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United Microelectronics

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FY2020 Annual Report · United Microelectronics
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United Microelectronics Corporation
2020 Annual Report
Printed on February 24, 2021

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

https://www.umc.com

https://mops.twse.com.tw

TSE Code: 2303

NYSE Symbol: UMC

Annual Report
2020

Spokesperson

Chitung Liu

Senior Vice President and  

Chief Financial Officer 

886 (2) 2658 9168

Chitung_Liu@umc.com

Fab 8F

Securities Dealing Institution

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

Horizon Securities Co., Ltd.

Taiwan 30078, R.O.C.

886 (3) 578 2258

Fab 8S

Stock Registration Department

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

10680, R.O.C.

886 (2) 2326 8818

Acting Spokesperson(s)

Hsinchu, Taiwan 30077, R.O.C.

16 Creation 1st Rd., Hsinchu Science Park, 

http://www.honsec.com.tw

Jinhong Lin

Finance Division

Senior Director

886 (2) 2658 9168

Jinhong_Lin@umc.com

David Wong 

Finance Division

Manager

886 (2) 2658 9168

886 (3) 578 2258

Fab 12A

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

Southern Taiwan Science Park, Sinshih,  Tainan, 

Taiwan 74147, R.O.C.

886 (6) 505 4888

Singapore Branch

3 Pasir Ris Drive 12, Singapore 519528

David_Wong@umc.com

65 6213 0018

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

ADR Exchange Marketplace

NYSE Euronext

11 Wall Street,

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

1 (212) 656 3000

http://www.nyse.com

Ticker/Search Code: UMC

Euro Convertible Bond Exchange 
Marketplace

Singapore Exchange Securities Trading 

Limited

2 Shenton Way 

#02-02 SGX Centre 1

Singapore 068804

65 6236 8888

http://www.sgx.com

Subsidiary in Mainland China
HJ

333 Xinghua St., Suzhou Industrial Park, Suzhou, 

Jiangsu Province 215025, P.R.C.

0512 65931299

Subsidiary in Mainland China
USCXM

899 Wan Jia Chun Road, Xiang’an District, Xiamen, 

Fujian Province, P.R.C.

0592 7687888

Subsidiary in Japan
USJC

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

ECB Search Code: ISIN XS1228110000

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

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

https://www.umc.com

Headquarters

3 Li-Hsin 2nd Rd., Hsinchu Science 

Park, Hsinchu, Taiwan 30078, R.O.C.

886 (3) 578 2258

Taipei Office

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

11493, R.O.C.

886 (2) 2658 9168

Fab 8A

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

Park, Hsinchu, Taiwan 30078, R.O.C.

886 (3) 578 2258

Fab 8C & Fab 8D

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

Park, Hsinchu, Taiwan 30078, R.O.C.

886 (3) 578 2258

Fab 8E

17 Li-Hsin Rd., Hsinchu Science Park,  

Hsinchu, Taiwan 30078, R.O.C.

886 (3) 578 2258

Table of Contents

Letter to Shareholders	

	 4 

Capital Overview 

  99 

Corporate Profile	

	 8 

9 

Corporate Profile and Date of Establishment

10  Corporate Milestones

100  Capital and Shares

106  Issuance of Corporate Bonds

111  Preferred Shares

112  American Depositary Receipts

Corporate Governance Report 

13 

14  Corporate Organization

16  Directors’ and Managers’ Information

37  Corporate Governance Practices

114  Employee Stock Option Handling Status

114 

Issuance of New Restricted Employee Shares 

115  Status of New Shares Issuance in Connection with  

Mergers and Acquisitions

115  Financing Plans and Execution Status

93  Certified Public Accountant (CPA) Fee Information

93 

Information of CPA Change

93  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

Operations Overview 

121  Business Activities

128  Overview of Market, Production, and Sales

134  Employees

135  Environmental Expenditure Information

94  Change in Shareholding of Directors, Managers and Major  

135  Labor Relations

Shareholders Who Own 10% or More of UMC Shares

139  Major Contracts

120

96  Relationship Among the Top 10 Shareholders

97  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

2

United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
 
 
 
 
Review of Financial Position, Operating   141  
Results, Risk Management

Financial Review 

183  Condensed Balance Sheets

182

185  Condensed Statements of Comprehensive Income

187  Financial Analysis

191  Audit Committee’s Review Report

192  Financial Statements – Consolidated

269  Financial Statements – Parent Company

142  Financial Position

143  Financial Performance

144  Cash Flow

144  Major Capital Expenditures from Recent Years and  
Impact on Company’s Finance and Business

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

145  Risk Management and Evaluation

154  Other Necessary Supplements

Social Responsibility 

    15 5

156  Description of Corporate Social Responsibility

158  About Social Charity

162  Environmental Protection, Safety and Health  

Management Instructions

Special Disclosures 

    16 8

169  Summary of Affiliated Enterprises

181 

Issuance of Private Placement Securities

181  Acquisition or Disposal of UMC Shares by Subsidiaries

181  Other Necessary Supplements

181  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 2020, global confirmed cases and deaths from COVID-19 continued 

to rise, dealing the economy a major setback and significantly impacting 

people’s  lives.  UMC’s  management  team  addressed  this  unsteady 

situation by imposing corporate safety policies that met or exceeded 

those set forth by the government, confronting the epidemic head-on 

with our employees and working together to maintain normal operations 

and stable growth.

2020 Business Summary

After adjusting UMC’s business strategy, the company has transformed 

Advanced Technologies Development

into a semiconductor foundry leader focusing on specialty technologies. 

UMC’s advanced technology platforms including 14FFC (14nm FinFET 

We accomplished this by first strengthening the company’s financial 

Compact),  22nm  ultra-low  power  (22ULP),  22nm  ultra-low  leakage 

structure, then expanding production capacity in a cost-competitive 

(22ULL)  and  28nm  High  Performance  Compact  (28HPC+)  process 

manner and optimizing our product portfolio. Examining the current 

technologies have already entered production. 28HPC+ was designed 

results reveals solid performance in the areas of strategic positioning, 

to support image signal processor (ISP) in 2020 and is undergoing an 

technology,  production  capacity,  yield,  profitability  and  sustainable 

engineering upgrade for 2021. Other newly released processes in 2020 

operation.  UMC’s  2020  revenue  grew  19%  over  the  prior  year.  Our 

include mmWave using 55nm, 40nm and 28nm to fulfill high performance 

foundry segment shipped a total of 8.9 million 8-inch equivalent wafers 

and low power product requirements for mobile devices, Internet of 

for  the  year,  growing  24%  YoY.  Capacity  utilization  reached  97%  in 

Things (IoT), 5G, automotive electronics and industrial radar that use 

2020, growing 8% YoY. Full year revenue reached NTD 176.8 billion, 

mmWave.

with  22.05%  gross  margin  rate  and  12.45%  operating  margin  rate. 

Profit attributable to the parent company was NTD 29.19 billion or an 

Specialty Process Technologies Pipeline

earnings per share of NTD 2.42. In 2020, UMC invested NTD 12.9 billion 

For specialty processes, UMC’s 28nm high voltage (HV) platform was 

in R&D. The cash based capex in 2020 was USD 1 billion, which was 

the industry’s first such technology to enter mass production and is being 

mainly invested in new R&D process equipment and production capacity 

utilized for driver ICs used in high resolution organic light-emitting display 

expansion at Southern Taiwan Science Park Fab 12A, Xiamen Fab 12X 

(AMOLED) panels. 22nm embedded high voltage (22eHV) development 

and Suzhou Fab 8N, as well as product mix optimization across all fabs.

is also underway and on schedule.

44
44

Our Radio Frequency Silicon On Insulator (RFSOI) technology has met 

the stringent requirements of all 4G/5G mobile phones for RF switches. 

Currently, 90nm RFSOI is in mass production with 55nm RFSOI under 

development. At the same time, 40nm RFSOI development has begun 

with the intent to capture the 5G/mmWave mega-trend. For embedded 

flash memory technology (eFlash), 40nm SST has been introduced into 

mass production, while 28nm SST development progress is in line with 

expectations and will fulfill the demand for IoT products. 40nm Resistive 

Random Access Memory (ReRAM) has entered mass production.

Development of 22nm Resistive Random Access Memory (ReRAM) 

and  22nm  Embedded  Magneto-resistive  Random  Access  Memory 

(eMRAM) technologies are progressing as planned and will be designed 

into Al Internet of Things (AIoT) applications. In addition, we are actively 

investing in the development of gallium nitride (GaN) and microwave 

platforms  to  penetrate  high-efficiency  power  component  and  5G 

microwave component markets.

Growing Intellectual Property Portfolio

Facing  intense  global  competition,  UMC  has  paid  special  attention 

patents and IP protection. The overall number of patents granted to 

UMC has maintained steady growth. A total of 484 domestic and foreign 

patents  were  obtained  in  2020,  including  271  US  patents,  96  ROC 

patents, and 117 patents from mainland China. The total number of 

patents granted to UMC over the years is 13,991, supporting a strong 

and  comprehensive  intellectual  property  portfolio  that  solidifies  the 

company’s manufacturing process know-how.

5

Letter to Shareholders Corporate Governance and Sustainability

UMC adheres to the sustainable vision of “people-oriented, symbiosis 

with  the  environment,  and  prosperity  with  society.”  While  pursuing 

profitable growth, we are committed to the balanced development of the 

three-ESG dimensions of “environment, society, and governance” and 

actively follow the sustainability and development goals of the United 

Nations.

In 2020, UMC received many honors and recognitions from domestic and 

international institutions, governments and associations in sustainability 

and  development,  information  disclosure,  corporate  governance, 

environmental protection, and customer service:

Listed  on  the  “DJSI  Dow  Jones  Sustainability  Index  World  Index”  for  13  

consecutive years

Continuously  selected  as  constituent  stocks  on  the  FTSE4Good  Emerging  

Market and Taiwan Perpetual Indexes

Received the “Taiwan Business Sustainability Report Award” for 13 consecutive  

years and the highest platinum award for the third time

Achieved the top 5% in the “Corporate Governance Evaluation” for 6 consecutive  

years

Received the “Green Chemistry Innovation and Application Award” from the  

Environmental Protection Agency for 2 consecutive years

Won the “Second National Enterprise Environmental Protection Award-Giant  

Award”

The pandemic has led to different work behaviors and spurred new 

market  demand  in  several  areas;  artificial  intelligence,  advanced 

manufacturing, 5G communications, and quantum information technology 

will play a vital role in the use of semiconductor technology. UMC will 

66

United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
 
 
 
 
 
 
 
continue to strengthen the company’s competitive advantages, grasp 

In closing, we would like to thank our customers and shareholders 

new market trends and provide innovative services after the pandemic 

for their support, and the efforts of all employees that enabled UMC 

is over. We will strive to maintain the established business strategy of 

to realize record breaking revenues in 2020 despite the impact of the 

improving financial strength and continuous growth. In sustainability 

epidemic. We will continue to pursue growth and progress and set 

and development, UMC’s core strategies include: (1) Optimize risk 

higher benchmarks, continue to invest, deepen our roots in Taiwan, and 

management  and  compliance  with  laws  and  regulations  and  the 

serve our customers across the globe so that we can create a win-win 

pursuit of sustainable corporate value; (2) Continue to master the key 

situation for shareholders, colleagues, customers, and the society. We 

supply chain role by establishing effective partnerships and developing 

would like to express our sincere gratitude to all shareholders, and we 

innovative business models; (3) Remain committed to technological 

wish you good health and happiness.

innovation, combining advanced manufacturing, smart factories, data 

assets and core talents.

President: SC Chien

Chairman: Stan Hung

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 2020Corporate Profile and Date of Establishment

Founded  on  May  22,  1980  as  Taiwan’s  first  semiconductor  company, 

UMC has 12 wafer fabs located throughout Asia, including four advanced 

UMC has grown to become a leading global semiconductor foundry. The 

12-inch fabs. Fab 12A was Taiwan’s first 12-inch fab, and has been in 

company provides high quality IC production with a focus on both logic 

volume  production  for  customer  products  since  2002.  This  advanced 

and specialty technologies to serve every major sector of the electronics 

facility consists of Phases 1-6 and is currently manufacturing customer 

industry. UMC’s comprehensive technology and manufacturing solutions 

products  using  28-nanometer  High-K/Metal  gate  technologies.  UMC’s 

include  Logic/RF,  embedded  high  voltage,  embedded  flash,  RFSOI/

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

BCD  and  IATF-16949  automotive  manufacturing  certification  for  all  its 

company’s specialty technology center that provides highly specialized 

manufacturing  facilities.  UMC  operates  12  fabs  that  are  strategically 

processes on 12-inch manufacturing to serve a diverse range of product 

located throughout Asia with a maximum capacity of more than 750,000 

applications. United Semi, located in Xiamen, China, was established as 

8-inch equivalent wafers per month. The company has offices in Taiwan, 

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

China, Europe, Japan, Korea, Singapore, and the United States. 

in  2016.  United  Semi  serves  China’s  vast  IC  market  and  provides 

UMC  led  the  development  of  the  commercial  semiconductor  industry 

customers.  Japan-based  USJC,  fully  acquired  in  October  of  2019,  is 

in  Taiwan.  It  was  the  first  local  company  to  offer  foundry  services,  as 

UMC’s fourth 300mm fab. USJC offers foundry volume production for 

well  as  the  first  semiconductor  company  to  list  on  the  Taiwan  Stock 

mature specialty nodes ranging from 90-nanometer to 40-nanometer.

high  quality,  geographically  diversified  manufacturing  for  our  foundry 

Exchange (1985). UMC has an extensive network of service offices in 

Taiwan, China, Europe, Japan, Korea, Singapore, and the United States 

In  addition,  UMC’s  manufacturing  expertise  and  over  40  years  of 

with approximately 19,000 employees worldwide to meet the needs of 

experience  ensure  industry-leading  cycle  times  and  defect  densities. 

its global customer base. UMC will continue to provide customers with 

Comprehensive process control systems with advanced methodologies 

robust  process  technologies  and  comprehensive  foundry  solutions, 

and  a  strong  engineering  team  support  fast  product  ramp.  UMC’s 

enabling  customers 

to  continuously  strengthen 

their  competitive 

advanced automation, mature defect density, fast cycle times and ample 

advantage in today’s rapidly changing industry. 

capacity  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 

July, 1985 

July, 1995 

Established

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 

January, 2000 

Official construction began for UMC's 12-inch fab in Tainan 
Science Park

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 

July, 2004 

90nm process was fully verified and started mass production

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 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 

October,  2019 

Acquired 100% of MIFS 300mm fab, renamed USJC 

May,  2020 

Celebrated 40th Anniversary

November,  2020 

Selected as a DJSI Global Component for 13th Consecutive 
 Year

11

Corporate Profile 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12

United Microelectronics Corporation  |  Annual Report 2020Corporate Governance Report 

14 
16 
37 
93 
93 
93 

Corporate Organization
Directors’ and Managers’ Information
Corporate Governance Practices
Certified Public Accountant (CPA) Fee Information
Information of CPA Change
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
96   Relationship Among the Top 10 Shareholders
97 

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

94 

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

Engineering Service

•  Responsible  for  client  and  regional  market  development  in  the  
  Americas,  Europe,  and  Asia,  and  provide  technical  support  and  
  services.

Global Sales and Marketing

•  Responsible for global customer and operational management and  
  market development, and provide technical support and services.
•  Undertake UMC's objectives, analyze market information and integrate  
  UMC's  internal  resources  and  external  competition.  Formulate  
technical development blueprints, strategic  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

•  Design,  develop  and  manage  intellectual  proper 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  technologies  for  various  mature  and  
  special process platforms.

•  Responsible  for  product  engineering,  malfunction    and  material  
  analysis,  product  introduction  and  yield  improvement  for  all  

fabs.

•  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  information  technology  (IT).  Construct  data-driven  
  advanced semiconductor smart manufacturing systems to improve  
  product  quality  and  yield.  Improve  and  optimize  production  
  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 2020 
 
 
 
 
 
 
Corporate 

Manufacturing 

& Operation 

Resource 

Finance

Planning

Integration

Corporate  

Legal, IP & 

Human 

New Business 

Development 

Compliance

Resources

Development 

Corporate and Operation Planning

Human Resources

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

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

Manufacturing  Resource Integration

•  Responsible for company-wide plant operations, plant expansion  
  planning and environmental safety and risk management.

Finance

  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  ef fectiveness  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

49,301,452

0.40

Independent 
Director

R.O.C.

Cheng-Li 
Huang

Male

2018.06.12
<2009.06.10>

2021.06.11

Independent 
Director

Independent 
Director

Independent 
Director

R.O.C.

Wenyi Chu

Female

R.O.C.

Lih J. Chen

Male

2018.06.12
<2015.06.09>

2021.06.11

2018.06.12
<2018.06.12>

2021.06.11

R.O.C.

Jyuo-Min Shyu Male

2018.06.12
<2018.06.12>

2021.06.11

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

16

United Microelectronics Corporation  |  Annual Report 2020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; 
Chairman, UMC Capital Corp.; 
Director, Triknight Capital Corporation; 
Director, United Microelectronics (Europe) B.V.; 
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, Qisda 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

Director

R.O.C.

Ting-Yu Lin

Male

Director

R.O.C.

N/A

Hsun Chieh 
Investment Co., 
Ltd.

Date Elected
(Date 
Assumed)


2018.06.12
<2009.06.10>

2018.06.12
<1995.06.21>

Term 
Expires

Shareholding When 
Elected

Present  
Shareholding

Common 
Shares

%

Common 
Shares

%

2021.06.11

12,547,222

0.10

12,547,222

0.10

2021.06.11

441,371,000

3.50

441,371,000

3.55

R.O.C.

Representative:
SC Chien

Male

2018.06.12
<2016.03.01>

2021.06.11

1,894,648

0.02

9,294,648

0.07

Director

R.O.C.

Silicon Integrated 
Systems Corp.

N/A

2018.06.12
<2005.06.13>

2021.06.11

315,380,424

2.50

285,380,424

2.30

U.S.A.

Representative:
Jason Wang

Male

2018.06.12
<2015.06.09>

2021.06.11

0

0

18,715,000

0.15

Former 
Director

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

Chung Laung Liu Male

2018.06.12
<2006.06.12>

2021.06.11

0

0

N/A

N/A

Note 1:  Present shareholding figures are actual number of shares held on January 31, 2021.

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 2020Spouse & Minor 
Shareholding

Common 
Shares

0

%

0

Experience (Education)

Selected Current Position at UMC and Other Companies

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

Director, Unimicron Technology Corp.

N/A

N/A

N/A

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, Unimicron Technology Corp.; 
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, UMC Group (USA);
Director, United Microelectronics (Europe) B.V.;
Director, UMC Capital Corp.;
Director, United Microtechnology Corporation (California);
Director, Sino Paragon Limited

N/A

N/A

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

N/A

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

Note 5:  Presidents and Chairman are not the same person, spouses or relatives within the first degree of kinship.

Note 6:  Director Chung Laung Liu was dismissed on November 7, 2020.

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. (63.51%); UMC (36.49%)

Silicon Integrated Systems Corp.

UMC (19.01%); Hsun Chieh Investment Co., Ltd. (3.16%); Hsing-Sen Liu (1.38%); Vanguard Emerging Markets Stock Index 
Fund,  a  series  of  Vanguard  International  Equity  Index  Funds  (1.12%);  Credit  Suisse  Securities  (Europe)  Limited  (1.10%); 
JPMorgan  Chase  Bank  N.A.,  Taipei  Branch  in  custody  for  Vanguard  Total  International  Stock  Index  Fund,  a  series  of 
Vanguard Star Funds (1.04%); Yung Chin Investment Corporation (0.63%); JPMorgan Securities Plc (0.51%); Tsung-Ming 
Chuang (0.48%); Wen-Hsi Chen (0.45%)

Major Shareholders of UMC’s Major Institutional Shareholders

Name of Institutional Shareholders Major Shareholders (Holding Percentage)

Shieh Yong Capital Co., Ltd.

Unimic r o n Tec hno l o gy C o r p. (16.67%); S ilic o n I nte gr ate d S ystems C o r p. (16.67%); Novatek 
Microelectronic s Corp. (15.15%); Yann Yuan Investment Co., Ltd. (12. 20%); 
Faraday Technology Corporation (12.12%); King Yuan Electronic s Co., Ltd. (7.58%)

Yung Chin Investment Corporation

Yung - Ken Chu (25.0 0%); H sing - Chin Chen (25.0 0%); Wen - Ping Fan (25.0 0%);   
Ya - Feng Chuang (25.0 0%)

20

United Microelectronics Corporation  |  Annual Report 2020Number of 
Companies 
also 
Serves as 
Independent 
Director for

Directors’ Professional Knowledge and Independence Information

Criteria

Five or More Years of Experience or Professional  
Qualification

Independence Status (Note)

1

2 3 4 5 6 7 8 9 10 11

12

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

-

-

-

-

-

-

-

-

-

-

0

0

0

0

0

0

1

0

Name

Stan Hung

SC Chien

Jason Wang

Cheng-Li Huang

Wenyi Chu

Lih J. Chen

Jyuo-Min Shyu

Ting-Yu Lin

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 column (1) or any person specified  

in columns (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 another company, and more than half of directors or voting shares of the 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  another  company,  and  Chairman,  President  or  Manager  with  equivalent  position  of  the  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 in 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 regulations 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 
(Date 
Assumed)

Present Shareholding

Spouse &  
Minor Shareholding

Common 
Shares

%

Common 
Shares

Chairman & Chief 
Strategic Officer

R.O.C.

Stan Hung

Male

2008.07.16

49,301,452

0.40

1,269,435

President

R.O.C.

SC Chien

Male

2004.11.23

9,294,648

0.07

President

U.S.A.

Jason Wang

Male

2014.12.24

18,715,000

0.15

Executive Vice 
President

R.O.C.

Ming Hsu

Male

2015.06.08

2,553,000

0.02

Senior Vice President R.O.C.

Oliver Chang

Male

2020.02.26

1,483,589

0.01

0

0

0

0

%

0.01

0

0

0

0

Senior Vice President 
& Chief Financial 
Officer

Senior Vice President 
& General Counsel

R.O.C.

Chitung Liu

Male

2005.10.20

3,280,217

0.03

150,000

0.00

R.O.C.

Lucas S Chang

Male

2018.01.01

600,000

0.00

0

0

Vice President

R.O.C.

TS Wu

Male

2013.01.01

1,572,809

0.01

304

0.00

Vice President

R.O.C.

C C Hsu

Male

2013.01.01

2,052,068

0.02

Vice President

R.O.C.

M C Lai

Male

2015.03.30

2,426,863

0.02

Vice President

R.O.C.

G C Hung

Male

2015.01.28

1,940,791

0.02

Vice President

R.O.C.

Wenchi Ting

Male

2017.01.03

150,000

0.00

0

0

0

0

0

0

0

0

22

United Microelectronics Corporation  |  Annual Report 2020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

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

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

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

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

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

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

Director, Fortune Venture Capital Corp.; Director, TLC Capital Co., Ltd.; 
Director, Unimicron Technology Corp.; Director, UMC Capital Corp.

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

Director, United Semiconductor Japan Co., Ltd.

None

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.

Director, Alpha and Omega Semiconductor Limited

None

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

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

Chairman, Wavetek Microelectronics Corporation; 
Director, Wavetek Microelectronics Investment (Samoa) Limited; 
Director, HeJian Technology (Suzhou) Co., Ltd.

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

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

Director, Wavetek Microelectronics Corporation

Director, Asia Pacific Microsystems, Inc.

23

Corporate Governance ReportManagers’ Information (Continue)

Title

Nationality

Name

Gender

Date 
Elected 
(Date 
Assumed)

Vice President

R.O.C.

Jerry CJ Hu

Male

2013 .04.02

1,245,000

Vice President

R.O.C.

Y S Shen

Male

201 4 .01.13

950,000

0.01

Vice President

R.O.C.

Steven S Liu

Male

201 7.04.24

  1,800,000

 0.01

Present Shareholding

Spouse &  
Minor Shareholding

Common 
Shares

%

0.01

Common 
Shares

0

0

 0

%

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

3,190,809

0.03

152,138

0.00

Vice President

R.O.C.

S S Hong

Male

2013 .01.01

616,406

0.00

Vice President

R.O.C.

Francia Hsu

Female

2016 . 03.16

1,321,000

0.01

0

0

0

0

Vice President

R.O.C.

Mindy Lin

Female

2018.05.14

1,643,925

0.01

781,408

0.01

R.O.C.

Eric Chen

Male

2 0 11 . 02.14

1,550,000

0.01

0

0

R.O.C.

Johnson Liu

Male

2 014 .11.04

536,413

0.00

401,631

0.00

R.O.C.

Victor Chuang

Male

2 0 19 .03.28

464,671

0.00

13,943

0.00

R.O.C.

Chuck Chen

Male

2 0 19 .03.28

550,000

0.00

R.O.C.

S F Tzou

Male

2013.01.01

1,679,108

0.01

0

0

0

0

R.O.C.

Le Tien Jung

Male

2013.01.01

880,000

0.01

20,000

0.00

R.O.C.

Yau Kae Sheu

Male

2014.01.13

1,320,000

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 2020Experience/Education

Selected Current Position at Other Companies

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

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

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

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

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

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

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

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

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

None

Director, Faraday Technology Corporation

None

None

None

Chairman, United Semiconductor Japan Co., Ltd.

None

None

Director, Best Elite International Limited

None

None

None

None

None

None

25

Corporate Governance ReportManagers’ Information (Continue)

Title

Nationality

Name

Gender

Date 
Elected 
(Date 
Assumed)

R.O.C.

J Y Wu

Male

2014.05.01

1,0 0 0,191

R.O.C.

Osbert Cheng

Male

2014.08.01

755,000

0.01

Present Shareholding

Spouse &  
Minor Shareholding

Common 
Shares

%

0.01

Common 
Shares

587

0

%

0.00

0

R.O.C.

Steven Hsu

Male

2016.03.16

510,000

0.00

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 

 140,146

0.00 

R.O.C.

Remi Yu

Male

2019.1 1 . 1 5

383,000

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

827,741

0.01

0

0

0

0

0

0

R.O.C.

C P Yen

Male

2015.09.16

758,645

 0.01

512,000

0.00 

R.O.C.

Pang Min Wang

Male

2018.09.14

221,126

0.00

R.O.C.

Ray Yang

Male

2020.07.01

376,274

0.00

R.O.C.

Bellona Chen

Female

2020.08.01

555,126

0.00

R.O.C.

Louis Hsieh

Male

2020.10.01

200,000

0.00 

16

117

0

 0

0.00

0.00

0

 0

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

Former Associate Vice 
President

R.O.C.

C Y Hsu

Male

2017.04.17

N/A

N/A 

 N/A

 N/A

Note 1: CY Hsu, former manager, was dismissed in 2020.

Note 2: Present shareholding figures are actual number of shares held on January 31, 2021.

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

26

United Microelectronics Corporation  |  Annual Report 2020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
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 Integrated Manufacturing Systems Engineering, 
North Carolina State University

Associate Vice President, UMC
Master in Electrical Engineering,  
The Ohio State University

Associate Vice President, UMC
Master in Business Administration,  
Columbia University

Associate Vice President, UMC
Master in Chemistry department,  
University of Missouri_Rolla Campus

Former Associate Vice President, UMC
EMBA. National Chiao Tung University

None

None

None

None

None

None

None

None

None

None

None

Director, ITE Tech Inc.; 
Director, ECP Vita Pte. Ltd.; 
Supervisor, Fortune Venture Capital Corp.

None

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

Companies
 in the
Consolidated 
Financial 
Statements

The
Company

The
Company

Companies
 in the
Consolidated 
Financial 
Statements

Companies
 in the
Consolidated 
Financial 
Statements

Chairman

Stan Hung

Independent 
Director

Independent 
Director

Independent 
Director

Independent 
Director

Director

Director

Director

Cheng-Li Huang

Wenyi Chu

Lih J. Chen

Jyuo-Min Shyu

Ting-Yu Lin

Hsun Chieh 
Investment Co., Ltd.

Representative:
SC Chien

Silicon Integrated 
Systems Corp.

Representative:
Jason Wang

Former Director Chung Laung Liu

 0

173  

 0

0 

32,369

55,369

9,800

9,890

0.14

0.22

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 2020Base Compensation 
Bonuses
and Special
Expenses etc. (E)

The
Company

Companies
 in the
Consolidated 
Financial 
Statements

Compensation Earned by a Director Who Is an Employee of UMC or  
UMC’s Consolidated Entities

Severance Pay
and
Pensions (F)

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

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

150,339

159,875

292

292

25,110

0

25,110

0

0.75

0.86

2,987 

29

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

Remuneration Range for Each 
Director in the
Company

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

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

Names of Directors

The
Company

SC Chien
Jason Wang

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

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

Companies
 in the
Consolidated 
Financial 
Statements

The
Company

Companies
 in the
 Consolidated 
Financial 
Statements

  Hsun Chieh 
Investment Co., Ltd.
Silicon Integrated 
Systems Corp.
Chung Laung Liu

Hsun Chieh Investment 
Co., Ltd.
Silicon Integrated 
Systems Corp. 
Chung Laung Liu 

  Hsun Chieh Investment  
Co., Ltd.
Silicon Integrated 
Systems Corp. 
Chung Laung Liu

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

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

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

Stan Hung 

Stan Hung
SC Chien 
Jason Wang

Stan Hung
SC Chien 
Jason Wang

11

11

11

11

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

30

United Microelectronics Corporation  |  Annual Report 2020  
  
 
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

81,257

101,233

2,255

2,255

390,037

402,553

Chairman & Chief 
Strategic Officer

Stan Hung

President

President

Executive Vice 
President

SC Chien

Jason Wang

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

TS Wu

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

Vice President

Vice President

SR Sheu

M L Liao

S S Hong

Vice President

Francia Hsu

Vice President

Mindy Lin

Vice President & Chief 
Human Resources 
Officer

Eric Chen

32

United Microelectronics Corporation  |  Annual Report 2020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

113,700

0

113,700

0

2.01

2.12

   4,362

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

Names of Presidents and  
Vice Presidents

The Company

Companies in the Consolidated                              
Financial Statements

Mindy Lin 

Mindy Lin 

Oliver Chang, Chitung Liu, Lucas S Chang, 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

Oliver Chang, Chitung Liu, Lucas S Chang, 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

Ming Hsu

 Ming Hsu

Stan Hung, SC Chien, Jason Wang

Stan Hung, SC Chien, Jason Wang

21

21

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

34

United Microelectronics Corporation  |  Annual Report 2020 
  
 
 
 
Remuneration Paid to Directors (Including Independent Directors), Presidents and Vice Presidents (Continue)

Employees’ Profit Sharing Bonus Paid to Management Team

Title

Name

Stock

Cash

In Thousand NTD

Total

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

Senior Vice President & Chief 
Financial Officer

Oliver Chang

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

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

Mindy Lin

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

Remi Yu

Associate Vice President

Michael CY Wang

Associate Vice President

Ji Fu Kung

Associate Vice President

C P Yen

Associate Vice President

Pang Min Wang

Associate Vice President

Ray Yang

Associate Vice President

Bellona Chen

Associate Vice President

Louis Hsieh

Former Associate Vice 
President

C Y Hsu

0

174,660

174,660

0.60

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 (%)

2020

2019

The Company

Companies in 
the Consolidated                              
Financial Statements

The Company

Companies in 
the Consolidated                              
Financial Statements

29,189,489

29,189,489

9,707,614

9,707,614

0.14

2.01

0.22

2.12

0.18

2.13

0.30

2.42

Note:  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.

The Company’ s compensation for Directors and Executive officers 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  according 

Compensation

to  the  Rules  for  Performance  Assessment  of  the  Board  of  Directors 

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

and  the  Performance  Appraisal  for  employees  of  UMC,  in  order  to 

shall  allocate  no  more  than  0.2%  of  profit  as  directors’  (including 

decide their compensation. An adequate compensation scheme will be 

Independent  Directors)  compensation  for  each  profitable  fiscal  year 

calculated by referencing the Company’s operation results, future risks, 

after offsetting any cumulative losses. Directors (including Independent 

corporate strategies, industry trends, and also individual contribution. The 

Directors)  may  only  receive  compensation  in  cash.  In  accordance 

performance  assessment  and  compensation  proposals  were  reviewed 

with  Article  17,  remunerations  for  all  directors  (including  Independent 

and  approved  by  Remuneration  Committee  and  Board  of  Directors. 

Directors)  shall  be  decided  by  the  Board  of  Directors  authorized  by  a 

The  Company  will  review  the  remuneration  policy  foresaid  based  on 

meeting of shareholders according to involvements and contributions to 

macroeconomics  and  business  strategies  to  achieve  both  corporate 

the Companies’ operation and at the normal rate adopted by other firms 

sustainability and interest of stakeholders.

of the same industry.

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 2020 
Corporate Governance Practices
Information of Board Meeting Operation

Board Meetings were held 8 times in 2020; all independent directors attended each meeting in person; the average attendance rate of all directors was 

97.18%; the attendances of directors were as follows:

Title

Name

Chairman

Stan Hung

Independent 
Director

Independent 
Director

Independent 
Director

Independent 
Director

Former  
Director

Director

Director

Cheng-Li Huang

Wenyi Chu 

Lih J. Chen

Jyuo-Min Shyu 

Chung Laung Liu

Ting-Yu Lin

Hsun Chieh Investment Co., Ltd.

Representative:
SC Chien

Director

Silicon Integrated Systems Corp.

Representative:
Jason Wang

Attendance in 
Person

By Proxy

Attendance Rate (%)

Remarks

8

8

7

8

8

7

8

8

8

0

0

1

0

0

0

0

0

0

100.00

100.00

87.50

100.00

100.00

100.00

100.00

100.00

100.00

Dismissed on  
November 7, 2020

Other mentionable items:
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  39-41  of  the  Annual  Report  for  related  information  of  the  operation  status  of  the  Audit  
Committee.

(2)  Other matters involving objections or expressed reservations by independent directors that were recorded or stated in writing that require a resolution by the board  

of directors: None.

2.  If there are directors’ avoidance of motions in conflict of interest, the directors’ names, contents of motion, causes for avoidance and voting should be specified:

(1)  Proposal for UMC’s donation to UMC Science and Culture Foundation on February 26, 2020: 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.

(2)  Proposal  for  approving  the  distributable  compensation  for  managerial  officers  on  February  26,  2020,  June  17,  2020,  July  29,  2020,  and  September  2,  2020:  
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.

