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United Microelectronics

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FY2022 Annual Report · United Microelectronics
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United Microelectronics Corporation
2022 Annual Report

Printed on February 22, 2023

UMC annual report is available at:

https://www.umc.com

https://mops.twse.com.tw

TSE : 2303

NYSE : UMC

Annual Report
2022

Spokesperson

Fab 8F

Chitung Liu
Senior Vice President and Chief 
Financial Officer
886 (2) 2658 9168
Chitung_Liu@umc.com

Acting Spokesperson(s)

Jinhong Lin
Finance Division
Senior Director
886 (2) 2658 9168
Jinhong_Lin@umc.com

David Wong 
Finance Division
Manager
886 (2) 2658 9168
David_Wong@umc.com

Headquarters

No. 3, Li-Hsin 2nd Rd., Hsinchu 
Science Park, Hsinchu, Taiwan 300094, 
R.O.C.
886 (3) 578 2258

Taipei Office

8F, No. 68, Sec. 1, Neihu Rd., Taipei, 
Taiwan 114066, R.O.C.
886 (2) 2658 9168

Fab 8A
No. 3、5, Li-Hsin 2nd Rd., Hsinchu 
Science Park, Hsinchu, Taiwan 300094, 
R.O.C.
886 (3) 578 2258

Fab 8C & Fab 8D
No. 6、8, Li-Hsin 3rd Rd., Hsinchu 
Science Park, Hsinchu, Taiwan 300094, 
R.O.C.
886 (3) 578 2258

Fab 8E

No. 17, Li-Hsin Rd., Hsinchu Science 
Park, Hsinchu, Taiwan 300094, R.O.C.
886 (3) 578 2258

No. 3, Li-Hsin 6th Rd., Hsinchu Science Park, 
Hsinchu, Taiwan 300096, R.O.C.
886 (3) 578 2258

Fab 8S

No. 16, Creation 1st Rd., Hsinchu Science Park, 
Hsinchu, Taiwan 300093, R.O.C.
886 (3) 578 2258

Fab 12A
No. 18、20, Nanke 2nd Rd., Southern Taiwan 
Science Park, Sinshih Dist. Tainan City, Taiwan 
744092, R.O.C.
No. 57, Nanke 3nd Rd., Southern Taiwan Science 
Park, Sinshih Dist. Tainan City, Taiwan 744094, 
R.O.C.
886 (6) 505 4888

Singapore Branch

No. 3, Pasir Ris Drive 12, Singapore 519528
65 6213 0018

Subsidiary in Mainland China
HJ

No. 333, Xinghua St., Suzhou Industrial Park, 
Suzhou, Jiangsu Province 215025, P.R.C.
0512 65931299

Subsidiary in Mainland China
USCXM

No. 899, Wan Jia Chun Road, Xiang’an District, 
Xiamen, Fujian Province 361101, P.R.C.
0592 7687888

Subsidiary in Japan
USJC

2000, Mizono, Tado-cho, Kuwana, Mie,
511-0118, Japan
81 59 448 5512

Wavetek

Securities Dealing Institution

Horizon Securities Co., Ltd.
Stock Registration Department
3F, No.236, Sec. 4, Hsin-Yi Rd., Taipei, 
Taiwan 106047, R.O.C.
886 (2) 2326 8818
https://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
https://www.adr.com

ADR Exchange Marketplace

NYSE Euronext
11 Wall Street
New York, NY 10005, U.S.A.
1 (212) 656 3000
https://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
https://www.sgx.com
EB Search Code: ISIN XS2358241243

Auditors

Ernst & Young, Taiwan
Wan-Ju Chiu, Hsin-Min Hsu
9F, No. 333, Sec. 1, Keelung Road,
Taipei, Taiwan 110208, R.O.C.
886 (2) 2757 8888
https://www.ey.com

No. 10, Chuangxin 1st Rd., Hsinchu Science Park, 
Baoshan Township, Hsinchu, Taiwan 300092, R.O.C.
886 (3) 578 1259

Corporate Website

https://www.umc.com

Table of Contents

Letter to Shareholders 

  4 

Capital Overview 

      85

Corporate Profile 

9 

Corporate Profile and Date of Establishment

10  Corporate Milestones

86  Capital and Shares

  8 

91 

Issuance of Corporate Bonds

97  Preferred Shares

98  American Depositary Receipts

Corporate Governance Report  

    13 

14  Corporate Organization

16  Directors’ and Managers’ Information

35  Corporate Governance Practices

78 

79 

Information of Certified Public Accountant (CPA) Fees

Information on Replacement of CPAs

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 Options Handling Status

100  Issuance of Restricted Stock Awards for Employees 

106  Status of New Shares Issuance in Connection with  

Mergers and Acquisitions

107  Funding Plans and Implementation

Operations Overview                                 108

109  Business Activities

116  Overview of Market, Production, and Sales

119  Employees

120  Environmental Expenditure Information

80  Change in Shareholding of Directors, Managers and Major  

120  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

123   Information Security Management

125  Major Contracts

2

United Microelectronics Corporation  |  Annual Report 2022 
 
 
 
 
 
 
 
Review of Financial Position, Operating 127  
Results, Risk Management

Financial Review 

172  Condensed Balance Sheets

171

174  Condensed Statements of Comprehensive Income

176  Financial Analysis

180  Audit Committee’s Review Report

181  Financial Statements – Consolidated

257  Financial Statements – Parent Company

128  Financial Position

129  Financial Performance

130  Cash Flow

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

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

131  Risk Management and Evaluation

142  Other Necessary Supplements

Corporate Sustainable Development       143

144  Description of Sustainable Management

148  About Social Charity

151  Environmental Protection, Safety and Health  

Management

Special Disclosures                                  157

158  Summary of Affiliated Enterprises

170 

Issuance of Private Placement Securities

170  Acquisition or Disposal of UMC Shares by Subsidiaries

170  Other Necessary Supplements

170  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

 
 
 
 
 
 
 
After  two  years  of  prosperous  growth,  the  semiconductor  industry 

Profit attribute to shareholders of the parent company rose 56.3% to 

experienced a turn in sentiment starting in the first half of 2022. The 

NT$87.2 billion, with full-year earnings per share of NT$7.09. Revenue 

cyclical nature of our industry as well as geopolitical developments 

from our 22/28nm portfolio was up 56% compared with 2021, driven by 

led to a sharp slowdown consumer end-market demand. Despite the 

strong demand for OLED display drivers and image signal processors. 

weakened  business  environment,  UMC  delivered  another  year  of 

Our automotive business also delivered impressive growth in 2022, 

outstanding results thanks to our employees, partners, and customers. 

with revenue increasing 82% year-on-year to account for 9% of total 

In 2022, our full year revenue increased to NT$278.7 billion as operating 

sales. Capital expenditure for the year was US$2.7 billion, most of which 

income  eclipsed  NT$100  billion.  Over  the  past  several  years,  we 

was for the expansions of Fab 12A in Tainan, Taiwan and Fab 12i in 

focused on enhancing our product mix, technology offering, and cost 

Singapore. The remainder was used in the optimization of product mix 

competitiveness, efforts which have significantly improved profitability. 

across all fabs.

We are confident that UMC will demonstrate our resilience through this 

period of market volatility. Our commitment to sustainable business 

Technology Leadership and Development   

practices was once again recognized by the Dow Jones Sustainability 

UMC is a leader in logic and specialty process technology, providing 

Indices (DJSI), which ranked UMC first among semiconductor foundry 

foundry solutions for all major segments of the semiconductor industry. 

peers. We strive to be a responsible company that cares about our 

In 2022, UMC invested NT$13 billion in research and development to 

employees, our communities, and our planet. UMC will also continue 

enhance our technology offering for the 5G, AI, IoT, and automotive 

to  enhance  our  differentiated  specialty  technologies,  diversify  our 

markets. In our logic portfolio, our 28nm high performance computing 

manufacturing footprint, and strengthen partnerships with key customers 

(28HPC+) technology was adopted for image signal processors (ISP) 

in order to maximize sustainable returns for our shareholders.

used  in  a  top-end  200-megapixel  mobile  image  sensor,  which  has 

successfully entered production. In addition, our 28HPC+ millimeter 

2022 Business Overview  

wave (mmWave) solution has been verified, tailored for 5G mmWave 

In 2022, UMC shipped a total of 9.9 million 8-inch equivalent wafers, 

devices. For our 22nm logic platform, the automotive Grade-1 design 

up 0.8% from a year earlier. Overall utilization rate across our fabs 

specification is ready, and has completed reliability verification. We are 

exceeded 100%. Full-year revenue increased 30.8% to a record high 

also developing our 22nm ISP platform, which will offer superior power 

of NT$278.7 billion and operating income exceeded NT$100 billion. 

efficiency and performance compared with the existing 28nm solution 

Gross margin was lifted to 45.1% while operating margin was 37.4%. 

in the market. Suitable for a broad range of high-end applications, our 

44

14nm  FinFET  compact  (14FFC)  process  is  available  for  customers 

random-access memory (MRAM) product for aerospace applications 

seeking a high-performance and power efficient solution. In 2022, UMC 

has entered trial production. For our industry-leading embedded high 

continued to strengthen our leadership in specialty process technologies. 

voltage (eHV) platform, our 22nm 25V low-temperature polycrystalline 

Leading the industry in manufacturing 12-inch RFSOI wafers, UMC’s 

oxide (LTPO) OLED display driver has been verified and is expected 

share  of  the  RFSOI  market  increased  from  2021  to  18%.  To  target 

to enter trial production in 2023. For power management solutions, we 

future  high-frequency  applications  above  40GHz,  we  have  started 

have completed the silicon model, design specification, and automotive 

development of 22nm RFSOI technology. Ranging from 180nm to 22nm, 

intellectual property blocks for our 0.11-micron bipolar-CMOS-DMOS 

our complete embedded non-volatile memory (eNVM) solutions cater 

(BCD) platform. Lastly, our wafer-to-wafer hybrid bonding solution has 

to a wide range of applications, and a customer’s magneto-resistive 

been verified by a customer and will enter trial production in 2023.

5

Letter to Shareholders Intellectual Property   

Corporate Sustainability     

Intellectual property (IP) is at the core of business growth and corporate 

Driven by our sustainability vision, UMC strives to balance business 

competitiveness for the semiconductor industry. As industry players 

needs with the advancement of our environment, social, and governance 

vie for technology leadership, UMC strives to protect and leverage our 

(ESG) responsibilities. In 2022, our climate targets were verified by the 

IP assets by linking our patent and trade secret protection mechanism 

Science Based Targets Initiative, an important milestone in our roadmap 

with the Company’s business strategy. In 2022, we added 348 patents 

to achieve net zero emissions by 2050. We also introduced an initiative 

to our portfolio, including 199 in the United States, 37 in Taiwan, and 

during  the  year  to  assist  suppliers  with  greenhouse  gas  emissions 

108 in China, bringing the cumulative number of patents to 14,771. As 

inventory and management in order to accelerate reduction of emissions 

trade secret protection become increasingly critical, UMC has stepped 

in the supply chain. 

up internal compliance training and established a robust IP management 

system.  In  2022,  UMC  achieved  Taiwan  Intellectual  Proper ty 

Honors and Awards 

Management System (TIPS) certification for the second year, with our 

In  2022,  we  were  honored  with  numerous  awards  and  recognitions 

certification level improving from A to AA, underscoring our unwavering 

domestically and internationally for our achievements in sustainable 

commitment to IP and corporate governance best practices.

development,  information  disclosure,  corporate  governance, 

environmental protection, and customer service. These include CDP’s “A 

List” for climate change and water security, “A” ESG rating by MSCI, and 

“top 5%” ranking in the Taiwan Stock Exchange’s Corporate Governance 

Evaluation.

66

United Microelectronics Corporation  |  Annual Report 2022Outlook                

flexibility of how we allocate capacity while expanding our geographically 

Driven  by  the  megatrends  of  5G,  Artificial  Intelligence  of  Things 

diverse manufacturing base to fulfill our customers’ wafer demand. We 

(AIoT), and electrification of vehicles, we remain positive on the long-

are planning ahead to stay ahead, ensuring UMC is well positioned 

term demand for semiconductor content. In the near term, we expect 

to  take  advantage  of  the  next  industry  upturn.  Lastly,  we  will  press 

challenges to persist amid the cyclical industry downturn and geopolitical 

ahead with our ESG initiatives and demonstrate our commitment to a 

environment; yet, it is also an opportune time for UMC to look inward 

sustainable future. 

and adjust our pace where necessary. We will continue to innovate 

and differentiate our specialty technology offering to increase UMC’s 

In closing, we are deeply grateful to all our shareholders for your ongoing 

competitiveness as well as enabling our customers to succeed in their 

support of UMC. We are excited for what is to come as we strive towards 

markets. Amid the current geopolitical climate, we are increasing the 

our vision of unleashing the power of technology for a better world. 

President: SC Chien

Chairman: Stan Hung

President: Jason Wang

77

Letter to Shareholders Corporate Profile

9 
10 

Corporate Profile and Date of Establishment
Corporate Milestones

8

United Microelectronics Corporation  |  Annual Report 2022Corporate Profile and Date of Establishment

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

products down to 14nm. UMC’s second 12-inch fab, Fab 12i, is located in 

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

Singapore. This facility is the company’s specialty technology center that 

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

provides highly specialized processes on 12-inch manufacturing to serve 

and specialty technologies to serve every major sector of the electronics 

a diverse range of product applications. United Semi, located in Xiamen, 

industry. UMC’s comprehensive technology and manufacturing solutions 

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

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

and  began  volume  production  in  2016.  United  Semi  serves  China’s 

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

vast  IC  market  and  provides  high  quality,  geographically  diversified 

manufacturing  certification  for  all  its  manufacturing  facilities.  UMC 

manufacturing  for  our  foundry  customers.  Japan-based  USJC,  fully 

operates  12  fabs  that  are  strategically  located  throughout  Asia  with  a 

acquired in October of 2019, is UMC’s fourth 300mm fab. USJC offers 

maximum capacity of approximately 850,000 8-inch equivalent wafers 

foundry  volume  production  for  mature  specialty  nodes  ranging  from 

per month. The company has offices in Taiwan, China, Europe, United 

90-nanometer to 40-nanometer.

States, Japan, Korea and Singapore. 

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. 

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

12-inch fabs. Fab 12A in Tainan, Taiwan has been in volume production 

for  customer  products  since  2002  and  is  currently  manufacturing 

9

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 2022 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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

December, 2010 

12-inch fab Fab 12A Phase 3 began production

October, 2011 

28nm process began pilot production

May, 2012 

Groundbreaking ceremony for Fab 12A's new Phase 5 & 6  
in Tainan Science Park

March, 2013  

Acquired HeJian Fab based in Suzhou, China

May, 2013 

Established its Specialty Technology Center of Excellence  
in Singapore 

August, 2014 

Joined Fujitsu’s new foundry company 

March, 2015  

Groundbreaking of United Semi (Xiamen) Fab 

November, 2016 

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

February, 2017 

Entered mass production for 14nm customer ICs 

June, 2018 

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

October,  2019 

Acquired 100% of MIFS 300mm fab, renamed USJC 

May,  2020 

Celebrated 40th Anniversary

April, 2021 
                                                  in Tainan

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

June, 2021 

          UMC joined RE100 and pledged net zero emissions by 2050

February, 2022 

          UMC announced expansion of Fab 12i in Singapore (P3 facility)

December, 2022 

          UMC selected as a DJSI global component for 15th consecutive year

11

Corporate Profile 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12

United Microelectronics Corporation  |  Annual Report 2022Corporate Governance Report 

14 
16 
35 
78 
79 
79 

Corporate Organization
Directors’ and Managers’ Information
Corporate Governance Practices
Information of Certified Public Accountant (CPA) Fees
Information on Replacement of CPAs
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.

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

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.

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 2022 
 
 
 
 
 
 
Corporate 

Manufacturing 

& Operation 

Resource 

Finance

Planning

Integration

Corporate  

Legal, IP & 

Human 

Development 

Compliance

Resources

Public Affairs 

and Corporate 

Communications

New Business 

Development 

Corporate and Operation Planning

Human Resources

•  Develop capacity plans and operational resource integration, and  

assist in production and sales coordination.

Manufacturing  Resource Integration

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

Finance

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

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

Public Affairs and Corporate Communication

•  Responsible for communications with stakeholders and the media, 

•  Responsible for UMC's finances and accounting management, and 

and management of UMC's corporate image.

serve as spokesperson for UMC.

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.

New Business Development

•  Responsible for developing, assessing and managing new ventures. 

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
62 years old

2021.07.07 
<2008.07.16>

2024.07.06

49,301,452

0.40

52,601,452

0.42

Independent 
Director

R.O.C.

Wenyi Chu

Female
56 years old

2021.07.07
<2015.06.09>

2024.07.06

Independent 
Director

R.O.C.

Lih J. Chen

Male
76 years old

2021.07.07
<2018.06.12>

2024.07.06

Independent 
Director

R.O.C.

Jyuo-Min Shyu Male

69 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

71 years old

2021.07.07
<2021.07.07>

2024.07.06

0

0

0

0

16

United Microelectronics Corporation  |  Annual Report 2022Experience (Education)

Selected Current Position at UMC and Other Companies

Spouse & Minor
Shareholding

Common 
Shares

%

1,269,435

0.01

Chairman, UMC
Bachelor in Accounting,  
Tamkang University

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

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.

Independent Director, Winmate Inc.

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
46 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
61 years old

2021.07.07
<2009.06.10>

2024.07.06

12,547,222

0.10

12,547,222

0.10

Director

R.O.C.

N/A

Hsun Chieh 
Investment Co., 
Ltd.

2021.07.07
<1995.06.21>

R.O.C.

Representative:
SC Chien

Male
65 years old

2021.07.07
<2016.03.01>

2024.07.06

441,371,000

3.55

441,371,000

3.53

2024.07.06

9,294,648

0.07

12,594,648

0.10

Director

R.O.C.

Silicon Integrated 
Systems Corp.

N/A

2021.07.07
<2005.06.13>

2024.07.06

285,380,424

2.30

266,580,424

2.13

U.S.A.

Representative:
Jason Wang

Male
60 years old

2021.07.07
<2015.06.09>

2024.07.06

18,715,000

0.15

22,015,000

0.18

Note 1: Present shareholding figures are actual number of shares held on January 31, 2023.

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.

18

United Microelectronics Corporation  |  Annual Report 2022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

Director, UMC
Master in International Finance, Meiji University

Director, Unimicron Technology Corp.; 
Chairman, Sunrox International, Inc.;
Chairman, Sunrox Industries, Inc.

N/A

N/A

N/A

N/A

0

0

Director, UMC
Bachelor in Chemical Engineering, National Taiwan 
University

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

N/A

N/A

N/A

N/A

0

0

Director, UMC
Business Administration, San Jose State University

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

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 Investment Co., Ltd. (63.51%); UMC (36.49%)

Silicon Integrated Systems Corp.

UMC  (19.02%);  Hsun  Chieh  Investment  Co.,  Ltd.  (4.80%);  Hsing-Sen  Liu  (1.38%);  Lung-Hsiung  Yeh  (1.28%);  Vanguard 
Emerging Markets Stock Index Fund, a series of Vanguard International Equity Index Funds (1.19%); JPMorgan Chase Bank 
N.A., Taipei Branch in custody for Vanguard Total International Stock Index Fund, a series of Vanguard Star Funds (1.16%); 
Standard Chartered Bank Limited as custodian of Credit Suisse International (0.55%); Cong-Ming Zhuang (0.49%); Vanguard 
Fiduciary Trust Company Institutional Stock Market Index Trust II (0.47%); Kao-Huang Lin (0.37%)

Major Shareholders of UMC’s Major Institutional Shareholders

Name of Institutional Shareholders Major Shareholders (Holding Percentage)

Shieh Yong Investment 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 2022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

1

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 seven years, two directors for four 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.

(3)There are two seats reserved for female directors, and more than one half of the director seats are independent directors for the Board. UMC will enhance diversity and independence of 

the Board continuously based on the status quo.

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

52,601,452

0.42

1,269,435

President

R.O.C.

SC Chien

Male

2004.11.23

12,594,648

0.10

President

U.S.A.

Jason Wang

Male

2014.12.24

22,015,000

0.18

Executive Vice 
President

R.O.C.

Ming Hsu

Male

2015.06.08

4,618,000

0.04

Senior Vice President R.O.C.

Oliver Chang

Male

2020.02.26

2,740,589

0.02

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

3,850,217

0.03

150,000

0.00

Senior Vice President 
& General Counsel

R.O.C.

Lucas S Chang

Male

2018.01.01

1,500,000

Vice President

R.O.C.

TS Wu

Male

2013.01.01

2,449,809

0.01

0.02

Vice President

R.O.C.

C C Hsu

Male

2013.01.01

3,141,068

0.03

Vice President

R.O.C.

M C Lai

Male

2015.03.30

3,215,863

0.03

Vice President

R.O.C.

S F Tzou

Male

2013.01.01

1,374,108

0.01

Vice President

R.O.C.

Osbert Cheng

Male

2014.08.01

1,349,000

0.01

0

304

0

0

0

0

0

0.00

0

0

0

0

22

United Microelectronics Corporation  |  Annual Report 2022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

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, eJoule International Limited 

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

None

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

Director, Chipbond Technology Corporation

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, Yann Yuan Investment Co., Ltd.;
Director, UMC Group (USA); 
Director, Green Earth Limited; 
Director, ECP Vita Pte. Ltd.; 
Director, UMC Capital Corp.; 
Director, United Microchip Corporation

Independent 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

1,029,791

Present Shareholding

Spouse &  
Minor Shareholding

Common 
Shares

%

0.01

Common 
Shares

0

%

0

Vice President

R.O.C.

Steven Hsu

Male

2016.03.16

1,104,000

0.01

2,889

0.00

Vice President

R.O.C.

Wenchi Ting

Male

2017.01.03

490,000

0.00

Vice President

R.O.C.

Jerry CJ Hu

Male

2013.04.02

2,334,000

0.02

Vice President

R.O.C.

Y S Shen

Male

2014.01.13

2,039,000

0.02

Vice President

R.O.C.

Steven S Liu

Male

2017.04.24

2,790,000

0.02

0

0

0

0

0

0

0

0

Vice President

R.O.C.

SR Sheu

Male

2008.07.16

2,507,892

0.02

786,017

0.01

Vice President

R.O.C.

M L Liao

Male

2008.07.16

4,081,809

0.03

152,138

0.00

Vice President

R.O.C.

S S Hong

Male

2013.01.01

1,355,406

0.01

0

0

Vice President

R.O.C.

Francia Hsu

Female

2016.03.16

1,966,000

0.02

7,000

0.00

Vice President

R.O.C.

Mindy Lin

Female

2018.05.14

2,074,925

0.02

781,408

0.01

Vice President

R.O.C.

Linwu Kuo

Male

2021.06.15

0

0

Vice President & Chief 
Human Resources 
Officer

R.O.C.

Eric Chen

Male

2011.02.14

2,029,000

0.02

Note 1: Those who currently serve in their respective positions on the publication date of the Annual Report.

Note 2: Present shareholding figures are actual number of shares held on January 31, 2023.

Note 3: Shares under Trust with Discretion Reserved are not included in present shareholding figures of Chitung Liu and G C Hung.

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

Note 5: Managers are not spouses or relatives within the second degree of kinship of other managers.

Note 6: Managers’ election date is the same date they assumed their positions.

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

0

0

0

0

24

United Microelectronics Corporation  |  Annual Report 2022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

Director, United Semiconductor Japan Co., Ltd.

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;
Supervisor, Master Transportation Bus Manufacturing Ltd.

Director, Best Elite International Limited

25

Corporate Governance ReportRemuneration Paid to Directors (Including Independent Directors), Presidents and  
Vice Presidents
Directors’ Remuneration (Including Independent Directors’)(Note 1)

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 

20,000

20,000

480

780

20,480
0.02%

20,780
0.02%

0

0

0

0 

25,000

25,000

6,850

6,850

31,850
0.04%

31,850
0.04%

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

Director

Independent 
Director

Independent 
Director

Independent 
Director

Independent 
Director

Independent 
Director

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.

Note 1: All directors’ remuneration (including independent directors) is authorized to the board of directors according to their participation in the company's operations, contribution, and in 

consideration of general payment in the same industry.

Note 2: Including various bonuses, incentives and equity rewards (such as restricted stock award for employees), recognized salary expenses, etc.

26

United Microelectronics Corporation  |  Annual Report 2022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 (%)

Base Compensation 
Bonuses
and Special
Expenses etc. (E)(Note 2)

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

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

443,675

529,077

314

314

276,446

0

325,230

0

740,915
0.85%

875,401
1.00%

16,360

0

0

0

0

0

0

0

0

31,850
0.04%

31,850
0.04%

None

27

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

SC Chien, Jason Wang

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

Stan Hung, Ting-Yu Lin, 
Hsun Chieh Investment Co., Ltd.,
Silicon Integrated Systems Corp., 
Wenyi Chu, Lih J. Chen,
Jyuo-Min Shyu, Kuang Si Shiu,
Wen-Hsin Hsu

Stan Hung, Ting-Yu Lin, 
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, 
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, 
Hsun Chieh Investment Co., Ltd., 
Silicon Integrated Systems Corp.,
Wenyi Chu, Lih J. Chen, 
Jyuo-Min Shyu, Kuang Si Shiu, 
Wen-Hsin Hsu

Stan Hung, 
SC Chien, Jason Wang

Stan Hung, 
SC Chien, Jason Wang

Total

11

11

11

11

28

United Microelectronics Corporation  |  Annual Report 2022  
  
 
29

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

Compensation Paid to Presidents and Vice Presidents(Note 1)

Title

Name

Salary(A) Severance Pay and Pensions(B)

Bonuses and
Special Expenses etc.
(C)(Note 2)

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

President

President

Executive Vice 
President

Stan Hung

SC Chien

Jason Wang

Ming Hsu

Senior Vice President Oliver Chang

Senior Vice President 
& Chief Financial 
Officer
Senior Vice President  
& General Counsel

Chitung Liu

Lucas S Chang

Vice President

Vice President

Vice President

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

103,124

121,897

2,782

2,782

1,313,931

1,433,809

Note 1: All executive officers’ remuneration is calculated by referencing the Company’s operation results, future risks, corporate strategies, industry trends, and also individual contribution, 

and will be reviewed and approved by Remuneration Committee and Board of Directors. The Company will review the remuneration policy foresaid based on macroeconomics and 

business strategies to achieve both corporate sustainability and interest of stakeholders.

Note 2: Including various bonuses, incentives and equity rewards (such as restricted stock award for employees), recognized salary expenses, etc.

