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United Microelectronics

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FY2021 Annual Report · United Microelectronics
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United Microelectronics Corporation
2021 Annual Report
Printed on February 24, 2022

UMC annual report is available at:

https://www.umc.com

https://mops.twse.com.tw

TSE : 2303

NYSE : UMC

Annual Report
2021

Spokesperson

Chitung Liu

Fab 8F

Securities Dealing Institution

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

Horizon Securities Co., Ltd.

Senior Vice President and Chief 

Taiwan 30078, R.O.C.

Financial Officer

886 (2) 2658 9168

Chitung_Liu@umc.com

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

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 Exchangeable 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

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

Headquarters

3 Li-Hsin 2nd Rd., Hsinchu Science 

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

88 6(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

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, 

EB Search Code: ISIN XS2358241243

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

EMPOWER THE FUTURE 

1

Table of Contents

Letter to Shareholders	

Corporate Profile	

9 

Corporate Profile and Date of Establishment

10  Corporate Milestones

4 

8 

Capital Overview 

86  Capital and Shares

91 

Issuance of Corporate Bonds

97  Preferred Shares

98  American Depositary Receipts

  85 

Corporate Governance Report  

      13 

14  Corporate Organization

16  Directors’ and Managers’ Information

37  Corporate Governance Practices

79  Certified Public Accountant (CPA) Fee Information

79 

Information of CPA Change

79  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

100  Employee Stock Option Handling Status

100  Issuance of New Restricted Employee Shares 

101  Status of New Shares Issuance in Connection with  

Mergers and Acquisitions

103  Financing Plans and Execution Status

Operations Overview                         108

109  Business Activities

116  Overview of Market, Production, and Sales

121  Employees

122  Environmental Expenditure Information

80  Change in Shareholding of Directors, Managers and Major  

122  Labor Relations

Shareholders Who Own 10% or More of UMC Shares

82  Relationship Among the Top 10 Shareholders

83  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

125   Information Security Management

127  Major Contracts

2

United Microelectronics Corporation  |  Annual Report 2021	
	
 
 
 
 
 
 
 
 
Review of Financial Position, Operating  1 29 
Results, Risk Management

Financial Review

173  Condensed Balance Sheets

172

175  Condensed Statements of Comprehensive Income

177  Financial Analysis

181  Audit Committee’s Review Report

182  Financial Statements – Consolidated

260  Financial Statements – Parent Company

130  Financial Position

131  Financial Performance

132  Cash Flow

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

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

133  Risk Management and Evaluation

144  Other Necessary Supplements

Corporate Sustainable Development         1 45

146  Description of Sustainable Management

148  About Social Charity

152  Environmental Protection, Safety and Health 

Management Instructions

Special Disclosures

 15 8

159  Summary of Affiliated Enterprises

171 

Issuance of Private Placement Securities

171  Acquisition or Disposal of UMC Shares by Subsidiaries

171  Other Necessary Supplements

171  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

 
First of all, we would like to thank our shareholders for supporting and 

Capital expenditure in 2021 amounted to US$1.8 billion, which was 

believing in UMC. The impact of the COVID-19 pandemic continued to 

mainly  for  the  expansions  at  Fab  12A  in  Taiwan’s  Tainan  Science 

ripple through the global economy and the semiconductor industry in 

Park and Fab 12X in Xiamen, China. The remainder was used in the 

2021. Thanks to the efforts made by all our colleagues, and the trust 

optimization of the product mix across all fabs.

from our partners and customers, UMC achieved remarkable results and 

demonstrated our resilience in the face of challenges. The year capped 

To address growing demand and the shortage of foundry capacity, UMC 

off with the 12th straight quarter of monthly revenue increase, bringing 

is partnering with several leading global customers to expand Fab 12A. 

full-year sales to NT$213 billion and full-year profit to NT$55.78 billion. 

The total investment for this project will be approximately NT$100 billion, 

The company also ranked first among semiconductor peers in the 2021 

and it is expected that the company’s accumulated investment in the 

Dow Jones Sustainability Indices (DJSI). 

Tainan Science Park will be around NT$150 billion over the next three 

The company is forging long-term strategic partnerships with customers 

while also ensuring long-term profitability and strengthening our market 

years. This expansion will contribute to steady growth for the company 

through an innovative collaboration model, which we expect will enhance 

position. 

our  value  proposition  and  further  strengthen  UMC’s  position  in  the 

industry. Looking ahead, we will continue to capture growth opportunities 

Technology Leadership and Development   

as well as advance our efforts in promoting sustainability in order to 

In 2021, UMC invested NT$12.9 billion in research and development to 

maximize value for our shareholders and stakeholders. 

enhance our foundry processes required for end markets such as 5G, 

AI, IoT, and electric vehicles. Benefiting from the rising penetration of 

2021 Business Summary  

5G smartphones, we are seeing strong demand for our image signal 

In 2021, UMC shipped a total of 9.9 million 8-inch equivalent wafers, up 

processor (ISP), OLED display driver IC (DDI), and Radio Frequency 

10.6% from a year earlier, while the overall utilization rate across our 

Silicon on Insulator (RFSOI) products, which is further solidifying the 

fabs exceeded 100%. Revenue for the year rose 20.5% year-on-year to 

company’s position in the smartphone market. With the normalization of 

NT$213 billion. Gross margin was 33.3% while operating margin was 

remote work and remote learning, we expect demand will remain stable 

24.3%. Profit attributable to the shareholders of the parent company 

for our power management IC (PMIC) and WiFi products. Automotive 

surged 91.1% year-on-year to NT$55.78 billion, with a full-year EPS of 

and AR/VR applications are also demanding more silicon content, and 

NT$4.57. 

UMC’s technology portfolio can fully support our customers’ needs in 

these areas.    

4444

 
 
In addition, UMC is actively investing in the development of gallium 

nitride  (GaN)  and  microwave  platforms  to  penetrate  high-efficiency 

power component and 5G microwave component markets. The company 

will  continue  to  enhance  its  specialty  portfolio  as  well  as  develop 

newer technologies including silicon carbide (SiC), Resistive Random 

Access Memory (ReRAM), Magneto-resistive Random Access Memory 

(MRAM), and 3DIC. 

UMC’s  advanced  technology  platforms  including  14nm  FinFET 

compact  (14FFC),  22nm  ultra-low  power  (22ULP),  22nm  ultra-low 

Intellectual Property  

leakage (22ULL), and 28nm high performance computing (28HPC+) 

Intellectual property is the foundation of the semiconductor industry. 

manufacturing processes are all in volume production. The development 

With industry players racing to develop and secure technologies, the 

of 22nm ISP and 22nm and 28nm mmWave processes is well under way. 

company is actively taking steps to protect our intellectual property rights 

For specialty technologies, our RFSOI and complementary solutions 

to UMC has grown steadily over the years. In 2021, UMC obtained a total 

offer both high performance and reasonable cost for wireless RF chips. 

of 432 domestic and foreign patents, including 206 US patents, 60 ROC 

UMC led the industry in applying the RFSOI process to 12-inch wafers 

patents, and 166 patents from mainland China, bringing the accumulated 

as well as those of our partners. The overall number of patents granted 

and our global share of the RFSOI market has reached 16%. UMC’s 

number of patents to 14,423.

Bipolar-CMOS-DMOS  (BCD)  technology  accommodates  multiple 

voltage device options for various PMIC applications and is widely used 

To  enhance  trade  secret  protection,  UMC  has  enhanced  internal 

in  end  products  including  smartphones,  laptop  computers,  desktop 

compliance  training  and  established  a  comprehensive  intellectual 

computers, and automotive electronics. It is the fastest growing segment 

property management system. In 2021, the company introduced the 

in our 8-inch wafer business. As for our high voltage (HV) platform, 

Taiwan Intellectual Property Management System (TIPS), the official 

UMC maintains the largest market share among foundries in the global 

benchmark for Taiwan enterprises, demonstrating our determination to 

OLED and LCD DDI market, and our 28nm DDI solution was the first in 

strengthen our IP management and corporate governance. 

the industry to enter volume production. Ranging from 180nm to 28nm, 

UMC’s embedded non-volatile memory platform caters to a wide range 

of applications from IoT and industrial, to consumer and communication. 

5

Letter to Shareholders  
 
Corporate Sustainability     

consecutive years, and included in the "Emerging Market Index”

UMC’s sustainability vision is for the environment and our communities 

Received the "Taiwan Corporate Sustainability Report Award" for 14 

to  flourish  together.  While  pursuing  operational  growth,  we  are 

consecutive years and was awarded the highest level Platinum Award for 

committed to balance business needs with the advancement of our 

the fourth time

environment, social, and governance (ESG) responsibilities, as guided 

Received the best rating in the top 5% of the "Corporate Governance 

by the UN Sustainable Development Goals. In 2021, UMC became the 

Evaluation" for 7 consecutive years

first semiconductor foundry globally to pledge net-zero carbon emissions 

Awarded the "National Enterprise Environmental Protection Award" for 

by  2050,  and  the  company  also  joined  the  RE100  renewal  energy 

19 consecutive years

initiative. We plan to achieve our target through active carbon reduction, 

Won the "Taiwan Top Ten Sustainability Model Award" for the third time

100%  renewable  energy  usage,  and  investment  in  net-zero  carbon 

technologies. 

Honors and Awards 

Outlook

The continuous penetration of 5G smartphones, the acceleration of 

electric vehicle adoption, and the fast proliferation of IoT are leading to 

Listed in the "DJSI Dow Jones Sustainability Index World Index" for 14 

higher silicon content in end devices. These mega-trends are and will 

President: SC Chien

Chairman: Stan Hung

President: Jason Wang

66

United Microelectronics Corporation  |  Annual Report 2021continue to generate strong demand for UMC’s specialty technologies 

the same time, we will keep pushing for cost reduction and meticulously 

in the foreseeable future and enable the company to expand our market 

manage  our  capital  expenditure  in  order  to  deliver  sustainable  and 

share.

healthy returns for our shareholders. Finally, we are pleased to receive a 

number of important recognitions in the past year for our relentless focus 

The demand-supply imbalance in the foundry industry over the past 

on sustainability. Sustainability is at the core of everything we do, and we 

two years has spurred a structural transformation in the value chain 

will continue prioritizing resources to drive critical ESG initiatives. 

towards closer partnerships. The company is already working closely 

with our customers, and even customers of customers, to address the 

Once again, we are grateful for the support from all our shareholders. 

supply challenges in our industry, aiming to bring greater visibility and 

UMC is committed to realizing our vision of unleashing the power of 

transparency to the supply chain. 

technology for a better world, and we are excited to share this journey 

We will continue to deepen collaboration with customers through our 

differentiated specialty technologies, manufacturing excellence, and 

capacity expansions closely linked to the demands of our partners. At 

with you. 

77

Letter to Shareholders  
Corporate Profile

9 
10 

Corporate Profile and Date of Establishment
Corporate Milestones

8

United Microelectronics Corporation  |  Annual Report 2021Corporate Profile and Date of Establishment

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

specialized  processes  on  12-inch  manufacturing  to  serve  a  diverse 

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

range of product applications. United Semi, located in Xiamen, China, 

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

was established as southern China’s first 12-inch foundry fab and began 

and specialty technologies to serve every major sector of the electronics 

volume production in 2016. United Semi serves China’s vast IC market 

industry. UMC’s comprehensive technology and manufacturing solutions 

and provides high quality, geographically diversified manufacturing for 

include  Logic/Mixed-Signal,  embedded  High-Voltage,  embedded  Non-

our  foundry  customers.  Japan-based  USJC,  fully  acquired  in  October 

Volatile-Memory,  RFSOI  and  BCD  etc.,  and  IATF-16949  automotive 

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

manufacturing  certification  for  all  its  manufacturing  facilities.  UMC 

production  for  mature  specialty  nodes  ranging  from  90-nanometer  to 

operates 12 fabs with combined capacity of more than 800,000 8-inch 

40-nanometer.

equivalent wafers per month. 

UMC  led  the  development  of  the  commercial  semiconductor  industry 

experience  ensure  industry-leading  cycle  times  and  defect  densities. 

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

Comprehensive process control systems with advanced methodologies 

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

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

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

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

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

capacity  enable  UMC  to  provide  the  most  competitive  manufacturing 

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

with approximately 20,000 employees worldwide to meet the needs of 

advantages for our foundry customers.

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

robust  process  technologies  and  comprehensive  foundry  solutions, 

Company establishment date: May 22, 1980.

enabling  customers 

to  continuously  strengthen 

their  competitive 

advantage in today’s rapidly changing industry. 

Four  of  UMC’s  12  wafer  fabs  are  advanced  12-inch  fabs.  Fab  12A  in 

Tainan,  Taiwan  has  been  in  volume  production  for  customer  products 

since  2002  and  is  currently  manufacturing  products  down  to  14nm. 

UMC’s second 12-inch fab, Fab 12i, is located in Singapore. This facility 

is  the  company’s  specialty  technology  center  that  provides  highly 

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

June, 2005   

Manufactured the first 65nm customer IC

10

United Microelectronics Corporation  |  Annual Report 2021 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 

April, 2021 

Celebrated 40th Anniversary

          UMC partnered with customers for capacity expansion at 300mm Fab 12A P6 

in Tainan

June, 2021 

          UMC joined RE100 and pledged net zero emissions by 2050

November, 2021 

          UMC selected as a DJSI global component for 14th consecutive year

11

Corporate Profile 
 
 
 
 
 
 
 
12

United Microelectronics Corporation  |  Annual Report 2021Corporate Governance Report 

14 
16 
37 
79 
79 
79 

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
82   Relationship Among the Top 10 Shareholders
83 

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

80 

13

Corporate Governance Report 
 
 
 
 
 
Corporate Organization 

Board of Directors
Chairman

Audit Committee

Corporate Governance 
Officer

Auditing

President

Remuneration Committee

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 2021 
 
 
 
 
 
 
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 
Age

Date Elected
(Date 
Assumed)


Term 
Expires

Shareholding When 
Elected

Present
Shareholding

Common 
Shares

%

Common 
Shares

%

Chairman

R.O.C.

Stan Hung

Male
61 years old

2021.07.07 
<2008.07.16>

2024.07.06

49,301,452

0.40

49,301,452

0.39

Independent 
Director

R.O.C.

Wenyi Chu

Female
55 years old

2021.07.07
<2015.06.09>

2024.07.06

Independent 
Director

R.O.C.

Lih J. Chen

Male
75 years old

2021.07.07
<2018.06.12>

2024.07.06

Independent 
Director

R.O.C.

Jyuo-Min Shyu Male

68 years old

2021.07.07
<2018.06.12>

2024.07.06

0

0

0

0

0

0

0

0

0

0

0

0

Independent 
Director

R.O.C.

Kuang Si Shiu Male

70 years old

2021.07.07
<2021.07.07>

2024.07.06

0

0

0

0

16

United Microelectronics Corporation  |  Annual Report 2021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.; 
Executive Director, UnitedDS Semiconductor (Shandong) Co., Ltd.

0

0

0

0

0

0

0

0

Professor, Department of Business Administration, 
National Taiwan University
Deputy Vice President for Academic Affairs, National 
Taiwan University
Ph.D. of London Business School

Academician, Academia Sinica
Distinguished Chair Professor, National Tsing Hua 
University
President, National Tsing Hua University
Deputy Minister, National Science Council
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
Dean, College of Electrical Engineering and 
Computer Science, National Tsing Hua University
Professor, Department of Computer Science, 
National Tsing Hua University
Ph.D. in Electrical Engineering and Computer 
Science, University of California, Berkeley

Chairman & President, Mega Financial Holding Co., 
Ltd.
Chairman & President, Mega International 
Commercial Bank Co., Ltd.
Chairman, Hua Nan Financial Holdings Co., Ltd.
Chairman, Hua Nan Commercial Bank Ltd.
Chairman, Land Bank of Taiwan Co., Ltd.
Executive Vice President, Chiao Tung Bank Co., Ltd.
Master in Business Administration, Indiana University

None

None

Independent Director, Qisda Corporation;
Independent Director, Far EasTone Telecommunications Co., Ltd.;
Director, Iridium Medical Technology Co., Ltd;
Director, GeoThings, Inc.;
Director, Alpha Ring Asia Inc.

Independent Director, Yuanta Financial Holdings Co., Ltd.;
Independent Director, Yuanta Commercial Bank Co., Ltd.

17

Corporate Governance ReportDirectors’ Information (Continue)

Title

Nationality 
/Place of 
Incorporation

Name

Gender 
Age

Date Elected
(Date 
Assumed)


Independent 
Director

R.O.C.

Wen-Hsin Hsu

Female
45 years old

2021.07.07
<2021.07.07>

2024.07.06

0

Term 
Expires

Shareholding When 
Elected

Present  
Shareholding

Common 
Shares

%

0

Common 
Shares

0

%

0

Director

R.O.C.

Ting-Yu Lin

Male
60 years old

2021.07.07
<2009.06.10>

Director

R.O.C.

N/A

Hsun Chieh 
Investment Co., 
Ltd.

2021.07.07
<1995.06.21>

R.O.C.

Representative:
SC Chien

Male
64 years old

2021.07.07
<2016.03.01>

2024.07.06

12,547,222

0.10

12,547,222

0.10

2024.07.06

441,371,000

3.55

441,371,000

3.54

2024.07.06

9,294,648

0.07

9,294,648

0.07

Director

R.O.C.

Silicon Integrated 
Systems Corp.

N/A

2021.07.07
<2005.06.13>

2024.07.06

285,380,424

2.30

285,380,424

2.29

U.S.A.

Representative:
Jason Wang

Male
59 years old

2021.07.07
<2015.06.09>

2024.07.06

18,715,000

0.15

18,715,000

0.15

R.O.C.

Former 
Independent 
Director

Cheng-Li Huang Male
N/A

2018.06.12
<2009.06.10>

2021.06.11

0

0

N/A

N/A

Note 1: Present shareholding figures are actual number of shares held on January 31, 2022.

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.

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: The term of Independent Director, Cheng-Li Huang is expired on July 7, 2021.

18

United Microelectronics Corporation  |  Annual Report 2021Spouse & Minor 
Shareholding

Common 
Shares

0

%

0

Experience (Education)

Selected Current Position at UMC and Other Companies

Professor, Department of Accounting, National 
Taiwan University
Associate Dean, International affairs, College of 
Management School, National Taiwan University
Director, Global MBA, National Taiwan University
Director, Case Center, National Taiwan University
Secretary General, Taiwan Accounting Association
Ph.D. in Accounting & Finance, Lancaster University

Independent Director, Unitech Printed Circuit Board Corp.;
Independent Director, ANT Precision Industry Co., Ltd.;
Director, Universal Venture Capital Investment Corporation;
Director, Taiwan Insurance Guaranty Fund

0

0

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)

N/A

N/A

Certified Public Accountant, Zheng Ji Accounting 
Firm
Professor, Department of Accounting, Tamkang 
University
Ph.D. of Business School, the University of Warwick

N/A

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. (4.80%); Hsing-Shen Liu (1.38%); Vanguard Emerging Markets Stock Index 
Fund, a series of Vanguard International Equity Index Funds (1.12%); JPMorgan Chase Bank N.A., Taipei Branch in custody 
for  Vanguard  Total  International  Stock  Index  Fund,  a  series  of  Vanguard  Star  Funds  (0.96%);  Standard  Chartered  Bank 
Limited as custodian of Credit Suisse International (0.90%); Cong-Ming Zhuang (0.46%); Wen-Chi Chen (0.45%); Vanguard 
FTSE All-World ex-US Small-Cap Index Fund, a series of Vanguard International Equity Index Funds (0.35%); Vanguard 
Fiduciary Trust Company Institutional Stock Market Index Trust II (0.35%)

Major Shareholders of UMC’s Major Institutional Shareholders

Name of Institutional Shareholders Major Shareholders (Holding Percentage)

Shieh Yong Capital Co., Ltd.

Unimicron Technology Corp. (16.67%); Silicon Integrated Systems Corp. (16.67%); Novatek Microelectronics Corp. (15.15%); 
Yann Yuan Investment Co., Ltd. (12.20%); Faraday Technology Corporation (12.12%); King Yuan Electronics Co., Ltd. (7.58%)

20

United Microelectronics Corporation  |  Annual Report 2021Directors’ Professional Qualification & Independent Directors’ Independence Information:

Criteria Professional Qualification & Experience (Note 1)

Independence Status

Name

Stan Hung

Wenyi Chu

Lih J. Chen

Jyuo-Min Shyu

Kuang Si Shiu

Wen-Hsin Hsu

Ting-Yu Lin

SC Chien

Jason Wang

• Financial accounting and strategic management
• Electronics-related industrial experience

• Financial accounting and strategic management
• Electronics-related industrial experience

• Engineering technology and organizational leadership
• Electronics-related industrial experience

• Engineering technology and organizational leadership
• Electronics-related industrial experience

• Financial accounting and organizational leadership
• Banking Finance and business policy-making

• Financial accounting and corporate sustainability
• Electronics-related industrial experience

• Financial accounting and strategic management
• Electronics-related industrial experience

• Engineering technology and organizational leadership
• Electronics-related industrial experience

• Financial accounting and organizational leadership
• Electronics-related industrial experience

The Diversity & Independence of the Board of Directors:

(1) The Diversity of the Board of Directors:

Meet the independence criteria (Note 2)

 Meet the independence criteria (Note 2)

 Meet the independence criteria (Note 2)

 Meet the independence criteria (Note 2)

 Meet the independence criteria (Note 2)

Number of Companies also 
Serves as Independent 
Director for

0

0

0

2

2

2

0

0

0

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. There are currently two seats reserved for female directors. 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 one director who has served for six years, two directors for three years and two 

directors who were newly elected on July 7, 2021. The board of UMC is composed of members with diversified backgrounds of industry, government and academia. The experiences of Board 

members include the president of a national university, a fellow 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.

(2) The Independence of the Board of Directors:

The UMC Board of Directors comprises of nine members, including five seats for independent directors and one for a non-executive director; three serve as administrative directors. More 

than one half of the director seats are independent directors.

Note 1: The Company’s Financial Experts of the Audit Committee are independent directors Wenyi Chu, Kuang Si Shiu and Wen-Hsin Hsu. All directors are not under any condition pursuant 

to Article 30 of the Company Act. Please refer to Page 16-19 of the Annual Report & the Company’s website: https://www.umc.com/en/IR_Director/directors_information for Directors’ relevant 

industrial experience.

Note 2: The Company’s independent directors, their spouses and relatives within the second degree of kinship are not directors, supervisors or employees of the Company or its affiliates; the 

Company’s independent directors, their spouses and relatives within the second degree of kinship (or in the name of other persons) do not own the Company’s outstanding shares, nor are 

directors, supervisors or employees of companies which have specific relationship with the Company; the Company’s independent directors, their spouses and relatives within the second 

degree of kinship do not provide the Company and its affiliates with services of business, legal affairs, finance and accounting in the past two years to get payment.

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

0.39

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

2,483,000

0.02

Senior Vice President R.O.C.

Oliver Chang

Male

2020.02.26

1,090,589

0.01

0

0

0

0

%

0.01

0

0

0

0

Senior Vice President 
& Chief Financial 
Officer

R.O.C.

Chitung Liu

Male

2005.10.20

3,200,217

0.03

150,000

0.00

Senior Vice President 
& General Counsel

R.O.C.

Lucas S Chang

Male

2018.01.01

550,000

Vice President

R.O.C.

TS Wu

Male

2013.01.01

1,535,809

0.00

0.01

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

2,126,863

0.02

Vice President

R.O.C.

S F Tzou

Male

2013.01.01

879,108

0.01

Vice President

R.O.C.

Osbert Cheng

Male

2014.08.01

755,000

0.01

0

304

0

0

0

0

0

0.00

0

0

0

0

22

United Microelectronics Corporation  |  Annual Report 2021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.; 
Executive 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, United Semiconductor Japan Co., Ltd.

None

Chairman, HeJian Technology (Suzhou) Co., Ltd.;
Chairman, United Semiconductor (Xiamen) Co., Ltd.; 
Director, Fortune Venture Capital Corp.;
Director, TLC Capital Co., Ltd.; 
Director, Unimicron Technology Corp.;
Director, Novatek Microelectronics Corp.;
Director, UMC Group (USA); 
Director, Green Earth Limited; 
Director, ECP Vita Pte. Ltd.; 
Director, UMC Capital Corp.; 
Director, United Microchip Corporation; 
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 Materials Science & Engineering,
National Tsing Hua University

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

Chairman, United Semiconductor Japan Co., Ltd.

None

23

Corporate Governance ReportManagers’ Information (Continue)

Title

Nationality

Name

Gender

Date 
Elected 
(Date 
Assumed)

Vice President

R.O.C.

G C Hung

Male

2015.01.28

1,940,791

Present Shareholding

Spouse &  
Minor Shareholding

Common 
Shares

%

0.02

Common 
Shares

0

%

0

Vice President

R.O.C.

Steven Hsu

Male

2016.03.16

510,000

0.00

2,889

0.00

Vice President

R.O.C.

Wenchi Ting

Male

2017.01.03

0

0

Vice President

R.O.C.

Jerry CJ Hu

Male

2013.04.02

1,245,000

0.01

Vice President

R.O.C.

Y S Shen

Male

2014.01.13

950,000

0.01

Vice President

R.O.C.

Steven S Liu

Male

2017.04.24

1,800,000

0.01

0

0

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

266,406

0.00

0

0

Vice President

R.O.C.

Francia Hsu

Female

2016.03.16

877,000

0.01

7,000

0.00

Vice President

R.O.C.

Mindy Lin

Female

2018.05.14

1,599,925

0.01

781,408

0.01

Vice President

R.O.C.

Linwu Kuo

Male

2021.06.15

0

0

R.O.C.

Eric Chen

Male

2011.02.14

1,260,000

0.01

0

0

0

0

R.O.C.

Johnson Liu

Male

2014.11.04

511,413

0.00

401,631

0.00

R.O.C.

Victor Chuang

Male

2019.03.28

364,671

0.00

13,943

0.00

Vice President & Chief 
Human Resources 
Officer

Associate Vice 
President

Associate Vice 
President

24

United Microelectronics Corporation  |  Annual Report 2021Experience/Education

Selected Current Position at Other Companies

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

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

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

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

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

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

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

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

Vice President, UMC
Bachelor in Material 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

Director, Wavetek Microelectronics Corporation

None

None

None

Director, Faraday Technology Corporation

None

None

None

None

None

None

Vice President, UMC
Master in European Studies, 
University of Katholieke Universiteit Leuven

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

Independent Director, Shine Trend International Multimedia Technology Co., Ltd.

Director, Best Elite International Limited

Associate Vice President, UMC
Bachelor in Physics, 
Tamkang University

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

None

None

25

Corporate Governance ReportManagers’ Information (Continue)

Title

Nationality

Name

Gender

Date 
Elected 
(Date 
Assumed)

R.O.C.

Chuck Chen

Male

2019.03.28

5 5 0,0 0 0

Common 
Shares

%

0.00

Present Shareholding

Spouse &  
Minor Shareholding

Common 
Shares

0

0

0 

%

0

0

0 

R.O.C.

JT Lin

Male

2021.09.16

365,000

0.00

R.O.C.

Yau Kae Sheu

Male

2014.01.13

1,000,000

0.01

R.O.C.

J Y Wu

Male

2014.05.01

720,191

0.01

587

0.00

Singapore

Purakh Raj Verma

Male

2017.08.09

1,200,000

0.01

0

0

R.O.C.

Yanan Mou

Male

2019.07.01

0

0

140,146

0.00

R.O.C.

Remi Yu

Male

2019.11.15

353,000

0.00

0

0

R.O.C.

Cedric Lee

Male

2022.01.20

150,000

0.00

13,000

0.00

R.O.C.

Michael CY Wang

Male

2019.12.31

0

0

0

0

R.O.C.

C P Yen

Male

2015.09.16

710,645

0.01

464,000

0.00

R.O.C.

Pang Min Wang

Male

2018.09.14

221,126

0.00

16

0.00

R.O.C.

Ray Yang

Male

2020.07.01

176,274

0.00

200,117

0.00

R.O.C.

Bellona Chen

Female

2020.08.01

405,126

0.00

R.O.C.

Louis Hsieh

Male

2020.10.01

191,000

0.00

0

0

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

Associate Vice 
President

Former Associate Vice 
President

R.O.C.

Former Associate Vice 
President

R.O.C.

Ji Fu Kung

Male

2013.01.01

Le Tien Jung

Male

2013.01.01

N/A

N/A

N/A

N/A

N/A

N/A 

 N/A

 N/A

Note 1: Ji Fu Kung and Le Tien Jung, former managers, were dismissed in 2021 and 2022, respectively.

Note 2: Present shareholding figures are actual number of shares held on January 31, 2022.

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 2021Experience/Education

Selected Current Position at Other Companies

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
Master in Electrical Engineering, 
University of Missouri

Associate Vice President, UMC
Master in Physics, 
Tamkang 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 Material Engineering, 
National Chiao Tung University

Associate Vice President, UMC
Master in Chemical Engineering, 
Cornell University

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
Ph.D. in Materials Science, 
University of Connecticut

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

None

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

N/A

27

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

Title

Name

Base Compensation 
(A)

Severance Pay and 
Pensions(B)

 Director's Remuneration Total Remuneration 
and (A+B+C+D) as 
a % of Net Income 
(%)

Compensation to 
Directors(C)

Business Execution 
Expenses(D)

The
Company

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

The
Company

Companies
 in the
Consolidated 
Financial 
Statements

0

0

0

0 

11,229

11,229

1,300

1,530

12,529
0.02%

12,759
0.02%

0

0

0

0 

14,036

14,036

4,490

4,490

18,526
0.03%

18,526
0.03%

Chairman

Stan Hung

Director

Ting-Yu Lin

Director

Hsun Chieh 
Investment Co., Ltd.

Representative:
SC Chien

Silicon Integrated 
Systems Corp.

Representative:
Jason Wang

Wenyi Chu 

Lih J. Chen

Jyuo-Min Shyu

Kuang Si Shiu

Wen-Hsin Hsu

Cheng-Li Huang

Director

Independent 
Director

Independent 
Director

Independent 
Director

Independent 
Director

Independent 
Director

Former 
Independent 
Director

Note: 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 2021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

Total Compensation  and 
(A+B+C+D+E+F+G) as a % 
of  Net Income (%)

Severance Pay
and
Pensions (F)

Employees' Profit Sharing Bonus (G)

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 NT$

Compensation 
from
Other Non- 
Consolidated
Entities
Invested
by the
Company

366,920

423,041

295

295

39,194

0

46,110

0

418,938
0.75%

482,205
0.86%

7,171

0

0

0

0

0

0

0

0

18,526
0.03%

18,526
0.03%

None

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)

The
Company

Companies
 in the
Consolidated 
Financial 
Statements

The
Company

All Consolidated 
Entities and 
Non-consolidated 
Affiliates

Names of Directors

Lower than NT$1,000,000

SC Chien , 
Jason Wang, Cheng-Li Huang

SC Chien , 
Jason Wang, Cheng-Li Huang

Cheng-Li Huang

Cheng-Li Huang

NT$1,000,000 (inclusive)~  
NT$2,000,000 (exclusive)

NT$2,000,000 (inclusive)~  
NT$3,500,000 (exclusive)

Stan Hung, 
Kuang Si Shiu, Wen-Hsin Hsu,
Hsun Chieh Investment Co., Ltd., 
Silicon Integrated Systems Corp.

Stan Hung, 
Kuang Si Shiu, Wen-Hsin Hsu,
Hsun Chieh Investment Co., Ltd., 
Silicon Integrated Systems Corp.

Kuang Si Shiu, Wen-Hsin Hsu,
Hsun Chieh Investment Co., Ltd., 
Silicon Integrated Systems Corp.

Kuang Si Shiu, Wen-Hsin Hsu,
Hsun Chieh Investment Co., Ltd., 
Silicon Integrated Systems Corp.

NT$3,500,000 (inclusive)~  
NT$5,000,000 (exclusive)

Wenyi Chu, 
Lih J. Chen,
Jyuo-Min Shyu, Ting-Yu Lin

Wenyi Chu, 
Lih J. Chen,
Jyuo-Min Shyu, Ting-Yu Lin

Wenyi Chu, 
Lih J. Chen,
Jyuo-Min Shyu, Ting-Yu Lin

Wenyi Chu, 
Lih J. Chen,
Jyuo-Min Shyu, Ting-Yu Lin

NT$5,000,000 (inclusive)~  
NT$10,000,000 (exclusive)

NT$10,000,000 (inclusive)~ 
NT$15,000,000 (exclusive)

NT$15,000,000 (inclusive)~  
NT$30,000,000 (exclusive)

NT$30,000,000 (inclusive)~  
NT$50,000,000 (exclusive)

NT$50,000,000 (inclusive)~  
NT$100,000,000 (exclusive)

NT$100,000,000 or More

Total

12

12

Stan Hung, 
SC Chien , 
Jason Wang,

12

Stan Hung, 
SC Chien , 
Jason Wang,

12

30

United Microelectronics Corporation  |  Annual Report 2021  
  
 
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

Chairman & Chief 
Strategic Officer

Stan Hung

President

SC Chien

President

Jason Wang

Executive Vice 
President

Ming Hsu

Senior Vice President Oliver Chang

Senior Vice President 
& Chief Financial 
Officer

Senior Vice President  
& General Counsel

Chitung Liu

Lucas S Chang

Vice President

Vice President

Vice President

Vice President

TS Wu

C C Hsu

M C Lai

S F Tzou

Vice President

Osbert Cheng

Vice President

G C Hung

Vice President

Steven Hsu

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

Vice President

Vice President & Chief 
Human Resources 
Officer

Mindy Lin

Linwu Kuo

Eric Chen

86,056

102,233

2,322

2,322

1,006,690

1,065,007

Note: Mr. Osbert Cheng, Mr. Steven Hsu and Mr. S F Tzou were promoted to vice presidents in January 2022, so there was no declared amount in year 2021.