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  

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 the “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. In addition to conducting a board performance evaluation every year, the Company also engaged with TAIWAN CORPORATE GOVERNANCE  
  ASSOCIATION  to  implement  performance  evaluation  of  the  Board  of  Directors  in  2020;  please  refer  to  the  Company’s  website  for  the  evaluation  report: 
  https://www.umc.com/en/IR_Director/directors_information

Note :  Attendance rate is calculated using the number of meetings each board member actually attends and total number of board meetings held within his or her service period.

37

Corporate Governance Report 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Execution Status of the Board Evaluation

Evaluation Cycle Evaluation Period

Evaluation Scope

Evaluation Method

Evaluation Content

Annually

2020/1/1~2020/12/31

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.

38

United Microelectronics Corporation  |  Annual Report 2020     
     
     
     
     
     
     
     
     
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 Audit Committee is responsible for periodic review of the following 
important annual matters:

the  Company  Act,  Securities  and  Exchange  Act  and  other  relevant 

•  Financial statements 

regulations. Since UMC is listed on the NYSE, it also has to comply with 

•  Internal control system

the  U.S.  regulations  regarding  foreign  issuers.  The  Audit  Committee  is 

•  Material transactions of assets, derivatives, loans,  

comprised  of  all  independent  directors,  with  2  financial  experts  and 

  endorsements, guarantees

operating according to the Audit Committee Charter (please refer to the 

•  Audit plans of internal and external auditors and their 

Company’s website at https://www.umc.com/upload/media/08_Investors/

  execution status

Corporate_Governance/Audit_Committee/Audit_Committee_Charter_

•  Engaging and removing the Company’s independent 

Eng.pdf).

  auditors and accessing such auditors’ remuneration and 

According to the relevant regulations, the Audit Committee shall convene 

independence

at least four regular meetings per year. In 2020 a total of five meetings 

•  Risks and control procedures of compliance with 

were convened; it shall also maintain good communication channels with 

  government law 

the Company’s internal auditors, independent auditors, and management. 

•  Execution of documentation that involves government 

  agencies 

•  Implementation of Whistleblower Program and Code of 

  Conduct

Information of Audit Committee Operation

There were five Audit Committee meetings in 2020, 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

4

5

5

0

1

0

0

100.00

Audit Committee convener

80.00

100.00

100.00

39

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

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 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.

Resolution of the 
Audit Committee

Company’s Response 
to the Opinion of the 
Audit Committee

Approved by all 
members present  
in the meeting.

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

April 27, 2020,  
the 14th meeting of  
the 14th session

July 29, 2020,  
the 17th meeting of  
the 14th session

1. Approved the Q1, 2020 Consolidated Financial Statements.
2. Approved the proposal for private placement based on future operation  
  needs and will propose this at the 2020 Annual General Meeting for  
  discussion.

Approved by all 
members present   
in the meeting.

1. Approved the Q2, 2020 Consolidated Financial Statements.
2. Approved to adjust the endorsement and guarantee of the loan for  
  United Semiconductor (Xiamen) Co., Ltd.
3. Approved the disposal of machinery equipment to United Semiconductor  

Approved by all   
members present  
in the meeting.

(Xiamen) Co., Ltd.

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.

40

United Microelectronics Corporation  |  Annual Report 2020 
 
Operation of the Audit Committee (Continue)

Date/Session of 
Board Meeting

Content of Motion

October 29, 2020,  
the 19th meeting of  
the 14th session

December 16, 2020,  
the 20th meeting of  
the 14th session

February 24, 2021,  
the 21st meeting of 
the 14th session

1. Approved the Q3, 2020 Consolidated Financial Statements.
2. Approved to decrease the endorsement and guarantee of the loan for  
  United Semiconductor (Xiamen) Co., Ltd.
3. Approved  the  Company  to  proceed  with  a  potential  investment  to  
  expand capacity.

1. Approved the revision of the internal control system and internal audit  

implementation rules.

2. Approved for UMC’s Singapore branch to lend funds to United  
  Semiconductor (Xiamen) Co., Ltd.
3. Approved to adjust the endorsement and guarantee of the loan for  
  United Semiconductor (Xiamen) Co., Ltd.
4. Approved the loan commitment to banks for United Semiconductor  

(Xiamen) Co., Ltd.

1. Approved the 2020 Consolidated Financial Statements (including  Parent  
  Company only Financial Statements).
2. Approved the 2020 Statement of Internal Control System.
3. Approved the content of appointed service and fee for the independent  
  auditor appointed in 2021.
4. Approved the Company’s donation to UMC Science and Culture  
  Foundation.
5. Approved termination of the issuance plan for private placement, which  
  was approved at the 2020 Annual General Meeting.
6. Approved the proposal for private placement based on future operation  
  needs and will propose this at the 2021 Annual General Meeting for  
  discussion.
7. Approved the acquisition of the Right-of-Use Asset from subsidiary  
  Wavetek Microelectronics Corporation.
8. Approved the issuance of unsecured straight corporate bonds.
9. Approved engagement in derivatives trading.

Resolution of the 
Audit Committee

Company’s Response 
to the Opinion of the 
Audit Committee

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.

Approved by all   
members present   
in the 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 2020.

2. Implementation of avoidance of independent director with respect to motion of stake: there was no such situation in the Audit Committee in 2020. 

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 each month. 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 and semi-annually separate meeting.

   (2)  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 during the Audit Committee’s quarterly meetings and separate meeting at least once a year. 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, and 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: 

https://www.umc.com/en/IR_Audit/audit_committee.

41

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

Evaluation Item

Yes

No

1.  Does the company establish and disclose the Corporate Governance Best-Practice Principles based on  

“Corporate Governance Practice Principles for TWSE/TPEx Listed Companies?” 

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 it 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?

42

United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
 
 
 
 
 
 
 
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:  https://www.umc.com/upload/media/08_Investors/Corporate_Governance/
Major_Internal_Policies/UMC_Corporate_Governance_Practice_Principles_20191030_eng.pdf.

None

UMC  has  designated  a  specific  contact  window  (ir@umc.com)  and  included  an  Investor  Relations  section  on  the 
Stakeholder Contacts of the Company’s website to deal with shareholders’ suggestions, doubts, disputes and litigations. 
Please refer to the Company’s website for stakeholders’ contact: https://www.umc.com/en/Html/stakeholder_contacts.

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

None

None

None

None

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

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”).

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

UMC  has  established  the  Policy  for  Nomination  and  Election  of  Directors  that  takes  into  account  the  Company’s 
organizational culture, business model and long-term development, and also established criteria to ensure the diversity 
of the Board members. The UMC Board of Directors comprises of 8 members, including 4 seats for independent directors 
and 1 for a non-executive director; 3 serve as administrative directors. More than half of the director seats are filled 
by  members  of  outside  companies.  There  is  1  seat  currently  reserved  for  a  female  director.  Based  on  our  policy  of 
gender equality, UMC will increase the female director seats progressively. The tenures of independent directors are also 
diversified; there is 1 director that has served for 12 years, 1 director for 6 years and 2 directors for 3 years. The Board 
of UMC is composed of members with diversified backgrounds of industry, government and academy. The experiences 
of Board members include the president of national university, academician of Academia Sinica, the Minister of Science 
and Technology, the president of ITRI, financial experts in finance, accounting and strategy management fields, and 
professionals from the semiconductor industry and ICT business administration. The directors satisfy basic criteria and 
professionalism requirements, and through activities of the sub-committees, can also contribute their experiences to 
supervise and govern issues related to corporate governance, environmental sustainability, corporate social responsibility, 
legal compliance and human rights protection. 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: https://www.umc.com/en/IR_Director/directors_information.

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 one 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  UMC’s  website  at  https://www.umc.com/en/Html/
capital_budget_committee and https://www.umc.com/en/Html/nominating_committee.

None

43

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? 

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  affairs  (including  but  not  limited  to  providing  information  for  
legal  compliance,  handling  matters  
relating  to  board  meetings  and  shareholders  meetings  according  to  laws,  producing  minutes  of  board  meetings  and  shareholders  

functions,  assisting  directors  and  supervisors  with 

  directors  and  supervisors 

to  perform 

their 

  meetings)?

44

United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
 
 
 
 
 
 
 
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 individual board members’  

None

performance. 
In 2020, 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 24,  
2021. The performance result was “Excellent.” For a new director, the board provides proper orientation to enable him or  
her to understand his or her duties and to familiarize him or her with the Company’s operation and environment.

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. After the first performance evaluation conducted by an  
external assessment institution in 2018, the Company re-engaged with an external assessment institution to implement  
performance  evaluation  of  the  Board  of  Directors  in  2020.  Please  refer  to  the  Company’s  website  for  “The  Rules  for  

  Performance Evaluation of the Board of Directors”: https://www.umc.com/en/IR_Director/directors_information.

The Company’s Directors’ Compensation is regulated in the Company’s Articles of Incorporation. The Company shall  
allocate no more than 0.2% of profit as directors’ compensation for each profitable fiscal year, and 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 is evaluated by the Board of Directors. The evaluation results of the most recent two years were completed on 
February 26, 2020 and February 24, 2021. The evaluation items are as follows:  
A. Auditor Independence Declaration.
B.  All audit and non-audit services provided by independent auditors are first reviewed by the Audit Committee to ensure that  
  non-audit services do not influence audit outcome.
C. The same independent auditor has not performed audit services for more than five consecutive 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, and  
  external auditors’ experience as well as the communication and interaction between external auditors, management and  
internal  audit  supervisors.  The  external  auditor  and  the  Audit  Committee  should  have  regular  communication  and  
interaction.  Whether  UMC’s  independent  directors  and  relevant  senior  executives  are  independent  from  the  external  
  auditor. The Company does not appoint any individual who have served as an auditor in an accounting firm as a senior  

financial supervisor or who has the authority to make major decisions, or if there are any legal proceedings, etc.

Upon nomination by the Nominating Committee of UMC, the Board of Directors appointed Mr. Chitung Liu, the Senior Vice 
President and CFO of UMC, as the Chief Corporate Governance Officer on March 6, 2019. The position is accountable for 
corporate  governance  matters,  including  preparation  and  execution  of  agenda  and  matters  relating  to  the  Shareholders’ 
Meeting, the Board, Audit Committee, Remuneration Committee, Capital Budget Committee and Nominating Committee, 
assistance in fulfilling requests by directors to perform duties and provide information, and is also responsible for ensuring 
legal compliance of the Board, promoting communication and dialogue between the management team and the directors, 
and among the board members, and communicating with the independent directors on corporate governance-related affairs 
on a regular basis every year. The Chief Corporate Governance Officer has been in a managerial position for at least three 
years in a public company in handling financial and stock affairs, and completed professional training in accordance with 
laws and regulations.

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

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

Yes

No

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

7.  Information Disclosure

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

(2)  Does  the  company  have  other  information  disclosure  channels  (e.g.  building  an  English  website,  appointing  designated  people  to  handle  

information collection and disclosure, creating a spokesman  system, webcasting investor conferences)?

(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 governance practices (e.g., including but not  
limited  to  employee  rights,  employee  wellness,  investor  relations,  supplier  relations,  rights  of  stakeholders,  directors’  and  supervisors’  training  
records, the implementation of risk management policies and risk evaluation measures, the implementation of customer relations policies, and  

  purchasing insurance for directors and supervisors)?

9. Please explain the improvements which have been made in accordance with the results of the Corporate Governance Evaluation System released by the Corporate  
  Governance Center, Taiwan Stock Exchange, and provide the priority enhancement measures.

46

United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
 
 
 
 
Implementation Status

Abstract Explanation

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

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 discloses relevant stakeholder communication 
information through the annual Corporate Social Responsibility Report and UMC’s website, and at the same time reports key 
stakeholder concerns and countermeasures at Board meetings.

None

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

None

None

None

None

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: https://www.umc.com/en/IR/ir_overview.

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: https://www.umc.com.

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  2020  annual  financial  report  was 
completed on February 24, 2021.

(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  Continuing  Education/Training  of  Directors, 
please refer to pages 48-50 of this annual report.  

(2) Board  meeting  attendance:  Please  refer  to  Page  37-41  on  Board  of  Directors  Operations  and  Audit  Committee 
  Operations, and Page 57-59 on Remuneration Committee Operations in this annual report.
(3) Risk  management  policies  and  risk  measurement  standards  implementation:  Please  refer  to  Page  145  on  Risk 
   Management and Evaluation in this annual report.
(4) Customer policy implementation: Please refer to Page 128 on Overview of Market, Production, and Sales in this annual  
report  and  the  Corporate  Social  Responsibility  Report  on  the  UMC  website  at  https://www.umc.com/en/Download/ 
corporate_sustainability_reports. 

(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 https://www.umc. 
com/en/Download/corporate_sustainability_reports.

(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  2020  and  was  
reported during the last Board Meeting.  

(7) UMC website for corporate governance policies and implementation: https://www.umc.com/en/Html/ir_corporate_ 

governance.

UMC was in the top 5% of rankings in “Corporate Governance Evaluation” for six consecutive years since 2015. To implement corporate governance and enhance the 
Company’s board functions, 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  are  established  by  the  Nominating  Committee.  To  improve  information  transparency,  the 
Company announces its financial reports within two months after the end of the fiscal year.

47

Corporate Governance Report 
 
 
 
 
 
 
 
 
Continuing Education/Training of Directors in 2020:

Title

Name

Study Period

Sponsoring 
Organization

Course

Chairman

Stan Hung

2020.07.24

2020.07.24

From

To

2020.10.27

2020.10.27

2020.11.25

2020.11.25

Independent 
Director

Cheng-Li 
Huang

2020.09.21

2020.09.21

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

INDEPENDENT 
DIRECTOR ASSOCIATION 
TAIWAN

The Development Trend, Model 
and Practice of Corporate 
Governance and Corporate 
Social Responsibility

The Strategy and Tool 
Application of Employee Reward

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

The Trend, Impact and Adaptive 
Strategy of U.S.-China Trade 
War and Global Change

TAIWAN STOCK 
EXCHANGE 
CORPORATION

Corporate Governance 3.0 
-Sustainable Development 
Roadmap Forum

2020.09.22

2020.09.22

TAIWAN INSTITUTE OF 
DIRECTORS

2020.09.24

2020.09.24

SECURITIES & FUTURES 
INSTITUTE

KPMG Leadership Institute 
Forum: Response of Upheaval 
Risk and Enhancement of 
Corporate Governance

Insider Trading Prevention and 
Insider Equity Trading Advocacy 
Meeting in 2020

2020.11.25

2020.11.25

Independent 
Director

Wenyi Chu

2020.10.16

2020.10.16

2020.11.25

2020.11.25

Independent 
Director

Lih J. Chen

2020.09.11

2020.09.11

2020.11.25

2020.11.25

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

The Trend, Impact and Adaptive 
Strategy of U.S.-China Trade 
War and Global Change

TAIWAN STOCK 
EXCHANGE 
CORPORATION

2020 Corporate Governance 
and Anti-corruption Seminar

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

The Trend, Impact and Adaptive 
Strategy of U.S.-China Trade 
War and Global Change

SECURITIES & FUTURES 
INSTITUTE

Insider Trading Prevention and 
Insider Equity Trading Advocacy 
Meeting in 2020

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

The Trend, Impact and Adaptive 
Strategy of U.S.-China Trade 
War and Global Change

Training 
Hours

Compliance 
with 
Regulations 
(Note)

3

3

3

3

3

3

3

3

3

3

3

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

48

United Microelectronics Corporation  |  Annual Report 2020Continuing Education/Training of Directors in 2020:

Title

Name

Study Period

Independent Director

Jyuo-Min 
Shyu

From

To

2020.03.24

2020.03.24

Sponsoring 
Organization

Course

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

The Introduction of Ethical 
Corporate Management 
Best Practice Principles 
for TWSE/GTSM Listed 
Companies and ISO 37001 
Anti-bribery management 
systems

The Impact of COVID-19 
on the Economy, Trade 
and Industry and its future 
prospects

2020.05.12

2020.05.12

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

2020.08.18

2020.08.18

TAIWAN INSTITUTE OF 
DIRECTORS

Corporate Transformation 
in Revolution Age

2020.09.21

2020.09.21

2020.11.25

2020.11.25

Director

Ting-Yu Lin

2020.09.24

2020.09.24

2020.11.25

2020.11.25

TAIWAN STOCK 
EXCHANGE 
CORPORATION

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

SECURITIES & FUTURES 
INSTITUTE

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

Corporate Governance 3.0 
-Sustainable Development 
Roadmap Forum

The Trend, Impact and 
Adaptive Strategy of 
U.S.-China Trade War and 
Global Change

Insider Trading Prevention 
and Insider Equity Trading 
Advocacy Meeting in 2020

The Trend, Impact and 
Adaptive Strategy of 
U.S.-China Trade War and 
Global Change

Training 
Hours

Compliance 
with 
Regulations 
(Note)

1.5

Yes

1.5

Yes

3

3

3

3

3

Yes

Yes

Yes

Yes

Yes

49

Corporate Governance ReportContinuing Education/Training of Directors in 2020:

Title

Name

Study Period

Sponsoring 
Organization

Course

Representative 
of Juristic-Person 
Director

Representative 
of Juristic-Person 
Director

From

To

SC Chien

2020.09.11

2020.09.11

SECURITIES & FUTURES 
INSTITUTE

2020.11.25

2020.11.25

Jason Wang

2020.07.24

2020.07.24

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

Insider Trading Prevention 
and Insider Equity Trading 
Advocacy Meeting in 2020

The Trend, Impact and 
Adaptive Strategy of 
U.S.-China Trade War and 
Global Change

The Development Trend, 
Model and Practice of 
Corporate Governance 
and Corporate Social 
Responsibility

2020.10.27

2020.10.27

INDEPENDENT 
DIRECTOR ASSOCIATION 
TAIWAN

The Strategy and Tool 
Application of Employee 
Reward

Former Director

Chung 
Laung Liu

2020.04.28

2020.04.28

2020.07.24

2020.07.24

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

Adaptive Strategy of 
Corporate Restructuring

The Development Trend, 
Model and Practice of 
Corporate Governance 
and Corporate Social 
Responsibility

Training 
Hours

Compliance 
with 
Regulations 
(Note)

3

3

3

3

3

3

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.”

50

United Microelectronics Corporation  |  Annual Report 2020 
Continuing Education/Training of Managers in 2020:

Title

Name

Course Date

Organizer

Course Title

Course Hours

Senior Vice President & 
Chief Financial Officer

Chitung Liu

2020.01.14

2020.01.16

2020.04.28

2020.06.16

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

The Competent Authority Requires the 
Establishment of“Corporate Governance Director/
Personnel”Practice Analysis

Corporate Governance Practices: The Impact and 
Response of the Newly Released“Labor Litigation 
Act”on Companies

Enhancing the Self-Editing Ability of Financial 
Reports: Internal Control, Internal Audit and 
Information Technology

Common Corporate Governance Deficiencies and 
Related Laws and Regulations

3

3

3

3

President

Executive Vice 
President 

Vice President

Vice President

Vice President

Vice President  & Chief 
Human Resources 
Officer

SC Chien

Ming Hsu

M C Lai

SR Sheu

Mindy Lin

Eric Chen

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

Victor Chuang

Chuck Chen

Le Tien Jung

Yau Kae Sheu

J Y Wu

Osbert Cheng

Remi Yu

Michael CY 
Wang

Ji Fu Kung

C P Yen

Pang Min Wang

Ray Yang

2020.07.03

UNITED 
MICROELECTRONICS 
CORP.

【2020 Master Forum】Global Economic Trends: 
Populism, COVID-19 and Negative Interest Rates

1.5

51

Corporate Governance ReportContinuing Education/Training of Managers in 2020:

Title

President

President

Executive Vice 
President

Name

Course Date

Organizer

Course Title

Course Hours

SC Chien

Jason Wang

Ming Hsu

UNITED 
MICROELECTRONICS 
CORP.

【Legal Course】 Introduction of Trade Secrets 
Act

2

Senior Vice President

Oliver Chang

Senior Vice President & 
Chief Financial Officer

Chitung Liu

Vice President

TS Wu

Vice President

G C Hung

Vice President

Jerry CJ Hu

Vice President

Vice President

Vice President

SR Sheu

M L Liao

S S Hong

Vice President

Francia Hsu

Vice President

Vice President  & Chief 
Human Resources 
Officer

Mindy Lin

Eric Chen

Victor Chuang

Chuck Chen

2020.07.07

S F Tzou

Le Tien Jung

Yau Kae Sheu

J Y Wu

Steven Hsu

Yanan Mou

Remi Yu

Michael CY Wang

Ji Fu Kung

C P Yen

Pang Min Wang

Ray Yang

C Y Hsu

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

Former Associate 
Vice President

52

United Microelectronics Corporation  |  Annual Report 2020Continuing Education/Training of Managers in 2020:

Title

Vice President

Vice President  

Name

TS Wu

M C Lai

Vice President

Jerry CJ Hu

Vice President

Vice President  & Chief 
Human Resources 
Officer

Mindy Lin

Eric Chen

Associate  
Vice President

Associate  
Vice President

Associate  
Vice President

Associate  
Vice President

Associate  
Vice President

Associate  
Vice President

Associate  
Vice President

Associate  
Vice President

Chairman & Chief 
Strategic Officer

President

President

Executive  
Vice President

Victor Chuang

Chuck Chen

S F Tzou

J Y Wu

Osbert Cheng

Michael CY 
Wang

Pang Min Wang

Ray Yang

Stan Hung

SC Chien

Jason Wang

Ming Hsu

Senior Vice President

Oliver Chang

Senior Vice President & 
Chief Financial Officer

Chitung Liu

Vice President

Vice President

Vice President

Vice President

TS Wu

G C Hung

Wenchi Ting

Jerry CJ Hu

Vice President

Y S Shen

Vice President

Steven S Liu

Vice President

Vice President

Vice President

Vice President  & Chief 
Human Resources 
Officer

M L Liao

S S Hong

Mindy Lin

Eric Chen

Course Date

Organizer

Course Title

Course Hours

2020.08.07 
2020.08.14

UNITED 
MICROELECTRONICS 
CORP.

【Executive Program】Financial-Driven Capital 
Budgeting and Management Decision Quality

4

2020.11.25

UNITED 
MICROELECTRONICS 
CORP.

China-US Economic and Trade Confrontation and 
Global Changes: Trends and Impact Strategies

3

53

Corporate Governance ReportContinuing Education/Training of Managers in 2020:

Name

Course Date

Organizer

Course Title

Course Hours

SC Chien

Jason Wang

Ming Hsu

Oliver Chang

TS Wu

M C Lai

Wenchi Ting

Jerry CJ Hu

SR Sheu

M L Liao

Mindy Lin

Victor Chuang

Chuck Chen

S F Tzou

Yau Kae Sheu

Osbert Cheng

Steven Hsu

Remi Yu

Michael CY Wang

Ji Fu Kung

Pang Min Wang

Ray Yang

Louis Hsieh

2020.12.01 

UNITED 
MICROELECTRONICS 
CORP.

【2020 Master Forum】Business Changes and 
Challenges in the Next Ten Years

1.5

Title

President

President

Executive Vice 
President

Senior Vice  
President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

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

54

United Microelectronics Corporation  |  Annual Report 2020Continuing Education/Training of Managers in 2020:

Title

Name

Course Date

Organizer

Course Title

Course Hours

Senior Vice President

Oliver Chang

Senior Vice President & 
Chief Financial Officer

Chitung Liu

Vice President

TS Wu

Vice President

Jerry CJ Hu

Vice President

Vice President

SR Sheu

M L Liao

Vice President

Francia Hsu

Vice President  &  
Chief Human 
Resources Officer

Eric Chen

Associate  
Vice President

Associate  
Vice President

Associate  
Vice President

Associate  
Vice President

Associate  
Vice President

Associate  
Vice President

Associate  
Vice President

Victor Chuang

Chuck Chen

Le Tien Jung

Osbert Cheng

Remi Yu

Pang Min Wang

Ray Yang

2020.12.02

UNITED 
MICROELECTRONICS 
CORP.

Three lines of Defense of Internal Control and 
Practical Case Sharing

2

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 2020. The senior executive courses are as follows:

	 【2020 Master Forum】A total of two sessions were held, with a total of 166 supervisors participating, and a course satisfaction rating of 92.8%.
	 【Executive Program】A total of two sessions were held, with a total of 59 supervisors participating, and a course satisfaction rating of 92.9%.

55

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 can 

inquire about and download Corporate Governance related information from: https://www.umc.com/en/Html/ir_corporate_governance. For corporate 

governance implementation status, please refer to pages 37-92 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: https://www.umc.com/en/Download/major_internal_policies.

56

United Microelectronics Corporation  |  Annual Report 2020Information on the Members of the Remuneration Committee

Status 

Name/
Condition

Has at Least 5 Years of Work Experience and the 
Following Professional Qualifications

Meet Criteria of Independence  
(Note)

1

2 3 4 5 6 7 8 9 10

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

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

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

Yes

Yes

Yes

Yes

Yes

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

0

0

0

1

Note:  For those members who match the condition listed below during and two years before the 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 column (1) or any person specified  

in columns (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 among 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 regulations 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.

57

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 convened 5 Remuneration Committee meetings in 2020 with the following attendance:

Title

Name 

Number of 
Actual
Attendance

Number of Proxy
Attendance

Rate of Actual
Attendance (%) 

Note

Independent 
Director

Independent 
Director

Independent 
Director

Independent 
Director

Wenyi Chu

Cheng-Li Huang

Lih J. Chen

Jyuo-Min Shyu

4

5

5

5

1

0

0

0

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

80.00

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 2020:

Date/ Meeting

Proposal 

Resolution

February 26, 2020,
The 6th meeting of
the 4th session

April 27, 2020,
The 7th meeting of the 
4th session

1.  Directors’ 2019 remuneration
2. Review  the  structure  of  management  team’s  
  compensation  and  performance  evaluation  
  system,  and  also  propose  the  management  

team’s compensation.

3. Revise the Remuneration Committee Charter.

1.  Revise UMC Corporate Governance statement.

June 17, 2020,
The 8th meeting of the 
4th session

1.  Management team’s 2020 salary review
2. Proposal of management team’s compensation  
  structure

Approved by all 
members present  
in the meeting.

Approved by all 
members present  
in the meeting.

Approved by all 
members present  
in the meeting.

58

The Company's Handling of the Opinions of 
the Remuneration Committee

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.

United Microelectronics Corporation  |  Annual Report 2020 
 
 
Date/ Meeting

Proposal 

Resolution

July 29, 2020,
The 9th meeting of the 
4th session

September 2, 2020,
The 10th meeting of the 
4th session

1.  Proposal of the management team’s  
  compensation

1.  Proposal of the management team’s  
  compensation

Approved by all 
members present  
in the meeting.

Approved by all 
members present  
in the meeting.

The Company's Handling of the Opinions of 
the Remuneration Committee

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.

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 include: 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 corporate sustainability strategies, 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 2020. 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

1

2

0

0

1

0

100.00

100.00

50.00

  Joined the meeting through conference call

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 Nominating Committee in 2020:
  Meeting on February 26, 2020

(1) Approved the Company’s Policy and Procedures of Risk Management.

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

59

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

Evaluation Item

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

Yes

No

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?

60

United Microelectronics Corporation  |  Annual Report 2020Deviations from “The Corporate 
Governance Best-Practice 
Principles for TWSE/TPEx Listed 
Companies” and Reasons

None

None

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, and reviews and updates relevant standard 
operating procedures to ensure the effectiveness of risk management.
For related risks (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  representative  reports  promotion  outcome  and  plans,  and  key  stakeholder  issues  and 
countermeasures to the Board of Directors annually. 
The  Corporate  Sustainability  Committee  comprises  of  seven  sub-committees,  namely  the  Corporate  Governance 
Committee, Customer Relationship Management Committee, Supplier Management Committee, Innovation Technology 
Committee,  Human  Rights  and  Social  Participation  Committee,  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 Science and Culture 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 to  
  enhance sustainable competitiveness.
•  Green Manufacturing Committee 
  Promotes  company-wide  green  processes,  such  as  hazardous  materials  management  and  increases  in  resource  
  productivity.

61

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

Evaluation Item

3. Environmental Issues

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

Yes

No

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

environment?

62

United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
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 in to 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 technologies 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. Packaging materials with low  
  environmental impact are used as often as possible. 
•  Resource Recycling and Reuse Research
  UMC prioritizes the reuse of recycled output waste, and continuously evaluates and introduces new technologies for  
reuse. UMC collaborates with qualified recycling vendors in applying for numerous recycling projects, and makes on- 
  site improvements (such as changing liquid waste pipelines and segregated collection) to increase the types of recyclable  
  waste.

63

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

Evaluation Item

(3)  Does the company evaluate the potential risks 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 reasonable employee welfare measures (including salary remuneration policy, regulations for  

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

64

United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
 
 
 
 
 
 
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 the green technology industry
• Greenhouse gas emission reduction goals
  1. (2013-2025)
    Reduce fluorinated greenhouse gas emissions intensity by 65%.
    Note: 2010 is the base year.
  2. (2016-2025)
    Reduce electricity consumption intensity by 15% in ten years. 
    Note: 2015 is the 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. 

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  policies  and  specific  management  plans.  For 
related information, please refer to the UMC website at https://www.umc.com/en/Html/UMC_code_of_conduct.

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  leaves,  minimum  wage,  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

65

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

66

United Microelectronics Corporation  |  Annual Report 2020 
 
 
Deviations from “The Corporate 
Governance Best-Practice 
Principles for TWSE/TPEx Listed 
Companies” and Reasons

None

Implementation Status

Abstract Explanation

The safety and health education and training at UMC are divided into three categories depending on the nature 
of the work:
•  General safety and health education and training for the entire company 
•  Factory area safety and health education and training organized by each fab 
•  Safety and health education and training formulated by each department depending on its characteristics 
“Safety First; Safety is Above Production!” is UMC’s commitment to its employees, and is also the basis for UMC 
to carry out the planning and implementation of necessary safety and health education and training for its work 
and hazard prevention operations. Based on the organizational structure of UMC, the general training courses 
for the entire company; the factory area training courses for each fab; and the specific training courses for each 
department  were  formulated,  allowing  employees  to  develop  a  safety  culture,  raising  their  awareness  in  work 
safety,  and  reducing  accidents  caused  by  unsafe  behaviors.  In  addition  to  the  planned  courses,  topic-based 
training courses for specific events or major cases are also conducted on a rolling basis from time to time. For 
instance, the “executive safety culture seminars” for senior executives, the “supervisor safety awareness courses” 
for specific departments, and the professional trainings carried out by external occupational safety and health 
experts and scholars for UMC’s occupational safety and health management personnel were organized in 2020. 
In 2020, a total of 2,082 sessions of education and training were conducted, with 38,776 participants completing 
the training. The offered education and training also include e-learning courses, allowing employees to acquire 
safety and health knowledge without being limited by the schedule of the physical courses.
In  the spirit  of “Benefit  from Society, Give Back to Society,” UMC actively promotes healthy workplace-related 
activities. In 2020, UMC promoted a healthy workplace lifestyle themed “2020 Health Care 2.0.”
1.  The themed health promoting activities attracted 21,296 participants, and overall satisfaction rate was 95%. 
  Specifically, Q1 Spring - Epidemic Prevention Class 

In response to the spread of the COVID-19 epidemic, on-site activities in the first quarter have been cancelled  
and  changed  to  online.  At  the  same  time,  considering  the  severity  of  the  epidemic,  in  order  to  strengthen  
colleagues’  understanding  of  the  Company’s  epidemic  prevention  policies,  the  online  e-Check  “Epidemic  
  Prevention  Class”  questionnaire  filling  activity  was  conducted  to  strengthen  employees’  correct  concept  of  

epidemic prevention.

  A total of 5,965 colleagues participated in the event, and a total of 5,677 colleagues who answered the correct  
answers were drawn to obtain small epidemic prevention gifts (multifunctional mask storage clips) and a total of  
1,000 gifts were issued.
  Q2 Summer – Family Care

The  epidemic  has  slowed  and  continued  to  implement  a  new  life  for  epidemic  prevention.  UMC  invited  
authoritative  medical  doctors  from  the  National  Taiwan  University  Zhudong  Hospital  to  give  a  speech  and  
teach UMC colleagues  how to take care of their parents with the greatest peace of mind, so as to improve  
the quality of health and living  at home. A total of 172 people participated, with an average total satisfaction  
score of 90.2.

  Q3 Autumn- Weight Loss and Fat Loss 

The “Weight Loss and Fat Loss Campaign” is aimed at the health check-up groups concerned for health care  
activities (BMI greater than 24) and the target physical check-up improvement rate is 5%. A total of 179 colleagues  
participated in the weight loss class, reaching a weight loss rate of ≥ 5%; a total weight loss of 266.5 kg, and an  
achievement rate of about 14.5%.

  A total of 150 people participated in the “Daily Ten Thousand Steps of Healthy Good Habit Activity” and 47 people  
reached the standard; the total number of days reached was 3,019, the achievement rate was about 31.1%. A total  
of 329 people participated in the third quarter activities.

  Q4 Winter - Heart and Liver Defense
  A total of 7,393 people participated in the reading activities on the “Health Information U-info” platform; a total of  
14,373 people participated in the reading activities, 2,202 people clocked in from July to September, and the on- 
the-job participation rate was 56.1%.
“Health Seminar U-Class” theme “Chinese Medicine” Autumn Health Post and “Western Medicine” Cancer Gene  
  Decryption; a total of 457 employees participated and a satisfaction score of 96.2 was achieved. A total of 14,830  

people overall participated.

2.  3,829 utilized massage services by visually impaired masseurs 
3.  3,568 consulted with in-house physicians
4.  456 donated blood, totaling 722 bags of blood
5.  727 received abdominal ultrasound exam, and satisfaction rate was 96.5% 
6.  582 received flu vaccinations, and satisfaction rate was 98%
7.  A total of 440 training courses for emergency personnel were conducted, and the training rate was 100%.
8.  There were 412 injuries and illnesses and emergency notifications.
9.  There were 1,018 new medical examinations.
10. There were 262 high-level health examinations.
11. Administrative services (group health insurance) totaled 2,585 occasions

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

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,  safety,  privacy,  advertise  

and label of goods and services and establish consumer protection policy?