30

United Microelectronics Corporation  |  Annual Report 2022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

936,900

0

1,045,310

0

2,356,737
2.70%

2,603,798
2.99%

18,190

31

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

Lucas S Chang, Linwu Kuo

Linwu Kuo

Ming Hsu, 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

Lucas S Chang, 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

Stan Hung, SC Chien, Jason Wang, Oliver Chang, 
Chitung Liu

Stan Hung, SC Chien, Jason Wang, Ming Hsu, 
Oliver Chang, Chitung Liu

25

25

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

32

United Microelectronics Corporation  |  Annual Report 2022  
 
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

0

936,900

936,900

1.07

33

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 Officers’ Compensation  
to Net Income (%)

2022

2021

The Company

Companies in 
the Consolidated                              
Financial Statements

The Company

Companies in 
the Consolidated                              
Financial Statements

87,198,291

87,198,291

55,780,255

55,780,255

0.06

2.70

0.06

2.99

0.0 6

2.28

0.0 6

2.45

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) 

and other factors, and variable compensation is based on the execution 

Compensation

and achievement status of the operating strategy and objectives that the 

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

manager  is  responsible  for.  Evaluation  index  of  variable  compensation 

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

shall  include  financial  performance  index,  which  are  return  on  equity 

Independent  Directors)  compensation  for  each  profitable  fiscal  year 

(ROE) % and operating margin (OM) %, and sustainability index, including 

after offsetting any cumulative losses. Directors (including Independent 

increasing revenue proportion and market share of sustainable products, 

Directors)  may  only  receive  compensation  in  cash.  In  accordance 

integrate UMC's core capabilities, minimize environmental footprint, and 

with  Article  17,  remunerations  for  all  directors  (including  Independent 

create social value. UMC is committed to the advancement of the three 

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

aspects of ESG (environmental, social, governance), therefore, in addition 

meeting of shareholders according to involvements and contributions to 

to the Company's competitiveness in the industry, performance on ESG 

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

targets is added to key performance metrics in order to align the interests 

of the same industry. The Company instituted the Rules for Performance 

of executives with that of the Company, making corporate sustainability a 

Evaluation  of  the  Board  of  Directors  and  annually  executive  self-

common goal.

evaluation  of  the  Board  and  the  performance  self-assessment  of  each 

director. In addition to self-assessments, the performance of the Board is 

UMC  shall  assess  the  performance  of  directors  and  officers  according 

assessed by an external independent professional institution or a panel 

to  the  Rules  for  Performance  Assessment  of  the  Board  of  Directors 

of  external  experts  and  scholars  at  least  once  every  three  years.  Both 

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

performance appraisal and compensation rationality shall be reviewed by 

decide their compensation. An adequate compensation scheme will be 

Remuneration Committee and Board of Directors.

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

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

Policy for Management Team’s Compensation 

performance  assessment  and  compensation  proposals  were  reviewed 

The Company annually evaluates its salary level with similar industries to 

and  approved  by  Remuneration  Committee  and  Board  of  Directors. 

ensure the Company’s competitiveness. The Company’s salary structure 

The  Company  will  review  the  remuneration  policy  foresaid  based  on 

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

macroeconomics  and  business  strategies  to  achieve  both  corporate 

reflect the achievements for individuals and teams. Fixed compensation 

sustainability and interest of stakeholders.

is determined based on job duties and relative importance of the position 

34

United Microelectronics Corporation  |  Annual Report 2022 
Corporate Governance Practices
Information of Board Meeting Operation

Board Meetings were held 6 times in 2022; all independent directors attended each meeting in person; the attendance rate of all directors was 100.00%; 
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

Attendance 
in Person

By Proxy

Attendance Rate (%)

Remarks

6

6

6

6

6

6

6

6

6

0

0

0

0

0

0

0

0

0

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

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.

Other Matters to Be Recorded:
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 37-39 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:

Date of Board Meeting

Name of Director

Contents of Motion

Cause for Avoidance

Participation in Voting

February 24, 2022

June 1, 2022

July 27, 2022

December 14, 2022

Stan Hung, Chairman
SC Chien, Director

All the directors

Stan Hung, Chairman
SC Chien, Director
Jason Wang, Director

Stan Hung, Chairman
SC Chien, Director
Jason Wang, Director

Stan Hung, Chairman
SC Chien, Director
Jason Wang, Director

Stan Hung, Chairman
SC Chien, Director
Jason Wang, Director

Approved UMC’s donation 
to UMC Science and Culture 
Foundation.
Approved the amount and 
ratio of the 2021 distributable 
compensation for directors.

Concurrently serve as the 
director of UMC Science and 
Culture Foundation.
the amount and ratio of 
distributable compensation for 
directors are related to directors’ 
interest.

Did not participate in discussion 
and voting.

Each director did not participate 
in discussion and voting for the 
amount and ratio of distributable 
compensation for him/her.

Approved the compensation 
proposal for managers.

Concurrently serve as a 
manager of the Company.

Did not participate in discussion 
and voting.

Approved the compensation 
proposal for managers.

Concurrently serve as a 
manager of the Company.

Did not participate in discussion 
and voting.

Approved the compensation 
proposal for managers.

Concurrently serve as a 
manager of the Company.

Did not participate in discussion 
and voting.

Approved the compensation 
proposal for managers.

Concurrently serve as a 
manager of the Company.

Did not participate in discussion 
and voting.

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 to account for corporate 
governance matters and assist in supervision of the Board, 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 comprises of 9 members, including 5 seats for independent directors and 1 for a non-executive director; 3 serve as administrative directors. 
More than one half of the director seats are independent directors. There are 2 seats currently reserved for a female director. Based on our policy of gender equality, 
UMC will increase the female director seats progressively.

35

Corporate Governance ReportExecution Status of the Board Evaluation

Evaluation Cycle Evaluation Period

Evaluation Scope

Evaluation Method

Evaluation Content

Annually

2022/1/1~2022/12/31

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.

4. Evaluation Result:

for  2022  of 

the  self-
The  Nominating  Committee  conducted 
evaluation 
the  Board  of  Directors, 
functional  committees  (include  Audit  Committee, 
Remuneration Committee, Capital Budget Committee 
and  Nominating  Committee)  and  individual  board 
members  and  reported  the  result  to  the  Nominating 
Committee  and  Board  of  Directors  on  February  22, 
2023.  The  performance  result  was  "Excellent".  The 
Chief  Corporate  Governance  Officer  will  persist  in 
improving  communication  with  directors  to  enhance 
the quality of the Board of Directors' meetings.

36

United Microelectronics Corporation  |  Annual Report 2022     
     
     
     
     
     
     
     
     
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 2022 a total of five meetings 
were convened; it shall also maintain good communication channels with 
the  Company’s  management,  Chief  of  Corporate  Governance  Officer, 
internal auditors and independent auditors.

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 assessing 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 five Audit Committee meetings in 2022, and the attendance status is shown in the following table:

Title

Name

Attendance Proxy Attendance

Actual Attendance 
Rate (%)

Note

Independent 
Director

Independent 
Director

Independent 
Director

Independent 
Director

Lih J. Chen

Wenyi Chu

Jyuo-Min Shyu

Kuang Si Shiu

5

5

5

5

0

0

0

0

Wen-Hsin Hsu

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

0

5

100.00

Audit Committee convener

100.00

100.00

100.00

100.00

37

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

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

April 27, 2022, 
the 7th meeting of 
the 5th session

July 27, 2022, 
the 8th meeting of 
the 5th session

October 26, 2022, 
the 9th meeting of 
the 5th session

December 14, 2022, 
the 10th meeting of 
the 5th session

February 22, 2023, 
the 11th 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.

1.Approved the Q1, 2022 Consolidated Financial Statements.
2.Approved to decrease the endorsement and guarantee of the loan for 

None.

United Semiconductor (Xiamen) Co., Ltd.

3.Approved the acquisition of United Semiconductor (Xiamen) Co., Ltd.

1.Approved the Q2, 2022 Consolidated Financial Statements.

None.

1.Approved the Q3, 2022 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.

1.Approved the 2022 Consolidated Financial Statements (including  Parent 

None.

Company only Financial Statements).
2.Approved the 2022 Business Report.
3.Approved the 2022 Earnings Distribution Chart.
4.Approved the 2022 Statement of Internal Control System.
5.Approved to change Certified Public Accountant due to the internal 

reorganization of the CPA firm.

6.Approved the content of appointed service and fee for the independent 

auditor appointed in 2023.

7.Approved the Company’s donation to UMC Science and Culture Foundation.
8.Approved the change of Chief Internal Auditor.

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 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.

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

38

United Microelectronics Corporation  |  Annual Report 2022 
Operation of the Audit Committee (Continue)

(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 2022.

2. Implementation of avoidance of independent director with respect to motion of stake: there was no such situation in the Audit Committee in 2022. 

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.

39

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?

40

United Microelectronics Corporation  |  Annual Report 2022 
 
 
 
 
 
 
 
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_eng.pdf.

None

UMC has established an internal operating procedure for personnel of Finance Department, Legal Affairs Department 
and Compliance Department to deal with shareholders’ suggestions, doubts, disputes and litigations, and 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 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.

Please  refer  to  the  "Board  of  Directors  Information"  on  page  16,  and  the  “Disclosure  of  Directors’  Professional 
Qualifications and Independent Directors’ Independence Information" on page 21 of this annual report for information on 
the diversified composition policy and its implementation by the board members.

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

None

None

None

None

None

41

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)?

42

United Microelectronics Corporation  |  Annual Report 2022 
 
 
 
Deviations from “The Corporate 
Governance Best-Practice 
Principles for TWSE/TPEx Listed 
Companies” and Reasons

None

Implementation Status

Abstract Explanation

UMC has formulated Rules for Performance 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.  The  Nominating  Committee  conducted  the  self-evaluation  for  2022  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 22, 2023. The performance result was ‘Excellent’. The Chief Corporate Governance 
Officer will persist in improving communication with directors to enhance the quality of the Board of Directors' meetings.
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.  The  Rules  for 
Performance  Evaluation  of  the  Board  of  Directors  and  the  Results  of  the  Performance  Assessment  of  the  Board  of 
Directors,  please  refer  to  the  Company’s  website:  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 competence and independence of independent auditors. And the result is 
then submitted to the Board of Directors. The evaluation results of the most recent two years were completed on February 
24, 2022 and February 22, 2023. 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 

None

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 competence and independence of the independent auditor annually by reference to Audit Quality 
Indicators (AQIs). Evaluation items include the size and reputation of the accounting firm; independent auditors’ education 
and  experience;  quality  of  audit  services  (e.g.  CPAs’  workload  and  timing  of  audit  execution);  ratio  of  non-audit  fees; 
periodical communication and interaction between independent auditors, management, and internal the Audit Committee; 
whether  UMC’s  independent  directors  and  relevant  senior  executives  are  independent  from  the  independent  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 no major audit violations and 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. For continuing education/training of Corporate Governance Officer, please refer to pages 48 of this 
annual report.

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

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.

44

United Microelectronics Corporation  |  Annual Report 2022 
 
 
 
 
 
 
 
 
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  sustainability  issues 
and  contingency  plans  to  determine  appropriate  responses  and  publicly  discloses  relevant  stakeholder  communication 
information through the Sustainability 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  2022  annual  financial  report  was 
completed on February 22, 2023.

(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 46-47 of this annual report.  

(2) Board  meeting  attendance:  Please  refer  to  Page  35-39  on  Board  of  Directors  Operations  and  Audit  Committee 
  Operations, and Page 50-51 on Remuneration Committee Operations in this annual report.
(3) Risk  management  policies  and  risk  measurement  standards  implementation:  Please  refer  to  Page  131  on  Risk 
   Management and Evaluation in this annual report.
(4) Customer policy implementation: Please refer to Page 116 on Market, Production and Sales Overview in this annual report. 
(5) Employee Rights, Employment Care, Investor Relations, Supplier Relationships and Stakeholders Rights 
Implementation: Please refer to Page 54-67 on Promotion of Sustainable Development and Deviations from 
“Sustainable  Development  Best  Practice  Principles  for  TWSE/TPEx  Listed  Companies,  Page  144-156  on 
Corporate Sustainable Development in this annual report, and UMC Sustainability Report.

(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 2022 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 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. Also, in line with improvement measure of Corporate Governance Evaluation Index, UMC held the 2022 Annual General Meeting before the end of May, 
2022 to improve Corporate Governance continuously.

45

Corporate Governance Report 
 
Continuing Education/Training of Directors in 2022:

Title

Name

Study Period

Sponsoring 
Organization

Course

Chairman

Stan Hung

2022.07.26

2022.07.26

From

To

2022.10.25

2022.10.25

Independent 
Director

Wenyi Chu

2022.05.12

2022.05.12

INDEPENDENT 
DIRECTOR 
ASSOCIATION TAIWAN

INDEPENDENT 
DIRECTOR 
ASSOCIATION TAIWAN

TAIWAN STOCK 
EXCHANGE 
CORPORATION

ESG  Sustainability  Committee’s 
Carbon  Footprint  Verification, 
Carbon  Footprint  Certification, 
and  Regulation  &  Practical 
Operation  of  Carbon  Reduction 
Measures

Ten Golden Years Vs. Perfect 
Storm: the Opportunity and 
Challenge of Semi & ICT 
Industry in Taiwan

International Twin Summit

2022.09.22

2022.09.22

TAIWAN SECURITIES 
ASSOCIATION

Corporate Sustainability and the 
Development Trend of ESG

2022.10.19

2022.10.19

SECURITIES & FUTURES 
INSTITUTE

Independent 
Director

Lih J. Chen

2022.10.13

2022.10.13

2022.11.30

2022.11.30

Independent 
Director

Jyuo-Min 
Shyu

2022.04.20

2022.04.20

2022.05.12

2022.05.12

2022.11.18

2022.11.18

2022.12.06

2022.12.06

GREATER CHINA 
FINANCIAL AND 
ECONOMIC 
DEVELOPMENT 
ASSOCIATION

GREATER CHINA 
FINANCIAL AND 
ECONOMIC 
DEVELOPMENT 
ASSOCIATION

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

TAIWAN STOCK 
EXCHANGE 
CORPORATION

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

Insider Equity Trading 
Regulations Advocacy Meeting 
in 2022

Innovative Thinking of Digital 
Transformation

AI Thinking and Digital 
Transformation

The Legal Liability of Enterprise 
Director from the Perspective 
of Intellectual Property 
Management

International Twin Summit

Risk and Opportunities of 
Sustainability

Strengthen the Digital 
Toughness and Construct 
Information Security Governance 
Strengthening Strategy

Training 
Hours

Compliance 
with 
Regulations 
(Note)

3

3

2

3

3

3

3

3

2

3

3

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

46

United Microelectronics Corporation  |  Annual Report 2022Continuing Education/Training of Directors in 2022:

Title

Name

Study Period

Sponsoring 
Organization

Course

Independent 
Director

Kuang Si 
Shiu

From

To

2022.02.17

2022.02.17

2022.03.02

2022.03.02

TAIWAN SECURITIES 
ASSOCIATION

YUANTA FINANCIAL 
HOLDING CO., LTD.

2022.07.14

2022.07.14

TAIWAN SECURITIES 
ASSOCIATION

2022.08.11

2022.08.11

TAIWAN SECURITIES 
ASSOCIATION

2022.11.11

2022.11.11

SECURITIES & FUTURES 
INSTITUTE

Independent 
Director

Wen-Hsin 
Hsu

2022.10.11

2022.10.11

TAIWAN STOCK 
EXCHANGE 
CORPORATION

2022.10.19

2022.10.19

SECURITIES & FUTURES 
INSTITUTE

2022.11.11

2022.11.11

SECURITIES & FUTURES 
INSTITUTE

Director

Ting-Yu Lin

2022.05.04

2022.05.04

TAIWAN STOCK 
EXCHANGE 
CORPORATION

How to Avoid Landmine Stocks 
- the Application of Corporate 
Governance Risk

The Analysis of effect of Anti-Tax 
Avoidance Rules and Global Anti-
Base Erosion Rules in Taiwan

The Latest Trend of Anti-Money 
Laundering and Countering the 
Financing of Terrorism (Insider 
Trading Prevention Advocacy 
included)

Strengthen the Information 
Security Toughness of Financial 
Industry and the Trend & 
Practice of Risk Management in 
Financial Industry

Listed Companies-the Trading 
Strategy of Derivatives and 
Market Outlook Seminar

Release Conference 
2022: Reference guide for 
Independent Director & Audit 
Committee

Insider Equity Trading 
Regulations Advocacy Meeting 
in 2022

Listed Companies-the Trading 
Strategy of Derivatives and 
Market Outlook Seminar

International Twin Summit

Representative 
of Juristic-
Person Director

Representative 
of Juristic-
Person Director

2022.09.22

2022.09.22

TAIWAN SECURITIES 
ASSOCIATION

Corporate Sustainability and the 
Development Trend of ESG

2022.11.03

2022.11.03

SC Chien

2022.09.22

2022.09.22

TAIWAN CORPORATE 
GOVERNANCE 
ASSOCIATION

Fubon Insurance’s the Trend 
of ESG and Risk Management 
Seminar

TAIWAN SECURITIES 
ASSOCIATION

Corporate Sustainability and the 
Development Trend of ESG

2022.12.19

2022.12.19

SECURITIES & FUTURES 
INSTITUTE

Jason Wang

2022.07.26

2022.07.26

INDEPENDENT 
DIRECTOR 
ASSOCIATION TAIWAN

2022.10.25

2022.10.25

INDEPENDENT 
DIRECTOR 
ASSOCIATION TAIWAN

The Global Trend and Business 
Opportunity of Low-Carbon 
Economy and Low-Carbon 
Innovation in 2022

ESG Sustainability Committee’s 
Carbon Footprint Verification, 
Carbon Footprint Certification, 
and Regulation & Practical 
Operation of Carbon Reduction 
Measures

Ten Golden Years Vs. Perfect 
Storm: the opportunity and 
challenge of Semi & ICT 
Industry in Taiwan

Training 
Hours

Compliance 
with 
Regulations 
(Note)

3

1.5

3

3

3

3

3

3

2

3

3

3

3

3

3

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

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

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

47

Corporate Governance ReportContinuing Education/Training of Corporate Governance Officer in 2022:

Title

Name

Course Date

Organizer

Course Title

Course Hours

Senior Vice President & 
Chief Financial Officer

Chitung Liu

2022.02.17

2022.03.08

2022.04.18

2022.05.03

2022.05.04

ACCOUNTING RESEARCH 
AND DEVELOPMENT 
FOUNDATION
ACCOUNTING RESEARCH 
AND DEVELOPMENT 
FOUNDATION
ACCOUNTING RESEARCH 
AND DEVELOPMENT 
FOUNDATION
ACCOUNTING RESEARCH 
AND DEVELOPMENT 
FOUNDATION
TAIWAN STOCK EXCHANGE 
CORPORATION

ESG Sustainable Finance Trend Wave and Coping 
Strategies

Use ESG to Enhance Corporate Strategic 
Capabilities

Directors, Supervisors and Senior Executives 
Supervise the Company's Implementation of ESG

Analysis of the Latest Corporate Governance Policies 
and Corporate Governance Evaluation Practices

International Double Summit Online Forum

3

3

3

3

2

Continuing Education/Training of Managers in 2022:

Title

President

Name

Course Date

Organizer

Course Title

Course Hours

SC Chien

2022.07.08

UNITED 
MICROELECTRONICS 
CORP.

Enterprise Low-carbon Transformation Strategy 
Under the Trend of Net Zero

1

2022.08.26

UNITED 
MICROELECTRONICS 
CORP.

Talking About the Application of Work Emotions in 
Human Resource Management

1.5

2022.10.11
2022.10.18

UNITED 
MICROELECTRONICS 
CORP.

【Executive Program】Basic Thinking and 
Structure of Strategic Management

4

Senior Vice President

Oliver Chang

M C Lai

S F Tzou

Osbert Cheng

G C Hung

Jerry CJ Hu

M L Liao

S S Hong

Linwu Kuo

Eric Chen

SC Chien

Jason Wang

Ming Hsu

Chitung Liu

Lucas S Chang

TS Wu

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

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President & Chief 
Human Resources Officer

President

President

Executive Vice 
President

Senior Vice President & 
Chief Financial Officer

Senior Vice President & 
General Counsel

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

48

United Microelectronics Corporation  |  Annual Report 2022Continuing Education/Training of Managers in 2022:

Title

President

President

Executive Vice 
President

Name

Course Date

Organizer

Course Title

Course Hours

SC Chien

Jason Wang

Ming Hsu

Senior Vice President

Oliver Chang

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

M C Lai

G C Hung

Jerry CJ Hu

Y S Shen

SR Sheu

M L Liao

Francia Hsu

Mindy Lin

Linwu Kuo

Eric Chen

Senior Vice President

Oliver Chang

Senior Vice President & 
Chief Financial Officer

Chitung Liu

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

M C Lai

S F Tzou

Osbert Cheng

G C Hung

Jerry CJ Hu

Y S Shen

SR Sheu

Francia Hsu

Mindy Lin

Linwu Kuo

Eric Chen

2022.11.29

UNITED 
MICROELECTRONICS 
CORP.

【2022 Master Forum】Industry 3.5 and the 
Blue Lake Strategy

2022.12.08

UNITED 
MICROELECTRONICS 
CORP.

【Legal Course】2022 Introduction of Trade 
Secrets Act

2

2

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

results in 2022. The senior executive courses are as follows:
【2022 Master Forum】A total of one sessions were held, with a total of 84 supervisors participating, and a course satisfaction rating of 94%.
【Executive Program】A total of two sessions were held, with a total of 60 supervisors participating, and a course satisfaction rating of 98%.

49

Corporate Governance ReportInformation on the Members of the Remuneration Committee

The goal of Remuneration Committee's operation is to strengthen corporate governance and risk control, and to periodically evaluate and monitor the 

Company's remuneration system for its directors and managers while considering the provision of incentives to facilitate talent retention. The committee 

shall be composed of all the Company's independent directors, and convene meetings accordance with the laws.

Title

Name

Professional Qualifications and Experience

Meets Criteria of 
Independence

Independent 
Director (Convener)

Wenyi Chu

Members  of  the  remuneration  committee  are  composed  of  all  independent  directors.  For  further 

information of their professional qualification, please refer to this report on page 21.

Independent 
Director

Independent 
Director

Independent 
Director

Independent 
Director

Lih J. Chen

Jyuo-Min Shyu

Kuang Si Shiu

Wen-Hsin Hsu

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

1

0

1

2

2

50

United Microelectronics Corporation  |  Annual Report 2022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 six Remuneration Committee meetings in 2022 with the following attendance:

Title

Name 

Convener

Wenyi Chu

Committee 
Member
Committee 
Member
Committee 
Member
Committee 
Member

Lih J. Chen

Jyuo-Min Shyu

Kuang Si Shiu 

Wen-Hsin Hsu 

Number of 
Actual
Attendance

Number of Proxy
Attendance

Rate of Actual
Attendance (%) 

Note

6

6

6

6

6

0

0

0

0

0

100.00

100.00

100.00

100.00

100.00

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 2022:

Date/Meeting

Proposal 

Resolution

February 24, 2022,
The 2nd meeting of the 
5th session

April 27, 2022,
The 3rd meeting of the 
5th session

June 1, 2022,
The 4th meeting of the 
5th session

July 27, 2022,
The 5th meeting of the 
5th session

October 26, 2022,
The 6th meeting of the 
5th session

December 14, 2022,
The 7th meeting of the 
5th session

1. Directors’ 2021 remuneration.
2. Executive officers’ compensation structure 
and performance evaluation system review and 
executive  officers’  compensation  and  internal 
audit supervisor’s compensation proposals.

1. Directors' remuneration, and attendance fees 

adjustment.

1. Executive officers’ salary increase in 2022.
2. Proposal of executive officers’ compensation.

1. Proposal of executive officers’ compensation.

1. Issuance of restricted share award.

1. Proposal of executive officers’ compensation.

Approved by all 
members present in the 
meeting.

Approved by all 
members present in the 
meeting.

Approved by all 
members present in the 
meeting.

Approved by all 
members present in the 
meeting.

Approved by all 
members present in the 
meeting.

Approved by all 
members present in the 
meeting.

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

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

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

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.

51

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. Please refer to the Company’s website for related information: https://www.umc.com/en/Html/nominating_committee

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 2022. The attendance of the committee members was as follows:

Title

Name

Professional Qualification & Experience

Attendance 
in Person

By Proxy

Attendance Rate 
(%)

Remarks

Convener

Committee 
Member

Committee 
Member

Committee 
Member

Committee 
Member

Jyuo-Min Shyu  Members of the nominating committee are composed 
of  all  independent  directors.  For  further  information 
of their professional qualification, please refer to this 
report on page 21.

Wenyi Chu

Lih J. Chen 

Kuang Si Shiu

Wen-Hsin Hsu

2

2

2

2

2

0

0

0

0

0

100.00

100.00

100.00

100.00

100.00

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

Other Matters to Be Recorded:

1. Major resolutions of Nominating Committee in 2022:

Meeting on February 24, 2022, the 2nd meeting of the 3rd term:

(1) Amended the Company’s Sustainable Development Best Practice Principles. 

Meeting on October 26, 2022, the 3rd meeting of the 3rd term:

(1) Approved the ESG KPI Achievement linked with Employees’ Compensation.

(2) Amended the Company’s Corporate Governance Practice Principles.

(3) Amended the Company’s Policy for Nomination and Election of Directors.

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.

52

United Microelectronics Corporation  |  Annual Report 2022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 2022. 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

Committee 
Member

Committee 
Member

Committee 
Member

Committee 
Member

Wenyi Chu

Lih J. Chen 

Jyuo-Min Shyu 

Wen-Hsin Hsu

Members of the capital committee are composed of 
all  independent  directors.  For  further  information  of 
their  professional  qualification,  please  refer  to  this 
report on page 21.

5

5

5

5

5

0

0

0

0

0

100.00

100.00

100.00

100.00

100.00

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

Other Matters to Be Recorded:

1. Major resolutions of Capital Budget Committee in 2022:

Approved capital budget expenses of NT$128,475 million in 2022.

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.

53

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 sustainable development policies and responsible for reporting back to the Board?

2. Does the Company follow materiality principle to conduct risk assessment for environmental, social and corporate governance topics related to 

company operation, and establish risk management related policy or strategy?

3. Environmental Issues

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

54

United Microelectronics Corporation  |  Annual Report 2022 
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 and 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 to the Board of Directors in 2022 include: (1) 
ESG activities and achievements; (2) stakeholder communication; and (3) future focus. The achievement of employee’s 
remuneration linked to ESG KPI was also approved by Nomination Committee and the Board of Directors in this meeting. 
UMC  has  achieved  the  ESG  targets  and  the  allocation  of  employee  profit  sharing  percentage  would  be  increased 
accordingly. Other annual resolutions of the Board of Directors related to sustainability include issuing Restricted Stock 
Awards (RSA) which set MSCI ESG ratings achieved A or above as one of the performance indicators, “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 promotion results and plans to the ESG Steering Committee. The scope of the report includes the management 
and review of material issues in the areas 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  follow  materiality  principle  to  conduct  impacts  identification  and 
significance assessment for environmental, social and corporate governance issues related to the Company’s operations. 
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. 
In order to address significant risk issues, the Enterprise Risk Management Committee develops response strategies 
for major risk issues. It reports to the ESG Steering Committee 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.
For the details, please refer to the section “Corporate Sustainable Develoment-Description of Sustainable Management” 
and “Risk Management and Evaluation” of this annual report. 

