, the 28nm High 

customized  14nm  FinFET  process  in  early  2017,  and  the 

Voltage Platform has entered pilot production. In addition, 

competitiveness  of  device  performance  and  yield  has 

UMC has begun developing a 22nm High Voltage Platform to 

reached  leading  industry  standards.  In  2019,  UMC’s  other 

provide smaller SRAM with higher capacity in order to meet 

14nm project (14FFC FinFET process platform) was completed 

the demand of the 2K/4K high-end display market.

and  has  a  50%  performance  improvement  and  double  the 

gate density compared to 28nm. 128Mb SRAM yield reached 

Power Management Process Technology

mass  production  quality  levels  for  product  yield  and  has 

passed process and product reliability verification. Currently 

several  customers  have  already  designed  products  using 

As  for  the  demands  for  various  power  management 

applications  (PMIC),  UMC’s  super  high  voltage  (5V  and  30V 

in  coordination  with  300V,  500V  or  700V)  processes  have 

123

Operations OverviewOverview of Technology and R&D	(Continue)

entered  the  mass  production  stage.  This  technology  is 

embedded  flash  technology.  In  addition  to  the  successful 

suitable for special applications such as power charger, LED 

mass  production  of  0.18um  and  0.11um  technologies,  55nm 

bulb,  power  amplifier,  AC/DC  converter,  and  motor  driver 

embedded flash memory has successfully entered the mass 

and  can  meet  industry  demand  for  higher  voltage  and 

production stage. The MCU products equipped with 40nm 

reduce  the  energy  consumption  during  voltage  conversion 

embedded  charge  trap  (eCT)  flash  memory  is  also  in  mass 

in order to save energy. As for customers with demands for 

production,  and  the  40nm  technology  platform  with  SST 

highly  integrated  power  management,  UMC  can  provide  a 

(Silicon  Storage  Technology)  embedded  SuperFlash®  non-

complete  silicon  IP  platform  compatible  with  the  standard 

volatile memory has entered small volume pilot production 

logic  process,  and  various  0.5,  0.35,  0.25,  0.18,  0.11  micron 

in order to provide customers with better performance and 

and  55nm  process  technologies  that  integrate  world-class, 

higher density memory. UMC has begun developing a 28nm 

third  generation  low  conduction  resistance/high  sustained 

SST  embedded  SuperFlash®  non-volatile  memory  platform 

voltage  (5V~200V)  devices  that  can  be  used  for  cell  phone, 

and  researching  new  materials  for  flash  memory  such  as 

Tablet  PC,  appliance,  vehicle  applications,  etc.  UMC  has 

ReRAM  in  order  to  meet  customer  demands  for  higher 

also  begun  developing  a  BCD+NVM  technology  platform, 

specifications.  Embedded  flash  memory  is  embedded  on 

and  adopted  a  12-inch  55nm  copper  process  for  PMIC  as  a 

UMC’s logic technology platform, such that the silicon IP on 

complete SoC solution for energy-saving demands.

all logic technology platforms can support the SoC design of 

our customers to further enhance industry competitiveness.

CMOS Image Sensor (CIS), MEMS, and RFSOI Technologies

For  CMOS  image  sensor  technology  development,  UMC’s 

Mixed Signal/RF Foundry Design Kit

65nm process has been verified to enter the mass production 

Foundry  design  kits  can  provide  IC  design  houses  with  an 

stage. Other new processes, such as back-illuminated sensor 

automated  design  environment  to  eliminate  unnecessary 

(BIS)  and  55nm  CIS  process  technologies,  have  entered  the 

human  manipulation  to  ensure  the  success  of  their  chip 

verification  stage.  This  technology  is  expected  to  provide 

design.  UMC’s  complete  mixed  signal/RF  design  flows  for 

higher  sensing  resolution  to  meet  product  upgrade 

different  processes  cover  both  the  frontend  and  backend 

requirements.  With  the  rising  popularity  of  MEMS  sensor 

of  RF  IC  Design,  which  can  provide  channels  to  obtain  the 

applications, the demand for CMOS-MEMS pure-play foundry 

design and simulation of circuit level, circuit layout, layout 

service  has  also  increased.  For  UMC’s  MEMS  microphone 

verification,  and  precise  RF  device  mode.  In  the  frontend 

process  platform,  in  2019,  several  customers  taped  out 

flow,  UMC’s  fundamental  devices  of  its  mixed  signal/RF 

multiple  new  products  using  UMC’s  MEMS  microphone 

process  are  executed  using  a  general  design  environment 

reference process, and the volume continued to grow steadily. 

and  simulation  tools. 

In  the  backend  flow,  it  covers 

The second generation of CMOS-MEMS gas sensors has also 

parameterized cell (P Cell), including image-oriented layout, 

entered  the  verification  phase.  Regarding  RFSOI  process 

in order to provide an automated and complete design flow. 

technology, its unique substrate characteristics can prevent 

Meanwhile, a callback function is provided during the design 

high-frequency  signal  harmonic  frequency  distortion  and 

flow  to  reduce  the  data  input.  Design  houses  can  enhance 

reduce  power  loss.  At  present,  UMC’s  0.13um  and  0.11um 

the productivity and reduce the risk of error via this flow.

processes  have  been  widely  adopted  by  smart  phones  for 

UMC has worked with EDA vendors to provide its customers 

mass  production.  UMC  also  started  to  develop  90nm  and 

with  a  parameterized  spiral  inductor  design  kit  based  on 

55nm  RFSOI  technology  platforms  to  catch  subsequent 

full-wave simulation – VIL (Virtual Inductor Library). VIL can 

growth momentum.

Non-Volatile Flash Memory

allow  RF  CMOS  design  houses  to  create  and  simulate  the 

customized inductors compatible with UMC’s process. VIL is 

established based on UMC’s EMDM (Electromagnetic Design 

UMC has always been dedicated to providing customers with 

Methodology)  such  that  engineers  can  easily  and  precisely 

complete SoC solutions, among which the non-volatile flash 

create any RF structure. EMDM allows design houses to have 

memory device is the essential device for most applications. 

more flexibility to create new geometric modes via editing 

Auto  chips,  MCU  applications  and  consumer  products  such 

parameters such as diameter, turn, width, and track pitch.

as  touch  control  applications  all  require  the  support  of 

124

United Microelectronics Corporation  |  Annual Report 2019Overview of Technology and R&D	(Continue)

In addition, UMC’s foundry design kit provides the Optimum 

successfully  and  mass  produced  products  using  UMC’s  I/O 

Inductor Finder (OIF). OIF allows design houses to quickly and 

library on 110, 90, 65, 55, 40, and 28nm processes. UMC also 

precisely create a large amount of calibrated inductor design 

provides customized embedded flash memory (eFlash) IP on 

libraries  with  respect  to  UMC’s  process.  Meanwhile,  OIF 

various  process  generations  according  to  customer  needs 

also allows users to use software to execute the optimized 

and  has  successfully  helped  customers  with  quick  market 

inductor  via  several  simple  steps.  For  example,  customers 

entry for their products. In addition to UMC making IPs, the 

can  define  desired  inductance  coefficients  to  reach  the 

Company  has  also  established  partnerships  with  industry-

balance  between  quality  factor  and  area.  OIF  can  select  a 

leading IP vendors in order to provide physical library, non-

design  that  best  fits  the  specifications  from  the  inductor 

volatile  memory  IPs,  and  diversified  analog/mixed  signal 

design library within the shortest amount of time.

IPs that support industrial standard interfaces (such as USB, 

Silicon IP Support

DDR, and HDMI). This year UMC has extended its long-term 

IP cooperation with all leading IP vendors to 22nm and 14nm 

Along  with  the  design  trends  toward  more  precise  deep 

processes in order to provide customers with a competitive 

sub-micron  generation  processes  and  increasing  design 

design support environment.

complexity,  foundry  can  no  longer  only  focus  on  process 

yield  improvement,  but  must  also  help  customers  shorten 

Intellectual Property

their design flow and reduce design cost. In terms of library 

Facing  increasing  technological  competition,  UMC  has 

design  kits,  UMC  strengthens  its  design  support  capability 

significantly 

strengthened  patent 

filings 

to  protect 

by constantly providing optimized library design kits closely 

intellectual  property  in  addition  to  greatly  enhancing 

integrated with the Company’s process technology in order 

technological  capabilities  in  critical  fields.  Following  the 

to  help  designers  accelerate  the  completion  of  their  chip 

Company’s  operation  and  development  planning,  UMC’s 

design.  From  mature  to  advanced  process  technologies  to 

IP  division  has  formulated  strategies  and  plans  for  the 

specialty  processes,  UMC  can  provide  complete  Standard 

protection  and  development  of  intellectual  property  to 

Cell,  I/O  and  customized  libraries  to  meet  customers’  chip 

promote the steady growth of the number of patent rights. 

design  needs.  In  terms  of  logic  process,  UMC’s  standard 

Status  on  the  implementations  is  reported  to  the  board  of 

cell  library  for  advanced  processes  can  provide  devices  of 

directors  at  least  once  a  year.  The  Company  was  granted  a 

various  operating  and  threshold  voltages  (Vt).  Along  with 

total of 515 domestic and foreign patents in 2019, 345 of which 

low  power  library  kits,  they  can  meet  various  customer 

are  US  patents,  94  ROC  patents,  and  76  China  patents.  The 

needs  for  design  flexibility  and  high  performance/low 

total accumulated number of UMC’s patents is 13,507, which 

power applications. UMC’s I/O library has an extremely small 

can provide a thorough and strong IP foundation for UMC’s 

area,  and  it  is  qualified  through  a  stringent  Electrostatic 

technologies. To keep this competitive edge, UMC has greatly 

Discharge  (ESD)  test  to  help  customers  design  competitive 

increased  the  quality  and  quantity  of  critical  technology 

products  that  can  pass  the  ESD  test  with  voltage  as  high 

patents  in  order  further  strengthen  customer  service  and 

as  4kV.  So  far,  numerous  customers  have  taped-out 

competitiveness while helping them to create profits.

125

Operations OverviewLong-Term and Short-Term Business Plans

UMC  is  committed  to  delivering  comprehensive  wafer 

fabs  which  are  for  sale,  and  will  evaluate  the  possibility 

fabrication solutions to its customers based on cooperation 

to  acquire  it,  because  acquiring  an  existing  fab  is  more 

with partners in the entire supply chain, including suppliers 

effective to meet UMC growth strategy -- to expand cost-

of  equipment,  automated  electronic  design  tools,  wafer 

effective capacity for competitiveness. 

design  service,  silicon  IP,  and  packaging  and  testing.  The 

Company  provides  customers  with  verified  reference 

Facing market requirements for continuously advancing 

flows, broad silicon IP combinations, free design cell library 

semiconductor  technology,  in  addition  to  UMC’s  own 

databases, and diversified options for packaging and testing. 

technology  R&D,  the  Company  will  work  with  strategic 

With advanced process technologies and world-class 12-inch 

partners  and  supply  chain  vendors  to  jointly  develop 3D 

wafer  fabrication  technology,  UMC  can  assure  accelerated 

chip  integration  technologies.  UMC  will  also  continue 

time-to-market for its customers’ SoC designs.

raising environmental protection awareness and care for 

Short-Term Objectives

UMC’s short-term objectives are to expand the production 

capacity of 8-inch and 12-inch specialty technologies and 

advanced processes, enhance capacity utilization rate, and 

strengthen profitability. Currently, UMC owns four 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

Advanced  and  specialty  process  technology  R&D  and 

investment  has  always  been  a  primary  focus  of  UMC. 

The advanced processes equipment procurement will be   

managed  more  efficiently,  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  providing  customized 

advanced and specialty process technology  platforms  to 

meet  customers’  needs.  UMC’s  capital  expenditure  for 

2020  is  expected  to  be  approximately  USD 1  billion.  In 

order to expand business scale, UMC is looking for existing 

the environment. In addition to establishing a low carbon 

supply chain, UMC is dedicated to the support of various 

environmental protection activities and the promotion of 

environmental protection education.

Outstanding UMC Achievements in 2019

•	 UMC led the industry by implementing the “2018 Climate  

  Change Program” as its highest guiding principle.

•	 UMC  earned  its  first  “Green  Chemical  Application  and  

Innovation Award”.

•	 UMC  was  among  the  highest  ranked  in  “Corporate  

  Governance Evaluation” for the 5th consecutive year. 

•	 UMC  was  named  as  a  “FTSE4  Good 

Index  Series  

  Constituent” for the second consecutive year.

•	 UMC was selected as a “DJSI Global Component” for 12th  

consecutive year.

•	 UMC received final approval for 100% acquisition of Mie  

Fujitsu Semiconductor.

•	 UMC earned its first “National Enterprise Environmental  

  Protection Gold Award”.

•	 UMC was named as 2019 “Taiwan Enterprise Sustainability  

  Platinum Award” for the second consecutive year.

•	 UMC  earned  the  “2019  Energy  Saving  Gold  Award  by  

  Ministry of Economic Affairs”.

•	 UMC  was  awarded  with 

“Corporate  Continuous  

Improvement  Activity”  honors  for  the  16th  consecutive  

year.

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United Microelectronics Corporation  |  Annual Report 2019 
 
 
 
 
Overview of Market, Production, and Sales
Market Analysis
Primary Product Sales Regions

Niche of Competition

UMC’s products have been well recognized by its important 

•	 There  has  been  prosperous  development  of  IC  design  

customers  covering  all  global  regions.  The  sales  regions  of 

  houses in China in recent years. Geographical proximity,  

the  Company’s  products  are  mainly  Asia  Pacific  and  North 

similar culture, the acquisition of HJTC, and the operation  

America, which account for 57% and 32% of UMC’s total sales 

  of a 12-inch fab in Xiamen have all helped UMC to take  

revenues, respectively. Europe and Japan accounted for 11% 

  advantage of the China’s IC industry growth. In order to  

of total sales revenues. In the future, UMC will continue to 

  expand  capacity  globally,  UMC  acquired 100%  of  Mie  

strengthen its cooperation with world-class customers in all 

  Fujitsu  Semiconductor  Limited  (MIFS),  to  make  MIFS  a  

regions and focus on the development of high-end products 

  wholly-owned subsidiary. It has been renamed as United  

for  customers  in  order  to  ensure  consistent  medium  and 

  Semiconductor Japan Co., Ltd. (USJC), and mainly utilizes  

long-term company growth.

Market Share

  90nm to 40nm technology. All of these have all helped  

  UMC gain a good position in the global semiconductor  

  market and increase market share. It has also enabled  

UMC  is  a  world  leading  semiconductor  wafer  foundry.  The 

  UMC  to  conduct  integration  of  products,  orders,  and  

total revenue of the global pure-play wafer foundry market 

  process  technologies  in  response  to  customers’  needs  

in  2019  was  approximately  USD  62.2  billion.  According  to 

in order to pursue the relative competitive advantages  

the  estimation  by  market  survey  institution  Gartner,  UMC 

  of China’s market expansion and operational scale; it is  

has a 7.9% share of the pure-play wafer foundry market, and 

  expected that UMC can benefit from the rapid growth in  

its  main  competitors  are  TSMC,  Globalfoundries  and  SMIC. 

this regional market.