68

United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
Implementation Status

Abstract Explanation

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

•  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 health 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  and  integrate  the  “health  care  system,”  
thereby achieving 100% care rate.
1. In 2020, a total of 3,269 employees in the Company received physical checkup, and satisfaction rate was  
   93.8%. 
2.  Health  examination  reports  and  questionnaire  outcomes  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 2020, a total of 310 individuals received the free counseling  
service and 114 individuals received paid services. 
In 2020, 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  2020,  the  UT  site  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  

  well-being.

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  commits  to  continuously  strengthen  world-class  process  technology,  manufacturing  capability,  and  excellent 
service to enhance customer service value. Since the beginning, UMC always valued customers as partners and creates 
an exceptional business philosophy based on the spirit of “United for Excellence.” UMC works closely with customers 
to  achieve  win-win  mission  and  goals,  hence  rendering  customer  satisfaction  as  one  of  the  core  company’s  values. 
Customer-oriented behavior is to provide total solutions from a customer perspective to realize and satisfy customer 
requirements for product and service quality. To achieve this end, UMC has introduced the MyUMC, MyHJTC (for HJ 
only) and MyUSC (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 analyze product data as needed. 
In  addition  to  providing  customers  with  information  on  the  process  materials  for  their  products  through  the  MyUMC, 
MyHJTC,  MyUSC  and  MyUSJC  online  service  platforms,  UMC  has  also  incorporated  the  Voice  of  Customer  (VOC) 
instant  online  complaint  system  within  the  MyUMC,  MyHJTC,  MyUSC  and  MyUSJC  service  platforms  for  customers 
to easily access. This interface allows customers to make requests, comments or suggestions about the Company’s 
products  or  services  at  any  time.  The  system  replies  to  the  customer  within  one  working  day  regarding  when  their 
request has been processed by the corresponding division. A dedicated person 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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Corporate Governance Report 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Social Responsibility and Deviations from “The Corporate Governance Best-Practice Principles for TWSE/
TPEx Listed Companies” (Continue)

Evaluation Item

Yes

No

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United Microelectronics Corporation  |  Annual Report 2020 
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 a 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  continuous  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 Listed Companies” (Continue)

Evaluation Item

Yes

No

(6)  Does  the  company  establish  a  supplier  management  policy  and  ask  to  comply  with  regulations  about  environmental  protection,  

labor and human rights, safety, and health?

5. Does the company prepare a Social Responsibility Report that complies with international guidelines 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: 

72

United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
 
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 document 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 challenge more difficult targets in technology development and production, 
and share win-win results with customers.
UMC is certified with ISO 9001 & IATF 16949 & QC-080000 IECQ HSPM international standards. 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 role as a responsible 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 
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 outcome are offered audit counseling for improvement, and in the case 
of severe issues, procurement or status as qualified suppliers are terminated.
UMC achieved fruitful results in the implementation of its sustainable management strategy 2020. We have been listed 
on the “DJSI-World” of the Dow Jones Sustainability Indices (DJSI) for 13 consecutive years, keeping pace with the 
world’s top companies. In Taiwan, we continue to receive the greatest honor of being selected for the “FTSE4Good TIP 
Taiwan ESG Index” and winning the “Taiwan Corporate Sustainability Report Award” every year. Moreover, we continue 
to cultivate the aspects of “environment, society and governance,” and have attracted tremendous external recognition.

None

As of 2020, UMC has publicly issued a non-financial related sustainability annual report for 20 consecutive years. At the 
same time, the 2019 UMC Corporate Social Responsibility Report is the 15th 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 2021, UMC will compile the 2020 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.

None

For details of the Corporate Social Responsibility Practice Principles formulated by UMC, please refer to https://www.umc.com/en/Download/major_internal_policies 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  https://www.umc.com/en/CSR/
sustainability_overview on the UMC website.

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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 of Directors to be in charge of corporate  

integrity, implementation, and regularly report to the Board, 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  risk  of  involvement  in  unethical  conduct  to  examine  accordingly  the  
compliance with the prevention programs? Or engage CPAs to carry out the audit?

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

74

United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 https://www.umc.com/en/Html/ir_corporate_governance and https://www.umc.com/en/Html/UMC_code_of_conduct.

The Employee Code of Conduct and the UMC Ethical Corporate Management Best Practice Principles 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. (Report Date is Oct. 29, 2020.) Ethical management is only 
one part of corporate sustainability. For further information, please refer to UMC website at  https://www.umc.com/en/
Html/UMC_code_of_conduct. 

Please refer to Pages 81-85 of the Employee Code of Conduct for policies and reporting channels.

In  order  to  facilitate  ethical  corporate  management  and  issue  a  reliable,  transparent  and  compliant  report,  UMC 
established an effective accounting system and designed relevant internal control systems based on evaluation results 
of risks including unethical conduct, code of conduct and regulations compliance. UMC Audit Division directly under the 
Board of Directors/Audit Committee performs relevant operation audits according to annual audit plans and regularly 
reports  the  audit  results  and  improvement  follow-up  to  the  Board  of  Directors/Audit  Committee.  And  through  annual 
internal  control  and  self-assessment,  UMC  has  also  conducted  a  self-review  of  all  fab,  department  and  subsidiary 
operations to achieve the effectiveness of internal control systems’ design and implementation.
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 2020, UMC fabs in Taiwan and Singapore have completed the training courses and passed relevant tests.

None

None

None

None

None

None

None

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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

Yes

No

(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?

(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 its 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). 

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United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
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 the investigation results are confirmed, 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 81-85 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 81-85 of the Employee Code of Conduct.

None

UMC discloses its principles on ethical corporate management, relevant regulations and status of implementation 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 81-85 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 https://www.umc.com/en/CSR/sustainability_overview on the UMC website.

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TPEx Listed Companies” (Continue)

Specific Measures for Ethical Management in 2019-2020

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 and Compliance Division, and other regulations are regularly  
  reviewed by relevant divisions.
•  In  2019,  the  Legal  and  Compliance  Division  coordinated  overall  regulatory  compliance  with  the  EU  General  Data  Protection  
  Regulation.
•  With respect to the frequent rule changes of the Export Administration Regulations of the United States in 2020 and in the future,  

the Legal and Compliance Division coordinate overall legal compliance in this regard.

•  Legal and Compliance Division expects China will in the near future enact new export control related laws and/or regulations  
to counteract the rule changes to the Export Administration Regulations of the United States, and will coordinate overall legal  

  compliance in this regard.
•  In  2020,  the  Legal  and  Compliance  Division  conducted  trainings  for  insider  trading  targeting  all  employees,  managers  and  
  executives.

•  The content of the Codes is reviewed biennially: 
  1.  Review of the Employee Code of Conduct was completed in February 2020.
  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 2020, no major ethical violations  
  were reported.
•  Employee Code of Conduct education and testing were conducted in July 2020, with 100% completion rate.
•  Employee  Code  of  Conduct  training  course  for  new  employees:  224  participants  and  a  total  of  336  hours  in  2019;  and  305   
  participants and a total of 457.5 hours in 2020.

•  Litigation cases in each quarter of 2020 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 December 2020.
•  For  intellectual  property  rights  education,  three  weekly  training  courses  are  offered  to  new  employees:  Introduction  to  UMC  
Intellectual Property Rights, Trade Secret and Basic Legal and Risk Awareness for Incoming Data. In the first half of 2019 we  
  conducted in-depth advocacy of protection of intellectual property rights via the eUMC intranet site for all employees and the  
  Company will maintain such advocacy through electronic checks or a dedicated compliance column.
•  Introduction to UMC Intellectual Property Rights training course for new employees: 285 participants and a total of 71.3 hours in  
  2019; and 797 participants and a total of 199.3 hours in 2020.
•  Trade Secrets training course for new employees: separate from UMC Intellectual Property Rights as an individual course since  
  December 2018 with 285 participants and a total of 45.6 hours in 2019; and 797 participants and a total of 127.5 hours in 2020.
•  Basic Legal and Risk Awareness for Incoming Data training course for new employees: implemented since April 2018. A total of  
  285 participants and a total of 71.3 hours in 2019; and 797 participants and a total of 199.3 hours in 2020. 

Financial reporting related internal 
control 

•  Annual audit by external auditors and internal Audit Division.
•  Results of internal audits for 2020 were reported at the Audit Committee/Board of Directors meetings on a quarterly basis.

78

United Microelectronics Corporation  |  Annual Report 2020 
 
 
Code of Ethics for Directors and Officers

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

  by the Chairman of the Board or as part of an approved compensation  

Corporation (the “Company”) has adopted the following Code of Ethics 

  or expense reimbursement program.

(the “Code”) for directors and officers of the Company. This Code applies 

2. Corporate opportunities.

to all directors and officers. 

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

personal  opportunities  that  are  discovered  through  the  use  of  the 

No code or policy can anticipate every situation that may arise. Accordingly, 

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

this  Code  is  intended  to  serve  as  a  source  of  guiding  principles  for 

property, information, or position for personal gain; or (c) competing with 

directors  and  officers.  Directors  and  officers  are  encouraged  to  bring 

the Company. 

questions about particular circumstances that may involve one or more of 

3. Corporate assets; confidentiality.

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

Directors and officers are expected to protect the assets of the Company 

who may consult with inside or outside legal counsel as appropriate.

and use them efficiently to advance the interests of the Company. Those 

assets  include  tangible  and  intangible  assets,  such  as  confidential 

Directors  who  also  serve  as  officers  of  the  Company  should  read  this 

Company  information.  Directors  and  officers  should  maintain  the 

Code in conjunction with the Code of Ethics for employees governing the 

confidentiality of information entrusted to them by the Company and any 

business conduct of Company employees.

other  confidential  information  about  the  Company  that  comes  to  them, 

1. Conflict of Interest.

from whatever source in the course of the Company’s business, in their 

Directors  and  officers  must  avoid  any  conflicts  of  interest  between  the 

capacity  as  director  or  officer  except  when  disclosure  is  authorized  or 

director  or  officer  and  the  Company.  Any  situation  that  involves,  or 

legally  mandated.  For  purposes  of  this  Code,  “confidential  information” 

may  reasonably  be  expected  to  involve,  a  conflict  of  interest  with  the 

includes all non-public information relating to the Company, its customers 

Company  should  be  disclosed  promptly  to  the  Chairman  of  the  Board, 

or suppliers.

such as extending a loan to, providing a guarantee of the obligations of, 

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

conducting a material transaction with, selling products to or purchasing 

Appropriate  policies  and  procedures  are  in  place  for  compliance  by 

products from a director or officer (or a member of his or her immediate 
family1).

directors and officers, with laws, rules and regulations applicable to the 

Company, including insider trading laws. Transactions in the Company’s 

A  “conflict  of  interest”  can  occur  when  a  director  or  officer’s  personal 

securities are governed by the Company's policies with respect to trading 

interest is adverse to - or may appear to be adverse to - the interests of 

such securities.

the Company as a whole. Conflicts of interest also arise when a director 

Directors  and  officers  shall  endeavor  to  deal  fairly  with  the  Company's 

or officer, or a member of his or her immediate family, receives improper 

customers,  suppliers,  competitors  and  employees.  No  director  or 

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

officer  should  take  unfair  advantage  of  anyone  through  manipulation, 

of the Company.

concealment,  abuse  of  privileged  information,  misrepresentation  of 

This Code does not attempt to describe all possible conflicts of interest 

material facts, or any other intentional unfair-dealing influence.

that  could  develop.  Some  of  the  more  common  conflicts  from  which 

5. Accurate Reports and other Public Communications.

directors or officers must refrain are set out below:

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

•  Relationship  of  the  Company  with  third  parties.  Directors  or  officers 

of the Company reflect the underlying transactions and any disposition of 

may  not  engage  in  any  conduct  or  activities  that  are  inconsistent  with 

assets in a full, fair, accurate and timely manner. All officers and directors 

the  Company's  best  interests  or  that  disrupt  or  impair  the  Company's 

who  are  involved  in  the  Company’s  disclosure  process  are  required  to 

relationship  with  any  person  or  entity  with  which  the  Company  has  or 

know  and  understand  the  disclosure  requirements  applicable  to  the 

proposes to enter into a business or contractual relationship.

Company  that  are  within  the  scope  of  their  responsibilities,  and  must 

•  Compensation from non-Company sources. Directors or officers may  

endeavor to ensure that information in documents that the Company files 

  not accept compensation (in any form) for services performed for the  

with or submits to the ROC Securities and Futures Bureau and the U.S. 

  Company from any source other than the Company.

Securities and Exchange Commission, or otherwise disclosed to the public, 

•  Gifts.  Directors  or  officers  and  members  of  their  immediate  families  

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

  may  not  accept  gifts  from  persons  or  entities  who  deal  with  the  

Additionally, each individual involved in the preparation of the Company’s 

  Company in those cases where any such gift has more than a nominal  

financial  statements  must  prepare  those  statements  in  accordance 

  value or where acceptance of the gifts could create the appearance of  

with  our  internal  accounting  policies,  which  take  into  account  generally 

  a conflict of interest.

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

•  Personal  use  of  Company  assets.  Directors  or  officers  may  not  use  

SIC, which are endorsed by Financial Supervisory Commission (TIFRSs) 

  Company assets, labor or information for personal use unless approved  

and  relevant  laws  and  regulations  applicable  to  the  Company,  ensure 

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

they are consistently applied, and follow any other applicable accounting 

severity  of  the  violation,  whether  the  violation  appears  to  have  been 

standards and rules so that the financial statements materially, fairly and 

intentional or inadvertent and whether the individual in question had been 

completely reflect the business transactions and financial condition of the 

advised prior to the violation.

Company.

6.  Encouraging the reporting of any illegal or unethical behavior.

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

Directors and officers should promote ethical behavior and take steps to 

and relatives within three degrees of kinship.

ensure the Company:

(a)  encourages  employees  to  talk  to  managers  and  other  appropriate 

personnel when in doubt about the best course of action in a particular 

https://www.umc.com/upload/media/08_Investors/Corporate_

situation;  (b)  encourages  employees  to  report  violations  of  laws,  rules, 

Governance/Major_Internal_Policies/Code_of_Ethics_chi.pdf for the 

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

information shown above.

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

Company will not allow retaliation for reports made in good faith. 

7. Compliance Procedures.

Any  suspected  violations  of  this  Code  should  be  reported  promptly  to 

managers, the internal auditor, the Audit Committee or other personnel as 

appropriate, or in the case of an officer in accordance with the procedures 

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

retaliation  because  of  a  good  faith  report  of  a  suspected  violation. 

Violations  will  be  investigated  by  the  Board  or  by  a  person  or  persons 

designated by the Board. Any waiver of this Code may be made only by 

the Board and the details of the waiver, including name and title of the 

receiving party of the waiver, date of the board meeting when the waiver 

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

principle for granting waiver, will be promptly disclosed to shareholders 

and others, as required by applicable law and the Taiwan Stock Exchange 

listing standards. All requests for waivers or review by the Board should 

be made to one of the Company’s independent directors. 

8. Enforcement of this Code of Ethics

The Board shall determine appropriate actions to be taken in the event 

of violations of this Code and set forth procedure for the person who is 

determined to have violated the Code in the event of disagreement with 

the  determination.  Such  actions  shall  be  reasonably  designed  to  deter 

wrongdoing and to promote accountability for adherence to this Code. In 

determining the proper course of action in a particular case, the Board 

shall take into account all relevant information, including the nature and 

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United Microelectronics Corporation  |  Annual Report 2020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 (NTD 1,000), or any  

cash, or any equivalent in monetary goods, i.e. gift certificates, check, stock certificate and the like.

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

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

the company’s logo.

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

all employees shall refrain from being excessively lavish and refrain from incurring significant or unnecessary expenses.

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Employee Code of Conduct (Continue)

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 Legal and Compliance Level 1 Manager.

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

  Director@umc.com; Legal and Compliance Level 1 Manager :z_Legal@umc.com; or the Audit Committee: Audit_committee@umc. 

  com).

6-2-3.   Report the issue by calling the whistleblowing direct phone line at: 0800-024-399 (toll free) or 03-5782258 ext 31425.

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

  they will immediately notify the ADT Level 1 Manager. Once a whistleblowing report has been received, the Company will assemble an  

  investigation team to conduct a thorough inquiry into the allegations made in the report. More detailed guidelines on reporting processes  

  are set forth in the company’s Whistleblower Program.

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

subsequent  investigations  of  the  violation,  the  company  will  provide  safeguard  measures  ensuring  them  against  any  unfair  retaliation  or  

treatment.

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

of the incident. It is the responsibility of each employee to carefully read, understand and comply with this Code of Conduct and, as needed,  

to  seek  clarification  on  any  point.  Questions  regarding  any  legal  or  ethical  requirements  should  be  directed  to  the  director  of  the  Human  

    Resources or the company’s legal division.

7.  Waivers and amendments:

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

    Code of Conduct for executive officers may be granted only in exceptional circumstances by the board of directors. The company will promptly  

disclose to its shareholders any such waivers granted to any of its executive officers and the reason for such waiver.

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

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

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Employee Code of Conduct (Continue)

(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.

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

outside of the office.

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

for any debatable conduct. Besides being honest themselves, they should lead subordinates in establishing a work environment practicing  

integrity.

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

discover of those violating the Rules of Integrity.

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Employee Code of Conduct (Continue)

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 

https://www.umc.com/upload/media/08_Investors/Corporate_Governance/Major_Internal_Policies/Employee_Code_of_Conduct-e.pdf.

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UMC Ethical Corporate Management Best Practice Principles

Article 1

Article 7

In  order  to  foster  a  corporate  culture  of  ethical  management  and  

  Company  shall  establish  a  risk  assessment  mechanism  against  

sound development , the company is advised to adopt these principles  

unethical conduct, analyze and assess on a regular basis business  

applicable to its subsidiaries and other institutions or juridical persons  

activities  within  their  business  scope  which  are  at  a  higher  risk  of  

  which are substantially controlled by such company.

being  involved  in  unethical  conduct,  and  establish  prevention  

Article 2

programs accordingly and review their adequacy and effectiveness on  

  When  engaging  in  its  commercial  activities,  directors,  managers,  

a regular basis.

employees,  and  agents  or  persons  having  substantial  control  over  

Article 8

such companies ("company personnel") shall not directly or indirectly  

The  company  shall  request  their  directors  and  senior  management  

offer, promise to offer, request or accept any improper benefits, nor  

to issue a statement of compliance with the ethical management policy  

commit  unethical  acts  including  breach  of  ethics,  illegal  acts,  or  

and  require  in  the  terms  of  employment  that  employees  comply  

breach of fiduciary duty ("unethical conduct") for purposes of acquiring  

  with  such  policy.  The  company  clearly  specifies  in  its  rules  and  

or maintaining benefits.

Article 3

external documents the ethical corporate management policies and  

the  commitment  by  the  board  of  directors  and  the  management  on  

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

rigorous  and  thorough  implementation  of  such  policies,  and  carries  

  money,  endowments,  commission,  positions,  services,  preferential  

out the policies in internal management and in commercial activities.  

treatment or rebates of any type or in any name. Benefits received or  

The  company  shall  compile  documented  information  on  the  ethical  

given  occasionally  in  accordance  with  accepted  social  customs  

  management  policy,  statement,  commitment  and  implementation  

and that do not adversely affect specific rights and obligations shall be  

  mentioned  in  the  first  and  second  paragraphs  and  retain  said  

excluded.

Article 4

information properly.

Article 9

The  company  shall  comply  with  the  Company  Act,  Securities  and  

The company engages in commercial activities in a fair and transparent  

Exchange Act, Business Entity Accounting Act, Political Donations Act,  

  manner based on the principle of ethical management.

Anti-Corruption Statute, Government Procurement Act, Act on Recusal  

Prior  to  any  commercial  transactions,  the  company  will  take  into  

of Public Servants Due to Conflicts of Interest, TWSE/GTSM listing  

consideration the legality of their agents, suppliers, clients, or other  

rules, or other laws or regulations regarding commercial activities, as  

trading  counterparties  and  whether  any  of  them  are  involved  in  

the  underlying  basic  premise 

to 

facilitate  ethical  corporate  

unethical  conduct,  and  will  avoid  any  dealings  with  persons  so  

  management.

Article 5

involved.

Article 10

The company shall abide by the operational philosophies of honesty,  

  When  conducting  business,  the  company  and  its  personnel  may  

transparency  and  responsibility,  base  policies  on  the  principle  of  

not directly or indirectly offer, promise to offer, request, or accept any  

good  faith  and  establish  good  corporate  governance,  risk  control  

improper  benefits  in  whatever  form  to  or  from  clients,  agents,  

and management mechanisms to create an operational environment  

contractors, suppliers, public servants, or other stakeholders.

for sustainable development.

Article 6

Article 11

  When  directly  or  indirectly  offering  a  donation  to  political  parties,  

According to its preceding policy, the company shall prescribe specific  

organizations  or  individuals  participating  in  political  activities,  the  

ethical  management  practices  and  programs  to  deter  unethical  

company and its personnel shall comply with the Political Donations  

conduct  ("prevention  programs"),  including  operational  procedures,  

Act and their own relevant internal operational procedures, and shall  

guidelines, and training. 

not  make  such  donations  in  exchange  for  commercial  gains  or  

business advantages.

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UMC Ethical Corporate Management Best Practice Principles (Continue)

Article 12

supervising the implementation of the ethical corporate management  

  When  making  or  offering  donations  and  sponsorship,  the  company  

policies and prevention programs, and report to the board of directors  

and its personnel shall comply with relevant laws and regulations and  

annually.

internal operational procedures, and shall not surreptitiously engage  

Article 18

in bribery.

Article 13

The personnel of the company shall comply with laws and regulations  

and the prevention programs when conducting business.

The  company  and  its  personnel  shall  not  directly  or  indirectly  offer  

Article 19

or accept any unreasonable gifts, hospitality or other improper benefits  

The company shall adopt policies for preventing conflicts of interest  

to  establish  business 

relationship  or 

influence  commercial  

to identify, monitor, and manage risks possibly resulting from unethical  

transactions.

Article 14

conduct,  and  shall  also  offer  appropriate  means  for  directors,  

  managers,  and  other  stakeholders  attending  or  present  at  board  

The  company  and  its  personnel  shall  observe  applicable  laws  and  

  meetings to voluntarily explain whether their interests would potentially  

regulations, 

internal  operational  procedures,  and  contractual  

conflict with those of the company.

provisions concerning intellectual property, and may not use, disclose,  

Article 20

dispose,  or  damage  intellectual  property  or  otherwise  infringe  

The company shall establish effective accounting systems and internal  

intellectual property rights without the prior consent of the intellectual  

control systems for business activities that may possibly be at higher  

property rights holder.

Article 15

risk of being involved in unethical conduct, not have under-the-table  

or secret accounts, and conduct reviews regularly so as to ensure that  

The company shall engage in business activities in accordance with  

the design and enforcement of the systems are showing results.

applicable competition laws and regulations, and may not make rigged  

The internal audit unit of the company shall devise relevant audit plans  

bids, establish output restrictions or quotas, or share or divide markets  

based  on  the  results  of  assessment  of  the  risk  of  involvement  

by allocating customers, suppliers, territories, or lines of commerce.

in  unethical  conduct,  which  plans  shall  include  parties  to  audit  and  

Article 16

audit scope, items and frequency etc., and examine accordingly the  

In the course of research and development, procurement, manufacture,  

compliance  with  the  prevention  programs.  The  internal  audit  unit  

provision,  or  sale  of  products  and  services,  the  company  and  its  

  may  engage  a  certified  public  accountant  to  carry  out  the  audit,  

personnel observe applicable laws and regulations and international  

and  may  engage  professionals  to  assist  if  necessary.  The  results  

standards  to  ensure  the  transparency  of  information  about,  and  

of examination in the preceding paragraph shall be reported to senior  

safety  of,  their  products  and  services.  They  shall  also  adopt  and  

  management and the ethical management team and reduced to writing  

publish  a  policy  on  the  protection  of  the  rights  and  interests  of  

in the form of an audit report to be submitted to the board of directors.

consumers  or  other  stakeholders,  and  carry  out  the  policy  in  their  

Article 21

operations,  with  a  view  to  prevent  their  products  and  services  from  

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

directly  or  indirectly  damaging  the  rights  and  interests,  health,  and  

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

safety of consumers or other stakeholders.

of  Conduct"  to  guide  directors,  supervisors,  managers,  employees,  

Article 17

and substantial controllers on how to conduct business.

The  personnel  of  the  company  shall  exercise  the  due  care  of  good  

Article 22

administrators  to  urge  the  company  to  prevent  unethical  conduct,  

The  company  shall  periodically  organize  training  and  awareness  

  while  always  reviewing  the  results  of  the  preventive  measures  and  

programs  for  company  personnel,  and  should  execute  reward  and  

continually  making  adjustments  so  as 

to  ensure 

thorough  

discipline  systems  according  to  the  relevant  rules  of  the  company,  

implementation of its ethical corporate management policies.

so  they  understand  the  companies'  resolve  to  implement  ethical  

To  achieve  sound  ethical  corporate  management,  the  relevant  

corporate  management,  related  policies,  prevention  programs,  and  

competent  authority  shall  be  responsible  for  establishing  and  

the consequences of engaging in unethical conduct.

87

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

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.

Article 24

The  company  shall  adopt  and  publish  a  well-defined  disciplinary  

and  appeal  system  for  handling  violations  of  the  ethical  corporate  

  management rules, and shall properly make the announcement on the  

company's  internal  website  including  the  title  and  details  of  the  

violation, and the actions taken in response.

Article 25

The company shall continuously assess the promotional effectiveness  

promotion  of  its  ethical  management  policy.  The  company  shall  

also disclose the measures taken for implementing ethical corporate  

  management, the status of implementation, and the effectiveness of  

promotion on company websites, annual reports, and prospectuses,  

and  shall  disclose  ethical  corporate  management  best  practice  

principles on the Market Observation Post System (MOPS).

Article 26

The company shall at all times monitor the development of relevant local  

and 

international 

regulations 

concerning  ethical 

corporate  

  management  and  encourage 

their  directors,  managers,  and  

employees  to  make  suggestions,  which  the  company  will  base  its  

review and improvements for its adopted ethical corporate management  

policies and measures  in order to achieve better implementation of  

ethical management.

Article 27

The principles shall be implemented after the board of directors grants  

approval. The same procedure shall be followed when the principles  

have been amended.

Please  refer  to  the  website  https://www.umc.com/upload/media/08_

Investors/Corporate_Governance/Major_Internal_Policies/UMC_

Ethical_Corporate_Management_Best_Practice_Principles_eng.pdf

88

United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Internal Control System Execution Status

Statement of Internal Control System

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

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

  paragraph,  UMC  believes  that,  on  December  31,  2020,  its  internal  

regard to its internal control system during the year 2020.

  control  system  (including 

its  supervision  and  management  of  

1.  UMC  acknowledges  and  understands  that  establishing,  operating  

  subsidiaries), had effectively assured that the following objectives had  

  and maintaining an internal control system are the responsibilities of  

  been reasonably achieved during the assessing period: effectiveness  

its Board of Directors and management, and such a system has been  

  and efficiency of operations, reliability, timeliness, transparency of our  

  established.  The  purpose  of  establishing  the  internal  control  system  

reporting, and compliance with applicable rulings, laws and regulations. 

is  to  reasonably  assure  the  following  objectives:  The  effectiveness  

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

  and  efficiency  of  operations  (including  profitability,  performance  and  

  prospectus, and will be made public. Any falsehood, concealment, or  

the  safeguarding  assets);  reliability,  timeliness,  transparency  of  our  

  other illegality in the content made public will entail legal liability under  

reporting, and compliance with applicable rulings, laws and regulations.

  Articles 20, 32, 171 and 174 of the Securities and Exchange Act.

2. The  internal  control  system  has  inherent  limitations.  No  matter  how  

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

  perfectly  designed,  an  effective  internal  control  system  can  only  

  held on Feb. 24, 2021, with none of eight attending directors expressing  

  provide  reasonable  assurance  of  accomplishing  the  aforementioned  

  dissenting opinions, and the remainder all affirming the content of this  

three  objectives.  Moreover,  the  effectiveness  of  an  internal  control  

  Statement.

  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  

United Microelectronics Corporation

is identified.

3. UMC evaluates the design and operating effectiveness of its internal  

  control  system  based  on  the  criteria  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 environment, (2) risk  

Chairman: Stan Hung

  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  of  its  

President: S C Chien

internal control system according to the aforesaid Regulations.

President: Jason S Wang

Feb. 24, 2021

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 any special audit of the internal control system in 2020.

89

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’ Meeting and the Board 
of Directors’ Meetings

The Major Resolutions from the Shareholders’ Meeting 

The Company’s 2020 Annual General Meeting was held at No.2, Prosperity 1st Rd., Hsinchu Science Park (101 Meeting Room of the Allied Association 

for Science Park Industries) on June 10, 2020. 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 2019 business report and financial 
statements.

•  In  2019,  UMC’s  sales  revenue  was  NTD  148,201,641  thousand,  and  full-year  net  income  

reached NTD 9,707,614 thousand, leading to an earnings per share of NTD 0.82.

Acceptance of the 2019 Earning Distribution Chart.

•  Distribution of 2019 earnings with cash dividend of NTD 9,765,154,720.
•  The ex-dividend record date was set for July 21, 2020, and cash dividend for common shares  
  was paid on August 5, 2020.

Approval of issuing Restricted Stock Awards for 
employees.

•   Implemented in accordance with resolution and issued gratuitously 200,030,000 shares of  
  common stock on September 1, 2020.

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

•  Implemented in accordance with resolution.

•  Considering market conditions, it was resolved to terminate the private placement offering by  

the 21st meeting of the Board of Directors, 14th term.

Approval  of  the  issuance  plan  of  private  placement  for 
common shares, preferred shares (including convertible 
preferred shares), DRs (including but not limited to ADS), 
or  Euro/Domestic  convertible  bonds  (including  secured 
or unsecured corporate bonds). The amount of shares is 
proposed to be no more than 10% of total common shares 
issued plus the total common shares represented by the 
above equity-type securities which are fully issued.

1.

2.

3.

4.

5.

90

United Microelectronics Corporation  |  Annual Report 2020 
 
Major  Resolutions  and  Implementation  Status  of  the  Shareholders’  Meeting  and  the  Board  of  Directors’  Meeting  
(Continue)

The Major Resolutions from the Board of Directors’ Meetings

Meeting Date

Major Resolutions

2020.02.26

2020.04.27

2020.06.05

2020.06.17

2020.07.29

2020.10.29

2020.12.16

2021.02.24

•  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.

•  Approved the Q1, 2020 Consolidated Financial Statements.
•  Approved capital budget execution.
•  Approved the proposal for private placement based on future operation needs and will propose at the 2020 Annual General Meeting  

for discussion.

•  Approved addition of proposals of the 2020 Annual General Meeting and change of the location for convening the 2020 Annual  
  General Meeting.

•  Approved the Company’s 21st share repurchase program.

•  Approved to release the managerial officer from non-competition restrictions.

•  Approved the Q2, 2020 Consolidated Financial Statements.
•  Approved capital budget execution.

•  Approved the Q3, 2020 Consolidated Financial Statements.
•  Approved capital budget execution.

•  Approved the Company to proceed with a potential investment to expand capacity.

•  Approved capital budget execution.
•  Approved for UMC’s Singapore branch to lend funds to UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

•  Approved the 2020 Business Report and Financial Statements.
•  Approved the 2020 distributable compensation for employees and directors.
•  Approved the 2020 Dividend Distribution.
•  Approved termination of the issuance plan for private placement, which was approved at the 2020 Annual General Meeting.
•  Approved the proposal for private placement based on future operation needs and will propose at the 2021 Annual General Meeting  

for discussion.

•  Approved the date of convening the 2021 Annual General Meeting, meeting agenda and submission period for shareholder proposals.
•  Approved capital budget execution.
•  Approved the acquisition of the Right-of-Use Asset from subsidiary Wavetek Microelectronics Corporation.
•  Approved the issuance of unsecured straight corporate bonds.
•  Approved UMC's donation to UMC Science and Culture Foundation.

91

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 2020 and as of the Annual Report 
Printing Date:
None.

Resignation or Dismissal of Chairman, President, and Heads of Accounting, Finance, Internal 
Audit, Corporate Governance and R&D During 2020 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

18 

6

 1

3

2

1

1

1

92

United Microelectronics Corporation  |  Annual Report 2020 
 
Certified Public Accountant (CPA) Fee Information
For the Non-audit Fee Paid to the CPA, CPA Firm, and Its Affiliate Greater than 1/4 of 
the Audit Fee, the Amount of Audit and Non-audit Fee and Content of Non-audit Service 
Should Be Disclosed

None. Please refer to the following table.

Name of CPA Firm

Name of CPA

Audit 
Fee

System 
Design

Business 
Registration

Human 
Resources

Others
(Note)

Subtotal

Period

Non-audit Fees CPA Audit 

Remarks

In Thousand NTD

Ernst & Young, Taiwan

Wan-Ju Chiu,
Hsin-Min Hsu

65,485

-

414

30 

11,094

11,538

2020.01.01~
2020.12.31

-

Note: The “Others” category within the non-audit fees mainly includes fees paid for consulting service, 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 10% from Last Year, the Amount, Ratio, and 
Reason for the Reduction of the Audit Fee Should Be Disclosed
None.

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.

93

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

Holding  
Increase 
(Decrease)

2021

Pledged  
Holding  
 Increase 
(Decrease)

Unit: Shares

2020

Pledged  
Holding  
 Increase 
(Decrease)

0

0

0

0

0

0

0

0

0

Holding  
 Increase  
(Decrease)

9,385,000

0

0

0

0

0

0

0

2,300,000

10,315,000

14,200,000

1,430,000

1,021,000

390,000

150,000

1,013,000

900,000

0

0

0

0

0

0

1,350,000

1,350,000

890,000

(750,000)

650,000

425,000

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

470,000

1,350,000

0

0

0

100,000

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

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

President

President

Executive Vice President

Ting-Yu Lin

SC Chien

Jason Wang

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

94

United Microelectronics Corporation  |  Annual Report 2020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

Vice President, Chief Human 
Resources Officer

S S Hong

Francia Hsu

Mindy Lin

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

Associate Vice President

Yanan Mou

Remi Yu

Associate Vice President

Michael CY Wang

Associate Vice President

Associate Vice President

Ji Fu Kung

C P Yen

Associate Vice President

Pang Min Wang

Associate Vice President

Ray Yang

Associate Vice President

Associate Vice President

Bellona Chen

Louis Hsieh

Former Director

Chung Laung Liu

Former Associate Vice President

C Y Hsu

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

Note 2: The data presented for 2021 was gathered until January 31, 2021.