All UMC 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.

55

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?

56

United Microelectronics Corporation  |  Annual Report 2022 
 
Deviations from “The Corporate 
Governance Best-Practice 
Principles for TWSE/TPEx Listed 
Companies” and Reasons

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  “Corporate  Sustainable  Development-
Environmental Protection, Safety and Health Management” chapter 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 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 technologies 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.

•  Shipping 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). Suppliers 
provide the third-party qualified inspection report for related packaging materials. 

•  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.

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, UMC announced its pledge in 2021 to reach net-zero 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 25% by 2025 and 50% 
by 2030.
• Climate Change Policy

None

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. Installing high efficiency FCs abatement in new tools
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

• 2025 Greenhouse gas emission reduction related targets

1. Reduce fluorinated greenhouse gas emissions per unit product by 65%.
Note: With 2010 as the base year.
2. Reduce electricity consumption per unit product by 25%.

    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.  The  assessment  result  and 
related  countermeasures  are  submitted  to  the  Corporate  Sustainability  Committee  for  approval.  Since  2021,  UMC 
met the TCFD performance assessment at management level of “Pioneer” for second consecutive year, which was 
verified by SGS Taiwan Ltd., an endorsement of the credibility and transparency of the Company’s climate change 
risk assessment system and disclosure. For details of greenhouse gas emissions, potential risks and opportunities of 
climate change, and related management and responding measures, please refer to the UMC Sustainability Report. 
Also, UMC disclosed relevant information through involvement in international CDP organization initiatives.  

57

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)  Has the Company compiled data on 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?

58

United Microelectronics Corporation  |  Annual Report 2022 
 
Implementation Status

Abstract Explanation

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

None

None

The  environmental  information  of  UMC,  such  as  greenhouse  gas  emissions,  water  consumption,  and  total  weight  of 
waste, is disclosed in the “UMC Sustainability 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. For 
the  policy,  implement  measures  and  data  of  the  past  two  years,  please  refer  to  the  section  “Corporate  Sustainable 
Development-Environmental Protection, Safety and Health Management” of this annual report.

UMC Code of Conduct follows Responsible Business Alliance Code of Conduct, RBA, UN Global Compact, International 
Labor  Office  Tripartite  Declaration  of  Principles,  the  OECD  Guidelines  for  Multinational  Enterprises,  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.
Human Rights Promotion Practices:
1. Conduct regular human rights risk assessments: Every year, risk identification is conducted in accordance with the 
"Human Rights Risk Identification Process", and surveys on corporate social responsibility related issues are sent to 
stakeholders including employees, communities, and government agencies through online and paper questionnaires. 
By collecting and analyzing the results of the surveys, issues that are concerned by the stakeholders can be better 
understood,  which  will  benefit  the  identification  of  key  indicators,  serving  as  the  reference  for  subsequent  risk 
management.

2. According to the results of human rights risk assessment, UMC establishes mitigation and remedial measures, 
identifies the human rights issues related to each department, notes management and improvement measures, and 
tracks the results of implementation. In 2022, there were no high-risk items to improve, and no human rights violations 
occurred, so no remedial measures were implemented.

3. The total number of training hours on human rights in 2022 is 18,066.35 hours, and the completion rate of the training 
is 100%. In addition, to protect the basic rights and interests of workers, when major changes in operations occur, 
UMC will follow the relevant provisions of the Labor Standards Act in Taiwan, the Employment Act in Singapore, and 
the Labor Contract Law in China. To protect the human rights of workers, UMC has formulated the "Workplace Sexual 
Harassment Prevention Measures, Complaints and Disciplinary Regulations" and provides clear grievance procedure 
to protect the rights and interests of employees.

4. Management system: UMC established the "EICC Committee (renamed RBA Committee in 2018)" in 2013 to manage 
human  rights  related  issues,  including  labor,  health  and  safety,  environment,  ethics,  etc.,  and  formulate  relevant 
policies as well as performance targets, and regularly track and review the results of the implementation plan.

5. The RBA Committee annually reviews whether the internal system of UMC complies with the latest RBA standards in 
order to fully implement the RBA Code of Conduct. The risks of each plant are assessed through the RBA-Online 
platform to prevent potential risks from occurring. In 2022, the RBA SAQ scores of all plants are higher than 90 points, 
indicating that the risk is low.

For more details, please refer to UMC Sustainability Report 4-1 Respect Human Right section: https://www.umc.com/en/
Download/corporate_sustainability_reports.

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 declare reasonable employee welfare measures (including salary remuneration policy, regulations for leaves and others) 

and integrate the Company’s performance with employees’ reward?

60

United Microelectronics Corporation  |  Annual Report 2022 
Deviations from “The Corporate 
Governance Best-Practice 
Principles for TWSE/TPEx Listed 
Companies” and Reasons

None

Implementation Status

Abstract Explanation

● Compensation and Benefits

UMC  conducts  and  implements  reasonable  employee  compensation  and  welfare  system.  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 lined with all applicable local laws and regulations in terms 
of minimum wage, retirement pension, leaves and other mandatory benefits to safeguard the rights of our employees. 
UMC is committed to providing workplace with work-life balance and offers various welfare benefits beyond what is 
required  by  statutory  regulations  including  holidays,  insurance,  financial  assistance  for  emergencies,  subsidies  for 
marriage/childbirth/funerals, discounts in designated shops and employee assistance service.
■ Paid leave that is superior to local regulations

• Additional 7 days of supplemental holidays are given for colleagues to use flexibly.
• To provide better care to newly hired female employees, UMC provides fully paid maternity leave even if 

the employee's period of service is less than 6 months.

• Provide maternity leave (up from statutory 448 hours to 480 hours) and paternity leave (up from statutory 56 hours 

to 80 hours)

• As a way of providing support, if the great-grandparents of an employee's spouse pass away, the employee is 
entitled to a funeral leave of 24 hours at full pay, which exceeds the requirements of the Labor Standards Act.

■ Health care and emergency assistance

• Regularly conduct employee health checks, plan health promotion activities, set up a health care system, and 

actively track and care for employee health.

• Equipped with employee assistance programs (EAP), injury and illness treatment and care to take care of 

employees' health comprehensively.

• Provide company group insurance, cancer insurance, medical insurance, accident insurance, hospitalization 

condolences, emergency relief funds to assist colleagues in emergency situations.

■ Diverse activities and discounts in shops

• Welfare committee holds diverse activities such as year-end party, Secretary's Day, the Company's anniversary 

day, Engineering's Day, one-day trip, family day, and art festival, etc.

• Employee social club evaluations and subsidies for club activities.
• Corporate agreements with stores all over Taiwan, provide APP for colleagues so that colleagues can enjoy 

discounts for food, clothing, housing and travel.

■ Parenting measures and breastfeeding environment

• To encourage employees to have more children, UMC provides measures ranging from wedding subsidy, care 
and nursing consultation during pregnancy, maternity leave, maternity inspection leave, exclusive parking space, 
priority meal pickup, maternity subsidy, unpaid parental leave, certified breastfeeding room, night shift transfer 
and other measures.

• To provide comprehensive assistance, UMC signed contracts with neighboring kindergartens to take care of the 
day-care needs of employees' children, and assists in the registration work of the primary and secondary schools 
in the Science Park.

• In cooperation with the Science Park Administration, a non-profit kindergarten will be set up to give employees 

more comprehensive support for family care.

■ Friendly working environment

• Staff restaurant, free shuttle bus, activity center, telecommunications/banking/insurance on-site services, 

convenience stores/coffee shops/bakeries, and other stores are available in offices and fabs.

• Provide flexible working shifts and hours.

For more information on benefits, please refer to employee benefits on page 122 of this annual report.
● UMC Diversity and Inclusion Practices

In 2022, the Co-President & CS Committee Chairman signed the Diversity and Inclusion Statement, and announced it 
on UMC official website. UMC encourages a diverse and inclusive culture, and respects differences of every individual. 
The  Company  makes  hiring  decisions  based  on  the  required  professional  skills,  offering  equal  opportunities  to  all 
qualified candidates. Applicants are not treated differently for factors including their race, color, nationality, ethnicity, 
gender, religion, marital status, age, disability, family status, sexual orientation, or political beliefs.
The Human Rights and Employee Development/Welfare Group of CS Committee is responsible for promoting and 
reporting on the performance and promotion of diverse workplace implementation. The methods include diversity and 
inclusion education and training, as well as hosting exemplary women's leadership and management sharing seminars 
to increase female colleagues' willingness to take on managerial positions, and gradually increase the proportion of 
female workers in the Company.
In 2022,  the target for the proportion of female executives was set at 10%, and the actual achievement was 11%, 
exceeding the original target. Targets were established for the percentage of female supervisors, with 22% targeted 
for 2023, 23% for 2025, and 24% for 2030.
Diversity and Inclusion statement and related practices please refer to UMC official website: https://www.umc.com/en/
Html/labor_and_human_rights#Diversity_and_Inclusion_Statement.

● Performance-oriented Compensation System

UMC offers salary adjustment, differentiated bonus/employee compensation and stock remuneration (employee stock 
option certificates, treasury shares and restricted stock award) based on individual performance, job, responsibilities 
and future development potential to attract, retain and motivate outstanding employees. UMC also actively joins the 
remuneration surveys of well-known worldwide 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).
Moreover,  in  order  to  internalize  the  concept  of  ESG  into  the  core  of  operation  and  enhance  employees'  sense  of 
responsibilities for corporate sustainability and risk management, ESG targets are set and associated with employees' 
variable compensation. Through the alignment of interests of employees and the Company, corporate sustainability 
can become a common goal. In 2022, UMC has achieved the ESG targets and the allocation of employee profit sharing 
percentage would be increased accordingly, so that all employees can enjoy the benefit of ESG achievement.

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

(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?

62

United Microelectronics Corporation  |  Annual Report 2022 
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 2022, 
UMC fabs in Taiwan and Singapore have offered 2,287 classes, attracting a total of 47,451 person-times 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 fabs 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. ISO 14001, ISO 45001 
and TOSHMS certification are valid to November 15, 2025.
In 2022, Taiwan and Singapore fabs had a total of 13 employee occupational incidents, accounting for 0.08% 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  and  promotion  and  charity  activities.  In  2022,  UMC 
promoted a healthy workplace lifestyle themed “Health and safe year of 2022” to create a healthy living workplace. To 
comply with COVID-19 restrictions and minimize the gathering of individuals, on-site health promotion activities were 
modified accordingly. The results in 2022 are as follows:
1. The themed health promotion activities drew the interest of 13,700 individuals, but the actual number of participants 

was 3,993. The overall satisfaction rate for all events was 97%.
Q1,“Let’s Relieve Pressure Together”
• To combat the spread of COVID-19, the health center has been promoting health education on the Company’s 
homepage  and  electronic  bulletin  board,  providing  updated  knowledge  to  strengthen  epidemic  prevention  and 
correct hygiene concepts. A total of more than 54 articles on epidemic prevention concepts and hygiene habits were 
posted in 2022.

Q2,“Let’s Protect Employees’ Health Together”
• Daily reporting of body temperature was mandatory for employees, and any abnormal readings were monitored by 

the health center. The completion rate of regular track and care is 100%.

• Through the COVID-19 case notification system for collection and control, the health center provides regular follow-

up care, education, and hospital referrals when needed.

Q3,“Let’s Get Health Examination Together”
• The "Stay Healthy, Stay Powerful! - Step Count Challenge" was organized, and 1,556 individuals from Hsinchu and 
Tainan sites completed the health questionnaire. The results showed that most of the employees did not have regular 
exercise habits (63% exercised occasionally, 26% exercised more than three days a week, and 11% exercised daily). 
A total of 117 people reached the standard, and the total number of registered steps reached 90,936,439, with an 
average of 10,906 steps per day.

• Annual health examination: a total of 11,969 people participated in health examinations in Hsinchu and Tainan sites; 

the satisfaction score was 94% in Hsinchu headquarters, 92% in other fabs in Hsinchu, and 92% in Tainan.

• A total of 366 qualified middle-aged and elderly employees completed advanced health examinations and received 

additional subsidies.

Q4,“Let’s Care and Improve Our Health Together” 
• All abnormal items were reviewed and monitored to eliminate any potential risk to life, and the completion rate reached 100%. 

2. 5,072 person-times employees consulted with in-house physicians.
3. 496 person-times employees donated blood, totaling 759 bags of blood.
4. 631 female employees received women 3-in-1 health exam, and the satisfaction rate was 96% in Hsinchu and 95% in Tainan. 
5. 772 received abdominal ultrasound examination, and the satisfaction rate was 96.4% in Hsinchu and 97% in Tainan.
6. 571 received flu vaccination, and the satisfaction rate was 97.7% in Hsinchu and 98% in Tainan.
7. Emergency personnel had a total of 411 health management consultations, achieving a 100% consultation rate.
8. There were 1,621 cases of nursing care and requests for first aid assistance. 
9. There were 1,950 new employee health examinations.
10. Respiratory protection was provided to 964 employees.
11. 17 individuals underwent interviews and assessments to evaluate potential human hazards. All assessment interviews 
were fully conducted, and it was determined that the incidents were not work-related. As a result, all 17 cases were closed.
12. All middle-aged and elderly workers have completed health consultations and received guidance recommendations.

63

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)  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?

64

United Microelectronics Corporation  |  Annual Report 2022 
 
 
 
 
Deviations from “The Corporate 
Governance Best-Practice 
Principles for TWSE/TPEx Listed 
Companies” and Reasons

None

None

Implementation Status

Abstract Explanation

•  Employee health care

The Company provides new employees with physical examinations and annual health check-ups, and subsequently 
conducts  health  management  based  on  the  results  of  these  examinations,  and  the  special  operation  inspection 
personnel are classified for case-by-case management. Besides, the Company cooperates with medical institutions 
to hire on-site doctors to provide health consultation services to employees. Effective health risk management and 
case  management  are  implemented  for  all  employees  with  abnormal  test  results.  They  are  also  included  in  the 
information system for monitoring and are integrated in the “health care system,” thereby achieving 100% care rate.
1. In 2022, a total of 11,969 employees in the Company received physical check-up, and the satisfaction score was 

94% in Hsinchu headquarters, 92% in other fabs in Hsinchu, and 92% in Tainan. 

2. Health examination reports and online questionnaire outcomes were classified according to the risk levels. Health 
management and consultation by on-site doctors are then arranged accordingly to achieve 100% follow-up care.

•  Employee consulting and assistance program

To enhance the physical, mental, and spiritual health of employees, 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.

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 labels are within the deadline. It demonstrates UMC’s active protection of employee health and concern 
for their physical and psychological well-being.

According to the training blueprint corresponding to different job categories and levels, UMC encourages all colleagues 
(Including formal, dispatched and temporary staff) to continue to learn and develop their personal careers in line with 
industry trends, and will continue to provide transfer incentives and implement the internal transfer system.
UMC has set management skills or core professional competencies requirements for managers and colleagues at all 
levels. Internal training courses are designed based on job function models to plan corresponding development programs. 
In addition to mandatory training courses, employees can also participate in various selective training courses according 
to their personal needs and future development considerations, in order to prepare in advance for career planning and 
development in the next stage. 
For more information, please refer to Page 120, Education and Training.

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.

65

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

(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?

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:

66

United Microelectronics Corporation  |  Annual Report 2022 
Implementation Status

Abstract Explanation

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

Through the supplier sustainability evaluation mechanism and UMC's Supplier Code of Conduct, the Company strives 
to  enhance  suppliers'  compliance  of  labor  rights,  workplace  safety,  environmental  protection,  business  ethics,  and 
management system. By conducting annual assessments, the Company is able to track suppliers' progress and take 
corresponding measures, reducing the risk of operational interruptions.

None

Establishing Sustainable Supply Chain
In 2022, UMC further enhanced its supply chain management, implementing sustainability initiatives and strengthening 
the guidance for local suppliers to establish sustainable supply chain capability. UMC continued to guide suppliers in 
establishing diversified and localized capabilities. To enhance the awareness of procurement personnel on sustainability 
initiatives and sustainable supply chain management, UMC held a number of educational training courses in 2022 to 
accelerate the development of sustainable supply chain management.
In 2022, USJC held a sustainability sharing session to promote UMC's sustainability policy to suppliers in Japan.

Building Green Supply Chain and Promoting Circular Economy
UMC believes that green supply chain is a critical part of the implementation of the corporate sustainability blueprint. As 
a corporate leader, the Company actively promotes and urges suppliers to participate in the circular economy.
UMC sell scraps and waste material to decrease waste and promote effective reuse of resources. In 2022, revenue from 
the project reached a new high of NT$151 million due to rising wafer unit price and strong Taiwan dollar appreciation. It is 
estimated that by 2025, the cumulative sales will exceed NT$500 million.

Environment and Climate change
UMC  views  the  development  of  green  products  as  its  responsibility  and  promotes  green  procurement  starting  from 
upstream  manufacturing  to  conserve  resources  and  protect  the  environment.  Green  procurement  amount  in  2022 
reached NT$144 million.

Social Impact Projects
To ensure that UMC's suppliers are diligent about their supply chain management, and are taking actions to manage 
their  suppliers  and  ensure  their  suppliers  are  abiding  by  the  Company's  ethics  agreement.  UMC  announce  on  the 
e-Procurement platform (supplier platform):
Suppliers are required to 80% of key suppliers (UMC's Tier 2 suppliers) should comply the Supplier Code of Conduct by 
2025 and 30% of key suppliers (UMC's Tier 2 supplier) to fall under supply chain management by 2025.
In 2022, 44% of key suppliers (UMC's Tier 2 supplier) are compiled the Supplier Code of Conduct, 20% of key suppliers 
(UMC's Tier 2 supplier) are under supply chain management.
For more information, please refer to the ESG report chapter 1-3 Building Sustainable Supply Chain: https://www.umc.
com/en/Download/corporate_sustainability_reports.

As of 2022, UMC has publicly issued a non-financial related sustainability annual report for 22 consecutive years. At 
the same time, the 2021 UMC Sustainability Report is the 17th 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 2023, UMC will compile the 2022 UMC 
Sustainability Report that will address major sustainable issues and stakeholder concerns, and will commission a third 
party to verify the report.

None

For details of the Sustainable Development Best Practice Principles formulated by UMC, please refer to https://www.umc.com/en/Download/major_internal_policies. The 
Company’s sustainable operations show no inconsistency from the Principles. For other details, please refer to the “Corporate Sustainable Development” of this Annual 
Report and the UMC Sustainability Report.

UMC is a current member of Business Council for Sustainable Development of Taiwan (BCSD Taiwan), 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  sustainable  development 
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 
UMC website.

67

Corporate Governance ReportClimate-related Information of TWSE/TPEx Listed Companies

Disclosure of climate-related information

Item

Implementation status

1.Describe the supervision and governance of the Board and 
the  management  team  regarding  climate-related  risks  and 
opportunities.

2.Describe how the identified climate risks and opportunities 
affect the business, strategy, and finances of the company (in 
the short, medium, and long term).

UMC’s  Board  of  Directors  and  Functional  Committees  oversees  climate  change  risks,  opportunities, 
coping strategies, and related promotion plans. The Enterprise Risk Management Committee coordinates 
related departments within the Company to jointly review the Company’s internal/external risks (including 
climate  change  risks),  formulates  countermeasures  for  material  risks.  The  Corporate  Sustainability 
Committee responsible for proposing and implementing the sustainable development vision and mission, 
related management approach and specific promotion plans (including climate change). 

According  to  UMC  Climate  Change  Risk  and  Opportunity  Assessment  Methodology,  short-term  is 
defined as within the next 3 years, medium-term is defined as within the next 10 years, and long-term 
is defined as more than 10 years in the future. UMC formulates response plans for the identified major 
risks and opportunities. Taking carbon tax/fee as an example, it is expected that operating costs will 
gradually increase due to rising rates, resulting in a decline in profits. Therefore, the Company has set 
a net zero emission target in 2050, and actively promotes greenhouse gas reduction plans to reduce 
potential financial impacts. For other risk and opportunity information, please refer to the Company's 
Sustainability Report.

3.Describe the impact of extreme climate events and transitional 

actions on company finances.

For the identified climate risks and opportunities, UMC has taken into account the potential financial 
impacts on revenue, costs, assets, and other aspects. For relevant information, please refer to the 
Company's Sustainability Report. 

4.Describe how climate risk identification, assessment and 
management  processes  are  integrated  into  the  overall  risk 
management system.

5.If a scenario analysis is adopted for the assessment 
of  resilience  to  climate  change  risks,  then  the  scenarios, 
parameters, assumptions, and analysis factors used, as well 
as the major financial impacts should be explained.

6.If there is a transition plan for managing climate-related risks, 
please  describe  the  content  of  the  plan,  as  well  as  the 
indicators  and  goals  used  to  identify  and  manage  physical 
risks and transition risks.

7.If internal carbon pricing is used as a planning tool, the basis 

for setting the price should be stated.

8.If climate-related goals are set, information such as the 
activities  involved,  the  scope  of  greenhouse  gas  emissions, 
planning schedule, and annual progress should be disclosed. 
If carbon offsets or renewable energy certificates (RECs) are 
used to  achieve the relevant goals, the source and quantity 
of  carbon  reductions  for  carbon  offsets  or  the  quantity  of 
renewable energy certificates (RECs) should be explained.

9.Greenhouse gas inventory and assurance results.

68

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 reviews 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 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.

UMC  conducts  climate-related  scenario  analysis,  including  transitional  scenarios  based  on  National 
Determined Contributions (NDCs) and Science Based Target (SBT), and physical scenarios such as 
RCP 2.6, RCP 8.5, SSP1-1.9, SSP5 -8.5. UMC also conducts risk and opportunity analysis for policies, 
regulations, markets and technologies transitions, business reputation and physical risks. For relevant 
parameters, assumptions, analysis factors and major financial impact information, please refer to the 
Company's Sustainability Report. 

In order to achieve net zero emissions by 2050, UMC has drawn up a low-carbon transition plan to 
cover  direct  emissions  from  fab  operations  (Scope  1),  indirect  emissions  from  energy  consumption 
(Scope 2), and indirect emissions from value chain (Scope 3). The three resolutions are: (1) Persistent 
and proactive carbon emissions reduction: Through continually developing advanced foundry process 
technologies, enhancing productivity and improving energy efficiency, UMC is able to minimize carbon 
emissions in both manufacturing stage of wafers and using stage of IC end products; (2) 100% renewable 
energy: A 3-stage objective of 25% by 2025, 50% by 2030, and 100% by 2050 is set to substantially 
increase the proportion of consuming renewable energy, UMC will also invite its value chain to support 
the low-carbon energy transition; (3) Investment in net-zero technologies: UMC commits to invest in 
net zero emissions technologies and participate in Carbon Offset Projects to remove and offset carbon 
emissions that are inevitable or still subject to technical restrictions. 
For relevant indicators and targets, please refer to the Company's Sustainability Report.

UMC  has  considered  the  international  carbon  market  prices,  the  carbon  prices  of  GHG  relevant 
regulations  and  the  costs  of  reducing  greenhouse  gas  emissions  of  the  Company  to  set  an  internal 
carbon price. We use it as a reference for carbon reduction management and planning.

In 2021, UMC has announced to achieve RE100 and net zero emissions by 2050. We also established 
climate-related targets such as water consumption, energy use, greenhouse gas emissions, and the 
technology development of low energy consume products. For detailed content and status, please refer 
to the Company's Sustainability Report.

The greenhouse gas emissions inventory and assurance results are shown in table on the following 
page.

United Microelectronics Corporation  |  Annual Report 2022Greenhouse gas inventory and assurance results

Item

Implementation status

Basic company information
■  Companies with a capital amount of NT$10 billion or more, steel industry, 

cement industry

□  Companies with a capital amount of NT$5 billion or more, but less than NT$10 

billion

□  Companies with a capital amount of less than NT$5 billion

The following shall be disclosed in accordance with the Sustainable Development 
Guidemap for TWSE and TPEx Listed Companies:  
■  Parent-company-only inventory
□  Subsidiary inventory with a consolidated financial report
□  Parent-company-only assurance
□  Subsidiary assurance with a consolidated financial report

UMC GHG Emissions in 2022

Scope 1

Total Emissions
(ton CO2e)

Intensity
(ton CO2e/million NT$)

Assurance Body

Assurance Results

Parent company

591,781

Subsidiary

Total

Scope 2

274,207

865,988

2.82

3.92

3.09

DNV 

SGS/DNV(Note 3)

-

The  Scope  1  emission  is  free  from  material 
discrepancies in accordance with the verification 
criteria of ISO14064-1:2018.

Total Emissions
(ton CO2e)

Intensity
(ton CO2e/million NT$)

Assurance Body

Assurance Results

Parent company

1,373,914

Subsidiary

383,919

Total

1,757,833

6.54

5.49

6.28

DNV 

SGS/DNV(Note 3)

-

Scope 3

For details of scope 3 emissions, please refer to the Company's Sustainability Report.

The  Scope  2  emission  is  free  from  material 
discrepancies in accordance with the verification 
criteria of ISO14064-1:2018.

Note 1: According to the regulations of Sustainable Development Roadmap for TWSE/TPEx Listed Company, UMC shall at least disclose the parent company’s inventory information this year, 

and UMC discloses the inventory and assurance information of the parent company and four subsidiaries base on the current operating status.

Note 2: The statistics of subsidiaries covers HJ, USCXM, Wavetek and USJC.

Note 3: The assurance body of HJ and USCXM is SGS-CSTC Standards Technical Services Co., Ltd.; Wavetek and USJC are issued by DNV Business Assurance Co., Ltd..

Note 4: For details of the verification statement please refer to: https://www.umc.com/upload/media/06_About/6_Certificates/9_Greenhouse_Gases_Emissions_Verification/ISO14064_1.pdf

69

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 executed an audit plan based on unethical conduct risks, or engaged an external CPA to implement the audit?

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

70

United Microelectronics Corporation  |  Annual Report 2022 
 
 
 
 
 
 
 
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. 26, 2022.) 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 and 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 2022, UMC fabs in Taiwan and Singapore have completed the training courses and passed relevant tests.

None

71

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 2022 
 
 
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. UMC has not have any discrepancy between 
the regulations and our implementation.

UMC abides by the laws and regulations, and regularly reviews and revises the Ethical Corporate Management Best Practice Principles. For other important information 
that is  helpful to understand the Company's Ethical  Corporate Management implementation status, please refer to the information of Specific Measures  for Ethical 
Management.