In 2019, the total operating income of these four companies 

•	 UMC  is  optimistic  about  the  demand  for  high-end  

accounted  for  84.0%  of  the  total  pure-play  wafer  foundry 

chips  in  the  future  market  of  mobile  communication  

market.

  and  computation;  thus  proper  and  cautious  capital  

  expenditure  to  promote  the  R&D  of  related  processes  

Future Supply-Demand Status and Market Growth

  and the establishment of advanced production capacity  

•	 According to the market survey of Semiconductor Industry  

  has  been  conducted.  The  Company  has  also  actively  

  Association 

(SIA),  the  total  sales  revenue  of  the  

  deployed its specialty technology solutions, such as high  

semiconductor industry in 2019 was close to USD 418.3 billion,  

  voltage, embedded flash memory, advanced packaging,  

  which has declined by 12.9% from 2018. The semiconductor  

  RFSOI, etc., to continue working with leading customers  

sales revenue in 2020 is expected to rebound with over 7%  

to pursue more flagship products. UMC is committed to  

  growth.

  providing sufficient production capacity and to establish  

•	 According to the market survey of Semiconductor Industry  

  an open technical platform with our back-end packaging  

  Association  (SIA),  the  sales  revenue  breakdown  of  the  

  and testing partners to provide proper services.

semiconductor  industry  by  area  in  2019  was  as  follows:  

•	 The overall structure of Taiwan’s semiconductor industry  

  China  led  with  34%,  followed  by  North  America  at  22%,  

is complete, exhibiting world-leading competitiveness  

  Europe at 9.2%, Japan at 8.5%, and Asia others (excluded  

in terms of both operational efficiency and cost. Taiwan’s  

  China, Japan) totaling 26.3%.

semiconductor industry competitiveness combined with  

•	 Looking  forward  to  the  driving  force  behind  pure-play  

  UMC’s technical edge results in a positive multiplier effect  

foundry market growth, the growth momentum of fabless  

for the company.

  design  companies  typically  outpaces  the  semiconductor  

industry,  and  IDMs  have  adopted  or  raised  the  ratio  of  

  wafer  fabrication  outsourcing  to  save  costs  and  reduce  

  market risk. Both of these factors have contributed to the  

  high growth of the pure-play wafer foundry market; thus  

the performance of the pure-play wafer foundry industry  

is  expected  to  be  better  than  the  overall  semiconductor  

industry. 

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Operations Overview 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Overview of Market, Production, and Sales (Continue)

Favorable Factors for Development Outlook

•	 UMC	 developed	 an	 advanced	 28nm  eHV  (embedded  

Considering  the  continuous  growth  of  the  IC  industry, 

  High-Voltage)  process,  and  mass-produced  AMOLED  

the  ideal  position  of  pure-play  wafer  foundry,  and  the 

  display driver ICs successfully. Compared to previous- 

company’s competitiveness, the favorable factors of long-

  generation technology,   Display drivers designed using  

term company development are summarized as follows:

  28nm  eHV  could  improve  power  efficiency  of  smart  

•	 Under  the  trend  of  IC  design  and  fabrication  vertical  

  phone screens. Looking forward, the rising demand of  

  division of labor, there has been prosperous development  

  5G  smart  phones  is  expected  to  bring  considerable  

  of the pure-play wafer foundry market and rapid growth  

revenue growth.

  of global demand for pure-play wafer foundry services.

•	 UMC	developed	advanced	28nm technology, including  

•	 IDMs have adopted the strategy of outsourcing to wafer  

  Poly-SiON  and  high-K  metal  gate  processes,  which  

foundry, thus contributing to the growth of the pure-play  

  have  already  been  mass-produced  successfully  for  

  wafer foundry market.

  many logic/RF products. Besides these, an automotive- 

•	 Forming  strategic  alliances  with  major  international  

  grade  process  was  also  qualified  and  related  IP  is  

companies to acquire long-term stable orders.

ready, with many customers designing-in now.

•	 A  strong  management  team,  advanced  process  R&D,  

•	 UMC’s	 22nm  technology  process  provides  customers  

  and superior business development capability can result  

further advantage for cost-saving and improved device  

in outstanding operational performance.

  efficiency. The process design kit has been released to  

•	 UMC is one of the most active companies in the foundry  

customers; we expect this process will extend our long- 

industry  in developing 12-inch wafer fab manufacturing  

term competiveness.

capabilities, owning a 12-inch fab in the Tainan Science   

•	 UMC’s	 14nm  (FinFET)  process  technology  already  

  Park, one in Singapore, and another in Xiamen, China,   

successfully  entered  mass  production  for  customer  

  and the latest one in Japan. As for the future investment   

chips in early 2017. The yield for shipments to primary  

in  12-inch fabs, the production capacity will be further   

customers has reached industry competitive levels for  

  expanded  according  to  customer  needs  and  market   

this  highly  advanced  process.  Being  one  of  the  few  

  application trends.

foundries  in  the  world  to  achieve 14 nm  production  

•	 In	response	to	the	ongoing	trends	of	electronic	products,	 

c a p a b i l i t i e s ,   U M C   h a s   f u l l y   d e m o n s t r a t e d   t h e  

  UMC  has  developed  specialty  technologies  including  

  advantages  of 14 nm  FinFET  in  terms  of  ef ficiency,  

  embedded  memory,  mixed  signal,  RF,  MEMS  sensor,  

  p o w e r,   an d   gate   d e ns i t y   in   o rd e r   to   dr i ve   n e x t  

  and high voltage to meet customer demand for process  

  generation  ICs  in  the  fields  of  communication,  AI,  

technologies and to establish a leading position for UMC  

  and  various  consumer  products.  UMC’s 14nm  FinFET  

technology development.

is 55% faster with twice the gate density of 28nm, while  

•	 UMC	has	established	the	most	powerful	IoT	specialized	 

  power consumption is reduced by around 50%.

  platform  solution  in  the  industry  and  provided  an  

•	 UMC	developed	a	mmWave	process	technology	--	ranging	 

  ultra-low-power  (ULP)  process  with  extremely  low  

from  55nm to 40nm ultra low power, and a 28nm high  

current leakage design suitable for all kinds of hybrid  

  performance/low power platform. We are developing  

  process technologies. IoT chip designers can integrate  

  22nm  ultra  low  power/ultra  low  leakage  process  

  various process schematics to the customized platform  

technology,  which  of fers  customers  more  choices  

  based  on  UMC’s  low  power  consumption  technology  

for  their  produc t  planning,  to  meet  reliable,  low  

in  order  to  meet  the  specific  requirements  to  enter  

  power and cost-effective requirements.

the IoT and wearable electronic device markets.

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United Microelectronics Corporation  |  Annual Report 2019 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Overview of Market, Production, and Sales (Continue)

•	 UMC	 RFSOI	 technology	 is	 based	 on	 a	 CMOS	 process	 to	 

•	 Among	political	economic	tension	between	international	 

  meet cost effective and strict technology requirements  

society,  countries  sanction  competing  countries  for  

for  the  smart  phone  market.  The  RFSOI  technology  

their market expansion and technology development.  

  platform provides RF N-gate/P-gate MOS and scalable  

  This impacts the company’s investment and operation  

  advanced  RF  modeling  to  precisely  predict  the  circuit  

  activities.  The  U.S.-China  trade  war  was  caused  by  a  

characteristics of the process.  High-density and high- 

long-term  trade  deficit  between  U.S.  and  China,  and  

  voltage  MIM,  scalable  inductor  and  high-precision  

  U.S. concerns about infringement of intellectual property  

resistors will provide our customers with the best design  

rights  and  business  secrets.  T his  trade  war  is  not  

  and cost advantage.

  expected to conclude in the near future and will even  

•	 The process platform of 40nm integrated with Silicon  

  become a long-term confrontation. Intervention includes  

  Storage  Technology  (SST)  embedded  SuperF lash®  

tariffs, closed sales, policy intervention and government  

  non-volatile  memory  is 20 %  smaller  than  the  mass  

s u b s i d y,   e t c .   T h e   i m p a c t s   t o   U M C ,   i n c l u d i n g   a  

  production  55nm unit, and the total memory area has  

tariff  barrier  between  the  U.S.  and  China  will  lower  

  been reduced by 20-30%. There have been more than 20 

semiconductor  demand  of  the  U.S.,  China  and  even  

customers  and  products  manufactured  at  all  stages  

  worldwide,  with  customers  reducing  orders  and  a  

  based  on  UMC’s 55nm  SST  embedded  f lash  memory 

  weakening global semiconductor market. U.S. regulation  

  process,  including  SIM  card,  financial  transaction,  

to stop foreign shipments of products containing U.S.  

  automobile, IoT, MCU, and other product applications.

technology to China’s  companies  will possibly  impact  

•	 The	 MEMS	 gas	 f low	 sensor	 process	 platform	 jointly	 

  UMC’s shipment to China’s customers. High-tech material  

  developed  by  UMC  and  one  of  its  customers  is  in  

  export bans  bring uncertainty  to  our production  and  

successful mass production and has been provided to  

time-to-delivery. 

  end  customers  in  various  fields,  including  medical  

  products and automobile gas flow sensors. Currently the  

Countermeasures

customer has successfully sent samples to major mobile  

•	 Continuous	 cost	 saving	 and	 efficiency	 enhancements	 

  phone makers to be tested.

to effectively reduce costs, and cautiously and effectively  

•	 UMC	has	provided	Through	Silicon	Via	(TSV)	2.5D/3D IC  

  ex panding  the  produc t ion  capac it y  of  advanced  

technology to customers requiring advanced packaging  

  processes;  strengthening  the  competitive  edge of the  

technology under the environment of an open supply  

company  by  increasing  the  ratio  and  product  mix  

chain  cooperative  development.  With  top-notch  TSV  

towards high-end processes. 

  and front-end wafer processes provided by foundry fabs,  

•	 Ex panding	 the	 foot pr int	 of	 12-inch  fabs  through  

  highly innovative mid-to-back-end 3D IC stacking, and  

investment  participation  and  strategic  alliances  to  

  packaging and testing from back-end service providers,  

reduce the time, risk, and cost of construction of new  

  a  complementar y  and  complete  plat for m  can  be  

fabs and to serve local markets. 

formed to provide a reliable 2.5D/3D IC solution for the  

•	 Diversification	 of	 customer	 area	 and	 products	 can	 

semiconductor market.

lower  the  impact  of  the  trade  war.  Besides  existing  

strong business from China and the U.S., UMC plans to  

Unfavorable Factors for Development Outlook

  expand more business from Europe, Japan, Korea, etc.  

•	 Due	to	the	optimism	of	future	long-term	annual	growth	 

  To  avoid  the  uncertainty  of  originally  high  growth  

for semiconductor demand, all major global pure-play  

  business from server, automotive and industrial markets,  

  wafer foundries and China have increased their capital  

  UMC plans to gain more business opportunity from 5G,  

  expenditures for expansion of production capacity based  

IoT, AI, etc. 

  on  a dv an ce d  p ro ce ss e s ,  which   c o ul d  l ea d   to   an  

imbalance of supply and demand in the future market.

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Operations Overview 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         
Overview of Market, Production, and Sales	(Continue)

•	 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  maintains  the  existing  advantages  of  

stable high yield and complete services. The benefits of  

these are twofold: UMC can increase its lead against new  

competitors while also creating differentiation such that  

  UMC can continue to be the best option for its customers. 

•	 Providing	the	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. 

•	 RFSOI	 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 

designs.

130

United Microelectronics Corporation  |  Annual Report 2019 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 the US, Japan, Germany, 
and 
Italy,  Korea, 
Southeast  Asia.  They  can  offer 
steady and high quality silicon 
wafers.

Taiwan, 

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 costs.
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

2019

Name

Supplier “ A”

Others

Net Purchase

Amount

Percentage of 
Net Purchase

Relation to UMC

Amount

Percentage of 
Net Purchase

5 ,67 5 , 7 5 1

35,982,480

41,65 8 , 2 3 1

14

86

100

None

5, 27 7,316

37,620,283

42,897,599

12

88

100

In Thousand NTD

2018

Relation to UMC

None

Note: As of the Annual Report printing date, if there is any financial data of the publicly listed company (or company with stocks transaction 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

17,576,293

130,625,348

Operating Revenues

148,201,641

Percentage 
of Operating 
Revenues
12

88

100

2019

Relation to UMC

Amount

None

15,357,470

In Thousand NTD

2018

Relation to UMC

None

Percentage 
of Operating 
Revenues
10

135,895,101

151,252,571

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: Due to the increased demand of communication products, the contribution of customer “A” slightly increased.

131

Operations Overview 
 
 
 
 
 
 
 
 
 
 
 
 
Production Figures

Segments

Unit Capacity

Production 
Quantity

Production Value 
(In Thousand NTD)

Capacity

Production 
Quantity

Production Value 
(In Thousand NTD)

2019

2018

Wafer 
Fabrication

In Thousands 
of 8-inch Wafer 
Equivalents

New Business

Total

Sales Figures

8,148

7,229

123,055,291

7,673

7,145

122,845,827

227,873

123,283,164

413,129

123,258,956

Segments

Unit

Shipments

Wafer 
Fabrication 

New Business

In Thousands 
of 8-inch Wafer 
Equivalents

Total

Note: Net Sales.

2,977

4,212

Domestic

Export

Domestic

Export

Domestic

Export

2019

Amount 
(In Thousand NTD)

53,190,058

89,434,961

17,627

26,11 8

53,207,685

89,461,079

Shipments

3,077

4, 0 3 1

Industry Specific Key Performance Indicators

KPI

Utilization Rate

Wafer Sales Contributed from 40nm and 
below Technologies

Target

94.7%

36.5%

Actual

88.7%

34.4%

2018

Amount 
(In Thousand NTD)

54,034,510

88,515,794

82,118

73,581

54,116,628

88,589,375

2019

Difference

-6.0ppts

-2. 1 ppts

132

United Microelectronics Corporation  |  Annual Report 2019 
 
 
 
 
 
 
 
 
 
 
 
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 2020 was gathered until February 26, 2020.

2020

 11,206

 810

 23

 7,387

2019

 11,328

 809

 24

 7,416

  19,426

  19,577

2020

  37.2

2020

 10.7

2020

 1.6

  27.9

 48.1

 22.4

2019

  37.1

2019

 10.5

2019

 1.6

  28.1

 47.6

 22.7

2018

11,651

753

 31

7,494

19,929

2018

35.4

2018

8.7

2018

1.7 

  29.4 

 48.5 

20.4

133

Operations OverviewEnvironmental Expenditure Information

By the publication date of the  2019 annual  report,  all audits 

technology  and  preventive  equipment,  totaling  NTD  860 

on  UMC  by  environmental  protection  agencies  showed 

million.  The  monthly  pollution  prevention  expenses  and 

results  in  compliance  with  regulatory  requirements  with  no 

O&M of pollution prevention equipment exceeded NTD 89.5 

environmental  protection  violations  or  any  penalty  or  loss 

million, while the monthly waste disposal cost exceeded NTD 

resulting from environmental pollution. 

19  million.  Meanwhile,  NTD  8.7  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 700,000 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 protection 

training,  and 

strengthening  of  operating 

system 

expenditures  and  items  will  include:  1.  Costs  of  replacement, 

management.

renewal,  and  upgrade  of  existing  pollution  prevention 

In  2019,  the  total  environmental  protection  related 

equipment;  2.  Operational  costs  of  pollution  prevention 

expenditures  for  all  UMC  fabs  have  exceeded  NTD  2.27 

equipment;  3.  Waste  disposal  costs,  and  4.  Environmental 

billion.  The  environmental  related  expenditures  include 

monitoring costs.

investment 

in  highly  efficient  pollution  prevention 

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  and 

hotlines staffed by complaint specialists, and communication 

Southern Taiwan Science Park Bureau for Excellent Workplace 

management  units,  the  Company  has  achieved  competent 

Equality.

communication and effective problem-solving.

At  the  same  time,  UMC  also  won  various  corporate 

In  addition  to  effectively  maintaining  harmonious  labor 

sustainability  awards  in  2019.  For  corporate  sustainability, 

relations, UMC respects and promotes international human 

UMC  ranked  in  the  top  5%  for  corporate  self-governance, 

rights  by  providing  employees  with  a  quality  employment 

and  has  won  the  Taiwan  Corporate  Sustainability  Platinum 

environment.  Moreover,  in  UMC  and  all  its  subsidiaries, 

Award,  Ministry  of  Economic  Affairs  Energy  Saving 

the  management  and  implementation  of  labor  relations 

Benchmark  Award  and  National  Enterprise  Environmental 

such  as  employee  welfare  measures,  in-service  education, 

Protection  Award.  In  addition,  UMC  has  been  listed  on  the 

training and retirement systems are planned and conducted 

Dow Jones Sustainability Index (DJSI) for 12 consecutive years.

in  accordance  with  or  above  and  beyond  the  requirements 

From  recent  years  to  the  publication  of  this  annual  report, 

of  law.  UMC  has  also  set  up  in-house  physicians  to  provide 

UMC  has  not  suffered  any  loss  arising  from  labor  disputes. 

medical  services  and  quality  counseling  services  for  the 

In  view  of  the  abovementioned  comprehensive  system  and 

physical  and  mental  health  needs  of  employees,  thereby 

diligent management, UMC can continue to effectively avoid 

promoting harmonious labor relations.

labor disputes or losses. 