32

United Microelectronics Corporation  |  Annual Report 2021Employees' Profit Sharing Bonus(D) Total Compensation  and (A+B+C+D) as a 
% of Net Income (%)

 In Thousand NT$

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

177,509

0

197,060

0

1,272,577
2.28%

1,366,622
2.45%

8,832

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

All Consolidated Entities and Non-
consolidated Affiliates

Linwu Kuo 

 Linwu Kuo

Mindy Lin 

Mindy Lin 

Lucas S Chang, TS Wu, 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  

TS Wu, 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, Oliver Chang, Chitung Liu, C C Hsu 

Ming Hsu, Oliver Chang, Chitung Liu, Lucas S Chang, 
C C Hsu

Stan Hung, SC Chien, Jason Wang

Stan Hung, SC Chien, Jason Wang

22

22

Lower than NT$1,000,000

NT$1,000,000 (inclusive)~  
NT$2,000,000 (exclusive)

NT$2,000,000 (inclusive)~  
NT$3,500,000 (exclusive)

NT$3,500,000 (inclusive)~  
NT$5,000,000 (exclusive)

NT$5,000,000 (inclusive)~  
NT$10,000,000 (exclusive)

NT$10,000,000 (inclusive)~ 
NT$15,000,000 (exclusive)

NT$15,000,000 (inclusive)~  
NT$30,000,000 (exclusive)

NT$30,000,000 (inclusive)~  
NT$50,000,000 (exclusive)

NT$50,000,000 (inclusive)~  
NT$100,000,000 (exclusive)

NT$100,000,000 or More

Total

34

United Microelectronics Corporation  |  Annual Report 2021  
 
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 NT$

Total

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

Chairman & Chief Strategic 
Officer

President

President

Stan Hung

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

Vice President

Vice President

Vice President

Vice President & Chief Human 
Resources Officer

TS Wu

C C Hsu

M C Lai

S F Tzou

Osbert Cheng

G C Hung

Steven Hsu

Wenchi Ting

Jerry CJ Hu

Y S Shen

Steven S Liu

SR Sheu

M L Liao

S S Hong

Francia Hsu

Mindy Lin

Linwu Kuo

Eric Chen

Associate Vice President

Johnson Liu

Associate Vice President

Victor Chuang

Associate Vice President

Chuck Chen

Associate Vice President

JT Lin

Associate Vice President

Yau Kae Sheu

Associate Vice President

J Y Wu

Associate Vice President

Purakh Raj Verma

Associate Vice President

Yanan Mou

Associate Vice President

Remi Yu

Associate Vice President

Cedric Lee

Associate Vice President

Michael CY Wang

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

Former Associate Vice 
President

Ji Fu Kung

Le Tien Jung

0

278,939

278,939

0.05%

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 NT$)

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

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

2021

2020

The Company

Companies in 
the Consolidated                              
Financial Statements

The Company

Companies in 
the Consolidated                              
Financial Statements

55,780,255

55,780,255

29,189,489

29,189,489

0.06

2.28

0.06

2.45

0.14

2. 01

0.22

2.12

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

Compensation

UMC  shall  assess  the  performance  of  directors  and  officers  according 

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

to  the  Rules  for  Performance  Assessment  of  the  Board  of  Directors 

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

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

Independent  Directors)  compensation  for  each  profitable  fiscal  year 

decide their compensation. An adequate compensation scheme will be 

after offsetting any cumulative losses. Directors (including Independent 

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

Directors)  may  only  receive  compensation  in  cash.  In  accordance 

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

with  Article  17,  remunerations  for  all  directors  (including  Independent 

performance  assessment  and  compensation  proposals  were  reviewed 

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

and  approved  by  Remuneration  Committee  and  Board  of  Directors. 

meeting of shareholders according to involvements and contributions to 

The  Company  will  review  the  remuneration  policy  foresaid  based  on 

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

macroeconomics  and  business  strategies  to  achieve  both  corporate 

of the same industry.

sustainability and interest of stakeholders.

Policy for Management Team’s Compensation 

The Company annually evaluates its salary level with similar industries 

to  ensure  the  Company’s  salary  is  competitive.  The  Company’s  salary 

structure can be divided into fixed and variable. The compensation is set 

to fully reflect the achievements for individuals and teams.

36

United Microelectronics Corporation  |  Annual Report 2021 
Corporate Governance Practices
Information of Board Meeting Operation

Board meetings were held 9 times in 2021; all independent directors attended each meeting in person; the average attendance rate of all directors was 
98.72%; the attendances of directors were as follows:

Title

Name

Chairman

Stan Hung

Independent 
Director

Independent 
Director

Independent 
Director

Independent 
Director

Independent 
Director

Director

Director

Director

Wenyi Chu

Lih J. Chen

Jyuo-Min Shyu

Kuang Si Shiu

Wen-Hsin Hsu

Ting-Yu Lin

Hsun Chieh Investment Co., Ltd.
Representative:
SC Chien

Silicon Integrated Systems Corp.
Representative:
Jason Wang

Former Independent 
director

Cheng-Li Huang

Attendance 
in Person

By Proxy

Attendance Rate (%)

Remarks

9

9

9

9

6

6

9

9

8

3

0

0

0

0

0

0

0

0

1

0

100.00

Re-elected

100.00

Re-elected

100.00

Re-elected

100.00

Newly elected on July 7, 2021

100.00

Newly elected on July 7, 2021

100.00

Re-elected

100.00

Re-elected

100.00

Re-elected

88.89

Re-elected

100.00

Term expired on July 7, 2021

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 24, 2021: 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 24, 2021 and July 28, 2021: 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)  Proposal to sign an industry-academia cooperation and academic reward contract with National Taiwan University on July 7, 2021: Independent Director Wenyi 
Chu and Independent Director Wen-Hsin Hsu were in conflict of interest and avoided the discussion and vote of the proposal since Independent Director Wenyi 
Chu and Independent Director Wen-Hsin Hsu were also the professors of National Taiwan University. The proposal was approved without dissent by all other 
Directors in attendance.

(4)  Proposal to sign an industry-academia cooperation and academic reward contract with National Tsing Hua University on July 7, 2021: Independent Director Lih J. 
Chen was in conflict of interest and avoided the discussion and vote of the proposal since Independent Director Lih J. Chen was also the professor of National 
Tsing Hua University. 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
The UMC Board of Directors re-elected at the 2021 Annual General Meeting comprises nine members, including five seats for independent directors and one for a non-
executive director; three serve as administrative directors. More than one half of the director seats are independent directors. There are two seats currently reserved 

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

2021/1/1~2021/12/31

The Company’s board 
self-evaluation scope covers 
the evaluation of the board,  
functional committees 
(including the Audit 
Committee, Remuneration  
Committee, Capital Budget  
Committee and Nominating  
Committee) 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 2021     
     
     
     
     
     
     
     
     
Operation of the Audit Committee

The  Audit  Committee  assists  the  Board  of  Directors  in  performing  its 
supervision  functions.  It  is  also  responsible  for  tasks  defined  by  the 
Company Act, Securities and Exchange Act and other relevant regulations. 
Since  UMC  is  listed  on  the  NYSE,  it  also  has  to  comply  with  the  U.S. 
regulations regarding foreign issuers. The Audit Committee is comprised 
of  all  independent  directors,  with  3  financial  experts,  all  members’ 
professionalism  requirements  and  experience,  please  refer  to  page 
16-19 on Directors’ Information and page 21 on Directors’ Professional 
Qualification & Independent Directors’ Independence Information of this 
annual  report.  It’s  operating  according  to  the  Audit  Committee  Charter 
(please refer to the Company’s website at
https://w w w.umc.com/upload/media /08 _ Investors/Corporate_
Governance/Audit_Committee/Audit_Committee_Charter_Eng.pdf).
According to the relevant regulations, the Audit Committee shall convene 
at least four regular meetings per year. In 2021 a total of seven meetings 
were convened; it shall also maintain good communication channels with 
the Company’s internal auditors, Chief of Corporate Governance Officer, 
independent auditors, and management.

The Audit Committee is responsible for periodic review of the following 
important annual matters:
•  Financial statements 
•  Internal control system
•  Material transactions of assets, derivatives, loans,  
  endorsements, guarantees
•  Audit plans of internal and external auditors and their 
  execution status
•  Engaging and removing the Company’s independent 
  auditors and accessing such auditors’ remuneration and 

independence

•  Risks and control procedures of compliance with 
  government law 
•  Execution of documentation that involves government 
  agencies 
•  Implementation of Whistleblower Program and Code of 
  Conduct

Information of Audit Committee Operation

There were seven Audit Committee meetings in 2021, and the attendance status is shown in the following table:

Title

Name

Attendance Proxy Attendance

Actual Attendance 
Rate (%)

Note

Lih J. Chen

Wenyi Chu

Jyuo-Min Shyu

Kuang Si Shiu

Wen-Hsin Hsu

Cheng-Li Huang

Independent 
Director

Independent 
Director

Independent 
Director

Independent 
Director

Independent 
Director

Former 
Independent 
Director

7

7

7

5

5

2

0

0

0

0

0

0

100.00

Audit Committee convener
Re-elected

100.00

Re-elected

100.00

Re-elected

100.00

Newly elected on July 7, 2021

100.00

Newly elected on July 7, 2021

100.00

Term expired on July 7, 2021

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 Audit Committee meeting, the content of motion, the 

independent  directors’  opinions  expressing  objections,  reservations  or  major  suggestions,  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 
Audit Committee

Content of Motion

Content of the 
independent 
directors’ opinions 
expressing 
objections, 
reservations or 
major suggestions

Resolution of the 
Audit Committee

Company’s 
Response to the 
Opinion of the Audit 
Committee

1. Approved the 2020 Consolidated Financial Statements (including  Parent 

None.

Company only Financial Statements).
2. Approved the 2020 Business Report.
3. Approved the 2020 Earnings Distribution Chart.
4. Approved the 2020 Statement of Internal Control System.
5. Approved the content of appointed service and fee for the independent 

auditor appointed in 2021.

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

Foundation.

7. Approved termination of the issuance plan for private placement, which 

was approved at the 2020 Annual General Meeting.

8. Approved the proposal for private placement based on future operation 
needs and will propose this at the 2021 Annual General Meeting for 
discussion.

9. Approved the acquisition of the Right-of-Use Asset from subsidiary 

Wavetek Microelectronics Corporation.

10. Approved the issuance of unsecured straight corporate bonds.
11. Approved engagement in derivatives trading.

1. Approved the Q1, 2021 Consolidated Financial Statements.
2. Approved issuance of unsecured zero coupon euro exchangeable 

None.

bonds.

3. Approved the investment in TGVest Asia Partners II (Taiwan), L.P.
4. Approved lending funds to Wavetek Microelectronics Corporation.
5. Approved UMC’s donation to National Tsing Hua University.

1. Approved the Q2, 2021 Consolidated Financial Statements.
2. Approved to decrease the endorsement and guarantee of the loan for 

None.

United Semiconductor (Xiamen) Co., Ltd.

1.  Approved the Share exchange between the Company and Chipbond 

None.

Technology Corporation.

1. Approved the Q3, 2021 Consolidated Financial Statements.
2. Approved to adjust the endorsement and guarantee of the loan for 

None.

United Semiconductor (Xiamen) Co., Ltd.

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

None.

implementation rules.

2. Approved to decrease the endorsement and guarantee of the loan for 

United Semiconductor (Xiamen) Co., Ltd.

Approved by all 
members present 
in the 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.

Approved by all 
members present 
in the meeting.

Approved by all 
members present 
in the meeting.

Approved by all 
members present 
in the meeting.

Approved by all 
members present 
in the meeting.

Approved by 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.

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

February 24, 2021, 
the 15th meeting of 
the 4th session

April 28, 2021, the 
16th meeting of the 
4th session

July 28, 2021, the 
1st meeting of the 
5th session

September 3, 2021, 
the 2nd meeting of 
the 5th session

October 27, 2021, the 
3rd meeting of the 5th 
session

December 15, 2021, 
the 5th meeting of the 
5th session

40

United Microelectronics Corporation  |  Annual Report 2021 
Operation of the Audit Committee (Continue)

Date/Session of 
Audit Committee

Content of Motion

Content of the 
independent 
directors’ opinions 
expressing 
objections, 
reservations or 
major suggestions

Resolution of the 
Audit Committee

Company’s 
Response to the 
Opinion of the Audit 
Committee

February 24, 2022, 
the 6th meeting of 
the 5th session

1. Approved the 2021 Consolidated Financial Statements (including  Parent 

None.

Company only Financial Statements).
2. Approved the 2021 Business Report.
3. Approved the 2021 Earnings Distribution Chart.
4. Approved the cash distribution from capital surplus.
5. Approved the 2021 Statement of Internal Control System.
6. Approved the content of appointed service and fee for the independent 

auditor appointed in 2022.

7. Approved the issuance of Restricted Stock Awards.
8. Approved amendment of the UMC Acquisition or Disposal of Assets 

Procedure.

9. Approved the Company’s donation to UMC Science and Culture 

Foundation.

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 2021.

2. Implementation of avoidance of independent director with respect to motion of stake: there was no such situation in the Audit Committee in 2021. 

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.

    (4)  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

1. Has the company established and does it disclose the Corporate Governance Best-Practice Principles based on “Corporate Governance Practice 

Yes

No

Principles for TWSE/TPEx Listed Companies?” 

2. Shareholding Structure & Shareholders’ Rights

(1)  Has the company established 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)  Has the company established and does it execute the risk management and firewall system within its conglomerate structure? 

(4)  Has the company established 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)  Has the company voluntarily established other functional committees in addition to the Remuneration Committee and the Audit Committee?

42

United Microelectronics Corporation  |  Annual Report 2021 
 
 
 
 
 
 
 
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 in 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  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  has  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  has  also  established  criteria  to  ensure 
the  diversity  of  the  Board  members.  The  UMC  Board  of  Directors  comprises  nine  members,  including  five  seats  for 
independent directors and one for a non-executive director; three serve as administrative directors. More than one half 
of the director seats are independent directors. There are two seats currently reserved for female directors. 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 one director that has served for six years, two director for three years, and two 
directors are newly elected on July 7, 2021. The Board of UMC is composed of members with diversified backgrounds of 
industry, government and academia. The experiences of Board members include the president of a national university; a 
fellow of Academia Sinica; the Minister of Science and Technology; the president of ITRI; experts in finance, accounting 
and strategy management fields; and professionals from the semiconductor industry and ICT business administration. 
The  directors  satisfy  basic  criteria  and  professional  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, and the Directors’ Information and the 
Skill Matrix of Board members for the implementation of Board diversification on the Company’s website:
https://www.umc.com/en/Html/nominating_committee.

To meet the needs of industry characteristics and operations, UMC has established the Capital Budget Committee. The 
Committee currently comprises five independent 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  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) Has the company established a standard to measure the performance of the Board, and has it been implemented 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 has a Chief Corporate 
Governance Officer been appointed to be in charge of corporate governance affairs (including but not limited to providing information for directors 
and supervisors to perform their functions, assisting directors and supervisors with legal compliance, handling matters relating to board meetings 
and shareholders meetings according to laws, producing minutes of board meetings, and shareholders meetings)?

44

United Microelectronics Corporation  |  Annual Report 2021 
 
 
 
Implementation Status

Abstract Explanation

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 Board of Directors, its functional committees (including 
the Audit Committee, Remuneration Committee, Capital Budget Committee and Nominating Committee) and individual 
board  members’  performance.  In  2021,  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, 2022. The performance result was ‘Excellent’. For the training of directors, the 
Company  will  continue  to  arrange  director  training  programs  according  to  the  actual  needs  of  directors  to  assist  the 
development of directors’ professional knowledge and skills.

B. The performance of the Board is also assessed 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,  Taiwan  Corporate 
Governance  Association,  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 non-audit service; peer review; quality of audit services; external auditors’ 
experience; the communication and interaction between external auditors, management, and internal audit supervisors; 
whether UMC’s independent directors and relevant senior executives are independent from the external auditor; whether 
an auditor from the accounting firm has worked at the Company as a senior financial supervisor or a role with significant 
authority; and whether 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, Compensation 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.

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

None

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. Has the company established a communication channel and built a designated section on its website for stakeholders (including but not limited to 

shareholders, employees, customers, and suppliers), responded appropriately to stakeholders on corporate social responsibility issues?

Yes

No

6.  Has the company appointed 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 2021 
 
 
 
 
 
 
 
 
Implementation Status

Abstract Explanation

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.

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

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 
situation 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 has 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  2021  annual  financial  report  was 
completed on February 24, 2022.

(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 48-49 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 54-55 on Remuneration Committee Operations in this annual report.
(3) Risk  management  policies  and  risk  measurement  standards  implementation:  Please  refer  to  Page  133  on  Risk 
   Management and Evaluation in this annual report.
(4) Customer policy implementation: Please refer to Page 116 on Overview of Market, Production, and Sales in this annual  
report AandAtheAUMCASustainabilityAReportAonAtheAUMCAwebsiteAatAhttps://www.umc.com/en/Download/ 
corporate_sustainability_reports. 

(5) Employee  Rights,  Employment  Care,  Investor  Relations,  Supplier  Relationships  and  Stakeholders  Rights  
Implementation:APleaseAreferAtoAtheAUMCASustainabilityAReportAonAtheAUMCAwebsiteAatAhttps://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  2021  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 ranked in the top 5% of companies in “Corporate Governance Evaluation” every year since 2015.  The UMC Board of Directors re-elected at the 2021 Annual 
General Meeting comprises nine members, including five seats for independent directors and one for a non-executive director; three serve as administrative directors. 
More than one half of the director seats are independent directors. There are two seats currently reserved for  female directors. Based on our policy of gender equality, 
UMC will increase the female director seats progressively.

47

Corporate Governance Report 
 
 
 
 
 
 
 
 
Training 
Hours

Compliance 
with 
Regulations 
(Note)

3 hrs

3 hrs

Yes

Yes

3 hrs

Yes

Continuing Education/Training of Directors in 2021:

Title

Name

Study Period

Sponsoring 
Organization

Course

Chairman

Stan Hung

2021.09.10

2021.09.10

From

To

INDEPENDENT 
DIRECTOR 
ASSOCIATION TAIWAN

The Prevention & 
Correspondence of Insider 
Trading

2021.10.26

2021.10.26

INDEPENDENT 
DIRECTOR 
ASSOCIATION TAIWAN

2021.12.15

2021.12.15

Independent 
Director

Wenyi Chu

2021.09.01

2021.09.01

2021.12.15

2021.12.15

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

FINANCIAL 
SUPERVISORY 
COMMISSION

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

2021.12.17

2021.12.17

SECURITIES & FUTURES 
INSTITUTE

Independent 
Director

Lih J. Chen

2021.09.01

2021.09.01

FINANCIAL 
SUPERVISORY 
COMMISSION

The Practical Case & Preventive 
Strategy of Related Party 
Transaction & Non-arm's Length 
Transaction

The Challenges & Opportunities 
of Net Zero Emissions for 
Enterprises 

The 13th Taipei Corporate 
Governance Forum

3 hrs

Yes

The Challenge & Opportunity 
of Enterprise Operation to Net 
Zero Emissions

3 hrs

Yes

3 hrs

Yes

Listed Company-How to 
Use Futures Commodities 
for Hedging Operation and 
Corporate Sustainable 
Development Seminar

The 13th Taipei Corporate 
Governance Forum

2021.10.13

2021.10.13

SECURITIES & FUTURES 
INSTITUTE

Insider Equity Trading 
Regulations Advocacy Meeting 
in 2021

Independent 
Director

Jyuo-Min 
Shyu

2021.04.27

2021.04.27

SECURITIES & FUTURES 
INSTITUTE

The Discussion of Strategy and 
Tool of Employee Compensation

2021.09.01

2021.09.01

FINANCIAL 
SUPERVISORY 
COMMISSION

The 13th Taipei Corporate 
Governance Forum

2021.09.08

2021.09.08

TAIWAN ACADEMY OF 
BANKING AND FINANCE

Digital Transformation of 
Enterprises 

3 hrs

3 hrs

3 hrs

6 hrs

3 hrs

Yes

Yes

Yes

Yes

Yes

Yes

Enterprise Risk Management

3 hrs

The Challenges & Opportunities 
of Net Zero Emissions for 
Enterprises

3 hrs

Yes

2021.11.19

2021.11.19

2021.12.15

2021.12.15

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

48

United Microelectronics Corporation  |  Annual Report 2021Continuing Education/Training of Directors in 2021:

Title

Name

Study Period

Sponsoring 
Organization

Course

Independent 
Director

Kuang Si 
Shiu

From

To

2021.05.04

2021.05.04

TAIWAN SECURITIES 
ASSOCIATION

The Practice & Case Study 
of Anti-Money Laundering & 
Combating the Financing of 
Terrorism

2021.08.03

2021.08.03

TAIWAN SECURITIES 
ASSOCIATION

The Challenge & Strategy to 
Information Security

2021.12.15

2021.12.15

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

The Challenges & Opportunities 
of Net Zero Emissions for 
Enterprises

2021.12.17

2021.12.17

SECURITIES & FUTURES 
INSTITUTE

Listed Company-How to 
Use Futures Commodities 
for Hedging Operation and 
Corporate Sustainable 
Development Seminar

Training 
Hours

Compliance 
with 
Regulations 
(Note)

3 hrs

Yes

3 hrs

3 hrs

Yes

Yes

3 hrs

Yes

Independent 
Director

Wen-Hsin 
Hsu

2021.04.14

2021.04.14

2021.05.07

2021.05.07

2021.09.01

2021.09.01

2021.12.15

2021.12.15

Director

Ting-Yu Lin

2021.09.01

2021.09.01

2021.12.15

2021.12.15

SC Chien

2021.09.01

2021.09.01

Representative 
of Juristic-
Person Director

INDEPENDENT 
DIRECTOR 
ASSOCIATION TAIWAN

The M&A Strategy & Ingenious 
Method of Enterprise’s 
Transformation from Board of 
Directors’ Point of View

INDEPENDENT 
DIRECTOR 
ASSOCIATION TAIWAN

In-depth Analysis of the Material 
Meaning of Financial Report 
from the Chairman’s altitude

3 hrs

Yes

3 hrs

Yes

FINANCIAL 
SUPERVISORY 
COMMISSION

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

FINANCIAL 
SUPERVISORY 
COMMISSION

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

FINANCIAL 
SUPERVISORY 
COMMISSION

The 13th Taipei Corporate 
Governance Forum

The Challenges & Opportunities 
of Net Zero Emissions for 
Enterprises

The 13th Taipei Corporate 
Governance Forum

The Challenges & Opportunities 
of Net Zero Emissions for 
Enterprises

The 13th Taipei Corporate 
Governance Forum

6 hrs

3 hrs

3 hrs

3 hrs

3 hrs

3 hrs

Yes

Yes

Yes

Yes

Yes

Yes

2021.09.10

2021.09.10

INDEPENDENT 
DIRECTOR 
ASSOCIATION TAIWAN

The Prevention & 
Correspondence of Insider 
Trading

2021.12.15

2021.12.15

Jason Wang

2021.09.01

2021.09.01

Representative 
of Juristic-
Person Director

2021.12.15

2021.12.15

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

FINANCIAL 
SUPERVISORY 
COMMISSION

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

The Challenges & Opportunities 
of Net Zero Emissions for 
Enterprises

3 hrs

Yes

The 13th Taipei Corporate 
Governance Forum

6 hrs

Yes

The Challenges & Opportunities 
of Net Zero Emissions for 
Enterprises 

3 hrs

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.”

49

Corporate Governance ReportContinuing Education/Training of Managers in 2021:

Title

Name

Course Date

Organizer

Course Title

Course Hours

Senior Vice President & 
Chief Financial Officer

Chitung Liu

2021.03.19

2021.03.30

2021.05.25

2021.05.27

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

ACCOUNTING 
RESEARCH AND 
DEVELOPMENT 
FOUNDATION

New Policies for Sustainable Development of 
Enterprises and Analysis of Fraud Prevention 
Cases

Legal Compliance Audit Practices of the 
Company’s “Shareholders’ Meeting”

Analyze the Positive Impact of ESG on Companies

Practical Cases of "Inside Trading" and Discussion 
on Legal Liability

3

3

3

3

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

M C Lai

S F Tzou

Vice President

Osbert Cheng

Vice President

G C Hung

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Steven Hsu

Jerry CJ Hu

Y S Shen

SR Sheu

M L Liao

S S Hong

Vice President

Francia Hsu

2021.02.03

UNITED 
MICROELECTRONICS 
CORP.

【Legal Course】Introduction of Trade Secrets Act

2

Eric Chen

Vice President & Chief 
Human Resources 
Officer
Associate Vice President Chuck Chen
Associate Vice President

JT Lin

Associate Vice President Yau Kae Sheu
Associate Vice President

J Y Wu

Associate Vice President Yanan Mou
Associate Vice President Remi Yu
Associate Vice President Cedric Lee
Associate Vice President Michael CY Wang
Associate Vice President Pang Min Wang
Associate Vice President Bellona Chen
Associate Vice President Louis Hsieh

50

United Microelectronics Corporation  |  Annual Report 2021Continuing Education/Training of Managers in 2021:

Title

Executive Vice 
President

Name

Ming Hsu

Senior Vice President

Oliver Chang

Vice President

Osbert Cheng

Vice President

Vice President

Vice President

Vice President & Chief 
Human Resources 
Officer

Associate Vice 
President
Associate Vice 
President
Associate Vice 
President
Associate Vice 
President
Associate Vice 
President
Senior Vice President

Senior Vice President & 
Chief Financial Officer

Vice President

Vice President

Vice President

Steven Hsu

Jerry CJ Hu

Steven S Liu

Eric Chen

Victor Chuang

Chuck Chen

Remi Yu

Michael CY Wang

C P Yen

Oliver Chang

Chitung Liu

TS Wu

M C Lai

S F Tzou

Vice President

Osbert Cheng

Vice President

G C Hung

Vice President

Steven Hsu

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President 

Vice President & Chief 
Human Resources 
Officer

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Wenchi Ting

Jerry CJ Hu

Steven S Liu

SR Sheu

M L Liao

S S Hong

Mindy Lin

Eric Chen

Victor Chuang

Chuck Chen

JT Lin

Yau Kae Sheu

J Y Wu

Yanan Mou

Course Date

Organizer

Course Title

Course Hours

2021.04.19
2021.05.14

UNITED 
MICROELECTRONICS 
CORP.

【Executive Program】Organizational 
Development Theory and Practice

3

2021.04.21
2021.04.22

UNITED 
MICROELECTRONICS 
CORP.

Regulations and Practices to Prevent Insider 
Trading and Insider Equity Trading

3

51

Corporate Governance ReportContinuing Education/Training of Managers in 2021:

Course Date

Organizer

Course Title

Course Hours

2021.09.03

UNITED 
MICROELECTRONICS 
CORP.

Second Curve Thinking Model

2

2021.09.28

UNITED 
MICROELECTRONICS 
CORP.

【2021 Master Forum】Giant’s World-key 
   Decisions

2

Title

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

Former Associate Vice 
President

Vice President

Vice President

Vice President 

Vice President & Chief 
Human Resources 
Officer

Associate Vice 
President

Associate Vice 
President

Executive Vice 
President

Name

Remi Yu

Cedric Lee

Michael CY 
Wang

C P Yen

Pang Min Wang

Ray Yang

Louis Hsieh

Ji Fu Kung

Le Tien Jung

TS Wu

M C Lai

Linwu Kuo

Eric Chen

Michael CY 
Wang

Pang Min Wang

Ming Hsu

Senior Vice President

Oliver Chang

Vice President

Vice President

Vice President

TS Wu

M C Lai

S F Tzou

Vice President

Osbert Cheng

Vice President

G C Hung

Vice President

Vice President

Steven Hsu

Jerry CJ Hu

Vice President

Steven S Liu

Vice President

Vice President

Vice President & Chief 
Human Resources 
Officer

SR Sheu

M L Liao

Eric Chen

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

52

Victor Chuang

Chuck Chen

JT Lin

Yau Kae Sheu

J Y Wu

Cedric Lee

Michael CY 
Wang

United Microelectronics Corporation  |  Annual Report 2021Continuing Education/Training of Managers in 2021:

Title

Name

Course Date

Organizer

Course Title

Course Hours

Associate Vice 
President

Associate Vice 
President
Associate Vice 
President

Chairman & Chief 
Strategic Officer

President

President

Pang Min Wang

Ray Yang

Bellona Chen

Stan Hung

SC Chien

Jason Wang

Senior Vice President

Oliver Chang

Senior Vice President & 
Chief Financial Officer

Chitung Liu

Vice President

Osbert Cheng

Vice President

G C Hung

Vice President

Steven Hsu

Vice President

Vice President

Vice President

Vice President 

Vice President & Chief 
Human Resources 
Officer

SR Sheu

M L Liao

S S Hong

Mindy Lin

Eric Chen

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Vice President

Bellona Chen

Victor Chuang

Chuck Chen

JT Lin

Michael CY Wang

Ray Yang

Osbert Cheng

Vice President

Steven Hsu

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Associate Vice 
President

Victor Chuang

Chuck Chen

JT Lin

Michael CY Wang

Ray Yang

2021.12.15

UNITED 
MICROELECTRONICS 
CORP.

The Challenges & Opportunities of Net Zero 
Emissions for Enterprises

3

2021.12.17
2021.12.22

UNITED 
MICROELECTRONICS 
CORP.

Disadvantage Innovation: Advantech’s Strategic 
Response

4

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 2021. The senior executive courses are as follows:
【2021 Master Forum】A total of one sessions were held, with a total of 98 supervisors participating, and a course satisfaction rating of 96%.
【Executive Program】A total of two sessions were held, with a total of 59 supervisors participating, and a course satisfaction rating of 87.1%.

53

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 37-78 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.

Information on the Members of the Remuneration Committee

Title
(Note 1)

Independent 
Director*

Independent 
Director

Independent 
Director

Independent 
Director

Independent 
Director

Name

Professional Qualifications and Experience

Meets Criteria of 
Independence(Note 2)

Wenyi Chu

Lih J. Chen

Jyuo-Min Shyu

Kuang Si Shiu

Wen-Hsin Hsu

 Financial, accounting and strategy management
 A significant background in electronics industry

 Engineering technology and organizational leadership
 A significant background in electronics industry 

 Engineering technology and organizational leadership
 A significant background in electronics industry 

 Financial, accounting and organizational leadership
 Banking finance and operation & strategy making 

 Financial, accounting and leading sustainability of organizations
 A significant background in electronics industry 

Meet

Meet

Meet

Meet

Meet

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

0

0

1

2

2

Note 1. For further information of Independent Directors, please refer to Directors’ Professional Qualification & Independent Directors’ Independence Information on page 21. (* is the 

convener).

Note 2.Criteria of Independence: None of the Independent Directors of the Company, their spouses, or relatives within the second degree of kinship serve as directors, supervisors or 

employees of the company or its affiliates or having a specific relationship with the Company. None of them (or in the name of others) hold any shares of the Company. In the last two 

years, they do not receive any remuneration for providing business, legal, financial, accounting and other services to the Company or its affiliates.

54

United Microelectronics Corporation  |  Annual Report 2021Information of the Remuneration Committee Operation

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

2. Term of the current Committee: From July 7, 2021 to July 6, 2024.

The Company convened two Remuneration Committee meetings in 2021 with the following attendance:

Title

Name 

Convener

Wenyi Chu

Lih J. Chen

Jyuo-Min Shyu

Kuang Si Shiu 

Wen-Hsin Hsu 

Cheng-Li Huang 

Committee 
Member
Committee 
Member
Committee 
Member
Committee 
Member
Former 
Committee 
Member

Number of 
Actual
Attendance

Number of Proxy
Attendance

Rate of Actual
Attendance (%) 

Note

2

2

2

1

1

1

0

0

0

0

0

0

100.00

Re-elected

100.00

Re-elected

100.00

Re-elected

100.00

Newly elected on July 7, 2021

100.00

Newly elected on July 7, 2021

100.00

Term expired on July 7, 2021

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

Other Matters to 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 2021:

Date/Meeting

Proposal 

Resolution

February 24, 2021,
The 11th meeting of
the 4th session.

1. Directors’ remuneration and attendance fees
2. Executive officer’s compensation structure 
and performance evaluation system review and 
executives officer’s compensation and internal 
audit supervisor’s compensation proposals.

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.

July 28, 2021,
The 1st meeting of the 
5th session

1. Executive officer’s salary increase in 2021.
2. Proposal of executive officer’s compensation.

Approved by all 
members present in the 
meeting.

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

55

Corporate Governance Report 
 
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 five members in the Nominating Committee.

2. The term for elected committee members is three years, starting from July 7, 2021 to July 6, 2024. A total of two Nominating Committee meetings were 

held in 2021. The attendance of the committee members was as follows:

Title

Name

Professional Qualification & Experience

Attendance 
in Person

By Proxy

Attendance Rate 
(%)

Remarks

2

2

2

1

1

1

0

0

0

0

0

0

100.00

Re-elected

100.00

Re-elected

100.00

Re-elected

100.00

100.00

100.00

Newly elected 
on July 7, 2021

Newly elected 
on July 7, 2021

Term expired on 
July 7, 2021

• Engineering technology and organizational leadership
• Electronics-related industrial experience

• Financial accounting and strategic management
• Electronics-related industrial experience

• Engineering technology and organizational leadership
• Electronics-related industrial experience

• Financial accounting and organizational leadership
• Banking Finance and business policy-making

• Financial accounting and corporate sustainability
• Electronics-related industrial experience

Convener

Jyuo-Min Shyu 

Wenyi Chu

Lih J. Chen 

Kuang Si Shiu

Wen-Hsin Hsu

Committee 
Member

Committee 
Member

Committee 
Member

Committee 
Member

Former 
Committee 
Member

Cheng-Li Huang

• Financial accounting and corporate sustainability
• Electronics-related industrial experience

Other mentionable items:
1. Major resolutions of Nominating Committee in 2021:

Meeting on February 24, 2021, the 6th meeting of the 2nd term:
(1) Amended UMC Sustainable Development Best Practice Principle. 
(2) Nominated the Company’s 15th term of Directors.
Meeting on October 27, 2021, the 1st meeting of the 3rd term:
(1) Approved the ESG KPI-linked Employees’ Compensation Scheme.
(2) Approved additional employees’ compensation based on ESG achievement.

2. Content of the committee member’s opinions expressing objections, reservations or major suggestions: None.
3.Company’s response to the opinion of the Nominating Committee: Approved.

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

56

United Microelectronics Corporation  |  Annual Report 2021Capital Budget Committee
The Capital Budget Committee comprises independent directors to assist in the Company’s long-term development strategy, financial planning, and 

business performance. The committee discusses plan implementations, modifies and follows up on the Company's capital expenditure budget by auditing 

its cost-effectiveness and tracking its performance.

Information of Capital Budget Committee Operation

1. There are five members in the Capital Budget Committee.

2. The term for elected committee members is three years, starting from July 7, 2021 to July 6, 2024. A total of five Capital Budget Committee meetings 

were held in 2021. The attendance of the committee members was as follows:

Title

Name

Professional Qualification & Experience

Attendance 
in Person

By Proxy

Attendance Rate 
(%)

Remarks

Convener

Kuang Si Shiu

Wenyi Chu

Lih J. Chen 

• Financial accounting and organizational leadership
• Banking Finance and business policy-making

• Financial accounting and strategic management
• Electronics-related industrial experience

• Engineering technology and organizational leadership
• Electronics-related industrial experience

Jyuo-Min Shyu 

• Engineering technology and organizational leadership
• Electronics-related industrial experience

Wen-Hsin Hsu

• Financial accounting and corporate sustainability
• Electronics-related industrial experience

Cheng-Li Huang

• Financial accounting and corporate sustainability
• Electronics-related industrial experience

Ting-Yu Lin

• Financial accounting and strategic management
• Electronics-related industrial experience

Committee 
Member

Committee 
Member

Committee 
Member

Committee 
Member

Former 
Committee 
Member

Former 
Committee 
Member

3

5

5

5

3

2

2

0

0

0

0

0

0

0

100.00

Newly elected 
on July 7, 2021

100.00

Re-elected

100.00

Re-elected

100.00

Re-elected

100.00

100.00

100.00

Newly elected 
on July 7, 2021

Term expired on 
July 7, 2021

Term expired on 
July 7, 2021

Other mentionable items:
1. Major resolutions of Capital Budget Committee in 2021:

Approved capital budget expenses of NT$238,733 million in 2021.

2. Content of the committee member’s opinions expressing objections, reservations or major suggestions: None.
3. Company’s response to the opinion of the Capital Budget Committee: Approved.

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

57

Corporate Governance ReportPromotion of Sustainable Development and Deviations from “Sustainable Development 
Best Practice Principles for TWSE/TPEx Listed Companies”

Evaluation Item

Yes

No

1.  Does the company have a governance framework to promote sustainable development in place, with a division authorized by the Board to 

exclusively or concurrently promote corporate social responsibility policies and responsible for reporting back to the Board?

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

materiality principle?

3. Environmental Issues

(1)  Does the Company have environmental management systems appropriate for its industry in place?