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

Note 4: The share changes for Oliver Chang, Ray Yang, Bellona Chen and Louis Hsieh are calculated starting from the assumed date.

Note 5: The shares change for Chung Laung Liu and C Y Hsu are reported until their resignation.

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

Holding  
Increase 
(Decrease)

2021

Pledged  
Holding  
Increase 
(Decrease)

Holding  
Increase  
(Decrease)

Unit: Shares

2020

Pledged  
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

N/A

N/A

N/A

N/A

0

811,000

716,000

750,000

30,000

220,000

161,799

100,000

330,000

770,000

450,000

204,062

(40,000)

0

0

383,000

0

277,000

106,000

(77,000)

370,000

420,000

(700,000)

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

95

Corporate Governance ReportRelationship Among the Top 10 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 Top 10 
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

670,779,035

5.49

N/A

N/A

N/A

N/A

None

None

Hsun Chieh Investment Co., Ltd.

441,371,000

3.61

N/A

N/A

N/A

N/A

Representative:
Chun Kuan

93,998

0.00

0

0

0

0

None

None

Nan Shan Life Insurance Company, Ltd.

317,538,000

2.60

N/A

N/A

N/A

N/A

None

Representative:
Ying Tsung Tu

Data unavailable

Silicon Integrated Systems Corp.

285,380,424

2.33

N/A

N/A

N/A

N/A

Representative:
Cheng Chien Chien

1,858

0.00

0

0

0

0

None

None

Fubon Life Insurance Co., Ltd.

232,206,000

1.90

N/A

N/A

N/A

N/A

None

Representative:
Ming Hsing Tsai

Data unavailable

None

None

None

None

None

None

Yann Yuan Investment Co., Ltd.

200,000,000

1.64

N/A

N/A

N/A

N/A

None

None

Representative:
Wen Ching Lin

Data unavailable

Taiwan Life Insurance Co., Ltd.

192,555,000

1.58

N/A

N/A

N/A

N/A

None

None

Representative:
Ssu Kuo Huang

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

Norges Bank - internal - NBIM PF EQ INTERNAL 
CFD

Data unavailable

175,192,905

1.43

N/A

N/A

N/A

N/A

None

None

174,274,110

1.43

N/A

N/A

N/A

N/A

None

None

None

Labor Pension Fund

133,116,000

1.09

N/A

N/A

N/A

N/A

None

Note: The data shown above was recorded on July 21, 2020, which was the record date for the distribution of 2020 cash dividend.

96

United Microelectronics Corporation  |  Annual Report 2020Shares  Held  by  the  Company,  Directors,  Managers  and 
Companies  Directly  or 
Indirectly  Controlled  by  the 
Company, and the Comprehensive Shareholding Ratio Based 
on Combined Calculation

Investee Companies

UMC

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

Comprehensive Shareholding

Number of 
Shares

Percentage of 
Ownership
(%)

Number of Shares Percentage of 
Ownership
(%)

Number of 
Shares

Percentage of 
Ownership
(%)

UMC Group (USA)

United Microelectronics (Europe) B.V.

UMC Capital Corp.

TLC Capital Co., Ltd.

Green Earth Limited

Fortune Venture Capital Corp.

16,437,500

9,000

71,662,977

400,167,103

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.

Unitech Capital Inc.

Hsun Chieh Investment Co., Ltd.

Best Elite International Limited

12,000,000

21,000,000

364,102,314

664,966,275

Wavetek Microelectronics Corporation

148,112,434

UMC Korea Co., Ltd.

Omni Global Limited

United Semiconductor (Xiamen) Co., Ltd.

Faraday Technology Corporation

Yann Yuan Investment Co., Ltd.

Sino Paragon Limited

Triknight Capital Corporation

110,000

4,300,000

0

34,240,213

46,000,000 

2,600,000

234,280,000 

United Semiconductor Japan Co., Ltd.

116,246,616 

Unimicron Technology Corp.

196,136,008 

45.44

42.00

36.49

100.00

80.75 

100.00 

100.00 

0 

1 3.78 

30.87

100.00 

40.00

100.00

13.36

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

Note 2: The number of shares is based on the actual number of shares held on December 31, 2020.

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

16,4 37,500

9,000

71,662, 97 7

400,167,103

977,000,000

401,734,448

1,520,000

1 2,000,000

2,500,000

5.00

23,500,000

0

0

0

0

364,102,314

664,966,275

3,150,936

1.72

151,263,370

0

0

N/A

2,973

0

0

0

0

0

0

67.76

0.00

0

0

0

0

11 0,000

4,300,000

N/A

34,243,1 86

46,000,000 

2,600,000

234,280,000 

116,246,616

4,545,000

0.30

200,681,008 

100.00

100.00

100.00

100.00

100.00

100.00

100.00 

45.44

47.00

36.49

100.00

82 . 4 7

100.00

100.00

67.76

1 3 .78

30.87

100.00

40.00

100.00

13.66

97

Corporate Governance Report 
98

United Microelectronics Corporation  |  Annual Report 2020Capital Overview

Issuance of Corporate Bonds

100  Capital and Shares
106 
111   Preferred Shares
112   American Depositary Receipts
114   Employee Stock Option Handling Status
114  
Issuance of New Restricted Employee Shares  
11 5   Status of New Shares Issuance in Connection with   

Mergers and Acquisitions

11 5   Financing Plans and Execution Status 

99

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, 2020

NTD 10

26,000,000

260,000,000

11,773,994

117,739,944

May, 2020

NTD 10

26,000,000

260,000,000

12,222,371

122,223,715

September, 2020 NTD 10

26,000,000

260,000,000

12,422,401

124,224,015

Note 1

Note 2

Note 3

None

None

None

None

None

None

Note 1:  On March 11, 2020, the Hsinchu Science Park Bureau, Ministry of Science and Technology approved the capital increase of NTD 496,757 thousand due to conversion of convertible  

bonds during the 4th quarter of 2020. The Company’s paid-in capital was increased to NTD 117,739,944 thousand.

Note 2:  On May 12, 2020, the Hsinchu Science Park Bureau, Ministry of Science and Technology approved the capital increase of NTD 4,483,771 thousand due to conversion of convertible  

bonds during the 1st quarter of 2021. The Company’s paid-in capital was increased to NTD 122,223,715 thousand.

Note 3:  On September 15, 2020, the Hsinchu Science Park Bureau, Ministry of Science and Technology approved the capital increase of NTD 2,000,300 thousand due to issuance of new  

Restricted Stock Awards for employees. The Company’s paid-in capital was increased to NTD 124,224,015 thousand.

Note 4:  The data shown above was gathered until February 24, 2021.

Type of Stock

Share Type

Issued Shares(Note 1)

Un-Issued Shares

Total Shares

Authorized Capital

Allotment for Stock 
Option Certificate 
(Units)

Common Stock

12,422,401,493

13,577,598,507

26,000,000,000

2,000,000,000

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

Note 2: The data shown above was gathered until February 24, 2021.

Information for Shelf Registration

Not Applicable.

Status of Shareholders 
Common Shares

Item

Number of 
Shareholders

Government 
Agencies

Financial 
Institutions

Other Juridical 
Persons

Natural Persons

Foreign 
Institutions and 
Natural Persons

Total

14

73

721

504,773

1,753

507,334

Shareholding (Shares)

200,322,662

1,102,458,871

1,391,480,887

3,259,878,227

6,268,230,846

12,222,371,493

Percentage (%)

1.64

9.02

11.39

26.67

51.28

100.00

Note: The data shown above was recorded on July 21, 2020, which was the record date for the distribution of 2020 cash dividend.

100

United Microelectronics Corporation  |  Annual Report 2020 
 
 
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

188,169

213,209

51,379

18,701

10,394

9,856

7,024

4,534

1,975

846

294

142

100

711

507,334

Shareholding
(Shares)

56,450,686

490,789,812

382,625,952

229,873,355

185,976,409

242,587,779

275,119,274

318,523,644

273,930,534

234,253,042

144,89 6,143

99,079,262

90,081,910

9,198,183,691

12,222,371,493

Percentage (%)

0.46

4.02

3.13

1.88

1.52

1.98

2.25

2.61

2.24

1.92

1.18

0.81

0.74

75.26

100.00

Note: The data shown above was recorded on July 21, 2020, which was the record date for the distribution of 2020 cash dividend.

Preferred Shares

None.

List of Major Shareholders

Shareholder's Name

Shareholding

Shares

Percentage (%)

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

Hsun Chieh Investment Co., Ltd.

Nan Shan Life Insurance Company, Ltd.

Silicon Integrated Systems Corp.

Fubon Life Insurance Co., Ltd.  

Yann Yuan Investment Co., Ltd.

Taiwan Life Insurance Co., Ltd.

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

Norges Bank - internal - NBIM PF EQ INTERNAL CFD

Labor Pension Fund

  670,779,035 

441,371,000 

317,538,000 

 285,380,424 

 232,206,000

 200,000,000 

192,555,000 

 175,192,905 

174,274,110 

133,116,000 

Note: The data shown above was recorded on July 21, 2020, which was the record date for the distribution of 2020 cash dividend.

5.49

3.61

2.60

2.33

1.90

1.64

1.58

1.43

1.43

1.09

101

Capital OverviewCapital and Shares (Continue)

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

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)

Earnings Per Share (Note 2)

Earnings Per Share (Note 3)

Dividends Per Share

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)

2021 (Note 7)

5 9 . 4 0

4 4.0 0

52.0 4

-

-

-

-

-

-

-

-

-

-

-

-

2020

51.70

13.10

28.13

19.0 0

*

In NTD

2019

17.05

10.55

13.63

17.61

16.78

12,072,969,148

11,785,108,150

2.42

*

*

*

*

-

9.45

*

*

0.82

0.82

0.80395653

-

-

-

16.24

16.57

0.06

*Subject to change based on resolutions of the 2021 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 2021 was gathered until February 24, 2021.

Note 8: The average closing prices for years 2019, 2020 and 2021 were NTD 13.32, NTD 22.88, and NTD 52.06, respectively.

102

United Microelectronics Corporation  |  Annual Report 2020Capital and Shares (Continue)

Dividend Policy and Status

1. Dividend Policy in Company’s Articles of Incorporation

year. The distribution of shareholders’ dividend shall be allocated as cash 

  According  to  the  Company’s  Articles  of  Incorporation,  current  year’s  

dividend in the range of 20% to 100%, and stock dividend in the range of 

  earning, if any, shall be distributed in the following order:

0% to 80%.

(1) Payment of taxes.

2. The  Company’s  operating  status, 

funding  requirements,  capital  

(2) Making up for loss in preceding years.

  expenditure  forecast,  changes  in  the  overall  internal  and  external  

(3) Setting aside 10% for legal reserve, except for when accumulated legal  

  environment,  as  well  as  shareholders’  interest  shall  be  taken  into  

      reserve has reached the Company’s paid-in capital.

  account  to  determine  the  Company’s  dividend  policy;  distribution  of  

(4) Appropriating or reversing special reserve by government officials or  

  dividend is determined by the Board of Directors, and the principle of  

     other regulations.

  distribution  shall  not  be  lower  than  50%  of  the  Company’s  earnings  

(5) The remaining, plus the previous year’s unappropriated earnings, shall  

  after tax of the year without considering other extraordinary situations.

      be distributed according to the distribution plan proposed by the Board  

      of Directors according to the dividend policy in paragraph two of this  

Proposed Distribution of Dividend

      clause and submitted to the shareholders’ meeting for approval.

The  Company’s  proposal  for  2020  earnings  distribution  was  passed 

The  dividend  policy  of  the  Company  shall  be  determined  pursuant  to 

during  the  21st  board  meeting  of  the  14th  term.  This  proposal,  a  cash 

factors  such  as  the  investment  environment,  its  funding  requirements, 

dividend of NTD 19,875,842,389 from retained earnings (NTD 1.60 per 

domestic and overseas competitive landscape and its capital expenditure 

share), will be discussed at the Annual General Meeting.

forecast,  as  well  as  shareholders’  interest,  balancing  dividends  and 

UMC’s long-term financial planning. The Board of Directors shall propose 

the  distribution  plan  and  submit  it  to  the  shareholders’  meeting  every 

Effect of Share Dividends to Operating Performance and EPS

Not applicable.

103

Capital Overview 
 
 
 
 
 
 
 
 
 
Capital and Shares (Continue)

Employees’ and Directors’ Compensation

Related 
Information  of  Employees’  and  Directors’ 
Compensation in the Company’s Articles of Incorporation

the  number  of  stock  distributed  is  calculated  based  on  total  employee 

compensation divided by the closing price of the day before the Board 

Employees’  and  Directors’  Compensation  Policy  in  the  Company’s 

of  Directors  meeting.  If  the  Board  of  Directors  subsequently  modifies 

Articles of Incorporation is as follows:

the  estimates  significantly,  the  Company  will  recognize  the  change  as 

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

an adjustment in the profit or loss in the subsequent period. Information 

compensation and no more than 0.2% of profit as directors’ compensation 

relevant to the aforementioned employees and directors’ compensation 

for each profitable fiscal year after offsetting any cumulative losses.

can  be  obtained  from  the  “Market  Observation  Post  System”  on  the 

The  aforementioned  employees’  compensation  will  be  distributed  in 

website of the TWSE.

shares or cash. The employees of the Company’s subsidiaries who fulfill 

specific requirements stipulated by the Board of Directors may be granted 

The  Distributable  Compensation  for  Employees  and 

such compensation. Directors may only receive compensation in cash.

Directors Passed During the Board Meeting.

The  Company  may,  by  a  resolution  adopted  by  a  majority  vote  at  a 

The  Company’s  2020  distributable  compensation  for  employees  and 

meeting  of  the  Board  of  Directors  attended  by  two-thirds  of  the  total 

directors was passed during the 21st board meeting of the 14th term. The 

number  of  directors,  distribute  the  aforementioned  employees’  and 

distribution status is as follows:

directors’ compensation and report to the shareholders’ meeting for such 

The  Company  is  to  distribute  NTD  2,581,674,949  as  employee  cash 

compensation and NTD 32,368,656 as directors’ compensation.

There  is  no  difference  between  the  amount  passed  during  the  Board 

meeting and the recognized amount during 2020 of the aforementioned 

employees’ and directors’ compensation.

distribution.

The  Basis  for  Estimating  the  Amount  of  Employees 
and  Directors’  Compensation,  the  Basis  for  Calculating 
the  Number  of  Shares  to  Be  Distributed  as  Employees’ 
Compensation,  and  the  Accounting  Treatment  of  the 
Discrepancy  Between  the  Actual  Distributed  and  the 
Estimated Amount.

The  Company  recognizes  the  employees  and  directors’  compensation 

in  the  profit  or  loss  during  the  periods  when  earned.  The  Board  of 

Directors estimates the amount by taking into consideration the Articles of 

Incorporation, government regulations and industry averages. If the Board 

of Directors resolves to distribute employee compensation through stock, 

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 2019:

In Thousand NTD

Item

Board Resolution (February 26, 2020)

Employees’ compensation distributed in Cash

Directors’ compensation

1,132,952

10,259

Note: The actual distribution of employees and directors’ compensation for 2019 were consistent with the resolutions of the Board of Directors meeting held on February 26, 2020.

104

United Microelectronics Corporation  |  Annual Report 2020Buyback of Treasury Stock
(1) Completed Share Buyback Program

Instance

Purpose

Buyback period

Price range (NTD)

21st round

Transfer to employees

2020.06.08~2020.08.07

11.55~23.25

Classification and executed volume(Shares)

105,000,000 Common shares

Executed amount(NTD)

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

1,678,271,840

52.50

Cancellation and transfer volume(Shares)

105,000,000

Cumulative holding(Shares)

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

0

0

Note: The data shown above was gathered until February 24, 2021.

(2) Uncompleted Share Buyback Program: None.

105

Capital OverviewIssuance of Corporate Bonds (Continue)

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 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.

None (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 fect or other adverse impact on existing 
shareholders’ equit y, if c onversion, 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. 

NTD 2,500 million for the 7-year bond was repaid on March 15, 2020.

106

United Microelectronics Corporation  |  Annual Report 2020 
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 fect or other adverse impact on existing 
shareholders’ equit y, if c onversion, exchange, or 
subscription rights are attached

Custodian

None

None

None

107

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 fect or other adverse impact on existing 
shareholders’ equit y, if c onversion, exchange, or 
subscription rights are attached

Custodian

None

None

None

108

United Microelectronics Corporation  |  Annual Report 2020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 fect or other adverse impact on existing 
shareholders’ equit y, if c onversion, exchange, or 
subscription rights are attached

Custodian

None

None

None

109

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

None (Note)

(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.

Redemption or early redemption clause

110

United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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

-

-

USD 230,600,000

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

 Note: The Currency Linked Zero Coupon Convertible Bonds Due 2020 was fully repaid on May 18, 2020.

Exchangeable Bonds Information
None.

Euro Convertible Bonds Information

Type

Item

Year

2020 
(Note)

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

 USD 121.726

 USD 121.802

USD 124.583

USD 114.894

USD 95.625

USD 100.864

Low

 USD 99.507

 USD 95.185

USD 95.662

USD 92.255

USD 88.052

USD 87.579

Average

 USD 107.971

 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 Currency Linked Zero Coupon Convertible Bonds Due 2020 was fully repaid on May 18, 2020.

Shelf Registration for Issuing Bonds

None.

Corporate Bonds with Warrants

None.

Preferred Shares

None.

111

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 140,000,865 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 24, 2021.

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

10.78

Low

 8.01

2021

Average

9.58

High

9.04

Low

 2.13

2020

Average

3.83

Note: The data represented for 2021 was gathered until February 24, 2021.

112

United Microelectronics Corporation  |  Annual Report 2020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

-

-

-

-

-

-

-

-

113

Capital OverviewEmployee Stock Options 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

Type of New Restricted Employee Shares

1st Tranche

Date of Effective Registration

Issue Date

2020.07.09

2020.09.01

Number of New Restricted Employee Shares Issued

200,030,000 shares

Issued Price (NTD)

The current issue is gratuitous

New Restricted Employee Shares as a Percentage of  
Shares Issued

1.64%

Vesting Conditions of New Restricted Employee Shares

Restricted Rights of New Restricted Employee Shares

114

1.  If an employee, after having been granted a restricted stock award, remains on the job on the  
  vesting date, is determined by the Company as having not violated the employment contract,  
  employee  code  of  conduct,  trust  agreement,  corporate  governance  best  practice  principles,  
  ethical  corporate  management  best  practice  principles,  work  handbook  or  non-compete  and  
  non-disclosure  agreement  of  the  Company  or  any  agreement  with  the  Company,  and  has  
fulfilled  the  personal  performance  indicators  and  operational  goals  set  by  the  Company,  the  
  proportions of the vesting shares to be granted for such employee on the vesting date each  
  year is as follows:
  1-1. On the job for 2 years after granting: 33%
  1-2. On the job for 3 years after granting: 33%
  1-3. On the job for 4 years after granting: 34%
2. Personal  performance  indicator(s):  A  performance  rating  of  A  or  higher  for  the  most  recent  

fiscal year prior to the end of each vesting period.

3. The  operational  goals  of  the  Company  use  the  return  on  equity  (ROE%)  %  and  operating  
  margin  %  (OM%)  as  performance  indicators.  Listed  below  are  the  performance  target  for  
the  two  indicators,  which  shall  be  simultaneously  fulfilled.  Determination  of  fulfillment  of  the  
indicators will be based on the consolidated financial statements, audited by a certified public  

  accountant, for the most recent fiscal year prior to the end of each vesting period.

Indicator

Return on equity 
(ROE%)

Operating margin  
(OM%)

2 years after granting

3 years after granting

6% or above

8% or above

6% or above

8% or above

4 years after granting

10% or above  

10% or above  

1.  Before any employee who has been granted restricted stock award shares fulfills the vesting  
  conditions, except for the case of inheritance, the restricted stock award shares may not be  
  sold, pledged, transferred, gifted to others, created any encumbrance, or otherwise disposed  
  of.
2. Before  any  employee  who  has  been  granted  restricted  stock  award  shares  fulfills  the  
  vesting  conditions,  his/her  rights  to  attendance,  proposal,  statement,  voting  and  election  at  
the Shareholders’ Meeting shall be the same as those of the outstanding common shares of  
the Company, and shall be exercised according to a custodial trust agreement.

3. Where  any  employee  has  been  granted  restricted  stock  award  shares  pursuant  to  these  
  Regulations,  his/her  other  rights  prior  to  fulfillment  of  the  vesting  conditions  include,  but  
  are  not  limited  to:  the  right  to  distribution  of  cash  dividends,  stock  dividends,  legal  reserves  
  and capital reserves, and employee stock option at cash capital increase. Such rights shall be  
the same as those of the outstanding common shares of the Company, and shall be exercised  

  according to a custodial trust agreement.
4. During the period from the book closure date for stock dividends granted by the Company, the  
  book closure date for cash dividends, the book closure date for shares purchased from a cash  
  capital increase, the book closure period of the Shareholders’ Meeting as specified by Article  
  165,  Paragraph  3  of  the  Company  Act  or  any  other  statutory  book  closure  date  occurring  
  based on the fact of the record date for distribution of rights, the time and process for lifting  
restrictions on the vested shares of any employee who has fulfilled the vesting conditions shall  

  be subject to a custodial trust agreement or the applicable laws and regulations.

United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
 
 
 
Type of New Restricted Employee Shares

1st Tranche

Custody Status of New Restricted Employee Shares

Placed under custodial trust

Measures to be Taken When Vesting Conditions are not Meet 

1.  Where an employee who has been granted restricted stock award shares is not on the job on  
the vesting date, has committed an act of gross negligence by violating any of the agreements  
  under  Article  III,  Paragraph  (III),  Sub-paragraph  1  of  “2020  Regulations  Governing  the  
Issuance  of  Restricted  Stock  Awards  for  Employees”,  or  has  failed  to  fulfill  the  personal  
  performance indicators and operational goals set by the Company, the shares granted to him/ 
  her but unfulfilled vesting conditions will be recovered and canceled by the Company without  
  compensation.
2. During the vesting period, if an employee has voluntarily resigned or been dismissed or laid off,  
  his/her  unvested  shares  will  be  recovered  and  canceled  by 
the  Company  without  
  compensation.

Number of New Restricted Employee Shares that have been 
Redeemed or Bought Back

0 share

Number of Released New Restricted  Employee Shares

0 share

Number of Unreleased New Restricted Shares

200,030,000 shares

Ratio of Unreleased New Restricted Shares to Total 
Issued Shares (%)

1.64%

Impact on Possible Dilution of Shareholdings

The dilution of the Company’s EPS is limited, so there is no significant impact on the interest of 
shareholders. 

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 2020 and as of the Annual Report Printing Date.

Financing Plans and Execution Status

Not Applicable.

115

Capital Overview 
 
List of Executives Receiving New Restricted Employee 
Shares and the Top 10 Employees with New Restricted 
Employee Shares

Title

Name

No. of New Restricted Shares

New Restricted Shares as a 
Percentage of Shares Issued(%)

Manager Chairman & Chief Strategic Officer Stan Hung

President

President

SC Chien

Jason Wang

Executive Vice President

Ming Hsu

Senior Vice President

Senior Vice President &  
Chief Financial Officer

Oliver Chang

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

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

Mindy Lin

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

Associate Vice President

Le Tien Jung

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

Remi Yu

Associate Vice President

Michael CY Wang

Associate Vice President

Associate Vice President

Ji Fu Kung

C P Yen

Associate Vice President

Pang Min Wang

Associate Vice President

Ray Yang

Associate Vice President

Associate Vice President

Bellona Chen

Louis Hsieh

116

119,850

0.965

United Microelectronics Corporation  |  Annual Report 2020No. of Shares

Issued Price
(NTD)

Amount
(Thousand NTD)

As of February 24, 2021/Unit: Thousand Shares

Released

Released  
Restricted Shares 
as a Percentage of 
Shares Issued  
(%)

No. of Shares

Strike Price
(NTD)

Amount
(Thousand NTD)

Unreleased

Unreleased 
Restricted Shares 
as a Percentage of 
Shares Issued
(%)

0

0

0

 0.00

119,850

0

0

0.965

117

Capital OverviewList of Executives Receiving New Restricted Employee Shares and the Top 10 Employees with New Restricted Employee  
Shares (Continue)

Title

Name

No. of New Restricted Shares

New Restricted Shares as a 
Percentage of Shares Issued(%)

Employee Senior Division Director

Senior Fab Director

Senior Division Director

Senior Division Director

Senior Fab Director

M H Wang

William Lu

Cedric Lee

JT Lin

J H Lin

Senior Division Director

Jeffrey Lin

Senior Division Director

Benjamin TM Lin

Senior Division Director

Seanchy Chiu

Senior Fab Director

Senior Division Director

Senior Division Director

Senior Division Director

Senior Division Director

Senior Division Director

Y C Kuo

David Chen

Stan Chen

Jeffrey Huang

Wunnshien Liao

Ming Hsing Liu

Senior Division Director

Wood Tsai

Senior Division Director

Yao Chin Cheng

Senior Technical Director

Senior Division Director

Senior Division Director

Alex Chien

Michael Tai

K C Su

17,680

0.142

118

United Microelectronics Corporation  |  Annual Report 2020List of Executives Receiving New Restricted Employee Shares and the Top 10 Employees with New Restricted Employee  

Shares (Continue)

No. of Shares

Issued Price
(NTD)

Amount
(Thousand NTD)

As of February 24, 2021/Unit: Thousand Shares

Released

Released  
Restricted Shares 
as a Percentage of 
Shares Issued  
(%)

No. of Shares

Strike Price
(NTD)

Amount
(Thousand NTD)

Unreleased

Unreleased 
Restricted Shares 
as a Percentage of 
Shares Issued
(%)

0

0

0

0.00

17,680

0

0

0.142

119

Capital OverviewOperations Overview

121  Business Activities
128  Overview of Market, Production, and Sales  
134  Employees 
135  Environmental Expenditure Information  
135 
Labor Relations 
139  Major Contracts

120

United Microelectronics Corporation  |  Annual Report 2020Business Activities

Business Scope

UMC provides wafer fabrication technology services through state-of-the-

embedded non-volatile memory, high voltage, integrated bipolar/CMOS/

art manufacturing processes and produces chips for various applications 

depleted  CMOS,  MEMS  sensor  and  mixed-signal/RF  CMOS,  RFSOI, 

within  the  IC  industry.  The  Company  provides  logic  and  mixed-signal 

2.5D/3D advanced package, GaAs, GaN…, to complete design tape out.

process  technologies  from  0.6  micron  to  14nm.  UMC  continuously 

introduces  competitive  process  technologies  and  complete  solutions 

In 2020, revenue contribution from UMC’s wafer fabrication accounted for 

to  meet  specific  customer’s  chip  design  requirements.  Customers  can 

the vast majority of the Company’s total sales revenue, with the remainder 

select different processes according to their product application, such as 

generated from new R&D ventures and manufacturing of solar energy.

Industry Overview

Current  Status  and  Development  of  the  Semiconductor 

they  have  increased  the  proportion  of  wafer  manufacturing  to  foundry 

Industry

outsourcing. Some makers of system products have also designed ICs 

The  development  of  electronic  products  has  been  trending  towards 

(such  as  cellphone  chips  and  server  processor)  by  themselves  and 

enhanced functionality, light weight, energy saving and carbon reduction, 

outsourced to wafer foundry. These industrial trends all have a positive 

and  smart  AI.  The  incorporation  of  IoT,  artificial  intelligence  concepts,  

impact on the sustainable development of the professional wafer foundry 

deep  learning  and  voice  control  in  recent  years  has  also  affected  the 

industry.

direction  of  chip  design.  Therefore,  the  complexity  of  chip  designs 

For  2020,  the  global  semiconductor  industry  was  impacted  by  positive 

has  significantly  increased  due  to  the  considerations  of  functional 

and  negative  factors.  Generally  speaking,  COVID-19  lowered  global 

integration,  performance  enhancement,  low  power  consumption,  and 

GDP  and  economic  contraction  negatively  impacted  many  areas  of 

commercial  introduction  of  hybrid  packaging.  In  addition,  due  to  the 

electronic  consumption.  However,  the  China-US  trade  dispute  resulted 

constant  miniaturization  of  semiconductor  fabrication  processes  and  

in an industrial structure change, with many new applications triggered 

cost  considerations,  this  trend  has  caused  the  entry  barrier  into 

by COVID-19, such as Work from Home and Remote e-learning, which 

semiconductor fabrication process technology to continuously increase, 

significantly increased chip demand. In addition to high 5G smartphone 

and the investment required has also been growing exponentially.

sales, this rare strong rebound in chip demand was welcome. Reduced 

With the constantly rising entry barriers of various semiconductor sectors 

tourism  and  business  travel  negatively  affected  automotive  sales,  with 

from design, fabrication, packaging, and test, under the considerations of 

car  makers  closing  production  lines  and  even  laying  off  employees, 

professional division of labor and production efficiency, the semiconductor 

resulting in declining automotive semiconductor sales. Summarizing the 

industry’s move towards a vertical division of labor system is becoming 

views from all major industries, SIA (Semiconductor Industry Association) 

more  and  more  obvious.  The  development  cost  of  advanced  process 

reported worldwide semiconductor would grow around 5.1% in 2020. 

technologies  and  the  capital  expenditure  of  new  tools  and  equipment 

Under the applications driven by 5G, IoT, automotive, and AI, those are 

have risen significantly, such that the industrial structure of professional 

expected  as  major  growth  momentum  for  semiconductor  industry.  The 

division of labor has been formed. This phenomenon has resulted in many 

continuous and steady growth of domestic and international economies 

existing Integrated Device Manufacturers (IDMs) to announce that they 

can be expected in 2021, due to the steady demand increase from 5G, 

will no longer actively invest in the development of advanced processes 

HPC, AI, IoT, and smartphone returning to a pattern of growth. PC sales 

or increase their capacity due to cost vs. benefit considerations. Instead, 

maintain  at  a  high  level,  more  emerging  applications  appeared,  and 

121

Operations OverviewIndustry Overview (Continue)

automotive semiconductor and memory showed a rebound. SIA forecasts 

The  Development  Trend  and  Competition  of  Electronic 

worldwide semiconductor will grow 8.4%. Gartner forecasts the foundry 

End Products

industry to grow 9.2%.

Conventional electronic products can be divided into several categories: 

Yet  there  are  still  uncertainties  which  will  affect  future  economic 

Computer,  Communication,  Consumer, 

Industry,  and  Automotive. 

development. The most crucial keys are how the industry will be impacted 

Electronic products have been developed towards compact size and light 

by  COVID-19,  the  new  US  President’s  economic  policy  decisions  and 

weight,  low  power  consumption,  interconnection,  artificial  intelligence, 

the U.S.-China Trade War, the slowdown of economic growth in China, 

and  deep  learning.  For  example,  notebooks  and  tablets  can  operate 

conflicts in regional politics, decisions by the U.S. Fed, degrees of inflation 

longer,  and  cellphones  can  be  wirelessly  connected  to  notebooks  and 

in  various  countries,  and  international  energy  price  trends.  Therefore, 

tablets.  In  addition,  the  greatly  enhanced  bandwidth  of  broadband 

all  major  global  wafer  foundries  should  be  prudent  with  their  capital 

networks  has  contributed  to  the  development  of  networked  and  smart 

expenditures when expanding production capacity planning.

TVs.  By  linking  all  things  via  the  access,  delivery,  and  processing  of 

information to form a large network, many breakthrough applications and 

Correlation Among Upstream, Midstream, and 

enormous business opportunities in the fields of smart home, health care 

Downstream Industry Suppliers

system, and urban facilities become available. Looking towards the future, 

The division of labor in the semiconductor industrial chain is fairly mature 

the key technologies of 5G, smartphones, wearable electronics, AR/VR, 

and  can  generally  be  divided  into  IC  design,  mask,  wafer  fabrication, 

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

testing  and  packaging  from  upstream  to  downstream,  and  these  form 

and  IoT  will  be  constantly  adopted  and  commercialized.  As  such, 

complete sub-industries as well. IC design is mainly the design according 

professional  wafer  fabrication  services  should  complete  corresponding 

to the specifications and applications required by end products. Different 

process development and silicon intellectual properties in order to meet 

IC  chips  and  products  will  have  emphasis  on  different  characteristics, 

the needs of different application requirements and business opportunities 

thus  leading  to  different  process  requirements.  Therefore,  professional 

of end system products.

wafer foundries must provide the most current technical foundry process 

technology services and adequate silicon intellectual property (IP), and 

continuously optimize process technology to help IC design customers in 

their chip development, eventually moving to mass-production with high 

quality and high yield rate. 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.

122

United Microelectronics Corporation  |  Annual Report 2020Overview of Technology and R&D

R&D Expenses for the Past 5 Years

2020

2019

2018

2017

2016

In Thousand NTD

Operating Revenues

176,820,914

148,201,641

151,252,571

149,284,706

147,870,124

Research and Development Expenses

12,895,501

11,860,244

13,025,139

13,669,589

13,532,356

Research and Development Expenses as a 
Percentage of Operating Revenues

7.29%

8.00%

8.61%

9.16%

9.15%

Note 1: The R&D expenses from 2016 to 2020 are determined according to the international financial report criteria approved by the Financial Supervisory Commission. 

Note 2: The R&D expense for 2021 was calculated up until the publication date of Feb. 24, 2021, which amounted to NTD 1,715,722 thousand.

Technologies or Products Successfully Developed Within the Past 5 Years

Year

2016

2017

2018

2019

R&D Achievements

‧ 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.

‧ 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 product applications.
‧ 14nm  FinFET  customized  process  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.

‧ 14nm  FinFET-Plus  customized  process  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  was  already  at  the  risk  production  stage.  This  high  performance  ReRAM  is  fully   

compatible with UMC’s CMOS logic process.

2020

‧ 14nm FinFET compact process platform (14FFC) customer product yield reached 90%, passed customer product HTOL qualification, and entered  

the mass production stage.

‧ 22nm process reached the milestone of mass production for customers’ digital TV (DTV) chips.
‧ Product used in image signal processor (ISP), adopting high-performance computing process (28HPCU+), has been mass-produced.
‧ UMC,  cooperating  with  eMemory  and  its  subsidiary  PUFsecurity,  announced  the  successful  joint  development  of  the  world’s  first  PUF  (physical  
  unclonable function)-based security embedded flash (PUFflash) solution.
‧ The second generation of CMOS-MEMS gas sensors, 90nm and 55nm RFSOI process technologies all entered the mass production stage.