134

United Microelectronics Corporation  |  Annual Report 2019Education and Training

H i g h - q u a l i t y   t a l e n t   i s   t h e   c o r n e r s t o n e   o f   U M C ’s 

•	 Mana gemen t	 S k i l ls	 Training:	 Mana gemen t	 sk i l ls	 

competitiveness, and comprehensive talent development 

  development  is  an  important  task  for  supervisors  at  

and cultivation are the keys to improving human resource 

  all levels. To this end, UMC provides a series of courses  

quality.

  targeting competencies relevant to supervisors, such as  

UMC’s  human  resource  cultivation  policies  are  tailored 

  management behavior, skills, knowledge and corporate  

according to the career development needs of employees 

  culture integration. To assist supervisors with achieving  

in their particular job type and rank. The policies provide 

  cooperation  in  their  work  and  management,  learning  

systematic training for all employees, such as new employee, 

  resources  such  as  foreman/sectional  chief,  grassroots  

technical,  management,  quality  control  and  language 

  supervisor, middle-level supervisor and senior executive  

courses.  In  addition,  a  wide  range  of  learning  resources 

  training courses are conducted.

such as online learning courses, on the job training (OJT) 

•	 Quality	Training:	Training	courses	relevant	to	UMC	quality	 

and  in-service  training  are  also  offered  to  provide  all 

  policies and quality requirements are conducted, such as  

employees with a working environment that is conducive 

  knowledge management, proposal improvement, project  

for continuing development. In 2019, UMC conducted a total 

  management,  problem  analysis  techniques,  statistical  

of 7,733 training sessions totaling 13,740 hours of training, 

  process control and experimental design.

with 176,398 participants and total training expenses of NTD 

•	 Language	 Training:	 Employee	 language	 proficiency	 is	 

48,335,306.

  determined through language testing. Training programs  

The following is a summary of training courses provided by 

  targeting  specific  learning  needs  are  then  provided  

UMC:

  accordingly to strengthen employee language skills and  

•	 New	 Employee	 Orientation:	 To	 help	 new	 employees	 

  workplace competitiveness.

  quickly  adapt  to  the  work  environment,  orientation  

•	 E-Learning:	UMC	has	established	a	learning	webpage	for	 

  training  is  provided  for  new  employees  to  give  them  

  employees that integrates all course information, training  

  a basic understanding of semiconductor processes and  

  systems and data enquiries. The online platform enables  

  establish a common language. In addition to basic courses  

  employees  to  easily  access  needed  information  for  

  on  company  organization,  remuneration  and  benefits,  

  planning and learning without schedule constraints.

  basic  daily  necessities  and  industrial  safety,  U-Camp  

•	 On	the	Job	Training:	Each	fab	has	an	Training	Committee	 

  courses on workplace stress management and adopting a  

  to provide training for employees in the various divisions.  

  positive attitude also help new employees understand  

  The training is based on skills required by specific jobs  

  the  spirit  and  values  of  UMC.  To  help  new  employees  

  and  professional  sk ills  assessment  to  ensure  that  

  quickly develop professionalism and an appropriate job  

  e mpl o ye e s   have   th e   r e q ui r e d   j ob   c o mp e te n c i e s .  

  attitude,  they  are  paired  with  a  mentor  to  help  them  

  Additional  training  based  on  individual  differences 

  quickly integrate into the corporate culture.

is  als o  prov ide d  to  improve  the  qu ali t y  o f  work .  

•	 Technical	Training:	To	help	engineers	quickly	master	the	 

  The Human Resources Division conducts an annual review  

  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  

  of  t raining  outcome  to  de ter mine  and  direc t  the  

  technologically,  UMC  has  a  comprehensive  training  

  operations of the Training Committee in each fab, and  

  blueprint  for  engineers  that  is  specific  to  divisional  

  convenes a training outcome meeting so that the fabs can  

  at tr ibutes.  T he  cur r iculum  includes  basic  courses  

  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, insider trading prevention and conflict of interest  

  changes and progress of technology.

  are conducted within the Company and promoted in the  

135

Operations Overview 
 
 
 
 
  Planning Section of the UMC intranet site. 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  Resources  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 

•	 Club Recreation: UMC has five major categories of clubs,  

of the Company, and that a company can continue to develop 

  such  as  sports,  arts  and  community  service.  Whether  

and progress only with appropriate and sufficient talent. To 

  active or more sedentary, employees can choose from a  

this end, UMC is committed to creating a healthy workplace 

  variety of content. In 2019, UMC had a total of 30 clubs and  

environment. In addition to providing competitive salaries 

  about 2,347 participants.

and  dividends,  a  comprehensive  education  and  training 

•	 Accommodation  and  transportation  assistance:  UMC  

system, diverse benefits and a safe and healthy working 

  provides safe and comfortable accommodations for both  

environment,  UMC  has  also  developed  a  comprehensive 

  d i r e c t   l a b o r   a n d   i n d i r e c t   l a b o r.   F r e e   s c h e d u l e d  

employee welfare system in accordance with local laws and 

  transportation and shuttle services are also provided for  

regulations and regional needs.

  convenient and quick connections.

UMC provides a variety of welfare measures as follow:

At the same time, the UMC Welfare information platform 

•	 Nutritionally balanced and delicious meals: Each fab has  

was optimized in 2018 with the introduction of the Welfare 

its independently operated cafeteria and a variety of meal  

Club  APP;  through  GPS,  employees  can  instantly  find 

  options. By combining the cafeteria, cafe and convenience  

contract stores, thereby further enhancing their after-work 

  store into an integrated dining area, employees can enjoy  

life.

  healthy and balanced meals.

UMC also holds employee health in high regard, and plans 

•	 Fitness Sports Center: UMC operates its own recreation  

and implements benefits in accordance with or above and 

  center in the Hsinchu science park, and Tainan Fab 12A 

beyond  the  requirements  of  the  law.  For  example,  UMC 

  has the UMC Park Activity Center, a multi-purpose sports  

complies with the Act of Gender Equality in Employment, 

  center gym and the LM Dormitory gym. In addition, other  

the Regulations for Establishing Measures of Prevention, 

  facilities such as gyms and aerobic classrooms are located  

C o r r e c t i o n ,   C o mp lai n t   an d   P unishm e n t   o f   S e x u a l 

in appropriate areas of UMC fabs to reflect the concept of  

Harassment at Workplace, and regulations for leave such 

  a healthy workplace.

as personal, sick, maternity, paternity, menstrual, family 

•	 Welfare  Events:  T he  Welfare  Commit tee  routinely  

care, marital, bereavement, occupational sickness, annual, 

  organizes events (such as Family Day, art activities, movies,  

parental and nursing leaves.

  trips), and in coordination with company  celebrations,  

  organizes 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.

136

In  particular,  UMC  is  the  first  private  enterprise  in  the 

country to promote a 12-hour rotating shift for its direct labor. 

Further worth mentioning is the Company’s comprehensive 

insurance system where from the day of their employment, 

employees are provided with numerous insurance services. 

United Microelectronics Corporation  |  Annual Report 2019 
 
Employee Benefits	(Continue)

In  addition  to  labor,  health  and  free  group  insurance  (NT  2 

activities  and  education  are  then  organized  for  employees  

million  group  insurance  and  cancer  insurance),  the  spouse 

accordingly  to  give  them  further  knowledge  and  skills  for 

and children of employees can enjoy life insurance, accident 

self-managing  their  health  and  the  health  of  their  families. 

insurance  and  group  medical  insurance,  and  their  parents 

Furthermore,  through  occupational  safety  and  health  

can  enjoy  accident  and  medical  insurance,  thereby  freeing 

project  management,  UMC's  Health  Center  has  installed 

them of worry and enabling them to work their best for the 

an  internal  reporting  system  for  potential  occupational  

company and society.

Employee Health
UMC  has  a 

longstanding  commitment  to  creating  a  

workplace  environment  that  is  physically,  mentally  and 

spiritually  healthy.  UMC  is  convinced  that  only  employees 

who  are  physically  and  mentally  healthy  can  be  highly 

efficient  and  produce  excellent  work  performance. 

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.

While  valuing  the  physical  condition  of  employees,  UMC 

also  spares  no  effort  in  their  mental  health  management. 

Through  a  confidential  agreement  mechanism,  employees 

are  also  provided  with  free  professional  psychological 

counseling.  Moreover,  employees  and  their  families  are  

given  new  health  knowledge  through  online  platforms, 

lectures,  conference  and  publicity  materials  to  help  them 

maintain good physical and mental health.

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  assisted  in  addressing  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  2019,  UMC  adopted  the  “My  UMC  Health  Diary”  as  the 

main focus of health promotion activities for each quarter, 

and integrated occupational safety and health laws such as 

maternal  protection,  overwork  prevention,  human  factors 

engineering  and  healthy  body  posture  regulations  to 

protect  employee  health.  At  the  same  time,  medical  checks 

for  employees  and  hospital  check-ups  for  their  families 

are  provided  annually.  A  variety  of  health  promoting 

chronic injury and disease, with regular hearing inspections 

and vision care programs to effectively prevent occupational 

injuries.  Moreover,  as  of  2019,  UMC's 

IT  divisions 

have  integrated  their  existing  systems  to  construct  a  

customized  personal  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  preventive  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.

Risk  control  identifies  and  mitigates  risks  before  they  can 

cause  harm,  and  to  minimize  the  probability  of  occurrence 

and  degree  of  damage,  the  Health  Center  must  naturally 

assume 

frontline  duty.  The  above-mentioned  health 

management  methods  and  health  promotion  activities  are 

intended  to  ensure  that  employees  sufficiently  understand 

and  actively  participate  in  improving  their  own  health 

condition,  so  that  the  purpose  of  early  diagnosis  and 

treatment can be achieved. It is hoped that every employee 

can  support  and  grow  with  the  Company,  and  can  work 

together for the sustainable development of UMC.

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.

137

Operations Overview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

UMC Group(USA)

Jan. 1, 2019~Dec. 31, 2024

Service

United Microelectronics (Europe)
B.V.

Jan. 1,2018~Dec. 31, 2022

Sales

UMC Group Japan Co., Ltd.

Jan. 1, 2018~Dec. 31, 2022

Service

UMC Korea Co., Ltd.

Jan. 1,2019~Dec. 31,2019

Sales and related service for 
semiconductor products

Marketing support service for 
semiconductor products

Sales and related service 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  patent  holders  to  ensure  that  UMC’s  customers 

With  nearly  40  years  dedication  in  earning  semiconductor 

are not subject to the risk of wafer process infringement. The 

patents,  UMC  has  achieved  a  predominant  position  in  the 

following are patent licensing contracts received and given 

semiconductor  industry.  UMC  also  enters  into  patent  or 

by UMC:

technology licensing contracts with major semiconductor or 

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 cross-licensing for 
semiconductor  process, 
semiconductor  device 
and semiconductor design.

IBM  licensed  its  20nm 
C M O S 
F i n FE T 
an d 
technology to UMC.

None

None

Patent License

Conversant Intellectual 
Property Management 
Inc. & Conversant IP 
(Taiwan) Inc.

Feb. 8, 2018~Dec. 31, 2021

P a t e n t  
semiconductor process.

l i c e n s e   f o r 

None

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-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 
Semiconductor 
Fujitsu 
Limited.

None

138

United Microelectronics Corporation  |  Annual Report 2019Major Contracts	(Continue)

Contract Type

Contracted Party

Contract Period

Key Content

Restrictive Clause

Patent Cross-
license

Avago Technologies 
General IP Pte. Ltd.

Sep. 29, 2019~Dec .31, 2023

Patent License NXP B.V.

Sep. 30, 2015~Sep. 29, 2020

Patent  cross-license  for 
semiconductor  component 
related patents.

license 

Patent 
and 
assignment  of  right  for 
patent application.

None

None

Patent Cross-
license

Katana Silicon 
Technologies, LLC

From Nov. 05, 2019

Cross  license  for  specific 
patents.

None

Technology 
License

United Semiconductor 
(Xiamen) Co., Ltd.

Dec . 1, 2015~Dec. 31, 2019 UMC  licensed  its  55/40nm 
process  technology  to 
United  Semiconductor 
(Xiamen)  Co., Ltd.

Technology 
License

United Semiconductor 
(Xiamen) Co., Ltd.

Ap r. 1 , 20 1 7~Mar. 31, 2022 UMC 

licensed 

its  28nm 
process  technology  to 
United  Semiconductor 
(Xiamen) Co., Ltd.

Technology 
License

United Semiconductor 
(Xiamen) Co., Ltd.

Nov. 23, 2018~Nov. 22, 2028 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.

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

Construction

Nomura Micro Science Engineering  
Co., Ltd., Wholetech System Hitech 
Limited, Sumitronics Taiwan Co., Ltd., 
K. J. Filtration Technologies Ltd.,  
Organo Technology Co., Ltd., and Taiyo 
Nippon Sanso Engineering Taiwan Co., 
Ltd. and others.

Anhui 3S Mechanical and Electrical 
Engineering Co. Ltd.,   
Nova Technology Corp.,  
L&K Engineering (Suzhou) Co., Ltd., 
Shanghai Hantech Co. Ltd.,  
Wholetech Group (Shanghai) Trading 
Co. Ltd. and others.

From Jan. 2019

For  building  the  facilities  of  Fab  12A  in 
the  Tainan  Science  Park,  UMC  signed 
construction  contracts  with  the  vendors 
listed  in  the  second  column.  The  total 
contracted amount exceeded NT$1.4 billion.

Restrictive 
Clause

None

From Jan. 2019 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 US$3.12 million.

139

Operations OverviewReview of Financial Position, 
Operating Results, Risk Management

141 
Financial Position 
142  Financial Performance
143  Cash Flow 
143  Major Capital Expenditures from Recent Years and Impact on 

Company’s Finance and Business

143  Main Reasons and Improvement Plans for Recent Annual  

Reinvestment Policies and Profit or Loss, and Investment Plans for  
the Coming Year

144  Risk Management and Evaluation 
153  Other Necessary Supplements

140

United Microelectronics Corporation  |  Annual Report 2019 
 
 
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

2019

1 5 3 , 7 5 7,1 4 1

150,374,096

5 ,198,247

6 0,857,881

370,187,365

72 ,7 14,322

90,258,621

162,972,943

1 1 7, 5 7 5 ,798

39,550,394

60,820,280

2018

1 4 1 ,193,432

172,846,595

2 ,991,804

4 7, 5 7 3,075

364,604,906

49,899,337

108,169,078

158,068,415

124,243,1 8 7

40,399,363

6 1 ,588,543

2 0 7,214 ,422

206,536,491

Analysis of deviation of over 20% between 2019 and 2018:
1. Intangible assets:
  Due to United Semiconductor Japan Co., Ltd. becoming a subsidiary of the Company this year.
2. Other assets:
  Due to the Company adopting IFRS 16 this year and recognizing right-of-use assets.
3. Current liabilities:
  Due to the increase in current portion of long-term liabilities.

In Thousand NTD

Differences

Differences(%)

12,563,709

(22,472,499)

2,206,443

13,284,806 

5,582 ,459

22,814,985

( 17,910,457)

4,904,528

(6,667,389)

(848,969)

(768,263)

6 7 7,931

9

(13)

74

28

2

46

(17)

3

(5) 

(2)

(1)

0

141

Review of Financial Position, Operating Results, Risk ManagementFinancial Performance

Items

Years

2019

2018

Differences

Differences (%)

In Thousand NTD

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

148,201,641

151,252,57 1

(3,050,930) 

(126,886,669)

(128,412,544)

2 1 ,314,972

(21,807,284)

5,1 82 ,162

4,689,850 

1,045,787

5,735,637 

393,130

6,128,767 

22,840,027 

(22,159,679)

5,1 16 ,884 

5,797,232

(3,612,833) 

2,184,399 

458,653

2,643,052 

1,525,875

(1,525,055)

352,395 

65,278 

(1,107,382) 

4,658,620 

3,551,238 

(65,523)

3,485,7 15 

(2)

(1)

(7)

(2)

1

(19)

(129)

163

(14)

132

Analysis of deviation of over 20% between 2019 and 2018:
1.  Non-operating income and expenses
  Due to an increase in net gain of financial assets and liabilities at fair value through profit or loss and share of profit of  
  associates and joint ventures.
2.  Income from continuing operations before income tax
  Due to an increase in net gain of financial assets and liabilities at fair value through profit or loss caused by stock market  
  volatility and an increase in share of profit of associates and joint ventures.