73

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 2021-2022

Item

Implementation Status

Legal Compliance

•  UMC’s cross-division regulatory compliance is coordinated by the Global Compliance Division, which is established in 2022, and 

UMC Code of Conduct 
Implementation

UMC fair competition, intellectual 
property rights violations

other laws and regulations are regularly reviewed by relevant divisions.

•  UMC pays close attentions to the EU General Data Protection Regulation, the US California Consumer Privacy Act, and the 
Personal Information Protection Law of China since 2018, and the Global Compliance Division will coordinate overall regulatory 
compliance with these laws and regulations. The Global Compliance Division held a lecture of "Privacy Laws" on November 17 of 
2022, and the training material therefor can be found on the UMC website.

•  With respect to the frequent rule changes of the Export Administration Regulations of the United States since 2020, and the new 
export control related laws or regulations of China to counteract the changed Export Administration Regulations of the United 
States  since  2021,  the  Global  Compliance  Division  will  coordinate  overall  legal  compliance  in  this  regard.  Also,  the  training 
material for the export control can be found on the UMC website, and the online training and test have been conducted regularly 
since 2020.

•  UMC also pays close attentions to the global laws and regulations that related to the anti-corruption, and not only conduct the 
online  training  and  test  for  anti-corruption  regularly  since  2019,  but  also  publish  the  UMC  Anti-Corruption  Statement  on  the 
UMC  website  in  2022.  The  Global  Compliance  Division  conducted  an  online  training  and  test  for  insider  trading  in  the  third 
quarter of 2022, and as a result, 11,120 employees completed the online training and test, corresponding to 99.1% of the targeted 
participants.

•  In order to continuously strengthen the awareness of and emphasize the importance of the insider trading, and to prevent 
employees and managers from unknowingly violating laws or regulations in connection with insider trading, the training material 
for insider trading can be found on the UMC website, and the online training and test have been conducted regularly since 2020. 
The Global Compliance Division conducted an online training and test for insider trading in the second quarter of 2022, and as a 
result, 9,613 employees completed the online training and test, corresponding to 98.9% of the targeted participants.

•  The content of the Codes is reviewed biennially: Review of the Employee Code of Conduct was completed in April 2021.
•  Major violations of employee ethics are reported to the Audit Committee on a quarterly basis. In 2022, no major ethical violations 

were reported.

•  Employee Code of Conduct education and testing were conducted in August 2022, with 100% completion rate.
•  Employee Code of Conduct training course for new employees; 358 participants and a total of 537 hours in 2022.

•  UMC has reported the litigation cases in each quarter of 2022 to the Audit Committee.
•  The UMC Antitrust Policy for promoting fair competition can be found on the UMC website since 2011, and the online training and 
test have been conducted regularly since 2013. The Global Compliance Division held a lecture of "Competition Laws and Antitrust 
Laws" on November 24 of 2022, and conducted an online training and test for competition laws and antitrust laws in the fourth 
quarter of 2022.

•  In order to intensify the sense of the trade secret and the copyright, the training materials for both topics are provided to all the 
employees and managers on the UMC website, and the online training and test have been conducted regularly since 2021. The 
Global Compliance Division held a lecture of“Trade Secret Laws”on September 14 of 2022, and conducted an online training and 
test for trade secret laws in the second quarter of 2022, and as a result of the online training and test, 8,080 employees completed 
the online training and test, corresponding to 100% of the targeted participants.

•  Furthermore, in order to strengthen the importance of trade secret, the course“Trade Secret Laws”has been held for the managers 
of the first level or above regularly since 2018. The course "Trade Secret Laws” took place on December 8 of 2022, and a total of 
75 managers participated in this two-hour course, corresponding to 100% of the targeted participants.

•  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.

•  Introduction to UMC Intellectual Property Rights training course for new employees: 1,716 participants and a total of 429 hours in 

2021, and 1,704 participants and a total of 426 hours in 2022.

•  Trade Secret training course for new employees: separate from UMC Intellectual Property Rights as an individual course since 
December 2018 with 1,716 participants and a total of 274.6 hours in 2021, and 1,704 participants and a total of 272.6 hours in 2022.
•  Basic Legal and Risk Awareness on the Incoming Data training course for new employees: implemented since April 2018. A total 

of 1,716 participants and a total of 429 hours in 2021, and 1,704 participants and a total of 426 hours in 2022.

Financial reporting related internal 
control

•  Annual audit by external auditors and internal Audit Division.
•  Results of internal audits for 2022 were reported at the Audit Committee/Board of Directors meetings on a quarterly basis.

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 35-83 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.

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.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.

74

United Microelectronics Corporation  |  Annual Report 2022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.

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 2022.

paragraph,  UMC  believes  that,  on  December  31,  2022,  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. An 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. 22, 2023, 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 

assessment, (3) control activities, (4) information and communication, 

and (5) monitoring activities. Each component further contains several 

items. Please refer to the Regulations for details.

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

internal control system according to the aforesaid Regulations.

Chairman: Stan Hung

President: SC Chien

President: Jason Wang

Feb. 22, 2023

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 2022.

75

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

None.

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

The Major Resolutions from the Shareholders’ Meeting 

The Company’s 2022 Annual General Meeting was held at No.2-1, Hsin-Ann Rd., Hsinchu Science Park, Auditorium of Hsinchu Science Park Bureau on 

May 27, 2022. 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 2021 Business Report and Financial 
Statements.

•  In 2021, UMC’s sales revenue was NT$213,011,018 thousand, and full-year net income 

reached NT$55,780,255 thousand, leading to an earnings per share of NT$4.57.

Acceptance of the 2021 Earnings Distribution Chart.

•  Approved and acknowledged.

Approval of the cash distribution from capital surplus.

•   Implemented in accordance with resolution, and the ex-dividend record date was set for 

June 28, 2022, and cash dividend for common shares was paid on July 14, 2022.

Approval of the issuance of Restricted Stock Awards.

•  Implemented in accordance with resolution and issued gratuitously 23,059,500 shares of 

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

common stock on December 5, 2022.

•  Implemented in accordance with resolution.

1.

2.

3.

4.

5.

76

United Microelectronics Corporation  |  Annual Report 2022Major  Resolutions  and  Implementation  Status  of  the  Shareholders’  Meeting  and  the  Board  of  Directors’  Meeting  
(Continue)

The Major Resolutions from the Board of Directors’ Meeting

Meeting Date

Major Resolutions

2022.02.24

2022.04.27

2022.06.01

2022.07.27

2022.10.26

2022.12.14

2023.02.22

• 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.

• Approved the Q1, 2022 Consolidated Financial Statements.
• Approved capital budget execution.
• Approved the acquisition of UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

• Approved the record date for 2021 cash dividend.

• Approved the Q2, 2022 Consolidated Financial Statements.
• Approved capital budget execution.

• Approved the Q3, 2022 Consolidated Financial Statements.
• Approved capital budget execution.
• Approved the Cancellation of Restricted Shares to Employees Stock Awards.

• Approved capital budget execution.

• Approved the 2022 Business Report and Financial Statements.
• Approved the 2022 distributable compensation for employees and directors.
• Approved the 2022 Earnings Distribution Chart.
• Approved to change Certified Public Accountant due to the internal reorganization of the CPA firm.
• Approved the date of convening the 2023 Annual General Meeting, meeting agenda and submission period for shareholder proposals.
• Approved capital budget execution.
• Approved UMC's donation to UMC Science and Culture Foundation.
• Approved the change of Chief internal auditor.

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 2022 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 2022 and as of the Annual Report 
Printing Date:

Title

Senior Director of Auditing 
Division

Senior Director of Auditing 
Division

Name

Angel Sun

Vic Yen

Note: Annual report printing date: February 22, 2023.

Date Assumed

Date Dismissed

2009.05.08

2023.03.31

2023.03.30

NA

Reason

Retirement

NA

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

Number of Employees

Certification Name

Certified Public Accountants (CPA)

US Certified Public Accountants (US CPA)

Association of Chartered Certified Accountants Singapore (ACCA Singapore)

Certified Internal Auditor (CIA)

CABIAV Certificate of Certified Business Valuator

 Audit

Accounting

Finance

4

1

19

5

1

2

1

3

1

1

Information of Certified Public Accountant (CPA) Fees
The Amount of Audit and Non-audit Fees Paid to the CPA, CPA Firm and Its Affiliates, and 
the Content of Non-audit Service

In Thousand NT$

Name of CPA Firm Name of CPA

CPA Audit Period

Audit Fees

Non-audit Fees

Ernst & Young, 
Taiwan

Wan-Ju Chiu, 
Hsin-Min Hsu

2022.01.01~
2022.12.31

61,540

7,152

Total

68,692

Remarks

Note: Non-audit fees includes fees paid for tax compliance audit, agree upon procedure, etc.

If  the  CPA  Firm  Was  Changed,  and  the  Audit  Fees  Paid  in  the  Year  of  Change  Was 
Reduced Compared with the Previous Year, the Amount of the Audit Fees Before and 
After the Change and the Reasons for The Change Shall Be Disclosed
None.

If the Audit Fees Has Decreased by More than 10% Compared with the Previous Year, the 
Amount, Proportion and Reasons for the Decrease in Audit Fees Shall Be Disclosed
None.

78

United Microelectronics Corporation  |  Annual Report 2022 
 
Information on Replacement of CPAs

1.Information Regarding the Predecessor CPAs

Date of replacement

2023.02.22

Reason for replacement and explanation

Because of the adjustment of the CPA firm’s internal job responsibilities, CPA Wan-Ju Chiu 
and CPA Hsin-Min Hsu were replaced by CPA Yu-Ni Yang and CPA Hsin-Min Hsu.

Describe whether the Company or the CPAs decided to terminate or 
discontinue the engagement

Parties

CPAs

The Company

Circumstances

Terminated the engagement

Not applicable

Not applicable

No longer accepting 
(continuing) the engagement

Not applicable

Not applicable

If the CPAs issued an audit report expressing any opinion other than an 
unqualified opinion during the 2 most recent years, specify the opinion and 
the reasons
Disagreement with the Company?

None

Yes

Accounting principles or practices

Disclosures of the financial report

Audit scope or procedures

Other

Other disclosures
(Any matters required to be disclosed under sub-items d to g of Article 
10.6.A)

No

Specify details

None

2.Information Regarding the Successor CPAs

Name of accounting firm

Name of CPAs

Date of engagement

Subjects discussed and results of any consultation with the CPAs prior 
to the engagement, regarding the accounting treatment of or application 
of accounting principles to any specified transaction, or the type of audit 
opinion that might be issued on the company's financial report

Ernst & Young, Taiwan

Yu-Ni Yang and Hsin-Min Hsu

2023.02.22

None

Successor CPAs’ written opinion regarding the matters of disagreement 
between the Company and the predecessor CPAs

None

3.The reply letter from the predecessor CPA regarding the Company’s disclosures regarding the matters under Article 10.6.A 

and 10.6.B(c) of the Regulations.

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

Holding  
Increase 
(Decrease)

2023

Pledged  
Holding  
 Increase 
(Decrease)

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

(2,000,000)

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Unit: Shares

2022

Pledged  
Holding  
 Increase 
(Decrease)

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Holding  
 Increase  
(Decrease)

3,300,000 

0 

(18,800,000) 

0 

0 

0 

0 

0 

0 

3,300,000

3,300,000

2,135,000

1,500,000

1,650,000

650,000

950,000

914,000

1,089,000

0

0

0

0

0

1,089,000

1,089,000

495,000

594,000

1,089,000

594,000

490,000

1,089,000

1,089,000

0

0

0

0

0

0

0

Title

Name

Chairman & Chief Strategic Officer

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

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

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President

Vice President 

Vice President 

Vice President

Vice President

80

United Microelectronics Corporation  |  Annual Report 2022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 & Chief Human 
Resources Officer

Steven S Liu

SR Sheu

M L Liao

S S Hong

Francia Hsu

Mindy Lin

Linwu Kuo

Eric Chen

Holding  
Increase 
(Decrease)

2023

Pledged  
Holding  
Increase 
(Decrease)

Holding  
Increase  
(Decrease)

Unit: Shares

2022

Pledged  
Holding  
Increase 
(Decrease)

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

990,000

900,000

1,089,000

891,000

1,089,000

1,089,000

475,000

0

769,000

0

0

0

0

0

0

0

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

Note 2: The data shown for 2022 is for the period January 1 to January 31, 2023.

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

Note 4: The Holding Increase (Decrease) data consists of shares under Trust with Discretion Reserved.

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

Hsun Chieh Investment Co., Ltd.
Representative:
Chun Kuan

Silicon Integrated Systems Corp.
Representative:
Cheng Chien Chien

Taiwan Life Insurance Co., Ltd.  
Representative:
Tai Ke Cheng

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

Yann Yuan Investment Co., Ltd.
Representative: 
Chun Kuan

Labor Pension Fund

Fubon Life Insurance Co., Ltd.
Representative:
Ming Hsing Tsai

China Life Insurance Co., Ltd.
Representative:
Shuo Lun Tan

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

593,054,945

4.75

N/A

N/A

N/A

N/A

None

None

441,371,000

3.54

N/A

N/A

N/A

N/A

None

None

93,998

0.00

0

0

0

0

285,380,424

2.29

N/A

N/A

N/A

N/A

1,858

0.00

0

0

0

0

219,975,000

1.76

N/A

N/A

N/A

N/A

Data unavailable

None

None

None

None

None

None

None

None

193,244,150

1.55

N/A

N/A

N/A

N/A

None

None

Director 
of the 
Company

Director 
of the 
Company

190,000,000

1.52

N/A

N/A

N/A

N/A

93,998

0.00

0

0

175,118,600

1.40

N/A

N/A

172,449,000

1.38

N/A

N/A

0

N/A

N/A

0

N/A

N/A

None

None

None

None

None

None

None

None

167,033,000

1.34

N/A

N/A

N/A

N/A

None

None

Data unavailable

Data unavailable

141,409,905

1.13

N/A

N/A

N/A

N/A

None

None

Note: The data shown above was recorded on June 28, 2022, which was the record date for the distribution of 2022 cash dividend.

82

United Microelectronics Corporation  |  Annual Report 2022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

433,942,340

977,000,000

607,484,748

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

1,201,773,860

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

138,000,000

2,600,000

326,734,400

United Semiconductor Japan Co., Ltd.

116,246,616 

Unimicron Technology Corp.

196,136,008

45.44

42.00

36.49

100.00

79.50

100.00 

100.00 

0

13.78

26.78

100.00 

40.00

100.00

13.27

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, 2022.

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

16,437,500

9,000

71,662,977

433,942,340

977,000,000

607,484,748

100.00

100.00

100.00

100.00

100.00

100.00

1,520,000

100.00 

12,000,000

4,500,000

9.00

25,500,000

0

0

0

0

1,201,773,860

664,966,275

3,086,936

1.66

151,199,370

0

0

N/A

4,968

12,000,000

0

0

0

0

0

71.86

0.00

2.33

0

0

0

110,000

4,300,000

N/A

34,245,181

150,000,000

2,600,000

326,734,400

116,246,616

4,546,000

0.31

200,682,008

45.44

51.00

36.49

100.00

81.16

100.00

100.00

71.86

13.78

29.11

100.00

40.00

100.00

13.58

83

Corporate Governance Report84

United Microelectronics Corporation  |  Annual Report 2022Capital Overview

Capital and Shares
Issuance of Corporate Bonds
Preferred Shares

86 
91 
97 
9 8   American Depositary Receipts
1 0 0   Employee Stock Options Handling Status
1 0 0  
Issuance of Restricted Stock Awards for Employees  
1 0 6   Status of New Shares Issuance in Connection with   

Mergers and Acquisitions

1 0 7   Funding Plans and Implementation 

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

March, 2022

NT$10

26,000,000

260,000,000

12,482,123

124,821,235

November, 2022

NT$10

26,000,000

260,000,000

12,481,689

124,816,895

December, 2022

NT$10

26,000,000

260,000,000

12,504,749

125,047,490

Note 1

Note 2

Note 3

None

None

None

None

None

None

Note 1: On March 14, 2022, the Hsinchu Science Park Bureau, Ministry of Science and Technology approved the capital reduction of NT$11,241 thousand due to 

cancellation of the RSA. The Company’s paid-in capital was decreased to NT$124,821,235 thousand. 

Note 2: On November 10, 2022, the Hsinchu Science Park Bureau, National Science and Technology Council approved the capital reduction of NT$4,340 thousand due 

to cancellation of the RSA. The Company’s paid-in capital was decreased to NT$124,816,895 thousand.

Note 3: On December 14, 2022, the Hsinchu Science Park Bureau, National Science and Technology Council approved the capital increase of NT$230,595 thousand 

due to issuance of new RSA for employees. The Company’s paid-in capital was increased to NT$125,047,490 thousand.

Note4: The data shown above was gathered until February 22, 2023.

Type of Stock

Share Type

Issued Shares(Note 1)

Un-Issued Shares

Total Shares

Authorized Capital

Unit: Shares

Allotment for Stock 
Option Certificate 
(Units)

Common Stock

12,504,748,984   

13,495,251,016

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 22, 2023.

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

16

137

1,560

959,446

2,496

963,655

Shareholding (Shares)

267,364,714

1,245,676,258

1,597,015,631

5,598,093,601

3,773,973,280

12,482,123,484

Percentage (%)

2.14

9.98

12.79

44.85

30.24

100.00

Note: The data shown above was recorded on June 28, 2022, which was the record date for the distribution of 2022 cash dividend.

86

United Microelectronics Corporation  |  Annual Report 2022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

206,392

551,393

108,688

34,647

20,823

17,128

7,479

  4,545

7,276

2,873

1,143  

356

165

113

634

963,655

Shareholding
(Shares)

55,861,029

1,231,339,753

841,630,228

439,640,711

382,064,580

433,601,039

  267,051,635

  210,477,262

515,679,044

399,718,774

321,909,604

175,353,348

115,453,539

102,723,312

6,989,619,626

12,482,123,484

Note: The data shown above was recorded on June 28, 2022, which was the record date for the distribution of 2022 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.

Silicon Integrated Systems Corp.

Taiwan Life Insurance Co., Ltd.

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

Yann Yuan Investment Co., Ltd.

Labor Pension Fund

Fubon Life Insurance Co., Ltd.                                                                             

China Life Insurance Co., Ltd.

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

Shares

593,054,945

 441,371,000 

 285,380,424 

 219,975,000 

 193,244,150 

 190,000,000 

 175,118,600 

 172,449,000 

 167,033,000 

 141,409,905 

Note: The data shown above was recorded on June 28, 2022, which was the record date for the distribution of 2022 cash dividend.

Percentage (%)

0.45

9.87

6.74

3.52

3.06

3.47

2.14

1.69

4.13

3.20

2.58

1.40

0.93

0.82

56.00

100.00

Shareholding

Percentage (%)

4.75

3.54

2.29

1.76

1.55

1.52

1.40

1.38

1.34

1.13

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 (Note 4)

Stock Dividends

Earning Distribution

Capital Distribution

Accumulated Undistributed 
Dividend

Return on Investment Price/Earnings Ratio  

(Note 5)

Price/Dividend Ratio 
 (Note 6)

Cash Dividend Yield  
(Note 7)

2023 (Note 8)

51.20

40.25

47.71

-

-

-

-

-

-

-

-

-

-

-

-

2022

65.50

35.00

46.93

26.80

*

In NT$

2021

72.00

43.05

56.29

22.51

19.51

12,305,518,592

12,218,346,550

7.09

*

*

*

*

-

6.51

*

*

4.57

4.57

3.00000000

-

-

-

12.35

18.81

0.05

*Subject to change based on resolutions of the 2023 shareholders’ meeting.

Note 1: Referred to TWSE website.

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

Note 3: The calculation of EPS was based on retroactive adjustment for capitalization of unappropriated earnings, additional paid-in capital and employees’ compensation distributed in stocks.

Note 4: Including cash dividend distributed from earnings and cash distributed from capital surplus.

Note 5: Price/Earnings Ratio = Average Market Price/Earnings Per Share.

Note 6: Price/Dividend Ratio = Average Market Price/Cash Dividends Per Share.

Note 7: Cash Dividend Yield = Cash Dividends Per Share/Average Market Price.

Note 8: The data represented for 2023 was gathered until February 22, 2023.

Note 9: The average closing prices for years 2021, 2022 and 2023 were NT$56.42, NT$46.18, and NT$47.60, respectively.

88

United Microelectronics Corporation  |  Annual Report 2022Capital and Shares (Continue)

Dividend Policy and Status

1. Dividend Policy in the Company’s Articles of Incorporation According 

Board  of  Directors  shall  propose  the  distribution  plan  and  submit 

to  the  Company’s  Articles  of  Incorporation,  current  year’s  earning,  if 

it  to  the  shareholders’  meeting  every  year.  The  distribution  of 

any, shall be distributed in the following order:

shareholders’  dividend  shall  be  allocated  as  cash  dividend  in  the 

(1)Payment of taxes.

(2)Making up for loss in preceding years.

range of 20% to 100%, and stock dividend in the range of 0% to 80%.

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

2. The Company’s operating status, funding requirements, capital 

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

expenditure  forecast,  changes  in  the  overall  internal  and  external 

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

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

other regulations.

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

(5)The remaining, if applicable, may be distributed preferentially as 

dividend is determined by the Board of Directors, and cash distributed 

preferred shares dividends for the current year, and if there is still a 

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

remaining balance, in addition to the previous year’s unappropriated 

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

earnings,  shall  be  distributed  according  to  the  distribution  plan 

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

proposed by the Board of Directors according to the dividend policy 

extraordinary situations.

in paragraph two of this clause and submitted to the shareholders’ 

meeting for approval.

Proposed Distribution of Dividend

The dividend policy of the Company shall be determined pursuant 

The  Company’s  proposal  for  2022  earnings  distribution  was  passed 

to 

factors  such  as 

the 

investment  environment, 

its 

funding 

during  the  13th  board  meeting  of  the  15th  term.  This  proposal,  a  cash 

requirements,  domestic  and  overseas  competitive  landscape  and 

dividend  of  NT$45,017,096,342  from  retained  earnings  (NT$3.60  per 

its  capital  expenditure  forecast,  as  well  as  shareholders’  interest, 

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

balancing  dividends  and  UMC’s  long-term  financial  planning.  The 

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  2022  distributable  compensation  for  employees  and 

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

directors was passed during the 13th 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$9,160,484,673  as  employee  cash 

compensation and NT$45,000,000 as directors’ compensation.

There  is  no  difference  between  the  amount  passed  during  the  Board 

meeting and the recognized amount during 2022 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 2021:

In Thousand NT$

Item

Board Resolution(February 24, 2022)

Employees’ compensation distributed in cash

Directors’ compensation

4,770,909

25,264

Note: The actual distribution of employees and directors’ compensation for 2021 was consistent with the resolutions of the Board of Directors’ meeting held on February 24, 2022.

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

(2) Uncompleted Share Buyback Program: None.

90

United Microelectronics Corporation  |  Annual Report 2022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 7-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$2,100 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$6,200 million for the 5-year bond was repaid on March 24, 2022.

92

United Microelectronics Corporation  |  Annual Report 2022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$3,400 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 October 3, 2022.

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(Note)

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

Note: NT$2,100 million for the 10-year bond is green bond. Please find the Taipei Exchange website of Sustainable Bond Market Section (https://www.tpex.org.tw/web/

bond/sustainability/index.php?l=zh-tw) for the details of proceeds and impacts.

94

United Microelectronics Corporation  |  Annual Report 2022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

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 

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

Fixed rate; 0.63% p.a.

December 17, 2026

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$212,900,000

(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 2022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)

Exchangeable Price

Market Price High

Currency Linked Zero Coupon Exchangeable Bonds Due 2026

2023(Note)

2022

2021

2021.07.07
(Issue Date)

16,444,587

16,444,587

16,444,587

16,444,587

NT$583.3

US$90.69

NT$583.3

NT$709.2

NT$731.25

US$103.801

US$103.799

Low

US$85.588

US$82.163

US$98.660

Average

US$88.067

US$92.196

US$101.314

Issue Date

July 7, 2021

Reference Shares

Common shares of Novatek

Note: The data shown for 2023 is for the period January 1 to February 22, 2023.

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 135,044,926 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 22, 2023.

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

8.61

Low

6.59

2023

Average

7.83

High

11.69

Low

5.36

2022

Average

7.82

Note: The data shown for 2023 is for the period January 1 to February 22, 2023.

98

United Microelectronics Corporation  |  Annual Report 2022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 status of employee stock option certificates that have not yet reached the expiration 
date and their impact on shareholder rights.
None.

Issuance of Restricted Stock Awards for Employees

Febuary 22, 2023

Type of New Restricted Employee Shares

1st Tranche of Year 2020

2nd Tranche of Year 2020

Date of Effective Registration and Total Shares

2020.07.09
233,200,000 shares

Issue Date

2020.09.01

Number of New Restricted Employee Shares Issued

200,030,000 shares

2021.06.09

1,268,000 shares

New Restricted Employee Shares Not Yet to Be Issued

Issued Price (NT$)

New Restricted Employee Shares as a Percentage of
Shares Issued

Vesting Conditions of New Restricted Employee Shares

Restricted Rights of New Restricted Employee Shares

100

0 shares

The current issue is gratuitous

1.64%

0.01%

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 2022Issuance of Restricted Stock Awards for Employees (Continue)

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

Number of Released New Restricted Employee Shares

Number of Unreleased New Restricted Shares

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

3,087,850 shares

65,401,050 shares

131,541,100 shares

1.05%

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.

February 22, 2023

Type of New Restricted Employee Shares

Date of Effective Registration and Total Shares

Issue Date

Number of New Restricted Employee Shares Issued

New Restricted Employee Shares Not Yet to Be Issued

Issued Price (NT$)

New Restricted Employee Shares as a Percentage of Shares Issued

Vesting Conditions of New Restricted Employee Shares

1st Tranche of Year 2022

2022.10.06
50,000,000 shares

2022.12.05

23,059,500 shares

26,940,500 shares

The current issue is gratuitous

0.18%

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%), earnings per share 
(EPS) and Morgan Stanley Capital International (MSCI) ESG ratings as performance indicators. 
Listed  below  are  the  performance  targets  and  weighting  for  the  indicators.  Targets  are  set 
for  each  indicator.  Indicators  that  have  achieved  the  target  value,  the  number  of  vested 
shares  in  the  year  is  calculated  according  to  the  corresponding  weighting,  otherwise,  the 
corresponding weighting is 0%. The performance period refers to the fiscal year of the most 
recent annual financial statement audited by a certified public accountant before the vesting 
date. Performance indicators are based on the consolidated financial statements audited by a 
certified public accountant corresponding to the period required by the indicators.