58

United Microelectronics Corporation  |  Annual Report 2021 
Deviations from “The Corporate 
Governance Best-Practice 
Principles for TWSE/TPEx Listed 
Companies” and Reasons

None

None

None

Implementation Status

Abstract Explanation

UMC’s sustainable governance structure includes the Board of Directors (including the Nominating Committee), the ESG 
Steering Committee, the Corporate Sustainability Committee, and the Enterprise Risk Management Committee.
In 2020, UMC reorganized its sustainable governance structure and established the ESG Steering Committee, consisting 
of  our  core  operating  executives,  and  appointed  the  Co-Presidents  as  the  Chairmen.  The  ESG  Steering  Committee 
meets every quarter to determine UMC’s sustainable governance strategy/blueprint/long-term goals, and also reports 
to the Nomination Committee and the Board of Directors annually on the sustainable performance and plans, as well 
as key issues and countermeasures that stakeholders are concerned about. The Board of Directors plays a supervisory 
and  coaching  role,  assessing  the  strategy’s  viability,  regularly  reviewing  the  progress  of  the  strategy,  and  urging  the 
management team to make adjustments when needed. The main points of the proposal reported in 2021 include (1) 
ESG governance structure reorganization; (2) UMC Sustainability Strategy and Blueprint; (3) ESG achievements and 
stakeholder communication; and (4) future focus. The proposal of employee’s remuneration linked to ESG KPI was also 
approved by Nomination Committee and the Board of Directors in this meeting. Other annual resolutions of the Board 
of  Directors  related  to  sustainability  include  “Donation  to  the  UMC  Science  and  Culture  Foundation”  and  the  green 
investment in the “Capital Budget Execution”.
The  Corporate  Sustainability  Committee  was  established  in  2008  and  is  responsible  for  stipulating  the  direction  and 
goals  of  sustainability.  The  Committee  reviews  the  performance  and  target  achievements  of  eight  functional  groups, 
which include Corporate Governance, Customer Relationship Management, Responsible Supply Chain Management, 
Sustainable  Innovation,  Environmental  Planning  and  Management,  Green  Operation,  Human  Rights  and  Employee 
Development/Welfare, and Social Participation. The representative of the Corporate Sustainability Committee reports 
the quarterly CSR promotion results and plans to the ESG Steering Committee. The scope of the report includes the 
management and review of material issues in the area of economics/governance, environment and society.

Through the Corporate Sustainability Committee, the Company keeps itself current on the development of domestic and 
international sustainable development standards and changes in the corporate environment, reviews and improves the 
sustainable development 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,  identifies  possible  opportunities,  comprehensively  implements  them  in  daily  operations,  shapes  and  deepens 
the risk culture, and establishes complete and transparent risk communication with all stakeholders to maintain steady 
operations. It also develops response strategies for major risk issues, reports to the ESG Steering committee quarterly 
and the Board of Directors annually for approval, and reviews and updates relevant standard operating procedures to 
ensure the effectiveness of risk management. 
For  related  risk  (including  environmental,  social  and  corporate  governance  issues),  please  refer  to  the  section  “Risk 
Management and Evaluation” of this annual report and UMC Sustainability Report.

All  our  fabs  established  environmental  management  systems  in  accordance  with  ISO  14001  and  continue  to  obtain 
third-party  verification.  UMC  combines  daily  management  and  comprehensive  quality  management  activities,  and 
incorporates  environmental  safety  management  plans  into  actual  plant  operations  to  achieve  implementation  goals. 
In terms of environmental safety and health risks in its operations, UMC systematically assesses the possible impact 
of all process activities from raw material use to waste production on the environment and employees. Projects with 
potentially significant environmental impact are managed and controlled through raw material assessment, substitution 
and reduction, process pollution source control and reduction, effective treatment of end-of-pipe pollution, and reuse 
of  surplus  by-products.  Employee  safety  and  health  are  protected  through  equipment  safety,  chemical  safety  and 
operational safety management. 
For  carbon  emission  management,  UMC  established  its  greenhouse  gas  (GHG)  inventory  standard  mechanism  in 
accordance  with  inventory  guidelines  defined  by  domestic  and  international  organizations,  including  the  ISO14064-1 
and World Resource Institute “Greenhouse Gas Protocol”. The company inventories the GHG emissions of all its fabs 
annually to fully determine the status of its GHG and verify the effectiveness of their reduction.
To  achieve  sustainable  operations,  UMC  adopts  a  clean  production  and  zero–incident  approach  to  environmental 
protection and safety, and sets environmental health and safety management system goals every year. By promoting 
programs  that  reduce  environmental  impact  and  strengthen  safety,  UMC  continuously  improves  its  performance  in 
environmental protection and safety management.

59

Corporate Governance ReportPromotion  of  Sustainable  Development  and  Deviations  from  “Sustainable  Development  Best  Practice  Principles  for 
TWSE/TPEx Listed Companies” (Continue)

Evaluation Item

Yes

No

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

(3)  Does the company evaluate the potential risks and opportunities of climate change on its operations and take actions?

60

United Microelectronics Corporation  |  Annual Report 2021 
 
Deviations from “The Corporate 
Governance Best-Practice 
Principles for TWSE/TPEx Listed 
Companies” and Reasons

None

None

Implementation Status

Abstract Explanation

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 Sustainability 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 material with harmful environmental impact.

•  Green process: The semiconductor process uses a wide variety of raw materials of  high purity and high quality. 
Through improving process design and technology, UMC reduces raw material consumption, which not only reduces 
emissions  at  the  source,  but  also  reduces  operating  costs.  UMC  has  established  a  comprehensive  information 
database to manage the importing 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 branded products, it continues to develop and incorporate 
numerous low-toxicity, low-energy green product technoogies to provide customers with the most complete service 
for  meeting  the  requirements  of  the  green  energy  era.  In  2006,  UMC  led  global  semiconductor  manufacturers  in 
completing  third-party  verification  and  audit  of  the  Hazardous  Substance  Process  Management  (HSPM)  system, 
becoming the first semiconductor manufacturer company in the world to obtain QC-080000 IECQ HSPM certification 
for all its fabs.

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

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

Installing high efficiency FCs abatement in new tools

The Company formulated the UMC Climate Change Policy in 2010 as the Company’s highest guiding principle in response 
to climate change. UMC has also formulated the UMC Low Carbon Commitment as a guide for future carbon reduction 
projects.  Echoing  the  Paris  Climate  Agreement  and  pursuing  efforts  to  limit  global  warming  to  not  more  than  1.5°C, 
UMC announced its pledge in 2021 to reach net zero carbon emissions by 2050. In the meantime, UMC has obtained 
admission into RE100, becoming the second semiconductor wafer foundry in this initiative, and committed to use 100% 
renewable energy by 2050 by setting progressive goals of 15% by 2025 and 30% by 2030.
• Climate Change Policy
1.  Expectations to reach carbon neutral
2.  To be the low carbon solutions provider
3.  To promote the development of a low carbon economy
• Low Carbon Commitment
1.  Low-carbon design process
2.  Energy efficiency optimization
3. 
4.  Adopting green building standard for new buildings
5.  Carbon partnerships with customers and suppliers
6.  Complete carbon footprint inventory for all fabs
7. 
Investing in the green technology industry
• Greenhouse gas emission reduction goals
1. (2013-2025)
    Reduce fluorinated greenhouse gas emissions intensity by 65%.
    Note: With 2010 as base year.
2. (2016-2025)
    Reduce electricity consumption intensity by 15% in ten years. 
    Note: With 2015 as base year.
UMC  has  constructed  the  UMC  Climate  Change  Risk  and  Opportunity  Assessment  tool  based  on  multiple  data 
points: TCFD (Task Forced on Climate-related Financial Disclosures), ISO 14090 Adaptation to Climate Change, and 
the assessment procedure in the UK Climate Impact Programme (UKCIP). The Climate Change Risk and Opportunity 
Assessment  Team  conducts  assessments  every  year.  The  assessment  is  based  on  the  aspects  such  as  policies, 
regulations,  changes  in  the  market  and  technologies,  reputation,  and  physical  risk,  and  the  results  are  submitted  to 
the  Corporate  Sustainability  Committee  for  approval.  In  May  2021,  UMC  met  the  TCFD  performance  assessment  at 
management level of “Pioneer”, which was verified by SGS Taiwan Ltd., an endorsement of the credibility and transparency 
of  the  Company’s  climate  change  risk  assessment  system  and  dislosure.  For  details  of  greenhouse  gas  emissions, 
potential risks and opportunities of climate change, and related management and responding measures, please refer 
to  the  company’s  annual  Sustainability  Report.  Also,  UMC  disclosed  relevant  information  through  involvement  in 
international CDP organization initiatives. 

61

Corporate Governance ReportPromotion  of  Sustainable  Development  and  Deviations  from  “Sustainable  Development  Best  Practice  Principles  for 
TWSE/TPEx Listed Companies” (Continue)

Evaluation Item

Yes

No

(4)  Did the company keep track of its greenhouse gas emissions, water consumption, and total weight of waste over last two years, and has the 

Company established strategies for greenhouse gas reduction, water conservation, and waste management?

4. Social Issues

(1)  Does the company have appropriate management policies and procedures in place 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?

62

United Microelectronics Corporation  |  Annual Report 2021 
 
 
Implementation Status

Abstract Explanation

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

None

None

None

The environmental information of UMC in the past four years, such as greenhouse gas emissions, water consumption, 
and total weight of waste, is disclosed in the “UMC Corporate Social Responsibility Report” every year, which is verified 
by a third party.
UMC has also formulated an 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  Code  of  Conduct  follows  Responsible  Business  Alliance  Code  of  Conduct,  RBA,  the  UN  Global  Compact, 
International Labor Office Tripartite Declaration of Principles, the OECD Guidelines for Multinational Enterprises, the 
UN Universal Declaration of Human Rights, the UN Human Rights Norms for Business, the UN Guiding Principles on 
Business and Human Rights and related international standards and complies with the requirement of local laws and 
regulations.
For scope of application and related information, please refer to the UMC Code of Conduct website at 
https://www.umc.com/en/Html/UMC_code_of_conduct  and  UMC  Human  Rights  Policy  Declaration  website  at  https://
www.umc.com/en/Html/labor_and_human_rights#umc_human_rights_policy_declaration.

• Compensation and Benefits
UMC  conducts  and  implements  reasonable  employee  compensation  and  welfare  measures.  UMC’s  employee 
compensation is based on educational level, performance and market value, regardless of gender, race, religion, political 
position, and marital status. The compensation is in line with all applicable local laws and regulations in terms of minimum 
wage, retirement pension, leaves, and other mandatory benefits to safeguard the rights of employees. The Company 
provides  various  welfare  benefits  including  holidays,  insurance,  financial  assistance  for  emergencies,  subsidies  for 
marriage/childbirth/funerals,  discounts  in  designated  shops,  and  employee  assistance  service.  Please  refer  to  the 
employee benefits of operations overview in this annual report and Chapter 4 of the latest Sustainability Reports.
• Workplace Diversity and Equality
UMC  encourages  a  diverse,  open,  and  equal  workplace  culture.  In  addition  to  guaranteeing  gender  equality  in  the 
workplace, the Company supports and respects promotion and development opportunities for women, the unique culture 
of ethnic minorities, and the employment of persons with disabilities. Please refer to Chapter 4 of the Sustainability Report 
for relevant information.
• Performance-oriented Compensation System
UMC offers salary adjustment, differentiated bonus/employee compensation, and stock remuneration (employee stock 
option certificates and treasury shares) based on individual performance, job responsibilities, and future development 
potential to attract, retain, and motivate ontstanding employees. UMC also actively joins the remuneration surveys of 
well-known  global  enterprises  to  ensure  that  the  overall  remuneration  offered  by  UMC  is  competitive  in  the  market. 
The Company shall allocate no less than 5% of profit as employees’ compensation for each profitable fiscal year after 
offsetting any cumulative losses (please refer to Employees’ and Directors’ Compensation in the section Capital and 
Operations Overview is this report).

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Corporate Governance ReportPromotion  of  Sustainable  Development  and  Deviations  from  “Sustainable  Development  Best  Practice  Principles  for 
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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

64

United Microelectronics Corporation  |  Annual Report 2021 
Deviations from “The Corporate 
Governance Best-Practice 
Principles for TWSE/TPEx Listed 
Companies” and Reasons

None

Implementation Status

Abstract Explanation

UMC has three categories of safety and health education based on job characteristics: 
•  Company-wide general education and training in safety and health.
•  Plant safety and health education organized by each fab. 
•  Safety and health related training formulated by each division according to divisional characteristics.
“Safety  First.  Prioritize  Safety  Over  Production”  is  UMC’s  commitment  to  employees.  The  Company  plans 
implements  necessary  safety  and  health  education  and  training  for  work  and  prevention  of  disasters.  Training 
is divided into company-wide general education courses, factory-run courses, and department-specific courses, 
so that employees can develop safety awareness and knowledge, with the aim of reducing accidents caused by 
unsafe behavior. In addition to regular courses, safety-related training courses for specific events or major cases 
are also introduced occasionally. In 2021, 2,203 classes were offered, attracting a total of 53,225 participants. 
The courses include e-learning courses so that employees can learn safety and health knowledge without being 
limited by the schedule of physical courses.
UMC’s  headquarters  and  foundries  have  ISO  14001  and  ISO  45001  certification,  and  the  headquarters  and 
Taiwan fabs have passed Taiwan’s occupational safety and health management system (TOSHMS) certification.
In  2021,  there  was  a  total  of  11  employee  occupational  incidents,  accounting  for  0.06%  of  the  total  number  of 
employees.
For any occupational incident, the accident department must fill in the UMC Incident Report System to analyze and 
explain the root cause of the incident, propose prevention actions for the root cause, and track the improvement 
measures through the system to prevent similar incidents from happening again.

UMC actively promotes healthy workplace related management, promotion, and charity activities. In 2021, UMC 
promoted a healthy workplace lifestyle themed “Earning Health Together in 2021-Connecting Game” to create a 
healthy living workplace. Due to the COVID-19 epidemic, in order to reduce the gathering of people, adjustments 
were made to on-site activities. The results in 2021 are as follows:
1.The  health  promotion  activities  attracted  13,000  participants;  actual  number  of  participants  was  3,023,  and 
overall satisfaction rate was 97%.
Q1 “FUN-Relieve Pressure Together”
In order to reduce the COVID-19 epidemic, the health center has promoted health education on the Company’s 
homepage and electronic bulletin board, providing new knowledge to strengthen epidemic prevention and correct 
hygiene concepts. More than 35 articles on epidemic prevention concepts and habits was be promoted in 2021.

Q2 “Do Health Examination Together”
The  second  quarter  of  each  year  coincides  with  Mother’s  Day.  UMC  cooperates  with  medical  institutions  to 
conduct  breast  ultrasound  examinations  to  raise  awareness  of  preventive  medicine  among  female  colleagues. 
The activity attracted a total of 161 participants. Subsequently, due to the severe epidemic situation in Taiwan, 
the ultrasound examinations were cancelled, and the medical examinations required by the law were extended 
to the third quarter.
As the epidemic situation improved, this program will continue until June 30, 2022. Official leave and subsidy for 
the health check-up are offered to allow more flexibility for colleagues to arrange their appointments. 

Q3 “Move and Slim Down Together”
The “Connecting Game” health promotion attracted a total of 1,066 participants. Activities include the establishment 
of a health declaration, a health column, healthy weight loss, and regular blood pressure measurement.
In addition, in response to the epidemic, medical institutions across the country suspended non-regulatory health 
examination. To comply with the limit of 100 people for indoor gatherings, the number of health checkups was 
adjusted in August 2021. A total of 1,159 people in the Company completed the health examination for the required 
subjects and health checkup items.

Q4 “Listen to Consultation Together” 
Two health seminars were conducted in 2021. “Autonomic Disorders, and Physical and Mental health” was held on 
14 December and 166 people attended. “Daily Pain Control” was held on 23 December and 139 people attended.

2. 6,360 people consulted with in-house physicians.
3. 709 people donated blood, totaling 1,064 bags of blood.
4. 161 people received breast ultrasound exam, and satisfaction rate was 96.7%. 
5. 298 people received flu vaccination, and satisfaction rate was 98.9%.
6. There were a total of 441 health management consultations for emergency personnel, and the health 

consultation rate was 100%.

7. There were 546 notifications of nursing care and first aid assistance.
8. There were 1,787 new medical examinations.

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Corporate Governance ReportPromotion  of  Sustainable  Development  and  Deviations  from  “Sustainable  Development  Best  Practice  Principles  for 
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Evaluation Item

Yes

No

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

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

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

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United Microelectronics Corporation  |  Annual Report 2021 
 
 
 
 
Implementation Status

Abstract Explanation

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

•  Employee health care
The Company provides employees with physical examinations for new hires and annual health checks. Based on 
the results, health center organizes health promotion activities for health management, and conducts case-by-
case  management  for  special  operation  employees.  The  Company  cooperates  with  medical  institutions  to  hire 
doctors  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. By integrating the “health care 
system”, the Company can notify and track to minimize health risks in the workplace. 
1. In 2021, a total of 1,159 employees in the Company received physical checkup, and satisfaction rate was 97.1%. 
2. Health examination reports and online 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 and mental 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 2021, a total of 220 individuals received the free telephone counseling service 
and 91 individuals received face-to-face paid services. 
UMC’s promotion and cultivation of a healthy workplace is deeply recognized by enterprises. At present, the UMC 
headquarters and other sites have obtained the “Excellent Self-Managed Healthy Workplace” certification, and 
their health promotion certifications are still current.  It demonstrates UMC’s active protection of employee health 
and concern for their physical and psychological well-being.

The UMC training roadmaps 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 surveys.

UMC is committed to strengthening world-class process technology, manufacturing capability, and excellent service to 
enhance customer service value. UMC has always valued customers as partners and created an exceptional business 
philosophy based on the spirit of “United for Excellence”. UMC works closely with customers to achieve win-win results, 
and customer satisfaction as one of the Company’s key objectives. Customer-oriented behavior is to provide a complete 
solution to satisfy the customer’s 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 including the 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. 
UMC has also incorporated the Voice of Customer (VOC) instant online complaint system within the MyUMC, MyHJTC, 
MyUSC and MyUSJC service platforms, which allows customers to make requests, comments, or suggestions about the 
Company’s products or services at any time. The system replies to customers within one working day to inform them their 
requests have been passed to corresponding divisions. A dedicated person will then be assigned to the customer, who 
can check the progress at any time on the website. UMC’s measures for responding to customer complaints must meet 
customer demand for product and service quality. To this end, there is a regular review for customer complaints, handling 
progress,  and  the  quality  of  response,  to  ensure  that  each  division  not  only  offers  corresponding  measures  but  also 
provides subsequent series of related solutions to enhance overall customer satisfaction. UMC collects customer voice 
feedback in the VOC system and translates them into specific improvement actions for continuous and comprehensive 
improvement of the Company’s product competitiveness and service quality.
For consumer protection mechanisms, in order to strictly protect customer-related information, UMC has established 
external  document  management  procedure.  All  specifications  and  technical  documents  from  customers  are  strictly 
controlled  by  UMC’s  internal  system.  Therefore,  we  can  prevent  leakage  of  customer  documents  and  ensure  the 
documents are utilized and processed appropriately. In the future, UMC will continue to accumulate intellectual assets, 
provide better products and services, work with customers to tackle more difficult challenges in technology development 
and production, and achieve win-win results with customers.
UMC is ISO 9001 & IATF 16949 & QC-080000 IECQ HSPM international standards certified. The Company’s quality 
policies are based on these standards to provide customers with excellent product quality, reasonable price, and excellent 
and timely service. UMC adheres to the principle of continuous improvement. Through cultivating awareness among 
employees, improving quality control and technical improvement in design and production, offering products  that meet 
regulatory and customer demand for harmful substance control, UMC strives to fulfill its responsibility as a corporate 
citizen to protect the environment and the health and safety of the global community.

None

None

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Corporate Governance ReportPromotion  of  Sustainable  Development  and  Deviations  from  “Sustainable  Development  Best  Practice  Principles  for 
TWSE/TPEx Listed Companies” (Continue)

Evaluation Item

(6)  Does the company have a supplier management policy to regulate suppliers on  concern related to environmental protection, labor and human 

rights, safety, and health?

Yes

No

5. Does the company prepare a Sustainability Report that complies with international guidelines and is verified by a third party?

6.  If the Company has established the sustainable development principles based on “Sustainable Development 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 sustainable development practices: 

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United Microelectronics Corporation  |  Annual Report 2021 
 
 
Implementation Status

Abstract Explanation

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

Based on UMC’s GG-026-004-C sustainable supply chain management review guidelines for achieving a supply chain 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 its supply chain. The evaluation comprises 
a set of assessments to rate the sustainability of suppliers, and include indicators such as delivery time, quality, finance, 
and operations. Suppliers with unfavorable review outcomes are offered audit counseling for improvement, and in the 
case of severe issues, procurement or status as qualified suppliers are terminated. For other details, please refer to the 
UMC Sustainability Report on the UMC website.

As of 2021, UMC has publicly issued a non-financial related sustainability annual report for 21 consecutive years. At the 
same time, the 2020 UMC Corporate Social Responsibility Report is the 16th annual report disclosing UMC’s corporate 
sustainable  development.  This  report  is  compiled  according  to  the  GRI  Standards  of  the  Global  Reporting  Initiative, 
the Semiconductors Sustainability Accounting Standard 2018 issued by the Sustainability Accounting Standards Board 
(SASB), and the Task Force on Climate-related Financial Disclosures (TCFD), and is verified by SGS Taiwan Ltd. in 
accordance  with  the  Account  Ability  1000  Assurance  Standard  v3  Type  2,  High  level  assurance.  In  2022,  UMC  will 
compile the 2021 UMC Sustainability Report that will address major corporate social responsibility issues and stakeholder 
concerns, and will commission a third party to verify the report.

None

None

The Corporate Social Responsibility Principles were approved by the Board of Directors in October 2015, and revised to Sustainable Development Best Practice Principles 
and granted approval by the Board of Directors in February 2022. For details of the principles please refer to: https://www.umc.com/en/Download/major_internal_policies. 
The Company’s corporate sustainable operations show no significance inconsistency from Sustainable Development Corporate Governance Best-Practice Principles 
for TWSE/TPEx Listed Companies. For other details, please refer to the “Corporate Sustainable Development” of this Annual Report and the Sustainability 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 Sustainability 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 “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 have an ethical corporate management policy approved by the Board of Directors, clearly state the policy and procedures 
in its guidelines and external documents, and demonstrate commitment from the Board of Directors and top management to implement the 
policy?

(2)   Does the company have 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 have 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 review 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 have an exclusively (or concurrently) dedicated unit supervised by the Board of Directors to be in charge of corporate 

integrity, implementation, and regularly reports to the Board, at least once a year?

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

(4)   Has the company established effective accounting and internal control systems to facilitate ethical corporate management, and has the internal 
Audit Division formed and executive an audit plan based on unethical conduct risks, or engaged an external accountant to implement the audit?

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

70

United Microelectronics Corporation  |  Annual Report 2021 
 
 
 
 
 
 
 
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 
regulating moral integrity, conflict of interest, and business conduct. 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 ESG Steering 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. 27, 2021.) 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 Employee code of conduct at https://www.umc.com/upload/media/08_Investors/Corporate_Governance/
Major_Internal_Policies/Employee_Code_of_Conduct-e.pdf 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  self-assessment,  UMC  has  also  conducted  a  self-review  of  all  fabs,  departments  and  subsidiaries 
operation to achieve the effectiveness of internal control systems’ design and implementation.

None

None

None

None

None

None

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.

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. 
These regulations aim to 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 work of all employees through physical and 
online training courses and tests.
In 2021, UMC fabs in Taiwan and Singapore have completed the training courses and passed relevant tests.

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. Channel for reporting complaints

Yes

No

(1)  Does the company have a system to process complaints and offer reward incentives, a hotline for reporting complaints, and a designated 

personnel to follow up with complaints?

(2)  Does the company have standard operating procedures for investigating complaints, follow-up actions, and ensuring the complaints are handled 

in a confidential manner?

(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). 

72

United Microelectronics Corporation  |  Annual Report 2021 
 
 
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 to prevent ethics violations, and to protect whistleblowers 
and to prevent retaliatory action. Employees or any whistleblowers 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 complaint, UMC will convene an investigative team to investigate the violation 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 violations or frauds, or participating in the investigation, from unfair treatment or retaliation. For details, 
please refer to Employee code of conduct at https://www.umc.com/upload/media/08_Investors/Corporate_Governance/
Major_Internal_Policies/Employee_Code_of_Conduct-e.pdf.

None

None

The  Company  will  protect  any  employee  reporting  ethics  violation  or  fraud,  or  participating  in  the  investigation,  from 
unfair treatment or retaliation. For details, please refer to webpage at https://www.umc.com/upload/media/08_Investors/
Corporate_Governance/Major_Internal_Policies/Employee_Code_of_Conduct-e.pdf.

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 Corporate Sustainability 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  Employee  code  of  conduct  at  https://www.umc.com/upload/media/08_Investors/Corporate_Governance/Major_Internal_Policies/
Employee_Code_of_Conduct-e.pdf.

For other relevant communications such as employee rights, employee care, investor relations, supplier relationships and stakeholder rights, please refer to the UMC 
Sustainability 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” (Continue)

Specific Measures for Ethical Management in 2020-2021

Item

Implementation Status

Legal Compliance

•  Inter-division regulatory compliance is coordinated by the Legal and Compliance Division, and other regulations are regularly 

reviewed by relevant divisions.

•  The Legal and Compliance Division has coordinated overall regulatory compliance with the EU General Data Protection 

Regulation since 2019; the Legal and Compliance Division also pays close attention to the Personal Information Protection Law 
of People's Republic of China that became effective in Nov, 2021 and will coordinate overall regulatory compliance with the law.
•  With respect to the frequent rule changes of the Export Administration Regulations of the United States starting in 2020, the Legal 

and Compliance Division is coordinating overall legal compliance with the regulations.

•  Legal and Compliance Division noticed China enacted 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 a training course for insider trading targeting all employees, managers 

and executives. In order to continuously strengthen the awareness of and emphasize the importance of insider trading and trade 
secret protection, and to prevent employees from unknowingly violating laws and regulations in connection with insider trading 
and trade secret protection, the Legal and Compliance Division conducts training courses on a regular basis. The Legal and 
Compliance Division conducted an online training and test for insider trading and trade secret protection in the third quarter of 
2020. As total of 7,966 employees completed the online training and test, representing 99.5% of the targeted employees.

•  On April 21 and 22, 2021, the course "The Laws and Practices of Preventing Insider Trading and Insider Equity Transactions" 

aimed for managers of first level or above was arranged to promote the definition and legal elements of insider trading, criminal 
liability and penalty of violations, relevant corporate cases, and the Company's internal measures for preventing insider trading. A 
total of 99 managers participated in this three-hour course.

•  On July 21, 2021, the Company conducted awareness training on the laws and regulations related to the prevention of insider 

trading for new board members, and arranged for current board members to participate in "The Prevention and Response to 
Insider Trading" 3-hour course organized by the Independent Director Association Taiwan on September 10, 2021.

UMC Code of Conduct 
Implementation

•  The content of the Codes is reviewed biannually: 

1. Review of the Employee Code of Conduct was completed in April 2021.
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 2021, no major ethical violations 

were reported.

•  Employee Code of Conduct education and testing were conducted in July 2021, with 100% completion rate.
•  Employee Code of Conduct training course for new employees; 271 participants and a total of 406.5 hours in 2021.

UMC fair competition, intellectual 
property rights violations

•  Litigation cases in each quarter of 2021 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 2021.

•  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 on the Incoming Data. An online course and test 
was provided to all the employees regarding "copyright law" on eUMC on August, 2021 to strengthen their knowledge of copyright 
protection and promote the necessity of the enactment of the copyright law.

•  Introduction to UMC Intellectual Property Rights training course for new employees: 797 participants and a total of 199.3 hours in 

2020; and 1,716 participants and a total of 429 hours in 2021.

•  Trade Secrets training course for new employees: separate from UMC Intellectual Property Rights as an individual course since 
December 2018 with 797 participants and a total of 127.5 hours in 2020; and 1,716 participants and a total of 274.6 hours in 2021.
•  Basic Legal and Risk Awareness on the Incoming Data training course for new employees: implemented since April 2018. A total 

of 797 participants and a total of 199.3 hours in 2020; and 1,716 participants and a total of 429 hours in 2021. 

Financial reporting related internal 
control

•  Annual audit by external auditors and internal Audit Division.
•  Results of internal audits for 2021 were reported at the Audit Committee/Board of Directors meetings on a quarterly basis.

Code of Ethics for Directors and Officers

Please refer to the website

https://www.umc.com/upload/media/08_Investors/Corporate_Governance/Major_Internal_Policies/Code_of_Ethics_chi.pdf

Employee Code of Conduct

Please refer to the website

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

UMC Ethical Corporate Management Best Practice Principles

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

74

United Microelectronics Corporation  |  Annual Report 2021Internal Control System Execution Status

Statement of Internal Control System

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

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

regard to its internal control system during the year 2021.

paragraph,  UMC  believes  that,  on  December  31,  2021,  its  internal 

1. UMC acknowledges and understands that establishing, operating 

control  system  (including 

its  supervision  and  management  of 

and maintaining an internal control system are the responsibilities of 

subsidiaries), had effectively assured that the following objectives had 

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

been reasonably achieved during the assessing period: effectiveness 

established.  The  purpose  of  establishing  the  internal  control  system 

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

is  to  reasonably  assure  the  following  objectives:  The  effectiveness 

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

and  efficiency  of  operations  (including  profitability,  performance  and 

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

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

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

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

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

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

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

perfectly  designed,  an  effective  internal  control  system  can  only 

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

provide  reasonable  assurance  of  accomplishing  the  aforementioned 

held on Feb. 24, 2022, with none of nine attending directors expressing 

three  objectives.  Moreover,  the  effectiveness  of  an  internal  control 

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

system may be subject to changes of environmental or circumstances. 

Statement.

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.

Chairman: Stan Hung 
Chairman: Stan Hung 

4. UMC has evaluated the design and operating effectiveness of its 

President: S C Chien

internal control system according to the aforesaid Regulations.

President: S C Chien 
President: S C Chien 

President: Jason S Wang

President: Jason S Wang 
President: Jason S Wang 

Feb. 24, 2022

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 2021.

75

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

Punishment Cases

Improvement Status

The  competent  authority  confirmed  that  the  Company  has  “non-
compliance procedure and process flaws” and the Company was 
fined NT$170,000.

After  communications  with  the  competent  authority,  the  Company  has  made  improvements 
to the related findings.

Note: The data represented for 2022 was gathered until February 24, 2022.

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 2021 Annual General Meeting was held at No.9, Li-Hsin 3rd Rd., Hsinchu Science Park, (UMC Recreation Center) on July 7, 2021. 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 2020 business report and financial 
statements.

•  In 2020, UMC’s sales revenue was NT$176,820,914 thousand, and full-year net income 

reached NT$29,189,489 thousand, leading to an earnings per share of NT$2.42.

Acceptance of the 2020 Earning Distribution Chart.

•  Distribution of 2020 earnings with cash dividend of NT$19,875,842,389.
•  The ex-dividend record date was set for July 30, 2021, and cash dividend for common 

Approval of the issuance plan of private placement for 
common 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.

Election of the Company’s 15th Term of Directors

shares was paid on August 13, 2021.

•   The votes in favor of this agenda did not exceed two-third of the votes represented by the 
shareholders present (in person, by proxy and by e-voting) and thus this agenda is unable 
to proceed.

•  List of the Company’s 15th term of directors elected:Stan Hung, Wenyi Chu, Lih J. Chen, 
Jyuo-Min  Shyu,  Kuang  Si  Shiu,  Wen-Hsin  Hsu,  Ting-Yu  Lin,  SC  Chien,  representative  of 
Hsun  Chieh  Investment  Co.,  Ltd.,  and  Jason  Wang,  representative  of  Silicon  Integrated 
Systems Corp.

1.

2.

3.

4.

76

United Microelectronics Corporation  |  Annual Report 2021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

2021.02.24

2021.04.28

2021.06.17

2021.07.07

2021.07.28

2021.09.03

2021.10.27

2021.12.15

2022.02.24

•  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.

•  Approved the Q1, 2021 Consolidated Financial Statements.
•  Approved capital budget execution.
•  Approved the Cancellation of Restricted Shares to Employees Stock Awards.
•  Approved to release the managerial officer from non-competition restrictions.
•  Approved UMC’s donation to National Tsing Hua University.
•  Approved the investment in TGVest Asia Partners II(Taiwan), L.P.
•  Approved issuance of unsecured zero coupon euro exchangeable bonds.

•  Approved to change the date and the location of convening the 2021 Annual General Meeting.

•  Stan Hung is elected as Chairman unanimously by the Board of Directors.
•  Approved to appoint members of the 5th term of remuneration committee.
•  Approved to appoint members of capital budget committee.
•  Approved to appoint members of the 3rd term of nominating committee.
•  Approved the adjustment of 2020 cash dividend ratio.
•  Approved the record date for 2020 cash dividend.

•  Approved the Q2, 2021 Consolidated Financial Statements.
•  Approved capital budget execution.

•  Approved the Share exchange between the Company and Chipbond Technology Corporation.

•  Approved the Q3, 2021 Consolidated Financial Statements.
•  Approved capital budget execution.
•  Approved the Cancellation of Restricted Shares to Employees Stock Awards.

•  Approved capital budget execution.

•  Approved the 2021 Business Report and Financial Statements.
•  Approved the 2021 distributable compensation for employees and directors.
•  Approved the cash distribution from capital surplus.
•  Approved the 2021 Earnings Distribution Chart.
•  Approved the issuance of Restricted Stock Awards.
•  Approved the date of convening the 2022 Annual General Meeting, meeting agenda and submission period for shareholder proposals.
•  Approved capital budget execution.
•  Approved the Cancellation of Restricted Shares to Employees Stock Awards.
•  Approved UMC’s donation to UMC Science and Culture Foundation.

77

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  2021  and  as  of  the  Annual  Report 
Printing Date:
None.

Resignation or Dismissal of Chairman, President, and Heads of Accounting, Finance, Internal 
Audit,  Corporate  Governance  Officer  and  R&D  during  2021  and  as  of  the  Annual  Report 
Printing Date:
None.

Certification of Employees Whose Roles 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)

Malaysian Institute of Accountants (CA Malaysia)

Certified Internal Auditor (CIA)

CABIAV Certificate of Certified Business Valuator

 Audit

Accounting

Finance

 2

19

6

1

1

3

2

2

1

1

78

United Microelectronics Corporation  |  Annual Report 2021 
 
Certified Public Accountant (CPA) Fee Information
The Amount of Audit and Non-audit Fee Paid to the CPA, CPA Firm, and Its Affiliates and 
Content of Non-audit Service Should Be Disclosed

In Thousand NT$

Name of CPA Firm Name of CPA

CPA Audit Period

Audit Fee

Non-audit Fees

Ernst & Young, 
Taiwan

Wan-Ju Chiu, 
Hsin-Min Hsu

2021.01.01~
2021.12.31

56,226

11,296

Total

67,522

Remarks

Note: The non-audit fees mainly includes fees paid for tax compliance audit, documents related to issued unsecured exchangeable bonds and business 

registration, etc.

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
Due to the classification of tax compliance audit as non-audit fees in accordance with the regulations.

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.

79

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

Title

Name

Chairman, CSO

Stan Hung

Director

Director

Independent Director

Independent Director

Independent Director

Independent Director

Independent Director

Director

President

President

Hsun Chieh Investment Co., Ltd.

Silicon Integrated Systems Corp.