142

United Microelectronics Corporation  |  Annual Report 2019Cash Flow

Analysis of Cash Flow for the Year Ended December 31, 2019

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

83,661,739

54,904,148

(43,073,410)

95,492,477

-

-

Note:  Net cash flow from investing and financing activities includes the effect of exchange rate changes of NT$(1,524,847).

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  activities  is  mainly  from  
  acquisition of subsidiary, acquisition of property, plant and  
  equipment and acquisition of intangible assets.

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 of treasury  
  stock, which are partially offset by 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

95,492,477

55,581,978

(58,396,603)

92,677,852

-

-

Major Capital Expenditures from Recent Years and Impact on Company’s Finance and Business
Execution Status of Major Capital Expenditures and Sources of Funding

In Thousand NTD

Operating 
Segment

Project

Actual and Expected Sources of 
Funding

Completion Status
(Up To 2019)

Total Amount
(Up To 2019)

Capital Expenditures Plan

2019

2018

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

34,225,028

15,874,483

18,350,545

Completed

3,106,514

1,867,289

1,239,225

Completed

18,993

18,688

305

Expected Benefit from Capital Expenditures
Based on aforementioned capital expenditures, in 2019 the ratio of production capacity from high-end processes of 40nm or 
below is above 30%, of which the production capacity for high-end 28nm or below has grown by 11% 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, 2019, a total capital 
of USD 1.22 billion has been invested into the Company’s 
Xiamen 12-inch fab for 28-90nm wafer service  to  pursue  

further growth of the Company. The Company mitigates risk 
by building capacity in different countries and also increases 
its  operation  efficiency.  The  Company  completed  the 
acquisition of Mie Fujitsu Semiconductor Limited on October 
1, 2019 to closely serve the Japanese market. By doing so, the 
Company  attributes  its  capacity  to  different  production 
sites and effectively penetrates into Japanese niche markets 
(automotive and IoT). Moreover, the acquisition can help to 
elevate the Group’s operational efficiency.
UMC’s investment policies are based on long-term strategic 
investments  to  match  the  Company’s  operations  and 
development.

143

Review of Financial Position, Operating Results, Risk Management 
 
 
Risk Management and Evaluation

Enterprise Risk Management Policies
Through  risk  management  methods  and  organizations, 
UMC  effectively  prevents  and  controls  enterprise  risks; 
comprehensively  implements  them  in  daily  operations; 
shapes and deepens risk culture; and establishes transparent 
and  smooth  risk  communication  to  maintain  steady 
operations.

Enterprise Risk Management Architecture 

BOD/Chairman

Audit Committee

Enterprise Risk Management
Committee

Internal Audit & Control

Divisions

Under  the  guidance  of  the  risk  management  policy,  the 
Enterprise  Risk  Management  Committee  coordinates 
relevant  departments  of  the  Company  to  jointly  review 
the  internal  and  external  risks  that  the  Company  faces, 
facilitates  risk response measures for  company-wide  major 
risks, and reports regularly to the board of directors. It also 
incorporates internal audit and internal control functions to 
ensure that the  risks  associated with  operations  have  been 
effectively controlled.

Risk event impacts and measures include important risks related to environmental, social or corporate governance issues of 
the company's operations.

Future R&D Projects and the Estimated R&D Expenses
Estimated annual R&D expenses for the next three years

Item/Year

R&D expenses

Operating revenue 
(undisclosed financial forecast of the Company)
The share of R&D expenses to operating revenue

Major R&D Projects in the Future

Latest Annual 
Project

Current Progress

2020

Not applicable

Not applicable

2021

Not applicable

Not applicable

2022

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 900 million 2020

Key Success Factors for Future R&D

Customer  circuit  design  verification 
and  product  yield  have  been  qualified 
to mass production standards.

ultra-low 

power/ultra-low 

22nm 
leakage 
technology  development  by  securing  strategic 
customers, determining device specifications and 
starting  new  process  technology  development. 
The  process  development 
to 
be  completed  with  customer  product  pilot 
production starting in 2020.

is  expected 

Relevant  process  development  and  verification 
should  be  conducted  according  to  the  project 
schedule of  28nm HPC+ image signal processor.

NTD 400 million 2021

UMC  finished  14nm  FinFET  process  platform 
development and also passed process & product 
qualification. Currently passed customer product 
assessment  and  will  enter  risk  production  by 
2020.

NTD 1.4 billion

2020

Customer  circuit  design  verification 
and  product  yield  have  been  qualified 
to mass production standards.

The  lead  customer  has  verified  UMC’s 
14nm  FinFET  process  platform 
for 
production.

Relevant  process  development  and  verification 
should  be 
the 
development  project  schedule  for  embedded 
magneto-resistive memory.

conducted  according 

to 

NTD 1.2 billion

2021

Customer’s  circuit  design  verification  and 
product yield have been qualified to mass 
production standards.

Development and verification of 90/55/40/28/22nm 
specialty technology platform (including HV, CIS, 
eFlash, RFSOI, etc.)

NTD 1.7 billion

2021

to  

•	 Cooperating  with  customers 
  create a win-win situation.
•  Completing 
  time.
•  Quality verification is in compliance  
  with customer requirements.

verification 

on  

IP 

22nm  process 
technology

28nm HPC+ 
image signal 
processor  
technology

14nm process 
technology

Embedded 
magneto-
resistive 
memory

Special 
technology 
R&D

Note: The R&D expenses for the next three years will account for around 60% to 75% of the total annual R&D expenses. 
144

United Microelectronics Corporation  |  Annual Report 2019Risk Management and Evaluation (Continue)

In  2019,  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 IDMs 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 talent 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 2019, UMC’s R&D led to fruitful 
achievement.  Mass  production  optimization  has  been 
ongoing  for 28 nm.  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. 
UMC is offering a 22ULP (ultra Low Power) version that has 
compatible design rules and the same mask count as the 
foundry’s  28nm  technology,  and  also  a 22ULL  (ultra  Low 
Leakage) version. UMC’s 22ULP and 22ULL form a super set 
to support a voltage domain from 1.0V to 0.6V, allowing 
customers  to  enjoy  the  benefits  of  both  technologies 
on  system-on-chip  (SoC)  designs.  The 22nm  platform  is 
supported by foundation IP and is ideal for a wide variety of 
semiconductor applications including consumer ICs for set 
top box, digital TV, surveillance, power or leakage sensitive 
IoT chips (with Bluetooth or WiFi) and wearable products 
that require longer battery life. 
In terms of 14nm process technology, UMC finished 14nm FFC 
platform development and pass process qualification, which 
has  entered  the  customer  chip  mass  production  stage. 
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 embedded magneto-resistive memory, this 
year’s  scheduled  development  milestone  was  completed 
with high test chip yields. UMC will provide the embedded 
MRAM macro IP for potential customers on the Company’s 
22ULL platform next year. 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 RFSOI.
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 
R&D,  expand  production  capacity  and  enhance  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, 2019, if the interest rate increases/decreases 
by 10 basis points, the Company’s net profit for 2019 will 
decrease/increase  by  NTD 45,917  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) 
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, 2019, when the NT dollar strengthens/weakens 
by 10 percent against the US dollar, the Company’s net profit 
for 2019 will decrease/ increase by NTD 1,009,197 thousand. 
On the other hand, when the Chinese Yuan strengthens/
weakens by 10 percent against the US dollar, the Company’s 
net profit for 2019 will increase/decrease by NTD 2,200,266 
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.

145

Review of Financial Position, Operating Results, Risk ManagementRisk Management and Evaluation (Continue)

Inflation
The inflation status in 2019: Due to lower-than-expected 
international oil prices and prices of raw materials in the 
first  half  of 2019,  the  annual  growth  rate  of  the  Taiwan 
Consumer Price Index (CPI) was below that of 2018. However, 
the average consumer price index (CPI) in Taiwan still grew 
by about 2.55%. Overall prices remain stable and there is no 
concern regarding 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

T he  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.

The  Company  has  established 
its  “Loan  Procedure,” 
“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.

Impact and Corresponding Measures of Major  
Domestic and International Policy and Legal 
Changes on UMC's Finances and Business

UMC  complies  with  national  policies  and 
laws.  The 
Company’s  relevant  divisions  keep  abreast  of  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

T he  Company  places  signif icant  impor tance  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  per formance,  reduce  power  consumption, 

146

and  continuously  enhance  its  technical  advantages, 
UMC invested a total of NTD 11.86 billion in research and 
development in 2019. 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  of ferings.  T he  Company  invested 
approximately  USD 574   million  in  capital  expenditure 
during 2019. UMC will continue to invest in existing logic 
and specialty technologies, expanding 8” and 12” capacity 
to penetrate emerging applications and driving internal 
operational efficiencies. The Company believes that these 
efforts will create higher customer adoption of its logic and 
specialty technologies and expand UMC’s market share to 
fuel growth. UMC will strive to enhance its operations and 
preserve 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.

Expected  Benefits,  Possible  Risks  and 
for  Mergers  and 
Response  Measures 
Acquisitions 

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. The transaction was 
completed on October 1, 2019 and it was renamed as UNITED 
SEMICONDUCTOR JAPAN CO., LTD. upon completion of the 
acquisition. The acquired company is 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 

United Microelectronics Corporation  |  Annual Report 2019Risk Management and Evaluation (Continue)

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.
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.

Risk and Response Measures to 
Procurement Concentration

Risk  of  mater ial  shor tage:  for  example,  insuf f icient 
production capacity, accidents in the fab, 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 Response 
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 2019, 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.

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.

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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 August 31, 2017, the Taichung District Prosecutors Office 
indicted  UMC  based  on  the  Trade  Secret  Act  of  R.O.C., 
alleging  that  employees  of  UMC  misappropriated  the 
trade  secrets  of MICRON  TECHNOLOGY,  INC. (“MICRON”).  
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.  UMC 
has appointed counsels to prepare answers against these 
charges.  Currently the civil complaint has been stayed by 
the court and the criminal proceeding is ongoing.
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 
granted preliminary injunction against the aforementioned 
two  defendants,  holding  that  the  two  defendants  must 
immediately  cease  to  manufac ture,  sell,  and  impor t 
products that infringe the patent rights of UMC.  The court 
has approved withdrawal of one of the patent infringement 
actions on our motion while the other two actions are 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 

148

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.    UMC  has  appointed  counsels  to  prepare  answers 
against these charges.  Besides, UMC has suspended the joint 
technology development activities with JINHUA.  Currently 
the civil complaint has been stayed by the court and the 
criminal proceeding is ongoing.  Given these litigations are 
still in the preliminary stages, UMC cannot assess the legal 
proceeding and probable outcome or impact.
On March 14, 2019, a putative class action styled Meyer v. 
United Microelectronics Corporation and several executives, 
was filed under Securities Exchange Act of 1934 and Rule 
10b-5 in the United States District Court for the Southern 
District of New York.  The court appointed a lead plaintiff 
and approved lead plaintiff counsels on May 23, 2019.  On 
September 27, 2019, UMC received the service of plaintiffs’ 
amended complaint and appointed counsels to prepare the 
relevant  procedures.    Currently  the  mediation  process  is 
ongoing.  The Company does not expect material financial 
impact resulting from this claim.

Risks Relevant to Intellectual Property

UMC  values  te chnolo gy  development  and  resp ec ts 
in tel l e c t u al   p ro p e r t y   r i gh t s ,   h e n c e   UM C   d e vel o p s 
independently  to  acquire  intellectual  property  rights 
actively and devotes itself to protecting its and its business 
partners’  intellectual  property  rights.  Although  UMC 
dedicates  itself  to  enforcing  and  protecting  intellectual 
property rights, it cannot completely prevent its intellectual 
property rights which strongly related to UMC’s business, 
such  as  process,  technology,  software,  trade  secrets,  or 
know-how from being infringed or misused by third parties. 
In addition, responsibilities for some of the infringements of 
intellectual property rights are strict liability and require no 
finding of mens rea or intent, so when UMC independently 
develops the process, technology, software, trade secrets or 
know-how required to engage in business, it may infringe 
on third parties’ intellectual property rights unknowingly. 
Therefore, UMC may need to obtain technology or patent 
licenses from third parties on reasonable terms. However, 
if  UMC  cannot  obtain  the  technology  or  licenses  on 
reasonable terms, it may be accused of intellectual property 
infringement by third parties or even receive an injunction 
granted by the court on third parties’ motion for injunctive 
relief,  thereby  jeopardizing  UMC’s  abilities  to  perform 
business  contracts  and  eventually  leading  to  breach  of 
contracts.

United Microelectronics Corporation  |  Annual Report 2019Risk Management and Evaluation (Continue)

UMC’s  ability  to  compete  also  depends  on  its  ability  to 
operate without infringing  on third parties’ intellectual 
property  rights.  As  is  the  case  for  many  companies  in 
the  semiconductor  industry,  UMC  from  time  to  time 
receives letters from third parties asserting and alleging 
infringement of some intellectual property rights of their 
technology. Due to the rising of active Non-Practicing Entity 
(NPE), UMC expects to receive similar letters in the future. 
Irrespective of the validity or the successful assertion of such 
claims, UMC could incur significant costs and management 
resources for defending these claims, which in turn could 
seriously impair UMC’s business and operation.
In order to minimize the liabilities arising from third parties’ 
claims  alleging  UMC’s  manufacturing  of  semiconductor 
devices  or  designs  of  UMC’s  customers’  end  products 
infringe  on  third  parties’  intellectual  property  rights, 
generally, UMC accepts orders only from companies with 
satisfactory reputation and for products without potential 
inf r ingement  r isks.  Fur ther more,  UMC  also  obtains 
indemnification  rights  from  customers  and  equipment 
vendors to hold UMC harmless from any damages resulting 
from any suits or proceedings brought against UMC alleging 
UMC infringes third parties’ intellectual property rights by 
manufacturing products for customers or using equipment 
supplied by vendors.

Risk of Climate Change

The Risk of Climate Change May Negatively Affect UMC’s 
Business Operation

UMC  actively  focuses  on  the  new  business  operational 
concern of climate change. UMC has developed the UMC 
Climate  Change  Risk  Assessment  methodology  based  on 
the Fifth Assessment Report (AR5), which is published by 
the  Intergovernmental  Panel  on  Climate  Change  (IPCC), 
and the government’s downscaling scenario projection for 
identifying potential physical hazards under climate change 
situation, and the ISO 14090: Adaptation to Climate Change 
and the assessment procedure in the UK Climate Impact 
Programme (UKCIP). The assessment concluded that UMC’s 
top 3 climate change risks in the most recent 5 years were 
“electricity price rising and imposition of carbon tax caused 
by energy policy,” “a dramatic rise in green investment” 
and “super typhoon influences on water supply continuity.” 
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, 
and lead to additional investment costs. UMC has actively 
implemented measures in response to mitigate the impact 
caused  by  climate  change.  For  example,  to  reduce  the 
emissions from fluorinated greenhouse gases used in 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 C4F8) 
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. 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 
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 
conducts professional training to teach emergency response 
capabilities  to  employees,  while  having  the  ability  to 
respond on¬site 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 

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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 
for further enhancement of personal safety and reduction 
of risks associated with losses of machine and equipment 
due to earthquake.

Responses to Climate Change Risk

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. Furthermore, UMC climate 
change risk and opportunity assessment was accomplished 
by referring to the fifth assessment report published  by 
the intergovernmental panel on climate change (IPCC AR5) 
and the assessment procedure in the UK Climate Impact 
Programme  (UKCIP)  in  2019,  and  related  results  will  be 
disclosed  to  stakeholders  in  the  CSR  report  during  the 
following year.

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 
with the machine specifications compliance review before 
machines are moved in and machine installation inspection 
after they 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.

150

(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  ISO22301  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 
ISO22301  Business  Continuity  Management 
System 
Certificate  after  only  its  first  evaluation.  In  2019,  Hsinchu 
HQ, Tainan Fab 12A, and Singapore Fab 12i passed the 3-year 
review  cycle  by  BSI  (British  Standard  Institution)  to  extend 
the validity of certification.
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.

Business Continuity Policies

•	 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.