Indicator

Weighting Target

Return on Equity (ROE%)

30%

Earnings Per Share (EPS)

30%

Higher than the Company’s average of the 
previous three years (Note 1)

Higher than the Company’s average of the 
previous three years (Note 1)

M or gan St anley C apit al 
International (MSCI) ESG 
Rating

40%

Rating is A or greater
(Note 2)

Note 1: Comparing the performance period with the average of the preceding three years. 
Note 2: The year of MSCI annual ESG rating is consistent with the performance period defined in 

the return on equity and earnings per share.

101

Capital OverviewIssuance of Restricted Stock Awards for Employees (Continue)

Restricted Rights of New Restricted Employee Shares

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.

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

Number of Released New Restricted Employee Shares

Number of Unreleased New Restricted Shares

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

Impact on Possible Dilution of Shareholdings

0 shares

0 shares

23,059,500 shares

0.18%

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

102

United Microelectronics Corporation  |  Annual Report 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
(%)

No. of 
Shares

Issued 
Price
(NT$)

Amount

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

Released

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

Vice President 

Vice President & Chief Human 
Resources Officer

Employee

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

Remi Yu 

Michael CY Wang 

Pang Min Wang 

J Y Wu 

Victor Chuang 

Yau Kae Sheu 

Chuck Chen 

Bellona Chen 

C P Yen 

Johnson Liu 

106,200

0.85

32,604

0

0

0.26

15,498

0.12

4,835

0

0

0.04

Note: Acquisition of restricted shares is accumulated until the date of publication of the annual report.

104

United Microelectronics Corporation  |  Annual Report 2022As of February 22, 2023/Unit: thousand shares and in thousand NT$

Unreleased

No. of Shares

Issued Price
(NT$)

Amount

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

73,596

0

0

0.59

10,663

0

0

0.09

105

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

3. The influence on the shareholder’s equity by receiving other company’s share:
UMC  issued  61,107,841  new  shares  to  exchange  for  53,163,821 
shares  of  Chipbond.  It  was  0.49%  of  paid-in  capital,  but  it  can 
increase  investment  in  Chipbond,  directly  obtain  around  7.2%  of 
the equity, and deepen the cooperation between two companies. In 
addition,  Chipbond’s  annual  after-tax  profit  per  share  in  2022  was 
8.41.  The  shareholders’  meeting  on  May  27,  2022  distributed  cash 
dividend of NT$0.5 per share and NT$5.5 per share through capital 
reserves.  UMC  will  also  participate  in  Chipbond’s  operating  results 
and increase the financial dividend income.

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

UMC issued new shares to exchange 53,163,821 shares of Chipbond, 
and the proposal was approved by Hsinchu Science Park Bureau and 
was registered the change of new shares on November 15, 2021. After 
completion of the share exchange, two parties have gradually carried 
out  the  cooperation  plan.  By  combining  the  technical  advantages  of 
both parties, it should have positive benefits to UMC’s finance, business 
and  shareholders’  rights  in  interests.  The  benefits  of  this  project  will 
gradually appear.

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 shall specify the status and its basic information: 
1. The status:

The proposal was adopted by the board of directors on September 3, 
2021 to issue new shares of UMC to exchange the shares of Chipbond. 
On September 3, 2021, the board of directors confirm that UMC issued 
61,107,841 new shares to exchange for 53,163,821 shares of Chipbond, 
and  the  par  value  of  the  share  is  NT$10,  and  the  total  amount  was 
NT$611,078,410. It was approved by TWSE on October 20, 2021 with 
the no. 1101805580 and was effective then. The share exchange record 
date was November 5, 2021. The proposal was approved by Hsinchu 
Science Park Bureau and was registered the change of new shares on 
November 15, 2021. The Company has scheduled November 26, 2021 
as the date for issuance and listing of new stock for capital increase.

The  Company  has  not  completed  any  merger  or  acquisition  of  another 
corporation  to  issue  new  shares  according  to  the  Company  Act  or 
Enterprises Mergers and Acquisition Act, nor has the Board of Directors 
approved  any  merger  or  acquisition  of  another  corporation  to  issue 
new shares according to the Company Act or Enterprises Mergers and 
Acquisition Act during 2021 and as of the Annual Report Printing Date.

In the latest year or as of the date of the annual report, issuance of new 
shares in connection with mergers or acquisitions or with acquisitions of 
shares of other companies shall specify the following matters:
The  latest  proposal  that  United  Microelectronics  Corporation(“UMC”) 
issued  new  shares  in  2021  to  exchange  the  shares  with  Chipbond 
Technology Corporation(“Chipbond”) was approved by TWSE on October 
20,  2021  with  the  no.  1101805580  and  was  effective  then.  The  share 
exchange record date was November 5, 2021. The proposal was approved 
by Hsinchu Science Park Bureau and was registered the change of new 
shares on November 15, 2021. In accordance with Article 9, paragraph 1 
subparagraph 8 of “Regulations Governing the Offering and Issuance of 
Securities by Securities Issuers”, UMC appointed Horizon Securities to 
submit the assessment opinion as of the third quarter, 2022.
1. The influence on the finance by receiving other company’s share:

UMC issued new shares to exchange 53,163,821 shares of Chipbond, 
without  using  cash  as  consideration,  and  this  did  not  affect  the 
Company’s  capital  allocation  and  financial  operation.  The  main 
business of UMC and Chipbond are foundry service and panel driver 
IC assembly and testing service; after the exchange of shares, the two 
parties  will  cooperate  fully  in  market  segments  such  as  panel  driver 
ICs, compound semiconductor power components and radio frequency 
components. Combining both parties’ advantages, integrate upstream 
and downstream supply chain resources to provide customers with all-
round services. In addition, Chipbond’s operation and profitability have 
been  stable  in  recent  years,  UMC  obtained  its  equity  through  share 
exchange,  it  will  also  participate  in  Chipbond’s  operating  results  and 
increase the financial dividend income.

2. The influence on the business by receiving other company’s share:

UMC  provides  high  quality  IC  fabrication  services,  focusing  on  logic 
and  various  specialty  technologies  to  serve  all  major  sectors  of  the 
electronics industry. Chipbond supplies a true full turnkey service for 
backend assembly processing of LCD driver ICs from wafer bumping to 
packaging. UMC joined Board of Directors on May 27th, two parties have 
gradually carried out cooperation in the field of driver ICs, integrating 
front-end and back-end process technologies, moving towards higher 
frequency and lower power consumption, and jointly providing a unified 
solution  for  the  panel  industry.  In  addition,  UMC  actively  invests  in 
GaN  power  component  development  and  RF  components  process 
development.  It  intends  to  combine  Chipbond’s  leading  position  in 
the packaging and testing market of power and RF components and 
advanced  packaging  technology  to  accelerate  the  development  of 
high-efficiency power market opportunities for components and 5G RF 
components will help to improve overall business competitiveness.

106

United Microelectronics Corporation  |  Annual Report 2022Status of New Shares Issuance in Connection with Mergers and Acquisitions (Continue)

2. The basic information of another 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

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

50,956,530

10,066,417

40,890,113

24,010,157

7,833,473

5,877,294

6,208,691

Earnings Per Share

8.41

Note: The data shown above is 2022 Financial Statements of Chipbond.

Funding Plans and Implementation

As of the end of the fourth quarter of 2022, the implementation of uncompleted funding plans was as follow:

Projects

Issue Date

Unsecured Straight Corporate Bond(110-1)

2021.04.22

Use of Proceeds

Purchase of equipment and environmental protection related expenditures

Chang of Plan

No change

Gross Proceeds

NT$9,600 million

Implementation Status

The actual implementation was 
NT$8,468.948 million. 
Purchase of equipment’s fund utilization finished in the first quarter of 2022. The rest will 
continue to be implemented according to the demand progress.

107

Capital OverviewOperations Overview

109  Business Activities
116  Overview of Market, Production, and Sales  
119  Employees 
120  Environmental Expenditure Information  
120 
123     Information Security Management
125  Major Contracts

Labor Relations 

108

United Microelectronics Corporation  |  Annual Report 2022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 to 

IC  industry.  The  Company  offers  comprehensive  solutions  to  meet 

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 

For the first half of 2022, the semiconductor industry continued enjoying 

and Foundry Industry

high growth, benefiting from the extra demand created by the pandemic. 

The  development  of  electronic  products  has  been  trending  towards 

However,  consumer  purchasing  power  decreased  significantly  in  the 

enhanced 

functionality, 

light  weight,  energy  saving,  and  artificial 

second half of 2022 due to the spike in energy prices caused by the Russia-

intelligence  (AI) 

technology.  The  growth 

in  applications 

for  5G 

Ukraine war, pandemic lockdowns in China, and rapid interest rate hikes 

smartphones,  automotive  electronics  and  electric  vehicles,  Internet  of 

to tackle skyrocketing inflation by Europe and the United States. All these 

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

factors  resulted  in  lower  annual  growth  for  the  semiconductor  industry 

of advanced packaging, have also affected the direction and increased 

than  the  forecast  at  the  beginning  of  the  year,  and  weakened  demand 

the complexity of chip design. Combined with the constant miniaturization 

for  consumer  electronics  products,  notably  smartphones  and  PCs,  led 

of  semiconductor  fabrication  processes,  these  developments  have 

to  elevated  inventory  levels  across  the  supply  chain.  Therefore,  the 

led  to  higher  technology  barriers  and  the  investment  required  has  also 

semiconductor supply chain, including foundries, entered into downturn 

increased many folds. 

cycle of inventory correction. By IC categories, logic, analog, sensor and 

microcontroller products continued to see growth while memory market 

The  requirements  of  enhanced  chip  performance  coupled  with  the 

declined  sharply.  Meanwhile,  the  IC  shortage  for  automotive  use  was 

continual  miniaturization  of  semiconductor  fabrication  processes  are 

getting improved.

raising the barriers to entry across semiconductor sectors, from design 

According  to  the  SIA  (Semiconductor  Industry  Association),  worldwide 

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

semiconductor revenue rose approximately 4.4% to US$580 billion in 2022.

The development costs of advanced process technologies and the capital 

expenditure for new tools and equipment have  also risen considerably. 

Looking  ahead,  global  economic  activities  are  generally  slowing  down 

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

and  the  outlook  for  2023  is  bearish,  with  global  inflationary  pressures 

distinct. Many integrated device manufacturers (IDMs) have announced 

and  the  ongoing  Russia-Ukraine  war  as  the  main  factors.  In  addition, 

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

largest  economies  still  remain  under  pressure  to  further  raise  interest 

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

rates, and the US-China technology competition is heating up. All these 

instead increasing the proportion of wafer manufacturing outsourced to 

uncertainties will affect the semiconductor market in 2023, and monitoring 

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

inventory  levels  will  be  the  key  focus  for  semiconductor  industry. 

and directly outsourcing fabrication. These industry trends are positive for 

According to the SIA, the global semiconductor market will decrease by 

the development of the foundry business. 

4.1%  to  US$557  billion  in  2023,  the  first  time  the  industry  will  contract 

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Operations OverviewIndustry Overview (Continue)

since 2019. Nevertheless, in the long-term, the semiconductor industry 

Overview of Semiconductor Industry Value Chain

will enjoy continuous growth, benefiting from mega trends in 5G, HPC, 

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

IoT, EV, and AI, as well as the semiconductor content increase in all major 

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

end systems.

testing and packaging.  IC designers produce designs of chips according 

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

In  the  first  half  of  2022,  the  wafer  foundry  industry  benefited  from 

have unique requirements, wafer foundries must provide comprehensive 

tight  wafer  supply  and  rising  wafer  average  selling  price.  Foundries’ 

process  technologies  and  intellectual  property,  as  well  as  continuous 

revenue repeatedly hit new highs. However, the overall global economy 

process optimization, to enable customers to successfully develop chip 

worsened and consumer confidence was impacted by high inflation and 

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

pandemic  lockdowns  in  China  during  the  second  half  of  the  year.  This 

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

situation weakened demand for consumer electronics such as PCs and 

they meet their design specifications. 

smartphones,  and  gradually  impacted  the  growth  of  foundry  industry. 

In  terms  of  the  overall  market,  the  foundry  industry  performed  well 

Development and Trends in the Electronics Industry

throughout  the  year.  According  to  market  research  firm  Gartner,  global 

The  electronics  industry  is  generally  divided  into  several  categories: 

foundry revenues surged approximately 30% to US$130.7 billion for 2022.

Computer,  communication,  consumer,  industrial  and  automotive.  The 

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

Looking  ahead  to  2023  for  the  foundry  industry,  we  expect  weak 

power  consumption,  greater  connectivity,  and  intelligence.  Emerging 

demand  will  persist  through  the  first  half  of  the  year,  impacted  by  the 

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

semiconductor supply chain inventory digestion, especially in consumer 

driving/electric  vehicles,  AI/deep  learning,  augmented  reality/virtual 

electronics market segments. Wafer shipment volumes and fab utilization 

reality (AR/VR) will continue to develop. The foundry sector works with 

rates of foundries will suffer as a result. Overall, 2023 foundry business 

upstream  and  downstream  partners  in  the  semiconductor  value  chain 

outlook will depend on the global economic environment. In response to 

to  enable  the  development  of  various  applications  and  to  capture  new 

market changes, foundries may adjust capital expenditures and capacity 

opportunities presented by trends in the electronics industry. 

expansion  plan.  Gartner  estimates  the  foundry  industry  for  2023  will 

experience a 2.1% decline to US$128 billion.

110

United Microelectronics Corporation  |  Annual Report 2022Overview of Technology and R&D

R&D Expenses for the Past 2 Years

Research and development expenses

2022

12,953,534

In Thousand NT$

2021

12,934,836

Note: For the period from January 1, 2023 to the printing date on February 22, 2023, the unaudited research and development expenses amounted to NT$1,431,687,000.

Technologies or Products Successfully Developed Within the Past 2 Years

Year

2021

2022

R&D Achievements

‧ Introduced into 5G and network communications  applications, the 14nm FinFET platform compact process (14FFC) successfully entered mass 

production and the Company 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.

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

and entered mass production.

‧ Low temperature polycrystalline oxide panel (LTPO OLED) driver chip products using 28nm high voltage 27V process technology entered mass production.
‧The 40nm non-volatile memory process platform completed vehicle verification and entered mass production.
‧40nm resistive random access memory entered mass production.
‧55nm RFSOI process entered mass production to meet the 5G sub-6 GHz market demand.
‧Power management chip (PMIC) using 0.11µm BCD power integrated circuit technology platform completed product verification and successfully entered 

mass production.

‧	The 22nm process platform, widely used in consumer electronics fields such as wearable devices and wireless network communications, entered 
mass production with several customer products, and the RF/mmWave models have been completed. In addition, the 22nm automotive product 
platform completed reliability and durability verification, and related automotive intellectual property (IP) is in progress.

‧	The 22nm ISP process technology completed component modeling and design specifications, and also developed specialty IPs.
‧ The 22nm High Voltage 25V process technology of LTPO OLED driver chip has completed product verification.
‧	In the 22nm magnetoresistive memory (MRAM) process technology, the high-density 1Gb HDMRAM chip product used in aerospace/low earth 

orbit satellite communications has entered trial production.

‧	28HPC+ high-performance computing image signal processor (ISP) technology has entered mass production with the industry's highest-end 

200-megapixel  mobile image sensor with smallest pixel size.

‧	In the 28nm ultra-low power consumption embedded high-voltage active matrix organic light-emitting diode (AMOLED) display driver chip technology 

development, the process technology completed component modeling and design specifications.

‧	0.11µm BCD platform combined with embedded non-volatile memory (eNVM) has completed component modeling and design specifications, and has 

also developed specialty automotive IPs.

‧	Wafer-to-Wafer (W2W) hybrid bonding technology completed customer product verification.

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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 

with the current 28nm technology products on the market, the 22nm ULP/

development  of  logic  process  technology.  With  the  adherence  to  the 

ULL image signal processor (ISP) platform technology can provide lower 

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

core operating voltage and better energy consumption performance, and 

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

has  established  component  models,  design  specifications,  and  related 

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

silicon IP. The 22nm ISP is expected to enter trial production in 2023.

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

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

28nm High-Performance Process Technology

recruit and train a large number of R&D talent. In 2022, UMC continued 

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

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

stack  technology.  The  28nm  high-performance  computing  process 

reaching  NT$13  billion,  which  has  led  to  fruitful  R&D  achievements  in 

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

logic and specialty technologies.

14nm Process Technology

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

introduced  and  entered  mass  production  in  2021.  Furthermore,  the 

industry's  highest-end  200-megapixel  image  sensor  product  with  the 

UMC  reached  the  mass  production  milestone  for  its  customized  14nm 

smallest pixel size using UMC’s 28nm ISP technology has entered mass 

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

production  in  2022.  The  28HPC+  millimeter  wave  (mmWave)  process, 

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

providing a complete RF solution, has been verified by performing a low 

UMC  successfully  introduced  its  14FFC  FinFET  Compact    platform, 

noise amplifier (LNA) IC tape-out with first pass silicon success, leveraging 

which  exhibited  55%  performance  improvement  and  twice  the  gate 

UMC’s  28HPC+  process  technology  and  the  certified  mmWave  design 

density compared to the 28nm process. With the characteristics of high 

flow with RF solution. UMC’s production-proven 28HPC+ solution is ideal 

performance,  low  latency  and  low  power  consumption,  14FFC  can  be 

for high-speed mmWave devices and provides silicon-accurate models 

used widely across various logic/analog/mixed-signal/RF and other high-

for circuit applications up to 110GHz. It is suitable for applications ranging 

end  electronic  products,  providing  customers  with  solutions  with  both 

from mobile devices, automotive electronics, to Artificial Intelligence of 

high performance and low power consumption. Currently, the yield rate 

Things (AIoT).

of customer products designed on UMC’s 14FFC platform has exceeded 

90%, meeting customer requirements. The platform has been introduced 

Display Driver IC and Power Management Process 

into 5G and network communications applications, and has entered mass 

Technologies

production.

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

UMC has developed 22nm ultra-low power and ultra-low leakage (ULP/

ULL)  process  technology  successfully.  Compared  to  the  28nm  high 

performance  compact  process  technology  platform  (28HPC),  with  the 

same number of mask layers and compatible design criteria as 28nm, the 

performance of 22nm process technology has been enhanced by 10%, 

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

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

Based  on  its  superior  high-voltage  processes,  UMC  has  the  biggest 

market  share  in  the  global  liquid  crystal  display  (LCD)  display  driver 

IC  (DDI)  market,    and  is  also  the  first  foundry  to  offer  a  28nm  OLED 

DDI technology platform. Low temperature polycrystalline oxide (LTPO) 

OLED panel driver chip products using 28nm high-voltage 27V process 

technology have entered mass production. The LTPO OLED driver chip 

product  of  22nm  high-voltage  25V  process  technology  has  completed 

product  verification  and  is  expected  to  enter  trial  production  in  2023. 

In  terms  of  the  development  of  28nm  ultra-low  power  embedded  high-

voltage  active  matrix  organic  light-emitting  diode  (AMOLED)  DDI 

technology, the component model and design specifications have been 

been greatly improved to provide customers with more process options. 

completed, and it is expected to enter trial production in 2023.

The 22nm ULP/ULL technologies reached the mass production milestone 

for customer digital TV (DTV) chips in 2020. UMC R&D teams continue 

to  optimize  the  process  and  expand  the  scope  of  product  applications 

in  electronic  products  such  as  analog,  mixed-signal,  RF  technology, 

Internet  of  Things,  and  mobile  devices.  Relevant  specifications  for 

automotive electronic products are also under development. Under the 

architecture  of  the  22nm  process  platform,  the  design  specification  for 

the automotive Grade-1 platform has been successfully established, and 

the reliability and durability verification have been completed. Compared 

Power  management  IC  (PMIC)  with  higher  voltage  can  reduce  energy 

loss during voltage conversion, thereby decreasing energy consumption. 

To  serve  the  demands  for  various  PMIC  applications,  UMC  provides 

Super  High  Voltage  (5V  and  30V  in  coordination  with  300V,  500V  or 

700V) processes. UMC also provides a high voltage process technology 

platform that is compatible with standard logic and a complete IP core 

library. Combined with world-class Low Conduction Resistance and High 

Sustain  Voltage  components,  the  platform  serves  power  management 

applications  for  mobile  phones,  tablets,  automotive,  and  industrial 

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United Microelectronics Corporation  |  Annual Report 2022Overview of Technology and R&D (Continue)

systems.  UMC’s  Bipolar-Complementary  Metal  Oxide  Semiconductor-

RFSOI has also entered the development stage, with a view to deploy in 

Double  Diffusion  Metal  Oxide  Semiconductor  (BCD,  Bipolar-CMOS-

the  market  above  40GHz  in  the  future.  UMC's  RF  Foundry  Design  Kit 

DMOS)  process  can  provide  various  required  high-voltage  operating 

(FDK) allows users to design optimized inductors/capacitors in minutes 

capabilities  for  PMIC.  Following  the  successful  mass  production  of 

with simple steps through convenient software. These powerful solutions 

the  Company’s  0.11µm  BCD  technology,  its  0.11µm  BCD  platform 

make UMC's RF technology one of the most competitive technologies in 

combined with embedded non-volatile memory platform has completed 

the semiconductor industry.

the automotive component model and design specifications, as well as 

automotive IP. The development of a next-generation customized PMIC 

CMOS Image Sensor (CIS) and MEMS Process Technologies

for mobile phones has also made good progress and is expected to enter 

UMC provides customers with high-performance complementary metal 

trial production in 2023.

Non-Volatile Memory Process Technologies

oxide  semiconductor  image  sensor  (CIS)  solutions  that  have  been 

adopted by global leaders in mainstream applications such as portable 

devices,  medical  devices,  ambient  light  sensors,  surveillance  systems, 

UMC  provides  eNVM  specialty  processes  and  their  supporting  IP 

and more. The 55nm back-illuminated image sensor (BSI) CIS process 

solutions  from  180nm  to  22nm  for  applications  in  AIoT,  automotive 

technology has entered mass production, which can be applied to high 

electronics, industrial control, and various 3C products. The 40nm non-

dynamic  range  (HDR)  related  products,  such  as  surveillance,  driving 

volatile memory eFlash process platform has been adopted by customers 

record (Dash CAM) and AIoT applications to meet the customer demand 

and  entered  mass  production.  The  development  progress  of  28nm 
embedded SuperFlash® non-volatile memory platform (ESF4) is also in 

line  with  expectations;  it  has  achieved  a  stable  yield  rate  and  is  ready 

for  reliability  verification.  The  product  is  expected  to  meet  the  demand 

for AIoT. 

Resistive  Random  Access  Memory  (RRAM)  is  a  novel  non-volatile 

for  high  sensing  resolution  and  fast  focus  function  (PDAF),  as  well  as 

product  diversity.  For  CMOS  image  sensor  technology  development, 

UMC’s  65nm  process  has  been  verified  to  enter  the  mass  production 

stage.  The  new  processes,  such  as  BIS  and  55nm  CIS  process 

technologies,  have  entered  the  verification  stage.  This  technology  is 

expected to provide higher sensing resolution to meet product upgrade 

memory with simple structure, low operation voltage,  low  read current, 

requirements. 

fast program/erase speed and very good reliability. Moreover, it is fully 

logic compatible with less add-on masks and low extra cost. The 40nm 

RRAM has entered mass production, while the 22nm RRAM technology 

platform development is in progress, and is expected to be applied in AIoT 

related products. 

The  new  generation  of  embedded  Magnetoresistive  Random  Access 

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

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

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

retention.  UMC  has  been  investing  in  the  R&D  of  eMRAM  process 

platform since 2018. The 22nm high-density 1Gb HDMRAM product, to 

be applied in aerospace and LEO satellite communications, entered trial 

production in 2022.

RFSOI Process Technologies

By  developing  advanced  sensors  with  second-generation  micro-

electromechanical  (CMOS-MEMS)  technology  and  cooperating  with 

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

sustaining  medical  respirators  for  critically  ill  patients  to  combat  the 

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

chips  produced  with  the  temperature  and  humidity  sensor  are  used 

to  monitor  the  temperature  during  the  cold  chain  transportation  of  the 

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

the  spread  of  the  epidemic.  In  the  post-epidemic  period,  temperature 

control  chips  can  be  used  in  the  cold  storage  supply  chain  to  provide 

consistent 

temperature  control  and  digitalization 

for 

the  storage 

and  transportation  of  medicine,  food  and  chemicals.  In  response  to 

greenhouse  gas  emissions  control,  the  carbon  dioxide  sensors  can 

regularly  monitor  the  concentration  and  trend  of  carbon  dioxide  in  the 

air.  Precise  management  of  high-concentration  areas  and  emissions 

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

information  can  help  the  responsible  units  take  timely  and  appropriate 

prevent  high-frequency  signal  harmonic  frequency  distortion  and  to 

control measures. UMC makes every effort to develop environmentally-

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

friendly technologies to contribute to the sustainable future of the planet.

phones for RF switches. Following 90nm RFSOI process mass production, 

the  55nm  RFSOI  process  also  entered  mass  production  in  2021,  and 

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

develop the 40nm RFSOI technology platform to capture subsequent 5G/

mmWave  growth  trends.  UMC  leads  the  industry  in  manufacturing  12-

inch RFSOI wafers and has achieved a global market share of 18%. 22nm 

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

Compound Semiconductors

process generations according to customer needs and has successfully 

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

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

targets  key  niche  markets  such  as  communication  components  and 

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

third-generation semiconductor power components. Continuing to adopt 

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

SAW filter integration solutions, the existing gallium arsenide (GaAs) HBT 

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

power amplifiers is an integrated solution for mobile phone RF front-end 

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

modules and WiFi6/7 communication modules. For GaAs pHEMT, UMC 

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

will continue to develop key chip technologies suitable for 5G mmWave 

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

base  stations  and  Ka/Ku-band  low-orbit  satellite  receiver  chips.  In 

a competitive design support environment.

addition, as for the third type of wide-bandgap  component  technology, 

UMC actively invests in the development of gallium nitride power (Power 

Intellectual Property

GaN)  and  microwave  (RF  GaN)  technology  platforms,  targeting  the 

Intellectual property (IP) is at the core of business growth and corporate 

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

competitiveness for the semiconductor industry. As industry players vie 

satellite communication components. The 650V GaN power components 

for  technology  leadership,  UMC  strives  to  protect  and  leverage  our  IP 

are expected to enter trial production in 2023.

3D W2W Hybrid Bonding Technology

assets by linking our patent and trade secret protection mechanism with 

the  Company’s  business  strategy.  Following  the  Company's  operation 

and  development  planning,  the  Company's  IP  division  has  formulated 

UMC’s  2.5D  interposer  technology  has  been  in  mass  production  to 

strategies  and  plans  for  the  protection  and  development  of  intellectual 

high-end CPU/GPU customers for years. For 3D wafer-to-wafer (W2W) 

property  to  promote  the  steady  growth  of  the  number  of  patent  rights. 

hybrid  bonding  technology,  the  Company  is  adopting  a  open  supply 

Status on the implementations is reported to the board of directors at least 

chain cooperation model, to provide customers with reliable and flexible 

once  a  year.  In  2022,  we  added  348  patents  to  our  portfolio,  including 

solutions.  In  the  meantime,  as  to  the  application  of  radio  frequency 

199  in  the  United  States,  37  in  Taiwan,  108  in  China,  and  4  in  another 

components,  UMC  has  completed  the  chip  design  for  a  customer’  RF 

countries, bringing the cumulative number of patents to 14,771. 

product, using 3D W2W stacking technology to reduce chip area by 40%. 