Wenyi Chu

Lih J. Chen

Jyuo-Min Shyu

Kuang Si Shiu

Wen-Hsin Hsu

Ting-Yu Lin

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

TS Wu

C C Hsu

M C Lai

S F Tzou

Osbert Cheng

G C Hung

Steven Hsu

Wenchi Ting

Jerry CJ Hu

Holding  
Increase 
(Decrease)

2022

Pledged  
Holding  
 Increase 
(Decrease)

Holding  
 Increase  
(Decrease)

Unit: Shares

2021

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

0

0

0

0

0

0

0

0

0

0

0

0

0

(70,000)

(393,000)

(80,000)

(50,000)

(37,000)

0

(300,000)

(800,000)

0

0

0

(150,000)

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

(300,000)

0

0

0

0

0

0

500,000

80

United Microelectronics Corporation  |  Annual Report 2021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

Vice President

Vice President

Vice President 

Vice President 

Vice President & Chief Human 
Resources Officer

Y S Shen

Steven S Liu

SR Sheu

M L Liao

S S Hong

Francia Hsu

Mindy Lin

Linwu Kuo

Eric Chen

Associate Vice President

Johnson Liu

Associate Vice President

Victor Chuang

Associate Vice President

Chuck Chen

Associate Vice President

JT Lin

Associate Vice President

Yau Kae Sheu

Associate Vice President

J Y Wu

Associate Vice President

Purakh Raj Verma

Associate Vice President

Associate Vice President

Associate Vice President

Yanan Mou

Remi Yu

Cedric Lee

Associate Vice President

Michael CY Wang

Associate Vice President

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 Independent Director

Cheng-Li Huang

Former Associate Vice President

Ji Fu Kung

Former Associate Vice President

Le Tien Jung

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

Holding  
Increase 
(Decrease)

2022

Pledged  
Holding  
Increase 
(Decrease)

Holding  
Increase  
(Decrease)

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

N/A

N/A

0

N/A

N/A

0

0

0

0

0

(350,000)

(444,000)

(44,000)

0

(290,000)

(25,000)

(100,000)

0

0

(320,000)

(280,000)

1,200,000

0

(30,000)

N/A

0

(48,000)

0

(200,000)

(150,000)

(9,000)

0

0

(140,000)

Note 2: The data shown for 2022 is for the period January 1 to January 31, 2022.

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

Note 4: The shareholding changes for Kuang Si Shiu, Wen-Hsin Hsu, Linwu Kuo, JT Lin and Cedric Lee are calculated starting from the assumed date.

Note 5: The shareholding changes for Cheng-Li Huang, Ji Fu Kung and Le Tien Jung are reported until their resignation.

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

Unit: Shares

2021

Pledged  
Holding  
Increase 
(Decrease)

0

1,800,000

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

N/A

0

0

0

0

0

0

0

0

0

81

Corporate Governance ReportRelationship Among the Top 10 Shareholders

Name

Shares Held

Shares Held 
by Spouse or 
Children of 
Minor Age

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

721,241,280

5.81

N/A

N/A

N/A

N/A

None

None

Hsun Chieh Investment Co., Ltd.

441,371,000

3.55

N/A

N/A

N/A

N/A

None

None

Director 
of the 
Company

Director 
of the 
Company

None

None

None

None

None

None

Representative:
Chun Kuan

93,998

0.00

0

0

0

0

None

Fubon Life Insurance Co., Ltd.

397,934,000

3.20

N/A

N/A

N/A

N/A

None

Data unavailable

Silicon Integrated Systems Corp.

285,380,424

2.30

N/A

N/A

299,178,200

2.41

N/A

N/A

N/A

N/A

N/A

N/A

None

None

Representative:
Ming Hsing Tsai

Labor Pension Fund

Representative:
Cheng Chien Chien

CTBC Bank Employee Stock Ownership Trust 
Account of UNITED MICROELECTRONICS 
CORP.

1,858

0.00

0

0

0

0

None

195,498,000

1.57

N/A

N/A

N/A

N/A

None

Yann Yuan Investment Co., Ltd.

174,000,000

1.40

N/A

N/A

N/A

N/A

None

None

Representative:
Wen Ching Lin

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

Data unavailable

134,493,905

1.08

N/A

N/A

N/A

N/A

None

None

Nan Shan Life Insurance Company, Ltd.

131,612,000

1.06

N/A

N/A

N/A

N/A

None

None

Representative:
Tang Chen
Note: The data shown above was recorded on July 30, 2021, which was the record date for the distribution of 2021 cash dividend.
N/A
Yao-Hwa Co.,Ltd Management Commission

Data unavailable

108,912,211

0.88

N/A

N/A

N/A

None

None

Note: The data shown above was recorded on July 30, 2021, which was the record date for the distribution of 2021 cash dividend.

82

United Microelectronics Corporation  |  Annual Report 2021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

421,983,036

977,000,000

444,752,069

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

858,850,982

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

79.73

100.00 

100.00 

0 

1 3.78 

28.22

100.00 

40.00

100.00

13.30

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, 2021.

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

421,983,036

977,000,000

444,752,069

1,520,000

1 2,000,000

4,500,000

9.00

25,500,000

0

0

0

0

858,850,982

664,966,275

3,086,936

1.66

151,199,370

0

0

N/A

1,698

4,000,000

0

0

0

0

0

69.95

0.00

2.45

0

0

0

11 0,000

4,300,000

N/A

34,241,911

50,000,000

2,600,000

234,280,000 

116,246,616

4,574,000

0.31

200,710,008

100.00

100.00

100.00

100.00

100.00

100.00

100.00 

45.44

51. 0 0

36.49

100.00

81.39

100.00

100.00

69.95

1 3 .78

30.67

100.00

40.00

100.00

13.61

83

Corporate Governance Report84

United Microelectronics Corporation  |  Annual Report 2021Capital Overview

Capital and Shares
Issuance of Corporate Bonds
Preferred Shares

86 
91 
97 
9 8   American Depositary Receipts
1 0 0   Employee Stock Option Handling Status
1 0 0  
Issuance of New Restricted Employee Shares  
1 0 1   Status of New Shares Issuance in Connection with   

Mergers and Acquisitions

1 0 3   Financing Plans and Execution Status 

85

Capital Overview 
 
Capital and Shares
Source of Capital

Month/Year

Issue 
Price
(Per 
Share)

Shares
(In Thousand)

Authorized 
Capital

Amount
(In Thousand 
NT$)

Paid-in Capital

Shares
(In Thousand)

Amount
(In Thousand 
NT$)

Source of 
Capital

Capital
Increased by
Assets Other
than Cash

Remarks

Other

May, 2021

June, 2021

NT$10

NT$10

26,000,000

260,000,000

12,422,001

124,220,015

26,000,000

260,000,000

12,423,269

124,232,695

November, 2021

NT$10

26,000,000

260,000,000

12,484,377

124,843,773

November, 2021

NT$10

26,000,000

260,000,000

12,483,248

124,832,476

Note 1

Note 2

Note 3

Note 4

None

None

None

None

None

None

None

None

Note 1: On May 4, 2021, the Hsinchu Science Park Bureau, Ministry of Science and Technology approved the capital reduction of NT$4,000 thousand due to 

cancellation of the RSA. The Company’s paid-in capital was decreased to NT$124,220,015 thousand.

Note 2: On June 18, 2021, the Hsinchu Science Park Bureau, Ministry of Science and Technology approved the capital increase of NT$12,680 thousand due to issuance 

of new RSA for employees. The Company’s paid-in capital was increased to NT$124,232,695 thousand.

Note 3: On November 15, 2021, the Hsinchu Science Park Bureau, Ministry of Science and Technology approved the capital increase of NT$611,078 thousand due to 

share exchange between the Company and Chipbond Technology Corporation. The Company’s paid-in capital was increase to NT$124,843,773 thousand.

Note 4: On November 26, 2021, the Hsinchu Science Park Bureau, Ministry of Science and Technology approved the capital reduction of NT$11,298 thousand due to 

cancellation of the RSA. The Company’s paid-in capital was decreased to NT$124,832,476 thousand.

Note5: The data shown above was gathered until February 24, 2022.

Type of Stock

Share Type

Issued Shares(Note 1)

Un-Issued Shares

Total Shares

Authorized Capital

Allotment for Stock 
Option Certificate 
(Units)

Common Stock

12,483,247,566

13,516,752,434

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, 2022.

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

15

238

1,345

790,772

2,306

794,676

Shareholding (Shares)

473,025,134

1,311,626,006

1,508,920,245

4,545,546,612

4,584,151,496

12,423,269,493

Percentage (%)

3.81

10.56

12.14

36.59

36.90

100.00

Note: The data shown above was recorded on July 30, 2021, which was the record date for the distribution of 2021 cash dividend.

86

United Microelectronics Corporation  |  Annual Report 2021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~

40,001~

50,001~

100,001~

200,001~

400,001~

600,001~

800,001~

999

5,000

10,000

15,000

20,000

30,000

40,000

50,000

100,000

200,000

400,000

600,000

800,000

1,000,000

Over 1,000,001

                  Total

196,547

445,996

80,259

24,900

15,100

12,278

5,393

3,550

5,703

2,421

1,107  

383

150

135

754

794,676

Shareholding
(Shares)

54,124,380

968,476,611

624,043,559

313,286,063

277,902,257

309,968,794

191,953,99 0

164,720,731

408,584,868

342,235,537

312,608,455

19 0,043,885

103,799,595

123,068,068

8,038,452,700

12,423,269,493

Note: The data shown above was recorded on July 30, 2021, which was the record date for the distribution of 2021 cash dividend.

Preferred Shares
None.

List of Major Shareholders

Shareholder's Name

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

Hsun Chieh Investment Co., Ltd.

Fubon Life Insurance Co., Ltd.

Labor Pension Fund

Silicon Integrated Systems Corp.

CTBC Bank Employee Stock Ownership Trust Account of UNITED MICROELECTRONICS 
CORP.

Yann Yuan Investment Co., Ltd.

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

Nan Shan Life Insurance Company, Ltd.

Yao-Hwa Co.,Ltd Management Commission

Shares

 721,241,280 

 441,371,000 

 397,934,000 

 299,178,200 

 285,380,424 

 195,498,000 

 174,000,000 

 134,493,905 

 131,612,000 

 108,912,211 

Note: The data shown above was recorded on July 30, 2021, which was the record date for the distribution of 2021 cash dividend.

Percentage (%)

0.43

7.79

5.02

2.52

2.24

2.50

1.55

1.33

3.29

2.75

2.52

1.53

0.84

0.99

64.70

100.00

Shareholding

Percentage (%)

5.81

3.55

3.20

2.41

2.30

1.57

1.40

1.08

1.06

0.88

87

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)

2022 (Note 7)

6 5 . 5 0

51.70

58.56

-

-

-

-

-

-

-

-

-

-

-

-

2021 

72.0 0

43.05

56.29

22.51

*

In NT$

2020 

51.70

13.10

28.13

19.0 0

17.39

12,218,346,550

12,072,969,148

4.57

*

*

*

*

-

12.35

*

*

2.42

2.42

1.59988820

-

-

-

9.45

14.30

0.07

*Subject to change based on resolutions of the 2022 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 2022 was gathered until February 24, 2022.

Note 8: The average closing prices for years 2020, 2021 and 2022 were NT$22.88, NT$56.42, and NT$58.85, respectively.

88

United Microelectronics Corporation  |  Annual Report 2021Capital and Shares (Continue)

Dividend Policy and Status

1. Dividend Policy in the 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 

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

        legal 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 cash distributed  

     other regulations.

to shareholders (i.e. cash dividend distributed from earnings and cash 

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

distributed from capital surplus) shall not be lower than 50% of the net 

      be distributed according to the distribution plan proposed by the Board  

increase in the Company’s distributable earnings for the year, except in 

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

extraordinary situations.

      clause and submitted to the shareholders’ meeting for approval.

The  dividend  policy  of  the  Company  shall  be  determined  pursuant  to 

Proposed Distribution of Dividend

factors  such  as  the  investment  environment,  its  funding  requirements, 

The Company’s proposal for the cash distribution of NT$37,446,370,452 

domestic and overseas competitive landscape and its capital expenditure 

from  capital  surplus  (NT$3  per  common  share)  was  passed  during  the 

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

7th board meeting of the 15th term and will be discussed at the Annual 

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

General Meeting.

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

Effect of Share Dividends to Operating Performance and EPS

Not applicable.

89

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  2021  distributable  compensation  for  employees  and 

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

directors was passed during the 7th board meeting of the 15th 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  NT$4,770,909,436  as  employee  cash 

compensation and NT$25,264,302 as directors’ compensation.

There  is  no  difference  between  the  amount  passed  during  the  Board 

meeting and the recognized amount during 2021 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 2020:

In Thousand NT$

Item

Board Resolution (February 24, 2021)

Employees’ compensation distributed in Cash

Directors’ compensation

2,581,675

32,369

Note: The actual distribution of employees and directors’ compensation for 2020 were consistent with the resolutions of the Board of Directors meeting held on February 24, 2021.

Buyback of Treasury Stock
(1) Completed Share Buyback Program: None.

(2) Uncompleted Share Buyback Program: None.

90

United Microelectronics Corporation  |  Annual Report 2021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

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

NT$1 million

Taipei Exchange

NT$1 million

NT$5,000 million; 7-year bond for NT$2,000 million and 10-year bond for NT$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

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.

NT$3,000 million (Note)

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

Note: NT$2,000 million for the 5-year bond was repaid on June 18, 2021.

91

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

Legal counsel

Independent auditor

Repayment

Outstanding amount

Redemption clause

Restrictive clause

United Microelectronics Corporation 1st Unsecured Straight Corporate Bond
Issuance in 2017

March 24, 2017

NT$1 million

Taipei Exchange

NT$1 million

NT$8,300 million; 5-year bond for NT$6,200 million and 7-year bond for NT$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

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.

NT$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

92

United Microelectronics Corporation  |  Annual Report 2021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

Legal counsel

Independent auditor

Repayment

Outstanding amount

Redemption clause

Restrictive clause

United Microelectronics Corporation 2nd Unsecured Straight Corporate Bond
Issuance in 2017

October 3, 2017

NT$1 million

Taipei Exchange

NT$1 million

NT$5,400 million; 5-year bond for NT$2,000 million and 7-year bond for NT$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

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.

NT$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

93

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

Legal counsel

Independent auditor

Repayment

United Microelectronics Corporation 1st Unsecured Straight Corporate Bond
Issuance in 2021

April 22, 2021

NT$1 million

Taipei Exchange

NT$1 million

NT$9,600 million; 5-year bond for NT$5,500 million and 7-year bond for NT$2,000 million and 
10-year bond for NT$2,100 million

Fixed rate, 0.57% p.a., 0.63% p.a. and 0.68% p.a. for 5-year, 7-year and 10-year bond 
respectively

5-year bond: April 22, 2026
7-year bond: April 22, 2028
10-year bond: April 22, 2031

None

CTBC Bank Co., Ltd

Yuanta Securities Co., Ltd as the lead underwriter

Chen & Lin Attorneys-at-Law

Ernst & Young, Taiwan

The principal of 5-year, 7-year, and 10-year bonds will be repaid respectively in April 2026, April 
2028, and April 2031 upon maturity.
Interest will be paid annually for both 5-year ,7-year, and 10-year bonds.

Outstanding amount

Redemption clause

Restrictive clause

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

Other rights of bondholders

Dilution ef fect or other adverse impact on 
existing shareholders’ equity, if conversion, 
exchange, or subscription rights are attached

Custodian 

NT$9,600 million

None

None

Not applicable

None

None

None

94

United Microelectronics Corporation  |  Annual Report 2021Issuance of Corporate Bonds (Continue)

Name of Bond

Issue date

Denomination 

Listing and trading

Issue price

Total amount 

United Microelectronics Corporation 2nd Unsecured Straight Corporate Bond
Issuance in 2021

December 17, 2021

NT$1 million

Taipei Exchange

NT$1 million

NT$5,000 million

Coupon rate

Fixed rate; 0.63% p.a.

Tenor and maturity date

December 17, 2026

Guarantor

Trustee 

Underwriter

Legal counsel

Independent auditor

Repayment

Outstanding amount

Redemption clause

Restrictive clause

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

Other rights of bondholders

Dilution ef fect or other adverse impact on 
existing shareholders’ equity, if conversion, 
exchange, or subscription rights are attached

Custodian 

None

CTBC Bank Co., Ltd

MasterLink Securities Corp. as a lead underwriter

Chen & Lin Attorneys-at-Law

Ernst & Young, Taiwan

The principal of 5-year bond will be repaid in December 2026.
Interest will be paid annually.

NT$5,000 million

None

None

Not applicable

None

None

None

95

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 Exchangeable Bonds due 2026

July 7, 2021

US$200,000

Singapore Exchange Securities Trading Limited 

US$200,000

US$400,000,000

0%

5 years; July 7, 2026

-

Citicorp International Limited

Citi Global Markets Limited, Nomura International (Hong Kong) Ltd.

Chen & Lin Attorneys-at-law

Ernst & Young, Taiwan

Unless previously redeemed, exchanged, or repurchased and cancelled, the Bonds will be 
redeemed by the Company on the Maturity Date at an amount equal to the principal amount of the 
Bonds plus a gross yield at the rate of -0.625% per annum, calculated on a semi-annual basis (the 
“Redemption Amount”). The Redemption Amount will be converted into NT$ based on the Fixed 
Exchange Rate, and this fixed NT$ amount will then be converted using the prevailing exchange 
rate for payment in US$.

Principal payable

US$400,000,000

(a) Each Bondholder shall have the right to require the Company to redeem the Bonds, in whole 
or in part, on the third anniversary from the Issue Date at an amount equal to the principal amount 
of the Bonds plus a gross yield of -0.625% per annum, calculated on a semi-annual basis (the 
“Put Price”).
(b)  In  the  event  that  the  common  shares  of  Novatek  cease  to  be  listed  or  are  suspended  from 
trading  for  a  period  equal  to  or  exceeding  30  consecutive  trading  days  on  the  Taiwan  Stock 
Exchange, each Bondholder shall have the right to require the Company to redeem the Bonds, in 
whole but not in part, at an amount equal to the principal amount of the Bonds plus a gross yield of 
-0.625% per annum, calculated on a semi-annual basis (the “Early Redemption Amount”).
(c) Upon the occurrence of a Change of Control (as defined in the Indenture) of the Company, each 
Bondholder shall have the right to require the Company to redeem the Bonds, in whole but not in 
part, at the Early Redemption Amount.
(d)  Each  Bondholder  shall  exercise  the  redemption  right  and  the  Company  shall  handle  such 
redemption in accordance with the procedure provided in the Indenture. The payment of the Put 
Price and the Early Redemption Amount will be made by the Company in cash on the payment 
date designated by the Company pursuant to the Indenture.
(e) The Company may, at its option, redeem the bonds, in whole or in part at the Early Redemption 
Amount at any time after the third anniversary from the Issue Date and prior to the Maturity Date, 
if the closing price of the common shares of Novatek on the Taiwan Stock Exchange, converted 
into U.S. dollars at the prevailing exchange rate, for 20 out of 30 consecutive trading days prior to 
the publication of the redemption notice is at least 130% of the quotient of the Early Redemption 
Amount  multiplied  by  then  Exchange  Price  (converted  into  U.S.  dollars  at  the  Fixed  Exchange 
Rate), divided by the principal amount of the Bonds.
(f) The Company may, at its option, redeem the outstanding bonds in whole, but not in part, at the 
Early Redemption Amount, in the event that over 90% of the bonds has been previously redeemed, 
repurchased and cancelled or exchanged.
(g) In the event of any change in ROC taxation resulting in increase of tax obligation or the necessity 
to pay additional interest expense or increase of additional costs of the Company, the Company 
may, at its option, redeem the outstanding Bonds in whole, but not in part, at the Early Redemption 
Amount. Bondholders may elect not to have their bonds redeemed but with no entitlement to any 
additional amounts or reimbursement of additional taxes.
The Put Price/Early Redemption Amount will be converted into NT$ based on the Fixed Exchange 
Rate, and this fixed NT$ amount will then be converted using the prevailing rate for payment in 
US$.

Redemption or early redemption clause

96

United Microelectronics Corporation  |  Annual Report 2021Issuance of Corporate Bonds (Continue)

Covenant

Name of rating company, 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

 -

 -

 -

The bondholders may from October 8, 2021 to June 27, 2026 exchange the 
bonds into common shares of Novatek as a substitute for the issuer’s cash 
redemption. In addition, the bondholders will not be able to effect exchange into 
common shares of Novatek during any closed period.

The underlying exchange for the bond are common shares of Novatek. There 
won't be any material adverse effect on issuer’s shareholders.

Name of custodian

Citibank, N.A., London Branch

Exchangeable Bonds Information

Type

Year/Item

Amount of Reference 
Shares the Company 
Holds (Shares)

Currency Linked Zero Coupon Exchangeable Bonds Due 2026

2022

2021

2021.07.07
(Issue Date)

16,444,587

16,444,587

16,444,587

Exchangeable Price

NT$709.2

NT$709.2

NT$731.25

Market Price High

US$103.801

US$103.799

Low

US$98.583

US$98.660

Average

US$100.893

US$101.314

-

-

-

Issue Date

July 7, 2021

Reference Shares

Common shares of Novatek

Note: The data shown for 2022 is for the period January 1 to February 24, 2022

Euro Convertible Bonds Information

None.

Shelf Registration for Issuing Bonds

None.

Corporate Bonds with Warrants

None.

Preferred Shares

None.

97

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 US$108.2 million

Stock dividend

Stock dividend

US$84.2 million

US$76.3 million

Listing Price/Unit

-

-

US$3.05

-

-

US$3.33

US$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 132,145,927 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 is current as of February 24, 2022.

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 (US$)

High

11.69

Low

9.24

2022

Average

10.34

High

12.54

Low

8.01

2021

Average

10.13

Note: The data shown for 2022 is for the period January 1 to February 24, 2022.

98

United Microelectronics Corporation  |  Annual Report 2021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

US$13.8 million

US$24.4 million

Stock dividend

Stock dividend

US$439.7 million

Stock dividend

US$1,291.5 million

-

US$4.92

US$4.75

-

-

US$9.25

-

US$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

-

-

-

-

-

-

-

-

99

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 (NT$)

The current issue is gratuitous

New Restricted Employee Shares as a Percentage of  
Shares Issued

1.64%

2021.06.09

1,268,000 shares

0.01%

Vesting Conditions of New Restricted Employee Shares

Restricted Rights of New Restricted Employee Shares

100

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 2021 
 
 
 
 
 
 
Issuance of New Restricted Employee Shares

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

1,529,768 shares (Note)

Number of Released New Restricted  Employee Shares

0 shares

Number of Unreleased New Restricted Shares

198,500,232 shares

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

1.62%

0 shares

0 shares

1,268,000 shares

0.01%

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. 

Note: 1,124,082 cancelled restricted shares approved by the Board of Directors on February 24, 2022 are not included.

Status of New Shares Issuance in Connection with Mergers 
and Acquisitions

In  the  latest  year  or  as  of  the  date  of  the  annual  report,  the  following 

driver IC assembly and testing service; after the exchange of shares, 

matters  related  to  issuance  of  new  shares  in  connection  with  mergers 

the two parties will cooperate fully in market segments such as panel 

or acquisitions or with acquisitions of shares of other companies shall be 

driver  ICs,  compound  semiconductor  power  components,  and  radio 

disclosed:

frequency  components.  Combining  both  parties’  advantages,  UMC 

The proposal submitted in 2021 for United Microelectronics Corporation 

and  Chipbond  will  integrate  upstream  and  downstream  supply  chain 

(“UMC”)  to  issue  new  shares  to  exchange  for  shares  in  Chipbond 

resources  to  provide  customers  with  comprehensive  services.  In 

Technology  Corporation  (“Chipbond”),  case  number  1101805580,    was 

addition,  Chipbond’s  operation  and  profitability  have  been  stable  in 

approved  by  TWSE  and  became  effective  on  October  20,  2021.  The 

recent years. By obtaining equity through share exchange, UMC will 

share exchange record date was November 5, 2021. The proposal was 

also be able to participate in Chipbond’s operating results and increase 

approved by the Hsinchu Science Park Bureau and the exchange of new 

financial dividend income.

shares was registered on November 15, 2021. In accordance with Article 

9, paragraph 1 subparagraph 8 of “Regulations Governing the Offering 

2. The business impact of receiving other company’s shares:

and  Issuance  of  Securities  by  Securities  Issuers”,  UMC  appointed 

UMC  provides  high  quality  IC  fabrication  services,  focusing  on  logic 

Horizon Securities to submit the assessment opinion as of the first quarter 

and  various  specialty  technologies  to  serve  all  major  sectors  of  the 

of 2022.

electronics  industry.  Chipbond  supplies  full  turnkey  services  for 

1. The financial impact of receiving other company’s shares:

backend assembly processing of LCD driver ICs from wafer bumping 

UMC  issued  new  shares  to  exchange  for  53,163,821  shares  of 

to  packaging.  Two  parties  have  started  cooperation  in  the  field  of 

Chipbond, The consideration was not paid in cash and did not affect 

driver  ICs,  integrating  front-end  and  back-end  process  technologies, 

company’s  capital  allocation  and  financial  operation.  The  main 

moving towards higher frequency and lower power consumption, and 

businesses  of  UMC  and  Chipbond  are  foundry  service  and  panel 

jointly  providing  a  unified  solution  for  the  panel  industry.  In  addition, 

101

Capital Overview 
 
Status of New Shares Issuance in Connection with Mergers and Acquisitions (Continue)

UMC  actively  invests  in  GaN  power  component  development  and 

1. The status:

RF  components  process  development.  It  intends  to  capitalize  on 

The proposal was adopted by the Board of Directors on September 3, 

Chipbond’s  leading  position  in  the  packaging  and  testing  market  for 

2021 to issue new shares of UMC to exchange for shares of Chipbond. 

power  and  RF  components  and  advanced  packaging  technology  to 

On  September  3,  2021,  the  Board  of  Directors  confirmed  that  UMC 

accelerate its development of market opportunities for high-efficiency 

issued  61,107,841  new  shares  in  exchange  for  53,163,821  shares 

power components and 5G RF components, which will help improve 

of  Chipbond,  and  the  par  value  of  the  share  is  NT$10,  and  the  total 

overall business competitiveness.

amount was NT$611,078,410. The proposal, case no. 1101805580, was 

approved by TWSE and became effective on October 20, 2021. The 

3. The impact on the shareholder’s equity by receiving other company’s 

share exchange record date was November 5, 2021. The proposal was 

share:

approved  by  Hsinchu  Science  Park  Bureau  and  the  share  exchange 

UMC  issued  61,107,841  new  shares  in  exchange  for  53,163,821 

was registered on November 15, 2021.

shares of Chipbond. It represented 0.49% of paid-in capital, but share 

exchange enabled the Company to increase investment in Chipbond, 

directly  obtaining  approximately  7.2%  of  Chipbond’s  equity  as  well 

as  deepening  the  cooperation  between  two  companies.  In  addition, 

Chipbond’s operation and profitability have been stable in recent years. 

By  obtaining  equity  through  share  exchange,  UMC  will  also  be  able 

to  participate  in  Chipbond’s  operating  results  and  increase  financial 

dividend income.

4. The benefit of receiving other company’s share:

UMC  issued  new  shares  in  exchange  for  53,163,821  shares  of 

Chipbond, and the proposal was approved by Hsinchu Science Park 

Bureau and was registered on November 15, 2021. After completion 

of  the  share  exchange,  two  parties  have  started  to  implement  the 

cooperation  plan.  By  combining  the  technical  advantages  of  both 

parties, it should have positive benefits for UMC’s finances, business 

and  shareholders’  interests.  The  benefits  of  this  project  will  become 

increasingly clear as it progreses. 

During the latest year or as of the date of the annual report, the Board of 

Directors has adopted a resolution approving any issuance of shares in 

connection with a merger or acquisition or with acquisition of shares of any 

other company. The following status and information shall be disclosed: 

102

United Microelectronics Corporation  |  Annual Report 2021Status of New Shares Issuance in Connection with Mergers and Acquisitions (Continue)

2. Basic information of the other Company:

Company Name

Company Address

Chairman

Paid-in Capital

Unit: in Thousand NT$; except EPS is in dollar

Chipbond Technology Corporation

No.3, Li Hsin 5th Rd., Hsinchu Science Park, Hsinchu, 300

Fei-Jain Wu

7,386,755

Main Business Items

Gold Bump、Solder Bump、TCP、COF、Flip Chip、COG and Tape

Main Products

Packaging and testing

The latest 
year of 
financial 
data

Assets

Liabilities

Equity

Revenue

Gross Margin

Operating Gain

Net Income

53,800,574

12,124,543

41,676,031

27,082,040

8,751,775

6,894,025

6,137,294

Earnings Per Share

9.00

Note: The data shown above is 2021 Financial Statements of Chipbond.

Financing Plans and Execution Status

As of the end of the fourth quarter of 2021, the implementation of uncompleted funding plans was as follow:

Projects

Issue Date

Unsecured Straight Corporate Bond (110-1)

Unsecured Straight Corporate Bond (110-2)

April 22th, 2021

December 17th, 2021

Use of Proceeds

Purchase of equipment and environmental protection related expenditures

Purchase of equipment

Chang of Plan

No change

Gross Proceeds

NT$9,600 million

Implementation Status

The actual implementation was NT$6,924.411 million. 
The acceptance and payment schedule was postponed due to COVID-19, 
and the overall of fund utilization is behind the original estimated progress. 
The rest will continue to be implemented according to the demand progress.

No change

NT$5,000 million

The plan is to be implemented in 2022.

103

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

Title

Name

No. of New 
Restricted 
Shares

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

Released

No. of 
Shares

Issued 
Price
(NT$)

Amount

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

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

Vice President 

Vice President , 

r
e
g
a
n
a
M

Vice President & Chief Human 
Resources Officer

TS Wu

C C Hsu

M C Lai

S F Tzou

Osbert Cheng

G C Hung

Steven Hsu

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

Associate Vice President

Victor Chuang

Chuck Chen

Associate Vice President

JT Lin

Associate Vice President

Yau Kae Sheu

Associate Vice President

J Y Wu

Associate Vice President

Purakh Raj Verma

Associate Vice President

Associate Vice President

Associate Vice President

Yanan Mou

Remi Yu

Cedric Lee

Associate Vice President

Michael CY Wang

Associate Vice President

C P Yen

Associate Vice President

Pang Min Wang

Associate Vice President

Ray Yang

Associate Vice President

Bellona Chen

104

121,750

0.980

0

0

0

0.00

United Microelectronics Corporation  |  Annual Report 2021As of February 24, 2022/Unit: Thousand Shares/In Thousand NT$

Unreleased

No. of Shares

Issued Price
(NT$)

Amount

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

121,750

0

0

0.980

105

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

No. of New 
Restricted 
Shares

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

Released

No. of 
Shares

Issued 
Price
(NT$)

Amount

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

15,780

0.127

0

0

0

0.00

Shares (Continue)

Title

Name

Associate Vice President

Louis Hsieh

Former Associate Vice President

Ji Fu Kung

Former Associate Vice President

Le Tien Jung

Senior Division Director

Senior Fab Director

Senior Fab Director

Senior Division Director

M H Wang

William Lu

J H Lin

Jeffrey Lin

Senior Division Director

Benjamin TM Lin

Senior Division Director

Seanchy Chiu

e
e
y
o
p
m
E

l

Senior Fab Director

Senior Division Director

Senior Division Director

Y C Kuo

David Chen

Stan Chen

Senior Division Director

Jeffrey Huang

Senior Division Director

Wunnshien Liao

Senior Division Director

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

106

United Microelectronics Corporation  |  Annual Report 2021As of February 24, 2022/Unit: Thousand Shares/In Thousand NT$

Unreleased

No. of Shares

Issued Price
(NT$)

Amount

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

15,780

0

0

0.127

107

Capital OverviewOperations Overview

109  Business Activities
116  Overview of Market, Production, and Sales  
121  Employees 
122  Environmental Expenditure Information  
122 
125     Information Security Management
127  Major Contracts

Labor Relations 

108

United Microelectronics Corporation  |  Annual Report 2021Business Activities

Business Scope

UMC  provides  wafer 

fabrication  services 

through  state-of-the-art 

voltage,  bipolar-CMOS-DMOS,  MEMS  sensor,  mixed-signal/RFCMOS, 

manufacturing  processes  for  a  broad  range  of  applications  within  the 

RFSOI,  2.5D/3D  advanced  packaging,  and  compound  semiconductors 

IC  industry.  The  Company  offers  comprehensive  solutions  to  meet 

(GaAs, GaN...etc.) to complete design tape-outs.

customers’  chip  design  requirements,  and  provides  logic  and  specialty 

process  technologies  from  0.6-micron  to  14-nanometer.  From  UMC’s 

robust technology portfolio, customers can select the processes suited for 

their product applications, including embedded non-volatile memory, high 

Industry Overview

Current  Status  and  Development  of  the  Semiconductor 

In 2021, the semiconductor industry benefited from the work-from-home 

and Foundry Industry

and  learn-from-home  trends  prompted  by  the  COVID-19  pandemic, 

The  development  of  electronic  products  has  been  trending  towards 

which led to higher demand for personal computers and servers. Higher 

enhanced 

functionality, 

light  weight,  energy  saving,  and  artificial 

5G  smartphone  penetration  and  rapid  infrastructure  deployment,  the 

intelligence  (AI) 

technology.  The  growth 

in  applications 

for  5G 

recovery  of  the  automotive  market,  and  growth  in  applications  such  as 

smartphones,  automotive  electronics  and  electric  vehicles,  Internet  of 

high  performance  computing  (HPC),  Artificial  Internet  of  Things  (AIoT), 

Things (IoT), and AI in recent years, as well as the commercial introduction 

WiFi6,  and  true  wireless  stereo  (TWS)  are  all  positive  for  demand.  At 

of advanced packaging, have also affected the direction and increased 

the  same  time,  increasing  silicon  content  in  end  system  products  also 

the complexity of chip design. Combined with the constant miniaturization 

contributed to robust demand and led to a shortage of semiconductors 

of  semiconductor  fabrication  processes,  it  resulted  higher  technology 

during the year. As a result, global semiconductor sales rose 25.6% in 

barrier and the investment required has also increased many folds. 

2021.

The  requirements  of  enhanced  chip  performance  coupled  with  the 

Going  into  2022,  the  outlook  for  the  semiconductor  market  remains 

continual  miniaturization  of  semiconductor  fabrication  processes  are 

positive.  Growth  will  continue  to  be  driven  by  5G  smartphone,  AIoT, 

raising the barriers of entry across semiconductor sectors, from design 

automotive electronics and electric vehicles, HPC, and AI applications. 

to testing, and increasing the amount of investment required significantly. 

According  to  forecasts  from  key  market  research  firms,  it  is  expected 

The development costs of advanced process technologies and the capital 

that demand for personal computers will remain at a relatively high level, 

expenditure for new tools and equipment have  also risen considerably. 

while 5G smartphone demand will keep increasing. For 2022, the global 

As a result, the industry’s vertical specialization is becoming increasingly 

semiconductor market is expected to expand 8.8%, according to the SIA.

distinct. Many integrated device manufacturers (IDMs) have announced 

that  they  will  no  longer  actively  invest  in  the  development  of  advanced 

Capacity utilization in the global foundry industry remained high and the 

processes nor increase their capacity due to cost considerations, and are 

supply is very tight in 2021 as the supply-demand imbalance persisted. 

instead increasing the proportion of wafer manufacturing outsourced to 

Strong IC demand supported by the acceleration in digital transformation, 

foundries. System providers are also increasingly designing ICs in-house 

development of 5G and other new applications, and safety stock building 

and directly outsourcing fabrication. These industry trends are positive for 

in the supply chain led strong foundry industry growth in 2021. Revenue 

the development of foundry business. 

of  the  global  foundry  industry  increased  approximately  27%  in  2021 

109

Operations OverviewIndustry Overview (Continue)

according  to  Gartner,  and  foundry  players  have  expanded  their  capital 

process optimization, to enable customers to successfully develop chip 

investments in response to strong customer demand. 

designs  and  eventually  move  to  volume  production.  Finally,  the  testing 

and packaging sector will package and test customers’ chips to ensure 

Looking forward to 2022, the global chip shortage is unlikely to be resolved 

they meet their design specifications.

amid the ongoing impact of the pandemic, the US-China tech war, and 

geopolitical  factors.  Although  there  may  be  adjustments  to  customers’ 

Development and Trends in the Electronics Industry

inventories,  the  demand  outlook  for  the  foundry  stable  remains  stable. 