Enterprise Information Security Risk 
Management

Risk Management Organization 

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 

United Microelectronics Corporation  |  Annual Report 2019Risk Management and Evaluation (Continue)

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, which works 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 
rules  in  accordance  to  customer  requirements,  to  reach 
a  consensus  that  infor mation  secur it y  is  ever yone’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 response actions. 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  certifications  include  ISO15408, 
ISO22301 and ISO27001. The Company has also established 
corresponding risk management committees to promote 
standardization processes and reduce the risk to 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 puts particular emphasis on preventing Information 
security  and  cyber  risks,  and  builds  a  complete  multi-
layer  defense  mechanism  including  firewall,  intrusion 
detection, antivirus system, vulnerability scanning, patch 

management procedure and penetration testing, etc. In 2019, 
we  also  leveraged  an international professional security 
company’s resources to help on inspecting the robustness 
of overall security as a trusted third party verifier and a 
basis for further improvement. The summary of the annual 
information security assessment is as follows: “Overall, UMC 
has  implemented  an  information  security  management 
system.  According  to  this  system  and  control  measures, 
conventional malicious programs such as attacks by viruses, 
Trojans, worms and external hackers will not easily damage 
UMC’s information system.”

Information Security Management System

UMC  is  listed  on  NYSE  and  complies  with  the  Sarbanes-
Oxley Act (SOX 404) for internal key financial processes. The 
Company  intends  to  strengthen  information  security  by 
introducing ISO27001 information security management 
system certification, so that information systems can be 
operated  under  standard  management  procedures  to 
reduce security risk and production anomalies that may be 
caused by human error. Continuous improvement of PDCA 
is then carried out through annual recertification.
In 2014, a cross-division security committee was established. 
Based on the need to produce secure products like smart 
card  ICs,  the  Company  decided  to  introduce  ISO15408 
(CC,  Common  Criteria)  certification.  The  certification  is 
specifically designed for secure production procedures not 
only in data receiving, processing and destroying but also 
higher physical access control request for securing entire 
production  line  purposes.  Continuous  improvement  of 
PDCA is then carried out through biennial recertification. 

The Arrangement of the Security Insurance

In view of recent reports about data leakage, virus infection 
and  hacking  events  in  Taiwan  and  the  world,  together 
with  the  ransomware  incident  of  a  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 of being attacked 
even  if  they  already  have  good  security  protection  in 
place. UMC’s strategy is to adopt cyber security insurance 
as  a  new  option  for  partly  transferring  and  mitigating 
the risk. This insurance has been in effect since Jan. 2019 
with  a  retroactive  option  that  can  trace  back  stealth 
threats  existing  in  the  enterprise  before  the  effective 
implementation  date.  Initial  insurance  amount  is  set  to 
be $10 million US and covers 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 
cyber attack.

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The  Impact  of  Occurred  Major  Security  Incidents  and 
Corresponding Response Measures

UMC  had  a  major  WannaCry  ransomware  incident  in 
2016,  causing 42   Servers/PCs/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.  This  is  considered 
a  relatively  serious  virus  incident  within  recent  years. 
In  addition  to  immediately  upgrading  to  a  new  version 
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  production  line  networks  to  grant 
necessary access between equipment tools, which can block 
viruses from spreading and limiting them to a small extent 
of  impact.  After  the  virus  incident  in  August,  SEMICON 
TAIWAN formed a task force that included UMC to co-study 
equipment information security standards and responsibly 
contribute as a 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 introduced, defense systems are faced with 
a zero-day attack limitation. Past defense achievements do 
not necessarily mean or guarantee that anomalies will not 
happen in the future. 
Enterprises  must  keep  pace  with  the  times  to  face  the 
ever-changing and growing  information security threat. 
Information  security  has  a  long  way  to  go  and  requires 
continuous improvement. UMC will uphold the values of 
“Customer-orientation, Integrity, Innovation, Accountability, 
Efficiency”  as  its  corporate  culture  and  will  fulfill  “due 
care/due diligence” management responsibility to provide 
customers with a secure production environment to reduce 
operational risk and reward shareholders with the highest 
possible investment value.

Tension in Political or Economic Relations 
between Major International Countries; The 
Impact on The Investment and Operation 
of  The  Company’s  Foundry  Industry  and 
Corresponding Measures

Internationally,  due  to  political  or  economic  tensions 
between major countries, national power has been exerted 

152

to penalize specific entities or even trigger a trade war. The 
main  methods  include  raising  tariffs,  embargoes,  policy 
interventions, government subsidies, etc., which may have 
an impact on the company’s investment and operations. It 
also affects revenue, delivery, and goodwill. For example, a 
sharp increase in tariffs in importing countries may drive 
up end-market prices, thereby reducing consumer purchase 
demand and further reducing UMC customer orders; The 
United  States  Export  Control  Act  regulates  that  if  those 
whose content originating from the United States exceeds a 
certain ratio, their products may not be exported to specific 
countries. This may affect UMC’s direct or indirect supply to 
specific customers; restrictions on the export of high-tech 
materials may affect UMC’s production, resulting in failure 
to deliver on time and damage to goodwill.
UMC’s countermeasures include:
1)  Increasing the diversification of customers’ region and 
product  application.  Besides  cautiously  facing  existing 
business in North America and the Asia Pacific, UMC also 
aggressively expands its business from other regions such 
as Europe and Japan. In response to business uncertainty 
for  server,  automotive  and  industrial  applications  that 
originally enjoyed high growth, UMC also tries to expand its 
opportunities in IoT, AI, etc. 
2) Monitoring  and  evaluating  the  impact  of  external 
changes (including global regulations, politics, economic 
conditions, etc.) on the Company's business (raw materials, 
customer demand, etc.) and taking necessary risk response 
plans.  In  practice,  a  raw  material  supply  chain  tracking 
mechanism  is  established,  and  the  legal  compliance 
response system is strengthened. Through a more accurate 
grasp of the country’s component ratio of raw materials, 
UMC  can  analyze  the  possible  impacts  and  respond  in  a 
timely manner.

The Impact of Talent Retention and Training & 
Development on the Company’s Operations 
and Corresponding Practices.

At  UMC,  employees  are  considered  the  most  important 
asset and the foundation of sustainable operations. Facing 
external labor market competition and the attractiveness of 
salary conditions have caused staff turnover, so the failure 
to effectively maintain and extend experience has potential 
risks to the company’s operations.
Regarding  talent  retention  and  training  &  development 
prac t ices,  UMC  prov ides  a  comprehensive  lear ning 
environment  for  employees  to  improve  the  skills  and 
expertise  of  their  colleagues.  The  Company  focuses  on 
“talent attraction, cultivation, and retention” as the key 

United Microelectronics Corporation  |  Annual Report 2019Risk Management and Evaluation (Continue)

goals  of  training  &  development,  while  continuously 
improv ing  the  quality  and  ef fec tiveness  of  training, 
cultivating talent to meet the needs of the organization, 
and ensuring the continuation of experience. Meanwhile, 
we also pay attention to external market salary information 
and provide competitive salary and welfare conditions to 
achieve the Company’s sustainable operation goals.

Any  Outbreak  of  Contagious  Diseases, 
Such as the Recent Coronavirus Pandemic, 
may  Materially  and  Adversely  Affect  our 
Staff Attendance  and Operation, and it’s 
Countermeasures

Any outbreak of infectious diseases, such as coronavirus, 
Ebola virus, bird flu, swine flu, or severe acute respiratory 
syndrome (SARS), can affect staff attendance and even affect 
company operations. For example, the recent outbreak of 
the coronavirus pandemic is spreading globally and has an 
adverse effect on the world’s economic conditions, which 
has impacted both the demand within the semiconductor 
market and the stability of the supply chain. If the epidemic 
cannot be effectively controlled in the short term, the impact 
of emergency control measures taken by governments to 
curb the spread of the epidemic will be expanded, which 
may expose us to relevant risks, including: reduced sales 
activities and customer orders, reduced plant operations and 
labor, international travel and communication difficulties, 
and  limited  transnational  cooperation  in  research  and 
development.  In  addition,  if  any  employee  is  suspected 

Other Necessary Supplements

None.

or diagnosed with an infectious disease, we may need to 
quarantine these employees or close the relevant workplace 
to temporarily suspend some or all production operations. 
UMC  established  its  coronavirus  epidemic  control  and 
response  center  in  January 2020  to  coordinate  relevant 
information and resources usage, such as:
1). Daily review for conditions of production impact, supply 
chain  management,  epidemic  prevention  strategies  and 
action preparation, etc.
2).  Defined  clear  stages  of  infectious  disease  disaster 
management and prepared response measures in advance 
according  to  the  situation  of  each  stage,  and  launched 
corresponding  activities  in  accordance  with  epidemic 
development.  For  example:  reduce  human  infection  and 
production impact (for detailed related measures, please 
refer  to  “4-3.  Health  and  Safety  Workplace”  in  the  CSR 
report); reduce material shortages by increasing inventory, 
find  and  expedite  the  verification  of  second  suppliers; 
reduce the operation impact of specific fabs by cross-plant 
products and order adjustment and transfer.
Up  until  Febr uar y 2020 ,  the  epidemic  has  not  had  a 
significant  impact  on  the  Company’s  operations.  The 
Company will maintain a positive and cautious attitude and 
continue to pay close attention and respond to it.

Other Significant Risks
None.

Note: The analysis and valuation of Risk Items shown above include 

the data during 2019 and as of the Annual Report Printing Date.

153

Review of Financial Position, Operating Results, Risk Management 
 
 
Social Responsibility

155  Description of Corporate Social Responsibility
157  About Social Charity 
163  Environmental Protection, Safety and Health  

Management Instructions

154

United Microelectronics Corporation  |  Annual Report 2019 
Description of Corporate Social Responsibility

To  fulfill  corporate  social  responsibility  and  facilitate 
economic,  environmental  and  social  progress  for  the 
purpose  of  achieving  sustainable  development,  UMC 
has  formulated  and  complies  with  its  Corporate  Social 
Responsibility Practice Principles.
Cu r r e n t l y,   t h r o u g h   t h e   C o r p o r a t e   Su s t a i n a b i l i t y 
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.
In 2019, UMC was awarded with multiple honors related 
to corporate social responsibility, including being listed as 
a FTSE4Good Emerging Index component and FTSE4Good 
TIP  Taiwan  ESG  Index  component,  and  ear ning  the 
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  12  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 the Fluorinated Greenhouse Gases 
Reduction Work Group as early as 1999 in response to global 
warming, and it achieved its 2000 voluntary reduction goal 
outlined  by  Taiwan  Semiconductor  Industry  Association 
ahead of schedule. On Earth Day (April 22) in 2000, 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 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  this  environmental  protection  effort.  By 
2019, 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 certification 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.  In  2017,  UMC  took  the 
initiative to launch the Triple R Major League project. UMC 
expects to cooperate with suppliers to promote measures 
for energy and resource reuse, recycling and reducing to 
achieve green products with lower environmental impact. 
On  the  other  hand,  UMC  has  also  established  a  supplier 
management strategy to strengthen the economic, social 
and environmental performance by implementing supplier 
sustainability  assessments,  on-site  audits,  and  coaching 
improvements and tracking to create a positive influence 
and  enhance  sustainable  competitiveness  of  the  overall 
supply chain.

155

Social ResponsibilityDescription of Corporate Social Responsibility (Continue)

Furthermore, UMC referenced the nature of its businesses 
as well as the 5 key principles of AA1000 SES (Stakeholder 
Engagement Standard) to identify the major stakeholders 
and formulated a management system for the identification 
of  and  communication  with  various  stakeholders.  In 
accordance with the materiality principle, UMC conducts 
impact assessments of environmental, social and corporate 
governance issues related to the company’s operations every 
year, and formulates corresponding improvement measures 
and  plans.  At  the  same  time,  the  results  were  disclosed 
through  the  corporate  social  responsibility  reports  and 
Company websites.
UMC’s  Corporate  Social  Responsibility  Report  issued  in 
2019 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 12th 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 lity 
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 
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 response 
measures that stakeholders are concerned about.

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 mm i t t e e ,   H uman   R i gh t s   an d   S o c i a l 
Participation  Committee,  Environment  Committee,  and 
Green Manufacturing Committee. Their functions are as 
described below:
Corporate Governance Committee

Helps strengthen the function of the Board and shareholder 
equity,  integrates  related  regulations  and  policies  of 
relevant departments, and helps complete and implement 
th e   C o mp any ’s   i n t e r na l   c o n t r o l   s y s t e m   t o   e ns ur e 
information transparency and disclosure, and compliance 
with regulations. 
Customer Relationship Management Committee

Refines  customer  service  and  quality  control,  improves 
service  quality  and  customer  satisfaction,  and  protects 
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

Promotes  green  product  research  and  development  and 
innovations, and leads 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. Integrates the UMC Cultural and Educational 
Foundation, and with focus on education, arts, sports, public 
service and environmental protection, strives to promote 
technological research and development cooperation, long-
term educational assistance, arts and sports activities and 
other social welfare events.
Environment Committee

Promotes company-wide environmental, safety and health, 
energy, water and greenhouse gas emission management. 
Establishes  sustainable  supply  chains  and  long-term 
par tnerships  w ith  suppliers  to  enhance  sustainable 
competitiveness.
Green Manufacturing Committee

P rom o te s  company- w id e  gre e n  p ro ce ss e s ,  su ch  a s 
hazardous materials management and increases in resource 
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

156

United Microelectronics Corporation  |  Annual Report 2019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 2019:

Key Items

Description

Outcome

Letter Writing 
Volunteers

Through letters,  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 2019 are as follow:

Education 
for the 
Disadvantaged

Life Education

UMC Drum 
Club

Parent 
Education

Story-telling 
Volunteers

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 inspiration 
through love. " Moreover, 
through executive 
participation, a culture of  
volunteering is promoted. 

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.

Employees volunteering 
for story-telling led reading 
activities in Baoshi Elementary 
School in Hsinchu County to 
motivate children to read on 
their own.

In 2019, 110 children 
received a  total 
of 750 hours of 
tutoring.

Over the last 10 
years, the Club 
has given 68 
performances to 
a total audience 
of more than 
20,000 people.

Over the last 
7 years, the 
group has given 
40 inspiring 
performances to 
a total audience 
of more than 
25,000 people.

Continued to 
sponsor the 
program in 2019.

In 2019, the 
volunteers 
provided 24 
sessions of 
activities to a 
total of about 
400 children.

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 the Nantou Karate 
Association. 
Sponsored art and cultural events.

Life education promotion and other 
sponsorships.
Subtotal

UMC LOHAS 
Education 
Foundation

Sponsored the Hsinchu City 
Government's 2019  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 groups.

Sponsored events organized by 
the Hsinchu City Department of 
Education in 2019.

Sponsored Science Park Cup sports 
competitions.

Sponsored the sites for  Taiwan 
Lear ning and Development 
Association and Taiwan Toy Library 
Association.

Subtotal

Total

In NTD

Amount

4,305,779

1,321,883

2,000,000

1,288,395

1,704,847

10,620,904

135,200

100,000

100,000

60,000

120,000

515,200

11,136,104

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 2019, 8 clubs participated 
in charity services.

157

Social Responsibility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  provide  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.

2019 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 2019, 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"

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 2019:

Clubs

Services

Candlelight 
Club

Charity bazaars (Holiday Bazaar,  Rebirth 
Bazaar and Concert, St. Joseph Social Welfare 
Foundation, Eden Social Welfare Foundation)

Ukelele Club

Fundraisers (World Vision, St. Joseph Social 
Welfare Foundation, Joy Welfare Foundation)

Organization events (Joy Kindergarten) 

Teaching (Nan-he Elementary School, Fu-sing 
Elementary School and Xin-xing Elementary 
School in Hsinchu County)

Free performances (Hsinchu Where! Youth 
Services Thanksgiving Dinner,  Ukulele Parent-
Child Competition, Ukulele Carnival in Taiwan, 
Hsinchu Museum of Imagery, Rebirth Concert 
at 16th Children's Park, Hsinchu Science Park 
39th Anniversary Garden Reception, Wavetek, 
Candlelight Club Love Bazaar)

UMC Drum 
Club

Taichi Club

Charity performances (Catholic Social Service 
Center fair, St. Joseph Social Welfare Foundation 
Garden Party, Hsinchu Science Park 39th 
Anniversary Garden Reception)

Huakuang Social Welfare Foundation- Huaguang 
Outreach, Chang-an Nursing home Charitable 
donations

Music Fellow 
Club

Free performances (L’arc Hotel Second-hand 
Market Activities, STSP Bureau Love-month 
Activity, Fab 12A Valentine’s Day and Moon 
Festival Activities)

Hsinchu 
Energy 
Conservation 
Service Team

Kansai Huakuang Welfare Foundation, Hsinchu 
City Intellectual Disability Welfare Association, 
Hsinchu County Special Education School, 
Goodshepherd Foundation

Tainan Energy 
Conservation 
Service Team

Nan Jeon University of Science and Technology, 
Deguang Catholic Senior High School, Tainan 
Municipal An-Nan Hospital, St. Teresa 
Opportunity Center

I-Ching Club

St. Joseph Social Welfare Foundation Garden Party

158

United Microelectronics Corporation  |  Annual Report 2019About Social Charity (Continue)

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 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 of 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, and 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  2019,  110  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.