As trade secret protection become increasingly critical, UMC has stepped 

The  product  has  completed  verification,  and  is  expected  to  enter  trial 

up internal compliance training and established a robust IP management 

production in 2023. 

Silicon IP Support

system. In 2022, UMC achieved Taiwan Intellectual Property Management 

System (TIPS) certification for the second year, with our certification level 

improving from A to AA, underscoring our unwavering commitment to IP 

Along  with  the  design  trends  toward  more  precise  deep  sub-micron 

and corporate governance best practices.

generation  processes  and  increasing  design  complexity,  foundry  can 

no longer only focus on process yield improvement, but must also help 

customers  shorten  their  design  flow  and  reduce  design  cost.  In  terms 

of library design kits, UMC strengthens its design support capability by 

constantly providing optimized library design kits closely integrated with 

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

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

technologies  to  specialty  processes,  UMC  can  provide  complete 

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

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

for  advanced  processes  can  provide  devices  of  various  operating  and 

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

various customer needs for design flexibility and high performance/low 

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

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

help customers design competitive products that can pass the ESD test 

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

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

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

provides  customized  embedded  flash  memory  (eFlash)  IP  on  various 

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United Microelectronics Corporation  |  Annual Report 2022Long-Term and Short-Term Business Plans

UMC  is  committed  to  delivering  comprehensive  wafer  fabrication 

such  as  high-efficiency  power  components  and  RF  components.  UMC 

solutions  to  its  customers  through  close  cooperation  with  supply  chain 

continues focusing on developing our own technology platforms as well 

partners  providing  equipment,  automated  electronic  design  tools,  IC 

as  exploring  collaborations  with  strategic  partners  on  joint  technology 

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

development projects.

testing services, which enables the Company to provide customers with 

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

UMC  expects  to  invest  about  US$3  billion  in  capital  expenditure  in 

and  diversified  options  for  packaging  and  testing.  Combined  with  the 

2023 in order to meet the long-term needs of customers and meet the 

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

company’s long-term growth goals. The amount will mainly be used for 

manufacturing,  UMC  can  ensure  fast  time  to  market  for  customers’  IC 

the  production  capacity  deployment  in  Fab  12A  P6  and  Fab  12i  P3  in 

products.

order to increase 28nm and 22nm capacity. UMC has signed long-term 

supply  agreements  with  customers  for  these  new  capacities  to  ensure 

Short-Term Objectives

stable orders and reduce risks.

UMC’s  short-term  objectives  will  be  affected  by  global  economic 

uncertainties and weak market demand. In addition to tracking inventory 

ESG has emerged as the global focus for all stakeholders in recent years. 

levels in the supply chain, UMC also reviews its capital expenditure plans 

As a world leading semiconductor foundry company, UMC endeavors to 

and makes appropriate adjustments. In addition, with the new production 

put the highest priorities on all addressable aspects, improves sustainable 

capacity of Fab 12A P6 coming online, the Company will actively support 

development  policies,  systems  and  related  management  guidelines. 

customers' needs of 28nm wafers. At the same time, UMC works closely 

UMC  received  various  ESG  honors  in  2022,  such  as  inclusions  in  the 

with  our  customers  and  pays  attention  to  market  conditions.  We  help 

FTSE4Good Emerging Index, FTSE4Good TIP Taiwan ESG Index, and 

customers  maintain  market  competitiveness  and  as  well  as  our  own 

the DJSI-World (Dow Jones Sustainability Indices-World). Entering 2023, 

UMC will actively work towards its goal of achieving net-zero emissions by 

2050 through lowering emissions from its operations, address value chain 

emissions together with partners, and invest in net-zero technologies.

capacity utilization rate. 

Medium-to-Long-Term Objectives

For  medium-to-long-term  objectives,  UMC  will  continue  developing 

differentiated  process  and  assist  our  customers 

to  enhance 

competitiveness.  Technology  R&D  and  profitable  operations  have 

always been the core focus of the Company’s business. UMC possesses 

comprehensive  process  nodes  and  diversified  specialty  technology 

platforms to meet market demand, enhance market share, and achieve 

its  medium-  to-long-term  goals  through  optimizing  product  portfolio 

and improving profitability. UMC will continue to focus on differentiated 

and  leading  specialty  process  including  low-power  logic,  BCD,  eHV, 

eNVM  and  RFSOI.  In  terms  of  long-term  goals,  UMC  has  invested  in 

compound semiconductor gallium nitride (GaN) power components and 

RF  components.  UMC  also  targets  high-growth  market  opportunities 

115

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

Sales by Geographic Region 
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 61% and 24% of 2022 operating revenues, 
respectively. Europe and Japan combined account for 15% of 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 world leading semiconductor wafer foundry. The total revenue 
of the global pure-play wafer foundry market in 2022 was approximately 
US$130.7 billion. According to estimates by market research firm Gartner, 
UMC  remains  the  second  largest  pure-play  foundry  manufacturer  with 
7.3% share of the pure-play wafer foundry market. Its main competitors 
include  TSMC,  Samsung  Foundry  (note:  exclude  foundry  for  Samsung 
in-house products), GlobalFoundries and SMIC.

Foundry Industry Outlook
•  According to the Semiconductor Industry Association (SIA), global 
semiconductor revenue is forecasted to shrink 4.1% in 2023 to US$557 
billion, reflecting the headwinds from inventory digestion and weak end 
market demand. For 2023, Gartner estimates a 2.1% decline for the 
foundry industry to US$128 billion. 

integrated  device  manufacturers  (IDMs)  are 

•  Fabless companies tend to outperform the semiconductor industry, 
while 
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
•  UMC is optimistic about the demand for chips in the 5G, AIoT, 
and computing markets. To capture growth from these markets, the 
Company has invested appropriately in R&D and capacity expansions. 
The Company is also actively enhancing and developing its specialty 
technology solutions, such as high voltage, embedded flash memory, 
advanced packaging, RFSOI, and compound semiconductor GaN 
in order to secure more product collaborations with customers. In 
addition, UMC is establishing an open technical platform with its 
packaging and testing partners to provide complete solutions for 
customers.

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

116

•  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 Tainan, 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 
for UMC in technology development.

• 

•  UMC has built an industry-leading, dedicated IoT platform, providing 
ultra-low-power (ULP) processes with extremely low leakage suitable 
for all kinds of hybrid process technologies. IoT chip designers can 
integrate various process schematics with the customized platform 
based on UMC’s low power consumption technology in order to meet 
the specific requirements to enter the IoT and wearable electronic 
device markets.

•  UMC's 28nm embedded high-voltage technology has entered volume 
production for AMOLED display driver chips for customers to improve 
the power efficiency of mobile phones. The next-generation 22nm 
embedded  high-voltage  process  technology  is  currently  under 
development, which will enhance competitiveness of UMC and its 
customers in this field. 
In addition to the original polysilicon oxynitride (Poly-SiON) process, 
UMC's 28nm high-K/metal gate process has also successfully entered 
volume production. The process has also obtained automotive-grade 
verification and required IP are now available on the platform.

• 

•  UMC's 22nm platform can further reduce cost and improve device 

performance.

•  UMC's 14nm FinFET process technology is 55% faster than its 28nm 
technology, and the power consumption is also reduced by about 
50% compared to the 28nm process.

•  UMC's 28nm millimeter wave (mmWave) process technology provides 
advanced solutions for automotive radar, 5G mobile communication, 
medical, and industrial products.

•  UMC's RF Silicon-on-Insulator (RFSOI) technology meets the 
stringent requirements of the mobile phone applications including for 
front-end RF switches, low-noise amplifiers, and provides first-class 
performance.

•  UMC's 40nm embedded flash memory process platform combined 
with SST (Silicon Storage Technology) embedded SuperFlash® non-
volatile memory process technology platform reduce unit size by 
more than 20% compared with the 55nm embedded flash memory 
process platform. Applications include products such as SIM cards, 
financial transactions, automobiles, Internet of Things, and MCUs.
•  UMC’s 28nm embedded flash memory process platform and 22nm 
RRAM (Resistive Random Access Memory) provide customers with 
more suitable and flexible options at 28/22nm platform.

•  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 
complementary and complete advanced packaging platform on top of 
reliable 2.5D/3D IC solutions.

United Microelectronics Corporation  |  Annual Report 2022Overview of Market, Production, and Sales (Continue)

•  UMC has also developed a new semiconductor material process for 
high voltage and high frequent applications in the 5G era, including 
gallium  arsenide  (GaAs)  and  gallium  nitride  (GaN).  These 
developments  will  secure  UMC’s  position  in  third-generation 
semiconductor materials and contribute to the Company’s future 
growth.

Unfavorable Factors for the Company’s Development
•  Given the optimistic outlook for semiconductor demand, major 
foundries around the world have increased  capital  expenditures 
to expand capacity. This may cause volatility in market supply and 
demand dynamics in the future. 

• 

•  Major economies are imposing sanctions to constrain competing 
countries, which has led to restructuring of the supply chain. UMC 
will continue to monitor the impact. 
In order to ensure semiconductor supply, many countries are 
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.
•  The foundry industry is facing pressure of higher capital expenditures 
as investments become increasingly expensive. Industry leaders may 
use this as a competitive differentiation, and certain countries may 
also use subsidies to create unfair competition. New fab equipment is 
also expected to require longer lead times. Therefore, it is necessary 
to be more cautious about any expansion plans going forward.

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 
cost, 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  competitors  by  strengthening  process 
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. 

Main Purposes and Production Processes 
of Key Products
Main Process Technologies and Corresponding Products
•  CMOS Logic: for fabricating chips that execute logic computing 
functions, such as programmable gate array, multimedia processor, 
and application processor chips.

•  Mixed-Signal: for fabricating chips which can simultaneously 
process  analog/digital  mixed  signal,  such  as  ICs  for  broadband 
access communication and optical storage.

•  RF CMOS: for fabricating high frequency wireless communication 
chips, such as ICs for cellphone RF transceiver, Wireless Local Area 
Network (WLAN) and Bluetooth.

•  Embedded Memory: for fabricating integrated logic and memory chips 
with  high  performance  and  low  power  consumption  features,  such 
as chips for general purpose micro-controller, touch controller, smart 
card and micro-controller for automotive or IoT etc.

•  High Voltage: for fabricating driver ICs for LCD TV, cellphone, tablet, 

AR/VR, e-paper screen driver IC, and power management IC.

•  CMOS Image Sensor: for fabricating CMOS image sensors used in 
digital camera, cellphone, notebook, optical mouse, and webcam.
•  MEMS: for making application products such as microphone, inertia 

sensor, and pressure sensor.

•  3D FinFET: for fabricating high performance chips and chips for 
executing  fast  logic  computation,  such  as  mobile  phone  baseband 
processor, application processor, and memory controller. 

•  RFSOI process: for fabricating wireless front-end chips, such as 
wireless switch, tuner used by mobile phones, WLAN, and wireless 
base station.

•  GaAs process: for power amplifier IC of handset and base station.
•  GaN process: for RF IC of power amplifier IC; low-noise amplifier 
(LNA) in 5G base station; DC-DC converter in high-power portable 
battery  charger  in  handset,  tablet,  and  notebook;  power  supply  of 
workstation  and  server;  and  DC-DC  converter  in  electric  vehicle 
applications.

•  3D-IC package: for many applications in CIS image sensor, HPC, 5G, 

datacenter, and automotive applications.

Production and Fabrication Process
A  complete  IC  fabrication  process  can  be  divided  into  five  stages, 
including IC design, mask fabrication, wafer fabrication, packaging, and 
testing. UMC is dedicated to the R&D of IC process technologies in order 
to enable the IC designs of customers.

117

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,  France, 
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.

Suppliers Who Account for More than 10% Of the Net 
Purchase Amount

In Thousand NT$

Name

Supplier “ A”

Others

Net Purchase

2022

2021

Amount Percentage of 
Net Purchase

Relation to UMC

Amount Percentage of 
Net Purchase

Relation to UMC

5,263,033

47,478,738

52,741,771

10

90

100

None

4,888,380

41,595,697

46,484,077

11

89

100

None

Note: The company listed on the TWSE or traded on the TPEx shall include in its disclosures the most recent financial data which were audited or reviewed by a certified public accountant 

for the period closest to the printing date of the annual report: None.

Reasons: The purchase amount of supplier “A” increased due to signing long-term agreement to avoid price fluctuations and supply risks.

Customers Who Account for More than 10% of the 
Operating Revenues

Name

Customer “A”

Others

Operating Revenues

278,705,264

2022

Relation to UMC

Amount

Amount

Percentage 
of Operating 
Revenues

24,061,849

254,643,415

9

91

100

None

21,935,208

191,075,810

213,011,018

Percentage 
of Operating 
Revenues

10

90

100

In Thousand NT$

2021

Relation to UMC

None

Note: The company listed on the TWSE or traded on the TPEx shall include in its disclosures the most recent financial data which were audited or reviewed by a certified public accountant 

for the period closest to the printing date of the annual report: None.

Reasons: The sales amount of customer “A” increased due to the increased demand of communication products, and the change of sales percentages 

reflected the more diversified customer portfolio.

118

United Microelectronics Corporation  |  Annual Report 2022 
 
 
 
 
Production Figures

Segments

Unit Capacity

Production 
Quantity

Production Value 
(In Thousand NT$)

Capacity

Production 
Quantity

Production Value 
(In Thousand NT$)

2022

2021

10,031

10,088

147,564,890

9,453

9,880

136,522,911

Wafer 
Fabrication

In Thousands 
of 8-inch Wafer 
Equivalents

Sales Figures

Segments

Unit

Shipments

Wafer 
Fabrication 

Note: Net Sales.

In Thousands 
of 8-inch Wafer 
Equivalents

Domestic

Export

3,199

6,746

2022

Amount 
(In Thousand NT$)

84,317,100 

 181,283,073 

Shipments

3,842

6,021 

2021

Amount 
(In Thousand NT$)

79,092,769 

 125,501,630 

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 2023 was gathered until February 22, 2023.

2023

12,373

821

5

7,256

20,455

2023

38.4

2023

11.4

2022

12,390

824

5

7,461

20,680

2022

38.1

2022

11.3

2021

11,606 

813 

4 

7,318 

19,741 

2021

38.0

2021

11.4

2023

2022

2021

1.4

27.8

50.3

20.5

1.4

27.6

50.5

20.5

1.4

27.3

49.6

21.7

119

Operations OverviewEnvironmental Expenditure Information

By the publication date of the 2022 annual report, all audits on UMC by 

NT$108 million, while the monthly waste disposal cost exceeded NT$15.85 

environmental  protection  agencies  showed  results  in  compliance  with 

million. Meanwhile, NT$16 million has been spent on annual environment 

regulatory requirements with no environmental protection violations or any 

monitoring to track the overall emission of pollutants. In addition, in response 

penalty or loss resulting from environmental pollution. 

to RoHS (Restriction of Hazardous Substances), around NT$460,000 has 

UMC  has  identified  environmental  risks  during  the  operational  process 

been  spent  on  continuous  certification  of  the  QC-080000  IECQ  HSPM 

according 

to 

the  spirit  of 

international  environmental  management 

system, product inspection, and educational training. 

system (ISO 14001) standards, based on which corrective and preventive 

In the future, the Company’s primary environmental protection expenditures 

measures can be continuously conducted, including equipment hardware 

and items will include: 1. Costs of replacement, renewal, and upgrade of 

improvement,  enhancement  of  personal  educational 

training,  and 

existing  pollution  prevention  equipment;  2.  Operational  costs  of  pollution 

strengthening of operating system management. 

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

In  2022,  the  total  environmental  protection  related  expenditures  for 

monitoring costs.

UMC fabs in Taiwan and Singapore have exceeded NT$4.61 billion. The 

environmental capital expenditures investment in highly efficient pollution 

prevention technology and preventive equipment etc. amounted to NT$2.92 

billion,  including  NT$767  million  investment  in  energy  saving,  carbon 

reduction  and  green  energy  related  equipment.  The  monthly  pollution 

prevention expenses and O&M of pollution prevention equipment exceeded 

Labor Relations

UMC  has  consistently  valued  employee  benefits  and  welfare,  and  has 

working  environment.  Through  continuous  efforts,  UMC  has  received 

actively  cultivated  talent,  implemented  labor  laws  and  regulations, 

numerous awards from the Science Park Bureau for promoting workplace 

protected  employee  rights  and  interests,  and  created  a  bright  and 

safety and health, labor relations, and the national excellence award for 

pleasant  working  environment.  UMC  complies  with  various  local  laws 

friendly workplace. 

and regulations, and strengthens employee awareness to prevent labor 

From 2022 to the publication of this annual report, UMC has not suffered 

disputes.  Through  channels  such  as  labor-management  meetings, 

any loss arising from labor disputes. And with the establishment of the 

divisional meetings, forums, suggestion boxes, grievance hotlines staffed 

aforementioned  comprehensive  system  and  the  Company's  ongoing 

by  complaint  specialists,  and  communication  management  units,  the 

efforts  to  manage  effectively,  UMC  is  able  to  effectively  avoid  labor 

Company has achieved competent communication and effective problem-

disputes and losses.

solving.

In  addition  to  effectively  maintaining  harmonious  labor  relations,  UMC 

respects and promotes international human rights by providing employees 

with  a  quality  employment  environment.  Moreover,  in  UMC  and  all  its 

subsidiaries,  the  management  and  implementation  of  labor  relations 

such as employee welfare measures, in-service education, training and 

retirement  systems  are  planned  and  conducted  in  accordance  with  or 

above and beyond the requirements of law. UMC has also set up in-house 

physicians to provide medical services and quality counseling services for 

the physical and mental health needs of employees, thereby promoting 

harmonious labor relations.

UMC  is  committed  to  providing  employees  with  a  safe  and  friendly 

Education and Training

High-quality talent is the cornerstone of UMC’s competitiveness, and 

courses. In addition, a wide range of learning resources such as online 

comprehensive  talent  development  and  cultivation  are  the  keys  to 

learning courses, on the job training (OJT) and in-service training are 

improving human resource quality.

also offered to provide all employees with a working environment that is 

UMC’s human resource cultivation policies are tailored according to the 

conducive for continuing development. In 2022, UMC conducted a total 

career development needs of employees in their particular job type and 

of 8,581 training sessions, totaling 16,215 hours of training, with 189,693 

rank. The policies provide systematic training for all employees, such 

participants and total training expenses of NT$76,627 thousand.

as new employee, technical, management, quality control and language 

The following is a summary of training courses provided by UMC:

120

United Microelectronics Corporation  |  Annual Report 2022•  New Employee Orientation: To help new employees quickly adapt to  

improve the quality of work. The Human Resource Division conducts  

the  work  environment,  orientation  training  is  provided  for  new  

  an annual review of training outcome to determine and direct the  

  employees  to  give  them  a  basic  understanding  of  semiconductor  

  operations of the Education Committee in each fab, and convenes a  

  processes and establish a common language. In addition to basic  

training outcome meeting so that the fabs can share their experience.

  courses on company organization, remuneration and benefits, basic  

•  External Training: UMC provides employees (including dispatched 

  daily necessities and industrial safety, U-Camp courses on workplace  

and temporary) to participate in external training (including domestic 

  stress management and adopting a positive attitude also help new  

and foreign training), and publishes information on external training 

  employees understand the spirit and values of UMC. To help new  

courses to encourage employees to participate in external training 

  employees quickly develop professionalism and an appropriate job  

related  to  their  positions,  and  those  who  have  been  approved  by 

  attitude, they are paired with a mentor to help them quickly integrate  

supervisors in advance to participate in external training are qualified 

into the corporate culture.

to  apply  for  company  subsidies  for  training  expenses.  After  the 

•  Technical  Training:  To  help  engineers  quickly  master  the  overall  

training, colleagues will bring their training experience, achievements 

technologies  and  continue  to  advance  technologically,  UMC  has  

and new knowledge back to the Company for exchange and sharing. 

  a comprehensive training blueprint for engineers that is specific to  

Through the external training mode, colleagues can further expand 

  divisional attributes. The curriculum includes basic courses (General  

and broaden their knowledge in the professional field.

to  Level  2  courses)  and  advanced,  technology-specific  themed  

.•  In-service Training: UMC provides information on in-service courses  

  seminars (Level 3 - 4 courses) to enhance the technical capability of  

  offered by outside colleges and universities, promotes educational  

the engineers and develop a system of internal exper ts. In 

resources and offers subsidies for in-service training to encourage  

addition, to equip employees with multiple skills and promote cross-

  employees to develop the professional competencies or management  

divisional cooperation, UMC continued to promote promoting inter-

  skills required at each stage of their career.

divisional training courses in 2022 to increase the depth and breadth 

•  Business  Ethics  Training:  To  enhance  the  behavioral  literacy,  

of professional and technical training for employees. Furthermore, 

  professional ethics and professional competence of UMC and all its  

curriculum content is continuously improved to meet the rapid changes 

  employees, courses on employee ethics, insider trading prevention  

and progress of technology.

  and  conflict  of  interest  are  conducted  within  the  Company  and  

•  Management Skills Training: Management skills development is an  

  promoted in the Planning Section of the UMC intranet site. To gain  

important task for supervisors at all levels. To this end, UMC provides  

  public trust, all employees (including high-level executives and other  

  a series of courses targeting competencies relevant to supervisors,  

  managers in the operation team) are expected to abide by the ethical  

  such  as  management  behavior,  skills,  knowledge  and  corporate  

  spirit of the Company in their daily tasks and businesses, thereby  

  culture integration. To assist supervisors with achieving cooperation  

  ensuring the sustainable growth and development of the Company.

in their work and management, learning resources such as foreman/ 

To ensure effective training direction and implementation, the Human 

  sectional chief, grassroots supervisor, middle-level supervisor and  

Resource  Division  develops  education  and  training  projects  in  the 

  senior executive training courses are conducted.

fourth quarter of each year according to annual company-wide policies, 

•  Quality Training: Training courses relevant to UMC quality policies and  

the  General  Manager's  directives  for  training  focus  and  direction, 

  quality requirements are conducted, such as knowledge management,  

and  company-wide  survey  of  training  needs.  The  projects  include 

  proposal  improvement,  project  management,  problem  analysis  

company-wide,  cross-divisional  and  divisional  training  programs. 

techniques, statistical process control and experimental design.

Program implementation is reviewed each quarter, and corrective and 

•  Language Training: Employee language proficiency is determined  

improvement measures are proposed for unachieved goals to ensure the 

through  language  testing.  Training  programs  targeting  specific  

effectiveness of specific employee training.

learning needs are then provided accordingly to strengthen employee  

UMC believes that creating a high-quality work and learning environment 

language skills and workplace competitiveness.

can increase employee performance output and retention, and that high-

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

quality employees who continue to develop are the key foundation to the 

that  integrates  all  course  information,  training  systems  and  data  

sustainable development of UMC.

  enquiries. The online platform enables employees to easily access  

  needed  information  for  planning  and  learning  without  schedule  

  constraints.

•  On the Job Training: Each fab has an Education Committee to provide  

training for employees in the various divisions. The training is based  

  on skills required by specific jobs and professional skills assessment  

to  ensure  that  employees  have  the  required  job  competencies.  

  Additional training based on individual differences is also provided to  

121

Operations Overview 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee Benefits

Employee Welfare System

UMC  believes that employees are the most important assets of the 

Company, and that a company can continue to develop and progress 

only with appropriate and sufficient talent. To this end, UMC is committed 

to creating a healthy workplace environment. In addition to providing 

competitive salaries and dividends, a comprehensive education and 

training  system,  diverse  benefits  and  a  safe  and  healthy  working 

environment,  UMC  has  also  developed  a  comprehensive  employee 

welfare  system  in  accordance  with  local  laws  and  regulations  and 

regional needs.

UMC provides a variety of welfare measures as follow:

•  Nutritionally  balanced  and  delicious  meals:  Each  fab  has  its  

independently operated cafeteria and a variety of meal options. By  

  combining the cafeteria, cafe and convenience store into an integrated  

  dining area, employees can enjoy healthy and balanced meals.

•  Fitness Sports Center: UMC operates its own recreation center in the  

  Hsinchu science park, and Tainan Fab 12A has the UMC Park Activity  

  Center, a multi-purpose sports center gym and the LM Dormitory  

  gym.  In  addition,  other  facilities  such  as  gyms  and  aerobics  

  classrooms are located in appropriate areas of UMC fabs to reflect the  

  concept of a healthy workplace.

•  Welfare Events: The Welfare Committee routinely organizes events  

(such as Family Day, art activities, movies, trips), and in coordination  

  with  company  celebrations,  organizes  inter-fab  competitions  to  

  cultivate  team  unity.  At  the  same  time,  other  inter-divisional  and  

inter-fab activities are held during holidays to enhance employee work- 

life balance.

•  Club Recreation: UMC has 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 2022, 

UMC had a total of 30 clubs and about 2,313 participants.

•  Accommodation and transportation assistance: UMC provides safe  

  and comfortable accommodations for both direct labor and indirect  

labor. Free scheduled transportation and shuttle services are also  

  provided for convenient and quick connections.

UMC  also  holds  employee  health  in  high  regard,  and  plans  and 

implements  benefits  in  accordance  with  or  above  and  beyond  the 

requirements  of  the  law.  For  example,  UMC  complies  with  the  Act 

of Gender Equality in Employment, the Regulations for Establishing 

Measures  of  Prevention,  Correction,  Complaint  and  Punishment  of 

Sexual Harassment at Workplace, and regulations for leave such as 

personal,  sick,  maternity,  paternity,  menstrual,  family  care,  marital, 

bereavement, on official, occupational sickness, annual, parental, for 

public welfare activities, nursing and nursing leave without pay.

In particular, UMC is the first private enterprise in the country to promote 

a 12-hour rotating shift for its direct labor. Further worth mentioning is the 

Company’s comprehensive insurance system where from the day of their 

employment, employees are provided with numerous insurance services. 

122

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

insurance, medical insurance and cancer insurance), the spouse and 

children  of  employees  can  enjoy  life  insurance,  accident  insurance, 

medical insurance and cancer insurance, and their parents can enjoy 

accident and accidental medical insurance, thereby freeing them of worry 

and enabling them to work their best for the Company and society.

Employee Health

UMC has a longstanding commitment to creating a workplace environment 

that is physically, mentally and spiritually healthy. UMC is convinced that 

only  employees  who  are  physical  and  mentally  healthy  can  be  highly 

efficient and produce excellent work performance. In addition to assisting 

employees  in  all  aspects  of  health  management  and  health  promotion, 

UMC  also  reaches  out  to  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, 

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 

soon as possible.