The  electronics  industry  is  generally  divided  into  several  categories: 

Yet, expansion projects by various foundry players, which will gradually 

Computer,  communication,  consumer,  industrial  and  automotive.  The 

come online, will need to be taken into account. According to Gartner, the 

development of end devices continues to move towards smaller size, lower 

overall foundry industry will grow by 13% in 2022. 

power  consumption,  greater  connectivity,  and  intelligence.  Emerging 

technologies  such  as  5G,  smartphones,  AIoT,  wearables,  autonomous 

There  are  still  a  number  of  uncertainties  which  may  affect  global 

driving/electric  vehicles,  artificial  intelligence/deep  learning,  augmented 

economic  development  and  the  semiconductor  market.  That  includes 

reality/virtual  reality  (AR/VR)  will  continue  to  grow.  The  foundry  sector 

the  economic  impact  of  COVID-19,  the  implications  of  the  US-China 

works  with  upstream  and  downstream  partners  in  the  semiconductor 

trade  war,  subsequent  developments  of  the  restrictions  the  US  placed 

value  chain  to  enable  the  development  of  various  applications  and  to 

on  Chinese  technology  companies,  the  impact  of  the  chip  shortage, 

capture new opportunities presented by trends in the electronics industry.

production expansion and the impact on the supply-demand dynamics, 

and inventory adjustments in the supply chain. Moreover, global inflation, 

the Federal Reserve decisions, and international energy prices are also 

factors affecting the global economy and semiconductor industry.

Overview of Semiconductor Industry Value Chain

The division of labor in the semiconductor value chain is fairly mature and 

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

testing and packaging. IC designers produce designs of chips according 

to  the  specifications  and  applications  of  end  products.  As  different  ICs 

have unique requirements, wafer foundries must provide comprehensive 

process  technologies  and  intellectual  property,  as  well  as  continuous 

110

United Microelectronics Corporation  |  Annual Report 2021Overview of Technology and R&D

R&D Expenses for the Past 5 Years

In Thousand NT$

2021

2020

2019

2018

2017

Operating Revenues

213,011,018

176,820,914

148,201,641

151,252,571

149,284,706

Research and Development Expenses

12,934,836

12,895,501

11,860,244

13,025,139

13,669,589

Research and Development Expenses as a 
Percentage of Operating Revenues

6.07%

7.29%

8.00%

8.61%

9.16%

Note: The R&D expense for 2022 was calculated up until the publication date of February 24, 2022, which amounted to NT$1,590,834 thousand.

Technologies or Products Successfully Developed Within the Past 5 Years

Year

2017

2018

2019

R&D Achievements

‧ 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 has entered mass production. In addition, UMC developed a new 14nm FinFET platform process (14FFC), with  
yield  for  the  128Mb  SRAM  on  this  process  having  reached  industry  competitive  levels.  14FFC  also  passed  process  and  product  reliability  
verification to officially enter the pilot production stage for customer chips.

‧ UMC partnered with the leader in next generation STT-MRAM, USA-based Avalanche, to jointly develop and produce eMRAM.

‧ 14nm FinFET-Plus customized process has entered mass production. In addition, UMC developed a new 14nm FinFET platform compact process  
(14FFC),  with  yield  for  the  128Mb  SRAM  on  this  process  having  reached  industry  competitive  levels.  14FFC  also  passed  process  and  product  
reliability verification to officially enter the pilot production stage for customer chips.

‧ 40nm ReRAM was co-developed with Panasonic and already at risk production stage. This ReRAM is fully logic process compatible and high 

performance.

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.

2021

‧ Being introduced into 5G and netcom applications, the 14nm FinFET platform compact process (14FFC) successfully entered mass production and 

has cooperated with many customers to expand the application of 14FFC products

‧ The successful mass production of various 22nm products has attracted more than 10 customers to adopt the 22nm technology platform for product 

verification and mass production planning.

‧ 22nm process technology image signal processor (ISP) has established component models and design specifications.
‧ The 28HPC+ customized process technology was applied to the image signal processor (ISP), and successfully introduced into higher-end 108Mp 

products and entered mass production.

‧ Low temperature polycrystalline oxide panel (LTPO OLED) drive chip products using 28nm high voltage 27V process technology have entered mass 

production.

‧ The 40nm non-volatile memory process platform has completed vehicle verification and entered mass production.
‧ 40nm resistive random access memory enters mass production.
‧ The 55nm RFSOI process has entered mass production and meets the 5G sub-6 GHz market demand.
‧ The power management chip (PMIC) of the 0.11 micron BCD power integrated circuit technology platform has completed product verification and 

successfully entered mass production.

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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 

28nm High-Performance Process Technology

development  of  logic  process  technology.  With  the  adherence  to  the 

UMC’s  28nm  high-performance  process  utilizes  high-k/metal  gate 

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

stack  technology.  The  28nm  high-performance  computing  process 

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

(28HPC +) entered mass production in 2020 for image signal processor 

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

(ISP) products. The higher-end 108Mp products have been successfully 

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

introduced and run for mass production in 2021. Furthermore, the 200Mp 

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

products  will  be  introduced  for  trial  production  in  2022.  The  28HPC+ 

recruit and train a large number of R&D talent. In 2021, UMC continued 

millimeter  wave  (mmWave)  process  covers  high-performance  and  low-

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

power  technology  platforms;  verification  of  the  mmWave  chip  design 

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

process  has  already  been  completed.  Customers  can  leverage  UMC's 

logic and specialty technologies.

14nm Process Technology

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

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

mmWave  SoC  design.  With  the  mmWave  SPICE  model  coverage 

UMC  reached  the  mass  production  milestone  for  its  customized  14nm 

extending to 110GHz, the application ranges are perfect to cover mobile 

FinFET (14FF+) process in early 2017, and the competitiveness of device 

devices,  automotive  electronics  (AUTO)  and  Internet  of  Things  (IoT) 

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

products.

UMC’s another 14nm project, 14FFC FinFET process platform, exhibited 

55% performance improvement and twice the gate density compared to 

Display Driver IC and Power Management Process 

28nm. Currently UMC’s 14FFC platform, designed in products by several 

Technologies

customers  with  product  yield  reaching  90%  and  performance  meeting 

UMC's 28nm high-voltage process, supporting the high-end active matrix 

design targets, has been introduced into 5G and netcom applications and 

organic  light-emitting  diode  (AMOLED)  display  driver  IC  market,  is  the 

already entered mass production. More customers are engaging in new 

wafer foundry industry first to be successfully developed and enter mass 

product development with UMC’s 14FFC design-in and planning on tape-

production.  Low  temperature  polycrystalline  oxide  panel  (LTPO  OLED) 

out of new products.

22nm Ultra-Low Power/Ultra-Low Leakage Process 
Technology

drive  chip    products  using  28nm  high  voltage  27V  process  technology 

have  entered  mass  production.  The  22nm  embedded  high-voltage 

process technology has been continuously developed and the progress 

is on schedule, and trial production is expected in 2022. 

UMC  has  developed  22nm  process  technology  and  its  28nm  high 

Power management IC (PMIC) with higher voltage applied during voltage 

performance compact low power process technology platform (HPC +). 

conversion  benefits  to  reduce  the  energy  consumption  so  energy  can 

With  the  same  number  of  mask  layers  and  compatible  design  criteria 

be  conserved.  To  serve  the  demands  for  various  power  management 

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

(PMIC) applications, UMC provides Super High Voltage (5V and 30V in 

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

coordination with 300V, 500V or 700V) processes. UMC also provides 

area has been reduced by 10%. Therefore, the cost competitiveness of 

a  process  technology  platform,  compatible  with  standard  logic  and  a 

22nm technology has been greatly improved to provide customers with 

complete  silicon  intellectual  property,  and  combining  with  world-class 

more process options. In 2020 Q4, UMC’s 22nm ULP/ULL technologies 

third-generation Low Conduction Resistance and High Sustain Voltage 

reached  the  mass  production  milestone  for  customer  digital  TV  (DTV) 

components, to serve for mobile phones, tablet appliances, Automotive 

chips.  UMC  R&D  teams  continue  to  optimize  the  process  and  expand 

industrial  grade  and  other  applications.  The  0.11  micron  Bipolar-

the scope of product applications in electronic products such as analog, 

Complementary  Metal  Oxide  Semiconductor-Double  Diffusion  Metal 

mixed-signal,  RF  technology,  Internet  of  Things,  mobile  devices,  etc.; 

Oxide Semiconductor (BCD, Bipolar-CMOS-DMOS) power management 

relevant  specifications  for  automotive  electronic  products  are  also 

chip of the power integrated circuit technology platform has completed 

under  development.  Due  to  the  successful  mass  production  of  various 

product  verification  and  successfully  entered  mass  production.  The 

products,  more  than  ten  customers  have  been  attracted  to  adopt  the 

development progress of the next-generation customized mobile phone 

22nm technology platform for product verification and mass production 

power IC is in good conditions and expected to enter trial production in 

planning, hence created a large number of business opportunities. 22nm 

2023.

ULP/ULL process technology for customized application on image signal 

processor  (ISP)  has  also  started  to  establish  component  models  and 

design specifications for customers to use.

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United Microelectronics Corporation  |  Annual Report 2021Overview of Technology and R&D (Continue)

Non-Volatile Memory Process Technologies

CMOS Image Sensor (CIS) and MEMS Process Technologies

The  40nm  eFlash  memory  developed  in  cooperation  with  major 

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

automotive  electronics  manufacturers  has  completed  the  verification 

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

of  automotive  electronics  reliability  and  entered  mass  production.  It  is 

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

believed that the demand for this type of chip will increase in the market. 

technologies,  have  entered  the  verification  stage.  This  technology  is 

In  the  meanwhile,  self-developed  40nm  non-volatile  memory  process 

expected to provide higher sensing resolution to meet product upgrade 

platform has been adopted by customers and entered mass production. 

requirements. 

The development progress of 28nm embedded SuperFlash  non-volatile 

By  developing  advanced  sensors  with  second-generation  micro-

memory platform (ESF4) is also in line with expectations; it has achieved 

electromechanical  (CMOS-MEMS)  technology  and  cooperating  with 

a stable yield rate and is ready for reliability verification. The product is 

customers,  UMC  manufactures  flow  sensor  chips  widely  used  in  life-

expected to meet the demand for the Internet of Things (IoT). 

sustaining  medical  respirators  for  critically  ill  patients  to  combat  the 

Resistive Random Access Memory (ReRAM) is a novel NVM with simple 

COVID-19  epidemic  in  recent  years.  The  vaccine  temperature  control 

structure,  low  operation  voltage,  low  read  current,  fast  program/erase 

chips  produced  with  the  temperature  and  humidity  sensor  are  used 

speed and very good reliability. Moreover, it is fully logic compatible with 

to  monitor  the  temperature  during  the  cold  chain  transportation  of  the 

less add-on masks and low extra cost. UMC’s 40nm ReRAM has entered 

vaccine to ensure that the vaccine efficacy is not reduced and to prevent 

mass  production,  while  22nm  ReRAM  technology  platform  have  been 

the  spread  of  the  epidemic.  In  response  to  greenhouse  gas  emission 

developed  in  progress  as  scheduled,  and  is  expected  to  be  applied  in 

control,  the  carbon  dioxide  sensing  element  can  regularly  monitor  the 

intelligent Internet of Things (AIoT) related products. 

concentration and trend of carbon dioxide in the air. Precise management 

The  new  generation  of  embedded  Magnetoresistive  Random  Access 

of the carbon dioxide emission source and amount information can help 

Memory (eMRAM) has the same size as the traditional charge-trapping 

the responsible unit take timely and appropriate control measures. UMC 

memory, but has simpler process conditions and faster operation speed, 

makes  every  effort  to  develop  environmentally-friendly  technologies  to 

and  exhibits  excellent  thermal  stability,  read/write  endurance,  and  data 

contribute to the sustainable future of our planet.

retention. In the progress of 22nm eMRAM process platform, the 22nm 

high-density 1G HDMRAM product has been successfully verified, and 

Compound Semiconductors

is  expected  to  enter  mass  production  in  2022.  It  can  be  applied  in  the 

In  terms  of  the  overall  layout  of  compound  semiconductors,  UMC  has 

intelligent  Internet  of  Things  (AIoT)  and  aerospace/telecommunications 

continued to add SAW filter integration solutions for existing HBT power 

(LEO) related products in the future.

RFSOI Process Technologies

amplifiers,  and  combined  UMC's  existing  RFCMOS  Switch  and  LNA 

technologies  to  provide  mobile  phone  RF  front-end  module  integration 

solution. The Gallium Arsenide pHEMT part will continue to develop key 

UMC's  RFSOI  technology,  with  its  unique  substrate  characteristics  to 

chip technologies suitable for 5G mobile communication mmWave band 

prevent high-frequency signal harmonic frequency distortion and to reduce 

base station/low-orbit satellite receiver. In addition, as to wide-bandgap 

power loss, satisfies the strict requirements of all 4G/5G mobile phones for 

component  technology,  UMC  actively  invests  in  the  development 

RF switches. Following 90nm RFSOI process mass production, the 55nm 

of  gallium  nitride  power  components  (Power  GaN)  and  microwave 

RFSOI  process  has  also  entered  mass  production  in  2021,  and  meets 

components  (RF  GaN)  technology  platforms,  in  order  to  deploy  in  the 

the needs of the 5G sub-6 GHz market, while UMC continues to develop 

market  of  high-efficiency  power  components  and  5G/low-orbit  satellite 

the 40nm RFSOI technology platform to catch subsequent 5G/mmWave 

communication components.

growth trends. 22nm RFSOI has also entered the pre-evaluation stage, 

with a view to deploy in the market above 40GHz in the future. UMC's RF 

Foundry  Design  Kit  (FDK)  allows  users  to  design  optimized  inductors/

capacitors  in  minutes  with  simple  steps  through  convenient  software. 

These powerful solutions make UMC's RF technology one of the most 

competitive technologies in the semiconductor industry.

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

3D WoW Hybrid-bonding Technology

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

UMC has been providing 2.5D interposer technology for mass production 

volatile memory IPs, and diversified analog/mixed signal IPs that support 

to  high-end  CPU/GPU  customers  for  many  years.  On  top  of  that,  3D 

industrial  standard  interfaces  (such  as  USB,  DDR,  and  HDMI).  This 

wafer-on-wafer (WoW) hybrid-bonding technology, combining with open 

year UMC has extended its long-term IP cooperation with all leading IP 

supply  chain  cooperation  model,  has  provided  customers  with  reliable 

vendors to 22nm and 14nm processes in order to provide customers with 

and  flexible  solutions.  In  the  meantime,  as  to  the  application  of  radio 

a competitive design support environment.

frequency components, 3D stacking technology for downsizing by 40% 

has completed product verification. 

Intellectual Property

Silicon IP Support

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 

constantly providing optimized library design kits closely integrated with 

the board of directors at least once a year. The Company was granted 

the Company’s process technology in order to help designers accelerate 

a total of 432 domestic and foreign patents in 2021, 206 of which are US 

the completion of their chip design. From mature to advanced process 

patents, 60 ROC patents, and 166 China patents. The total accumulated 

technologies  to  specialty  processes,  UMC  can  provide  complete 

number of UMC’s patents is 14,423, which can provide a thorough and 

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

strong  IP  foundation  for  UMC’s  technologies.  To  keep  this  competitive 

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

edge,  UMC  has  greatly  increased  the  quality  and  quantity  of  critical 

for  advanced  processes  can  provide  devices  of  various  operating  and 

technology patents in order to further strengthen  customer service and 

threshold voltages (Vt). Along with low power library kits, they can meet 

competitiveness  while  helping  them  to  create  profits.  Additionally,  in 

various customer needs for design flexibility and high performance/low 

2021, UMC has been awarded Taiwan Intellectual Property Management 

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

System  (TIPS)  certification,  highlighting  the  Company’s  continuous 

it  is  qualified  through  a  stringent  Electrostatic  Discharge  (ESD)  test  to 

commitment to strengthening its IP management system and corporate 

help customers design competitive products that can pass the ESD test 

governance.  TIPS  is  the  official  benchmark  for  Taiwan  enterprises  and 

with  voltage  as  high  as  4kV.  So  far,  numerous  customers  have  taped-

obtaining this certification is an evidence that we have a robust system in 

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

place that is recognized by state-level authorities.

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

provides  customized  embedded  flash  memory  (eFlash)  IP  on  various 

process generations according to customer needs and has successfully 

helped customers with quick market entry for their products. In addition 

to UMC made IPs, the Company has also established partnerships with 

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United Microelectronics Corporation  |  Annual Report 2021Long-Term and Short-Term Business Plans

UMC  is  committed  to  delivering  comprehensive  wafer  fabrication 

UMC’s  capital  expenditure  for  2022  is  expected  to  be  approximately 

solutions  to  its  customers  through  close  cooperation  with  supply  chain 

US$3.6  billion,  which  will  mainly  be  spent  on  new  28nm  and  22nm 

partners  providing  equipment,  automated  electronic  design  tools,  IC 

capacity.  The  Company’s  expansion  plans  are  in  cooperation  with  a 

design service, silicon IP service, mask manufacturing, and packaging/

number  of  customers  who  are  paying  deposits  to  secure  capacity.  To 

testing services etc., which enables the Company to provide customers 

further expand, UMC will consider acquiring existing fabs that can quickly 

with  verified  reference  flows,  broad  silicon  IP,  design  cell  library 

increase  the  Company’s  scale,  boost  competitiveness,  and  are  cost-

databases, and diversified options for packaging and testing. Combined 

effective. 

with the Company’s advanced process technologies and state-of-the-art 

wafer  fabrication  technology,  UMC  can  ensure  customers’  IC  products 

Facing  market  requirements  for  continuously  advancing  semiconductor 

fast time-to-market.

Short-Term Objectives

technology, in addition to UMC’s own technology R&D, the Company will 

work with strategic partners and supply chain vendors to jointly develop 

technologies.  UMC  will  also  continue  raising  environmental  protection 

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

awareness. In addition to establishing a low carbon and green chemical 

8-inch  and  12-inch  specialty  technologies  and  advanced  processes 

supply chain, UMC is dedicated to the support of various environmental 

based  on  market  and  customer  needs,  enhance  capacity  utilization 

protection  activities  and  the  promotion  of  environmental  protection 

rate,  and  strengthen  profitability.  UMC’s  rich  technology  platforms  at 

education.

various process nodes and diversified specialty technologies can meet 

all  requirements  of  primary  market  applications.  At  the  same  time,  the 

Company  continues  to  focus  on  structural  productivity  enhancements 

and  manufacturing  capacity  optimization  of  8-inch  and  12-inch  fabs  to 

seize market opportunities and increase revenue. The Company is also 

actively expanding capacity for 28nm processes, which is recently in high 

demand. 

Medium-to-Long-Term Objectives

Process technology R&D, stable operations, and profit have always been 

a core focus of UMC. The Company strives to make prudent investments, 

maintain  or  gain  market  share,  and  decrease  costs  through  efficiency 

improvements.  To  meet  customers’  needs,  UMC  aims  to  implement  all 

critical R&D projects according to plan and provide customized process 

technology  platforms.  In  recent  years,  the  Company  has  actively 

invested  in  the  development  of  compound  semiconductor  gallium 

nitride  (GaN)  power  components  and  RF  components,  targeting  high-

growth opportunities such as high-efficiency power components and RF 

components markets.

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Operations OverviewOverview of Market, Production, and Sales
Market Analysis

Sales by Geographic Region 

•  The overall structure of Taiwan’s semiconductor industry is complete, 

UMC’s customer base includes leading companies in diverse geographic 
regions.  Asia  Pacific  and  North  America  are  the  key  sales  regions  for 
the Company, accounting for 65% and 22% of 2021 operating revenues, 
respectively.  Europe  and  Japan  combined  account  for  13%  of  our 
operating revenues. UMC will continue to strengthen its cooperation with 
established  customers  as  well  as  partner  with  emerging  companies  in 
order to achieve stable growth in the medium- and long-term.

Market Position

UMC  is  a  leader  in  the  global  pure-play  wafer  foundry  market,  which 

had total revenue of approximately US$97.0 billion in 2021. According to 

estimates by market survey institution Gartner, UMC remains the largest 

wafer foundry in the world after TSMC with a 7.8% market share. Its main 

competitors  are  TSMC,  Samsung  Foundry  (note:  revenue  of  Samsung 

Foundry  doesn’t  include  income  from  Samsung  LSI  in-house  ASIC 

business), GlobalFoundries, and SMIC.

Foundry Industry Outlook

•  According to the market survey of Semiconductor Industry Association 

(SIA),  the  total  revenue  of  the  semiconductor  industry  in  2021  was 

close  to  US$553.0  billion,  an  increase  of  25.6%  from  2020.  The 

semiconductor industry’s revenue is expected to rise 8.8% in 2022 to 

US$601.5 billion.

•  Fabless companies tend to outperform the semiconductor industry, 

while 

integrated  device  manufacturers  (IDMs)  are 

increasingly 

outsourcing production to foundries to reduce costs and market risks. 

Both of these factors are beneficial for the foundry industry, which is 

expected to continue to outperform the overall semiconductor industry.

Differentiation and Competitive Advantage

and it is highly competitive in terms of both operational efficiency and 

cost. Taiwan’s position in the semiconductor industry adds to UMC’s 

competitiveness  when  combined  with  the  Company’s  technology 

advantages.

Favorable Factors for the Company’s Development

Considering the continuous growth of the IC industry, the position of the 

foundry sector within the industry, and the company’s competitiveness, 

the  favorable  factors  of  the  Company’s  long-term  development  are 

summarized as follows:

•  Global demand for pure-play wafer foundry services will continue 

to grow as the division between IC design and IC fabrication become 

increasingly distinct.

• 

IDMs are adopting the strategy of outsourcing production to foundries, 

which contributes to the growth of the foundry market.

•  Forming strategic alliances with major international companies and 

system companies to secure long-term stable orders.

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

business development capability can result in outstanding operational 

performance.

•  UMC is one of the most active foundries in the development of 12-

inch wafer manufacturing capabilities. The Company  has  12-inch 

operations in the Southern Taiwan Science Park, Taiwan; Singapore; 

Xiamen, China; and Mie, Japan. Future investment in 12-inch fabs will 

depend on customer needs and market trends.

• 

In response to the development trends of electronic products, UMC 

has developed specialty technologies including embedded memory, 

mixed signal, RF, MEMS sensor, and high voltage to meet customer 

demand for process technologies and to establish a leading position 

•  UMC is optimistic about the demand for chips in the 5G, AIoT, 

for UMC in technology development.

and computing markets. To capture growth from these markets, the 

•  UMC has built an industry-leading, dedicated IoT platform, providing 

Company has invested appropriately in R&D and capacity expansions. 

an ultra-low-power (ULP) process with extremely low leakage suitable 

The Company is also actively enhancing and developing its specialty 

for all kinds of hybrid process technologies. IoT chip designers can 

technology solutions, such as high voltage, embedded flash memory, 

integrate  various  process  schematics  to  the  customized  platform 

advanced packaging, RFSOI, and compound semiconductor GaN 

based on UMC’s low power consumption technology in order to meet 

in order to secure more product collaborations with customers. In 

the specific requirements to enter the IoT and wearable electronic 

addition,  UMC  is  establishing  an  open  technical  platform  with  its 

device markets.

packaging  and  testing  partners  to  provide  complete  solutions  for 

customers. 

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United Microelectronics Corporation  |  Annual Report 2021Overview of Market, Production, and Sales (Continue)

•  UMC's 28nm embedded high-voltage technology has entered volume 

complementary and complete advanced packaging platform on top of 

production for AMOLED display driver chips for customers to improve 

reliable 2.5D/3D IC solutions.

the power efficiency of mobile phones. The next-generation 22nm 

•  UMC has also developed a new semiconductor material process 

embedded  high-voltage  process  technology  is  currently  under 

for  high  voltage  and  high  frequent  applications  in  the  5G  era, 

development, which will enhance competitiveness of UMC and its 

including gallium arsenide (GaAs) and gallium nitride (GaN). These 

customers in this field.

developments  will  secure  UMC’s  position  in  third-generation 

• 

In addition to the original polysilicon oxynitride (Poly-Si ON) process, 

semiconductor materials and contribute to the Company’s future 

UMC's  28nm  high-K/metal  gate  process  has  also  successfully 

growth.

entered  volume  production.  The  process  has  also  obtained 

automotive-grade verification and required IP are now available on 

Unfavorable Factors for the Company’s Development

the platform.

•  COVID-19 has had a negative impact on the foundry industry, 

•  UMC's 22nm platform can further reduce cost and improve device 

including potential disruption to the global semiconductor supply 

performance.

chain.  UMC  is  strengthening  measures  against  the  pandemic  to 

•  UMC's 14nm FinFET process technology is 55% faster than its 28nm 

minimize adverse impact on the Company's operations.

technology, and the power consumption is also reduced by about 

•  Given the optimistic outlook for semiconductor demand, major 

50% compared to the 28nm process.

foundries  around  the  world  have  increased  capital  expenditures 

•  UMC's 28nm millimeter wave (mmWave) process technology 

to expand capacity. This may cause volatility in market supply and 

provides  advanced  solutions  for  automotive  radar,  5G  mobile 

demand dynamics in the future.

communication, medical, and industrial products.

•  Major powers are imposing sanctions to constrain competing 

•  UMC's RF Silicon-on-Insulator (RFSOI) technology meets the 

countries, which has led to restructuring of the supply chain. UMC will 

stringent requirements of the mobile phone applications including for 

continue to monitor the impact.

front-end RF switches, low-noise amplifiers, and provides first-class 

• 

In order to ensure semiconductor supply, many countries are 

performance.

•  UMC's 40nm embedded flash memory process platform combined 
with SST (Silicon Storage Technology) embedded SuperFlash® non-

planning to build domestic wafer fabrication capabilities by means 

of subsidies and policy incentives. UMC will continue to monitor the 

impact on the Company’s operations and form a response strategy.

volatile memory process technology platform reduces unit size by 

•  The foundry industry is facing pressure of higher capital expenditures 

more than 20% compared with the 55nm embedded flash memory 

as investments become increasingly expensive. Industry leaders may 

process platform. Applications include products such as SIM cards, 

use this as a competitive differentiation, and certain countries may 

financial transactions, automobiles, Internet of Things, and MCUs.

also use subsidies to create unfair competition. New fab equipment is 

•  UMC is developing a 28nm embedded flash memory process 

also expected to require longer lead times. Therefore, it is necessary 

platform, as well as 22nm magneto-resistive random access memory 

to be more cautious about any expansion plans going forward.

(MRAM) and 22nm resistive random access memory (RRAM) to 

provide  customers  with  more  suitable  28nm  and  below  process 

options.

•  The MEMS gas sensor jointly developed by UMC and customers 

has been successfully mass-produced and applied in smart home 

appliances and IoT products.

•  UMC provides advanced wafer process technologies such as 

2.5D (interposer)/3D (TSV)/Hybrid Bond. Combined with an open 

supply chain cooperation model, the Company can offer customers a 

117

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

Countermeasures

•  Strengthen the Company’s competitive advantages by increasing the 

proportion of high-end processes and optimizing overall product mix. 

•  Actively seek new opportunities to expand in 5G, IoT, and AI 

applications. 

•  Provide optimized solutions to assist customers to achieve low 

costs, high performance, and low power targets according to the 

characteristics of each IC product.         

•  Continue to provide customers with the best choice and differentiate 

the  Company  from  c ompetitors  by  strengthening  proc ess 

development, maintain stable high yields, and offer comprehensive 

solutions.

•  Diversify sales regions and product mix to minimize geopolitical 

impact.  In  addition  to  strong  business  from  China  and  the  U.S., 

UMC plans to expand business from other regions including Europe, 

Japan, and Korea.  

•  Strengthen marketing effectiveness and customer service to improve 

customer satisfaction.

•  Develop long-term partnerships with customers, help customers 

expand  their  market  share  by  providing  competitive  advanced 

processes and production capacity, and seek growth opportunities 

that enable growth for both the Company and its customers.

•  Take action to respond to changes in the market in order to minimize 

possible impact on the Company, such as expanding customer base 

and increase flexibility of capacity allocation.

•  Strengthen the Company’s competitiveness through continuous cost 

saving and efficiency enhancements.

•  Expand capacity through prudent investments, carefully considering 

the dynamics of UMC’s addressable markets and customer needs.

•  Seek to expand through flexible means including mergers and 

acquisitions  of  existing  fabs  or  strategic  alliances,  which  can 

help  the  Company  gain  market  share  and  better  serve  regional 

markets. 

118

United Microelectronics Corporation  |  Annual Report 2021Overview of Market, Production, and Sales (Continue)

Main Purposes and Production Processes 
of Key Products
Main Process Technologies and Corresponding Products

•  CMOS Logic: for fabricating chips that execute logic computing 

•  RFSOI process: for fabricating wireless front-end chips, such as 

functions,  such  as  programmable  gate  array,  multimedia  processor, 

wireless switch, tuner used by mobile phones, WLAN, and wireless 

and application processor chips.

base station.

•  Mixed-Signal: for fabricating chips which can simultaneously 

•  GaAs process: for power amplifier IC of handset and base station.

process analog/digital mixed signal, such as ICs for broadband access 

•  GaN process: for RF IC of power amplifier IC; low-noise amplifier 

communication and optical storage.

(LNA)  in  5G  base  station;  DC-DC  converter  in  high-power  portable 

•  RF CMOS: for fabricating high frequency wireless communication 

battery  charger  in  handset,  tablet,  and  notebook;  power  supply  of 

chips, such as ICs for cellphone RF transceiver, Wireless Local Area 

workstation  and  server;  and  DC-DC  converter  in  electric  vehicle 

Network (WLAN) and Bluetooth.

applications.

•  Embedded Memory: for fabricating integrated logic and memory chips 

•  3D IC package: for many applications in CIS image sensor, HPC, 5G, 

with  high  performance  and  low  power  consumption  features,  such 

datacenter, and automotive applications.

as chips for general purpose micro-controller, touch controller, smart 

card and micro-controller for automotive or IoT etc. 

Production and Fabrication Process

•  High Voltage: for fabricating driver ICs for LCD TV, cellphone, tablet, 

A  complete  IC  fabrication  process  can  be  divided  into  five  stages, 

AR/VR, e-paper screen driver IC, and power management IC.

including IC design, mask fabrication, wafer fabrication, packaging, and 

 •  CMOS Image Sensor: for fabricating CMOS image sensors used in 

testing.  UMC  is  dedicated  to  the  R&D  of  advanced  IC  processes  and 

digital camera, cellphone, notebook, optical mouse, and webcam.

specialty technologies in order to enable the IC designs of customers.

•  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.

119

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)
•  GlobalWafers  (Manufacturing  sites:  US,   
  Taiwan, Italy and Japan)
•  SUMCO Group (Manufacturing sites: Japan and  
  Taiwan)
•  Soitec Group(Manufacturing site: France)

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 convenes quarterly supplier management 
committee meetings to evaluate suppliers’ performance 
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

2021

In Thousand NT$

2020

Name

Supplier “ A”

Others

Net Purchase

Amount Percentage of 
Net Purchase

Relation to UMC

Amount Percentage of 
Net Purchase

Relation to UMC

4,888,380

41,595,697

46,484,077

11

89

100

None

5,329,822

41,767,109

47,096,931

11

89

100

None

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

21,935,208

191,075,810

213,011,018

10

90

100

2021

Relation to UMC

Amount

Percentage 
of Operating 
Revenues

None

20,380,814

156,440,100

176,820,914

12

88

100

In Thousand NT$

2020

Relation to UMC

None

Note:  As of the Annual Report printing date, if there is any financial data of the publicly listed company (or company with stock transactions in securities firm’s premises) certified or  

approved by CPA audit, it should be disclosed: None.

Reasons: The sales amount of customer “A” increased due to the increased demand of consumer product, and the change of sales percentages 

reflected the more diversified customer portfolio.

120

United Microelectronics Corporation  |  Annual Report 2021 
 
 
 
 
 
Production Figures

Segments

Unit Capacity

Production 
Quantity

Production Value 
(In Thousand NT$)

Capacity

Production 
Quantity

Production Value 
(In Thousand NT$)

2021

2020

9,453

9,880

136,522,911

9,188

8,893

133,991,069

Wafer 
Fabrication

In Thousands 
of 8-inch Wafer 
Equivalents

Sales Figures

Segments

Unit

Shipments

Amount 
(In Thousand NT$)

Shipments

Amount 
(In Thousand NT$)

2021

2020

Wafer 
Fabrication 

Others

Total

In Thousands 
of 8-inch Wafer 
Equivalents

Domestic

Export

Domestic

Export

Domestic

Export

3,842

6,021

79,092,769

125,501,630

-

-

79,092,769

125,501,630

Note: Net Sales.

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 2022 was gathered until February 24, 2022.

3,705

5,208

2022

11,679 

809 

4 

7,260 

19,752 

2022

38.2

2022

11.4

63,829,608

106,055,593

468

3, 226

63,830,076

106,058,819

2020

11,377 

795 

3 

7,211 

19,386 

2020

37.7

2020

11.2

2021

11,606 

813 

4 

7,318 

19,741 

2021

38.0

2021

11.4

2022

2021

2020

1.4

27.3

49.7

21.6

1.4 

27.3 

49.6 

21.7 

1.5

27.2

49.0

22.3

121

Operations Overview 
 
 
 
Environmental Expenditure Information

By  the  publication  date  of  the  2021  annual  report,  all  audits  on  UMC  by 

annual environment monitoring to track the overall emission of pollutants. 

environmental  protection  agencies  showed  results  in  compliance  with 

In addition, in response to RoHS (Restriction of Hazardous Substances), 

regulatory requirements with no environmental protection violations or any 

around NT$680,000 has been spent on continuous certification of the QC-

penalty or loss resulting from environmental pollution. 

080000 IECQ HSPM system, product inspection, and educational training. 

UMC  has  identified  environmental  risks  during  the  operational  process 

In the future, the Company’s primary environmental protection expenditures 

according 

to 

the  spirit  of 

international  environmental  management 

and items will include: 1. Costs of replacement, renewal, and upgrade of 

system (ISO 14001) standards, based on which corrective and preventive 

existing  pollution  prevention  equipment;  2.  Operational  costs  of  pollution 

measures can be continuously conducted, including equipment hardware 

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

improvement,  enhancement  of  personal  educational 

training,  and 

monitoring costs.

strengthening of operating system management. 