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 2019:

Key Items

Outcome

Sponsored the Whatever 
Makes Sense for Voice of IC 
Teacher Hung Lan program

A total of 52  episodes were 
broadcasted in 2019.

Candlelight Club-
Community outreach and 
fundraising bazaar

A total of 73 bazaars, totaling 
4,370 participants. 342 volunteers 
participated, totaling 1,148 hours.

Ukelele Club-Volunteer 
performance and teaching

A total of 11 sessions, totaling 
3,142 participants. 113 volunteers 
participated, totaling 528 hours.

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Social ResponsibilityAbout Social Charity (Continue)

IV. Eco Green Energy Programs  for Promoting 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 iou s  env ironmental  programs,  eco  concep ts  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 Talent

With the mission of cultivating Taiwan’s high-tech talent, 
UMC  not  only  invests  in  developing  and  improving  the 
Company’s  existing  talent,  but  also  in  cultivating  seed 
talent for Taiwan’s semiconductor technology through early 
contact. The semiconductor process practicum courses in 
National 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, UMC collaborates with National Cheng Kung 
University, National Tsing Hua University, National Chiao 
Tung  University  and  National  Sun  Yat-sen  University  on 
advanced technology R&D and projects. The research scope 
includes artificial intelligence algorithms, micro-sensors and 
actuators, machine learning algorithms, deep learning and 
wafer defect detection, etc., to achieve the most effective 
industry-university cooperation for integrating theory and 
practice.

Summary of key implementation outcomes in 2019:

Key Items

Outcome

Offered semiconductor processing 
practicum courses in 2019. About 193 
students enrolled.

Industry-
University

National Central 
University,  
Chung Yuan 
Christian 
University, 
industry-
university 
courses on 
semiconductors

Nano 
Generation 
course at 
National Cheng 
Kung University

Offered an introductory course 
on  Semiconductor Processing in 
the Nano Generation at National 
Cheng Kung University in 2019. 
About 269 students enrolled.

Campus 
Cultivation

Domestic 
and Overseas 
Summer 
Internship

Provide a specific number of 
internship opportunities each 
summer vacation. In 2019, a total 
of 21 interns were recruited. 

Equipment 
Intern

Collaborated with National 
Taiwan University of Science 
and Technology, 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  2019, a 
total of 29 interns were accepted. 

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United Microelectronics Corporation  |  Annual Report 2019About Social Charity (Continue)

Key Items

Outcome

Key Items

Outcome

Enterprise 
Visitations

Campus 
Ambassador 
for disabled 
students

Campus 
relationship 
development 
(Including 
technical career 
lectures)

Provide enterprise visitation 
opportunity for schools. In 2019, 
the Company received a  total 
of 822 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, National Quemoy 
University and National Formosa 
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 128 
students with physical disabilities 
were provided with work study 
opportunities, and in 2019, 22 
students were still employed.

Helped arranged  a series of  
brand image cultivation activities, 
including book discussion, career 
sharing, internship cooperation, and 
exhibits for semiconductor display. 
In 2019, 21 book discussion sessions 
were held, with a total of more 
than 2,151 participants.

National Cheng 
Kung University 
Career Advisor 
Program

PTP Prospective 
Talent Program

Advanced 
Intelligent Elite 
Development 
(AIED)

In its collaboration with key 
schools in recent years, UMC 
offers career seminars and 
career coaching programs to 
help students understand the 
future pulse from the perspective 
of industrial 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 8 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. At 
the same time, colleagues from 
National Taiwan University, 
National Tsing Hua University and 
National Chiao Tung University 
have their colleagues serve as 
career counselors to provide 
professional counseling to their 
students.

T he early contac t and   
agreement with prospective  
talent on campus enhances 
connection and interaction with 
targeted talent. The broadening  
UMC PTP also expands the image 
and influence of UMC. Since UMC 
began recruiting outstanding 
talent in 2013, 4,435 students 
have been recruited and 856 
prospects  are still in school.

To acquire higher quality employees, 
campus relationships and the 
connection and interaction with 
outstanding equipment talents 
are systematically  established. 
Recruitment for outstanding talent 
began in 2018, and 2,409 students 
have attended in AIED campus 
briefings, recruiting a total of 749 
members.

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Social ResponsibilityAbout Social Charity (Continue)

UMC Social Participation

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 National 
Tsing Hua University, UMC Science and Culture Foundation, 
UMC Operation Management Thesis Award, National Cheng 
Kung University academic funding for Nano-IC Engineering, 
loan  transfer  to  feedback  fund  for  management  talent, 
Taiwan Semiconductor Industry Association Environmental 
Protection Fund, Global Views Educational Foundation Green 
Award prizes, VLSI Design/CAD Symposium, GLO Leadership 
Training Summit and ASUS Foundation, 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 2019:

UMC

Social Participation

Donated to UMC Science and Culture 
Foundation
Donated to the 9th UMC Operation 
Management Thesis Award

Donated to the National Cheng Kung 
University academic funding for  Nano-
IC Engineering

Loan transfer to feedback fund  for 
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 National Tsing Hua 
University

Donated to GLO Leadership Training 
Summit

Donated to ASUS Foundation

Donated to Taipei Awakening 
Association

Total

In NTD

Amount

10,000,000

2,801,459 

3,000,000 

530,000 

5 12 ,0 2 1 

610,000 

100,000

35,000,000

62,500

37,800

500,000

53,153,780

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United Microelectronics Corporation  |  Annual Report 2019Environmental Protection, Safety and Health Management 
Instructions

In  te r ms  o f  e nv ironm e n t al  p ro te c t io n,   s af e t y  an d 
health, UMC has set the objectives of zero pollution and 
zero  incidents  to  become  an  enterprise  of  sustainable 
development;  in  addition  to  being  in  compliance  with 
and exceeding 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 ISO 45001 standards. It is intended to integrate 
daily management with total quality management (TQM) 
activities  such  that  the  ESH  management  plan  can  be 
integrated with actual fab operation in order to achieve 
the  ef fec tiveness  of  implementation.  As  for  var ious 

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 company performance of environmental protection 
and safety and health management.

Achievement status of UMC’s Important ESH Objectives/Targets in 2019:

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

Zero occupational safety incident  throughout 
the year

2. Fewer than 11 minor (or above) accidents

A total of 11 incidents throughout the year

The milestone of 2019 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

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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 
response 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  per formance  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  
  to global warming potential (GWP) via source 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 greenhouse gas 
emissions 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.  At  this  stage,  UMC  has  also 
applied for GHG Offset Project in 2019, according to Taiwan’s 
voluntary GHG reduction incentive program to apply for 
carbon credits. UMC estimates it can build 10 years of carbon 
assets totaling more than 1.5 million tons.

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 fabs are superior to 
the standard set by Science Park Bureau. The water saving 
measures  for  general  water  consumption  include  the 
adoption  of water-efficient taps,  rainwater interception 
for  landscape  watering,  and  water  conservation  of  air 
conditioners  and  kitchens.  In  addition  to  internal  water 
res ource  a ssessment  and  mana gemen t  and  a c t i ve 
promotion of water conservation, the Company also serves 
as a representative in industrial unions & associations. The 
Company cooperates with the government and industrial 
peers  in  water  resources  communication  and  exchange 
counseling.

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 
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 
increasingly  serious  environmental  problems.  Finally,  in 

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United Microelectronics Corporation  |  Annual Report 2019 
 
 
Environmental Protection, Safety and Health Management Instructions (Continue)

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  introduces  high 
per formance  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. 

Environment-related Data Disclosure
UMC  is  committed  to  the  spirit  of  initiative,  openness, 
transparenc y  and  qualit y,  and  publicly  discloses  its 
management  of  environment-related  information.  At 
present,  UMC  has  set 2025   management  targets  for 
important  indicators  such  as  greenhouse  gas  emissions, 
elec tr icit y  consumption,  water  consumption,  waste 
generation and volatile organic compound emissions. At the 
same time, UMC also disclosed the data of the last 5 years 
in the corporate social responsibility report and through 
third-party verification to confirm the latest information 
and verify the reduction outcome every year. The annual 
infor mation  for 2019   w ill  be  ver if ied  by  third  par t y 
inspection and publicly disclosed before June 2020.
On  the  other  hand,  UMC  was  also  invited  to  participate 
in  the  international  CDP  organization’s  climate  change 
and  water  disclosure  project,  and  further  disclosed  the 
identification results of risks and opportunities and related 
management information. In 2019, UMC’s climate change 
disclosure was awarded the Level 4 Leadership (A-) score; 
and water disclosure was awarded the highest rating for 
Taiwan’s enterprises with a (B) rating. It shows that UMC has 
been recognized by international investment institutions 
for its sustainable information disclosure.

Other Environmental Management Plans

Over  the  years,  UMC  has  continued  with  its  ef for t  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 2000,  it  was 
the first in the industry to complete the water footprint 
verification of 8-inch and 12-inch fabs. With the important 
op erat ional  belief  of  sy mbiosis  w ith  a  su stainable 
env ironment,  UMC  has  prov ided  its  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 
certification, and helped customers completely construct 
the environmental 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. 

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Social ResponsibilityEnvironmental Protection, Safety and Health Management Instructions (Continue)

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, 
implement  safet y  and  health  protec t ion  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.

Safety and Health Management

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 

166

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. 
•	 Management of Hazardous Chemicals

UMC has a hazardous chemical management strategy. All 
chemicals entering UMC must comply with the strategy and 
strict safety review mechanisms before they can be used in 
UMC. 
UMC’s  sound  chemical  management  process  meets 
regulatory  requirements.  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 to 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 leaks 
with timely warning and automatic broadcasts 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 accidents 
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 

United Microelectronics Corporation  |  Annual Report 2019Environmental Protection, Safety and Health Management Instructions (Continue)

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  the  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 
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 

pro te c t ion  o f  sp e c ial  op erat ion,  and  cons t r uc t ion 
supervision  personnel  in  the  annual  training  plan.  In 
addition to the training courses in the plan, educational 
training should be arranged from time to time with respect 
to any specific incident or major deficiency if necessary. In 
2019, the Awareness of Hazardous Chemicals course was 
held. To date, 2,099 classes have been offered, attracting 
a total of 82,225 participants. It contained e-learning 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 establishes management procedures based on the type 
of the hazards and provides adequate personal protective 
equipment (PPE) for workers to use. The condition of PPE 
is regularly checked, and the supervisors and occupational 
safety personnel also occasionally inspect the use of PPE.

•	 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 

167

Social Responsibility 
 
Environmental Protection, Safety and Health Management Instructions (Continue)

of  fire  extinguishers,  and  all  employees  are  expected  to 
be  equipped  with  such  skills.  In  addition,  an  emergency 
response team (ERT) is formed in every 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 objectives 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 
place,  in  addition  to  regular  summaries  and  repor ts, 
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 objectives and targets 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 management, in addition to written records, 
UMC  has  established  multiple  computer  systems  as  an 
aid for safety and health management, such as automatic 
inspection  system,  ISO  14001  &  ISO 45001   management 
systems,  accident  report  and  investigation  system,  and 
walkthrough  report  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 2019 are as shown below:  

•	 “The Best Participation of Green Procurement for Enterprises”  
  by the Environmental Protection Administration of Executive  
  Yuan, R.O.C.
•	 “The  1st  Green  Chemical  Application  and  Innovation  
  Award” by the Environmental Protection Administration  of  
  Executive Yuan, R.O.C.
•	 “National	Enterprise	Environmental	Protection	Award”	by	 
  the Environmental Protection Administration of Executive  
  Yuan, R.O.C. (Fab 12A)
•	 “Energy	 Saving	 Leadership	 Award”	 by	 the	 Bureau	 of	 
  Energy, Ministry of Economic Affairs, R.O.C. (Fab 12A)
•	 “Science	 Park	 Water	 Saving	 Outstanding	 Achievement	 
  Prize” by the Hsinchu Science Park Bureau, Ministry of  
  Science and Technology, R.O.C. (Fab 8F)
•	 “Award	of	Enterprise	with	Outstanding	Waste	Reduction	 
  and Resources Circulation” by the Hsinchu Science Park  
  Bureau, Ministry of Science and Technology, R.O.C. (Fab 8S)
•	 “Business	with	Outstanding	Environmental	Protection	 
  Performance” by the Southern Taiwan Science Park Bureau,  
  Ministry of Science and Technology, R.O.C. ( Fab 12A II)
•	 “Outstanding	Occupational	Safety	and	Health	Unit”	by	the	 
  Occupational Safety and Health Administration, Ministry  
  of Labor (Fab 8A)
•	 “Outstanding	Occupational	Safety	and	Health	Unit”	by	 
  the Southern Taiwan Science Park Bureau (Fab 12A II)
•	 “Outstanding	Occupational	Safety	and	Health	Unit”	by 
  the Hsinchu Science Park Bureau, Ministry of Science and  
  Technology, R.O.C. (Fab 8F)

168

United Microelectronics Corporation  |  Annual Report 2019Special Disclosures

Issuance of Private Placement Securities 

170  Summary of Affiliated Enterprises 
182 
182  Acquisition or Disposal of UMC Shares by Subsidiaries
182  Other Necessary Supplements 
182  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.

169

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%

80.49%

Wavetek 
Microelectronics 
Investment (Samoa) 
Limited

100.00%

Wavetek 
Microelectronics  
Corporation(USA)

100.00%

Best Elite 
International Limited

100.00%

Infoshine Technology 
Limited

100.00%

Oakwood Associates 
Limited

100.00%

HeJian Technology 
(Suzhou) Co., Ltd.

99.9985%

UnitedDS 
Semiconductor 
(Shandong) Co., Ltd.

100.00%

United 
Semiconductor 
(Xiamen) Co., Ltd.

14.49%

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%

Omni Global Limited

100.00%

Sino Paragon Limited

100.00%

United 
Semiconductor 
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  79.83%  of  Wavetek  Microelectronics  Corporation  (Wavetek);  Fortune  Venture  Capital  Corp.  holds  0.66%  of  Wavetek,  and  

the comprehensive shareholding ratio is 80.49%.

170

United Microelectronics Corporation  |  Annual Report 2019 
 
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

Maystar Chambers, P.O. Box 3269,  
Apia, Samoa

 In NTD

Capital

Major Business /
Production Items

508,231,063

IC Sales

119,820,688

Marketing support 
activities

2,215,747,586

Investment holding

8,505,000

IC Sales

14,575,000

Marketing support 
activities

3,979,563,000

Venture capital

4,017,344,480

Consulting and 
planning for venture 
capital

29,988,444,000

Investment holding

UMC Investment(Samoa) 
Limited

2011.03.30

Maystar Chambers, P.O. Box 3269,  
Apia, Samoa

43,519,120

Investment holding

NexPower Technology Corp.

2005.11.25

No.2, Houke S. Rd., Houli Dist.,  
Taichung, Taiwan 42152, R.O.C. 

UMC Capital(USA)

2001.02.13

ECP Vita Pte. Ltd.

2012.05.10

488 De Guigne Drive, Sunnyvale,  
CA 94085, USA

138 Market Street, #07-02  
CapitaGreen, Singapore 048946

711,986,480

Sales and 
manufacturing of 
solar power batteries

6,183,800

Investment holding

278,271,000

Insurance

Soaring Capital Corp.

2008.03.25

Level 2, Lotemau Centre,  
Vaea Street, Apia, Samoa

27,351,000

Investment holding

Unitruth Advisor
(Shanghai) Co., Ltd.