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

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

UMC  continued  to  optimize  the  process  and  expand  the  application 

development  of  logic  process  technology.  With  the  adherence  to  the 

range of 22nm process products. In 2021, it is expected that more than 

belief  of  “Customer  Demand  Comes  First,”  the  Company  has  been 

ten customers will apply this platform technology for pilot production on 

providing pure-play wafer foundry solutions to meet market trends and 

Internet of Things (IoT), consumer electronics, industrial applications and 

customer needs, which include world-class technology, customer support 

wearable (Mobile) products.

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

UMC’s  Southern  Taiwan  Science  Park  site,  the  Company  continues  to 

28nm High-Performance Process Technology

recruit and train a large number of R&D talent. In 2020, UMC continued 

to significantly invest in R&D resources with total annual R&D expense 

UMC’s 28nm high-performance process utilizes high-k/metal gate stack 
technology. The 28nm high-performance computing process (28HPCU+) 

reaching NTD 12.9 billion, which has led to fruitful R&D achievements in 

entered  mass  production  in  2020  for  image  signal  processor  (ISP) 

logic and specialty technologies.

14nm Process Technology

products,  and  more  advanced  and  high-end  products  are  expected  to 
begin mass production in 2021. The 28HPCU+ millimeter wave (mmWave) 

process covers high-performance and low-power technology platforms; 

UMC  reached  the  mass  production  milestone  for  its  customized  14nm 

verification of the millimeter wave chip design process has already been 

FinFET  process  in  early  2017,  and  the  competitiveness  of  device 

completed. UMC further extends its SPICE model coverage to 110GHz 

performance and yield has reached industry leading standards. In 2018, 

for  mmWave  in  order  to  serve  mobile  phone,  automotive/industrial 

UMC’s  other  14nm  project  (14FFC  FinFET  process  platform)  showed 

radar  and  5G  FWA/CPE  applications.  Customers  can  leverage  UMC's 

50%  performance  improvement  and  twice  the  gate  density  compared 

mmWave foundry design kit (FDK) to design a transceiver IC, or integrate 

to  28nm.  128Mb  SRAM  reached  mass  production  quality  levels  for 

the  foundry’s  well-established  digital  and  analog  IP  to  accelerate  their 

product yield and has passed process and product reliability verification. 

mmWave SoC design.

Currently, several customers have designed products on UMC’s 14FFC 

platform,  with  product  yield  reaching  90%  and  performance  meeting 

Embedded MRAM

design targets. In addition, 14FFC also passed customer product HTOL 

For  future  market  demands  related  to  advanced  IoT,  automotive 

(High  Temperature  Operating  Life)  reliability  qualification  and  already 

electronics,  wearable  products,  and  cloud  applications,  conventional 

entered mass production. With the successful rollout of 5G and Netcom 

embedded  non-volatile  flash  memory  based  on  eFlash  is  gradually 

applications,  UMC’s  14FFC  has  also  attracted  customers  to  engage  in 

showing  an  imbalance  between  cost  and  performance.  In  light  of  this, 

new product design-in, with tape out expected in 2021.

22nm Ultra-low power/Ultra-low Leakage Process 
Technology

UMC  has  developed  22nm  process  technology  and  its  28nm  high 
performance compact low power process technology platform (HPCU+). 

With the same number of mask layers and compatible design criteria as 

28nm, the performance of 22nm process technology has been enhanced 

UMC invested in the R&D of eMRAM in 2018. Following UMC’s eMRAM 

development schedule, the critical characteristics including the magnetic 

component bit error rate, macro circuit endurance, data retention, have 

already  reached  the  industry's  leading  competitiveness  level.  UMC 

expects to provide embedded MRAM macros on the 22nm platform for 

customers in 2021, and to further provide customers with complete SoC 

services for their circuit design solutions.

by  10%,  power  consumption  has  been  reduced  by  20%,  and  area  has 

ReRAM

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

technology has been greatly improved to provide customers with more 

process  options.  22nm  ultra-low  power/ultra-low  leakage  technologies 

are  suitable  for  IoT,  automotive  electronics,  industrial  applications,  and 

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

relevant technologies. UMC’s 22nm introduction has maximized the value 

of the Company’s 28nm process, with IP verification from 28nm to 22nm 

being relatively easy due to direct conversion from the use of compatible 

design  specifications.  UMC’s  22nm  process  has  been  introduced  to 

customers and completed pilot production. In Q4, 2020, it reached the 

mass  production  milestone  for  customer  digital  TV  (DTV)  chips,  and 

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

low  read  current,  fast  program/erase  speed  and  very  good  reliability. 

ReRAM process is fully logic compatible with less add-on masks and low 

extra cost. UMC started to co-develop ReRAM with Panasonic in 2017 

and  already  started  mass  production  in  2020.  Panasonic  also  plans  to 

have more product tape outs in the near future.

Display Driver IC 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, 

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United Microelectronics Corporation  |  Annual Report 2020Overview of Technology and R&D (Continue)

TV, digital camera, on-board screen, and wearable display. UMC’s High 

present, 0.13um, 0.11um and 90nm processes have been widely adopted 

Voltage Technology has led the development of various voltages to meet 

by smart phones for mass production. UMC has  its 55nm process ready 

the specification requirements of various application markets. UMC was 

for mass production and also started to develop 40nm RFSOI technology 

the first in the foundry industry to introduce a 28nm High Voltage Process, 

platforms to catch subsequent growth trends.

and mass production has been achieved for high-end LCD Display and 

high-end OLED Display markets. In addition, UMC has begun developing 

Non-Volatile Flash Memory

a  22nm  High  Voltage  Platform  to  provide  smaller  SRAM  with  higher 

UMC has always been dedicated to providing customers with complete 

capacity  in  order  to  meet  the  demand  of  the  2K/4K  high-end  display 

SoC  solutions  including  non-volatile  flash  memory  devices,  which 

market.

Power Management Process Technology

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  entered  the  mass  production  stage.  This 

technology  is  suitable  for  special  applications  such  as  power  charger, 

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

can  meet  industry  demand  for  higher  voltage  and  reduce  the  energy 

consumption  during voltage conversion in order  to  save  energy. As  for 

customers with demands for highly integrated power management, UMC 

can provide a complete silicon IP platform compatible with the standard 

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

process  technologies  that  integrate  world-class,  third  generation  low 

conduction  resistance/high  sustained  voltage  (5V~200V)  devices  that 

can  be  used  for  cell  phone,  tablet  PC,  appliance,  vehicle  applications, 

are  essential  for  most  applications.  Auto  chips,  MCU  applications  and 

consumer  products  such  as  touch  control  applications  all  require  the 

support of embedded flash technology. In addition to the successful mass 

production  of  0.18um  and  0.11um  technologies,  55nm  embedded  flash 

memory has successfully entered the mass production stage. The MCU 

products equipped with 40nm embedded charge trap (eCT) flash memory 

is  also  in  mass  production,  as  well  as  40nm  technology  platform  with 

SST (Silicon Storage Technology) embedded SuperFlash® non-volatile 

memory,  which  has  entered  small  volume  pilot  production  in  order  to 

provide customers with better performance and higher density memory. 

UMC  has  begun  developing  a  28nm  SST  embedded  SuperFlash® 

non-volatile  memory  platform  and  researching  new  materials  for  flash 

memory such as ReRAM, in order to meet customer demands for higher 

specifications.  Embedded  flash  memory  is  embedded  on  UMC’s  logic 

technology  platform,  such  that  the  silicon  IP  on  all  logic  technology 

platforms  can  support  the  SoC  design  of  our  customers  to  further 

etc. UMC has also begun developing a BCD+NVM technology platform 

enhance industry competitiveness. 

as  a  complete  SoC  solution  for  energy-saving  demands.  UMC  0.11um 

BCD-Flash platform technology will be released in 2021 for customers’ 

design-in and tape-out.

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

For  CMOS  image  sensor  technology  development,  UMC’s  65nm 

process has been verified to enter the mass production stage. The new 

processes, such as back-illuminated sensor (BIS) and 55nm CIS process 

technologies,  have  entered  the  verification  stage.  This  technology  is 

expected to provide higher sensing resolution to meet product upgrade 

requirements. With the rising popularity of MEMS sensor applications, the 

demand for CMOS-MEMS pure-play foundry service has also increased. 

For MEMS microphone, several customers taped out new products using 

UMC’s  MEMS  microphone  reference  process,  and  volume  continued 

to grow steadily. The second generation of CMOS-MEMS gas sensors 

Mixed Signal/RF Foundry Design Kit

Foundry  design  kits  can  provide  IC  design  houses  with  an  automated 

design  environment  to  eliminate  unnecessary  human  manipulation  to 

ensure the success of their chip design. UMC’s complete mixed signal/

RF  design  flows  for  different  processes  cover  both  the  frontend  and 

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

design  and  simulation  of  circuit  level,  circuit  layout,  layout  verification, 

and precise RF device mode. In the frontend flow, UMC’s fundamental 

devices  of  its  mixed  signal/RF  process  are  executed  using  a  general 

design environment and simulation tools. In the backend flow, it covers 

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

provide an automated and complete design flow. Meanwhile, a callback 

function  is  provided  during  the  design  flow  to  reduce  the  data  input. 

Design houses can enhance the productivity and reduce the risk of error 

has also entered the mass production stage. Regarding RFSOI process 

via this flow.

technology,  its  unique  substrate  characteristics  can  prevent  high-

frequency signal harmonic frequency distortion and reduce power loss. At 

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

UMC  has  worked  with  EDA  vendors  to  provide  its  customers  with  a 

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

parameterized  spiral  inductor  design  kit  based  on  full-wave  simulation 

it  is  qualified  through  a  stringent  Electrostatic  Discharge  (ESD)  test  to 

– VIL (Virtual Inductor Library). VIL can allow RF CMOS design houses 

help customers design competitive products that can pass the ESD test 

to create and simulate the customized inductors compatible with UMC’s 

with  voltage  as  high  as  4kV.  So  far,  numerous  customers  have  taped-

process.  VIL  is  established  based  on  UMC’s  EMDM  (Electromagnetic 

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

Design Methodology) such that engineers can easily and precisely create 

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

any RF structure. EMDM allows design houses to have more flexibility to 

provides  customized  embedded  flash  memory  (eFlash)  IP  on  various 

create new geometric modes via editing parameters such as diameter, 

process generations according to customer needs and has successfully 

turn, width, and track pitch.

helped customers with quick market entry for their products. In addition 

In addition, UMC’s foundry design kit includes Optimum Inductor Finder 

to UMC made IPs, the Company has also established partnerships with 

(OIF). OIF allows design houses to quickly and precisely create a large 

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

amount  of  calibrated  inductor  design  libraries  with  respect  to  UMC’s 

volatile memory IPs, and diversified analog/mixed signal IPs that support 

process. Meanwhile, OIF also allows users to use software to execute 

industrial  standard  interfaces  (such  as  USB,  DDR,  and  HDMI).  This 

the optimized inductor via several simple steps. For example, customers 

year UMC has extended its long-term IP cooperation with all leading IP 

can define desired inductance coefficients to reach the balance between 

vendors to 22nm and 14nm processes in order to provide customers with 

quality  factor  and  area.  OIF  can  select  a  design  that  best  fits  the 

a competitive design support environment.

specifications from the inductor design library within the shortest amount 

of time.

Silicon IP Support

Intellectual Property

Facing  increasing  technological  competition,  UMC  has  significantly 

strengthened  patent  filings  to  protect  intellectual  property  in  addition  to 

Along  with  the  design  trends  toward  more  precise  deep  sub-micron 

greatly  enhancing  technological  capabilities  in  critical  fields.  Following 

generation  processes  and  increasing  design  complexity,  foundry  can 

the  Company's  operation  and  development  planning,  the  Company’s 

no longer only focus on process yield improvement, but must also help 

IP  division  has  formulated  strategies  and  plans  for  the  protection  and 

customers  shorten  their  design  flow  and  reduce  design  cost.  In  terms 

development of intellectual property to promote the steady growth of the 

of library design kits, UMC strengthens its design support capability by 

number of patent rights. Status on the implementations is reported to the 

constantly providing optimized library design kits closely integrated with 

board of directors at least once a year. The Company was granted a total 

the Company’s process technology in order to help designers accelerate 

of 484 domestic and foreign patents in 2020, 271 of which are US patents, 

the completion of their chip design. From mature to advanced process 

96 ROC patents, and 117 China patents. The total accumulated number 

technologies  to  specialty  processes,  UMC  can  provide  complete 

of UMC’s patents is 13,991, which can provide a thorough and strong IP 

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

foundation for UMC’s technologies. To keep this competitive edge, UMC 

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

has greatly increased the quality and quantity of critical technology patents 

for  advanced  processes  can  provide  devices  of  various  operating  and 

in order to further strengthen customer service and competitiveness while 

threshold voltages (Vt). Along with low power library kits, they can meet 

helping them to create profits.

various customer needs for design flexibility and high performance/low 

126

United Microelectronics Corporation  |  Annual Report 2020Long-Term and Short-Term Business Plans

UMC  is  committed  to  delivering  comprehensive  wafer  fabrication 

Facing market requirements for continuously advancing semiconductor 

solutions to its customers based on cooperation with partners in the entire 

technology, in addition to UMC’s own technology R&D, the Company 

supply  chain,  including  suppliers  of  equipment,  automated  electronic 

will work with strategic partners and supply chain vendors to jointly 

design tools, wafer design service, silicon IP, and packaging and testing. 

develop 3D chip integration technologies. UMC will also continue raising 

The  Company  provides  customers  with  verified  reference  flows,  broad 

environmental protection awareness and care for the environment. In 

silicon IP combinations, free design cell library databases, and diversified 

addition to establishing a low carbon and green chemical supply chain, 

options for packaging and testing. With advanced process technologies 

UMC is dedicated to the support of various environmental protection 

and world-class 12-inch wafer fabrication technology, UMC can assure 

activities and the promotion of environmental protection education. 

Outstanding UMC Achievements in 2020

•  UMC Leads all Semiconductor Foundries with CDP “Leadership Level”  

  Designation  on  Global  Climate  Change  Assessment 

for  4th  

  Consecutive Year

•  UMC  Ranked  Top  5%  in  Corporate  Governance  Evaluation  for  6th  

  Consecutive Year

•  UMC Honored by Texas Instruments 2019 Supplier Excellence Award

•  UMC  Selected  as  a  DJSI  Global  Component  for  13th  Consecutive  

  Year

•  UMC Named 2020 “Taiwan Enterprise Sustainability Platinum Award”  

  Winner for the 3rd Consecutive Year.

•  UMC  Awarded  with  “National  Enterprise  Environmental  Protection  

  Award” for the 18th Consecutive Year.

•  UMC  Awarded  with  “Corporate  Continuous  Improvement  Activity”  

honors for the 17th Consecutive Year.

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

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  products  on  process  technologies  above  14nm,  UMC’s  rich 

technology platforms at various process nodes and diversified specialty 

technologies can meet all requirements of primary market applications. 

At  the  same  time,  the  Company  continues  to  conduct  structural 

productivity enhancements and manufacturing capacity optimization of 

8-inch and 12-inch fabs to embrace new opportunities, improve revenue 

and improve ROE. 

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 2021 is expected to be approximately USD 

1.5 billion. In order to expand business scale, UMC is looking for existing 

fabs which are for sale, and will evaluate the possibility to acquire it, 

because acquiring an existing fab is more effective to meet UMC growth 

strategy -- to expand cost-effective capacity for competitiveness.

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Operations Overview 
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 customers 

•  UMC is optimistic about the demand for chips in the future market of  

covering all global regions. The sales regions of the Company’s products 

  mobile  communication  and  computers;  thus  proper  and  cautious  

are mainly Asia Pacific and North America, which account for 57% and 

capital expenditure to promote the R&D of related processes and the  

30% of our operating revenues, respectively. Europe and Japan accounted 

  expansion of production capacity has been conducted. The Company  

for  13%  of  our  operating  revenues.  In  the  future,  UMC  will  continue  to 

  has also actively deployed its specialty technology solutions, such  

strengthen  its  cooperation  with  world-class  customers  and  emerging 

  as  high  voltage,  embedded  flash  memory,  advanced  packaging,  

potential start-up companies in all regions and focus on the development 

  RFSOI, etc., to continue working with leading customers to pursue  

of high-end products for customers in order to ensure consistent medium 

  more products. UMC is committed to providing sufficient production  

and long-term company growth.

capacity and to establish an open technical platform with its back-end  

Market Share

  packaging and testing partners to provide proper services. 

•  The overall structure of Taiwan’s semiconductor industry is complete,  

UMC is a world leading semiconductor wafer foundry. The total revenue 

  exhibiting world-leading competitiveness in terms of both operational  

of the global pure-play wafer foundry market in 2020 was approximately 

  efficiency and cost. Taiwan’s semiconductor industry competitiveness  

USD 75.4 billion. According to the estimation by market survey institution 

combined with UMC’s technical edge results in a positive multiplier  

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

  effect for the Company.

and  its  main  competitors  are  TSMC,  Globalfoundries,  Samsung  and 

SMIC.  In  2020,  the  total  operating  income  of  these  four  companies 

Favorable Factors for Development Outlook

accounted  for  81.4%  of  the  total  pure-play  wafer  foundry  market.  UMC 

Considering the continuous growth of the IC industry, the ideal position 

overtook  Globalfoundries  for  second  place  and  is  behind  TSMC  (note: 

of pure-play wafer foundry, and the company’s competitiveness, the 

revenue of Samsung Foundry doesn’t include income from Samsung LSI 

favorable factors of long-term company development are summarized as 

in-house ASIC business).

follows:

•  Under the vertical division of labor trend of IC design and fabrication,  

Future Supply-Demand Status and Market Growth

there  has  been  prosperous  development  of  the  pure-play  wafer  

•  According to the market survey of Semiconductor Industry Association  

foundry market and growth of global demand for pure-play wafer  

(SIA), the total sales revenue of the semiconductor industry in 2020  

foundry services.

  was close to USD 433.0 billion, which has grown by 5.1% from 2019.  

• 

IDMs have adopted the strategy of outsourcing to wafer foundry, thus  

  The semiconductor sales revenue in 2021 is expected to rebound with  

contributing to the growth of the pure-play wafer foundry market.

  8.4%  growth  to  reach  USD  469.0  billion.  According  to  the  market  

•  Forming strategic alliances with major international companies and  

survey of Semiconductor Industry Association (SIA), the sales revenue  

system companies to acquire long-term stable orders.

  breakdown  of  the  semiconductor  industry  by  region  in  2020  was  as  

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

follows:  North  America  at  21.5%,  Europe  at  8.4%,  Asia  (including  

  business development capability can result in outstanding operational  

  China) at 61.8%, Japan at 8.3%.

  performance.

•  Looking  forward  to  the  driving  force  behind  the  pure-play  foundry  

•  UMC is one of the most active in the foundry industry in developing  

  market  growth,  the  growth  momentum  of  fabless  design  companies  

  12-inch wafer fab manufacturing capabilities, owning a 12-inch fab in  

typically outpaces the semiconductor industry, and IDMs have adopted  

the Southern Taiwan Science Park, one in Singapore, another in 

  or raised the ratio of wafer fabrication outsourcing to save costs and  

  Xiamen, China, and acquiring its latest one in Japan. As for the future  

reduce market risk. Both of these factors have contributed to the high  

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

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

  expanded  according  to  customer  needs  and  market  application 

  of the pure-play wafer foundry industry is expected to be better than  

 trends.

the overall semiconductor industry.

• 

In response to the ongoing trends of electronic products, UMC has  

  developed  specialty  technologies  including  embedded  memory,  

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United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Overview of Market, Production, and Sales (Continue)

  mixed signal, RF, MEMS sensor, and high voltage to meet customer  

•  UMC  RFSOI  technology  is  based  on  a  CMOS  process  to  meet  

  demand for process technologies and to establish a leading position  

cost effective and strict technology requirements for the smartphone  

for UMC technology development.

  market. The RFSOI technology platform provides RF N-gate/P-gate  

•  UMC has established the most powerful specialized IoT platform  

  MOS and scalable advanced RF modeling to precisely predict the  

solution  in  the  industry  and  provided  an  ultra-low-power  (ULP)  

circuit characteristics of the process. High-density and high-voltage  

  process with extremely low current leakage design suitable for all  

  MIM, scalable inductor and high-precision resistors will provide UMC  

kinds  of  hybrid  process  technologies.  IoT  chip  designers  can  

customers with the best design and cost advantage.

integrate various process schematics to the customized platform  

•  The  process  platform  of  40nm  integrated  with  Silicon  Storage  

  based on UMC’s low power consumption technology in order to  

  Technology (SST) embedded SuperFlash® non-volatile memory  

  meet  the  specific  requirements  to  enter  the  IoT  and  wearable  

is 20% smaller than the mass production 55nm unit, and the total  

  electronic device markets.

  memory area has been reduced by 20%~30%. There have been more  

•  UMC developed an advanced 28nm eHV (embedded High-Voltage)  

than 30 customers and products manufactured at all stages based  

  process, and successfully mass-produced AMOLED display driver  

  on UMC’s 55nm SST embedded flash memory process, including  

ICs. Compared to previous-generation technologies, display drivers  

  SIM card, financial transaction, automobile, IoT, MCU, and other  

  designed using 28nm eHV could improve the power efficiency of  

  product applications.

smart phone screens. Looking forward, the rising demand of 5G  

•  The MEMS gas flow sensor process platform jointly developed by  

smart phones is expected to bring considerable revenue growth.

  UMC and one of its customers is in successful mass production and  

•  UMC developed advanced 28nm technology, including Poly-SiON  

  has been provided to end customers in various fields, including  

  and  high-K  metal  gate  processes,  which  have  already  been  

smart  home  appliance  and  IoT.  Currently  the  customer  has  

  mass-produced successfully for many logic/RF products. Besides  

successfully sent samples to major brand makers to be tested.

these, an automotive-grade process was also qualified and related  

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

IP is ready, with many customers designing-in now.

to  customers  requiring  advanced  packaging  technology  under  

•  UMC’s  22nm  technology  process  provides  customers  further  

the environment of an open supply chain cooperative development,  

  advantage  for  cost-saving  and  improved  device  efficiency.  The  

  a complementary and complete platform can be formed to provide a  

  process design kit has been released to customers; UMC expects  

reliable 2.5D/3D IC solution for the semiconductor market.

this process will extend the Company’s long-term competiveness.

•  Besides advanced silicon processes aimed to address higher voltage  

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

  and higher frequency device requirements of 5G, UMC developed  

  entered mass production for customer chips in early 2017. The yield  

  new  semiconductor  materials  as  well,  including  GaAs  that  has  

for shipments to primary customers has reached industry competitive  

  already  entered  mass-production  and  GaN  for  high-power  

levels  for  this  highly  advanced  process.  Being  one  of  the  few  

  applications in 5G communications. The Company expects to have a  

foundries in the world to achieve 14nm production capabilities, UMC  

  place  in  3rd-generation  semiconductor  materials,  which  will  

  has fully demonstrated the advantages of 14nm FinFET in terms  

contribute to future revenue.

  of efficiency, power, and gate density in order to drive next generation  

ICs  in  the  fields  of  communication,  AI,  and  various  consumer  

  products. UMC’s 14nm FinFET is 55% faster with twice the gate  

  density of 28nm, while power consumption is reduced by around  

  50%.

•  UMC developed a mmWave process technology–on nodes ranging  

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

low power platform. The Company is developing 22nm ultra low  

  power/ultra low leakage process technology, which offers customers  

  more choices for their product planning to meet reliable, low power  

  and cost-effective requirements.

129

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

Unfavorable Factors for Development Outlook

•  Diversification  of  customer  regions  and  products  can  lower  the  

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

impact of the trade war. Besides existing strong business from China  

semiconductor demand, all major global pure-play wafer foundries  

  and the U.S., UMC plans to expand more business from Europe,  

  and China have increased their capital expenditures for expansion of  

Japan, Korea, etc. To avoid the uncertainty of previous high growth  

  production capacity. UMC will be more cautious in its long-term  

  business from server, automotive and industrial markets, UMC plans  

  demand forecast.

to gain more business opportunities from 5G, IoT, AI, etc.         

•  The negative impact to foundry by COVID-19, include at least 3  

•  Avoiding blind expansion of production capacity; all investment plans  

  possible scenarios: First is to disrupt global semiconductor supply  

  have been carefully evaluated with complete consideration of UMC’s  

chain and the operation of UMC's suppliers, second is the downturn  

  maturity of high-end processes and customer production capacity  

  pressure for global customer's demand, third is potential production  

  demands at various stages.

  delay due to shutdown of factory manufacturing or partial closure of  

• 

In  response  to  the  addition  of  new  competitors,  UMC  continues  

  operation.

to enhance development of advanced processes, and maintains  

•  Among political and economic tensions between international society,  

the existing advantages of stable high yield and complete services.  

countries have been sanctioning competing countries in an attempt  

  The benefits of these are twofold: UMC can increase its lead against  

to inhibit their market expansion and technology development. This  

  new competitors while also creating differentiation such that UMC  

impacts the company’s investment and operation activities. The U.S.- 

can continue to be the best option for its customers.  

  China trade war was caused by a long-term trade deficit between U.S.  

•  Providing  the  most  advanced  and  proper  process  services  with  

  and China, and U.S. concerns about infringement of  intellectual  

respect to IC product characteristics in all application fields in order  

  property  rights  and  business  secrets.  This  trade  war  is  not  

to help customers achieve the goals of lowest cost, high efficiency,  

  expected to conclude in the near future and may even become a  

  and low power consumption.

long-term confrontation. Intervention includes tariffs, closed sales,  

•  Strengthening marketing effectiveness and the customer service  

  policy intervention and government subsidy, etc. The impacts to  

  mechanism in order to continuously improve customer satisfaction. 

  UMC, including a tariff barrier between the U.S. and China, will lower  

•  Strengthening  the  development  of  long-term  partnerships  with  

semiconductor demand from the U.S., China and even worldwide,  

customers,  providing  competitive  advanced  processes  and  

  with  customers  reducing  orders  and  a  weakening  global  

  production capacity, helping customers expand their market share,  

semiconductor market. U.S. regulation to stop foreign shipments of  

  and growing together with customers in order to seize the opportunity  

  products  containing  U.S.  technology  to  China’s  companies  will  

  of new growth waves.

  possibly impact UMC’s shipment to China’s customers. High-tech  

•  Taking countermeasures at all times to respond to constant market  

  material export bans bring uncertainty to UMC’s production and time- 

variations while facing global recession. Expanding customer bases,  

to-delivery. U.S. trade bans on specific companies in China will  

improving  product  mix,  and  further  enhancing  the  flexibility  of  

  possibly lead to supply chain re-arrangement, which will result in  

  production  capacity  allocation  in  order  to  mitigate  the  impact  of  

tighter foundry capacity allocation.

  periodic demand fluctuation.

Countermeasures

•  Continuous cost saving and efficiency enhancements to effectively  

reduce  costs,  and  cautiously  and  effectively  expanding  the  

  production  capacity  of  advanced  processes;  strengthening  the  

competitive edge of the Company by increasing the ratio and product  

  mix towards high-end processes. 

•  Acquiring existing fabs through a more flexible strategy to expand the  

footprint  of  fab  capacity  through  investment  participation  and  

strategic alliances to reduce the time, risk, and cost of construction  

  of new fabs and to serve local markets. 

130

United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Overview of Market, Production, and Sales (Continue)

Important Purposes and Production 
Processes of Main Products
Main Process Technologies and Corresponding Products

•  RFSOI  process:  for  fabricating  wireless  front-end  chips,  such  as  

  wireless switch, tuner used by mobile phones, WLAN, and wireless  

•  CMOS  Logic:  for  fabricating  chips  that  execute  logic  computing  

  base station. 

functions, such as programmable gate array, multimedia processor,  

•  GaAs process: for power amplifier IC of handset and base station.

  and application processor chips.

•  GaN process: for RF IC of power amplifier IC, LNA in 5G base station,  

•  Mixed-Signal: 

for 

fabricating  chips  which  can  simultaneously  

  and  DC-DC  converter  in  high-power  portable  battery  charger  in  

  process  analog/digital  mixed  signal,  such  as  ICs  for  broadband  

  handset,  tablet,  and  notebook,  power  supply  of  workstation  and  

  access communication and optical storage.

server, and DC-DC converter in EV.

•  RF  CMOS:  for  fabricating  high  frequency  wireless  communication  

•  3D  IC  package:  for  many  applications  in  HPC,  5G,  datacenter  and  

chips, such as ICs for cellphone RF transceiver, Wireless Local Area  

  automotive. 

  Network (WLAN) and Bluetooth.

•  Embedded Memory: for fabricating integrated logic and memory chips  

Production and Fabrication Process

for high performance with low power consumption, such as chips for  

A complete IC chip fabrication process can be divided into five processes, 

  micro-controller, touch controller, and smart card. 

including IC design, mask fabrication, wafer fabrication, packaging, and 

•  High Voltage: for fabricating driver ICs for LCD TV, cellphone, tablet,  

testing. UMC has been dedicated to the R&D of advanced IC processes 

  e-paper screen driver IC, and power management IC.

and  specialty  technologies  in  order  to  provide  customers  with  wafer 

 •  CMOS Image Sensor: for fabricating CMOS image sensors used in  

fabrication technologies required by their IC designs.

  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.

131

Operations Overview 
 
 
 
 
Status of Supply of Primary Raw Material

Type of 
Primary Raw 
Material

Silicon Wafer

Primary Suppliers

Market Status of Suppliers

Procurement Strategy

•  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)

These  five  makers  are  the  world’s 
primary  silicon  wafer  suppliers  with 
production  sites  in  the  US,  Japan, 
Germany,  Italy,  Korea,  Taiwan  and 
Southeast  Asia,  who  can  offer 
steady  and  high  quality  silicon 
wafers.

1. The Company has been in long -term procurement  
relationships  with  the  world’s  primar y  suppliers  
in order to ensure the steady access to production  

  material. 
2. In  recent  years  the  ratio  of  procurement  from  
loc al makers has increased maturely, which c an  
reduce the risk of international transpor tation and  

  procurement cost.
3. The Company will convene a supplier management  
  commit tee  meeting  ever y  quar ter  to  evaluate  
  suppliers’ per formance in order to adjust the ratio  
  of procurement from these suppliers. 
4. The Company established a sourcing commit tee  
to implement source integration and development  
  more  ef fectively  and  to  gain  the  most  benef it  of  
  cost reduction.

Major Suppliers

2020

In Thousand NTD

2019

Name

Supplier “ A”

Others

Net Purchase

Amount Percentage of 
Net Purchase

Relation to UMC

Amount Percentage of 
Net Purchase

Relation to UMC

5,329,822

41,767,109

47,096,931

11

89

100

None

5,675,751

35,982,480

41,658,231

14

86

100

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

Customer “A”

Others

Operating Revenues

Amount

Percentage 
of Operating 
Revenues

20,380,814

156,440,100

176,820,914

12

88

100

2020

Relation to UMC

Amount

None

17,576,293

130,625,348

148,201,6 41

In Thousand NTD

2019

Relation to UMC

None

Percentage 
of Operating 
Revenues

12

88

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” increased.

132

United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
 
 
Production Figures

Segments

Unit Capacity

Production 
Quantity

Production Value 
(In Thousand NTD)

Capacity

Production 
Quantity

Production Value 
(In Thousand NTD)

2020

2019

9,188

8,893

133,991,069

8,148

7,229

123,055,291

-

133,991,069

227,873

123,283,164

In Thousands 
of 8-inch Wafer 
Equivalents

Wafer 
Fabrication

New Business

Total

Sales Figures

Segments

Unit

Shipments

Amount 
(In Thousand NTD)

Shipments

Amount 
(In Thousand NTD)

2020

2019

Wafer 
Fabrication 

New Business

Total

Note: Net Sales.

3,705

5,208

In Thousands 
of 8-inch Wafer 
Equivalents

Domestic

Export

Domestic

Export

Domestic

Export

63,829,608

106,055,593

468

3,226

63,830,076

106,058,819

2,977

4,212

Industry Specific Key Performance Indicators

KPI

Utilization Rate

Wafer Sales Contributed from 40nm and below 
Technologies

Target

89.6%

33.7%

Actual

96.9%

36.9%

53,190,058

89,434,961

17,627

26,118

53,207,685

89,461,079

2020

Difference

7.3ppts

3.2ppts

133

Operations Overview 
 
 
 
 
 
 
 
 
 
 
 
2021

11,361

805

 3 

7,116 

2020

 11,377

 795

3

 7,211

2019

 11,328

 809

 24

 7,416

19,285

  19,386

  19,577

2021

37.9

2021

11.3

2020

  37.7

2020

 11.2

2021

2020

 1.5 

  27.2 

 49.2 

 22.1 

 1.5

  27.2

 49.0

 22.3

2019

  37.1

2019

 10.5

2019

 1.6

  28.1

 47.6

 22.7

Employees

Number of Workers

Engineers

Administrators

Clerks

Technicians

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 2021 was gathered until February 24, 2021.

134

United Microelectronics Corporation  |  Annual Report 2020Environmental Expenditure Information

By  the  publication  date  of  the  2020  annual  report,  all  audits  on  UMC  by 

spent on annual environment monitoring to track the overall emission of 

environmental  protection  agencies  showed  results  in  compliance  with 

pollutants.  In  addition,  in  response  to  RoHS  (Restriction  of  Hazardous 

regulatory requirements with no environmental protection violations or any 

Substances),  around  NTD  570,000  has  been  spent  on  continuous 

penalty or loss resulting from environmental pollution.

certification of the QC-080000 IECQ HSPM system, product inspection, 

UMC  has  identified  environmental  risks  during  the  operational  process 

and educational training.

according  to  the  spirit  of  international  environmental  management 

In the future, the Company’s primary environmental protection expenditures 

system (ISO14001) standards, based on which corrective and preventive 

and items will include: 1. Costs of replacement, renewal, and upgrade of existing 

measures can be continuously conducted, including equipment hardware 

pollution prevention equipment; 2. Operational costs of pollution prevention 

improvement,  enhancement  of  personal  educational 

training,  and 

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

strengthening of operating system management.