In  2021,  the  total  environmental  protection  related  expenditures  for  all 

UMC  fabs  have  exceeded  NT$3.55  billion.  The  environmental  related 

expenditures  include  investment  in  highly  efficient  pollution  prevention 

technology  and  preventive  equipment,  totaling  NT$1.84  billion.  The 

monthly  pollution  prevention  expenses  and  O&M  of  pollution  prevention 

equipment exceeded NT$106 million, while the monthly waste disposal cost 

exceeded NT$22.9 million. Meanwhile, NT$15 million has been spent on 

Labor Relations

UMC  has  consistently  valued  employee  benefits  and  welfare,  and  has 

UMC is committed to providing employees with a safe and friendly working 

actively  cultivated  talent,  implemented  labor  laws  and  regulations, 

environment. Through continuous efforts, UMC has received numerous 

protected  employee  rights  and  interests,  and  created  a  bright  and 

awards  from  the  Science  Park  Bureau  for  promoting  workplace  safety 

pleasant  working  environment.  UMC  complies  with  various  local  laws 

and health, labor relations, and the national excellence award for friendly 

and regulations, and strengthens employee awareness to prevent labor 

workplace. Among these awards, the Special Distinction Award was given 

disputes.  Through  channels  such  as  labor-management  meetings, 

by the Hsinchu Science Park Bureau for Advanced Workplace Equality 

divisional meetings, forums, suggestion boxes, grievance hotlines staffed 

and  Southern  Taiwan  Science  Park  Bureau  for  Advanced  Workplace 

by  complaint  specialists,  and  communication  management  units,  the 

Equality.

Company has achieved competent communication and effective problem-

solving.

At the same time, UMC also won various corporate sustainability awards in 

2021. For corporate sustainability, UMC ranked in the top 5% for corporate 

In  addition  to  effectively  maintaining  harmonious  labor  relations,  UMC 

self-governance,  and  has  won  the  Taiwan  Corporate  Sustainability 

respects and promotes international human rights by providing employees 

Platinum  Award,  Taiwan  Corporate  Sustainability  Awards  (TCSA) 

with  a  quality  employment  environment.  Moreover,  in  UMC  and  all  its 

“Sustainable  Model  Enterprise  Top10”,  and  Excellence  in  Corporate 

subsidiaries,  the  management  and  implementation  of  labor  relations 

Social Responsibility Award. In addition, UMC has been selected again 

such as employee welfare measures, in-service education, training and 

for the Dow Jones Sustainability Indices (DJSI)’s World Index, marking 

retirement  systems  are  planned  and  conducted  in  accordance  with  or 

the company’s 14th consecutive year of inclusion. Moreover, UMC earned 

above and beyond the requirements of law. UMC has also set up in-house 

the highest scores in the semiconductor industry in terms of total score, 

physicians to provide medical services and quality counseling services for 

environment, and society, demonstrating UMC's long-term investment in 

the physical and mental health needs of employees, thereby promoting 

sustainable operations.

harmonious labor relations.

122

United Microelectronics Corporation  |  Annual Report 2021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.

•  Language Training: Employee language proficiency is determined  

UMC’s human resource cultivation policies are tailored according to the 

through  language  testing.  Training  programs  targeting  specific  

career development needs of employees in their particular job type and 

learning needs are then provided accordingly to strengthen employee  

rank. The policies provide systematic training for all employees, such 

language skills and workplace competitiveness.

as new employee, technical, management, quality control and language 

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

courses. In addition, a wide range of learning resources such as online 

that  integrates  all  course  information,  training  systems  and  data  

learning courses, on the job training (OJT) and in-service training are 

  enquiries. The online platform enables employees to easily access  

also offered to provide all employees with a working environment that is 

  needed  information  for  planning  and  learning  without  schedule  

conducive for continuing development. In 2021, UMC conducted a total 

  constraints.

of 8,254 training sessions, totaling 15,154 hours of training, with 161,238 

•  On the Job Training: Each fab has an Education Committee to provide  

participants and total training expenses of NT$ 56,390,542.

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 in 2008 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.

123

Operations Overview 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 

UMC  also  holds  employee  health  in  high  regard,  and  plans  and 

competitive salaries and dividends, a comprehensive education and 

implements  benefits  in  accordance  with  or  above  and  beyond  the 

training  system,  diverse  benefits  and  a  safe  and  healthy  working 

requirements  of  the  law.  For  example,  UMC  complies  with  the  Act 

environment,  UMC  has  also  developed  a  comprehensive  employee 

of Gender Equality in Employment, the Regulations for Establishing 

welfare  system  in  accordance  with  local  laws  and  regulations  and 

Measures  of  Prevention,  Correction,  Complaint  and  Punishment  of 

regional needs.

Sexual Harassment at Workplace, and regulations for leave such as 

UMC provides a variety of welfare measures as follow:

personal,  sick,  maternity,  paternity,  menstrual,  family  care,  marital, 

•  Nutritionally  balanced  and  delicious  meals:  Each  fab  has  its  

bereavement, on official, occupational sickness, annual, parental, for 

independently operated cafeteria and a variety of meal options. By  

public welfare activities, nursing and nursing leave without pay.

  combining the cafeteria, cafe and convenience store into an integrated  

In particular, UMC is the first private enterprise in the country to promote 

  dining area, employees can enjoy healthy and balanced meals.

a 12-hour rotating shift for its direct labor. Further worth mentioning is 

•  Fitness Sports Center: UMC operates its own recreation center in the  

the Company’s comprehensive insurance system where from the day 

  Hsinchu science park, and Tainan Fab 12A has the UMC Park Activity  

of their employment, employees are provided with numerous insurance 

  Center, a multi-purpose sports center gym and the LM Dormitory  

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

  gym.  In  addition,  other  facilities  such  as  gyms  and  aerobics  

million group insurance, medical insurance and cancer insurance), the 

  classrooms are located in appropriate areas of UMC fabs to reflect the  

spouse and children of employees can enjoy life insurance, accident 

  concept of a healthy workplace.

insurance, medical insurance and cancer insurance, and their parents 

•  Welfare Events: The Welfare Committee routinely organizes events  

can enjoy accident and accidental medical insurance, thereby freeing 

(such as Family Day, art activities, movies, trips), and in coordination  

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

  with  company  celebrations,  organizes  inter-fab  competitions  to  

society.

  cultivate  team  unity.  At  the  same  time,  other  inter-divisional  and  

inter-fab activities are held during holidays to enhance employee work- 

life balance.

•  Club Recreation: UMC has 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 2021, 

UMC had a total of 30 clubs and about 2,347 participants.

Employee Health

UMC has a longstanding commitment to creating a workplace environment 

that is physically, mentally and spiritually healthy. UMC is convinced that 

lectures,  conference  promotion,  and  dissemination  of  promotional 

materials, so that employees can make appropriate pressure adjustments 

under the pressure of work and family, and maintain a good physical and 

mental state, returning to the normal track and performance of work as 

only  employees  who  are  physical  and  mentally  healthy  can  be  highly 

soon as possible.

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  employees’  families  in  the  hope  of  boosting 

employee work morale and improving the quality of their work.

While  valuing  the  employees’  health,  UMC  also  spares  no  effort  in 

their  mental  health  management.  Through  a  confidential  agreement 

mechanism with partner units, UMC provides benefits that are superior to 

laws and regulations, allowing employees to have free and professional 

psychological  counseling  services  six  times  a  year.  From  time  to  time, 

UMC  will  use  various  methods  such  as  online  platforms,  e-posters, 

In  2021,  UMC  adopted  health  promotion  activities  for  each  quarter, 

and  integrated  occupational  safety  and  health  laws  such  as  maternal 

protection,  overwork  prevention,  human  factors  engineering  and  other 

health related issues. 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 

124

United Microelectronics Corporation  |  Annual Report 2021 
 
 
 
 
Employee Benefits (Continue)

occupational chronic injury and disease, with regular hearing inspections 

purpose of early diagnosis and treatment can be achieved. It is hoped that 

and vision care programs that are superior to occupational safety laws to 

every employee can support each other and grow together with UMC in a 

achieve the goal of preventing occupational injuries. Moreover, as of 2020, 

healthy physical and mental state, and work together for UMC.

UMC’s IT divisions have integrated their existing systems to construct a 

customized personal Health Care System for employees. In addition to 

Labor Pension System

checking their own health check reports over the years, colleagues can 

In terms of labor pension system, UMC allocates the worker’s retirement 

also receive system notifications on the day of consultation with medical 

reserve funds to the Labor Pension Reserve Supervisory Committees in 

staff, and immediately read and confirm consultation related information, 

compliance with regulations, and processes the employee labor pension 

which improves the timeliness and care rate of the medical team’s care. 

payment in accordance with the Labor Standards Law. Since July 1, 2005, 

In addition to regulatory annual checkups, UMC also offers a variety of 

for employees who opt for the retirement system under the Labor Pension 

preventive screening and health promoting activities such as other cancer 

Act, 6% of their monthly salary is paid into their individual labor pension 

screening, flu vaccination, abdominal ultrasound and other out-of-pocket 

account to secure their rights and interests.

items so that employees can choose appropriate health checks according 

to their needs.

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 

Information Security Management

Information Security Risk Management

Established in 2003, the Enterprise Information Security Committee 

(EISC)  is  responsible  for  implementing  the  Company’s  information 

security management plan, establishing and maintaining the information 

security management system, and coordinating the formulation and 

compliance of related policies. The EISC is chaired by the President, 

and the Vice President S S Hong of the Digital organizational function 

Board of Directors

Enterprise Information Security Committee

Corporate Security Division

Policy and  Audit

Training and Awareness

Information Security Technology

Policy

People

Technology

Information Security Policy
UMC’s information security policy, which is deployed in the Company 

serves as the supervisor/Chief Information Security Officer (CISO). The 

and its subsidiaries, is based on the following principles: 1) To establish 

heads of all departments (including legal, human resources, research 

Information  Security  Management  rules  in  accordance  to  customer 

and  development,  engineering,  fab  operations)  are  members  of  the 

requirements,  2)  to  reach  a  consensus  that  information  security  is 

committee.  The  Corporate  Security  Division  was  also  formed  to  be 

everyone’s responsibility through full awareness, 3) to protect information 

responsible  for  information  security  and  physical  security  planning, 

confidentiality, integrity, availability for the Company and customers, 

related audit matters, and leading the operation of this committee.

and 4) to provide a safe production environment to ensure sustainable 

The EISC holds semiannual meetings to review  information security 

operation of the Company’s business. The major information security 

risks  and  measures  and  strategies  adopted  by  UMC,  ensuring  the 

objectives are aimed at antivirus, anti-intrusion and anti-leakage through 

adequacy, suitability and effectiveness of the Company’s information 

the  building  of  multiple  internal  controls  such  as  firewalls,  intrusion 

security  management  system.  The  committee  reports  to  the  board 

detection,  and  antivirus  systems  to  enhance  the  Company’s  ability 

of directors on the effectiveness of the information security strategy 

to defend against external attacks and to protect internal confidential 

annually. Independent Board Director Jyuo-Min Shyu, who has relevant 

information.

experience in information security, oversees and regularly reviews the 

UMC has established a complete Information Security Management 

Company’s information security and cyber security strategy. Mr. Shyu 

System  (ISMS),  from  systems  to  procedures,  to  reduce  information 

was the Minister of the Ministry of Science and Technology and the 

security threats to ensure compliance with customers’ requirements. 

President of Cloud Computing & IoT Association in Taiwan, and led 

UMC  also  conducts  continuous  improvement  through  the  Plan-Do-

multiple information security projects such as the National Information 

Check-Act (PDCA) cycle.

& Communication Security Taskforce as Vice Chairperson and the IoT 

In the “Plan” phase, the Company focuses on information security risk 

Information Security SIG (Special Interest Group) initiative.

management. The Company introduced ISO 27001 information security 

management system certification in 2007, so that information systems 

can be operated under standard management procedures to reduce 

125

Operations Overviewsecurity risk and production anomalies that may be caused by human 

certification  standards:  UMC  complies  with  information  security-

error.  Continuous  improvement  is  then  carried  out  through  annual 

related certifications and regulations such as ISO 27001, ISO 15408, 

recertification. In 2014, the Company decided to introduce ISO 15408 

ISO 22301, and Sarbanes-Oxley Act (SOX 404), serving as the basis 

Common Criteria certification. The certification is specifically designed 

for risk management and review. An enterprise risk management 

for secure production procedures not only in data receiving, processing 

committee has also been established to promote the standardization 

and  destroying,  but  also  higher  physical  access  control  request  for 

to reduce operational risks.

securing entire production line purposes. Please refer to the Company 

•  Risk control: UMC engages an international information security firm 

website for related certification information. https://www.umc.com/en/

to provide a third-party, objective assessment, which serves a basis 

Download/awards_and_certificates

for further improvement. The Company is insured against information 

In  the  “Do”  phase,  the  Company  builds  the  multi-layer  information 

security breaches as one of the methods to minimize potential losses 

security protection mechanism, continuously introduces new information 

in the event of an incident.

security risk control technology, uses smart/automated mechanisms to 

•  Education and training: To provide company-wide information security 

improve the efficiency of various information security incident detection 

education and training, and occasional phishing tests to increase 

and response processing, and strengthens information security and 

awareness.

cyber security protection procedures to protect of the Company’s assets.

•  Epidemic response: In response to the COVID-19 epidemic, the 

In the “Check” phase, the Company regularly monitors the effectiveness 

Company has strengthened the antivirus and information security 

of information security management indicators. A third party reviews and 

protection  measures  for  work-from-home  (WFH),  and  urged 

audits the above-mentioned management system annually. Well-known 

employees to avoid using public computers and internet for work 

information security vendors conduct penetration tests. All the aforesaid 

purposes. 

matters are made to ensure continuous improvement of information 

security management and defense capabilities.

In the “Act” phase, the Company focuses on review and continuous 

Information Security Management Resource
Information  security  is  important  for  the  Company’s  operations.  To 

improvement.  When  employees  and  contractors  violate  information 

manage information security, the Company has the following measures 

security related regulations and procedures, they will receive penalties 

and resources in place: 

accordingly. Information security education and training is implemented 

•  Dedicated manpower: The Corporate Security Division is responsible 

to enhance information security awareness.

for information security planning, technology deployment and related 

Information Security Management Plan
In order to achieve comprehensive information security protection, the 

audit matters to maintain and further strengthen information security.

•  Certification: UMC pass audits for ISO 27001 information security 

certification and ISO 15408 site certification with no major findings.

Company is implementing the following items: 

•  Customer satisfaction: No major information security incidents; no 

•  Strengthen information security defense: To conduct regular 

complaints about customer data leakages.

vulnerability scans and penetration tests, as well as reinforcements 

•  Education and training: All new employees completed information 

and repairs to reduce information security risks; to establish a network 

security training prior to onboarding; all employees have completed 

security incident contingency plan to assess the impact and loss 

two online information security training and assessments; a total of 

according to the severity of the incident, and to take necessary actions 

four phishing tests were carried out during the year.

to escalate the situation and recover from the incident.

•  Information security announcements: More than 10 announcements to 

•  Improve infor mation secur it y management proc edures: To 

promote important regulations and precautions for information security 

establish a corporate information security framework according to the 

protection.

National Institute of Standards and Technology standards and create 

•  Supply chain: All new contractors completed the education and 

corresponding metrics; to require employees to abide by information 

training about UMC’s information security regulations.

security regulations (such as strict control of mobile storage devices), 

•  Information security insurance: UMC has purchased information 

follow the standard operating procedures, and implement the Plan-

security  insurance  since  2019,  with  an  insured  amount  of  US$10 

Do-Check-Act (PDCA) cycle for continuous improvement.

million, as one of the measures to manage information security risks.

•  Enhance network, endpoint and application security: To improve the 

detection of irregularities and incident prevention, including protocols 

Loss from Major Information Security Incidents, 

such as application whitelisting and endpoint detection and response 

Potential Impact, and Corresponding Response 

(EDR);  to  optimize  the  security  of  the  overall  information  system 

network and to add the multi-factor authentication protection for host 

Measures
UMC had no major information security incidents in 2021. UMC had a 

privileged account login.

major WannaCry ransomware incident in 2016, causing 42 Servers/

•  Legal compliance and introduce international information security 

PCs/NBs used in the OA area to be infected. Fortunately, due to early 

126

United Microelectronics Corporation  |  Annual Report 2021detection and proper handling, it did not spread to computers used 

In short, the current security risks disclosed by UMC in this annual report 

for production lines. The Company immediately upgraded its antivirus 

should be supplemented with a well-known saying in the information 

software to a version with behavior-based detection capabilities, and 

security industry: “There is no such thing as 100% security.” Cyber 

strictly enforced information device management. It also required critical 

attack techniques are constantly evolving, and lags in defense systems 

patch updates for computers used in production lines to defend against 

expose the Company to risks. Successful defenses do not necessarily 

such worm-type viruses that may attack system vulnerabilities. Another 

mean  or  guarantee  that  anomalies  will  not  happen  in  the  future. 

countermeasure is to set the Access Control List (ACL) in production line 

Enterprises must keep pace with the times to face the ever-changing 

networks to grant necessary access between equipment tools, which 

and growing information security threat. Information security has a long 

can block viruses from spreading and limit their impact. In 2018, UMC 

way to go and requires continuous improvement. UMC will do its best to 

joined a SEMICON TAIWAN task force to develop equipment information 

manage information security in order to provide customers with a secure 

security standards, contributing to a more secure operating environment 

manufacturing environment and to maximize value for our shareholders.

forenterprises.

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

Sales

Contracted Party

Contract Period

Key Content

Restrictive 
Clause

UMC Group(USA)

Jan. 1, 2019~Dec. 31, 2024

Service

United Microelectronics (Europe)B.V.

Jan. 1, 2018~Dec. 31, 2022

Service

UMC Korea Co., Ltd.

Jan. 1, 2021~Dec. 31, 2025

Service

HeJian Technology (Suzhou) Co., Ltd. 

Jan. 1, 2020~Dec. 31, 2024

Service

United Semiconductor Japan Co., Ltd.  

Jan. 1, 2020~Dec. 31, 2024

Sales and related service for semiconductor 
products

None

Marketing support service for semiconductor 
products

None

Marketing support service for semiconductor 
products

None

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  over  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

Patent cross-license for 
semiconductor process, 
semiconductor device and 
semiconductor design.

None

127

Operations OverviewMajor Contracts (Continue)

Contract Type

Contracted Party

Contract Period

Key Content

Restrictive Clause

Technology 
license

HeJian Technology (Suzhou) 
Co., Ltd.  

Jul. 11, 2013~Jul. 10, 2028

UMC licensed its 0.13um 
process technology to HeJian 
Technology (Suzhou) Co., Ltd.

UMC signed and implemented the contract 
in accordance with the scope approved by 
the  Investment  Commission,  Ministry  of 
Economic Affairs.

Technology 
License

Mie Fujitsu Semiconductor 
Limited

From Aug. 29, 2014

Patent  
Cross-license

Avago Technologies 
International Sales Pte. 
Limited

Patent  
Cross-license

Katana Silicon 
Technologies, LLC

Sep. 29, 2018~Dec .31, 2023

From Nov. 5, 2019

License for specific patents.

None

UMC licensed its 40nm 
process technology to Mie 
Fujitsu Semiconductor 
Limited.

Patent cross-license for 
semiconductor device related 
patents.

None

None

Technology 
License

United Semiconductor 
(Xiamen) Co., Ltd.

Apr. 01, 2017~Mar. 31, 2022

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 

the 
UMC  signed  and 
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

Construction

Contract Type

Contracted Party

Contract Date

Key Content

Construction

Wholetech System Hitech Limited,
Organo Technology Co., Ltd., 
ECO Technical Services Co., Ltd.,
Asia IC Mic-process Inc.,
Nova Technology Corp.,
Allis Electric Co. Ltd.,
L&K Engineering Co. Ltd. and others.

From Jan., 2021

Construction

Xiamen Dobest Trading Co.,Ltd.,
L&K Engineering (Suzhou) Co., Ltd., 
Hengyuan Allis Electric Co., Ltd.,
Top Chemical (Shenzhen) Co., Ltd., and others.

Jan. 1,2021~
Dec. 31,2022

Construction

Suzhou Topco Construction Ltd.

August 1, 2021~ 
Jun. 30, 2022

Construction

L&K Engineering (Suzhou) Co., Ltd.

May 01, 2021~
March 31, 2022

Construction

China Construction First Building (Group) 
Corporation Limited

Feb. 01, 2021
~Dec. 31, 2021

For building the facilities of Fab 12A in the Southern 
Taiwan 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 NT$12.6 
billion.

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 
US$6.3 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 12.87 million (excluding 
tax).

HeJian Technology (Suzhou) Co., Ltd. entered into 
construction contracts with the vendors listed in 
the second column for expanding HeJian’s 85K 
manufacture capacity. The total contracted amount 
exceeded RMB 108.8 million (excluding tax).

HeJian Technology (Suzhou) Co., Ltd. entered 
into construction contracts with the vendors listed 
in the second column for HeJian new ammonia 
nitrogen & nitrogen total wastewater treatment room 
construction. The total contracted amount exceeded 
RMB 13.87 million (excluding tax).

128

Restrictive 
Clause

None

None

None

None

None

United Microelectronics Corporation  |  Annual Report 2021Review of Financial Position,  
Operating Results, Risk Management

130  Financial Position 
131  Financial Performance
132  Cash Flow 
132  Major Capital Expenditures from Recent Years and Impact on 

Company’s Finance and Business

132  Main Reasons and Improvement Plans for Recent Annual  

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

133  Risk Management and Evaluation 
144  Other Necessary Supplements

129

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

2021

233,273,433

129,941,703

3,644,933

97,566,702

464,426,771

105,453,729

77,770,158

183,223,887

124,832,476

47,898,093

115,375,789

281,202,884

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

In Thousand NT$

Differences

Differences(%)

68,967,522

(2,832,960)

(1,232,980)

22,008,814

86,910,396

27,210,203  

14,270,411

41,480,614

608,461

4,686,879

35,199,429

45,429,782

42

(2)

(25)

29

23

35 

22

29

0

11

44

19

Analysis of deviation of over 20% between 2021 and 2020:
1. Current assets:

Due to the increase in cash and cash equivalents and time deposits over three months to a year.

2. Intangible assets:

Due to the amortization of patents and technology license fees, software and other intangible assets.

3. Other assets:

Due to the increase in financial assets at fair value through profit or loss and other comprehensive income caused by stock market volatility and 
increase in investments accounted for under the equity method caused by recognized in share of profit.

4. Current liabilities:

Due to the reclassification of long-term investment payable to current liabilities and the issuance of unsecured exchangeable bonds payable for the 
period.

5. Non-current liabilities:

Due to the increase in guarantee deposits, bonds payable and long-term loans, which are partially offset by the reclassification of long-term 
investment payable to current liabilities.

6. Retained earnings:

Due to the increase in net income.

130

United Microelectronics Corporation  |  Annual Report 2021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

Net income

      2021

213,011,018

(140,961,389)

72,049,629  

(25,590,174)

5,226,831  

51,686,286  

10,117,118  

61,803,404  

(6,691,394)

55,112,010  

      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 

In Thousand NT$

Differences Differences (%)

36,190,104 

(3,137,576)

33,052,528 

(2,346,590)

(1,027,059)

29,678,879 

4,198,346 

33,877,225 

(5,945,627)

27,931,598 

20 

2 

85 

10 

(16) 

135 

71 

121 

797

103 

Analysis of deviation of over 20% between 2021 and 2020:
1. Operating revenues:

Due to strong demand and price increase, while partially offset by the impact of the appreciation of the Taiwan dollar against the US dollar.

2. Gross profit:

Due to strong demand, price increase as well as capacity utilization rate increase, while partially offset by the impact of the appreciation of the Taiwan 
dollar against the US dollar.

3. Non-operating income and expenses:

Due to the increase in share of profit of associates and joint ventures.

4. Income tax expense:

Due to the increase in operating income.

131

Review of Financial Position, Operating Results, Risk ManagementCash Flow

Analysis of Cash Flow for the Year Ended December 31, 2021

In Thousand NT$

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

94,048,036

90,351,891

(51,777,796)

132,622,131

-

-

Note:  Net cash flow from investing and financing activities includes the effect of exchange rate changes of (2,104,503).

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 proceeding from 
bonds issued and increase in guarantee deposits, which are partially 
offset by distribution of cash dividends.

4. Remedial measures for cash flow shortfalls: 
  Not applicable.

Analysis of Cash Flow in the Coming Year

In Thousand NT$

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

132,622,131

106,457,390

(130,248,890)

108,830,631

-

-

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

Total Amount
(Up To 2021)

Capital Expenditures Plan

In Thousand NT$

2021

2020

Completion 
Status
(Up To 2021)

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

Completed

73,434,154

47,575,148

25,859,006

Completed

4,789,831

2,544,369

2,245,462

Expected Benefit from Capital Expenditures
Based on aforementioned capital expenditures, in 2021 the ratio of production capacity from high-end processes of 40nm or below is above 31%, of 
which the production capacity for high-end 28nm or below has grown by 23% 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, 2021, UMC and its subsidiaries 
have invested about US$1.51 billion into United Semiconductor (Xiamen) 

132

Co.,  Ltd.’s  12-inch  fab  for  28-90nm  wafer  service  to  pursue  further 
growth for the Company. 
UMC's investment policies are based on long-term strategic investments 
that match the Company's operations and development.

United Microelectronics Corporation  |  Annual Report 2021Risk Management and Evaluation

Enterprise Risk Management Policies

Through risk management methods and organizations, UMC effectively 
prevents  and  controls  enterprise 
identifies  opportunities; 
comprehensively  implements  them  in  daily  operations;  shapes  and 
deepens  risk  culture;  and  establishes  complete  and  transparent  risk 
communication with all stakeholders to maintain steady operations.

risks, 

Enterprise Risk Management Structure and 
Operation

BOD/Chairman

Audit Committee

ESG Steering Committee

Enterprise Risk 
Management Committee

Internal Audit & Control

Effectively Prevent and 
Control Enterprise 
Risks

Reduce corporate risk 
and achieve corporate 
goals

Comprehensively 
Implement

Shape and Deepen 
The Risk Culture

Complete 
Communication

Comprehensive risk 
management and 
implementation of 
operational procedures

Improved risk 
awareness and 
perception throughout 
the company

Complete and 
transparent risk 
communication, 
including shareholders, 
empliyees and 
stakeholders

Divisions 

Under  the  guidance  of  the  enterprise  risk  management  policy,  the 
Enterprise Risk Management Committee is responsible for coordinating 
relevant divisions to identify internal and external risks for the Company. 
The Committee reviews the risk items related to but not limited to strategy, 
operations, finance, hazards, assesses the likelihood of occurrence and 
severity,  defines  the  priority  and  risk  level  of  risk  items,  and  initiates 
response  plans  for  major  risk  items.  Periodic  review  of  risk  items  are 
conducted to identify changes in risk level and to ensure the effectiveness 
of risk management plans and related control operations, and to grasp 
the  business  opportunities  associated  with  risks  to  formulate  company 
development strategies.

The Enterprise Risk Management Committee reports to the ESG Steering 
Committee on a quarterly basis to ensure alignment with the company's 
sustainability  strategy  and  reports  to  the  Board  of  Directors  at  least 
once a year to ensure alignment with the risk management policies, and 
implementation and effectiveness of risk management measures. UMC 
also incorporates internal audit and internal control functions to ensure 
that the risks associated with operations are 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
In 2022, the share of R&D expenses to operating revenue is expected to be 5% to 8%, which will be subject to global 
market and the Company's actual operation conditions.

Major R&D Projects in the Future

Current Progress

Latest 
Annual 
Project

Time of Mass 
Production

Key Success Factors for Future R&D

14nm process 
technology

The  14nm  FinFET  platform  compact  process  (14FFC) 
successfully entered mass production and introduced into 
5G and netcom applications. 

2020

22nm process 
technology

22&28nm Image 
Signal Processor  
technology

For  22nm  ultra-low  power/ultra-low  leakage  technology 
development,  the  mass  production  milestone  of  customer 
DTV chips has been reached in 2020. The successful mass 
production  of  various  22nm  products  has  attracted  more 
than 10 customers to adopt the 22nm technology platform 
for product verification and mass production planning.

The 28HPC+ customized process technology was applied 
to  the  image  signal  processor  (ISP)  and  successfully 
introduced  into  higher-end  108Mp  products  and  entered 
mass  production.  The  200Mp  products  will  be  introduced 
for trial production in 2022. 22nm ISP process technology 
is  in  development  and  its  component  models  and  design 
specifications have been established. 

2021

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 standards.

•  Customer circuit design verification and 
product yield qualification for mass 
production.

133

Review of Financial Position, Operating Results, Risk ManagementCurrent Progress

Time of Mass 
Production

Key Success Factors for Future R&D

Risk Management and Evaluation (Continue)

Latest 
Annual 
Project

Display Driver 
IC and Power 
Management 
Process 
Technologies

Non-Volatile 
Memory Process 
Technologies

RFSOI Process 
Technologies

Low temperature polycrystalline oxide panel (LTPO OLED) 
drive chip  products using 28nm high voltage 27V process 
technology  have  entered  mass  production.  The  power 
management  chip  (PMIC)  of  the  0.11  micron  BCD  power 
technology  platform  has  completed 
integrated  circuit 
product  verification  and  successfully  entered  mass 
production.

resistive 

The  40nm  non-volatile  memory  eFlash  process  platform 
has  completed  vehicle  verification  and  entered  mass 
production.  40nm 
random  access  memory 
(ReRAM)  enters  mass  production.  22nm  ReRAM  and 
eMRAM  are  developed  on  schedule.  High  density  1G 
HDMRAM has been successfully verified and expected to 
enter mass production in 2022.

UMC’s RFSOI technologies satisfy the strict requirements 
of all 4G/5G mobile phones for RF switches and the 90nm 
RFSOI process technology has been mass-produced. The 
55nm  RFSOI  process,  meeting  the  5G/sub-6GHz  market 
demand, has also entered mass production. UMC continues 
to  develop  the  40nm  RFSOI  technology  platform  to  catch 
subsequent 5G/mmWave growth trends.

CMOS Image 
Sensor (CIS) and 
MEMS Process 
Technologies

UMC’s  65nm  process  CIS  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.

Compound 
Semiconductors

to  develop 

the  Gallium  Arsenide 
UMC  continues 
pHEMT  technologies  for  applications  on  the  5G  mobile 
communication  mmWave 
station/low-
orbit  satellite  receiver,  and  also  actively  invests  in  the 
development  of  Power  GaN  and  RF  GaN  technology 
platforms.

band 

base 

2022

2022

2021

2021

2023

• 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.
• Completing IP verification on time.
• Quality verification is in compliance with  
  customer requirements.

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

• Customer circuit design verification and 
product yield qualification to meet mass 
production standards.

• Cooperating with customers to create a  
  win-win situation.
• Customer circuit design verification.

Wafer-on-wafer 
hybrid bonding

3DIC  wafer-on-wafer  (WoW)  hybrid-bonding  technology 
has been combined with an open supply chain cooperation 
model  to  provide  customers  with  reliable  and  flexible  3D 
package solutions.

2023

• Cooperating with customers to create a  
  win-win situation.
• Customer circuit design verification.

Note: The projects above account for around 60% to 75% of the total annual R&D expenses in the year.

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 IDM and fabless, to develop key 
process technologies through technology licensing. UMC will also work 
with suppliers of photomask, packaging, equipment, material, and EDA 
to speed up the market launch schedule in order to fulfill the Company’s 
promise to provide customers with R&D of key processes. 
In terms of independent R&D capabilities, UMC’s focus is on recruitment 
and cultivation of R&D 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. 
Meanwhile, the 14FFC platform process also passed customer product 
HTOL (High Temperature Operating Life) reliability qualification and 

entered 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 schedule for production. 
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 
(22ULP/22ULL) shrink process technology can be provided as a planar 
process technology solution with lower cost and better cost efficiency for 
customers. UMC 22ULP and 22ULL technology platforms have reached 
the milestone of mass production, suitable to be applied on Internet of 
Things (IoT), industrial applications, consumer electronics, and wearable 
(Mobile) products, and also are developed for the relevant specifications 
on automotive applications. UMC’s 28nm high-performance computing 
process  (28HPC+)  customized  for  image  signal  processor  (ISP)  for 
higher-end 108Mp products have been succeed for mass production, 
and the 200Mp products will be soon introduced for trial production. 

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22nm ISP technology is in development and on schedule. Besides, 
UMC is ready to provide 28nm and 22nm millimeter wave (mmWave) 
solutions  for  the  applications  including  mobile  devices,  automotive 
electronics (AUTO), and Internet of Things products. UMC’s 28nm high-
voltage process has a market share of 85%, and is widely used in high-
end active matrix organic light-emitting diode (AMOLED) display driver 
ICs. UMC continues to develop 22nm embedded high-voltage process. 
The power management chip (PMIC) of the 0.11 micron power integrated 
circuit BCD (Bipolar-CMOS-DMOS) technology platform has completed 
product verification and successfully entered mass production.
The 40nm eflash developed in cooperation with a major automotive 
electronics manufacturer has completed the reliability verification of 
automotive electronics and has been introduced into mass production. 
The self-developed 40nm non-volatile memory process platform has 
also entered mass production. The 28nm embedded super flash memory 
(ESF4) has achieved a stable yield rate and is in reliability verification, 
which will meet the needs of the Internet of Things (IoT). 40nm Resistive 
Random Access Memory (ReRAM) has entered mass production, while 
22nm ReRAM and 22nm eMRAM (Embedded Magnetoresistive Random 
Access Memory) process platforms have been developed on schedule 
to provide the Intelligent Internet of Things (AIoT) applications. The 
22nm high-density 1G HDMRAM product has been successfully verified 
and the product can be applied to aerospace/LEO related products. 
The  55nm  RFSOI  (Radio  Frequency  Silicon  on  Insulator)  process 
has  entered  mass  production,  and  met  the  5G  sub-6  GHz  market 
requirements. At the same time, the 40nm RFSOI technology platform 
is being continuously developed to catch the subsequent 5G/mmWave 
growth trends.
Compound  semiconductor  gallium  arsenide  (GaAs)  components, 
combined with the SAW filte integration solutions for existing HBT power 
amplifiers and existing RFCMOS Switch and LNA technologies, provide 
mobile phone radio frequency front-end module (RF-FEM) integration 
solutions. Gallium arsenide pHEMT will continue to develop key chip 
technology  suitable  for  the  5G  mobile  communications  mmWave 
frequency base station/low-orbit satellite receiver. Moreover, in terms 
of  the  wide  band  gap  component  technology,  UMC  also  actively 
invests to develop gallium nitride power components (Power GaN) and 
microwave components (RF GaN) technology platforms to deploy high-
efficiency power components and 5G/low-orbit satellite communications 
components  markets.  UMC’s  3D  (WoW  hybrid-bonding)  packaging 
technology, combined with an open cooperation model of supply chain, 
provides customers with reliable and flexible solutions. In the meanwhile, 
as  to  the  application  of  radio  frequency  components,  3D  stacking 
technology for downsizing by 40% has completed product verification. 

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, 2021, if the interest rate 
increases/decreases by 10 basis points, the Company’s net profit for 
2021 will decrease/increase by NT$38,549 thousand. In order to reduce 
interest rate risk, the Company continues to monitor changes in market 
interest rates. Besides bank loans, the Company also utilizes various 
financing instruments. To support operating needs, the Company will 
take advantage of long-term debts with favorable fixed rates depending 
on market conditions.
Foreign Exchange Rate Fluctuation

The Company’s exposure to the risk of changes in foreign exchange 
rates  relates  primarily  to  the  Company’s  operating  activities  (when 
revenue or expense is denominated in a different currency from the 
Company’s functional currency) and the Company’s net investments in 
foreign subsidiaries. Based on a risk analysis of the assets and liabilities 
denominated in foreign currencies as of December 31, 2021, when the 
NT dollar strengthens/weakens by 10 percent against the US dollar, the 
Company’s net profit for 2021 will decrease/increase by NT$1,103,812 
thousand. On the other hand, when the Chinese Yuan strengthens/
weakens by 10 percent against the US dollar, the Company’s net profit 
for 2021 will increase/decrease by NT$375,248 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 
NT$434,305 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 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 2021: Due to the impacts of the COVID-19 in 2021, 
the global supply chain delay, rising oil prices, and monetary policies 
around the world, the annual growth rate of Taiwan's consumer price 
index  (CPI)  in  2021  (2.62%)  was  higher  than  the  previous  year,  but 
Taiwan consumer price index (CPI) stays around 105.4%. It will have no 
impact on the Company's revenue results.