In 2022, 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  health 

needs questionnaires are provided annually. A variety of health promoting 

activities and education are then organized for employees accordingly to 

give them further knowledge and skills for self-managing their health and 

the health of their families. Furthermore, through occupational safety and 

health project management, UMC’s Health Center has installed an internal 

reporting system for potential occupational chronic injury and disease, with 

regular hearing inspections and vision care programs that are superior to 

occupational safety laws to achieve the goal of preventing occupational 

injuries. Moreover, as of 2020, UMC’s IT divisions have integrated their 

existing systems to construct a customized personal Health Care System 

for  employees.  The  system  keeps  optimized  regularly.  In  addition  to 

checking their own health check reports over the years, colleagues can 

also receive system notifications on the day of consultation with medical 

staff, and immediately read and confirm consultation related information, 

which improves the timeliness and care rate of the medical team’s care. 

In addition to regulatory annual checkups, all employees were subsidized 

for  advanced  cardiovascular  examinations  (including  blood  drawing 

and  electrocardiogram  items)  to  facilitate  early  detection  of  signs  of 

cardiovascular  disease  and  early  treatment.  UMC  also  offers  a  variety 

of  preventive  screening  and  health  promoting  activities  such  as  other 

United Microelectronics Corporation  |  Annual Report 2022 
 
 
 
 
Employee Benefits (Continue)

cancer screening, abdominal ultrasound examination, breast sonography, 

Labor Pension System

flu  vaccination,  abdominal  ultrasound  and  other  out-of-pocket  items  so 

In terms of labor pension system, UMC allocates the worker’s retirement 

that employees can choose appropriate health checks according to their 

reserve funds to the Labor Pension Reserve Supervisory Committees in 

needs.

compliance with regulations, and processes the employee labor pension 

The above-mentioned health management methods and health promotion 

payment  in  accordance  with  the  Labor  Standards  Law.  Since  July  1, 

activities are intended to ensure that employees sufficiently understand 

2005, for employees who opt for the retirement system under the Labor 

and actively participate in improving their own health condition, so that the 

Pension Act, 6% of their monthly salary is paid into their individual labor 

purpose of early diagnosis and treatment can be achieved. It is hoped that 

pension account to secure their rights and interests. For employees who 

every employee can support each other and grow together with UMC in a 

voluntarily choose to contribute to their retirement funds, at a rate that they 

healthy physical and mental state, and work together for UMC.

have agreed upon, their contributions will be deducted from their monthly 

salary and deposited into a personal retirement account managed by the 

Bureau of Labor Insurance.

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 

I

security management system, and coordinating the formulation and 

Board of Directors

Enterprise Information Security Committee

Corporate Security Division

compliance of related policies. The EISC is chaired by the President, 

Policy and  Audit

Training and Awareness

Information Security Technology

and the Vice President TS Wu of the Digital organizational function 

serves as the supervisor/Chief Information Security Officer (CISO). The 

heads of all departments (including legal, human resources, research 

Policy

People

Technology

nformation Security Policy
UMC’s information security policy, which is deployed in the Company 

and  development,  engineering,  fab  operations)  are  members  of  the 

and its subsidiaries, is based on the following principles: 1) To establish 

committee.  The  Corporate  Security  Division  was  also  formed  to  be 

Information  Security  Management  rules  in  accordance  to  customer 

responsible  for  information  security  and  physical  security  planning, 

requirements,  2)  to  reach  a  consensus  that  information  security  is 

related audit matters, and leading the operation of this committee.

everyone’s responsibility through full awareness, 3) to protect information 

The EISC holds semiannual meetings to review information security 

confidentiality, integrity, availability for the Company and customers, 

risks  and  measures  and  strategies  adopted  by  UMC,  ensuring  the 

and 4) to provide a safe production environment to ensure sustainable 

adequacy, suitability and effectiveness of the Company’s information 

operation of the Company’s business. The major information security 

security  management  system.  The  committee  reports  to  the  board 

objectives are aimed at antivirus, anti-intrusion and anti-leakage through 

of directors on the effectiveness of the information security strategy 

the  building  of  multiple  internal  controls  such  as  firewalls,  intrusion 

annually. Independent Board Director Jyuo-Min Shyu, who has relevant 

detection,  and  antivirus  systems  to  enhance  the  Company’s  ability 

experience in information security, oversees and regularly reviews the 

to defend against external attacks and to protect internal confidential 

Company’s information security and cyber security strategy. Mr. Shyu 

information.

was the Minister of the Ministry of Science and Technology and the 

UMC has established a complete Information Security Management 

President of Cloud Computing & IoT Association in Taiwan, and led 

System  (ISMS),  from  systems  to  procedures,  to  reduce  information 

multiple information security projects such as the National Information 

security threats to ensure compliance with customers’ requirements. 

& Communication Security Taskforce as Vice Chairperson and the IoT 

UMC  also  conducts  continuous  improvement  through  the  Plan-Do-

Information Security SIG (Special Interest Group) initiative.

Check-Act (PDCA) cycle.

In the “Plan” phase, the Company focuses on information security risk 

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 

123

Operations Overviewsecurity risk and production anomalies that may be caused by human 

(SOAR) mechanism to improve the efficiency of escalating and taking 

error.  Continuous  improvement  is  then  carried  out  through  annual 

actions of information security incidents. To optimize the security of 

recertification. In 2014, the Company decided to introduce ISO 15408 

the overall information system network and to add the multi-factor 

Common Criteria certification. The certification is specifically designed 

authentication protection for host privileged account login.

for secure production procedures not only in data receiving, processing 

•  Legal compliance and introduce international information security 

and  destroying,  but  also  higher  physical  access  control  request  for 

certification  standards:  UMC  complies  with  information  security-

securing entire production line purposes. The current validity of ISO 

related certifications and regulations such as ISO 27001, ISO 15408, 

27001 certificate is from March 2020 to March 2023. UMC completed 

ISO 22301, and Sarbanes-Oxley Act (SOX 404), serving as the basis 

ISO 15408 re-certification in 2022, and the current validity of ISO 15408 

for risk management and review. An enterprise risk management 

certificate is from November 2022 to February 2025. Please refer to the 

committee has also been established to promote the standardization 

Company website for related certification information https://www.umc.

to reduce operational risks.

com/en/Download/awards_and_certificates.

•  Risk control: UMC engages an international information security firm 

In  the  “Do”  phase,  the  Company  builds  the  multi-layer  information 

to provide a third-party, objective assessment, which serves a basis 

security protection mechanism, continuously introduces new information 

for further improvement. The Company is insured against information 

security risk control technology, uses smart/automated mechanisms to 

security breaches as one of the methods to minimize potential losses 

improve the efficiency of various information security incident detection 

in the event of an incident.

and response processing, and strengthens information security and 

•  Education and training: To provide company-wide information security 

cyber security protection procedures to protect of the Company’s assets.

education and training, and occasional phishing tests to increase 

In the “Check” phase, the Company regularly monitors the effectiveness 

awareness.

of information security management indicators. A third party reviews and 

•  Epidemic response: In response to the COVID-19 epidemic, the 

audits the above-mentioned management system annually. Well-known 

Company has strengthened the antivirus and information security 

information security vendors conduct penetration tests. All the aforesaid 

protection  measures  for  work-from-home  (WFH),  and  urged 

matters are made to ensure continuous improvement of information 

employees to avoid using public computers and internet for work 

security management and defense capabilities.

purposes.

In the “Act” phase, the Company focuses on review and continuous 

improvement.  When  employees  and  contractors  violate  information 

security related regulations and procedures, they will receive penalties 

Information Security Management Resource
Information  security  is  important  for  the  Company’s  operations.  To 

accordingly. Information security education and training is implemented 

manage information security, the Company has the following measures 

to enhance information security awareness.

and resources in place: 

•  Dedicated manpower: The Corporate Security Division is responsible 

Information Security Management Plan
In order to achieve comprehensive information security protection, the 

for information security planning, technology deployment and related 

audit matters to maintain and further strengthen information security.

Company is implementing the following items:

•  Certification: UMC pass audits for ISO 27001 information security 

•  Strengthen information security defense: To conduct regular 

certification and ISO 15408 site certification with no major findings.

vulnerability scans and penetration tests, as well as reinforcements 

•  Customer satisfaction: No major information security incidents; no 

and repairs to reduce information security risks; to establish a network 

complaints about customer data leakages.

security incident contingency plan to assess the impact and loss 

•  Education and training: All new employees completed information 

according to the severity of the incident, and to take necessary actions 

security training prior to onboarding; all employees have completed 

to escalate the situation and recover from the incident.

two online information security training and assessments; a total of 

•  Improve infor mation secur it y management proc edures: To 

four phishing tests were carried out during the year.

establish a corporate information security framework according to the 

•  Information security announcements: More than 10 announcements to 

National Institute of Standards and Technology standards and create 

promote important regulations and precautions for information security 

corresponding metrics; to require employees to abide by information 

protection.

security regulations (such as strict control of mobile storage devices), 

•  Supply chain: All existing and new contractors have completed 

follow the standard operating procedures, and implement the Plan-

required  educ ation  and  training  about  UM C’s  infor mation 

Do-Check-Act (PDCA) cycle for continuous improvement.

security regulations.

•  Enhance network, endpoint and application security: To improve the 

•  Information security insurance: UMC has purchased information 

detection of irregularities and incident prevention, including protocols 

security  insurance  since  2019,  with  an  insured  amount  of  US$10 

such as application whitelisting and endpoint detection and response 

million, as one of the measures to manage information security risks.

(EDR). To establish Security Orchestration, Automation and Response 

124

United Microelectronics Corporation  |  Annual Report 2022Loss from Major Information Security Incidents, Potential 

SEMICON TAIWAN task force to develop equipment information security 

Impact, and Corresponding Response Measures
UMC had no major information security incidents in 2022. UMC had 

standards, contributing to a more secure operating environment for 

enterprises.

a major WannaCry ransomware incident in 2016, causing 42 Servers/

In short, the current security risks disclosed by UMC in this annual report 

PCs/NBs used in the OA area to be infected. Due to early detection 

should be supplemented with a well-known saying in the information 

and proper handling, it did not spread to computers used for production 

security industry: “There is no such thing as 100% security.” Cyberattack 

lines. The Company immediately upgraded its antivirus software to a 

techniques are constantly evolving, and lags in defense systems expose 

version with behavior-based detection capabilities, and strictly enforced 

the Company to risks. Successful defenses do not necessarily mean 

information device management. It also required critical patch updates 

or guarantee that anomalies will not happen in the future. Enterprises 

for computers used in production lines to defend against such worm-type 

must keep pace with the times to face the ever-changing and growing 

viruses that may attack system vulnerabilities. Another countermeasure 

information security threat. Information security has a long way to go 

is to set the Access Control List (ACL) in production line networks to 

and requires continuous improvement. UMC will do its best to manage 

grant necessary access between equipment tools, which can block 

information  security  in  order  to  provide  customers  with  a  secure 

viruses from spreading and limit their impact. In 2018, UMC joined a 

manufacturing environment and to maximize value for our shareholders.

Major Contracts
Supply
UMC maintains long-term business relationship with major wafer material supplier. The main contract is as follow:

Contract 
Type

Contracted Party

Contract Period

Key Content

Purchase

Shin-Etsu Handotai Taiwan Co., Ltd.  

Indefinite

Wafer material supply

Restrictive 
Clause

None

Patent and Technology Licenses
UMC values and protects intellectual property rights. With over 40 years 

semiconductor  or  technology  patent  holders  to  ensure  that  UMC’s 

of commitment to developing and securing semiconductor patents, UMC 

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

has  achieved  a  predominant  position  in  the  semiconductor  industry. 

following are patent licensing contracts received and given by UMC:

UMC also enters into patent or technology license contracts with major 

Contract Type

Contracted Party

Contract Period

Key Content

Restrictive Clause

Patent cross-
license

International Business 
Machines Corporation

Jun. 25, 2009~Jun. 30, 2029

Technology 
license

International Business 
Machines Corporation

From Jun. 29, 2012

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

IBM licensed its 20nm CMOS 
and FinFET technology to 
UMC.

None

None

Patent license

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

From Feb. 08, 2018

License for specific patents.

None

Patent cross-
license

International Business 
Machines Corporation

Jun. 13, 2013~Dec. 30, 2035

Technology 
license

HeJian Technology (Suzhou) 
Co., Ltd.  

Jul. 11, 2013~Jul. 10, 2028

Patent cross-license for 
semiconductor process, 
semiconductor device and 
semiconductor design.

UMC licensed its 0.13um 
process technology to HeJian 
Technology (Suzhou) Co., Ltd.

None

UMC signed and implemented the 
contract in accordance with the scope 
approved by the Investment Commission, 
Ministry of Economic Affairs.

Technology 
license

Mie Fujitsu Semiconductor 
Limited

From Aug. 29, 2014

Patent cross-
license

Avago Technologies 
International Sales Pte. 
Limited

Sep. 29, 2018~Dec. 31, 2023

UMC licensed its 40nm 
process technology to Mie 
Fujitsu Semiconductor 
Limited.

Patent cross-license for 
semiconductor device related 
patents.

None

None

125

Operations OverviewMajor Contracts (Continue)

Contract Type

Contracted Party

Contract Period

Key Content

Restrictive Clause

Patent cross-
license

Technology 
license

Katana Silicon Technologies, 
LLC

United Semiconductor 
(Xiamen) Co., Ltd.

Apr. 01, 2017~Mar. 31, 2032

From Nov. 05, 2019

License for specific patents.

None

Technology 
license

United Semiconductor 
(Xiamen) Co., Ltd.

Nov. 23, 2018~Nov. 22, 2028

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

UMC licensed its 80/90nm 
process technology to United 
Semiconductor (Xiamen) 
Co., Ltd.

UMC signed and implemented the 
contract in accordance with the scope 
approved by the Investment Commission, 
Ministry of Economic Affairs.

UMC signed and implemented the 
contract in accordance with the scope 
approved by the Investment Commission, 
Ministry of Economic Affairs.

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.,
Mega Union Technology Inc. and others.

From Jan., 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$13.25 
billion.

Restrictive 
Clause

None

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. 01, 2021~
Dec. 31, 2022

Construction

L&K Engineering (Suzhou) Co., Ltd.

Construction

Suzhou Topco Construction Ltd.

Construction

L&K Engineering (Suzhou) Co., Ltd.

Sep. 20, 2022~
Dec. 31, 2022

Aug. 01, 2021~
Jun. 30, 2022

May. 01, 2021~ 
Mar. 31, 2022

Construction

Rsea Constructional Engineering (Chongqing) 
Co., Ltd.

Feb. 08, 2022~
Mar. 30, 2023

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$6.31 
million.

United Semiconductor (Xiamen) Co., Ltd. entered 
into construction contracts with the vendor listed in 
the second column for building fab facilities. The 
total contracted amount exceeded RMB¥15.92 
million (excluding tax)

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 vendor listed in the 
second column for HeJian new WH3 warehouse 
construction. The total contracted amount exceeded 
RMB¥32.37 million (excluding tax).

None

None

None

None

None

126

United Microelectronics Corporation  |  Annual Report 2022Review of Financial Position,  
Operating Results, Risk Management

128  Financial Position 
129  Financial Performance
130  Cash Flow 
130  Major Capital Expenditures from Recent Years and Impact on 

Company’s Finance and Business

130  Main Reasons and Improvement Plans for Recent Annual  

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

131  Risk Management and Evaluation 
142  Other Necessary Supplements

127

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

2022

252,371,038

170,982,066

4,275,200

105,423,788

533,052,092

108,565,165

89,035,988

197,601,153

125,047,490

12,377,833

202,247,024

335,450,939

2021

Differences

Differences(%)

In Thousand NT$

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

19,097,605 

41,040,363 

630,267 

7,857,086 

68,625,321 

3,111,436 

11,265,830 

14,377,266 

215,014 

(35,520,260)

86,871,235 

54,248,055 

8 

32 

17 

8 

15 

3 

14 

8 

0 

(74)

75 

19 

Analysis of change over 20% from 2021 to 2022:
1. Property, plant and equipment: 

Due to the increase in capital expenditures.

2. Additional paid-in capital: 

Due to the distribution of cash from additional paid-in capital according to the resolution of shareholders’ meeting held in 2022.

3. Retained earnings: 

Due to the increase in net income.

128

United Microelectronics Corporation  |  Annual Report 2022Financial Performance

Items

Years

2022

2021

Differences Differences (%)

In Thousand NT$

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

278,705,264 

(152,940,887)

125,764,377 

(26,811,799)

5,339,647 

104,292,225 

1,805,012 

106,097,237 

(18,078,986)

88,018,251 

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 

65,694,246 

(11,979,498)

53,714,748 

(1,221,625)

112,816 

52,605,939 

(8,312,106)

44,293,833 

(11,387,592)

32,906,241 

Analysis of change over 20% from 2021 to 2022:
1. Operating revenues:

Due to the price increase driven by strong demand and the depreciation of the NT dollar against the US dollar.

2. Gross profit:

Due to the price increase driven by strong demand and the depreciation of the NT dollar against the US dollar.

3. Non-operating income and expenses:

Due to the decrease in share of profit of associates and joint ventures.

4. Income tax expense:

Due to the increase in operating income.

31 

8 

75 

5 

2 

102 

(82) 

72 

170

60

129

Review of Financial Position, Operating Results, Risk ManagementCash Flow

Analysis of Cash Flow for the Year Ended December 31, 2022

Cash at Beginning of 
Year

Net Cash Flow from 
Operating Activities

Net Cash Flow from 
Investing and Financing 
Activities

Cash at End of 
Year

In Thousand NT$

Remedy for Liquidity Shortfall

Investment Plans

Financing Plans

132,622,131

145,860,529

(104,663,883)

173,818,777

-

-

Note:  Net cash flow from investing and financing activities includes the effect of exchange rate changes of NT$7,018,133 thousand.

Analysis of Cash Flow
1.  Operating activities:
  Mainly came from the operation profits excluding the depreciation 

and amortization expenses.

3. Financing activities:
  Mainly used in redemption of bonds, repayments of long-term loans 

and cash distribution from additional paid-in capital.

2. Investing activities:
  Mainly used in acquisition of property, plant and equipment.

4. Remedy for liquidity shortfall: 
  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 Remedy for Liquidity 
Shortfall

Investment Plans

Financing Plans

173,818,777

81,876,264

(136,290,500)

119,404,541

-

-

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

Execution Status of Major Capital Expenditures and Sources of Funding

Project

Actual and Expected Sources of 
Funding

Total Amount for 
2022 and 2021 

Property, Plant and 
Equipment

Cash flows generated from operations, bank 
loans and issuance of bonds

Software and Right-of-use 
Assets

Cash flows generated from operations, bank 
loans and issuance of bonds

In Thousand NT$

Actual Capital Expenditures

2022

2021

48,034,633

128,162,261

80,127,628

4,377,374

2,292,490

2,084,884

Based on aforementioned capital expenditures, in 2022 the ratio of production capacity from high-end processes of 40nm or below is above 32%, of 
which the production capacity for high-end 28nm or below has grown by 15% 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

UMC continues to provide multiple manufacturing locations in order 
to  enhance  customer  value.  As  of  December  31,  2022,  UMC  and 
its  subsidiaries  have  invested  about  US$1.65  billion  into  United 
Semiconductor  (Xiamen)  Co.,  Ltd.’s  12-inch  fab  for  28-90nm  wafer 
service to pursue further growth for the Company. The Company plans 
to obtain the capital contribution to United Semiconductor (Xiamen) 
Co.,  Ltd.  from  XIAMEN  JINYUAN  INDUSTRIAL  DEVELOPMENT 
CO., LTD. and FUJIAN ELECTRONICS & INFORMATION INDUSTRY 

ENTREPRENEURSHIP  INVESTMENT  LIMITED  PARTNERSHIP  as 
approved by UMC’s Board of Directors in April 2022. Through these 
investments, 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.
UMC's investment policies are based on long-term strategic investments 
that match the Company's operations and development.

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United Microelectronics Corporation  |  Annual Report 2022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, 

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

Enterprise Risk Management Structure and 
Operation

BOD/Chairman

ESG Steering

Committee

Enterprise Risk 
Management
Committee

Audit Committee

Internal Audit & Control

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  identifies  key  risks  and  formulates  countermeasures 
for  the  four  major  areas  of  strategy,  operation,  finance  and  hazards, 
including important risks related to environmental, social and corporate 
governance issues of the Company’s operations, 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  to  ensure  alignment  with  the  Company's  sustainability 
strategy; and, the ESG Steering Committee is overseen by the Nominating 
Committee of Board-level 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.

Future R&D Projects and the Estimated R&D Expenses
In 2023, R&D expenses are expected to be 4% to 8% of operating revenue, which will be subject to global market 
and the Company’s actual operation conditions.

Major R&D Projects In Progress

Latest 
Annual 
Project

14nm process 
technology

22nm process 
technology

22&28nm image 
signal processor 
technology

Current Progress

Time of Mass 
Production

Key Success Factors for Future R&D

2023

2023

2023

The  14nm  FinFET  platform  compact  process  (14FFC) 
successfully  entered  mass  production  with  product 
yield  reaching  90%  and  introduced  into  5G  and  netcom 
applications.

For  22nm  ultra-low  power/ultra-low  leakage  technology 
development, following the successful mass production of 
various 22nm products, including customer DTV chips, the 
design  specification  of  the  automotive  Grade-1  platform 
has  been  successfully  established,  and  the  reliability  and 
durability verification have been completed.

The 28HPC+ customized process technology being applied 
to  the  image  signal  processor  (ISP)  had  successfully 
mass  produced  the  higher-end  108Mp  products.  The 
industry's  highest  resolution  200Mp  and  smallest  pixel 
size  product  entered  mass  production  in  2022.  22nm  ISP 
process  technology  is  in  development  and  its  component 
models,  design  specifications,  and  related  IPs  have  been 
established. 

•  Customer circuit design verification and 
yield reached mass production levels and 
performance meets product design targets.

•  Customer circuit design verification and 
yield reached mass production levels and 
performance meets product design targets.

•  Customer circuit design verification and 
product yield qualification for mass 
production.

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

Latest 
Annual 
Project

Display driver 
IC and power 
management 
process 
technologies

Current Progress

Low temperature polycrystalline oxide panel (LTPO OLED) 
drive chip products using 28nm high voltage 27V process 
technology have entered mass production. The LTPO OLED 
driver  chip  product  of  22nm  high-voltage  25V  process 
technology has completed product verification. 0.11µm BCD 
technology platform combined with embedded non-volatile 
memory  PMIC  has  completed  the  automotive  component 
model  and  design  specifications,  and  also  completed  the 
development of automotive IP platform.

Time of Mass 
Production

2024

Non-volatile 
memory process 
technologies

The 40nm non-volatile memory eFlash and resistive random 
access  memory  RRAM  have  entered  mass  production. 
22nm RRAM and eMRAM are developed on schedule. High 
density 1Gb HDMRAM has entered trial production.

2023

RFSOI process 
technologies

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 and 22nm RFSOI technology platforms, 
with a view to deploy in the market above 40GHz in the future.

CMOS image 
sensor (CIS) and 
MEMS process 
technologies

55nm  BSI  (Back-illuminated  image  sensor)  CIS  process 
technology  have  entered  mass  production,  which  can  be 
applied to high dynamic range (HDR) products to meet the 
market  demand  of  high  sensing  resolution  and  fast  focus 
function (PDAF).

Compound 
Semiconductors

3D-IC W2W 
hybrid bonding

UMC  continues  development  of  Gallium  Arsenide  pHEMT 
key technologies for 5G mmWave base stations and Ka/Ku-
band LEO satellite receiver chips. UMC also actively invests 
in  the  wide-bandgap  component  development  of  Power 
GaN 650V and RF GaN technology platforms.

3D-IC  wafer-to-wafer  (W2W)  hybrid  bonding  technology 
has been combined with an open supply chain cooperation 
model  to  provide  customers  with  reliable  and  flexible 
solutions. UMC has completed the chip design and product 
verification for customer with 3D W2W stacking technology 
and plans to enter trial production in 2023.

2024

2023

2023

2023

Key Success Factors for Future R&D

• 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.

• 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. The actual time of mass production is subject to 

the market and customer demand.