2008.10.16

No.1468,Nanjing Road West,Suite 2908 
Shanghai,China

24,735,200

Investment holding 
and advisory

Tera Energy Development 
Co., Ltd.

2011.07.19

1F., No.1, Jinshan 8th St., Hsinchu,  
Taiwan 30080, R.O.C.

Everrich Energy Investment 
(HK) Limited

2009.12.16

Room 2702-03, CC Wu Building,302-8 
Hennessy Road, Wanchai, Hong Kong

186,550,910

Energy technical 
services

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

23,189,250

Solar engineering 
integrated design 
services

171

Special DisclosuresSummary of Affiliated Enterprises (Continue)

Name of Corporation

Date of
Establishmen

Address

Wavetek Microelectronics
Corporation

2010.10.18

3F., No.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

Best Elite International 
Limited

2001.07.12

P.O. Box 957, Offshore Incorporations 
Centre, Road Town, Tortola, B.V.I.

 In NTD

Capital

Major Business /
Production Items

1,813,771,110

Sales and 
manufacturing of 
integrated circuits

46,275,000

Investment holding

1,855,140

Sales and marketing 
service

7,388,888,122

Investment holding

Infoshine Technology Limited 2002.02.12

P.O. Box 957, Offshore Incorporations 
Centre, Road Town, Tortola, B.V.I.

10,945,326,000

Investment holding

Oakwood Associates Limited 2002.02.12

P.O. Box 957, Offshore Incorporations 
Centre, Road Town, Tortola, B.V.I.

10,945,326,000

Investment holding

HeJian Technology
(Suzhou) Co., Ltd.

2001.11.23

UnitedDS Semiconductor 
(Shandong) Co., Ltd.

2014.03.25

Omni Global Limited

2013.07.02

No. 333, Xinghua Street, Suzhou 
Industrial Park, Suzhou,Jiangsu 
Province 215025, China

17th Floor, Building3, Aosheng 
Plaza,1166 Xinluo Ave., Jinan High-Tech 
Development Zone, Shandong Province, 
China

Maystar Chambers, P.O. Box 3269,  
Apia, Samoa

United Microtechnology 
Corporation(New York)

2013.07.08

488 Deguigne Drive, Sunnyvale,  
CA 94085, USA

488 Deguigne Drive, Sunnyvale,  
CA 94085, USA

United Microtechnology 
Corporation(California)

United Semiconductor
(Xiamen) Co., Ltd.

2014.12.10

2014.10.01

United Microchip Corporation 2015.02.04

 14,342,758,387

134,253,000

Sales and 
manufacturing of 
integrated circuits

Design support of 
integrated circuits

130,160,000

Investment holding

29,373,050

 30,919,000

Research & 
development

Research & 
development

No. 899, Wan Jia Chun Road, Xiang An, 
Xiamen, Fujian Province, China

56,823,897,929

Sales and 
manufacturing of 
integrated circuits

Suite 102, Cannon Place, P.O. Box 712 
North Sound Rd., George Town, Grand 
Cayman, KY1-9006

29,874,878,250

Investment holding

UMC Technology Japan Co., 
Ltd.

2016.04.01

15F Akihabara Centerplace Bldg.,  
1 Kanda Aioi-cho, Chiyoda-ku,  
Tokyo 101-0029, Japan

Sino Paragon Limited

2016.06.06

Maystar Chambers, P.O. Box 3269,  
Apia, Samoa

4,961,250

Semiconductor 
manufacturing 
technology 
development and 
consulting services

83,204,400

Investment holding

United Semiconductor  
Japan Co., Ltd.

2014.09.18

2000, Mizono, Tado-cho, Kuwana-shi, 
Mie, Japan

2,835,000,000

Sales and 
manufacturing of 
integrated circuits

Note: The data is dated December 31, 2019.

172

United Microelectronics Corporation  |  Annual Report 2019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.

173

Special DisclosuresSummary of Affiliated Enterprises (Continue)

Directors, Supervisors and Presidents of Affiliated Enterprises

Name of Corporation

Title

Name or Representative

Shareholding

Shares

-

-

-

-

-

-

-

-

-

-

-

-

397,956,300

-

397,956,300

-

397,956,300

-

397,956,300

-

397,956,300

-

397,956,300

-

%

-

-

-

-

-

-

-

-

-

-

-

-

100.00

-

100.00

-

100.00

-

100.00

-

100.00

-

100.00

-

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

Yen Huang

Director

Jinhong Lin

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.

174

United Microelectronics Corporation  |  Annual Report 2019Summary of Affiliated Enterprises (Continue)

Name of Corporation

Title

Name or Representative

Shareholding

Fortune Venture Capital Corp.

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 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: Jinhong Lin

Director

United Microelectronics 
Corporation

Representative: Eric Zhou

Director

United Microelectronics 
Corporation

Representative: Watson Tsai

Supervisor

Fortune Venture Capital Corp.

23,826,545

Representative: Tachih Lung

-

Shares

401,734,448

-

401,734,448

-

401,734,448

-

401,734,448

-

401,734,448

-

401,734,448

-

-

%

100.00

-

100.00

-

100.00

-

100.00

-

100.00

-

100.00

-

-

1,520,000

100.00

33,998,269

-

33,998,269

-

33,998,269

-

47.75

-

47.75

-

47.75

-

33.46

-

175

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

Everrich (Shandong)
Energy Co., Ltd.

Director

Jinhong Lin

Executive 
Director

Steven Sheng

Supervisor

Su Ying Shih

-

-

-

-

-

-

176

United Microelectronics Corporation  |  Annual Report 2019Summary of Affiliated Enterprises (Continue)

Name of Corporation

Title

Name or Representative

Shareholding

Wavetek Microelectronics 
Corporation

Chairman

United Microelectronics 
Corporation

Representative: Wen-Yang 
Chen

Shares

144,948,118

-

%

79.83

-

Director

United Microelectronics 
Corporation

144,948,118

79.83

Representative:SC Chien

-

-

Director

United Microelectronics 
Corporation

144,948,118

79.83

Representative:Jason Wang

Supervisor

Chih Chiang Peng

Wavetek Microelectronics 
Investment
(Samoa) Limited

Wavetek Microelectronics 
Corporation (USA)

Director

Wen-Yang Chen

Director

Chian Gauh Shih

Best Elite International Limited

Director

Chau-Shen Yu

Director

Jeremy Wang

Director

Eric Chen

Director

Jinhong Lin

Infoshine Technology Limited

Director

Oakwood Associates Limited

Director

Best Elite International 
Limited

Infoshine Technology  
Limited

-

15,001

-

-

-

-

-

-

-

-

-

0.00

-

-

-

-

-

-

-

-

177

Special Disclosures 
Summary of Affiliated Enterprises (Continue)

Name of Corporation

Title

Name or Representative

Shareholding

Shares

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

%

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

HeJian Technology (Suzhou)  
Co., Ltd.

Chairman

Stan Hung

Director

Chau-Shen Yu

Director 

Ming-Cheng Kao

Director

Chitung Liu

Director

Wan Ling Cheng

Director

Jinhong Lin

Independent 
Director

Independent 
Director

Independent 
Director

Qingheng An

Feng-I Lin

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

United Microtechnology 
Corporation (New York)

Director

Jason Wang

Director

Chitung Liu

United Microtechnology 
Corporation (California)

Director

Jason Wang

Director

Chitung Liu

178

United Microelectronics Corporation  |  Annual Report 2019Summary of Affiliated Enterprises (Continue)

Name of Corporation

Title

Name or Representative

Shareholding

United Semiconductor (Xiamen) 
Co., Ltd.

Chairman

Chau-Shen Yu

Vice Chairman

Chih-Ching Hsu

Director

Jinhong Lin

Director

Wayne Tan

Director

T C Chen

Director

I Cheng Lu

Director

Yi Yan Hong

Director

Guo Dong Di

Director

Tao Yang

Supervisor

Rong Fang Li

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

United Semiconductor  
Japan Co., Ltd.

Director

Chitung Liu

Chairman

S S Hong

Director

Ming Hsu

Director

Chitung Liu

Director

James Wang

Director

Michiari Kawano

Director

Koichi Onomura

Director

Tatsuya Deguchi

Supervisor

Yen Huang

Note: The data is dated December 31, 2019.

Shares

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

%

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

179

Special DisclosuresSummary of Affiliated Enterprises (Continue)

Summarized Operating Results of UMC Subsidiaries 

 In Thousand NTD

Company

Capital

Assets

Liabilities Net Worth  Operating 
Revenues

Operating 
Income 
(Loss)

Net Income 
(Loss)

Earnings (Loss) 
Per Share 
(NTD)

UMC Group (USA)

508,231 

8,663,813 

6,834,067 

1,829,746

49,228,13 4 

66,001 

77, 1 3 5 

4.69 

United Microelectronics  
(Europe) B.V.

1 1 9,821 

166,334  

27,489 

138,845 

48,625 

3,648 

2,803 

311.45 

UMC Capital Corp.

2,2 15 ,748 

3,882,222 

879 

3,881,343 

507,496 

342,966 

342,966 

4.79 

UMC Group Japan

8,505 

883,795

774,236 

109,559 

4,329,1 9 5 

73,065 

47,467 

47,466.78 

UMC Korea Co., Ltd. 

14,575 

24,520 

3, 532 

20,988 

15,001 

1,496 

979 

TLC Capital Co., Ltd.

3,979,563 

4,325,652 

51,740 

4,273,912 

311,587 

22, 5 13 

24,565 

8.90 

0.06 

Fortune Venture Capital Corp.

4,017,344 

4,738,1 1 8 

21,7 7 3 

4,716,345 

84, 41 7 

(136,390)

(119,265)

(0.26)

Green Earth Limited

29,988,444 

11,643,953 

- 

11,643,953 

UMC Investment (Samoa) 
Limited

43,519 

42,022 

 - 

42,022 

-

-

- 

(5,124,276)

(5.24)

-

(886)

(0.58)

NexPower Technology Corp.

711,986 

847,694  

1,142,660 

(294,966)

27,225 

(301,265)

(420,302)

(5.90)

UMC Capital (USA)

6,184 

17,222 

15 1 

17,07 1 

922 

44 

191 

0.96 

ECP Vita Pte. Ltd.

278,271 

583,465 

30,829 

552,636 

32,646 

30,054 

29,580 

3.29 

Soaring Capital Corp.

27,351 

10,264 

 - 

10,264 

1 

(3,556)

(3,560)

(3.96)

Unitruth Advisor (Shanghai) 
Co., Ltd.

Tera Energy Development Co., 
Ltd.

Everrich Energy Investment (HK) 
Limited

Everrich (Shandong) Energy Co., 
Ltd.

24,735 

14,279 

3,758 

10, 5 2 1 

5,314 

(3,404)

(3,529)

NA

186,551 

65,700 

4,462 

61,238 

5,537 

1, 1 4 1

(22,063)

(1.18)

25,988

38,509 

40 

38,469 

-

(52)

7,443 

9.92 

23,189 

50,723 

11,033 

39,690 

40,417 

2,8 16 

7,505 

NA

180

United Microelectronics Corporation  |  Annual Report 2019  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.94 

1. 31 

NA

NA

NA

7.28 

Wavetek Microelectronics 
Corporation

Wavetek Microelectronics 
Investment (Samoa) Limited

Wavetek Microelectronics 
Corporation (USA)

Best Elite International 
Limited

HeJian Technology (Suzhou) 
Co., Ltd.

UnitedDS Semiconductor 
(Shandong) Co., Ltd.

United Microtechnology 
Corporation (New York)

United Microtechnology 
Corporation (California)

United Semiconductor  
(Xiamen) Co., Ltd.

Summary of Affiliated Enterprises (Continue)

Company

Capital

Assets

Liabilities Net Worth

 In Thousand NTD

 Operating 
Revenues

Operating 
Income 
(Loss)

Net Income 
(Loss)

Earnings (Loss) 
Per Share 
(NTD)

1,813, 7 7 1 

1,639,434 

1,1 1 8 , 5 9 1 

520,843 

1,631,401  

(257,507)

(279, 1 1 5 )

(1.55)

46, 2 7 5  

3,680  

1,556 

2,1 2 4 

-

(7,307)

(6,920)

(4.61)

1, 855 

3,1 8 7 

327 

2,860 

7,244 

348 

237 

7,388,888 

23,186,048 

3,043 

23,183,005 

Infoshine Technology Limited

10,945,326 

23, 1 1 3 ,468 

Oakwood Associates Limited

10,945,326 

23, 1 1 3 ,468 

-

-

23,113,468 

23,113,468 

-

-

-

(5,422)

870,821 

 - 

877,676 

(8,738)

877,676 

14,342,7 5 8 

26,544,484 

2,821, 2 3 1 

23,723,253 

10,422,268 

2,269, 1 1 1 

908,836 

0.28 

134, 2 53 

281,440  

48,828 

232,612 

194,709 

38,042 

36,889 

Omni Global Limited 

130,160 

611,890 

2 1 ,1 8 8 

590,702 

(87)

31, 3 1 2 

-

66 

29, 3 7 3 

31, 2 13 

62 

3 1 , 1 5 1 

4 

20 

521.55 

30,919 

37,229 

1,020 

36,209 

25,984 

1, 47 1 

1,583 

39,595.79 

56,823,898 

83,294,064 

59,319,295 

23,974,769 

8,572,759 

(7,609,390)

(10,098,778)

NA

United Microchip Corporation

29,874,878 

11 ,617,342 

 - 

11,617,342 

 - 

(20)

(5,124,089)

(5.26)

UMC Technology Japan  
Co., Ltd.

4,961 

9,232 

51 

9, 1 8 1 

774 

45 

(169)

(48.25)

Sino Paragon Limited

83,204 

121,840 

 -

121,840 

 - 

(27)

940 

United Semiconductor  
Japan Co., Ltd. 

2,835,000 

23,676,7 7 2 

5,544,096 

18,132,676 

4,277,323 

270, 5 1 8 

270,787  

Note 1:  USD:NTD=1:30.919, JPY:NTD=1:0.2835, EUR:NTD=1:34.615, RMB:NTD=1:4.4751, KRW:NTD=1:0.02650.

Note 2: United Semiconductor Japan Co., Ltd. became consolidated entity on October 1, 2019. 

0.36

2.33 

181

Special Disclosures 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance of Private Placement Securities

None.

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.

4,017,344

New 
shares
for cash

Note:  (1) The data is dated February 26, 2020. 

100.00

2020

None

None

None

16,078,737

105,114

2019

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 2019 and as of the Annual Report Printing Date

None.

182

United Microelectronics Corporation  |  Annual Report 2019 
 
 
Financial Review

184  Condensed Balance Sheets 
186  Condensed Statements of Comprehensive Income 
188   Financial Analysis 
192  Audit Committee’s Review Report 
193  Financial Statements – Consolidated
269  Financial Statements – Parent Company

183

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

2019

2018

2017

2016

2015

153, 7 5 7, 1 4 1

14 1 ,193,432

139,160,486

110,469,594

94,816, 5 2 1

150,374,096

17 2 ,846,595

205,741,681

224,983,404

186,433,395

5 ,198,247

2 ,991,804

60,857,881

4 7,573,075

3,787,509

45,409,486

4,088,303

47, 1 13 ,881

4,504,088

51 ,612,806

370,1 8 7,365

364,604,906

394,099,162

386,655,1 82

337,366,810

72,7 14,322

49,899, 337

88,061,070

7 1 ,978,462

48,245, 5 1 8

*

56,815,442

96,618,093

78,090,621

55,152,491

90,258,62 1

108,169,078

92,000,508

95,935,096

60,303,889

162,972,943

15 8,068, 4 1 5

180,061,578

167,913,558

108,549,407

*

16 4 ,984,520

188,618,601

174,025, 7 1 7

115,456,380

206,804, 35 7

206,069,7 23

213,080,776

216,579,895

226,790,338

1 1 7,575,798

12 4 ,243,1 8 7

126,243,1 8 7

126,243,1 8 7

127,581,329

39,550,394

60,820,280

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

*

5 4 ,672,438

39,508,876

41 ,543,0 17

43,800,669

Other components of equity

(11,022,314)

(14, 5 13 ,940)

2,632,37 7

6,403,477

Treasury stock

Non-controlling interests

Total equity

Before 
distribution

After 
distribution

( 119,801)

410,065

(5,647,430)

(4,719,037)

(4,719,037)

466,768

956,808

2,161 ,729

207, 214 ,422

206,536,491

214,037,584

218,741,624

228,817,403

*

199,620,386

205,480, 561

212,629,465

221,910,430

10,675,404

(3,825,606)

2,027,065

Note 1  :  * Subject to change based on resolutions of the 2020 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.