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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

adoption of our process technologies and grow UMC’s market share to 
drive business expansion. UMC will strive to enhance its operations and 
preserve the best interests of its shareholders.

Financial  Impact  of  Information  Security 
Risks  and  Cor r esponding  Response 
Measures

According  to  the  Global  Risks  Report  2021  issued  by  the  World 
Economic  Forum,  cybersecurity  failure  is  among  the  top  risks. 
Insufficient  defense  against  cyber-attacks  may  not  only  expose  the 
Company to the risks of data leakage and ransom threats, but may also 
interrupt the production system, causing serious operating losses or 
even damaging the reputation of the Company. Many international and 
well-known companies have encountered serious losses due to the 
ransomware attacks. Facing the ever-changing and diverse external 
threats, it is critical for the Company to strengthen corporate information 
security with available resources. 
In 2018, UMC established the Enterprise Risk Management Committee 
to  coordinate  collaborate  with  key  organizations  in  the  Company’s 
risk management and control to manage internal and external risks. 
According to the Enterprise Risk Management Committee management 
procedure, the Company assesses the risk level of information security 
items, takes response actions, and regularly reviews effectiveness of 
those actions.
UMC has a complete, multi-layer defense mechanism including firewall, 
intrusion  detection,  antivirus  system,  vulnerability  scanning,  patch 
management procedure and penetration testing. In 2019, UMC engaged 
an international professional security company to assess overall security 
and used the inspection results as a basis for further improvement. The 
summary of the information security assessment is as follows: “UMC has 
an information security management system in place. According to this 
system and control measures, conventional malicious programs such as 
attacks by viruses, Trojans, worms, and external hackers will not be able 
to easily damage UMC’s information system.”

Informational security threats are intensifying and have caused business 
interruptions for companies in Taiwan and around the world. Even if an 
enterprise has adequate defense in place, there is no guarantee that it 
will not become the target of an attack. UMC has purchased information 
security  insurance  since  2019  as  one  of  the  measures  to  mitigate 
information  security  risks.  This  insurance  has  been  in  effect  since 
January 2019 with a retroactive option that can trace back stealth threats 
existing in the enterprise before the effective implementation date. The 
insurance amount is US$10 million and covers all UMC fabs in Taiwan, 
Singapore and Japan.

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  to  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 
the 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 has 
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  of  Changes  in  Technology  and  the 
Industry on the Company’s Financial Results 
and Corresponding Contingency Plans

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 NT$12.9 billion in research and development in 2021. 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  US$1.8 
billion in capital expenditure during 2021. Looking into 2022, UMC will 
continue to appropriately invest in 28nm capacity to fulfill growing wafer 
demand, optimize product mix, and penetrate emerging applications. 
The Company believes that these efforts will lead to higher customer 

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The Impact of Corporate Image Change on 
Corporate Crisis Management and Response 
Measures

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.

The  Company's  business  philosophy  is  based  on  the  Company's 
sustainable  operation  and  long-term  partnership  with  customers  and 
social groups. The Company regularly holds shareholders' meetings and 
legal person briefings to increase financial transparency. The Company 
also  actively  participates  in  community  and  public  welfare  activities, 
and  effectively  fulfills  its  responsibility  as  a  member  of  society.  For  a 
variety of different emergencies, there are special personnel responsible 
for  planning  and  responding  to  minimize  the  uncertainty  of  business 
operations.

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

With  a  global  customer  base  and  given  the  Company’s  business 
philosophy of continuously improving the 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 the 
Company can take advantage of the increased economies of scale and 
operational efficiency through mergers and acquisitions (M&A). 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  United  Semiconductor  Japan  Co., 
Ltd.. 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. Through these expansions, UMC can strengthen its 
global operational capabilities and offer customers 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 M&A involves integration and 
compliance with the local regulations, and whether 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 taking advantage of operational synergies. At the same time, the 
company considers corporate sustainability in its business strategies 
and seeks to act in the best interests of all shareholders. Therefore, 
UMC strives to meet the requirements of regulators when executing 
equity purchases or M&A plans. In addition to careful planning and 
consultation in advance, the company also consults professionals from 
the respective countries about the local merger mechanism. To facilitate 
operational  efficiency,  the  company  recognizes  cultural  differences 
and quickly establishes a communication channel to build trust with 

Risk  of  Excess  Capacity  from  Fluctuating 
Economic Conditions

The  Company  increases  its  production  capabilities  through  fab 
expansion  in  order  to  accommodate  more  customer  orders,  thus 
providing the means to increase revenue, profits and market share. 
When production capacity reaches economies of scale, manufacturing 
costs can be dramatically reduced. However, the significant potential 
for fluctuations in the semiconductor industry economic cycle creates 
financial risk, as any excess capacity due to softening demand still must 
be accounted for under depreciation of plants and equipment. This risk 
would be considered a burden to the Company.
The Company’s capacity expansion is the result of 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, 
comprising of members from the Company’s independent directors and 
non-executive directors. The Committee’s goals 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.”

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Risks of Sales Concentration and 
Response Measures

UMC has developed steady partnerships with many leading customers, 
and the Company ensure long-term growth by combining the strengths 
of UMC and of these customers. In 2021, UMC’s top ten customers 
accounted for approximately 55% of UMC’s total operating revenues. 
The Company will continue to develop both advanced and specialty 
technologies, and provide customized solutions for specific products 
and applications to meet customers’ requirements and expand customer 
base. Through continuous product mix optimization and enhancing the 
flexibility of capacity allocation, the Company can lessen the impact of 
fluctuations in the global economy and mitigate risks.

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 the Company’s corporate culture, 
be qualified to assume professional duties, and be able to execute the 
Company’s policy.

138

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. UMC appealed against the sentence. On November 26, 
2021, UMC and MICRON announced a settlement agreement between 
the two companies for all legal proceedings worldwide (the “Settlement 
Agreement”). Accordingly, MICRON submitted a motion to withdraw the 
case. On January 27, 2022, the Intellectual Property and Commercial 
Court announced its ruling of this case and UMC was sentenced to a 
fine of NT$20 million, subject to a two-year term of probation.
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. In accordance 
with the Settlement Agreement, the court issued a dismissal of the case 
with prejudice in January 2022.
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 question, 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. In accordance with the Settlement Agreement, UMC 
submitted a motion to withdraw the case, and the motion is currently 
pending.
The  amounts  of  aforementioned  fine  from  ruling  of  the  Intellectual 
Property and Commercial Court and the worldwide settlement between 
UMC and MICRON were recorded in non-operating other losses and 
have no material financial and operational effect on UMC’s business for 
the years presented.
On March 14, 2019, a putative class action complaint was filed in the 
United  States  District  Court  for  the  Southern  District  of  New  York 
against the Company and certain of its officers and/or directors, alleging 
violations of Section 10(b) of the Securities Exchange Act and Rule 10b-
5 thereunder, arising out of an alleged scheme to misappropriate trade 
secrets. On May 3, 2021, the court approved the settlement reached 
between the plaintiffs and the defendants and UMC paid a settlement 
amount  of  US$3  million  to  be  allocated  to  the  class  plaintiffs  and 
reimbursement of legal fees of class plaintiffs. The settlement has been 
recorded in non-operating other losses and has no material financial and 
operational effect on UMC’s business.

United Microelectronics Corporation  |  Annual Report 2021Risk Management and Evaluation (Continue)

Risks Relevant to Intellectual Property

Risk of Climate Change

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

UMC  actively  focuses  on  the  new  business  operational  concern  of 
climate change. UMC has developed the UMC Climate Change Risk 
Assessment methodology based on the Fifth Assessment Report (AR5), 
which is published by the Intergovernmental Panel on Climate Change 
(IPCC),  and  the  government’s  downscaling  scenario  projection  for 
identifying potential physical hazards under climate change situation, 
and the ISO 14090: Adaptation to Climate Change and the assessment 
procedure in the UK Climate Impact Programme (UKCIP). The Climate 
Change Risk and Opportunity Assessment Team conducts assessments 
every year, which is based on the aspects such as policies, regulations, 
transition of market and technology, reputation and physical risk, and 
the results are submitted to the Corporate Sustainability Committee for 
approval. The details of assessment results and responding measures 
are  disclosed  in  Sustainability  Report.  The  global  carbon  risk  will 
not only bring rising manufacturing and transportation costs due to 
increased prices for petroleum and electricity, but will also directly impact 
the economy and the operation of enterprises from the perspectives of 
energy tax, carbon tax, carbon border tax, and stringent environmental 
laws and regulations, and lead to additional investment costs. UMC 
has actively implemented measures in response to mitigate the impact 
caused by climate change. For example, to reduce the emissions from 
fluorinated greenhouse gases used in wafer foundries, UMC was the 
first in the industry to complete a two-phase fluorinated greenhouse 
gases replacement plan for all its fabs (by replacing C2F6 with C3F8 and 
C3F8 with C4F8) in order to greatly reduce greenhouse gas emission 
and the impact of global warming. In the meantime, UMC supported the 
EPA early reduction project and acquired a carbon reduction allowance, 
thus successfully turning risk into competitiveness. Facing the issues of 
global climate change and the management of energy and greenhouse 
gases,  UMC  has  been  actively  drafting  environmental  protection 
objectives through various stages and aspects and developed specific 
implementation plans for gradual promotion.

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. 
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.

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Review of Financial Position, Operating Results, Risk Management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.

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, including EQE (EQE International Inc.) and EQVEC 
(EQV ENGINEERING CONSULTANTS, LLC) 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  Drought  and  Flood  Caused  by  Climate 
Change

UMC  has  always  cared  about  the  possible  impacts  from  extreme 
weather. The Company has completed flood potential simulations for Fab 
12A in Taiwan since 2014, and added flood gates at low-lying entrances 
and exits, planed alternative transportation routes, etc. to strengthen 
the ability to withstand flooding. UMC was also the first in this industry 
to develop an early warning system to detect water shortage that is 
integrated with quarterly long-term weather forecast data to provide 
the prediction of water conditions in the coming three months so that 
water saving measures can be conducted, and water truck contract and 
rehearsals can be prepared in advance to reduce any risk to operations. 
In  the  future,  UMC  continues  to  evaluate  various  solutions  such  as 
reclaimed water and recycled water to reduce water risks and strengthen 
operational resilience.

Risk Management and Evaluation (Continue)

Energy  Consumption  Policies  Affect  the  Enterprises’ 
Development and Bring Unstable Power Supply Risk

In  order  to  reduce  the  carbon  emission,  governments  around  the 
world have taken various proactive actions to constraint or strengthen 
energy  conservation  and  carbon  reduction  effort  of  enterprise.  In 
2021,  Taiwan  government  has  required  major  consumers  (with  a 
contracted capacity more than 5,000 kw) to reach 10% of their obligatory 
amount  of  renewable  energy  for  self-use  before  2025.  In  response 
to the operational risk, UMC has planned various actions to meet the 
requirement, including setting up renewable energy power generation 
facilities, installing energy storage system, purchasing renewable energy 
voucher, etc. It is estimated that the annual amortization will not exceed 
NT$200 million in the next 20 years. Besides, Singapore government has 
imposed carbon tax since 2020, and announced the carbon price per ton 
will be raised gradually. (The price in Singapore is SGD 5 currently, and 
it will be gradually raised up to SGD 50~80 in 2030.) This will increase 
UMC’s investment cost and bring financial impact. China government 
also implemented a dual energy consumption control and power rational 
policy in 2021. Although UMC’s mainland plants have not been directly 
affected,  we  will  continue  to  pay  attention  to  internal  and  external 
demand,  regulation  development,  and  policy  changes,  and  improve 
communication with local governments to monitor risks and take early 
response.
In addition, UMC has considered the risk of failure on government’s 
antique power generators during the peak power consumption period; it 
might lead to insufficient capacity of backup power, resulting in voltage 
drops and power outages. In order to ensure uninterrupted operation 
and production, UMC has installed diesel generators in the plants and 
increased the proportion of UPS configuration in important facilities 
and equipment. In the meantime, UMC plans to replace existing UPS 
lead-acid batteries with lithium batteries year by year to improve supply 
stability. Moreover, UMC has also established a diesel safety inventory 
monitor mechanism to ensure availability. For details, please refer to the 
contents of UMC 2021 Sustainability Report.

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 

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United Microelectronics Corporation  |  Annual Report 2021Risk Management and Evaluation (Continue)

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 since 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 20 items 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. Each and every one of UMC fabs 
has developed its BCP workbook (Business Continuity Plan workbook) 
since 1999. Hsinchu headquarters, Fab12A, and Fab12i passed ISO 
22301:2012 verification sequentially since 2013, and became a leader 
in the semiconductor industry to receive ISO 22301 Business Continuity 
Management system verification. The transition of ISO 22301:2019 new 
version verification was also completed in 2021, and it will be promoted 
to other production fabs continuously in the future to build organization 
resilience and protect the utmost rights and interest of stakeholders.

UMC Business Continuity Policy and Objectives: 

Policy
•  UMC aims to provide customers with more excellent and continuous 

service.

•  UMC carries out business continuity system operation and resources 

integration to ensure the system’s effectiveness.

•  UMC reviews and improves continuously to strengthen resilience of 
responding to various disasters before/during/after the disruption 
from business impact to ensure the utmost rights and interests of 
customers and stakeholders.

Objectives
•  Personnel safety is the top business continuity objective.
•  UMC achieves its business continuity objective by reducing 
operational impact and shortening recovery time through thorough 
risk assessment and the establishment of preparedness as well as 
response capabilities to various disasters.

•  UMC follows ISO 22301 management system standard and executes 
BCP drill on a regular basis to review the effectiveness of business 
continuity plan and make continuous improvements.

Impact of Geopolitical Developments 
on the Company’s Investments and 
Operations and Countermeasures.

Rising political or economic tensions between China and the United 
States have led to sanction measures and triggered a trade war. U.S.-
China antagonism has also affected cross-strait relations, and the recent 
rise in tensions has increased the uncertainty of future operations and 
investments. Measures taken by governments include tariff increases, 
embargoes,  policy  interventions,  and  government  subsidies,  which 
may  impact  the  Company’s  investments  and  operations,  and  may 
also affect revenue, delivery time, goodwill, and investment plans. For 
example: a sharp increase in tariffs may drive up end-market prices, 
thereby  reducing  demand  and  UMC’s  customer  orders;  the  United 
States Export Control Act regulates exports to certain countries if the 
content originating from the U.S. exceeds a certain ratio of the product, 
which may affect UMC’s direct or indirect supply to specific customers; 
restrictions on the export of high-tech materials or equipment may affect 
UMC’s production and capacity expansion plans, which may disrupt 
shipments  and  damage  the  Company’s  goodwill;  political  tensions 
across the Taiwan Strait may affect shipments from Chinese suppliers 
and  Chinese  customer  orders,  while  investment  restrictions  and 
regulatory changes may affect the company’s strategy, operations, and 
management.

UMC’s countermeasures include: 

1. Diversifying customer base and product portfolio. In addition to 
existing business in North America and Asia Pacific, UMC is planning 
to further expand its footprint in Europe, Japan, and other regions. 
The company is also actively seeking opportunities in 5G, IoT, and 
AI  applications,  on  top  of  its  established  presence  in  the  server, 
automotive, and industrial applications. 

2. Accurately tracking changes in customer demand and in the external 
environment, including global regulations, politics, and economic 
conditions, evaluating their impact on the acquisition of production 
resources, and taking necessary risk response measures in a timely 
manner.  Practical  measures  include  establishing  a  raw  material 
supply chain tracking mechanism to accurately grasp the geographic 
distribution  of  raw  material  origins;  closely  monitoring  regulatory 
changes,  and  strengthening  management  adaptability,  and  legal 
compliance; increasing the flexibility of cross-region and cross-factory 
support, and adjusting production allocation and capacity expansion 
plans in a timely manner.

141

Review of Financial Position, Operating Results, Risk ManagementThe Impact of Talent Retention 
and Training & Development on 
the Company’s Operations and 
Corresponding Practices

At UMC, employees are considered the most important asset and the 
foundation  of  sustainable  operations.  Facing  external  labor  market 
competition and the attractiveness of salary conditions have caused staff 
turnover, so the failure to effectively maintain and extend experience has 
potential risks to the Company’s operations.

Regarding  talent  retention  and  training  &  development  practices, 
UMC provides a comprehensive learning environment for employees 
to improve the skills and expertise to all employees.  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, 
we also pay attention to external market salary information and provide 
competitive salary and welfare conditions to achieve the Company’s 
sustainable operation goals.

Risk Management and Evaluation (Continue)

The Impact of Infectious 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 employee attendance, and even affect company operations. 
For example, the coronavirus pandemic that started in early 2020 is still 
spreading around the world, adversely affecting the global economy 
and disrupting supply chain. Emergency control measures taken by 
governments to curb COVID-19 are likely to continue as the pandemic is 
not expected to ease in the near term, which may expose UMC to certain 
risks, including: unstable sales activities and customer orders, reduced 
plant operations and manpower, international travel and communication 
difficulties,  limitations  for  transnational  cooperation  projects,  and 
disruption to supply of materials.

The Company monitors potential risks of various infectious diseases and 
tracks any developments. UMC established its coronavirus epidemic 
control and response center in January 2020 to coordinate relevant 
information and resources, including:

1. Regularly review and discuss issues including the impact on 
production,  supply  chain  management,  epidemic  prevention 
strategies, and response measures.

2. Clearly define the various stages of infectious disease crisis 
management, develop response measures for each stage, and take 
action according to the epidemic situation. For example: Minimize 
employee  infection  and  production  impact  (for  detailed  related 
measures,  please  refer  to  UMC’s  ESG  report);  increase  buffer 
inventory, and find and expedite the verification of alternative suppliers 
to reduce material shortages; and lessen the operational impact of 
specific fabs by adjusting or transferring the allocation of orders to 
other facilities. 

3. In order to respond to relevant risks and opportunities, closely 
monitor the medium- to long-term developments in the industry, such 
as inventory adjustments, structural changes in market demand, and 
restructuring of the global supply chain.

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United Microelectronics Corporation  |  Annual Report 2021Risk Management and Evaluation (Continue)

Countries Using Policies/Resources 
to Build Domestic Semiconductor 
Manufacturing Capabilities, the Risks 
Posed to the Company’s Future Growth, 
and Countermeasures

The trade dispute and technology war between certain countries, the 
COVID-19 epidemic, and a major shortage of automotive chips have 
led  countries  to  view  semiconductors  as  an  essential  component 
of  technology  products  and  an  important  strategic  material,  and 
recognize  that  a  disrupted  supply  of  chips  can  impact  a  country’s 
economic growth or threaten its national security. Therefore, developing 
domestic semiconductor manufacturing capabilities  has  become  an 
important issue for major powers. This may have an impact on UMC’s 
revenue, investment plans, and competitiveness. For example: local 
government  policies  and  regulations  to  compel  customers  to  place 
orders with domestic manufacturers may reduce UMC’s orders and 
affect the Company’s revenue; policies or subsidies by major powers to 
expand semiconductor capacity may reduce UMC’s production share 
in the industry and cost competitiveness; prohibiting the export of key 
equipment or materials to specific countries may affect UMC’s global 
production strategy, or prompt urgent revisions to investment plans and 
result in lost business opportunities.

UMC’s countermeasures include:

1. Monitoring the status of the domestic semiconductor capacities 
in all countries, analyzing the impact to the Company’s addressable 
market, adjusting sales strategies in a timely manner, and listing it as 
a necessary evaluation item when considering capacity expansion.

2. Actively seeking alternative suppliers to diversify risks arising from 
government policies related to the export of equipment and materials. 

3. Analyzing the relevant laws of various governments and the trends 
of industry policies, and initiating mergers and acquisitions, forming 
alliances  to  build  new  facilities,  and  collaborating  on  capacity/
technology  at  the  appropriate  time  in  order  to  capitalize  on 
opportunities for international cooperation.

Shortages of Resources Caused by 
Strong Demand for Semiconductors, 
the Potential Impact on UMC’s Capacity 
Expansion and Countermeasures

The COVID-19 pandemic accelerated digital transformation, leading 
to  a  surge  in  global  semiconductor  demand.  At  the  same  time,  the 
pandemic’s impact on related industries resulted in reduced and unstable 
supply and insufficient shipping capacity, creating a severe undersupply 
situation. Furthermore, semiconductor companies fearing insufficient 
supplies are competing for production resources, which has exacerbated 
the shortage situation and prolonged delivery, and pushed up the prices 
of raw materials. This may impact UMC’s revenue, delivery time, cost, 
goodwill, and investment plans. For example: suppliers may be unable to 
deliver on time due to their own material shortages, thereby resulting in 
production disruptions for UMC and delaying delivery to the company’s 
customers; rising transportation and raw material costs may increase 
UMC’s overall operating costs; the surge in business for equipment 
suppliers  may  lead  to  delivery  delays,  resulting  in  delays  to  UMC 
expansion plans and subsequently affecting delivery to customers and 
the Company’s goodwill.

UMC’s countermeasures include:

1. Increasing the frequency of surveys to monitor the production 
capacity of vendors and delivery date of key materials and equipment.

2. Signing supply agreements or obtaining capacity guarantees with 

suppliers to ensure the supply quantities and purchase price.

3. Actively introducing alternative materials, increasing inventory level, 
and adjusting the order method to diversify purchases and mitigate 
risks.

4. Reserving and confirming airline seats in advance, or charter flights.

5. Optimizing machine verification process to shorten machine lead-in 

time to mass production.

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

Other Significant Risks

None.

Note: The analysis and valuation of Risk Items shown above include the 
data during 2021 and as of the Annual Report Printing Date.

Other Necessary Supplements

None.

144

United Microelectronics Corporation  |  Annual Report 2021Corporate Sustainable Development

146  Description of Sustainable Management
148  About Social Charity 
152  Environmental Protection, Safety and Health  

Management Instructions

145

Corporate Sustainable Development 
Description of Sustainable Management

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 
Sustainable Development Best 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 sustainable development practices, 
systems and management policies to improve the effectiveness of its 
sustainable development implementations.
In 2021, UMC was awarded with multiple honors related to sustainability, 
including being listed as a FTSE4Good Emerging Index component and 
FTSE4Good TIP Taiwan ESG Index component, and earning the Taiwan 
Corporate Sustainability Report Award, 5th place of Top 10 Taiwanese 
Companies Sustainability Model Award, 7th place in large enterprise 
of Excellence in Corporate Social Responsibility, National Enterprise 
Environmental  Protection  Award,  The  Best  Participation  of  Green 
Procurement for Enterprises, and Excellent Occupational Safety and 
Health Executive Organization. Meanwhile, UMC has been listed as one 
of the Dow Jones Sustainability World Index for 14 consecutive years 
and also named a constituent of Emerging Markets Index in 2021. DJSI is 
one of the most credible international corporate sustainability evaluation 
tools, so this is an indication that UMC’s sustainability performance has 
been recognized by the international investor sector as a global leading 
enterprise.

In addition to continuous dedication to this industry, the self-expectation 
of UMC is to become a green giant within the semiconductor industry. 
Energy  saving  and  carbon  reduction  is  a  long-term  undertaking,  in 
which UMC is an advocator of low carbon innovation and provider of low 
carbon solution as well as an implementer of low carbon actions. UMC 
established the Fluorinated Greenhouse Gases Reduction Work Group 
as early as 1999 in response to global warming, and it achieved its 2000 
voluntary reduction goal outlined by Taiwan Semiconductor Industry 
Association ahead of schedule. On Earth Day (April 22) in 2010, UMC 
was the first in the industry to announce a “Climate Change Policy” and 
“UMC’s Low Carbon Commitment” as the highest guidelines in response 
to climate change. In 2021, UMC is ardently responding to the Paris 
Climate Agreement goal and pursuing efforts to limit the global warming 
not exceeding 1.5°C, and announced its pledge to reach net zero carbon 

146

emissions by 2050. In the meantime, UMC has obtained admission 
into RE100, becoming the second semiconductor wafer foundry in this 
initiative, and committed to use 100% renewable energy by 2050 by 
setting progressive goals of 15% by 2025 and 30% by 2030.
In 2013, UMC started an early reduction project for carbon reduction 
allowance approved by the EPA, which was based on the Company’s 
carbon reduction achievements for more than a decade. UMC completed 
the  first  carbon  trade  recognized  by  Taiwan’s  EPA  in  2014,  which 
can be regarded as an important milestone for the domestic carbon 
trading market. The income from this carbon trade was used for the 
environmental protection fund. Meanwhile, the “UMC Eco-Echo Ecology 
Preservation Hope Project” was activated to work with The Society of 
Wilderness to promote the Sauter’s frog habitat preservation action 
in Hsinchu, where UMC’s HQ is located, as an effort for contributing 
to environmental sustainability. In 2016, UMC extended the spirit of 
this project and launched the UMC Eco Echo Award. It has collected 
outstanding projects and creative ideas for a friendly environment via 
the execution and selection of the Eco Echo Award in order to urge more 
people to join this environmental protection effort. By 2021, 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 and resources, and 
engineering improvement in order to fully utilize corporate resources in 
response to global warming.
UMC  has  also  actively  promoted  clean  production  and  green 
product  management.  In  2006,  the  Company  was  the  first  among 
all  semiconductor  makers  in  the  world  to  complete  the  third  party 
verification audit of Hazardous Substance Process Management (HSPM) 
system, and UMC became the first company in the world to acquire 
QC-080000 IECQ HSPM certification for all fabs. In 2009, it completed 
the first “product carbon footprint” verification of IC wafers according 
to  the  International  Carbon  Footprint  Standard  PAS2050.  In  2010, 
UMC completed the “product water footprint” verification of IC wafers 
according to the Business Water Footprint Accounting criteria of the 
non-profit international organization “Water Footprint Network.” As an 
important milestone for development of green production, these results 
can also provide complete, scientific, and reliable product information as 
the basis for self-review and continuous improvement. In 2017, UMC took 
the initiative to launch the Triple R Major League project. UMC expects to 
cooperate with suppliers to promote measures for energy and resource 
reuse, recycling and reducing to achieve green products with lower 
environmental impact. On the other hand, UMC has also established a 
supplier management strategy to strengthen the economic, social and 
environmental  performance  by  implementing  supplier  sustainability 
assessments, on-site audits, and coaching improvements and tracking to 
create a positive influence and enhance sustainable competitiveness of 
the overall supply chain.
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  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 

United Microelectronics Corporation  |  Annual Report 2021Directors in 2021 include (1) ESG governance structure reorganization; 
(2) UMC Sustainability Strategy and Blueprint; (3) ESG achievements 
and stakeholder communication; and (4) future focus. The mechanism of 
employee’s remuneration linked to ESG KPI was also approved by Board 
of Directors in this meeting.
The  Corporate  Sustainability  Committee  was  established  in  2008 
and  responsible  for  stipulating  the  direction  and  goals  of  corporate 
sustainability.  The  Committee  reviews  the  performance  and  target 
achievements of 8 functional groups, including Corporate Governance, 
Customer  Relationship  Management,  Responsible  Supply  Chain 
Management,  Sustainable  Innovation,  Environmental  Planning 
and  Management,  Green  Operation,  Human  Rights  and  Employee 
Development/Welfare, and Social Participation. The representative of 
the Corporate Sustainability Committee reports CSR promotion results 
and plans to the ESG Steering Committee quarterly. The scope of the 
report includes the management and review of material issues in the 
area of economics/governance, environment and society.

The sustainable governance structure of UMC is shown in the following 
figure:

Description of Sustainable Management (Continue)

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  2021  was 
composed by referring to the Global Reporting Initiative (GRI) Standards, 
the Semiconductors Sustainability Accounting Standard 2018 issued by 
the Sustainability Accounting Standards Board (SASB), and the Task 
Force on Climate-related Financial Disclosures (TCFD), and the content 
of this report was verified by SGS Taiwan Ltd. according to Account 
Ability 1000 Assurance Standard v3 Type 2, High level assurance. In 
the same year, the Corporate Social Responsibility Report published by 
UMC was awarded the Taiwan Corporate Sustainability Report Award 
for the 14th 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.

Sustainable Governance Structure of UMC

UMC’s sustainable governance structure includes the Board of Directors 
(including the Nominating Committee), the ESG Steering Committee, 
the  Corporate  Sustainability  Committee,  and  the  Enterprise  Risk 
Management Committee. 
In 2020, UMC reorganized its sustainable governance structure and 
established  ESG  Steering  Committee,  consisting  of  core  operating 
executives, and appointed the Co-Presidents as the Chairmen. The ESG 
Steering Committee meets every quarter to be in charge of determining 
UMC’s sustainable governance strategy/blueprint/long-term goals, and 
reports to the Nomination Committee and the Board of Directors annually 
on the sustainable performance and plans, as well as key issues and 
countermeasures that stakeholders are concerned about. The Board 
of Directors also plays a supervisory and coaching role to determine 
the likelihood of success of the strategy, regularly review the progress 
of the strategy, and drive the management team to make adjustments 
as needed. The main points of the proposal reported to the Board of 

Board of Directors

ESG Steering Committee

Corporate Sustainability Committee

Enterprise Risk Management Committee

147

Corporate Sustainable Development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 2021:

•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

The Foundation cooperates with other public welfare units to support 
the diversified development and adaptive learning of young people. 
For  example,  the  long-term  sponsorship  of  high  school  students’ 
drama creation contest "In the Mood for Love National Youth Drama 
Festival" sponsored by the Youth Performing Arts Alliance is a type 
of art education as well as a civic and life education. The Foundation 
also supports the popular science program of the Program the World 
Association, and the promotion of art education in Chengjheng High 
School for correction education. The Foundation also supports the TECO 
Technology Foundation’s "Indigenous People’s Sustainable Education 
Program" to assist in the transfer of indigenous people’s culture and work 
together to deepen local art education.

In physical education, the foundation has long supported the Nantou 
Karate team led by coach Huang Taiji and Liao Delan. Through karate, 
these two coaches accompany many disadvantaged students to rebuild 
their confidence and discover new directions in life. In 2021, the Chiayi 
National  Tung-Shih  Senior  High  School  baseball  team  sponsorship 
program was included to expand support for the cultivation of domestic 
sports talents.
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. The Foundation 
has long sponsored the Mandarin Daily newspaper education project, 
providing students with broader reading resources.

  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 2021:
•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  2021,  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.
•Promoting UMC Volunteer Culture
UMC  is  keen  to  participate  in  social  welfare  activities.  In  order  to 
encourage employees to engage in social welfare work, UMC offers 
incentives  and  official  leave  hours  for  employees  to  participate  in 
volunteer services. 

UMC’s commitment and participation in the social welfare work is a 
testament to the importance UMC places on building a volunteer culture 
and  to  the  mobility,  love  and  selflessness  of  UMC’s  volunteers.  By 
adopting a comprehensive employee social club’s evaluation system, 
UMC provides funding to top-performing clubs based on the annual 
evaluation results to encourage employees to participate in social club 
activities and call on different clubs to join in the social welfare work. In 
addition, when planning annual corporate events, UMC co-organizes the 
events with the related clubs according to the nature and purpose of the 
events, in order to intertwine the corporate event planning with clubs and 
social welfare activities, thereby creating all-inclusive synergy.

In terms of family education, the foundation has chronically sponsored 
a total of 110 family-supported school children, providing disadvantaged 
families with stable financial supports so that children can grow up under 
the care of their families of origin. In addition, employees are also linked 
to serve as letter-care volunteers to give care and encouragement to 
adopted children. As one of the simplest concepts of companionship, the 
program connects love and hope.

To  enhance  energy  ef ficiency  and  expand  the  benefits  of  our 
core  business  functions,  UMC  has  established  the  “UMC  Energy 
Conservation Service Team” with “energy saving and safety” as the 
core. By stepping out the foundry fabs, the Team allows UMC employees 
to bring their experiences and expertise to bear on diagnosing and 
improving energy conservation and fire safety for underprivileged social 
welfare organizations, assisting in building renovation, and enhancing 

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safety and comfort in residential areas, so as to reduce unnecessary 
energy consumption of these organizations and help them to use their 
precious resources more effectively.
Charity services provided by clubs and the Energy Conservation Service 
Team in 2021:

Clubs

Services

Candlelight Club St. Teresa Opportunity Center, Boyo Social Welfare 

Foundation, St. Joseph Social Welfare Foundation, Eden 
Social Welfare Foundation, PWSA Care Association

Ukelele Club

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

Free performances (Hsinchu Cathay General Hospital, 
Sanyi Wood Carving Festival)

UMC Drum Club Charity performances (St. Joseph Social Welfare 

Foundation)

Music Fellow 
Club

Energy 
Conservation 
Service Team

Nanke Tennis 
Club

Free performances (L’arc Hotel Second-hand Market Fair, 
STSP Bureau Art Season Activity)

Free repairs (Good Shepherd Social Welfare Foundation, 
Taiwan Fund for Children and Families- Hsinchu, Yanjhou 
Elementary School)

Future Star Player Sponsorship Program

Swimming Club

Nanliao beach cleanup

UMC Fire 
Brigade

Fire safety, disaster prevention and firefighting training

•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. 
By  cooperating  with  key  universities,  the  semiconductor  process 
practicum courses 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.

Summary of key implementation outcomes in 2021:

Key Items

Outcome

Industry-University 
Collaboration

Semiconductor 
Processing Practicum 
Courses and Nano 
Generation course

Offered semiconductor 
processing practicum 
courses and Nano 
Generation course with 
four key universities in 
2021. About 575 students 
enrolled. 

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Key Items

Outcome

Key Items

Outcome

Career Advisor Program

PTP Prospective Talent 
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 
10 years, with more 
than 310 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. 

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, 
5,081 students have been 
recruited and 387 prospects 
are still in school.

Campus 
Cultivation

Domestic and Overseas 
Summer Internship

Equipment Intern

Enterprise Visitations

Campus Ambassador for 
disabled students 

Campus relationship 
development (including 
technical career lectures)

Provide a specific 
number of internship 
opportunities each 
summer vacation. In 
2021, a total of 13 
interns were recruited. 

Provide student internship 
opportunities at UMC. 
Cooperated with 7 key 
universities in 2021, and 
a total of 45 interns were 
accepted. 

Provide enterprise visitation 
opportunity for schools. 
In order to comply with 
the anti-epidemic policy in 
2021, only key universities 
and specific programs 
were involved. About 241 
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 172 students 
with physical disabilities 
were provided with work 
study opportunities, and in 
2021, 20 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 2021, 6 book 
discussion sessions were 
held, with a total of more 
than 645 participants.

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•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. Under the 
severe epidemic situation, UMC also donated medical  supplies and 
protective equipment to hospitals to establish the strongest epidemic 
prevention line for the frontline medical staff and the public. 

In the days to come, UMC will remain dedicated to its philosophy of 
receiving from and giving back to society by supporting social charity.
In 2021, the purpose of donation includes education promotion, academic 
sponsorship, social welfare, and epidemic prevention donations. The 
total donation amount is NT$208,459,331.