In  2020,  the  total  environmental  protection  related  expenditures  for 

all  UMC  fabs  exceeded  NTD  2.17  billion.  The  environmental  related 

expenditures  include  investment  in  highly  efficient  pollution  prevention 

technology  and  preventive  equipment,  totaling  NTD  710  million.  The 

monthly pollution prevention expenses and O&M of pollution prevention 

equipment exceeded NTD 88.8 million, while the monthly waste disposal 

cost  exceeded  NTD  20.4  million.  Meanwhile,  NTD  17  million  has  been 

Labor Relations

UMC  has  consistently  valued  employee  benefits  and  welfare,  and  has 

and health, labor relations, and the national excellence award for friendly 

actively  cultivated  talent,  implemented  labor  laws  and  regulations, 

workplace. Among these awards, the Special Distinction Award was given 

protected  employee  rights  and  interests,  and  created  a  bright  and 

by the Hsinchu Science Park Bureau for Excellent Workplace Equality and 

pleasant  working  environment.  UMC  complies  with  various  local  laws 

Southern Taiwan Science Park Bureau for Advanced Workplace Equality.

and regulations, and strengthens employee awareness to prevent labor 

At  the  same  time,  UMC  also  won  various  corporate  sustainability 

disputes.  Through  channels  such  as  labor-management  meetings, 

awards  in  2020.  For  corporate  sustainability,  UMC  ranked  in  the  top 

divisional meetings, forums, suggestion boxes, grievance hotlines staffed 

5%  for  corporate  self-governance,  and  has  won  the  Taiwan  Corporate 

by  complaint  specialists,  and  communication  management  units,  the 

Sustainability  Platinum  Award,  Ministry  of  Economic  Affairs  Energy 

Company has achieved competent communication and effective problem-

Saving  Benchmark  Award  and  National  Enterprise  Environmental 

solving.

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

In  addition  to  effectively  maintaining  harmonious  labor  relations,  UMC 

Sustainability Index (DJSI) for 13 consecutive years.

respects and promotes international human rights by providing employees 

From  recent  years  to  the  publication  of  this  annual  report,  UMC 

with  a  quality  employment  environment.  Moreover,  in  UMC  and  all  its 

has  not  suffered  any  loss  arising  from  labor  disputes.  In  view  of  the 

subsidiaries,  the  management  and  implementation  of  labor  relations 

abovementioned comprehensive system and diligent management, UMC 

such as employee welfare measures, in-service education, training and 

can continue to effectively avoid labor disputes or losses.

retirement  systems  are  planned  and  conducted  in  accordance  with  or 

above and beyond the requirements of law. UMC has also set up in-house 

physicians to provide medical services and quality counseling services for 

the physical and mental health needs of employees, thereby promoting 

harmonious labor relations.

UMC is committed to providing employees with a safe and friendly working 

environment. Through continuous efforts, UMC has received numerous 

awards  from  the  Science  Park  Bureau  for  promoting  workplace  safety 

135

Operations OverviewEducation and Training

High-quality talent is the cornerstone of UMC's competitiveness, and 

  proposal  improvement,  project  management,  problem  analysis  

comprehensive  talent  development  and  cultivation  are  the  keys  to 

techniques, statistical process control and experimental design.

improving human resource quality. UMC's human resource cultivation 

•  Language Training: Employee language proficiency is determined  

policies  are  tailored  according  to  the  career  development  needs  of 

through  language  testing.  Training  programs  targeting  specific  

employees in their particular job type and rank. The policies provide 

learning needs are then provided accordingly to strengthen employee  

systematic training for all employees, such as new employee, technical, 

language skills and workplace competitiveness.

management, quality control and language courses. In addition, a wide 

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

range of learning resources such as online learning courses, on the 

that  integrates  all  course  information,  training  systems  and  data  

job training (OJT) and in-service training are also offered to provide all 

  enquiries. The online platform enables employees to easily access  

employees with a working environment that is conducive for continuing 

  needed  information  for  planning  and  learning  without  schedule  

development. In 2020, UMC conducted a total of 7,368 training sessions, 

  constraints.

totaling 12,511 hours of training, with 168,064 participants and total 

•  On the Job Training: Each fab has an Education Committee to provide  

training expenses of NTD 54,309,728.

training for employees in the various divisions. The training is based  

The following is a summary of training courses provided by UMC:

  on skills required by specific jobs and professional skills assessment  

•  New Employee Orientation: To help new employees quickly adapt to  

to  ensure  that  employees  have  the  required  job  competencies.  

the  work  environment,  orientation  training  is  provided  for  new  

  Additional training based on individual differences is also provided to  

  employees  to  give  them  a  basic  understanding  of  semiconductor  

improve the quality of work. The Human Resource Division conducts  

  processes and establish a common language. In addition to basic  

  an annual review of training outcome to determine and direct the  

  courses on company organization, remuneration and benefits, basic  

  operations of the Education Committee in each fab, and convenes a  

  daily necessities and industrial safety, U-Camp courses on workplace  

training outcome meeting so that the fabs can share their experience.

  stress management and adopting a positive attitude also help new  

•  In-service Training: UMC provides information on in-service courses  

  employees understand the spirit and values of UMC. To help new  

  offered by outside colleges and universities, promotes educational  

  employees quickly develop professionalism and an appropriate job  

resources and offers subsidies for in-service training to encourage  

  attitude, they are paired with a mentor to help them quickly integrate  

  employees to develop the professional competencies or management  

into the corporate culture.

  skills required at each stage of their career.

•  Technical  Training:  To  help  engineers  quickly  master  the  overall  

•  Business  Ethics  Training:  To  enhance  the  behavioral  literacy,  

technologies  and  continue  to  advance  technologically,  UMC  has  

  professional ethics and professional competence of UMC and all its  

  a comprehensive training blueprint for engineers that is specific to  

  employees, courses on employee ethics, insider trading prevention  

  divisional attributes. The curriculum includes basic courses (General  

  and  conflict  of  interest  are  conducted  within  the  Company  and  

to  Level  2  courses)  and  advanced,  technology-specific  themed  

  promoted in the Planning Section of the UMC intranet site. To gain  

  seminars (Level 3 - 4 courses) to enhance the technical capability of  

  public trust, all employees (including high-level executives and other  

the engineers and develop a system of internal experts. In addition,  

  managers in the operation team) are expected to abide by the ethical  

to equip employees with multiple skills and promote cross-divisional  

  spirit of the Company in their daily tasks and businesses, thereby  

  cooperation,  UMC  continues  to  promote  inter-divisional  training  

  ensuring the sustainable growth and development of the Company.

  courses    to  increase  the  depth  and  breadth  of  professional  and  

To ensure effective training direction and implementation, the Human 

technical training for employees. Furthermore, curriculum content  

Resource  Division  develops  education  and  training  projects  in  the 

is continuously improved to meet the rapid changes and progress of   

fourth quarter of each year according to annual company-wide policies, 

technology.

the  General  Manager's  directives  for  training  focus  and  direction, 

•  Management Skills Training: Management skills development is an  

and  company-wide  survey  of  training  needs.  The  projects  include 

important task for supervisors at all levels. To this end, UMC provides  

company-wide,  cross-divisional  and  divisional  training  programs. 

  a series of courses targeting competencies relevant to supervisors,  

Program implementation is reviewed each quarter, and corrective and 

  such  as  management  behavior,  skills,  knowledge  and  corporate  

improvement measures are proposed for unachieved goals to ensure the 

  culture integration. To assist supervisors with achieving cooperation  

effectiveness of specific employee training.

in their work and management, learning resources such as foreman/ 

  sectional chief, grassroots supervisor, middle-level supervisor and  

UMC believes that creating a high-quality work and learning environment 

  senior executive training courses are conducted.

can increase employee performance output and retention, and that high-

•  Quality Training: Training courses relevant to UMC quality policies and  

quality employees who continue to develop are the key foundation to the 

  quality requirements are conducted, such as knowledge management,  

sustainable development of UMC.

136

United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee Benefits

Employee Welfare System

•  Accommodation and transportation assistance: UMC provides safe  

UMC believes that employees are the most important assets of the 

  and comfortable accommodations for both direct labor and indirect  

Company, and that a company can continue to develop and progress 

labor. Free scheduled transportation and shuttle services are also  

only with appropriate and sufficient talent. To this end, UMC is committed 

  provided for convenient and quick connections.

to creating a healthy workplace environment. In addition to providing 

At the same time, the UMC Welfare information platform was optimized 

competitive salaries and dividends, a comprehensive education and 

in 2018 with the introduction of the Welfare Club APP; through GPS, 

training  system,  diverse  benefits  and  a  safe  and  healthy  working 

employees can instantly find contract stores, thereby further enhancing 

environment,  UMC  has  also  developed  a  comprehensive  employee 

their after-work life.

welfare  system  in  accordance  with  local  laws  and  regulations  and 

UMC  also  holds  employee  health  in  high  regard,  and  plans  and 

regional needs.

implements  benefits  in  accordance  with  or  above  and  beyond  the 

UMC provides a variety of welfare measures as follow:

requirements  of  the  law.  For  example,  UMC  complies  with  the  Act 

•  Nutritionally  balanced  and  delicious  meals:  Each  fab  has  its  

of Gender Equality in Employment, the Regulations for Establishing 

independently operated cafeteria and a variety of meal options. By  

Measures  of  Prevention,  Correction,  Complaint  and  Punishment  of 

  combining the cafeteria, cafe and convenience store into an integrated  

Sexual Harassment at Workplace, and regulations for leave such as 

  dining area, employees can enjoy healthy and balanced meals.

personal,  sick,  maternity,  paternity,  menstrual,  family  care,  marital, 

•  Fitness Sports Center: UMC operates its own recreation center in the  

bereavement,  occupational  sickness,  annual,  parental  and  nursing 

  Hsinchu science park, and Tainan Fab 12A has the UMC Park Activity  

leaves.

  Center, a multi-purpose sports center gym and the LM Dormitory  

In particular, UMC is the first private enterprise in the country to promote 

  gym.  In  addition,  other  facilities  such  as  gyms  and  aerobics  

a 12-hour rotating shift for its direct labor. Further worth mentioning is 

  classrooms are located in appropriate areas of UMC fabs to reflect the  

the Company’s comprehensive insurance system where from the day 

  concept of a healthy workplace.

of their employment, employees are provided with numerous insurance 

•  Welfare Events: The Welfare Committee routinely organizes events  

services. In addition to labor, health and free group insurance (NTD 2 

(such as Family Day, art activities, movies, trips), and in coordination  

million group insurance and cancer insurance), the spouse and children 

  with  company  celebrations,  organizes  inter-fab  competitions  to  

of employees can enjoy life insurance, accident insurance and group 

  cultivate  team  unity.  At  the  same  time,  other  inter-divisional  and  

medical insurance, and their parents can enjoy accident and medical 

inter-fab activities are held during holidays to enhance employee work- 

insurance, thereby freeing them of worry and enabling them to work their 

life balance.

best for the Company and society.

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

  sports,  arts  and  community  service.  Whether  active  or  more  

  sedentary, employees can choose from a variety of content. In 2020,  

  UMC had a total of 30 clubs and about 2,369 participants.

137

Operations Overview 
 
 
 
 
Employee Benefits (Continue)

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 physical 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 2020, UMC adopted the “2020 Health Care 2.0” 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 guidelines 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  activities  and  education  are  then  organized  for 

employees  accordingly  to  give  them  further  knowledge  and  skills  for 

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

through  occupational  safety  and  health  project  management,  UMC’s 

Health  Center  has  installed  an  internal  reporting  system  for  potential 

occupational chronic injury and disease, with regular hearing inspections 

and  vision  care  programs  to  effectively  prevent  occupational  injuries. 

Moreover, as of 2020, UMC’s IT divisions have integrated their existing 

systems  to  construct  a  customized  personal  Health  Care  System  for 

employees. In addition to checking their own health check reports over 

the  years,  colleagues  can  also  receive  system  notifications  on  the  day 

of  consultation  with  medical  staff,  and  immediately  read  and  confirm 

consultation related information, which improves the timeliness and care 

rate of the medical team’s care. In addition to regulatory annual checkups, 

UMC also offers a variety of preventive screening and health promoting 

activities  such  as  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.

138

United Microelectronics Corporation  |  Annual Report 2020Major Contracts
Supply and Marketing
The Company has signed sales and service contracts with the following 

UMC  maintains  long-term  business  relationships  with  major  wafer 

companies to grasp the current situation of the global market. In addition, 

material suppliers. The main supply and sales contracts are as follows:

Contract 
Type

Contracted Party

Contract Period

Key Content

Restrictive 
Clause

Sales

UMC Group(USA)

Jan. 1, 2019~Dec. 31, 2024

Service

United Microelectronics (Europe)B.V.

Jan. 1, 2018~Dec. 31, 2022

Sales and related service for semiconductor 
products

None

Marketing support service for semiconductor 
products

None

Service

UMC Korea Co., Ltd.

Jan. 1, 2020~Dec. 31, 2020
Jan. 1, 2021~Dec. 31, 2025

Marketing support service for semiconductor 
products

None

Service

HeJian Technology (Suzhou) Co., Ltd. 

Jan. 1, 2020~Dec. 31, 2024

Service

United Semiconductor Japan Co., Ltd.  

Jan. 1, 2020~Dec. 31, 2024

Marketing support service for semiconductor 
products

None

Marketing support service for semiconductor 
products

None

Purchase

Shin-Etsu Handotai Taiwan Co., Ltd.

Indefinite

Wafer material supply

None

Patent and Technology Licenses

UMC  values  and  protects  intellectual  property  rights.  With  nearly  40 

or  technology  patent  holders  to  ensure  that  UMC’s  customers  are  not 

years dedication in earning semiconductor patents, UMC has achieved 

subject to the risk of wafer process infringement. The following are patent 

a predominant position in the semiconductor industry. UMC also enters 

licensing contracts received and given by UMC:

into  patent  or  technology  license  contracts  with  major  semiconductor 

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 CMOS 
and FinFET technology to 
UMC.

None

None

Patent License

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

From Feb. 08, 2018

License for specific patents.

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

Technology 
License

Mie Fujitsu Semiconductor 
Limited

From Aug. 29, 2014

Patent cross-license for 
semiconductor process, 
semiconductor device and 
semiconductor 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.

UMC licensed its 40nm 
process technology to Mie 
Fujitsu Semiconductor 
Limited.

None

139

Operations OverviewMajor Contracts (Continue)

Contract Type

Contracted Party

Contract Period

Key Content

Restrictive Clause

Patent  
Cross-license

Avago Technologies 
International Sales Pte. 
Limited

Sep. 29, 2018~Dec .31, 2023

Patent License

NXP B.V.

Sep. 30, 2015~Sep. 29, 2020

Patent cross-license for 
semiconductor device related 
patents.

Patent license and 
assignment of right for patent 
application.

None

None

Patent  
Cross-license

Katana Silicon 
Technologies, LLC

Technology 
License

United Semiconductor 
(Xiamen) Co., Ltd.

Apr. 01, 2017~Mar. 31, 2022

From Nov. 05, 2019

License for specific patents.

None

Technology 
License

United Semiconductor 
(Xiamen) Co., Ltd.

Nov. 23, 2018~Nov. 22, 2028

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

implemented 

UMC  signed  and 
the 
contract  in  accordance  with  the  scope 
approved by the Investment Commission, 
Ministry of Economic Affairs.

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.

Patent  
Cross-license

Polaris Innovation Limited

From Mar. 20, 2020

License for specific patents.

None

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

UMC signed and implemented the 
contract in accordance with the 
scope approved by the Investment 
Commission, Ministry of Economic 
Affairs.

Construction

Contract Type

Contracted Party

Contract Date

Key Content

Construction

Construction

Wholetech System Hitech Limited,  
Hueng Luei Process Industry Co. Ltd.,
Worldwide Co. Ltd.,
Princeton Precision Industries Co.,  
Ling-yong International Engineering Corporation,
L&K Engineering Co. Ltd. and others.

L&K Engineering (Suzhou) Co., Ltd., 
Wholetech Group (Shanghai) Trading Co.,Ltd., 
Shanghai Nomura Engineering Co, Ltd., 
Hengyuan Allis Electric Co., Ltd. and others.

Construction

Suzhou Topco Construction Ltd.

140

Restrictive 
Clause

None

From Jan., 2020

For building the facilities of Fab 12A in the Tainan 
Science Park, UMC signed construction contracts 
with the vendors including but not limited to those 
major vendors listed in the second column. The 
total contracted amount exceeded NTD 2 billion.

Jan. 01, 2020~
Dec. 31, 2020

May 01, 2019~  
Jun. 30, 2020

United Semiconductor (Xiamen) Co., Ltd. entered 
into construction contracts with the vendors 
including but not limited to those major vendors 
listed in the second column for building fab facilities. 
The total contracted amount exceeded USD 20.95 
million.

HeJian Technology (Suzhou) Co., Ltd. entered into 
construction contracts with the vendors listed in 
the second column for HeJian New Phosphorus 
Wastewater Treatment System. The total contracted 
amount exceeded RMB 13.18 million (excluding tax).

None

None

United Microelectronics Corporation  |  Annual Report 2020Review of Financial Position,  
Operating Results, Risk Management

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

Company’s Finance and Business

144  Main Reasons and Improvement Plans for Recent Annual  

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

145  Risk Management and Evaluation 
154  Other Necessary Supplements

141

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

Current assets

Property, plant and equipment

Intangible assets

Other assets

Total assets

Current liabilities

Non-current liabilities

Total liabilities

Capital

Additional paid-in capital

Retained earnings

Total equity

2020

164,305,911

132,774,663

4,877,913

75,557,888

377,516,375

78,243,526

63,499,747

141,743,273

124,224,015

43,211,214

80,176,360

235,773,102

2019

Differences

Differences(%)

In Thousand NTD

153,757,141

150,374,096

5,198,247

60,857,881

370,187,365

72,714,322

90,258,621

162,972,943

117,575,798

39,550,394

60,820,280

207,214,422

10,548,770

(17,599,433)

(320,334)

14,700,007

7,329,010

5,529,204 

(26,758,874)

(21,229,670)

6,648,217

3,660,820

19,356,080

28,558,680

7

(12)

(6)

24

2

8

(30)

(13)

6 

9

32

14

Analysis of deviation of over 20% between 2020 and 2019:
1. Other assets:
  Due to the increase in investments accounted for under the equity method.
2. Non-current liabilities:
	 Due	to	the	reclassification	of	long-term	loans	to	current	liabilities.
3. Retained earnings:
  Due to the increase in net income for the period.

142

United Microelectronics Corporation  |  Annual Report 2020Financial Performance

Items

Years

Operating revenues

Operating costs

Gross profit

Operating expenses

Net other operating income and expenses

Operating income

Non-operating income and expenses

Income from continuing operations before 
income tax

Income tax (expense) benefit

Net income

2020

176,820,914

(137,823,813)

38,997,101

(23,243,584)

6,253,890

22,007,407 

5,918,772

27,926,179 

(745,767)

27,180,412 

2019

Differences Differences (%)

In Thousand NTD

148,201,641

(126,886,669)

21,314,972

(21,807,284)

5,182,162

4,689,850 

1,045,787

5,735,637 

393,130

6,128,767 

28,619,273 

(10,937,144)

17,682,129 

(1,436,300)

1,071,728 

17,317,557

4,872,985 

22,190,542 

(1,138,897)

21,051,645 

19

9

83

7

21

369

466

387

(290)

343 

Analysis of deviation of over 20% between 2020 and 2019:
1.	 Gross	profit
  Due to the increase in capacity utilization for the period partially offset by the impact of the appreciation of the Taiwan dollar against the US dollar.
2.  Net other operating income and expenses
  Due to the increase in gain on disposal of buildings.
3.  Non-operating income and expenses
	 Due	to	the	increase	in	net	gain	of	financial	assets	and	liabilities	at	fair	value	through	profit	or	loss	caused	by	stock	market	volatility	and	increase	in	 

share	of	profit	of	associates	and	joint	ventures.

4.  Income from continuing operations before income tax
	 Due	to	the	increase	in	gross	profit	for	the	period.
5.	Income	tax	(expense)	benefit
  Due to the increase in income from continuing operations before income tax for the period.

143

Review of Financial Position, Operating Results, Risk Management	
Cash Flow

Analysis of Cash Flow for the Year Ended December 31, 2020

In Thousand NTD

Cash at Beginning of 
Year

Net Cash Flow from 
Operating Activities

Net Cash Flow from 
Investing and Financing 
Activities

Cash at End of 
Year

Remedial Measures for Cash Flow 
Shortfalls

Investment Plans

Financing Plans

95,492,477

65,745,192

(67,189,633)

94,048,036

-

-

Note:  Net cash flow from investing and financing activities includes the effect of exchange rate changes of NTD (1,476,786).

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  
  property, plant and equipment, acquisition of intangible assets and  

increase	in	other	financial	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 and short-term loans and treasury stock sold  

to employees.

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

94,048,036

68,664,416

(68,116,173)

94,596,279

-

-

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

Actual and Expected Sources 
of Funding

Total Amount
(Up To 2020)

Project

Capital Expenditures Plan

In Thousand NTD

2020

2019

Completion 
Status
(Up To 2020)

Wafer 
Fabrication

Production 
Equipment

Cash flows generated from operations, 
bank loans and issuance of bonds

R&D  
Equipment

Cash flows generated from operations, 
bank loans and issuance of bonds

New Business Production and 
R&D Equipment

Cash flows generated from operations 
and bank loans

Completed

41,719,539

25,845,056

15,874,483

Completed

4,112,751

2,245,462

1,867,289

Completed

32,638

13,950

18,688

Expected Benefit from Capital Expenditures
Based on aforementioned capital expenditures, in 2020 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 5% 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, as of December 31, 2020, UMC and its subsidiaries 
have invested about USD 1.37 billion into United Semiconductor (Xiamen) 

Co., Ltd’s 12-inch fab for 28-90nm wafer service to pursue further growth 
of the Company.

UMC’s investment policies are based on long-term strategic investments 
to match the Company’s operations and development.

144

United Microelectronics Corporation  |  Annual Report 2020	
 
 
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 
and Operation

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.	The	Committee	integrates	the	identified	various	risk	items,	including	
strategy,	operations,	finance,	hazards,	etc.,	assesses	the	likelihood	and	
severity	of	their	occurrence,	defines	the	priority	order	and	risk	level	of	risk	
items, and takes response actions for major corporate-wide risk issues. 
And, the committee makes a summary report to the Board of Directors 
every year.
The  management  plan  includes  periodic  reviews  of  the  potential 
occurrence of risks and the potential for changes in severity over time, and 
whether the risk level of major risks is reduced after the implementation 
of countermeasures to grasp the effectiveness of risk management. The 
Committee 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

2021

Not applicable

Not applicable

2022

Not applicable

Not applicable

2023

Not applicable

Not applicable

7% to 10%

7% to 10%

7% to 10%

Latest 
Annual 
Project

14nm process 
technology

22nm process 
technology

28nm Image 
Signal Processor  
technology

Current Progress

finished 

its  14nm  FinFET  process  platform 
UMC 
development.  Customer  product  yield  reach  90%,  passed 
customer product HTOL qualification and entered the mass 
production stage.

For  22nm  ultra-low  power/ultra-low  leakage  technology 
development,  pilot  production  of  customer  products 
has  been  completed.  In  Q4,  2020,  the  mass  production 
milestone  of  customer  DTV  chips  has  been  reached. 
Product optimization is continued and has been expanded 
to automotive electronics applications.

According  to  the  timeline  of  the  28HPCU+  image  signal 
processor  process  development  plan,  the  related  process 
development  and  verification  were  completed,  and  the 
mass  production  milestone  was  reached  in  2020.  Low-
power  high-pixel  image  signal  development  is  proceeding 
as planned.

Time of Mass 
Production

Key Success Factors for Future R&D

R&D Expenses 
Which Should 
Be Invested for 
the Next Two 
Years

NTD 300 million

2020

NTD 600 million

2021

•	 Customer	product	design	verification	and	 
  yield reached mass production levels and  
  performance meets product design 
  targets.

•	 Customer circuit design verification and 
  product yield qualification to meet mass  
  production standard. 

NTD 200 million

2021

•	 Customer	circuit	design	verification	 
  and product yield qualification for mass  
  production.

Embedded 
magneto-
resistive memory

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

NTD 700 million

2021

•	 Customer circuit design verification and  
  product yield qualification to meet mass  
  production standard.

145

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

Current Progress

Latest 
Annual 
Project

Time of Mass 
Production

Key Success Factors for Future R&D

R&D Expenses 
Which Should 
Be Invested for 
the Next Two 
Years

Special 
technology R&D

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

NTD 2.7 billion

2022

Wafer-on-wafer 
hybrid bonding

Development  and  verification  of  wafer-on-wafer  hybrid 
bonding

NTD 200 million

2023

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

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

•	Cooperating with customers to create a  
  win-win situation.
•	Customer circuit design verification.

In  2020,  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 logic 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 Southern Taiwan Science Park with sufficient 
funds for enriching the overall R&D resources. In terms of 14nm process 
technology, UMC finished 14nm FFC platform development. Product 
yield reached 90% and performance met the product design target. 
At the same time, the 14FFC platform process also passed customer 
product	HTOL	(High	Temperature	Operating	Life)	reliability	qualification	
and entered the mass production stage. With the successful rollout of 
5G and Netcom applications, UMC 14FFC has also attracted customers 
to engage new product design-ins, with tape out scheduled in 2021. 
UMC’s R&D team will continue to optimize 14nm to take full advantage of 
the performance, power consumption, and gate density of 14nm FinFET 
in order to drive next generation Internet, AI, and consumer product 
applications. 
The development of a 22nm 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 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. UMC’s 22nm process has been introduced 
to customers and, in Q4, 2020, has reached the milestone of mass 
production of digital TV (DTV) chips for customers. There are further 
plans to continue optimizing the process and expand the application 

146

range of 22nm process products. In 2021, it is expected that more than 
ten customers will apply this platform technology for pilot production of 
Internet of Things (IoT), consumer electronics, industrial applications, 
and wearable (Mobile) products.
UMC’s 28nm high-performance process utilizes high-k/metal gate stack 
technology. The 28nm high-performance computing process (28HPCU+) 
entered  mass  production  in  2020  for  image  signal  processor  (ISP) 
products. The 28HPCU+ millimeter wave  (mmWave) process covers 
high-performance	and	low-power	technology	platforms.	The	verification	
of the millimeter wave chip design process has been completed. UMC 
further extends its SPICE model coverage to 110GHz for mmWave in 
order to serve mobile phone, automotive/industrial radar and 5G FWA/
CPE applications.
For the embedded magneto-resistive memory, this year’s scheduled 
development milestone was completed with high test-chip yield, and 
the Company provided the embedded MRAM macro IP for potential 
customers on its 22ULL platform. 
For  specialty  technologies,  UMC  has  launched  the  development  of 
“More than Moore” processes and successfully provided 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  its 
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 its 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	bank	loans	as	of	December	31,	2020,	if	the	interest	rate	
increases/decreases by 10 basis points, the Company’s net profit for 
2020 will decrease/increase by NTD 44,123 thousand. In order to reduce 
interest rate risk, the Company continues to monitor changes in market 

United Microelectronics Corporation  |  Annual Report 2020Risk Management and Evaluation (Continue)

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 liabilities of risk-avoiding 
management denominated in foreign currencies as of December 31, 
2020, when the NT dollar strengthens/weakens by 10 percent against 
the	US	dollar,	the	Company’s	net	profit	for	2020	will	decrease/increase	
by NTD 1,335,914 thousand. On the other hand, when the Chinese 
Yuan strengthens/weakens by 10 percent against the US dollar, the 
Company’s	net	profit	for	2020	will	increase/decrease	by	NTD	1,625,241	
thousand. When the Japanese Yuan strengthens/weakens by 10 percent 
against	the	US	dollar,	the	Company’s	net	profit	for	2020	will	increase/
decrease by NTD 472,837 thousand.
The Company applies natural hedges on the foreign currency risk arising 
from purchases or sales denominated in foreign currencies, which means 
balancing the assets and liabilities denominated in foreign currencies 
to reduce the impact from fluctuation in foreign exchange rates. The 
Company may use derivatives, such as currency forward contracts, 
to partially hedge foreign currency risks associated with certain highly 
probable forecast transactions. These hedges will offset only a portion 
of, but do not eliminate, the financial impact from changes in foreign 
exchange rates. Furthermore, as net investments in foreign subsidiaries 
are for strategic purposes, they are not hedged by the Company. The 
Company continues to monitor the changes in foreign exchange rates in 
order	to	respond	promptly	to	any	significant	fluctuation.
Inflation
The  inflation  status  in  2020:  Due  to  the  impact  of  the  COVID-19  in 
2020, the price of international crude oil and raw materials fell, causing 
Taiwan’s 2020 annual growth rate based on consumer price index (CPI) 
to fall below that of 2019; however the average consumer price index 
(CPI) in Taiwan was 102.31%, indicating that the overall consumer price 
is	stable,	with	no	deflation.	

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

The Company has not engaged in any transaction of high-risk or highly 
leveraged  investments.  Any  financial  derivatives  transaction  is  to 
enhance the Company’s operating performance and reduce operating 
and	financial	risks.

The  Company  has  established  “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

The  Company  places  significant  importance  on  the  dynamics  of 
the  semiconductor  industry  and  continues  to  invest  and  develop 
semiconductor manufacturing process technology and know-how. In 
order to accelerate the development of logic and specialty technologies, 
optimize  transistor  performance,  reduce  power  consumption,  and 
continuously enhance our technical advantages, UMC invested a total 
of NTD 12.9 billion in research and development in 2020. At the same 
time, the Company is also actively working with external academic and 
government institutions to develop new process technologies for next 
generation product applications to diversify the Company’s process 
technology offerings. The Company invested approximately USD 1 billion 
in capital expenditure during 2020. Looking into 2021, UMC will continue 
to appropriately invest into advanced technology node capacity, optimize 
capacity to enhance product mix and penetrate emerging applications. 
The Company believes that these efforts will create higher customer 
adoption of our logic and specialty technologies and expand UMC’s 
market share to fuel growth. UMC will strive to enhance its operations 
and 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.

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

With UMC’s customers being located all over the world and given the 
Company’s business philosophy of continuously improving its service 
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  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 the acquired company 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  customers  are  given  more  competitive 
foundry solutions. Moreover, UMC’s overall value can be increased and 
shareholder interests can be enhanced.
The main possible risk of cross-border merger and acquisition involves 
integration and compliance with the regulations of various countries, and 
whether the production synergy following mergers and acquisitions can 
meet expectations. If, for some reason, the M&A cannot be successfully 
completed or is unable to achieve the operational synergy target, it 
may affect the company's overall operating performance and even the 
company's long-term growth strategy.
UMC  established  a  dedicated  organization  to  execute  M&A  related 
activities,  with  a  view  of  successfully  completing  equity  purchases 
and M&A and taking advantage of operational synergies. At the same 
time, the Company also makes plans for future sustainable business 
strategies,  and  seeks  the  best  interests  of  all  shareholders  as  the 
direction of continuous efforts. Therefore, in terms of the integration 
and  compliance  of  laws  and  regulations,  UMC  strives  to  meet  the 
requirements  of  the  regulators  to  handle  equity  purchases  or  M&A 
plans. In addition to careful planning and consultation in advance, the 
Company also consults about the merger mechanism with professionals 
from the respective countries; in terms of operational efficiency, the 
Company pays attention to cross-national cultural differences and sets 
up a communication channel at the beginning to establish full trust of 
the employees and customers of the acquisition target; reconciles the 
operation process and calibrates the quality management system to 
smoothly port new processes and new products; plans an expert team 
to promote benchmarking and introduces best practices to maximize 
overall	operating	efficiency.

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 

148

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  satisfying  customer  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 of 
Procurement Concentration

Risk	of	material	shortage:	for	example,	insufficient	production	capacity,	
accident  in  the  factory,  or  natural  disaster  could  result  in  material 
shortage.
Risk  avoidance  approach:  currently  UMC  adopts  a  supplier  self-
management mode, in that these materials are stored in the Company’s 
and suppliers’ warehouses near UMC fabs. The safety inventory level 
is increased to meet emergency demand and to shorten the emergency 
response  time  in  order  to  effectively  reduce  material  shortage  risk, 
and the Company’s operation regulations are formulated according to 
the four subjects of “Risk Assessment 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,	flexibilities	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  “Accident  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 sustained growth of the Company 
can be ensured by combining the competitive edges of UMC and these 
customers. In 2020, the operating revenues of UMC’s top 10 customers 
accounted for approximately 53.7% of UMC’s operating 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 

United Microelectronics Corporation  |  Annual Report 2020Risk Management and Evaluation (Continue)

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  rise  to  investors’  concerns  on 
the operation of the Company and may cause the market price of the 
Company’s	shares	to	fluctuate.
The share withholding status of the Company’s directors and managers 
have	been	reported	based	on	official	regulations	and	laws.	Meanwhile,	
there	has	been	no	significant	share	transfer	activity.

Risk of the Company Losing One or 
More Key Personnel Without Adequate 
Replacement Due to any Change of 
Company Control

UMC’s  future  success  depends  to  a  large  extent  on  the  continued 
service of the Company’s chairman and key executive officers. If the 
chairman	or	key	executive	officers	leave	their	positions	as	a	result	of	a	
change	in	Company	control,	and	qualified	replacement	personnel	cannot	
be found and integrated in a short period of time, operations may be 
adversely affected.
The  Company’s  management  focuses  its  operations  with  the  intent 
to  maximize  value  for  its  shareholders,  thus  gaining  their  trust  and 
recognition. If there were a replacement of management, the succeeding 
personnel would have to recognize corporate culture, be qualified to 
assume professional duties, and be able to execute the Company’s 
policy.

Litigation and Non-Litigation Incidents

On 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 June 12, 2020, an adverse ruling issued by the 
District Court of Taichung in a suit alleged that UMC, two of its current 
employees and a former employee engaged in the misappropriation of 
trade	secrets.		The	Company	does	not	expect	material	financial	impact	
resulting from this claim.  UMC appealed against the sentence.
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.

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 manufacture, sell, and import products that infringe 
the patent rights of UMC.  The court 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 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.  Besides, UMC has suspended the joint 
technology development activities with JINHUA.  With respect to the 
criminal proceedings, on October 22, 2020, UMC filed a sentencing 
memorandum with the court, proposing to plead guilty to a lesser charge 
and to pay a fine of US$60 million.  On October 29, 2020, the court 
approved the above-mentioned sentencing memorandum submitted by 
UMC. The DOJ has dismissed its corresponding civil complaint. UMC 
has	recorded	the	fine	in	non-operating	other	losses.
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 a lead plaintiff counsel 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 has been completed and is now under 
trial.		The	Company	does	not	expect	material	financial	impact	resulting	
from this claim.