184

United Microelectronics Corporation  |  Annual Report 2019 
 
Condensed Balance Sheets-Parent Company

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

2019

2018

2017

1 0 7,866,299

79,486,445

101,335,770

101, 1 1 5 ,727

106,676,034

1 2 7,101,974

4,082,826

1 1 1 ,315,394

302,750,964

43,764,772

2,886,159

93,849,564

3,459,829

84,756,630

299,187,220

32 1 ,994,467

26,797,263

58,655,702

2016

82,558,263

157,573, 1 3 1

4,015,370

82,908,196

327,054,960

47,397,892

In Thousand NTD

2015

72,211, 2 1 1

169,031,687

4,399,963

80,159,888

325,802,749

41,441,501

*

33,713,368

67,212,725

53,510,051

48,348,474

52,1 8 1 ,835

95,946,607

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

*

100,033,602

1 1 7,470,7 14

116,587,224

105,919,384

206,804,357

1 1 7,575,798

39,550,394

60,820,280

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

*

54,672,438

39,508,876

41,543,017

43,800,669

( 1 1 ,022,314)

(14,513,940)

(119,801)

(5,647,430)

2,632,377

(4,719,037)

6,403,477

(4,719,037)

1 0,675,404

(3,825,606)

206,804,357

206,069,723

213,080,776

216,579,895

226,790,338

*

199,1 5 3 ,618

204,523,753

210,467,736

219,883,365

Note 1  :  * Subject to change based on resolutions of the 2020 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.

185

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

2019

2018

2017

2016

2015

148,201,641

151,252,571

149,284,706

147,870,124

144,830,421

2 1 ,314,972

4,689,850

1 ,045,787

5,735,637

6,128,767

3,408,785

9,537,552

9,707,614

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

(3,578,847)

(4,429,938)

(2,997,469)

(4,452,585)

(612,973)

13,131,612

8,126,828

5,705,980

3,983,198

11,716,094

(3,594,060)

(4,533,832)

(3,109,070)

(4,484,903)

(675,087)

Earnings per share (NTD)

0.82

0.58

0.79

0.68

1.08

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.

186

United Microelectronics Corporation  |  Annual Report 2019 
Condensed Statements of Comprehensive Income-Parent Company

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

2019

2018

2017

2016

2015

123,622,436

132,834,602

132,179,198

135,592,136

130,685,516

27,161,230

10,281,974

( 1 ,148,875)

9,133,099

9,707,614

3,423,998

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)

28,358,887

28,686,022

9,605,769

(594,179)

9,011,590

8,315,660

(4,332,462)

10,913, 8 1 1 

3,032,406

13,946, 2 1 7 

13,448,624 

(1,732,530) 

Total comprehensive income

13,131,612

8,126,828

5,705,980

3,983,198

11 ,716,094 

Earnings per share (NTD)

0.82

0.58

0.79

0.68

1.08

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 2015 to 2019

Year

2015

2016

2017

2018

2019

CPA

Audit 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

Wan-Ju Chiu, Hsin-Min Hsu

Unqualified Opinion with Emphasis of Matter Paragraphs or Other Matter Paragraphs

187

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

2019

44.02

169.65

211.45

172. 1 3

2.96

5.98

6 1

6.36

16.19

57

0.92

0.40

2. 3 1

4.70

7.92

4.1 4

0.82

7 5. 5 1

96.56

4.54

23.1 6

2.67

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

Analysis of changes of over 20% between 2018 and 2019:

1.    Current ratio: Due to increase in current portion of long-term liabilities.

2.   Quick ratio: Due to increase in current portion of long-term liabilities.

3.   Times interest earned: Due to increase in income before income tax.

4.   Return on assets: Due to increase in net income.

5.    Return on stockholders' equity attributable to the parent company: Due to increase in net income attributable to stockholders  

  of the parent.

6.   Pre-tax income to paid-in capital: Due to increase in income before income tax attributable to stockholders of the parent.

7.    Net profit margin: Due to increase in net income.

8.   Earnings per share: Due to increase in net income attributable to stockholders of the parent.

9.   Cash flow reinvestment ratio: Due to increase in current portion of long-term liabilities.

10. Operating leverage: Due to decrease in operating income.

11.   Financial leverage: Due to decrease in operating income.

188

United Microelectronics Corporation  |  Annual Report 2019 
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.

189

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

2019

31.69

288.59

246.47

20 4.33

1 2 .1 6

5.95

6 1

6. 1 2

16. 4 1

60

1 . 37

0. 4 1

3.44

4.70

7.7 7

7.85

0.82

106. 1 2

155.1 6

4.09

8 .88

1.09

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

Analysis of changes of over 20% between 2018 and 2019:

1.  Current ratio, Quick ratio and Cash flow ratio: Due to increase in current liabilities.

2. 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 increase in income before tax and net income.

190

United Microelectronics Corporation  |  Annual Report 2019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.

191

Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
  
Audit Committee’s Review Report

The  Board  of  Directors  has  prepared  and  submitted  to  us  the  Company’s  2019  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.

To United Microelectronics Corporation 2020 Annual General Shareholders’ Meeting

Chairman of the Audit Committee: Cheng-Li Huang 

				 								April 27, 2020

192

United Microelectronics Corporation  |  Annual Report 2019	
	
	
	
	
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Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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, 2019 and 2018
(Expressed in Thousands of  New Taiwan Dollars, Except for Earnings per Share)

Operating revenues
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 loss, net
        Subtotal
Income from continuing operations before income tax
Income tax benefit
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 from equity instruments investments measured 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
    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 (loss)

    Net income (loss) attributable to:
        Stockholders of the parent
        Non-controlling interests

    Comprehensive income (loss) attributable to:
        Stockholders of the parent
        Non-controlling interests

Notes

4, 6(18), 7, 14
4, 6(4), 6(9), 6(13),
6(17), 6(19), 7, 14

4, 6(3), 6(9), 6(13),
6(17), 6(18), 6(19), 7, 14

For the years ended December 31,

2019

2018

$   

148,201,641
(126,886,669)

$   

151,252,571
(128,412,544)

21,314,972

22,840,027

(3,807,610)
(5,436,091)
(11,860,244)
(703,339)
(21,807,284)
5,182,162
4,689,850

1,705,675
1,257,299
(2,997,643)
1,147,495
171,585
(238,624)
1,045,787
5,735,637
393,130
6,128,767

(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

106,403
5,486,209

(55,060)
1,454,018

4, 6(7), 6(14), 6(20), 14

4
4, 6(21), 6(27)
6(21)
4, 6(6), 14
4, 6(26)
4, 12

4, 5, 6(23), 14

6(22)

4, 5, 6(13)

4

-  

(2,572)

1,231,722

(475,139)

4, 5, 6(23)

(158,260)

112,384

4, 5, 6(23)

(3,277,938)
15,348

(47,009)
(23,942)

5,301
3,408,785
9,537,552

$       

(12,736)
949,944
3,592,996

$       

$       

$       

9,707,614
(3,578,847)
6,128,767

$       

$       

7,072,990
(4,429,938)
2,643,052

$     

13,131,612
(3,594,060)
9,537,552

$       

$       

$       

8,126,828
(4,533,832)
3,592,996

    Earnings per share (NTD)
        Earnings per share-basic 
        Earnings per share-diluted 

4, 6(24)

$                
$                

0.82
0.76

$                
$                

0.58
0.55

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

198

United Microelectronics Corporation  |  Annual Report 2019y
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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, 2019 and 2018
(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

        Net (gain) loss of financial assets and liabilities at fair value through profit or loss

        Interest expense

        Interest income

        Dividend income

        Share-based payment

        Share of (profit) loss of associates and joint ventures

        Gain on disposal of property, plant and equipment

        Loss on disposal of investments

        Impairment loss on non-financial assets

        Exchange loss 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)

200

For the years ended December 31,

2019

2018

$          

5,735,637

$          

2,184,399

47,172,881

2,216,654

703,339

(1,279,931)

2,933,815

(994,061)

(711,614)

366,186

(1,147,495)

(43,036)

16,293

118,134

206,612

(171,585)

(4,062,148)

45,324,044

(594,847)

(126,340)

439,400

67,347

(1,370,249)

5,833,773

(64,732)

8,054

69,329

(739,066)

514,686

819,746

(35,398)

(3,240)

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)

-

55,878,144

52,702,660

973,241

818,691

(2,147,320)

(618,608)

54,904,148

666,774

782,157

(2,221,301)

(995,314)

50,934,976

United Microelectronics Corporation  |  Annual Report 2019          
          
            
            
               
               
          
            
            
            
             
             
             
             
               
               
          
               
               
             
                 
                 
               
                 
               
            
             
                           
          
          
          
          
             
               
             
             
               
          
                 
               
          
               
            
               
               
               
                   
             
                 
          
             
               
               
             
               
               
               
               
                 
                           
          
          
               
               
               
               
          
          
             
             
          
          
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, 2019 and 2018
(Expressed in Thousands of New Taiwan Dollars)

Cash flows from investing activities:

    Acquisition of financial assets at fair value through profit or loss

$           

(354,249)

$           

(593,563)

For the years ended December 31,

2019

2018

    Proceeds from disposal of financial assets at fair value through profit or loss
    Proceeds from disposal of equity instruments investments measured at fair value
       through other comprehensive income or loss

    Acquisition of investments accounted for under the equity method

    Proceeds from disposal of investments accounted for under the equity method

    Increase in prepayment for investments

    Proceeds from capital reduction and liquidation of investments

    Acquisition of subsidiary (net of cash acquired)

    Disposal of subsidiary

    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

    Cash payments for the principal portion of the lease liability

    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

    Change in non-controlling interests

    Others

        Net cash used in 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

229,553
44,466

(730,000)

5,970

(17,974)

32,214

(12,800,981)

32,017

-  

1,061
-  

(840,000)

-  

-  

61,800

-

(9,813)

(2,572)

(16,518,483)

(19,590,075)

45,042

(257,909)

441,013

(2,443,593)

617,685

(15,074)

8,786

200,991

(1,674,984)

691,807

(838,675)

7,129,770

(36,440)

1,090

(31,681,517)

(15,499,603)

25,732,933

22,021,005

(26,726,656)

(34,309,253)

(633,488)

(2,500,000)

11,449,930

(7,572,939)

269,415

(17,146)

(6,911,058)

(2,972,243)

-

3,388

10,818

(9,867,046)

(1,524,847)

11,830,738

83,661,739

-

(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

$        

95,492,477

$        

83,661,739

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

201

Financial Review               
                 
                           
                 
                 
        
        
                 
               
             
          
               
               
          
             
               
            
               
               
                   
                   
        
        
          
          
        
        
             
                           
          
          
          
               
          
          
               
               
               
             
          
          
          
          
                           
            
                   
               
                 
                           
          
        
          
                 
          
            
          
          
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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 COMPREHENSIVE INCOME 

For the years ended December 31, 2019 and 2018

(Expressed in Thousands of  New Taiwan Dollars, Except for Earnings per Share)

Operating revenues
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 subsidiaries, associates and joint ventures

    Bargain purchase gain

    Exchange gain, net

        Subtotal

Income from continuing operations before income tax

Income tax benefit

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 from equity instruments investments measured 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
    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 (loss)

    Earnings per share (NTD)

        Earnings per share-basic 

        Earnings per share-diluted 

For the years ended December 31,

Notes

2019

2018

4, 6(18), 7
4, 6(4), 6(9), 6(13),
6(17), 6(19), 7

4, 6(3), 6(9), 6(13),
6(17), 6(18), 6(19), 7

$      

123,622,436
(96,461,206)

$      

132,834,602
(102,286,411)

27,161,230

30,548,191

(2,870,050)

(3,791,439)

(9,719,780)

(689,095)

(2,932,576)

(3,475,793)

(11,133,700)

(356,435)

(17,070,364)

(17,898,504)

191,108

140,550

10,281,974

12,790,237

1,203,175

1,017,178

(861,601)

(2,872,245)

171,585

193,033

944,738

(772,104)

(824,954)

(6,641,627)

-  

712,366

(1,148,875)

(6,581,581)

9,133,099

574,515

9,707,614

106,403

5,605,384

-  

6,208,656

864,334

7,072,990

(55,060)
1,458,848

(2,572)

4, 6(14), 6(20), 7

4

4, 6(21)

6(21)

4, 6(6)

6(6)

4,12

4, 5, 6(23)

6(22)

4, 5, 6(13)

4

4, 5, 6(23)

(158,260)

112,384

1,112,547

(479,969)

(1,045,504)
(2,204,824)

1,094,614
(1,062,412)

4, 5, 6(23)

8,252

(11,995)

3,423,998

1,053,838

$        

13,131,612

$          

8,126,828

4, 6(24)

$                   

0.82

$                   

0.58

$                   

0.76

$                   

0.55

The accompanying notes are an integral part of the parent company only financial statements.

274

United Microelectronics Corporation  |  Annual Report 2019 
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275

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, 2019 and 2018
(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

        Net (gain) loss 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

        Exchange 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

            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

For the years ended December 31,

2019

2018

$             

9,133,099

$             

6,208,656

31,630,966

1,872,075

689,095

(964,614)

818,313

(584,052)

(619,123)

366,186

2,872,245

(137,308)

(209,799)

(171,585)

(1,138,743)

34,423,656

151,453

(26,198)

1,406,598

14,542

(1,165,198)

737,806

895,067

36,539

101,987

464,631

(857,045)

537,918

(35,398)

-

45,819,457

552,382

715,515

(391,559)

(253,547)

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)

                    Net cash provided by operating activities

46,442,248

48,803,879

(continued)

276

United Microelectronics Corporation  |  Annual Report 2019             
             
                
                
                   
                   
                 
                   
                   
                   
                 
                 
                 
                 
                   
                   
                
                
                 
                 
                 
                 
                 
                               
              
              
             
             
                   
                       
                   
                 
                
              
                     
                   
              
                     
                   
                   
                   
              
                     
                 
                   
              
                   
                   
                 
                 
                   
                   
                   
                   
                               
                
             
             
                   
                   
                   
                
                 
                 
                 
                 
             
             
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, 2019 and 2018
(Expressed in Thousands of New Taiwan Dollars)

Cash flows from investing activities:
    Proceeds from disposal of equity instruments investments measured at fair value
       through other comprehensive income or loss
    Acquisition of investments accounted for under the equity method

    Increase in prepayment for investments

    Proceeds from capital reduction 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

    Cash payments for the principal portion of the lease liability

    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

    Others

        Net cash used in financing activities

Effect of exchange rate changes on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

For the years ended December 31,

2019

2018

$                  

44,466

$                            
-

(16,485,610)

(17,709,460)

-

750,000

-

(132,937)

840,000

(2,572)

(10,966,528)

(10,291,299)

323,807

(248,459)

268,717

(1,253,320)

-

(2,112,818)

51,862

(15,074)

8,786

413,519

(1,537,579)

667,555

(4,688,320)

8,916,796

(838,675)

123,367

(36,440)

-

(29,634,171)

(24,276,045)

4,199,985

(4,177,125)

(462,642)

(2,500,000)

8,859,840

(5,279,660)

207,596

(16,748)

(6,911,058)

(2,972,243)

-

10,818

(9,041,237)

(574,174)

7,192,666

59,342,170

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

$           

66,534,836

$           

59,342,170

The accompanying notes are an integral part of the parent company only financial statements.

277

Financial Review                             
                 
                             
            
            
                  
                  
                 
              
                  
                  
              
              
                             
               
              
                 
                    
                  
                   
                   
                      
                             
            
            
               
               
              
            
                 
                             
              
              
               
                  
              
                 
                  
                    
                   
                 
              
              
              
              
                             
               
                    
                             
              
            
                 
                  
               
                 
             
             
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United Microelectronics Corporation  |  Annual Report 2019 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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United Microelectronics Corporation  |  Annual Report 2019 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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