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Corporate Sustainable Development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 ISO 14001 
and ISO 45001 standards. It is intended to integrate daily management 
with  total  quality  management  (TQM)  activities  such  that  the  ESH 
management plan can be integrated with actual fab operation in order 
to achieve the 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 2021:

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, 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 2025” 
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 7 minor (or above) accidents

A total of 6 incidents throughout the year

The target of 2021 was achieved

To reduce water, electricity, and waste compare to the 
base year by 2025.
1. Water Usage: 15% reduction (Intensity)
2. Electricity Usage: 15% reduction (Intensity)
3. Waste Generation: 25% reduction (Intensity)

Note: the base year is 2015

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Environmental Protection

Greenhouse Gas Reduction and Management

Facing the issues of climate change and worsening global warming, 
UMC has already prepared and implemented responsive strategies. 
It set up the “Fluorinated Greenhouse Gases Reduction Work Group” 
in 1999 to be dedicated to the research and promotion of reduction of 
fluorinated greenhouse gases. It formulated the “UMC Climate Change 
Policy”  in  2010  as  the  highest  guiding  principle  of  the  Company  in 
response to climate change. 
The major reduction plans with respect to 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 C4F8) for the entire company, thus greatly 
reducing greenhouse gas emissions and its impact on global warming. 
After years of effort, UMC has achieved the objectives of the “Carbon 
Reduction 333” project, the “369+ Energy and Resources Productivity 
Enhancement  Project”  and  the  “Green  2020”  project  in  2012,  2015 
and 2020, respectively. The Company has also formulated the “Green 
2025”  project  to  commit  to  goals  of  15%  water  saving,  15%  power 
saving, and 25% waste reduction in the future based on more stringent 
self-requirement  standards  and  more  active  spontaneous  actions. 
Furthermore, as UMC’s GHG Offset Project has passed the Taiwan EPA 
review in 2020, we can build ten years of carbon assets according to 
our GHG reduction efforts in Taiwan fabs through this project. In 2021, 
UMC is ardently responding to the Paris Climate Agreement goal and 
pursuing efforts to limit the global warming not exceeding 1.5°C, and 
announced its pledge to reach net zero carbon emissions by 2050. In 
the meantime, UMC has obtained admission into RE100, becoming the 
second semiconductor wafer foundry in this initiative, and committed 
to use 100% renewable energy by 2050 by setting progressive goals of 
15% by 2025 and 30% by 2030.
UMC has constructed the UMC Climate Change Risk and Opportunity 

Assessment tool based on multiple data points: TCFD (Task Forced 
on Climate-related Financial Disclosures), ISO 14090 Adaptation to 
Climate  Change,  and  the  assessment  procedure  in  the  UK  Climate 
Impact Programme (UKCIP). The Climate Change Risk and Opportunity 
Assessment Team conducts assessments every year. The assessment 
is  based  on  the  aspects  such  as  policies,  regulations,  transition  of 
market and technology, reputation and physical risk, and the results are 
submitted to the Corporate Sustainability Committee for approval. In 
May 2021, UMC led its global wafer foundry peers to pass the “TCFD 
Third-Party performance assessment,” and was rated as the highest 
“pioneer level” by the inspection agency SGS Taiwan Ltd., endorsing 
that UMC’s climate change risk assessment system and associated 
financial disclosure data are highly credible and transparent. For details 
of greenhouse gas emissions, potential risks and opportunities of climate 
change, and related management and responding measures, please 
refer to the Company’s annual Sustainability Report.
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.

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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 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-control 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 4 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 2021 will be 
verified by third party inspection and publicly disclosed before June 
2022.
On  the  other  hand,  UMC  was  also  invited  to  participate  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 2021, 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  it  began  the  promotion  of  the  green  supply  chain  management 
system and became a member of SONY Green Partner in the same 
year. To date, the Company has continuously passed re-verification, 
indicating  UMC’s  hazardous  substance  management  effectiveness 
has been recognized by customers. In 2006, UMC was the first among 
global  semiconductor  manufacturers  to  complete  the  hazardous 
substance  process  management  (HSPM)  system  audit  and  to  be 
granted the recommended registration. UMC has also become the first 
semiconductor manufacturer in the world to have all fabs granted with 
the QC-080000 IECQ HSPM certificate.
In addition, for laying the foundation of green product, process and 
design, UMC has 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  of  IC  wafer,  and  obtained  the  independent 
verification  statement  issued  by  a  third  party  to  become  the  first 
semiconductor company in Taiwan to independently and completely 
calculate and verify the product carbon emission information. In 2000, 
it was the first in the industry to complete the water footprint verification 
of  8-inch  and  12-inch  fabs.  With  the  important  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 

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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.
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 
every year, and the operation items with increased risk levels must be 
examined to see if there is a need for improvement.

•  Management of Machine, Equipment, or Appliance
In addition to being in compliance with domestic standards, such as 
CNS (Chinese National Standards) and machine equipment appliance 
safety  standard,  the  machines  used  by  UMC  must  come  with  the 
reports (provided by the equipment supplier) meeting the semiconductor 
manufacturing equipment safety, health, and environmental protection 
standard  (SEMI  S2)  formulated  by  international  semiconductor 
equipment and material organization. If there is any non-conforming 
item, it must be improved before entry into the fab. After fab entry, 
the water, electrical, gas, and chemical use safety inspection must be 
conducted according to different stages of machine installation before 
these machines can be used. 
During machine operation and maintenance, employees should receive 
the educational training of the machine operation and be in compliance 
with  the  operation  rule.  Unless  there  is  approved  application  and 
adoption of alternative safety measures, it is prohibited to disable the 
safety interlock device of the machine in order to avoid any significant 
occupational incident.
•  Management of Hazardous Chemicals

UMC has a hazardous chemical management strategy. All chemicals 
entering UMC must comply with the strategy and strict safety review 
mechanisms before they can be used in UMC. 
UMC's  sound  chemical  management  process  meets  regulatory 
requirements. In addition to labeling and training by law, the exposure 
risk assessment method should be introduced and the chemical risk 
level and classification management measures should be established in 
order to reduce the exposure hazard risks to workers.
The  working  environment  monitoring  should  be  conducted  every 
six  months  according  to  the  Rules  for  Implementation  of  Working 
Environment  Monitoring.  The  effective  sampling  strategy  should  be 
formulated, and the monitoring results should be verified by statistical 
analysis tool to ensure the exposure situation of every similar exposure 
group and to protect the health of employees. 
There are toxic gas detectors distributed in the working environment 
in the fab for early control of trace gas leaks with timely warning and 
automatic broadcasts to notify employees to evacuate to designated safe 
areas.
•  Procurement Management and Contractor 
  Management
UMC has specified the safety and health rule of procurement in the 
operation regulation of the Company’s procurement department. The 
raw materials suppliers will be requested to conduct labeling, production, 
and 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 

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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 
offer reminders at the work place according to the spirit of individual 
occupational safety in order to achieve the optimal effect of personal 
discipline control.
•  Regular  Inspection,  Key  Points  Inspection,  Operation  

Inspection, and Onsite Walkthrough

Regular  and  key  points  inspections  should  be  arranged  for  various 
facilities and operations according to laws and regulations, and operation 
inspections should be conducted regularly by employees in charge of 
facilities and operations.
In addition to the matters specified by laws and regulations, supervisors 
at all levels and occupational safety personnel should arrange regular 
and irregular onsite walkthroughs and audits. The deficiencies of audits 
should be tracked by computer system, and these cases can only be 
closed after the improvement is completed.
•  Safety and Health Educational Training

By nature, UMC’s ESH educational training can be divided into three 
categories:
-  Company-wide general education and training in safety and health
-  Fab-wide safety and health educational training arranged by each fab.
-  ESH trainings formulated by each department according to the nature 

of each department

“Safety First. No Compromise on Safety. Safety Is Above Production” 
is UMC’s commitment to employees, and to undertake planning and 
implementation of necessary safety and health education and training 
for work and prevention of disasters. According to the level from top 
to bottom, it is divided into company-wide general education courses, 
factory-run courses and department-specific courses, so that employees 
can develop a safety culture, awareness and ability of safety, and reduce 

accidents caused by unsafe behavior. Every year, in addition to the 
courses in the plan, for specific events or major cases, safety-related 
training courses is adopted. In 2021, 2,203 classes have been offered, 
attracting a total of 53,225 participants. The courses included e-learning 
courses  so  that  employees  can  learn  safety  and  health  knowledge 
without being limited by the schedule of physical courses.
•  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 treasures 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 Division of Risk 
Management and Safety and Health, which will suggest to carry out the 
proposal within the Company to be approved by the ESH Committee. 
The  external  major  accidents  and  safety  and  health  news  will  be 
advocated to employees via CSR newsletter or BBS within the Company. 
The safety and health advocacy posters will be put on occupational 
safety bulletin boards in all fabs frequently. In addition, communication 
channels such as ESH mailbox and ESH proposal systems have been 
established on the Company’s intranet website for 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.

156

United Microelectronics Corporation  |  Annual Report 2021 
Environmental Protection, Safety and Health Management Instructions (Continue)

•  “National Enterprise Environmental Protection Award” by the 
Environmental Protection Administration of Executive Yuan, R.O.C. 
(Fab 8F, Fab 8S)

•  “The Best Participation of Green Procurement for Enterprises” by the 
Environmental Protection Administration of Executive Yuan, R.O.C.
•  “Special Outstanding Occupational Safety and Health Unit” by the 
Hsinchu Science Park Bureau, Ministry of Science and Technology, 
R.O.C. (Fab 8E)

•  “Outstanding Occupational Safety and Health Unit” by the Hsinchu 
Science Park Bureau, Ministry of Science and Technology, R.O.C. 
(Fab 8S)

•  “Outstanding Occupational Safety and Health Unit” by the Southern 

Taiwan Science Park Bureau (Fab 12A)

•  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 
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 2021 are as shown below:  

157

Corporate Sustainable DevelopmentSpecial Disclosures

Issuance of Private Placement Securities 

159  Summary of Affiliated Enterprises 
171 
171  Acquisition or Disposal of UMC Shares by Subsidiaries
171  Other Necessary Supplements 
171  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.

158

United Microelectronics Corporation  |  Annual Report 2021 
 
 
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.

43.82

UMC Investment 
(Samoa)Limited

100.00%

Wavetek Microelectronics 
Corporation

80.37%

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.

United Semiconductor 
(Xiamen) Co., Ltd.

100.00%

26.13

Omni Global Limited

100.00%

United Microtechnology 
Corporation 
(California)

100.00%

ECP Vita Pte. Ltd.

100.00%

Sino Paragon Limited

100.00%

United Semiconductor 
Japan Co., Ltd.

100.00%

Note: UMC holds 79.73% of Wavetek Microelectronics Corporation (Wavetek); Fortune Venture Capital Corp. holds 0.64% of Wavetek, and the comprehensive shareholding ratio 

is 80.37%.

159

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

One Nexus Way, Camana Bay, Grand Cayman 
KY1-9005, 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 NT$

Capital

Major Business /
Production Items

NT$460,397,938

IC Sales

NT$108,543,538

Marketing support activities

NT$2,007,208,323

Investment holding

NT$13,530,000

Marketing support activities

NT$4,219,830,360

Venture capital

Fortune Venture Capital Corp.

1993.09.21

5F, No.17, Lane 120, Neihu Road Section 1, 
Taipei, Taiwan 114, R.O.C.

NT$4,447,520,690

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

ECP Vita Pte. Ltd.

2012.05.10

Soaring Capital Corp.

2008.03.25

 8 Marina View, #09-05 Asia Square Tower 
one, Singapore 018960

Unit 25, 2nd Floor, Nia Mall, Saleufi Street, 
Apia Samoa

NT$29,988,444,000

Investment holding

NT$43,519,120

Investment holding

NT$252,081,000

Insurance

NT$27,351,000

Investment holding

Unitruth Advisor
(Shanghai) Co., Ltd.

2008.10.16

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

NT$22,407,200

Investment holding and 
advisory

Tera Energy Development Co., Ltd. 2011.07.19

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

NT$78,000,000

Energy technical services

Everrich Energy Investment (HK) 
Limited

2009.12.16

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

NT$25,988,211

Investment holding

Everrich (Shandong)
Energy Co., Ltd.

2009.11.02

Office Building, Guangyutang National 
Pharmaceutical Industrial Park, No. 369, 
Haichuan Road, Jiezhuang Street, High-tech 
Zone, Jining City, Shandong Province, China

NT$21,006,750

Solar engineering 
integrated design services

160

United Microelectronics Corporation  |  Annual Report 2021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

Sino Paragon Limited

2016.06.06

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

Commerce House, Wickhams Cay 1, P.O. Box 
3140, Road Town, Tortola, B.V.I. VG1110

Commerce House, Wickhams Cay 1, P.O. Box 
3140, Road Town, Tortola, B.V.I. VG1110

Commerce House, Wickhams Cay 1, P.O. Box 
3140, Road Town, Tortola, B.V.I. VG1110

 In NT$

Capital

Major Business /
Production Items

NT$1,857,631,150

Sales and manufacturing of 
integrated circuits

NT$50,833,500

Investment holding

NT$1,680,540

Marketing service

NT$6,693,468,981

Investment holding

NT$9,915,186,000

Investment holding

NT$9,915,186,000

Investment holding

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

NT$13,660,009,736

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

NT$130,290,000

Design support of 
integrated circuits

NT$130,160,000

Investment holding

NT$28,009,000

Research & development

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

NT$63,832,519,342

Sales and manufacturing of 
integrated circuits

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

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

NT$29,874,878,250

Investment holding

NT$83,204,400

Investment holding

United Semiconductor  
Japan Co., Ltd.

2014.09.18

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

NT$2,548,000,000

Sales and manufacturing of 
integrated circuits

Note The data is dated December 31, 2021.

161

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.

162

United Microelectronics Corporation  |  Annual Report 2021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

Shares

-

-

-

-

-

-

-

-

-

-

TLC Capital Co., Ltd.

Chairman

United Microelectronics Corporation

421,983,036

Representative:Stan Hung

-

Director

United Microelectronics Corporation

421,983,036

Representative: SC Chien

-

Director

United Microelectronics Corporation

421,983,036

Representative: Jason Wang

-

Director

United Microelectronics Corporation

421,983,036

Representative: Chitung Liu

-

Director

United Microelectronics Corporation

421,983,036

Representative: Chih Chiang Peng

-

Supervisor

United Microelectronics Corporation

421,983,036

Representative: Jinhong Lin

-

%

-

-

-

-

-

-

-

-

-

-

100.00

-

100.00

-

100.00

-

100.00

-

100.00

-

100.00

-

163

Special DisclosuresSummary of Affiliated Enterprises (Continue)

Name of Corporation

Title

Name or Representative

Shareholding

Fortune Venture Capital Corp.

Chairman

United Microelectronics Corporation

444,752,069

Shares

Representative: Stan Hung

-

Director

United Microelectronics Corporation

444,752,069

Representative: SC Chien

-

Director

United Microelectronics Corporation

444,752,069

Representative: Jason Wang

-

Director

United Microelectronics Corporation

444,752,069

Representative: Chitung Liu

-

Director and 
President

United Microelectronics Corporation

444,752,069

Representative: Chih Chiang Peng

-

Supervisor

United Microelectronics Corporation

444,752,069

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

-

-

-

-

-

-

-

-

164

United Microelectronics Corporation  |  Annual Report 2021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.

7,800,000

100.00

Representative: Chih Chiang Peng 

-

-

Director

Fortune Venture Capital Corp.

7,800,000

100.00

Representative: Su Ying Shih

-

-

Director

Fortune Venture Capital Corp.

7,800,000

100.00

Representative: Jinhong Lin

-

-

Supervisor

Fortune Venture Capital Corp.

7,800,000

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

-

-

-

-

-

-

165

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: James W Wang

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

Victor Yu

Director

Jeremy Wang

Director

Eric Chen

Director

Jinhong Lin

Infoshine Technology Limited

Director

Victor Yu

Oakwood Associates Limited

Director

Victor Yu

-

15,001

-

-

-

-

-

-

-

-

%

79.73

-

79.73

-

79.73

-

0.00

-

-

-

-

-

-

-

-

166

United Microelectronics Corporation  |  Annual Report 2021 
Summary of Affiliated Enterprises (Continue)

Name of Corporation

Title

Name or Representative

Shareholding

HeJian Technology (Suzhou)  
Co., Ltd.

Chairman

Chitung Liu

Director and 
General Manager

M C Gao

Director 

M C Lai

Director

Victor Yu

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

Jinhong Lin

United Microtechnology Corporation 
(California)

Director

Jason Wang

Director

Megan Su

Shares

-

-

-

-

-

-

-

-

-

-

-

-

-

%

-

-

-

-

-

-

-

-

-

-

-

-

-

167

Special DisclosuresSummary of Affiliated Enterprises (Continue)

Name of Corporation

Title

Name or Representative

Shareholding

Shares

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

%

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

United Semiconductor (Xiamen) Co., Ltd. Chairman

Chitung Liu

Vice Chairman

C C Hsu

Director

Jinhong Lin

Director

Wayne Tan

Director

T C Chen

Director

Victor Yu

Director

Yi Yan Hong

Director

Guo Dong Di

Director

Yan Jie Hu

Supervisor

Rong Fang Li

Supervisor

Angel Sun

United Microchip Corporation

Director

Chitung Liu

Sino Paragon Limited

Director

Jinhong Lin

United Semiconductor  
Japan Co., Ltd.

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

Note: The data is dated December 31, 2021.

168

United Microelectronics Corporation  |  Annual Report 2021Summary of Affiliated Enterprises (Continue)

Summarized Operating Results of UMC Subsidiaries 

Company

Capital

Assets Liabilities Net Worth  Operating 
Revenues

 In Thousand NT$

Operating 
Income 
(Loss)

Net Income 
(Loss)

Earnings 
(Loss) Per 
Share (NT$)

UMC Group (USA)

460,398 

9,765,521 

7,979,947 

1,785,574 

54,178,820 

73,277 

64,742 

3.94 

United Microelectronics  
(Europe) B.V.

108,544 

163,303 

32,938 

130,365 

57,961 

3,843 

4,151 

461.30 

UMC Capital Corp.

2,007,208 

5,402,348 

744 

5,401,604 

1,884,371 

1,360,816 

1,362,690 

19.02 

UMC Korea Co., Ltd. 

13,530 

26,950 

5,205 

21,745 

19,267 

1,439 

1,161 

10.55 

TLC Capital Co., Ltd.

4,219,830 

4,801,792 

153,408 

4,648,384 

954,944 

124,214 

132,881 

Fortune Venture Capital Corp.

4,447,521 

7,683,226 

131,583 

7,551,643 

1,886,037 

960,936 

942,304 

Green Earth Limited

29,988,444 

10,277,015 

UMC Investment (Samoa) Limited

43,519 

38,865 

 - 

 - 

10,277,015 

38,865 

 - 

 - 

 - 

 - 

(1,124,730)

(1,096)

ECP Vita Pte. Ltd.

252,081 

635,251 

51,897 

583,354 

65,111 

50,011 

50,180 

Soaring Capital Corp.

27,351 

7,190 

8 

7,182 

0 

(899)

(904)

Unitruth Advisor (Shanghai) Co., Ltd.

22,407 

10,805 

3,674 

7,131 

9,989 

(756)

(865)

Tera Energy Development Co., Ltd.

78,000 

105,491 

16,539 

88,952 

111,555 

24,072 

26,632 

Everrich Energy Investment (HK) 
Limited

25,988 

43,061 

38 

43,023 

 - 

(39)

2,036 

Everrich (Shandong) Energy Co., Ltd.

21,007 

52,191 

9,226 

42,965 

6,807 

2,536 

2,083 

0.32 

2.19 

(1.15)

(0.72)

5.58 

(1.00)

NA

1.50 

2.71 

NA

169

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 (NT$)

 In Thousand NT$

Wavetek Microelectronics 
Corporation

Wavetek Microelectronics 
Investment (Samoa) Limited

Wavetek Microelectronics 
Corporation (USA)

1,857,631 

3,680,396 

2,545,095 

1,135,301 

3,082,401 

513,691 

504,288 

50,834 

2,690 

1,681 

2,695 

 - 

 - 

2,690 

 - 

(197)

(258)

2,695 

259 

15 

(43)

Best Elite International Limited

6,693,469 

25,274,477 

1,605 

25,272,872 

Infoshine Technology Limited

9,915,186 

25,218,528 

 - 

25,218,528 

Oakwood Associates Limited

9,915,186 

25,218,528 

 - 

25,218,528 

 - 

 - 

 - 

(4,425)

4,633,937 

 - 

 - 

4,640,155 

4,640,155 

2.73 

(0.16)

(0.72)

6.97 

NA

NA

HeJian Technology (Suzhou) Co., 
Ltd.

UnitedDS Semiconductor 
(Shandong) Co., Ltd.

13,660,010 

31,219,423 

6,531,230 

24,688,193 

14,583,406 

5,711,476 

4,661,502 

1.48 

130,290 

833,643 

414,754 

418,889 

683,117 

136,288 

127,083 

NA

Omni Global Limited 

130,160 

626,457 

 - 

626,457 

 - 

 - 

56,705 

13.19 

United Microtechnology Corporation 
(California)

United Semiconductor  (Xiamen) 
Co., Ltd.

28,009 

37,137 

1,521 

35,616 

26,346 

1,491 

1,469 

36,722.32 

63,832,519 

67,766,340 

44,330,084 

23,436,256 

18,992,091 

(1,595,304)

(2,381,012)

NA

United Microchip Corporation

29,874,878 

10,252,341 

 - 

10,252,341 

Sino Paragon Limited

83,204 

138,220 

 - 

138,220 

 - 

 - 

 - 

 - 

(1,124,020)

(4,133)

(1.15)

(1.59)

United Semiconductor  
Japan Co., Ltd. 

2,548,000 

24,823,783 

5,265,799 

19,557,984 

17,632,454 

3,711,298 

3,088,751 

26.57 

Note: US$:NT$=1:28.009, JPY:NT$=1:0.2548, EUR:NT$=1:33.167, RMB:NT$=1:4.343, KRW:NT$=1:0.0246

170

United Microelectronics Corporation  |  Annual Report 2021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 NT$, Shares

Profit/
Loss

As of Annual Report
Printing Date

Shares Amount

Fortune Venture Capital 
Corp.

4,447,521

New shares

100.00

for cash

2022

2021

None

None

None

None

None

None

Shares: 16,078,737
Amount: 920,443

815,329

None

None

Note:  (1) As of  February 24, 2022. 

(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.

          (5) The disposal of shares is due to the share exchange transaction with Chipbond approved by Fortune’s Board of Directors’ meeting on September 3, 2021.

Other Necessary Supplements

None.

Disclosure 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 2021 and as of the Annual Report 
Printing Date

None.

171

Special Disclosures 
 
 
Financial Review

173  Condensed Balance Sheets 
175  Condensed Statements of Comprehensive Income 
177   Financial Analysis 
181  Audit Committee’s Review Report 
182  Financial Statements – Consolidated
260  Financial Statements – Parent Company

172

United Microelectronics Corporation  |  Annual Report 2021Condensed Balance Sheets

Condensed Balance Sheets-Consolidated

In Thousand NT$

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

Before 
distribution

After 
distribution

2021

2020

2019

2018

2017

233,273,433

129,941,703

3,644,933

97,566,702

464,426,771

105,453,729

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

370,187,365

364,604,906

394,099,162

72,714,322

49,899,337

88,061,070

*

98,119,368

82,479,477

56,815,442

96,618,093

77,770,158

183,223,887

63,499,747

141,743,273

90,258,621

162,972,943

108,169,078

158,068,415

92,000,508

180,061,578

*

161,619,115

172,738,098

164,984,520

188,618,601

280,979,703

235,659,746

206,804,357

206,069,723

213,080,776

124,832,476

47,898,093

124,224,015

43,211,214

117,575,798

39,550,394

124,243,187

40,399,363

126,243,187

40,858,350

*

43,211,214

39,550,394

40,399,363

40,858,350

115,375,789

80,176,360

60,820,280

61,588,543

48,065,899

*

60,300,518

51,055,125

54,672,438

39,508,876

(7,126,655)

(11,832,042)

(11,022,314)

-

223,181

(119,801)

113,356

(119,801)

410,065

(14,513,940)

(5,647,430)

466,768

2,632,377

(4,719,037)

956,808

281,202,884

235,773,102

207,214,422

206,536,491

214,037,584

*

215,897,260

197,449,267

199,620,386

205,480,561

Note 1: *Subject to change based on resolutions of the 2022 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.

173

Financial ReviewCondensed Balance Sheets-Parent Company

In Thousand NT$

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

Other components of equity

Treasury stock

Total equity

Before 
distribution

After 
distribution

Before 
distribution

After 
distribution

Before 
distribution

After 
distribution

Before 
distribution

After 
distribution

Before 
distribution

After 
distribution

2021

2020

2019

2018

2017

173,934,887

76,105,085

3,323,995

150,987,914

404,351,881

68,328,684

122,967,977

66,640,272

4,167,373

125,122,444

318,898,066

29,622,014

107,866,299

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

299,187,220

26,797,263

106,676,034

127,101,974

3,459,829

84,756,630

321,994,467

58,655,702

*

49,497,856

53,529,927

33,713,368

67,212,725

55,043,494

123,372,178

53,616,306

83,238,320

52,181,835

95,946,607

66,320,234

93,117,497

50,257,989

108,913,691

*

103,114,162

105,711,762

100,033,602

117,470,714

124,832,476

47,898,093

124,224,015

43,211,214

117,575,798

39,550,394

124,243,187

40,399,363

126,243,187

40,858,350

*

43,211,214

39,550,394

40,399,363

40,858,350

115,375,789

80,176,360

60,820,280

61,588,543

48,065,899

*

60,300,518

51,055,125

54,672,438

39,508,876

(7,126,655)

(11,832,042)

-

(119,801)

(11,022,314)

(119,801)

(14,513,940)

(5,647,430)

2,632,377

(4,719,037)

280,979,703

235,659,746

206,804,357

206,069,723

213,080,776

*

215,783,904

197,039,202

199,153,618

204,523,753

Note 1: * Subject to change based on resolutions of the 2022 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.

174

United Microelectronics Corporation  |  Annual Report 2021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

2021

2020

213,011,018

176,820,914

72,049,629

51,686,286

10,117,118

61,803,404

55,112,010

4,131,555

59,243,565

55,780,255

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

In Thousand NT$

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

(668,245)

(2,009,077)

(3,578,847)

(4,429,938)

(2,997,469)

59,911,829

33,748,370

13,131,612

8,126,828

5,705,980

(668,264)

(1,882,424)

(3,594,060)

(4,533,832)

(3,109,070)

Earnings per share (NT$)

4.57

2.42

0.82

0.58

0.79

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.

175

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 (NT$)

2021

2020

2019

2018

159,222,834

135,280,403

123,622,436

132,834,602

62,195,577

43,396,863

17,284,085

60,680,948

55,780,255

4,131,574

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

59,911,829

33,748,370

13,131,612

4.57

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

In Thousand NT$

2017

132,179,198

29,718,771

11,538,896

(1,114,125)

10,424,771

9,628,734

(3,922,754)

5,705,980

0.79

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 2017 to 2021

Year

CPA

Audit Opinion

2017

2018

2019

2020

2021

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

Wan-Ju Chiu, Hsin-Min Hsu

Unqualified Opinion with Emphasis of Matter Paragraphs or Other Matter Paragraphs

176

United Microelectronics Corporation  |  Annual Report 2021 
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 (NT$)

Cash Flow

Cash flow ratio (%)

Cash flow adequacy ratio (%)

Cash flow reinvestment ratio (%)

Leverage

Operating leverage

Financial leverage

2021

39.45

247.06

221.21

196.55

34.08

6.82

54

6.19

17.37

59

1.62

0.51

13.45

21.59

50.04

25.87

4.57

85.68

145.64

5.93

3.22

1.04

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

Analysis of change over 20% from 2020 to 2021:
1.  Long-term funds to property, plant and equipment: Due to increase in bonds payable and long-term loans.
2. Times interest earned: Due to increase in income before interest and tax.
3. Property, plant and equipment turnover: Due to increase in net sales.
4. Return on assets, Net profit margin: Due to increase in net income.
5. 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.

6. Pre-tax income to paid-in capital: Due to increase in income before tax attributable to stockholders of the parent company.
7.  Cash flow adequacy ratio: Due to increase in five-year sum of net cash provided by operating activities.
8.  Operating leverage: Due to increase in operating income.

177

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.

178

United Microelectronics Corporation  |  Annual Report 2021 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 (NT$)

Cash Flow

Cash flow ratio (%)

Cash flow adequacy ratio (%)

Cash flow reinvestment ratio (%)

Leverage

Operating leverage

Financial leverage

2021

30.51

403.84

254.56

228.16

111.73

6.88

53

5.95

17.47

61

2.23

0.44

15.55

21.59

48.61

35.03

4.57

97.95

182.32

4.36

2.86

1.01

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

Analysis of change over 20% from 2020 to 2021:
1. 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 increase in current portion of long-term liabilities and other financial liabilities, current.
3. Property, plant and equipment turnover: Due to increase in net sales.
4. Operating leverage: Due to increase in operating income.

179

Financial ReviewFinancial Analysis (Continue)

Note 1: The calculation of EPS was based on weighted average shares outstanding for the year.
Note 2: The calculation formulas of financial analysis are listed as follows:
1. Capital structure

(1) Debt ratio = total liabilities / total assets
(2) Long-term funds to property, plant and equipment = (total equity + bonds payable + long-term loans) / 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.

180

United Microelectronics Corporation  |  Annual Report 2021Audit Committee’s Review Report

The  Board  of  Directors  has  prepared  and  submitted  to  us  the  Company’s  2021  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 2022 Annual General Shareholders’ Meeting

Chairman of the Audit Committee: Lih J. Chen 

	February	24,	2022

181

Financial Review 
	
	
	
	
				
						
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United Microelectronics Corporation  |  Annual Report 2021 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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, 2021 and 2020

(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
        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
    Exchange gain, net
    Exchange loss, net
        Subtotal
Income from continuing operations before income tax
Income tax expense
Net income
Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss
    Remeasurements of defined benefit pension plans
    Unrealized gains or losses 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 (loss)
Total comprehensive income (loss)

    Net income (loss) attributable to:
        Shareholders of the parent
        Non-controlling interests

    Comprehensive income (loss) attributable to:
        Shareholders of the parent
        Non-controlling interests

    Earnings per share (NTD)
        Earnings per share-basic
        Earnings per share-diluted

Notes

4,6(20), 7
4, 6(5), 6(10), 6(15), 6(19),
6(20), 6(21), 7

4, 6(4), 6(10), 6(15), 6(19),
6(21), 7

For the years ended December 31,

2021
213,011,018

$

2020
176,820,914

$

(140,961,389)
72,049,629

(137,823,813)
38,997,101

4, 6(8), 6(16), 6(22)

4
4
4, 6(23), 6(28)
6(23)
4, 6(6)
4
4

4, 5, 6(25)

6(24)

4, 6(15)

(4,671,599)
(7,989,860)
(12,934,836)
6,121
(25,590,174)
5,226,831
51,686,286

575,719
1,653,006
871,554
(1,962,930)
8,495,043
484,726
-
10,117,118
61,803,404
(6,691,394)
55,112,010

(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
-
(100,141)
5,918,772
27,926,179
(745,767)
27,180,412

(197,477)
5,811,342

(192,581)
4,815,361

3,361,023

2,824,216

4, 5, 6(25)

(104,643)

54,424

(4,741,016)
(24,474)

(2,920,280)
60,221

4, 5, 6(25)

4, 6(26)

26,800

4,131,555
59,243,565

55,780,255
(668,245)
55,112,010

59,911,829
(668,264)
59,243,565

4.57
4.48

$

$

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$

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$

44,173

4,685,534
31,865,946

29,189,489
(2,009,077)
27,180,412

33,748,370
(1,882,424)
31,865,946

2.42
2.35

187

The accompanying notes are an integral part of the consolidated financial statements.

Financial Review2
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B

United Microelectronics Corporation  |  Annual Report 2021 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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, 2021 and 2020

(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

        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

        Exchange gain on financial assets and liabilities

        Loss (gain) on lease modification

        Amortization of deferred government grants

        Others

            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,

2021

2020

$

61,803,404

$

27,926,179

44,179,632

2,894,942

(6,121)

(2,892,470)

1,868,089

(575,719)

(1,653,006)

1,745,745

(8,495,043)

(143,735)

10,964

(505,434)

6

(4,069,055)

243,447

32,602,242

119,904

(81,887)

(8,590,622)

134,111

(871,589)

(299,418)

71,566

(71,828)

1,637,105

688,652

4,092,040

(506,837)

(482,809)

71,430

90,315,464

505,379

3,006,829

(1,539,069)

(1,936,712)

90,351,891

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

189

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, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from investing activities:

    Acquisition of financial assets at fair value through profit or loss

$

(921,916)

$

(1,118,572)

For the years ended December 31,

2021

2020

    Proceeds from disposal of financial assets at fair value through profit or loss

    Acquisition of financial assets measured at amortised cost

    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

    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

        Net cash used in investing activities

Cash flows from financing activities:

    Increase in short-term loans

    Decrease in short-term loans

    Proceeds from bonds issued

    Bonds issuance costs

    Redemption of bonds

    Proceeds from long-term loans

    Repayments of long-term loans

    Increase in guarantee deposits

    Decrease in guarantee deposits

    Cash payments for the principal portion of the lease liability

    Cash dividends

    Treasury stock acquired

    Treasury stock sold to employees

    Change in non-controlling interests

    Others

        Net cash provided by (used in) financing activities

Effect of exchange rate changes on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

439,145

(20,000)

-

-

(5,025)

42,150

714,358

326,127

-

(59,900)

30,611

-

27,200

(785,772)

(48,034,633)

(26,345,302)

216,314

(274,015)

220,750

(1,924,924)

2,498,984

(37,121,310)

22,132,639

(125,917)

(62,163,400)

7,205,015

(16,179,231)

25,760,800

(57,108)

(2,000,000)

15,560,661

(11,472,124)

14,812,963

(593,555)

(699,680)

(19,871,129)

-

-

23,430

65

12,490,107

(2,104,503)

38,574,095

94,048,036

$

132,622,131

$

1,737,125

(160,254)

448,893

(2,009,031)

242,264

(18,422,183)

5,984,342

(7,049)

(40,111,501)

16,271,732

(17,205,124)

-

-

(13,702,875)

13,528,900

(13,391,980)

303,720

(363,539)

(726,626)

(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

94,048,036

The accompanying notes are an integral part of the consolidated financial statements.

190

United Microelectronics Corporation  |  Annual Report 2021e
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245

Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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247

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255

Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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266

United Microelectronics Corporation  |  Annual Report 2021 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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, 2021 and 2020

(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

        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 subsidiaries, associates and joint ventures

        Gain on disposal of property, plant and equipment

        Loss (gain) on disposal of investments

        Exchange gain on financial assets and liabilities

        Amortization of deferred government grants

        Others

            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)

                Net cash provided by operating activities

(continued)

For the years ended December 31,

2021

2020

$

60,680,948

$

29,834,672

24,674,586

2,372,034

(6,617)

(1,195,142)

547,988

(228,165)

(726,395)

1,745,745

(17,876,394)

(250,900)

776

(114,215)

(1,188,811)

192,734

7,947,224

684,820

(65,236)

(6,003,704)

66,090

958,972

(967,574)

71,566

(39,030)

146,727

108,549

3,485,059

(491,098)

(482,809)

10,688

66,111,192

233,626

2,202,578

(301,825)

(1,318,511)

66,927,060

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)

-

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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

50,600,470

468,405

972,612

(408,427)

517,370

52,150,430

267

Financial Review268

United Microelectronics Corporation  |  Annual Report 2021e
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315

Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UMC  and  its  Affiliated  Enterprises  have  Not  Faced 
Financial  Difficulties  during  Recent  Years  up  to  the 
Annual Report Printing Date

334

United Microelectronics Corporation  |  Annual Report 2021United Microelectronics Corporation

Representative: Stan Hung