Risks Relevant to Intellectual Property

UMC values technology development and respects intellectual property 
rights,  hence  UMC  develops  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. 

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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.
UMC’s ability to compete also depends on its ability to operate without 
infringing  on  third  parties’  intellectual  proprietary  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 
infringement	risks.	Furthermore,	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 business operational concern of climate 
change. The Company 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 a climate change situation, 
and  ISO14090:  Adaptation  to  Climate  Change  and  the  assessment 
procedure in the UK Climate Impact Programme (UKCIP). Adaptation 
and mitigation measures are developed in response to the identified 
climate change risk. 
The inevitable global carbon risk resulting from climate change 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. In addition, 
UMC has also 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 

150

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. 

Green  Energy  Policy  may  Cause  Investment  Pressure 
and Unstable Power Supply Risks for Companies
In response to global climate change mitigation and adjustment actions, 
the Taiwan government has announced its 2025 renewable energy goal 
and asked enterprises that when their contract capacity with Taipower 
company reaches 5,000 kW, 10% of the contract capacity must come 
from renewable energy, such as solar energy, energy storage, renewable 
energy voucher, or face a penalty. To adapt to the operational impact 
resulting from regulatory compliance, UMC proactively plans different 
solutions, such as installing renewable energy generating equipment 
or energy storage equipment, or the purchase of vouchers. Estimated 
annual amortization expense from increased operating costs or capital 
expenditures will not exceed NTD 200 million. Also, even though the 
percentage  of  installed  capacity  for  renewable  energy  is  gradually 
growing  according    to  Taipower’s  website,  there  is  a  considerable 
difference across 27GW targets. If the Taipower generators break down 
and the renewable energy supplies are unstable during peak power 
consumption periods, there may be a risk of power disruption due to 
insufficient backup capacity. Therefore, UMC has provided UPS for 
important production equipment, and plans to replace the existing lead-
acid batteries UPS with lithium ion batteries year by year to improve 
supply stability. In addition, UMC has also established a diesel generator 
safety inventory control mechanism... etc. to strengthen power supply 
resilience.

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 has applied international standards, such as 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 onsite in case of disaster.

United Microelectronics Corporation  |  Annual Report 2020Risk Management and Evaluation (Continue)

Protection Against Natural Disaster
UMC  has  actively  planned  and  established  a  complete  and  sound 
disaster  risk  management  response  procedure.  It  has  worked  with 
world-renowned  structure  consultation  companies  specialized  in 
responding to earthquake disaster, such as EQE (EQE International Inc.) 
and JENSEN HUGHES to include seismic safety of buildings, factory 
facilities, pipelines, and production machines into the design criteria at 
the preliminary stage of fab construction. There are plans for continuous 
improvement of older fabs built prior to 1999. In February 2016, an 
earthquake  of  Richter  scale  magnitude  6.6  took  place  in  southern 
Taiwan, registering close to 6 at UMC’s Fab 12A in Tainan Science 
Park. However, hardware loss was rather moderate compared to other 
companies in the industry, which was an indication of the effectiveness 
of UMC’s seismic design. In addition, UMC has continued to introduce 
new seismic protection technologies, including anti-earthquake damper 
for  buildings  and  seismic  isolation  platforms  for  reticle  stocker  and 
furnace and the establishment of an onsite earthquake early warning 
system for further enhancement of personal safety and reduction of risks 
associated with losses of machine and equipment due to earthquake.

Responses to Extreme Weather

UMC  has  always  been  concerned  about  the  possible  impacts  from 
extreme  weather.  The  Company  has  completed  flood  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 
in advance. Moreover, Taiwan is facing the most serious water shortage 
condition in 56 years. To respond to the possibility of stricter water 
measures  being  imposed  in  the  near  further,  UMC  has  prepared 
supplementary water resources by contracting with water trucks and 
sources, and will align with the reclaimed plant construction schedule 
by the Water Resources Agency, Ministry of Economic Affairs to use 
reclaimed water in the plant. The estimated additional cost for 20% water 
supply restriction will be about NTD 3 million/day.

Safety Protection of Process Equipment

Safet y,  Health,  and  Environment al  Protection  St andards  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 
machines are moved in.

International Risk Rating (Triple-Star Rating System)

UMC  introduced  the  Triple-Star  Rating  System  in  1998,  and  the 
Company  has  since  invited  international  insurance  company  AIG 
(American International Group) to conduct risk audits so that UMC could 
continuously enhance fab protection level in order to be in compliance 

with  international  standards  and  to  maintain  the  commitment  level 
of Highly Protected Risk (HPR) for our customers and the insurance 
market. Aside from some items in older fabs, the ratings of all other fabs 
are maintained at the highest level.

Business  Continuity  Management  (BCM)	
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

•		 The	 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  C ompany  will  keep  good  
    communications 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. 
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.

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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 information security 
is everyone’s responsibility through full awareness, to protect information 
Confidentiality,	Integrity,	Availability	for	the	Company	and	Customer,	and	
to provide a safe production environment to ensure sustainable operation 
of the Company’s business.” The major information security objectives 
are  aimed  at  antivirus,  anti-intrusion  and  anti-leakage  through  the 
building	of	multiple	internal	controls	such	as	firewall,	intrusion	detection	
and antivirus systems to enhance the Company’s ability to defend against 
external attacks. Also, with the support of top management and through 
regular education and training programs, security operation/awareness 
is tightly involved and seamlessly integrated into every employee’s daily 
work.

Establish Enterprise Risk Management System

According to the Enterprise Risk Management Committee management 
procedure, UMC assesses the risk level of information security, takes 
response actions, and regularly reviews effectiveness.

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.	https://www.
umc.com/en/Download/awards_and_certificates

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,  UMC  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.

152

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 attack 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 USD 10 million 
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.

The Impact of 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 software 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 limit them to a small extent of impact. After 
the virus incident in August 2018, 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, 

United Microelectronics Corporation  |  Annual Report 2020Risk Management and Evaluation (Continue)

Efficiency”  as  its  corporate  culture  and  well  fulfill  “due  care/due 
diligence” management responsibilities 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 Potential Impact on the Investment 
and Operation of the Company and 
Corresponding Measures.

Internationally, due to political or economic tensions between major 
countries,	national	power	has	been	exerted	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’s 
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	regions,	UMC	also	aggressively	expands	
its business from other regions such as Europe and Japan. In addition 
to the company’s original business in server, automotive and industrial 
applications,  UMC  also  has  active  efforts  aimed  at  expanding  its 
opportunities in 5G, 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  measures.  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 the 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. 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  practices, 
UMC provides a comprehensive learning environment for employees 
to improve the skills and expertise of their colleagues. The Company 
focuses on “talent attraction, cultivation, and retention” as the key goals 
of training & development, while continuously improving  the quality 
and effectiveness of training, cultivating talent to meet the needs of the 
organization, and ensuring the continuation of experience. Meanwhile, 
UMC  also  pays  attention  to  external  market  salary  information  and 
provides  competitive  salary  and  welfare  conditions  to  achieve  the 
Company’s sustainable operation goals.

The Impact of Contagious Diseases 
on the Company’s Operations and 
Countermeasures

Any outbreak of infectious diseases, such as coronavirus (COVID-19), 
Ebola,	bird	flu,	swine	flu,	or	severe	acute	respiratory	syndrome	(SARS),	
can affect staff attendance and even affect company operations. For 
example, the outbreak of the coronavirus pandemic since the end of 
2019 is still spreading globally, adversely affecting the world's economic 
conditions and the stability of the supply chain. It is estimated that the 
epidemic will not be alleviated within a short time period. The impact of 
emergency control measures taken by governments to curb the spread 
of the epidemic will continue, which may expose UMC to relevant risks, 
including: unstable sales activities and customer orders, reduced plant 
operations	and	labor,	international	travel	and	communication	difficulties,	
limiting  transnational  cooperation  projects,  etc.  In  addition,  if  any 
employee is suspected or diagnosed with an infectious disease, the 
company may need to quarantine these employees or close the relevant 
workplace to temporarily suspend some or all production operations.
The company pays attention to the potential risks of various contagious 
diseases  and  tracks  their  dynamic  changes.  UMC  established  its 
coronavirus epidemic control and response center in January 2020 to 
coordinate relevant information and resources usage, including:
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 UMC 
CSR	report);	increase	buffer	inventory,	find	and	expedite	the	verification	
of second suppliers to reduce material shortages; reduce the operation 
impact	of	specific	fabs	by	cross-plant	products	and	order	adjustment	and	
transfer.
Up	until	February	2021,	the	epidemic	has	not	had	a	significant	impact	on	
the Company's operations. At the same time, UMC has also noticed that 
the epidemic seems to have a medium to long-term impact on certain 
industrial environments, such as structural changes in market demand 
and the global supply chain. The Company will maintain a positive and 
cautious attitude and continue to pay close attention to and respond to 
the risks and opportunities associated with the pandemic. 

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Other Significant Risks
None.

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

during 2020 and as of the Annual Report Printing Date.

Other Necessary Supplements

None.

154

United Microelectronics Corporation  |  Annual Report 2020 
 
Social Responsibility

156  Description of Corporate Social Responsibility
158  About Social Charity 
162  Environmental Protection, Safety and Health  

Management Instructions

155

Social Responsibility 
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.
Currently, through the Corporate Sustainability Committee, UMC keeps 
abreast of relevant domestic and international standards in corporate 
social responsibility and changes in the corporate environment. UMC 
regularly  reviews  and  improves  its  corporate  social  responsibility 
practices,  systems  and  management  policies  to  improve  the 
effectiveness of its corporate social responsibility implementations.
In 2020, 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 earning the Taiwan Corporate Sustainability Report Award, Green 
Chemical Application and Innovation Award, Green Procurement Award, 
Occupational Safety and Health Award, and Enterprises Environmental 
Protection Award. Meanwhile, UMC has been listed as one of the Dow 
Jones Sustainability World Index for 13 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 solutions 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 

156

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 2020, 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	third	party	verification	
audit  of  its  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.
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  2020 
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 

United Microelectronics Corporation  |  Annual Report 2020Description of Corporate Social Responsibility (Continue)

13th 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.
Structure  of  UMC’s  Corporate  Social  Responsibility 
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 focus on corporate social responsibility 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 representative of this committee will report to the board of directors 
annually on the effectiveness and plan of promotion, and important 
issues and responsive measures that stakeholders are concerned about.

There are seven sub-committees under the Corporate Sustainability 
Committee, which are 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. Their functions are 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 Science and Culture Foundation, and with a 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 to enhance sustainable 
competitiveness.
Green Manufacturing Committee

Promotes company-wide green processes, such as 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

157

Social ResponsibilityAbout Social Charity

•UMC Science and Culture Foundation

Established in 1996, the UMC Science and Culture Foundation has been 
promoting social charity for many years. Currently, the focus is long-
term educational assistance, and encouraging colleagues to serve as 
volunteers to participate in various public welfare activities. Summary of 
key implementations in 2020:

•Spreading  the  Seeds  of  Hope  and  Cultivate  Future 
Competitiveness

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. 
It  is  hoped  that  through  the  long-term  sponsorship  and  adoption  of 
enterprises and calling on scientific and technological people to show 
love, students from disadvantaged families can receive better education 
and cultivate their future competitiveness, so as to escape the cycle of 
poverty. This project is funded by the foundation. Cooperative units in 
Hsinchu and Tainan provide venues as supplementary classrooms, hire 
college students as part-time supplementary teachers, and provide free 
tutoring for students who are economically disadvantaged and need to 
strengthen their schoolwork. For more than ten years, this program has 
not only been a lesson plan, but a public welfare platform that connects 
social volunteers and college students to serve with actions.

•Supporting Diverse Education Programs

In order to encourage young people to learn through different ways of 
thinking, the Foundation has long supported the Youth Performing Arts 
Alliance to guide high school students to understand society through 
drama creation.
In  2020,  under  the  epidemic  situation,  there  were  still  30  teams 
participating in the drama festival activities. The love of drama was 
conveyed  through  online  courses  and  live  broadcasts.  It  was  art 
education as well as citizenship and life education.
In addition, the long-term exclusively sponsored program “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	to	exert	the	positive	influence	of	the	media.
In physical education, the foundation has long supported the Nantou 
Karate  team  led  by  coach  Huang  Taiji  and  Liao  Delan  to  cultivate 
children from disadvantaged families in Taiwan to practice karate. Over 
the years, it has achieved two Asian Games gold medals and more 
than ten presidential education award winners. UMC’s 40th anniversary 
Sports Family Day specially invited the players to perform the opening 
act, which echoed the corporate activities, and also allowed colleagues 
to see the results of the players’ hard work.
Reading  is  another  window  of  learning.  The  Foundation  has  long 
sponsored the Mandarin Daily newspaper education project. In 2020, 
it  sponsored  a  total  of  27  class  reading  projects  in  18  elementary 
schools  to  provide  students  with  broader  reading  resources.  At  the 
same time, it also links newspapers into the company to hold book fairs 
and newspaper reading promotion, so that colleagues are informed of 
another good media for parent-child learning.
Another long-term sponsorship plan is to donate a total of 110 school 
children to adopt a family, so that family functions will not be affected 
due to economic factors and children can have a more normal family 
education. In addition, colleagues are also linked to serve as letter-care 
volunteers to give care and encouragement to adopted children. One of 

158

the simplest concepts of companionship, the program connects love and 
hope.
In  2020,  the  Foundation  invested  for  the  first  time  in  the  “Seeing 
Hometown” aerial photography project for rural school children. This 
project was initiated by Professor Su Wenyu from the Love of Self-Made 
Learning Association of the Republic of China. It is hoped that students 
from rural areas who are relatively lacking in educational resources will 
learn about their hometown, learn to use images to record hometown 
stories, and develop a deeper sense of identity with their hometown. The 
foundation mediated the long-term cultivation of Yanzhou Elementary 
School in Pingtung County to participate in the project, and used video 
works to tell stories about their hometown with 6 other primary and 
middle school teams at the results presentation.
  For  more  information  on  charity  events,  please  refer  to  the  UMC 
Science and Culture Foundation webpage.

•UMC LOHAS Education Foundation 
 “UMC LOHAS Education Foundation” was established in 2009, and has 
continued to promote national sports and social welfare over the years 
and has operated its own recreation center in the Hsinchu Science Park. 
At present, it focuses on providing a good sports environment for citizens 
and employees in the park, and assists in handling various activities in 
the park and the city government. 
Summary of key implementation outcomes in 2020:
•Free Consultation for Health Promotion
Recreation center provides free exercise knowledge training on site or 
over the phone. Professionals in the gym teach how to use retraining 
equipment and help answer any questions about exercise. In addition, 
the recreation center provides body composition analysis. The machine 
can analyze body composition in a comprehensive manner, such as 
body fat rate, muscle mass, basal metabolic rate, etc. Professionals 
introduce the meaning of the measured data and exercise suggestions 
to users, and establish correct exercise information. Through the stable 
operation of the sports hall, a safe and modern sports environment is 
provided for citizens and park employees, and a healthy sports concept 
is introduced.
•Sponsoring the Activities of the Hsinchu City Education 
Office
The  Education  Department  of  Hsinchu  City  Government  organizes 
International Parent-Child Day and Grandchildren’s Day activities, and 
UMC LOHAS Education Foundation assists in the promotion of local 
educational  activities.  In  2020,  UMC  LOHAS  Education  Foundation 
sponsored 1,000 gifts and provided gifts for citizens after they passed 
the game. UMC supported the management of public welfare activities, 
providing  resources  and  achieving  social  resource  sharing  and 
integrating resources to maximize their effectiveness.
•Sponsoring the Park Cup Sports Events
Combined  with  the  Science  Park  Bureau,  government  and  schools 
to handle the Park Cup of table tennis games and badminton games, 
the  UMC  LOHAS  Education  Foundation  sponsors  free  venues  and 
admission fees to promote the sports habits of the employees in the 
Hsinchu Science Park, promote a healthy workplace, and activate the 
atmosphere of the Hsinchu Science Park through passionate sports 
competitions.

United Microelectronics Corporation  |  Annual Report 2020About Social Charity (Continue)

•Handling  Health  Promotion  Public  Welfare  Education 
Lectures
UMC LOHAS Education Foundation handles sports experience courses 
for sports leisure and health promotion,  and invites employees and 
citizens of the park to participate for free. During the activity, the coach 
leads the trainees in basic core training exercises to achieve muscle 
relaxation, body balance, and lower body fat while promoting health 
through sports promotion and encouraging citizens, community residents 
and employees in the park to develop the habit of regular exercise, 
and through healthy body formation and positive emotional training, to 
promote physical, mental and spiritual balance, and effectively improve 
people’s quality of life.
•Promoting UMC Volunteer Culture
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. 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 2020:

Clubs

Services

Candlelight Club Charity bazaars (Holiday Bazaar,   St. Joseph Social 
Welfare Foundation, Eden Social Welfare Foundation)

Fundraisers (Mennonite Social Welfare Foundation, 
St. Joseph Social Welfare Foundation, Children Are Us 
Foundation)

Ukelele Club

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

Free performances (Hsinchu National Taxation Bureau 
Awards Ceremony, Hsinchu City Mid-Autumn Festival in 
Jiangong Community, Rebirth Etude Second-hand Charity 
Sale )

UMC Drum Club Charity performances (St. Joseph Social Welfare 
Foundation Garden Party, Saint- Hsin after-school)

Music Fellow 
Club

Energy 
Conservation 
Service Team

Free performances (L’arc Hotel Second-hand Market 
Activities,  STSP Bureau Love-month Activity, Fab 12A 
Christmas Activities)

Taoyuan Bade Disabled Nursing Home, Catholic Missionary 
Sisters of Mary and Francis-Miracle Home, St. Raphael 
Opportunity Center, Bethlehem Foundation, St. Joseph 
Social Welfare Foundation.

•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 Kaohsiung University of Science and Technology, 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 their knowledge into their career, thereby achieving 
talent cultivation for Taiwan’s semiconductor industry.
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 2020:

Key Items

Outcome

Industry-University 
Collaboration

National Kaohsiung 
University of Science 
and Technology, National 
Central University,  
Chung Yuan Christian 
University industry-
university courses on 
semiconductors

Nano Generation course 
at National Cheng Kung 
University

Campus 
Cultivation

Domestic and Overseas 
Summer Internship

Offered semiconductor 
processing practicum 
courses in 2020. About 260 
students enrolled.

Offered an introductory 
course on Semiconductor 
Processing in the Nano 
Generation at National 
Cheng Kung University in 
2020. About 243 students 
enrolled.

Provide a specific number 
of internship opportunities 
each summer vacation. In 
2020, a total of 16 interns 
were recruited.

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Key Items

Outcome

Key Items

Outcome

Campus 
Cultivation

National Cheng Kung 
University Career Advisor 
Program

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 
9 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.

Collaborated with 
Southern Taiwan 
University of Science 
and Technology, 
National United 
University, Da-Yeh 
University, National 
Kaohsiung University of 
Science and Technology, 
National Formosa 
University, National 
Yunlin University of 
Science and Technology 
and I-SHOU University 
to provide student 
internship opportunities 
at UMC. In 2020, a 
total of 30 interns were 
accepted.

Provide enterprise visitation 
opportunity for schools. 
In order to cooperate with 
the anti-epidemic policy 
in 2020, only National 
Cheng Kung University 
Nano Program Class and 
Kaohsiung University of 
Science and Technology 
Semiconductor Process 
Class were provided. About 
140 students enrolled.

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 152 students 
with physical disabilities 
were provided with work 
study opportunities, and in 
2020, 24 students were still 
employed.

Helped arrange a series 
of brand image cultivation 
activities, including book 
discussion, career sharing, 
internship cooperation, and 
exhibits for semiconductor 
display. In 2020, 11 book 
discussion sessions were 
held, with a total of more 
than 1,029 participants.

Campus 
Cultivation

Equipment Intern

Enterprise Visitations

Campus Ambassador for 
disabled students

Campus relationship 
development (including 
technical career lectures)

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United Microelectronics Corporation  |  Annual Report 2020About Social Charity (Continue)

Key Items

Outcome

Summary of donations in 2020:

Social Participation

UMC 

National Tsing Hua University

UMC Science and Culture Foundation

Donated to the 10th UMC Operation 
Management Thesis Award. 

Taiwan Chess Academy Cultural Foundation

Chinese Professional Go Association

The National Cheng Kung University 
academic funding for  Nano-IC 
Engineering

Taipei Awakening Association

Green Award prizes

Taiwan Semiconductor Industry Association 
Environmental Protection Fund

National Taiwan University

Donated to Bethlehem Foundation

Catholic Jesuit Hsinchu Social Service 
Center

Donated to VLSI Design/CAD Symposium

Catholic Missionary Sisters of Mary and 
Francis-Miracle Home

St. Raphael Opportunity Center

St. Joseph Social Welfare Foundation

GLO Leadership Training Summit

Kaohsiung Cit y Cerebral Palsy 
Association

In NTD

Amount

75,030,000

10,000,000

3,800,000

2,500,000

2,500,000

2,000,000

1,000,000

1,000,000

525,626

500,000

257,145

114,555

100,000

98,795

91,980

88,830

12,302

1,575

Total

99,620,808

Campus 
Cultivation

PTP Prospective Talent 
Program

Advanced Intelligent Elite 
Development (AIED)

The early contact 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, 4,910 students have 
been recruited and 1,331 
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 4,238 students 
have attended in AIED 
campus briefings, recruiting 
a total of 1,291 members.

•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  (Lifest yle  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, 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, Taiwan Semiconductor Industry Association Environmental 
Protection Fund, Green Award prizes, VLSI Design/CAD Symposium and 
GLO Leadership Training Summit as well as charity events.
In the days to come, UMC will remain dedicated to its philosophy of 
receiving from and giving back to society by supporting social charity.

161

Social ResponsibilityEnvironmental Protection, Safety and Health Management 
Instructions

In terms of environmental protection, safety and health, UMC has set the 
objective of zero pollution and zero 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 ISO14001 
and ISO45001 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 effectiveness of implementation. As for various ESH risks 
of company operation, the possible impacts of various activities (from 

Achievement Status of UMC’s Important ESH Objectives/Targets in 2020:

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. 

Objective

Target

Achievement Status

Eliminating major accidents and continuously 
promoting “Safety First. No Compromise on 
Safety. Safety Is Above Production”

Promoting green management Green 2020 
project to reduce the Company’s impact on the 
environment

1. Zero Serious  occupational safety incidents

Zero occupational safety incidents  throughout the year

2. Fewer than 9 minor (or above) accidents

A total of 9 incidents throughout the year

The target of 2020 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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United Microelectronics Corporation  |  Annual Report 2020Environmental Protection, Safety and Health Management Instructions (Continue)

Environmental Protection

Greenhouse Gas Reduction and Management

Facing the issues of climate change and worsening global warming, 
UMC has already prepared and implemented responsive strategies. 
It set up the “Fluorinated Greenhouse Gases Reduction Work Group” 
in 1999 to be dedicated to the research and promotion of reduction of 
fluorinated	greenhouse	gases.	It	formulated	the	“UMC	Climate	Change	
Policy”  in  2000  as  the  highest  guiding  principle  of  the  Company  in 
response to climate change. 
The	major	reduction	plans	with	respect	to	fluorinated	greenhouse	gases	
to be promoted include:

•	 Measuring	 the	 utilization	 rates	 of	 process	 tools	 using	 fluorinated	 
  greenhouse  gas  and  the  destruction  and  removal  efficiency  of  
its emissions control technologies to be fully aware of the machine  

  performance and to improve those with poor performance.
•	 Implementing	survey	and	assessment	of	the	consumption	amount	for	 
fluorinated greenhouse gases in order to understand the greenhouse  

  gas emission volume of each process tool.
•	 Carrying	 out	 a	 research	 project	 on	 alternative	 gas	 to	 reduce	 the	 
  consumption of process gasses that contribute 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 the installation of high performance fluorinated 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  C 4F8)  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, our GHG Offset Project 
has passed EPA review in 2020, 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 2.2 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 the 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 resource assessment and 
management and active 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 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 

163

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Environmental Protection, Safety and Health Management Instructions (Continue)

required technologies in response to new environmental protection laws 
and regulations or standards, UMC has also considered the tolerance 
and interaction of the overall environment to apply self-management 
and  constantly  introduces  high  performance  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, transparency 
and quality, 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, electricity 
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 information for 2020 will be 
verified by third party inspection and publicly disclosed before June 
2021.
UMC  was  also  invited  to  par ticipate  in  the  international  CDP 
organization's climate change and water security disclosure project, 
and	further	disclosed	the	identification	results	of	risks	and	opportunities	
and related management information. In 2020, UMC's water security 
disclosure  was  awarded  the  Leadership  band,  and  climate  change 
disclosure was awarded the Management band. 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 effort 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  from  the  international 
environmental protection trend and customer demand as early as 2003, 
and began the promotion of the green supply chain management system 
and became a SONY Green Partner in the same year. To date, the 
Company	has	continuously	passed	re-verification,	indicating	that	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 actively implemented comprehensive carbon/water 
management  plans.  In  September  2009,  it  completed  the  world’s 
first  “Product  Carbon  Footprint”  and  EPD  (Environmental  Product 
Declaration) verification for IC wafers, 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  operational  belief  of 
symbiosis  with  a  sustainable  environment,  UMC  has  provided  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

The  analysis  of  the  causes  of  domestic  and  foreign  accidents  has 
revealed that 90% of them are due to “Human Factors,” such that the 
safety of personal behavior has a more profound impact on the safety 
of  the  organization.  Therefore,  UMC  is  dedicated  to  promoting  the 
safety and health culture of “Individual Occupational Safety.” Starting 
from “Pay attention to your own safety and care about other’s safety” 
and “Occupational safety is everyone’s responsibility” and under the 
declaration and leadership of the chairman, UMC has introduced the 
safety thinking mode, and established complete communication and 
proposal channels so that employees can express their opinions and 
receive professional response and assistance, implement safety and 
health protection work, and continuously enhance the quality of the work 
environment. It is expected that UMC can become the global role model 
of safety and health.

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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 the 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 safety standards for machine, 
equipment,  and  appliances,  the  machines  used  by  UMC  must 
come with the reports (provided by the equipment supplier) meeting 
the  semiconductor  manufacturing  equipment  safety,  health,  and 
environmental protection standard (SEMI S2) formulated by international 
semiconductor equipment and material organizations. 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 transportation according to domestic laws and regulations, and 
there will be regular audits of suppliers to ensure that there will not be 
any safety or health or environmental protection accident that would 
cause abnormal supply.
As for the contractor management, the active and effective management 
approach should be adopted to prevent contractors from accidents. In 
addition to carrying out qualified contractor evaluation and formulating 
“Notices of ESH Contractor” to be signed by the person in charge of the 
contractor, all workers entering the fab should receive UMC’s “Contractor 
ESH  Educational  Training.”  In  addition,  the  “Contractor  Work  Place 
Hazard Notification and Agreement Meeting” should be completed for 
all contractors entering the fab. A complete online application system 
should be established for effective control of construction application 
and  the  management  before,  during,  and  after  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 regulation. The content should include: operating 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 

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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

The safety and health education and training of UMC are divided into 
three categories depending on the nature of the work:
-  General  safety  and  health  education  and  training  for  the  entire  
  company.
-  Factory area safety and health education and training organized by  
  each Fab.
-  Safety  and  health  education  and  training  formulated  by  each  
  department depending on its characteristics.
“Safety First; Safety Is Above Production!” is UMC's commitment to its 
employees, and is also the basis for UMC to carry out the planning and 
implementation of necessary safety and health education and training for 
its work and hazard prevention operations. Based on the organizational 
structure of UMC, the general training courses for the entire company; 
the	factory	area	training	courses	for	each	fab;	and	the	specific	training	
courses for each department were formulated, allowing the employees 
to  develop  a  safety  culture,  raising  their  awareness  in  work  safety, 
and reducing accidents caused by unsafe behaviors. In addition to the 
planned courses, topic-based training courses for specific events or 
major cases are also conducted on a rolling basis from time to time. For 
instance, the “executive safety culture seminars” for senior executives, 
the	“supervisor	safety	awareness	courses”	for	specific	departments,	and	
the professional trainings carried out by external occupational safety 
and health experts and scholars for UMC’s occupational safety and 
health management personnel were organized in 2020. In 2020, a total 
of 2,082 sessions of education and training were conducted, with 38,776 
participants completing the training. The offered education and training 
also include e-learning courses, allowing employees to acquire safety 
and health knowledge without being limited by schedule of the physical 
courses.
•  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 values employees as 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 Risk Management and 
Safety and Health Division, 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 employees to reflect opinions or 
problems related to safety and health management.
•  Emergency Response Measures

In order to allow employees to be equipped with the knowledge and 
skills of immediate disaster relief upon occurrence of any accident, all 
employees	must	take	basic	fire-fighting,	safety	and	emergency	response	
courses arranged by the Company every 5 years. These courses cover 
fire	safety,	disaster	response,	and	actual	operation	of	fire	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 objective of protection and control at the initial stage of 
disaster.
•  Statistical Analysis of Occupational Incidents

As  for  occupational  incidents  that  take  place  at  the  work  place,  in 
addition to regular summaries and reports, every accident must be 
registered in the accident report and investigation system to be tracked. 
In addition to the investigation of accident causes and improvement and 
prevention, accident prevention should be included as the Company’s 
objective and target of safety and health management. Various activities 
must be promoted in order to achieve 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 

166

United Microelectronics Corporation  |  Annual Report 2020 
Environmental Protection, Safety and Health Management Instructions (Continue)

management, such as an automatic inspection system, ISO14001 and 
ISO45001  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  be  included  as  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. These 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 2020 are as shown below:  

•	 “National	 Enterprise	 Environmental	 Protection	 Award”	 by	 the	 
  Environmental Protection Administration of Executive Yuan, R.O.C.  

(Fab 12A, Fab 8S)

•	 “Green	 Chemical	 Application	 and	 Innovation	 Award”	 by	 the	 
  Environmental Protection Administration of Executive Yuan, R.O.C.
•	 “The	Best	Participation	of	Green	Procurement	for	Enterprises”	by	the	 
  Environmental Protection Administration of Executive Yuan, R.O.C.
•	 “Green	Factory”	by	 the	Industrial	 Development	Bureau,	Ministry	 of	 
  Economic Affairs, R.O.C. (Fab 8F)
•	 “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	Southern	 
  Taiwan Science Park Bureau (Fab 12A)
•	 “Outstanding	Occupational	Safety	and	Health	Unit”	by	the	Hsinchu	 
  Science Park Bureau, Ministry of Science and Technology, R.O.C.  

(Fab 8S)

167

Social Responsibility 
 
Special Disclosures

Issuance of Private Placement Securities 

169  Summary of Affiliated Enterprises 
181 
181  Acquisition or Disposal of UMC Shares by Subsidiaries
181  Other Necessary Supplements 
181  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.

168

United Microelectronics Corporation  |  Annual Report 2020 
 
 
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%

TLC Capital Co., Ltd.

100.00%

Soaring Capital Corp.

100.00%

Unitruth Advisor 
(Shanghai) Co., Ltd.

100.00%

Fortune Venture Capital 
Corp.

100.00%

UMC Korea Co., Ltd.

100.00%

Tera Energy 
Development Co., Ltd.

100.00%

Everrich Energy 
Investment (HK) Limited

100.00%

Everrich (Shandong) 
Energy Co., Ltd.

100.00%

Green Earth Limited

100.00%

United Microchip 
Corporation

100.00%

United Semiconductor 
(Xiamen) Co., Ltd.

47.02%

UMC Investment 
(Samoa)Limited

100.00%

Wavetek Microelectronics 
Corporation

81.40%

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.

20.74%

United Microtechnology 
Corporation 
(California)

ECP Vita Pte. Ltd.

UMC Technology Japan 
Co., Ltd.

100.00%

100.00%

100.00%

Omni Global Limited

100.00%

Sino Paragon Limited

100.00%

United Semiconductor 
Japan Co., Ltd.

100.00%

Note:  UMC holds 80.75% of Wavetek Microelectronics Corporation (Wavetek); Fortune Venture Capital Corp. holds 0.65% of Wavetek, and the comprehensive shareholding  

ratio is 81.40%.

169

Special Disclosures 
Summary of Affiliated Enterprises (Continue)

Basic Data of Affiliated Enterprises

Name of Corporation

Date of
Establishment

Address

UMC Group(USA)

1997.08.11

United Microelectronics 
(Europe)B.V.

1989.05.23

UMC Capital Corp.

2001.01.16

UMC Korea Co., Ltd.

2013.04.12

TLC Capital Co., Ltd.

2005.10.14

488 De Guigne Drive, Sunnyvale,  
CA 94085, USA

De Entree77, 1101BH,  
Amsterdam Zuidoost,  
The Netherlands

190 Elgin Avenue, George Town, Grand 
Cayman, Cayman Islands

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.

 In NTD

Capital

Major Business /
Production Items

486,122,625

IC Sales

114,608,397

Marketing support activities

2,119,360,882

Investment holding

13,805,000

Marketing support activities

4,001,671,030

Venture capital

Fortune Venture Capital Corp.

1993.09.21

5F, No.17, Lane 120, Neihu Road Section 1, 
Taipei, Taiwan 114, R.O.C.

4,017,344,480

Consulting and planning for 
venture capital

Green Earth Limited

2009.09.09

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

UMC Investment(Samoa) 
Limited

2011.03.30

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

29,988,444,000

Investment holding

43,519,120

Investment holding

ECP Vita Pte. Ltd.

2012.05.10

 8 Marina View, #09-05 Asia Square Tower 
one, Singapore 018960

266,166,000

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

23,659,200

Investment holding and 
advisory

Tera Energy Development Co., Ltd. 2011.07.19

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

186,550,910

Energy technical services

Everrich Energy Investment (HK) 
Limited

2009.12.16

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

25,988,211

Investment holding

Everrich (Shandong)
Energy Co., Ltd.

2009.11.02

Entrepreneurship Service Center, Building 
4, Torch City, High-tech Zone, Jining City, 
Shandong Province, China

22,180,500

Solar engineering 
integrated design services

170

United Microelectronics Corporation  |  Annual Report 2020Summary of Affiliated Enterprises (Continue)

Name of Corporation

Date of
Establishment

Address

Wavetek Microelectronics
Corporation

Wavetek Microelectronics 
Investment
(Samoa) Limited

Wavetek Microelectronics  
Corporation(USA)

2010.10.18

2013.08.28

2013.09.26

Best Elite International Limited

2001.07.12

Infoshine Technology Limited

2002.02.12

Oakwood Associates Limited

2002.02.12

HeJian Technology
(Suzhou) Co., Ltd.

UnitedDS Semiconductor 
(Shandong) Co., Ltd.

2001.11.23

2014.03.25

Omni Global Limited

2013.07.02

United Microtechnology 
Corporation(California)

United Semiconductor
(Xiamen) Co., Ltd.

2014.12.10

2014.10.01

United Microchip Corporation

2015.02.04

UMC Technology Japan Co., Ltd.

2016.04.01

3F.,No. 10, Innovation 1st Road,  
Hsinchu Science Park, Hsinchu County, 
Taiwan, R.O.C.

Le Sanalele Complex, Ground Floor, Vaea 
Street, Saleufi, Apia, Samoa

488 De Guigne Drive, Sunnyvale,  
CA 94085, USA

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

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

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

 In NTD

Capital

Major Business /
Production Items

1,834,121,130

Sales and manufacturing of 
integrated circuits

50,833,500

Investment holding

1,774,440

Marketing service

 7,067,465,873

Investment holding

10,469,196,000

Investment holding

10,469,196,000

Investment holding

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

 13,480,730,005

Sales and manufacturing of 
integrated circuits

21th Floor, Artificial Intelligence Building, 
Hanyu Finance Valley, Jingshi Road, Jinan, 
Shandong Province, China

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

488 Deguigne Drive, Sunnyvale,  
CA 94085, USA

128,580,000

Design support of 
integrated circuits

130,160,000

Investment holding

 29,574,000

Research & development

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

58,708,745,084

Sales and manufacturing of 
integrated circuits

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

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

29,874,878,250

Investment holding

4,830,000

Semiconductor 
manufacturing technology 
development and 
consulting services

83,204,400

Investment holding

Sino Paragon Limited

2016.06.06

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

United Semiconductor  
Japan Co., Ltd.

2014.09.18

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

2,760,000,000

Sales and manufacturing of 
integrated circuits

Note: The data is dated December 31, 2020

171

Special Disclosures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.

172

United Microelectronics Corporation  |  Annual Report 2020Summary of Affiliated Enterprises (Continue)

Directors, Supervisors and Presidents of Affiliated Enterprises

Name of Corporation

Title

Name or Representative

Shareholding

UMC Group (USA)

Director

Jason Wang

United Microelectronics  
(Europe)B.V.

Director

Chitung Liu

Director

Stan Hung

Director

Jason Wang

UMC Capital Corp.

Chairman

Stan Hung

Director

SC Chien

Director

Jason Wang

Director

Chitung Liu

Director

Chih Chiang Peng

UMC Korea Co., Ltd.

Director

Carissa Tseng

TLC Capital Co., Ltd.

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

Shares

-

-

-

-

-

-

-

-

-

-

400,167,103

-

400,167,103

-

400,167,103

-

400,167,103

-

400,167,103

-

400,167,103

-

%

-

-

-

-

-

-

-

-

-

-

100.00

-

100.00

-

100.00

-

100.00

-

100.00

-

100.00

-

173

Special DisclosuresSummary of Affiliated Enterprises (Continue)

Name of Corporation

Title

Name or Representative

Shareholding

Fortune Venture Capital Corp.

Chairman

United Microelectronics Corporation

Representative: Stan Hung

Shares

401,734,448

-

Director

United Microelectronics Corporation

401,734,448

Representative: SC Chien

-

Director

United Microelectronics Corporation

401,734,448

Representative: Jason Wang

-

Director

United Microelectronics Corporation

401,734,448

Representative: Chitung Liu

-

Director and 
President

United Microelectronics Corporation

401,734,448

Representative: Chih Chiang Peng

-

Supervisor

United Microelectronics Corporation

401,734,448

Green Earth Limited

Director

Chitung Liu

Representative: Bellona Chen

-

-

%

100.00

-

100.00

-

100.00

-

100.00

-

100.00

-

100.00

-

-

UMC Investment(Samoa)Limited

Director

United Microelectronics Corporation

1,520,000

100.00

ECP Vita Pte. Ltd.

Director

Chitung Liu

Director

Bellona Chen

Director

Vic Yen

Director

Sofia Wang

-

-

-

-

-

-

-

-

174

United Microelectronics Corporation  |  Annual Report 2020Summary of Affiliated Enterprises (Continue)

Name of Corporation

Title

Name or Representative

Shareholding

Soaring Capital Corp.

Director

TLC Capital Co., Ltd.

Unitruth Advisor (Shanghai)  
Co., Ltd.

Director

Chih Chiang Peng

Shares

900,000

-

%

100.00

-

Tera Energy Development Co., Ltd.

Chairman

Fortune Venture Capital Corp.

18,655,091

100.00

Representative: Chih Chiang Peng 

-

-

Director

Fortune Venture Capital Corp.

18,655,091

100.00

Representative: Su Ying Shih

-

-

Director

Fortune Venture Capital Corp.

18,655,091

100.00

Representative: Jinhong Lin

-

-

Supervisor

Fortune Venture Capital Corp.

18,655,091

100.00

Representative: Tachih Lung

-

-

Everrich Energy Investment (HK)
Limited

Director

Tera Energy Development Co., Ltd.

750,000

100.00

Director

Jinhong Lin

Everrich (Shandong)
Energy Co., Ltd.

Executive 
Director

Chih Chiang Peng 

Supervisor

Su Ying Shih

-

-

-

-

-

-

175

Special DisclosuresSummary of Affiliated Enterprises (Continue)

Name of Corporation

Title

Name or Representative

Shareholding

Wavetek Microelectronics Corporation

Chairman

United Microelectronics Corporation

Representative: M C Lai

Shares

148,112,434

-

Director

United Microelectronics Corporation

148,112,434

Representative: G C Hung

-

Director

United Microelectronics Corporation

148,112,434

Representative: Sherry Chang

Supervisor

Chih Chiang Peng

Wavetek Microelectronics Investment
(Samoa) Limited

Director

M C Lai

Wavetek Microelectronics Corporation 
(USA)

Director

Mao Jwo

Best Elite International Limited

Director

Chau-Shen Yu

Director

Jeremy Wang

Director

Eric Chen

Director

Jinhong Lin

Infoshine Technology Limited

Director

Chau-Shen Yu

Oakwood Associates Limited

Director

Chau-Shen Yu

-

15,001

-

-

-

-

-

-

-

-

%

80.75

-

80.75

-

80.75

-

0.00

-

-

-

-

-

-

-

-

176

United Microelectronics Corporation  |  Annual Report 2020 
Summary of Affiliated Enterprises (Continue)

Name of Corporation

Title

Name or Representative

Shareholding

HeJian Technology (Suzhou)  
Co., Ltd.

Chairman

Chau-Shen Yu

Director and 
General Manager

M C Gao

Director 

Chitung Liu

Director

M C Lai

Director

Jinhong Lin

Supervisor

Angel Sun

Supervisor

I Cheng Lu

Supervisor

Yann Wei Chen

UnitedDS Semiconductor(Shandong) 
Co., Ltd.

Executive 
Director

Stan Hung

Supervisor

Wesley Chu

Omni Global Limited

Director

Chitung Liu

United Microtechnology Corporation 
(California)

Director

Jason Wang

Director

Megan Su

Shares

-

-

-

-

-

-

-

-

-

-

-

-

-

%

-

-

-

-

-

-

-

-

-

-

-

-

-

177

Special Disclosures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

James W Wang

Director

Jinhong Lin

Sino Paragon Limited

Director

Jason Wang

Director

Chitung Liu

Chairman

S S Hong

Director

Ming Hsu

Director

Chitung Liu

Director

Yen Huang

Director

Michiari Kawano

Director

Koichi Onomura

Director

Tatsuya Deguchi

Supervisor

Angel Sun

United Semiconductor  
Japan Co., Ltd.

Note: The data is dated December 31, 2020.

178

Shares

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

%

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

United Microelectronics Corporation  |  Annual Report 2020Summary of Affiliated Enterprises (Continue)

Summarized Operating Results of UMC Subsidiaries 

Company

Capital

Assets Liabilities Net Worth  Operating 
Revenues

 In Thousand NTD

Operating 
Income 
(Loss)

Net Income 
(Loss)

Earnings 
(Loss) Per 
Share (NTD)

UMC Group (USA)

486,123 

9,067,653 

7,250,669 

1,816,984 

52,375,054 

65,405 

66,833 

4.07 

United Microelectronics  
(Europe) B.V.

114,608 

163,244 

29,978 

133,266 

47,294 

2,597 

461 

51.21 

UMC Capital Corp.

2,119,361 

4,264,981 

392 

4,264,589 

969,687 

552,087 

552,087 

7.70 

UMC Korea Co., Ltd. 

13,805 

22,464 

1,461 

21,003 

16,417 

1,851 

1,124 

10.22 

TLC Capital Co., Ltd.

4,001,671 

4,661,222 

94,289 

4,566,933 

1,052,478 

316,108 

294,622 

Fortune Venture Capital Corp.

4,017,344 

6,287,733 

75,280 

6,212,453 

2,045,243 

777,800 

741,604 

Green Earth Limited

29,988,444 

10,166,702 

UMC Investment (Samoa) Limited

43,519 

39,961 

 - 

 - 

10,166,702 

39,961 

-

-

- 

-

(3,062,542)

(2,061)

ECP Vita Pte. Ltd.

266,166 

677,866 

114,901 

562,965 

36,656 

32,540 

34,369 

0.74 

1.85 

(3.13)

(1.36)

3.82 

Soaring Capital Corp.

27,351 

8,174 

 - 

8,174 

0 

(2,211)

(2,222)

(2.47)

Unitruth Advisor (Shanghai) Co., Ltd.

23,659 

9,118 

1,227 

7,891 

7,051 

(2,037)

(2,185)

NA

Tera Energy Development Co., Ltd.

186,551 

65,315 

2,655 

62,660 

6,601 

(1,903)

(10,586)

(0.57)

Everrich Energy Investment (HK) 
Limited

25,988

41,365 

39 

41,326 

-

(39)

2,281 

Everrich (Shandong) Energy Co., Ltd.

22,181 

49,560 

9,215 

40,345 

9,835 

2,698 

2,332 

3.04 

NA

179

Special Disclosures 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary of Affiliated Enterprises (Continue)

Company

Capital

Assets

Liabilities Net Worth  Operating 
Revenues

Operating 
Income 
(Loss)

Net Income 
(Loss)

Earnings 
(Loss) Per 
Share (NTD)

 In Thousand NTD

Wavetek Microelectronics 
Corporation

Wavetek Microelectronics 
Investment (Samoa) Limited

Wavetek Microelectronics 
Corporation (USA)

1,834,121 

1,806,688 

1,199,029 

607,659 

2,302,418 

94,136 

68,545 

0.38 

50,834 

3,026 

 - 

3,026 

 - 

(3,538)

(3,503)

(2.16)

1,774 

3,164 

273 

2,891 

4,625 

223 

155 

Best Elite International Limited

7,067,466 

23,039,727 

2,488 

23,037,239 

Infoshine Technology Limited

10,469,196 

22,976,677 

Oakwood Associates Limited

10,469,196 

22,976,677 

-

-

22,976,677 

22,976,677 

-

-

-

(5,502)

2,005,823 

 - 

2,014,798 

(205)

2,014,798 

13,480,730 

25,655,214 

3,746,175 

21,909,039 

11,788,176 

3,041,093 

2,048,191 

0.65 

HeJian Technology (Suzhou) Co., 
Ltd.

UnitedDS Semiconductor 
(Shandong) Co., Ltd.

128,580 

593,896 

305,920 

287,976 

306,198 

62,603 

65,194 

Omni Global Limited 

130,160 

585,317 

- 

585,317 

-

(315)

26,487 

United Microtechnology Corporation 
(California)

United Semiconductor  (Xiamen) 
Co., Ltd.

29,574 

37,582 

1,527 

36,055 

25,957 

1,469 

1,422 

35,548.55 

58,708,745 

67,045,923 

45,853,495 

21,192,428 

13,019,908 

(6,009,900)

(6,055,263)

NA

United Microchip Corporation

29,874,878 

10,141,318 

 - 

10,141,318 

UMC Technology Japan  
Co., Ltd.

4,830 

8,773 

50 

8,723 

Sino Paragon Limited

83,204 

142,353 

 -

142,353 

 - 

-

 - 

-

(3,061,316)

(3.14)

(165)

(215)

(61.54)

-

20,513 

2.59 

3.02 

NA

NA

NA

6.16 

7.89 

1.33 

United Semiconductor  
Japan Co., Ltd. 

2,760,000 

23,242,364 

5,402,849 

17,839,515 

14,980,821 

351,423 

154,542 

Note: USD:NTD=1:29.574, JPY:NTD=1:0.2760, EUR:NTD=1:33.733, RMB:NTD=1:4.286, KRW:NTD=1:0.02510

180

United Microelectronics Corporation  |  Annual Report 2020 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
Issuance of Private Placement Securities

None.

Acquisition or Disposal of UMC Shares by Subsidiaries

Subsidiary

Paid-in 
Capital

Source
of Capital

Holding %
by the
Company

Acquisition
or Disposal
Date

Shares 
Acquired
and 
Amount

Disposal
Shares and
Amount

In Thousand NTD, Shares

Profit/
Loss

As of Annual Report
Printing Date

Shares Amount

Fortune Venture Capital 
Corp.

4,017,344 New shares

100.00

for cash

2021

2020

None

None

None

None

16,078,737

105,114

None

None

16,078,737

105,114

Note:  (1) The data is dated February 24, 2021. 

(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 2020 and as of the Annual Report 
Printing Date

None.

181

Special Disclosures 
 
 
Financial Review

183  Condensed Balance Sheets 
185  Condensed Statements of Comprehensive Income 
187   Financial Analysis 
191  Audit Committee’s Review Report 
192  Financial Statements – Consolidated
269  Financial Statements – Parent Company

182

United Microelectronics Corporation  |  Annual Report 2020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

Other components of equity

Treasury stock

Non-controlling interests

Total equity

Before 
distribution

After 
distribution

Before 
distribution

After 
distribution

Before 
distribution

After 
distribution

Before 
distribution

After 
distribution

2020

2019

2018

2017

2016

164,305,911

132,774,663

4,877,913

75,557,888

377,516,375

78,243,526

153,757,141

150,374,096

5,198,247

60,857,881

141,193,432

172,846,595

2,991,804

47,573,075

139,160,486

205,741,681

3,787,509

45,409,486

110,469,594

224,983,404

4,088,303

47,113,881

370,187,365

364,604,906

394,099,162

386,655,182

72,714,322

49,899,337

88,061,070

71,978,462

*

82,479,477

56,815,442

96,618,093

78,090,621

63,499,747

141,743,273

90,258,621

162,972,943

108,169,078

158,068,415

92,000,508

95,935,096

180,061,578

167,913,558

*

172,738,098

164,984,520

188,618,601

174,025,717

235,659,746

206,804,357

206,069,723

213,080,776

216,579,895

124,224,015

43,211,214

80,176,360

117,575,798

39,550,394

60,820,280

124,243,187

40,399,363

61,588,543

126,243,187

126,243,187

40,858,350

48,065,899

40,997,092

47,655,176

*

51,055,125

54,672,438

39,508,876

41,543,017

(11,832,042)

(11,022,314)

(119,801)

113,356

(119,801)

410,065

(14,513,940)

(5,647,430)

466,768

2,632,377

(4,719,037)

956,808

6,403,477

(4,719,037)

2,161,729

235,773,102

207,214,422

206,536,491

214,037,584

218,741,624

*

197,449,267

199,620,386

205,480,561

212,629,465

Note  1: *Subject to change based on resolutions of the 2021 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.

183

Financial Review 
 
Condensed Balance Sheets-Parent Company

In Thousand NTD

Item

Current assets

Property, plant and equipment

Intangible assets

Other assets

Total assets

Current liabilities

Non-current liabilities

Total liabilities

Capital

Additional paid-in capital

Retained earnings

Before 
distribution

After 
distribution

Before 
distribution

After 
distribution

Before 
distribution

After 
distribution

2020

2019

2018

2017

2016

122,967,977

107,866,299

66,640,272

4,167,373

125,122,444

318,898,066

29,622,014

79,486,445

4,082,826

111,315,394

302,750,964

43,764,772

101,335,770

101,115,727

2,886,159

93,849,564

106,676,034

127,101,974

3,459,829

84,756,630

82,558,263

157,573,131

4,015,370

82,908,196

299,187,220

321,994,467

327,054,960

26,797,263

58,655,702

47,397,892

*

53,529,927

33,713,368

67,212,725

53,510,051

53,616,306

83,238,320

52,181,835

95,946,607

66,320,234

93,117,497

50,257,989

108,913,691

63,077,173

110,475,065

*

105,711,762

100,033,602

117,470,714

116,587,224

124,224,015

43,211,214

80,176,360

117,575,798

39,550,394

60,820,280

124,243,187

40,399,363

61,588,543

126,243,187

40,858,350

48,065,899

126,243,187

40,997,092

47,655,176

*

51,055,125

54,672,438

39,508,876

41,543,017

Other components of equity

(11,832,042)

(11,022,314)

(14,513,940)

(119,801)

(119,801)

(5,647,430)

235,659,746

206,804,357

206,069,723

213,080,776

216,579,895

*

197,039,202

199,153,618

204,523,753

210,467,736

2,632,377

(4,719,037)

6,403,477

(4,719,037)

Treasury stock

Total equity

Before 
distribution

After 
distribution

Note  1: * Subject to change based on resolutions of the 2021 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 2020 
 
Condensed Statements of Comprehensive Income

Condensed Statements of Comprehensive Income-Consolidated

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

2020

176,820,914

38,997,101

22,007,407

5,918,772

27,926,179

27,180,412

4,685,534

31,865,946

29,189,489

2019

148,201,641

21,314,972

4,689,850

1,045,787

5,735,637

6,128,767

3,408,785

9,537,552

9,707,614

2018

151,252,571

22,840,027

5,797,232

(3,612,833)

2,184,399

2,643,052

949,944

3,592,996

7,072,990

2017

149,284,706

27,057,758

6,568,321

1,230,101

7,798,422

6,631,265

(4,034,355)

2,596,910

9,628,734

In Thousand NTD

2016

147,870,124

30,379,430

6,193,576

(1,346,938)

4,846,638

3,863,075

(4,364,780)

(501,705)

8,315,660

(2,009,077)

(3,578,847)

(4,429,938)

(2,997,469)

(4,452,585)

33,748,370

13,131,612

8,126,828

5,705,980

3,983,198

(1,882,424)

(3,594,060)

(4,533,832)

(3,109,070)

(4,484,903)

Earnings per share (NTD)

2.42

0.82

0.58

0.79

0.68

Note 1: EPS was calculated based on weighted average number of 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.

185

Financial Review 
Condensed Statements of Comprehensive Income-Parent Company

Item

Operating revenues

Gross profit

Operating income

Non-operating income and expenses

Income from continuing operations before 
income tax

Net income

Other comprehensive income (loss), net of 
tax

Total comprehensive income

Earnings per share (NTD)

2020

2019

2018

2017

135,280,403

123,622,436

132,834,602

132,179,198

39,052,266

23,459,030

6,375,642

29,834,672

29,189,489

4,558,881

27,161,230

10,281,974

(1,148,875)

9,133,099

9,707,614

3,423,998

33,748,370

13,131,612

2.42

0.82

30,548,191

12,790,237

(6,581,581)

6,208,656

7,072,990

1,053,838

8,126,828

0.58

29,718,771

11,538,896

(1,114,125)

10,424,771

9,628,734

(3,922,754)

5,705,980

0.79

In Thousand NTD

2016

135,592,136

28,358,887

9,605,769

(594,179)

9,011,590

8,315,660

(4,332,462)

3,983,198

0.68

Note 1: EPS was calculated based on weighted average number of 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 2016 to 2020

Year

CPA

Audit Opinion

2016

2017

2018

2019

2020

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

Wan-Ju Chiu, Hsin-Min Hsu

Unqualified Opinion with Emphasis of Matter Paragraphs or Other Matter Paragraphs

186

United Microelectronics Corporation  |  Annual Report 2020 
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

2020

37.55

196.23

209.99

177.36

14.93

6.67

55

6.23

16.47

59

1.25

0.47

7.70

13.19

24.10

15.37

2.42

84.03

111.10

5.12

5.98

1.10

2019

44.02

169.65

211.45

172.13

2.96

5.98

61

6.36

16.19

57

0.92

0.40

2.31

4.70

7.92

4.14

0.82

75.51

96.56

4.54

23.16

2.67

2018

43.35

158.30

282.96

222.80

1.79

6.75

54

7.04

19.26

52

0.80

0.40

1.28

3.37

5.32

1.75

0.58

102.08

86.78

4.03

19.11

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

2.21

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

0.41

1.35

3.75

7.35

2.61

0.68

64.53

75.74

4.11

17.77

1.25

Analysis of changes over 20% from 2019 to 2020:
1.  Times interest earned: Due to increase in income before interest and tax.
2. Property, plant and equipment turnover: Due to increase in net sales.
3.	Return	on	assets,	Net	profit	margin:	Due	to	increase	in	net	income.
4. Return on stockholders’ equity attributable to the parent company, Earnings per share: Due to increase in net income attributable to stockholders  
  of the parent company.
5. Pre-tax income to paid-in capital: Due to increase in income before tax attributable to stockholders of the parent company.
6. Operating leverage, Financial leverage: Due to increase in operating income.

187

Financial ReviewFinancial Analysis (Continue)

Note 1: The calculation of EPS was based on weighted average number of 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) / 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  sales  /  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 property, plant and equipment 
(7) Total assets turnover = net sales / average total assets

4. Profitability

(1) Return on assets = [net income + interest expenses x (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 = (operating revenues – 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.

188

United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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

2020

26.10

389.93

415.12

352.97

54.08

6.80

54

5.81

16.70

63

1.85

0.44

9.54

13.19

24.02

21.58

2.42

176.05

189.18

4.18

4.29

1.02

2019

31.69

288.59

246.47

204.33

12.16

5.95

61

6.12

16.41

60

1.37

0.41

3.44

4.70

7.77

7.85

0.82

106.12

155.16

4.09

8.88

1.09

2018

31.12

242.91

378.16

313.86

9.14

6.02

61

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

186.51

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

11.00

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

10.55

1.08

Analysis of change over 20% from 2019 to 2020:
1.  Long-term  funds  to  property,  plant  and  equipment,  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.
2.	Current	ratio,	Quick	ratio	and	Cash	flow	ratio:	Due	to	decrease	in	current	portion	of	long-term	liabilities.
3. Property, plant and equipment turnover: Due to decrease in property, plant and equipment.
4.	Cash	flow	adequacy	ratio:	Due	to	decrease	in	the	last	5	years	capital	expenditure.
5. Operating leverage: Due to increase in operating income.

189

Financial ReviewFinancial Analysis (Continue)

Note 1: The calculation of EPS was based on weighted average number of 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) / 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  sales  /  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 property, plant and equipment 
(7) Total assets turnover = net sales / average total assets

4. Profitability

(1) Return on assets = [net income + interest expenses x (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 = (operating revenues  – 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.

190

United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Audit Committee’s Review Report

The  Board  of  Directors  has  prepared  and  submitted  to  us  the  Company’s  2020  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 2021 Annual General Shareholders’ Meeting

Chairman of the Audit Committee: Cheng-Li Huang 

	February	24,	2021

191

Financial Review 
	
	
	
	
				 						
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United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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, 2020 and 2019

(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 impairment gains (losses)
        Subtotal
Net other operating income and expenses
Operating income
Non-operating income and expenses
    Interest income
    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 (expense) 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
    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, net of tax
Total comprehensive income

    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

2020

2019

For the years ended December 31,

4,6(20), 7, 14
4, 6(4), 6(10), 6(15), 6(19),
6(20), 6(21), 7, 14

4, 6(3), 6(10), 6(15), 6(19),
6(21), 7, 14

$     

176,820,914

$     

148,201,641

(137,823,813)
38,997,101

(126,886,669)
21,314,972

4, 6(8), 6(16), 6(22), 14

4
4
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6(23)
4, 6(6), 14
4, 6(28)
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4, 5, 6(25), 14

6(24)

4, 5, 6(15)

(4,152,242)
(6,664,166)
(12,895,501)
468,325
(23,243,584)
6,253,890
22,007,407

737,913
698,155
(11,674)
(2,073,433)
6,667,952
-  
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5,918,772
27,926,179
(745,767)
27,180,412

(3,807,610)
(5,436,091)
(11,860,244)
(703,339)
(21,807,284)
5,182,162
4,689,850

994,061
711,614
1,257,299
(2,997,643)
1,147,495
171,585
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1,045,787
5,735,637
393,130
6,128,767

(192,581)
4,815,361

106,403
5,486,209

2,824,216

1,231,722

4, 5, 6(25)

54,424

(158,260)

4, 5, 6(25)

(2,920,280)
60,221

(3,277,938)
15,348

44,173

5,301

4,685,534
31,865,946

$       

3,408,785
9,537,552

$         

$       

$       

29,189,489
(2,009,077)
27,180,412

$       

$       

33,748,370
(1,882,424)
31,865,946

$         

$         

9,707,614
(3,578,847)
6,128,767

$       

$         

13,131,612
(3,594,060)
9,537,552

    Earnings per share (NTD)
        Earnings per share-basic 
        Earnings per share-diluted 

4, 6(26)

$                   
$                   

2.42
2.35

$                   
$                   

0.82
0.76

The accompanying notes are an integral part of the consolidated financial statements.

197

Financial Review9
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United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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, 2020 and 2019

(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 impairment (gains) losses

        Net gain of financial assets and liabilities at fair value through profit or loss

        Interest expense

        Interest income

        Dividend income

        Share-based payment

        Share of profit 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 (gain)  loss on financial assets and liabilities

        Bargain purchase gain

        Gain on lease modification

        Amortization of deferred government grants

            Income and expense adjustments

        Changes in operating assets and liabilities:

            Financial assets and liabilities at fair value through profit or loss

            Contract assets

            Notes receivable and accounts receivable

            Other receivables

            Inventories

            Prepayments

            Other current assets

            Contract fulfillment costs

            Contract liabilities

            Notes and accounts payable

            Other payables

            Other current liabilities

            Net defined benefit liabilities

            Other noncurrent liabilities-others

        Cash generated from operations

            Interest received

            Dividend received

            Interest paid

            Income tax paid

                Net cash provided by operating activities

(continued)

For the years ended December 31,

2020

2019

$                 

27,926,179

$                   

5,735,637

46,163,693

2,744,383

(468,325)

(2,011,403)

2,004,418

(737,913)

(698,155)

959,219

(6,667,952)

(1,137,320)

60,940

-

(1,386,657)

-

(1,765)

(3,994,818)

34,828,345

876,876

(49,108)

(1,501,100)

(224,488)

(1,014,039)

3,053,557

(71,573)

4,200

1,072,225

(944,909)

2,338,043

(593,710)

(55,300)

53,743

65,698,941

758,235

1,041,972

(1,735,327)

(18,629)

65,745,192

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)

55,878,144

973,241

818,691

(2,147,320)

(618,608)

54,904,148

199

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, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from investing activities:

    Acquisition of financial assets at fair value through profit or loss

$                  

(1,118,572)

$                     

(354,249)

For the years ended December 31,

2020

2019

    Proceeds from disposal of financial assets at fair value through profit or loss

    Proceeds from disposal of financial assets 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

    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 financial assets

    Decrease in other financial assets

    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 (decrease) increase in cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

326,127
-

(59,900)

30,611

-

27,200

-

(785,772)

(26,345,302)

1,737,125

(160,254)

448,893

(2,009,031)

242,264

(18,422,183)

5,984,342

(7,049)

-

229,553
44,466

(730,000)

5,970

(17,974)

32,214

(12,800,981)

32,017

(16,518,483)

45,042

(257,909)

441,013

(2,443,593)

617,685

-

-

(15,074)

8,786

(40,111,501)

(31,681,517)

16,271,732

(17,205,124)

(726,626)

(13,702,875)

13,528,900

(13,391,980)

303,720

(363,539)

(9,765,694)

(1,678,272)

1,677,900

(551,608)

2,120

(25,601,346)

(1,476,786)

(1,444,441)

95,492,477

25,732,933

(26,726,656)

(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

$                 

94,048,036

$                 

95,492,477

The accompanying notes are an integral part of the consolidated financial statements.

200

United Microelectronics Corporation  |  Annual Report 2020                        
                                    
                            
                                    
                         
                          
                          
                                    
                  
                          
                  
                  
                     
                          
                       
                       
                        
                        
                    
                    
                        
                        
                  
                                    
                     
                                    
                           
                         
                                    
                            
                  
                  
                   
                   
                  
                  
                       
                       
                  
                    
                   
                   
                  
                    
                        
                        
                       
                         
                    
                    
                    
                    
                     
                                    
                       
                            
                            
                          
                  
                    
                    
                    
                    
                   
                   
                   
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257

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, 2020 and 2019

(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 impairment gains (losses)

        Subtotal

Net other operating income and expenses

Operating income

Non-operating income and expenses

    Interest income

    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

    Exchange loss, net

        Subtotal

Income from continuing operations before income tax

Income tax (expense) 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
    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 income (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, net of tax

Total comprehensive income 

    Earnings per share (NTD)

        Earnings per share-basic 

        Earnings per share-diluted 

For the years ended December 31,

Notes

2020

2019

4, 6(20), 7
4, 6(4), 6(10), 6(15),
6(19), 6(20), 6(21), 7

4, 6(3), 6(10), 6(15),
6(19), 6(21), 7

$    

135,280,403
(96,228,137)

$    

123,622,436
(96,461,206)

39,052,266

27,161,230

4, 6(16), 6(22), 7

4
4

4, 6(23), 9(5)

6(23)

4, 6(6)

6(6)

4,12

4,12

4, 5, 6(25)

6(24)

4, 5, 6(15)

(3,075,837)

(4,388,589)

(9,536,311)

472,167

(2,870,050)

(3,791,439)

(9,719,780)

(689,095)

(16,528,570)

(17,070,364)

935,334

191,108

23,459,030

10,281,974

426,172

539,709

(1,116,244)

(609,520)

8,022,897

-

-

(887,372)

6,375,642

29,834,672

(645,183)

29,189,489

584,052

619,123

1,017,178

(861,601)

(2,872,245)

171,585

193,033

-

(1,148,875)

9,133,099

574,515

9,707,614

(192,581)
4,574,491

106,403
5,605,384

3,065,086

1,112,547

4, 5, 6(25)

54,424

(158,260)

4, 5, 6(25)

4, 6(26)

(2,920,173)
(64,686)

(1,045,504)
(2,204,824)

42,320

8,252

4,558,881

3,423,998

$      

33,748,370

$      

13,131,612

$                 

2.42

$                 

0.82

$                 

2.35

$                 

0.76

The accompanying notes are an integral part of the parent company only financial statements.

274

United Microelectronics Corporation  |  Annual Report 2020 
                         
                         
                         
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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, 2020 and 2019
(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 impairment (gains) losses

        Net gain 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 subsidiaries, associates and joint ventures

        Gain on disposal of property, plant and equipment

        Gain on disposal of investments

        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 refunded (paid)

For the years ended December 31,

2020

2019

$            

29,834,672

$              

9,133,099

28,330,741

2,029,391

(472,167)

(828,003)

562,082

(426,172)

(539,709)

959,219

(8,022,897)

(249,572)

(499)

(71,664)

-

(1,410,008)

19,860,742

199,655

(9,980)

(525,464)

(123,130)

(752,559)

(272,585)

(71,566)

(21,960)

190,417

(413,353)

2,926,889

(176,758)

(55,300)

10,750

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)

-

50,600,470

45,819,457

468,405

972,612

(408,427)

517,370

552,382

715,515

(391,559)

(253,547)

                    Net cash provided by operating activities

52,150,430

46,442,248

(continued)

276

United Microelectronics Corporation  |  Annual Report 2020              
              
                
                
                 
                   
                 
                 
                   
                   
                 
                 
                 
                 
                   
                   
              
                
                 
                 
                        
                              
                   
                 
                              
                 
              
              
              
              
                   
                   
                     
                   
                 
                
                 
                     
                 
              
                 
                   
                   
                   
                   
                     
                   
                   
                 
                   
                
                 
                 
                   
                   
                   
                     
                              
              
              
                   
                   
                   
                   
                 
                 
                   
                 
              
              
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, 2020 and 2019
(Expressed in Thousands of New Taiwan Dollars)

Cash flows from investing activities:

    Acquisition of financial assets at fair value through profit or loss
    Proceeds from disposal of financial assets at fair value through other
       comprehensive income or loss
    Acquisition of investments accounted for under the equity method

    Proceeds from capital reduction of investments

    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 financial assets

    Decrease in other financial assets

    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 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,

2020

2019

$               

(172,452)

$                             
-

-

(9,082)

27,200

44,466

(16,485,610)

750,000

(15,629,312)

(10,966,528)

482,602

(18,308)

296,368

(2,113,720)

3,204,940

(1,891,020)

20,230

(16,645,591)

3,955,778

(7,049)

-

323,807

(248,459)

268,717

(1,253,320)

-

(2,112,818)

51,862

-

-

(15,074)

8,786

(28,499,416)

(29,634,171)

1,918,175

(1,912,310)

(323,743)

(13,702,875)

13,000,000

(8,900,000)

142,298

(172,566)

(9,765,694)

(1,678,272)

1,677,900

2,120

(19,714,967)

(1,420,987)

2,515,060

66,534,836

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

$           

69,049,896

$           

66,534,836

The accompanying notes are an integral part of the parent company only financial statements.

277

Financial Review                               
            
            
                   
                   
                   
                 
                   
                   
              
              
                
                               
              
              
                     
                     
            
                               
                
                               
                     
                   
                               
                       
            
            
                
                
              
              
                 
                 
            
              
             
                
              
              
                   
                   
                 
                   
              
              
              
              
                
                               
                       
                     
            
              
              
                 
                
                
             
             
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Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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337

Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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United Microelectronics Corporation  |  Annual Report 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The  Company  and  Its  Affiliated  Enterprises  Have  Not 
Experienced  Any  Financial  Difficulties  During  the  Most 
Recent Year up to the Publication Date.

339

Financial ReviewUnited Microelectronics Corporation

Representative: Stan Hung