UMC  has  been  constantly  strengthening  its  independent  R&D  and 
fabrication capabilities. Going forward, 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 companies, 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 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 
completed the development of its14nm FFC platform, with product yield 
reaching 90% and performance meeting design targets. Meanwhile, 
the 14FFC platform process also passed customer product HTOL (High 
Temperature Operating Life) reliability qualification and entered mass 
production. 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 

132

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. Following the mass production of customer digital TV 
(DTV) chips made with 22ULP/22ULL technology platforms in 2020, 
UMC continues to optimize the process and expand the scope of product 
applications in electronic products such as analog, mixed-signal, RF 
technology, Internet of Things, mobile devices, and automotive electronic 
products. Under the architecture of the 22nm process platform, the design 
specification of the automotive Grade-1 platform has been successfully 
established, and the reliability and durability  verification have been 
completed. The 22nm image signal processor (ISP) has established 
component models, design specifications, and related silicon IPs; it is 
expected to enter trial production in 2023. On the UMC’s 28nm high-
performance computing process 28HPC+ customized ISP, following the 
high-end 108Mp products successful mass production, the industry's 
highest-end 200Mp and smallest pixel size product also entered mass 
production in 2022. The 28HPC+ millimeter wave (mmWave) process 

United Microelectronics Corporation  |  Annual Report 2022Risk Management and Evaluation (Continue)

has been verified by performing a low noise amplifier (LNA) IC tape-
out on the first pass silicon success, leveraging UMC’s 28HPC+ process 
technology and the certified mmWave design flow with complete RF 
solution. UMC’s 28nm high-voltage process has a market share of 85% 
and ranks first in the global market share of DDI in the LCD markets. The 
low temperature polycrystalline oxide (LTPO) OLED panel driver chip 
products using 28nm high-voltage 27V process technology have entered 
mass production. In the 28nm ultra-low power consumption embedded 
high-voltage active matrix organic light-emitting diode (AMOLED) display 
driver chip technology development, the process technology completed 
component modeling and design specifications. While the 22nm high-
voltage 25V process technology of LTPO OLED driver chip has completed 
the product verification. Following the successful mass production of 
0.11µm BCD (Bipolar-CMOS-DMOS) technology, 0.11µm BCD technology 
platform combined with embedded non-volatile memory has completed 
the automotive component model and design specifications, and also 
completed the development of automotive IPs. The development progress 
of a next-generation customized PMIC for mobile phones is on track and is 
expected to enter trial production in 2023.
The 40nm non-volatile memory eFlash has 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 (RRAM) 
has entered mass production, while 22nm RRAM technology platform is 
on schedule and has passed reliability verification. In the 22nm eMRAM 
(Embedded Magnetoresistive Random Access Memory) process platforms 
development, the 22nm high-density 1Gb HDMRAM product, to be applied 
in aerospace/LEO satellite communications, entered trial production in 
2022. The 55nm RFSOI (Radio Frequency Silicon on Insulator) process 
has entered mass production, and meets the 5G sub-6 GHz market 
requirements. At the same time, the 40nm RFSOI technology platform is 
being continuously developed to capture subsequent 5G/mmWave growth 
trends. 22nm RFSOI has also entered the development stage, with a view 
to deploy in the market above 40GHz in the future. In the CMOS image 
sensor (CIS) development, the 55nm back-illuminated image sensor (BSI) 
CIS process technology have entered mass production.
Compound  semiconductor  gallium  arsenide  (GaAs)  components, 
combined  with  the  SAW  filter  integration  solutions  for  existing  HBT 
power amplifiers and existing RFCMOS Switch and LNA technologies, 
provide mobile phone radio frequency front-end module and WiFi6/7 
communication module integrated manufacturing solution. The Company 
will continue to develop gallium arsenide pHEMT technology suitable for 
the 5G mmWave base stations and Ka/Ku-band low-orbit satellite receiver 
chips. Moreover, as for the third type of wide-bandgap semiconductors, 
UMC actively invests in the development of gallium nitride power (Power 
GaN) and microwave (RF GaN) technology platforms, targeting the 
market  of  high-efficiency  power  components  and  5G/LEO  satellite 
communications components. The 650V GaN power components are 
expected to enter trial production in 2023. UMC’s 3D-IC wafer-to-wafer 
(W2W) hybrid bonding technology, combining with an open supply chain 
cooperation model, provides customers with reliable and flexible solutions. 
As for the application of radio frequency components, UMC has completed 
the chip design for a customer’s RF product, using 3D-IC W2W stacking 
technology to reduce chip area by 40%. The product has completed 
product verification, and is expected to enter trial production in 2023. 
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, 2022, if the interest rate 
increases/decreases by 10 basis points, the Company’s net profit for 
2022 will decrease/increase by NT$19,279 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, 2022, when the 
NT dollar strengthens/weakens by 10 percent against the US dollar, the 
Company’s net profit for 2022 will decrease/increase by NT$1,304,586 
thousand. On the other hand, when the Chinese Yuan strengthens/
weakens by 10 percent against the US dollar, the Company’s net profit 
for 2022 will decrease/increase by NT$572,245 thousand. When the 
Japanese Yuan strengthens/weakens by 10 percent against the US 
dollar,  the  Company’s  net  profit  for  2022  will  decrease/increase  by 
NT$537,952 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  2022:  Due  to  the  impact  of  the  COVID-19 
pandemic and the Russia-Ukraine war, global supply chain delays, rising 
oil prices, and currency policies around the world have led to an increase 
in the consumer price index (CPI) in Taiwan, with a yearly growth rate 
of  2.71%  in  2022,  higher  than  the  previous  year.  The  2022  Taiwan 
consumer price index (CPI) is 108.27%, and overall consumer prices are 
still stable. It will have no impact on the Company's revenue results.

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

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

higher customer 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  2022  issued  by  the  World 
Economic Forum, cybersecurity failure is among the top risks for years.
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

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$13 billion in research and development in 2022. 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$2.7 billion in capital expenditure during 2022. Looking into 2023, 
UMC will continue to appropriately invest in 22/28nm capacity to fulfill 
growing wafer demand, optimize product mix, and penetrate emerging 
applications. The Company believes that these efforts will facilitate 

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United Microelectronics Corporation  |  Annual Report 2022Risk Management and Evaluation (Continue)

The Impact of Corporate Image Change on 
Corporate Crisis Management and Response 
Measures

The  Company's  business  philosophy  is  based  on  the  Company's 
sustainable  operation  and  long-term  partnership  with  customers  and 
social groups. The Company regularly holds shareholders' meetings and 
legal person briefings to increase financial transparency. The Company 
also  actively  participates  in  community  and  public  welfare  activities, 
and  effectively  fulfills  its  responsibility  as  a  member  of  society.  For  a 
variety of different emergencies, there are special personnel responsible 
for  planning  and  responding  to  minimize  the  uncertainty  of  business 
operations.

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

With a global customer base and a local manufacturing trend caused by 
the Covid-19 pandemic and US-China Tech War, 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.
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 
the employees and customers of the acquisition target; reconciles the 
operation process and calibrates the quality management system to 
smoothly port new processes and new products; plans an expert team 
to promote benchmarking; and introduces best practices to maximize 
overall operating efficiency.

Risk  of  Excess  Capacity  from  Fluctuating 
Economic Conditions

The  Company  increases  its  production  capabilities  through  fab 
expansion  in  order  to  accommodate  more  customer  orders,  thus 
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: insufficient production capacity, accident in 
the factory, or natural disaster are some examples which could result in 
material shortage. 
Risk  avoidance  approach:  currently  UMC  adopts  a  supplier  self-
management model, in that these materials are stored in the Company 
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. 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.”

135

Review of Financial Position, Operating Results, Risk ManagementLitigation and Non-Litigation Incidents

On August 31, 2017, the Taichung District Prosecutors Office indicted us 
based on the Trade Secret Act of R.O.C., alleging that our employees 
misappropriated the trade secrets of Micron Technology, Inc., or Micron, 
and of Micron Memory Taiwan Co., Ltd.. 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 us 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 us 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, we 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 our patent rights. 
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 have no material financial and operational effect on 
UMC’s business for the years presented.

Risk Management and Evaluation (Continue)

Risks of Sales Concentration and 
Response Measures

UMC has established long-term and stable cooperative relationships with 
many world-class customers, combining these customers' advantages 
with UMC's competitive strengths to ensure the Company's long-term 
and stable growth. In 2022, UMC’s top ten customers accounted for 
approximately 52% 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.

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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  Sixth  Assessment  Report 
(AR6), 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. The 
assessment result and related countermeasures are submitted to the 
Corporate Sustainability Committee for approval. 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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 
fabs 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, recycled water and desalinated seawater 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$100 million in the next 20 years. Besides, Singapore government 
has imposed carbon tax since 2019, and announced the carbon price 
per ton will be raised gradually. (The price in Singapore is S$5 currently, 
and  it  will  be  gradually  raised  up  to  S$50~80  in  2030.)  In  Taiwan, 
“Climate  Change  Response  Act”  was  also  promulgated  in  February 
2023 including carbon-fee charging from enterprises, which will increase 
UMC’s investment cost and bring financial impact. China government 
also requested enterprises to reduce electricity consumption in 2022. 
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 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 
UMC 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 
addition to being equipped with professional fire engines and fire rescue 

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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, Fab 12A, and Fab 12i 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 before 2024 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.
•  Based on risk assessment results, the Company aims to develop 
various  disaster  prevention  measures  and  responses  to  reduce 
operational impact and shorten recovery time.

•  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. 
Measures taken by governments include tariff increases, embargoes, 
policy interventions, and government subsidies. 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. 
It 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; investment restrictions 
and  regulatory  changes  may  affect  the  Company's  strategic  plan, 
operational performance, and management complexity; political tensions 
across the Taiwan Strait may affect the willingness of UMC customers to 
place orders; if the situation escalates further, material supplies may be 
affected and operations may be disrupted.

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 automotive and 
industrial applications. 

(2) Strengthening the diversification of production locations and the 
flexibility of production allocation. In addition to the expansion in 
Taiwan, continuing to expand the regional production capacity in 
Japan and Singapore for serving global customers with multiple 
production  areas;  increasing  the  flexibility  of  cross-regional  and 
cross-factory  support,  and  adjusting  production  allocation  and 
capacity expansion plans in a timely manner.

(3) 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;  paying  close  attention  to  the  dynamics  of  relations 
across the Taiwan Strait, adjusting the possible scenarios for changes 
on a rolling basis, and planning corresponding measures to reduce 
operational impacts.

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The Impact of Infectious Diseases 
on the Company’s Operations and 
Countermeasures

we also pay attention to external market salary information and provide 
competitive salary and welfare conditions to achieve the Company’s 
sustainable operation goals.

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.

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 
adversely affected the global economy and disrupted supply chain. It 
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 Sustainability 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.

By the end of 2022, most countries have gradually relaxed epidemic 
prevention  and  control  measures,  and  the  impact  of  COVID-19  is 
expected to slow down in the future.

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, 

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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.

However, as demand for semiconductors is expected to slow down in 
2023 due to changing in global economic conditions, the potential impact 
above may be eased. 

Geopolitical Conflicts and Severe 
Inflation Create Risks of Effective Cost 
Reduction to Remain Competitiveness, 
and the Company’s Countermeasures

Over  the  recent  years,  the  COVID-19  pandemic  has  disrupted  the 
stability of the global supply chain and led to an increase in supply 
costs. To respond to the impact of COVID-19 and revive the economy, 
countries have promoted monetary easing policies, which have caused 
inflation  and  interest  rates  to  soar.  The  Russian-Ukrainian  war  has 
resulted in tight global energy and food supplies, leading to rising prices 
that are further pushing up inflation to record highs. In the meantime, 
global economic forecast has been revised downward, and the strong 
demand  for  semiconductors  is  also  slowing  down.  However,  supply 
chain costs remain high without a downtrend, which would affect the 
cost and operation of UMC. For example, soaring logistics costs and 
raw material costs would increase the overall operating costs of UMC; 
rising labor costs could increase maintenance contract costs; long-
term supply agreements with suppliers were signed to ensure stable 
supply in the first place, but these agreements could lead to penalties or 
compensations when there is a reversal in demand.

UMC's countermeasures include:
(1) Actively introduce to alternative materials and machines to increase 

scheduling flexibility and bargaining power.

(2) Research, analysis and promotion of material usage reduction.
(3) Promote a systematic cross-factory parts management system to 

exert the effectiveness of integrated management.
(4) Increase the in-house repair rate of machine parts.
(5) Use digital transformation to strengthen the procurement risk 
assessment  process  and  long-term  contract  review  mechanism, 
which would reduce the impacts on long-term procurement during 
economic downturns.

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Review of Financial Position, Operating Results, Risk Management• P r o t e c t i n g   t h e   E c o l o g i c a l   E n v i r o n m e n t   -   I n i t i a t i n g   U M C  
Ec o Echo Award to Help C ommunities, N PO and the Youth
UMC  was  well  aware  of  the  huge  impact  it  can  have  on  society 
and  the  environment  before  the  climate  change  issue  was  widely 
recognized. After completing the first EPA (Environmental Protection 
Administration)-approved carbon emissions trading in 2014 in Taiwan, 
UMC donated the trading yield to launch the "Eco Echo Ecological 
Conservation Hope Project" in order to promote environmental and 
biodiversity  conservation,  restore  species  and  ecosystems,  and 
enhance the public awareness of environmental protection.
In 2016, the UMC Eco Echo Award was established to solicit high-quality 
ecological  conservation  projects,  including  “Large-scale  Ecological 
Conservation projects” and “Youth Environmental Action Award” with the 
aim to encourage young students to turn their enthusiasm and creativity 
for environmental protection into practical actions and further bring 
changes to the environment. The 7th Eco Echo Award has expanded 
its sponsorship and added a new "Green Innovation Award" in addition 
to the existing ecological conservation awards. This new award covers 
two major issues, climate change and circular economy, and the total 
prize money has been increased from NT$3 million to 4 million, making 
it the highest award in the field of ecological conservation initiated by 
businesses in Taiwan. In the seven years since the inception of the UMC 
Eco Echo Award, a total of 53 ecological conservation projects and 
youth environmental actions have been implemented across Taiwan. In 
addition to our own effort, UMC has also linked resources from various 
parties and combined the power of supply chain partners to realize more 
outstanding ecological conservation projects. In 2022, 8 of UMC’s supply 
chain partners joined in this effort. UMC expects the UMC Eco Echo 
Award to achieve the co-prosperity of enterprises and the environment, 
and to be the powerful guardian of Taiwan's ecological environment.

Risk Management and Evaluation (Continue)

Assess the Risks or Opportunities to the 
Community and Implement Corresponding 
Measures

To effectively quantify the benefits brought about by community services, 
UMC  referred  to  the  community  investment  assessment  system 
established by “Business for Social Impact”. Accurate records were kept 
of the investments made in terms of time, cost, material donations, and 
management expenses to assess the favorable outcomes resulting from 
these investments. Outputs of community services include reductions 
in  costs,  generation  of  benefits,  and  intangible  influences  such  as 
positive corporate image, becoming a benchmark of corporate social 
responsibility, protect the ecological environment, establishing positive 
value systems amongst school children, and helping to compensate for 
the inadequacy of educational resources for school children living in 
remote areas.
• S et up sup p l em ent ar y c las s e s f o r dis advant ag e d c hi l dr e n 
UMC has sponsored a total of 110 foster children to help alleviate the 
impact of economic factors on these underprivileged families for 20 
years, as well as to help children from underprivileged or disadvantaged 
families with the assistance of professional social workers. In addition, 
UMC colleagues also serve as letter writing volunteers to provide care 
and encouragement to the foster children. This enables UMC's "tech-
savvy employees" to manifest their kindness and give back to the 
community. With the Company's "Funding from Company, Endeavors 
from Staff" approach, love and hope can be linked up with the simplest 
and the realest companionship. UMC has been working with different 
social welfare organizations in Hsinchu and Tainan to set up after-
class tutorial classes. Additionally, UMC used the advantage of service 
learning in local universities to recruit students from National Tsing Hua 
University, National Yang Ming Chiao Tung University, and National 
University of Tainan to serve the children from disadvantaged families 
as tutors and tutorial class volunteers. In 2022, the volunteer service 
hours  for  the  tutoring  class  were  9,349.5  hours,  benefiting  3,111 
person-times students. 

Other Significant Risks

None.

Note: The analysis and valuation of Risk Items shown above include the 
data during 2022 and as of the Annual Report Printing Date.

Other Necessary Supplements

None.

142

United Microelectronics Corporation  |  Annual Report 2022Corporate Sustainable Development

144  Description of Sustainable Management
148  About Social Charity 
151  Environmental Protection, Safety and Health  

Management Instructions

143

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 stays 
up to date on the development of domestic and international sustainable 
development standards 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.

As of 2022, UMC has been listed as one of the Dow Jones Sustainability 
World Index for 15 consecutive years. DJSI is one of the most credible 
international  corporate  sustainability  evaluation  tools,  so  this  is  an 
indication that UMC’s sustainability performance has been recognized 
by the international investor sector as a global leading enterprise. 
The sustainable awards granted to UMC in 2022 are listed below:
•  Selected as a member of Dow Jones Sustainability Indices (DJSI) 
World Index for the fifteenth straight year and also named a constituent 
of Emerging Markets Index; 

•  Rated at “A” in MSCI ESG Ratings and selected as component of MSCI 
ACWI ESG Leaders Index and MSCI Emerging Markets ESG Leaders Index;
•  Selected as component of FTSE4Good All-World Index and 
FTSE4Good  Emerging  Index  for  eighth  consecutive  year,  and 
FTSE4Good TIP Taiwan ESG Index since the launch of the index in 2017;
•  Rated “Prime” by ISS ESG Corporate Rating for sixth consecutive year;
•  Received a rating of “low risk” from the Sustainalytics ESG Risk Rating;
•  Recognized in CDP’s “A List” for environmental transparency and 

action on both climate change and water security;

•  Awarded “Corporate Sustainability Report Award” for fifteenth 
consecutive year and the highest Platinum award for the fifth time; 
•  Awarded “Top 10 Taiwanese Companies Sustainability Model Award” 
for the fourth time and received third place in manufacturing enterprise 
category this year; 

•  Awarded “Excellence in Corporate Social Responsibility” for the ninth 
time and received sixth place in large enterprise category this year;
These honors and recognitions indicate that, after long-term dedication 
to sustainability, UMC’s actions, transparency  and  completeness  of 
information disclosure have all reached the international level, such that 
it has become a global benchmark enterprise.

144

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 announced its pledge to reach 
net zero emissions by 2050. In the meantime, UMC become the second 
semiconductor foundry to join RE100, the global corporate renewable 
energy initiative, and committed to use 100% renewable energy by 2050 
by setting progressive goals of 25% by 2025 and 50% 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 2022, 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 

United Microelectronics Corporation  |  Annual Report 2022Description of Sustainable Management (Continue)

resource reuse, recycling and reducing to achieve green products with 
lower environmental impact. In 2022, UMC has launched the Supply 
Chain Greenhouse Gas (GHG) Inventory Initiative. By providing tools and 
resources for measuring and managing emissions, UMC aims to assist 
500 suppliers in completing their GHG inventories, striving towards its 
goal of 20% reduction in supply chain emissions by 2030. 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.

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  and  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 
Directors  in  2022  include  (1)  ESG  activities  and  achievements;  (2) 
stakeholder  communication;  and  (3)  future  focus.  The  achievement 
of employee’s remuneration linked to ESG KPI was also approved by 
Nomination  Committee  and  the  Board  of  Directors  in  this  meeting. 
UMC has achieved the ESG targets and the allocation of employee 
profit sharing percentage would be increased accordingly. Other annual 
resolutions of the Board of Directors related to sustainability include 
issuing Restricted Stock Awards (RSA) which set MSCI ESG ratings 
achieved A or above as one of the performance indicators, “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  responsible  for  stipulating  the  direction  and  goals  of  corporate 
sustainability.  The  Committee  reviews  the  performance  and  target 
achievements  of  eight  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 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:

Board of Directors

ESG Steering Committee

Corporate Sustainability Committee

Enterprise Risk Management Committee

Materiality Analysis of Sustainable Issues
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 Universal Standard and the rules of Material 
Topics published by Global Reporting Initiative (GRI), UMC assess the 
significance impacts the sustainable issue has on the economy, the 
environment, and people at UMC fabs in Taiwan, Singapore, Japan and 
China. The management approach and results of material topics were 
disclosed through the Sustainability Reports and company websites.

GRI  Standards,  ISO  26000  Guidance  on  Social  Responsibility,  UN 
Global Compact, industry-related special issues, and concerned items 
in domestic/international sustainability evaluation, etc., are used as the 
basis for collection of sustainability issues. UMC analyze 20 sustainable 
issues and identify its actual and potential impacts, and assess the 
significance  of  the  impacts  through  materiality  analysis  workshop. 
Through the process of discuss and review, the Company identify 12 
material topics and formulates corresponding risk management strategy 
and measures:

145

Corporate Sustainable DevelopmentDescription of Sustainable Management (Continue)

Dimension

Material Topics

Positive Impact

Negative Impact

Risk Management Strategy and Measures

Governance & 
Economic 

Procurement and 
Supplier Management

Building Sustainable 
Supply Chain

Insufficient Supplier 
Management

Innovation Management 
and Intellectual Property 
Rights Protection

Technology and 
Product Innovation

Intellectual Property 
Infringement

Customer Service Quality Strength Partnership 

with Customers

Damage to 
Customers Rights

Product Liability and 
Lifecycle Assessment

Sustainable and Eco-
Friendly Products

Failure to Product 
Responsibility 
Management

Environmental 

Climate Strategy and 
Action

Climate-related 
Opportunities

Climate Action 
Failure

1. Promote the Low-Carbon Supply Chain Project, including GHG 
emission inventory of the supply chain to enhance the supply chain’s 
resilience.

2. Implement third-party risk assessment to reduce supply chain risks.
3. Formulate “Supplier Code of Conduct” based on Responsible 
Business Alliance (RBA) Code of Conduct to require all supplier to 
comply with ethical and social responsibility standards.

1. Implement important R&D projects based on the Company’s 
development policy through regular KPI reviews, with accountability 
of vice presidents or above. Relevant departments conduct patent 
map  analysis  and  brainstorming  meetings  to  identify  intellectual 
property  layout  opportunities  and  analyze  potential  infringement 
risks.

2. Develop sustainable technology and product R&D plans and 

review KPIs regularly.

3. Set the direction for intellectual property development with dual-
track protection for patents and trade secrets, and promote steady 
growth  in  the  number  of  patented  rights  and  registered  key  trade 
secrets.

4. Enhance employee awareness of intellectual property protection 

by regularly conducting related courses.

1. Continuous quality control based on the quality management 

system for all products.

2. Dedicated sales and customer service window to maintain contact 

with customers and provide service at any time.

3. An online real-time customer response system (Voice of Customer, 
VOC)  to  collect  customer  feedback,  with  dedicated  personnel  for 
order  processing,  and  to  enhance  two-way  communication  with 
customers.

1. Establish Hazardous Substance Process Management Procedure.
2. The process design strives to streamline the process, save 
materials, and achieve high efficiency and low power consumption 
as much as possible.

3. Research and develop green chemicals and actively implement 
replacement plans for hazardous materials, reducing the impact of 
chemicals  on  the  environment  by  replacing  them  at  the  source  of 
control.

4. Regular assessments of product carbon footprint, product 
water footprint, and product life cycle are carried out to identify the 
environmental impact of products.

5. Require suppliers to provide alternative products that meet the 
process requirements and comply with environmental regulations, 
and complete product certification in the process.

6. In addition to complying with all applicable laws and standards, use 
stricter self-requirements and give priority to hazardous substances 
that can be replaced.

1. Promoting 3 resolution to achieve Net Zero: reducing direct 
emissions, expanded use of renewable energy, and investment in 
net-zero technologies.

2. Join climate-related initiatives or organizations such as RE100, 
Association  of  Taiwan  Net  Zero  Emissions  and  Taiwan  Climate 
Partnership to grasp the trend of international climate issues.

3. Regularly identify the risks and opportunities of climate change, and 

develops adaptation and mitigation countermeasures.

4. Set carbon reduction target which are officially approved by Science 
Based  Targets  initiative  (SBTi).  Check  and  verify  KPIs  of  GHG 
reduction  and  Renewable  energy  usage  on  a  quarterly  basis. 
Steadily plan and achieve phased goals for reducing GHG emissions 
to carry out the net-zero pathway.

5. Carry out ISO 14064-1 GHG inventory and ISO 14067 product 
carbon  footprint  inventory  to  grasp  GHG  emissions  hotspots  and 
reduction potential.

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United Microelectronics Corporation  |  Annual Report 2022Description of Sustainable Management (Continue)

Dimension

Material Topics

Positive Impact

Negative Impact

Risk Management Strategy and Measures

Energy Management

Renewable Energy 
Deployment

Energy Resource 
Depletion

Water and Wastewater 
Management

Water Resource 
Management

Water Resource 
Depletion

Waste and Resource 
Utilization Efficiency

Circular Economy

Improper Waste 
Management

1. Replace old equipment to improve energy efficiency.
2. Promote various energy-saving measures.
3. Introduce IS0 50001 Energy Management System.
4. Install solar photovoltaic system and replace older models with 

high efficiency ones.

5. Promote the purchase of renewable energy and expand the use of 

renewable energy.

1. Develop and utilize diverse water sources, such as reclaimed water 

and seawater.

2. Multi-pronged approach to increase the amount of water recycling 

and investment of recycling technology.

3. Continue to strengthen and implement water-saving measures.
4. Invest in R&D of wastewater treatment technology, and effluent quality 

monitoring and optimization.

5. Participate in public affairs, cooperate with the government and other 
organizations in communication and exchange counseling of water 
resource management.

1. Collaborate with global partners to carry out resource reutilization, 

achieving the goal of waste recycling and reuse.

2. Monitor developments in environmental trends around the world, 
assess related opportunities and risks, implement waste management, 
utilize energy and resources effectively, and promote a circular economy.

3. Establish a low-carbon circular business model.
4. Promote manufacturing process improvement and implement source 
management measures to reduce the use of raw materials and waste 
generation.

Social 

Employee Diversity and 
Inclusiveness

Equal opportunity and 
diversity in workplace

Talent Attraction and 
Retention

Enhancing Business 
Competitiveness and 
Providing Decent Jobs

-

1. Announce the “Diversity and Inclusion Statement” and regularly review 

the performance.

2. Set targets for the proportion of female managers and hold sharing 
sessions on female empowerment to enhance gender equality.

3. Measures to build a happy workplace.

Lose Talents

1. Regularly review the progress and results of the talent development plan.
2. Establish an employee care mechanism to give early warning to 

Employee Safety and 
Health

Healthy and Safety 
Workplace

Occupational 
Disaster

Human Rights

-

Human Rights 
Violations

employees who intend to leave.

3. Conduct market competitiveness analysis at least once a year.
4. Join the remuneration surveys of well-known worldwide enterprises, 
annual review and analyze the Company’s compensation policy 
based on compensation survey results and adjust the policy if 
necessary.

5. Provide differentiated salary and introduce multiple long-term 

incentive reward tools.

1. Pass the ISO 45001 Occupational health and safety management 

system certification every year.

2. Provide annual health check and special hazards operational health 

screening, etc.

3. Provide employee assistance program (EAP) and on-site Physician 

Consultation Service.

4. Hold series of Health Promotion Activities, provide knowledge of 
hygiene and sanitation to colleagues and employee-paid influenza 
vaccination.

1. Formulate “UMC Anti-Discrimination and Anti-Harassment Policy”.
2. Establish multiple grievance channels for worker to issue illegal 
violation or workplace violence and regularly implement related 
training.

3. Regularly conduct human rights risk assessment, and regularly 

conduct RBA self-assessment (SAQ).

4. Participate in “Validated Audit Process (VAP)” conducted by third-

party agencies to check RBA compliance.

UMC’s Sustainability Report issued in 2022 was composed by referring to the 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 Sustainability Report published by UMC was awarded the Corporate Sustainability Report Award for the 15th consecutive year.

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 2022:

•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 "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, 
both  coaches  accompany  many  disadvantaged  students  to  rebuild 
their  confidence  and  discover  new  directions  in  life.  In  2022,  UMC 
keeps the Chiayi National Tung-Shih Senior High School baseball team 
sponsorship program 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.
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.

148

  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 2022:

•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.

•Integrated Online System of UMC Recreation Center
In 2022, UMC Recreation center updated its sales system to integrate 
various services such as membership application, venue reservation, 
course registration/reservation, etc., which can be operated through the 
linked web page, replace manual work with systematic systematization, 
increase the convenience of citizens and Science Park employees, and 
increase the flexibility of course selection, so as to improve the speed 
and quality of services.

•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.
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 

United Microelectronics Corporation  |  Annual Report 2022About Social Charity (Continue)

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 2022:

Clubs

Services

Candlelight Club Hualien Mennonite Hospital Foundation, Boyo Social 

Welfare Foundation, St. Joseph Social Welfare Foundation, 
Eden Social Welfare Foundation, St. Raphael Opportunity 
center, etc.

Ukelele Club

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

Free performances (Huier Coffee House, Qianxinyuan 
Nursing Home, etc.)

UMC Drum Club Charity performances (The Catholic Church Hsinchu 

Music Fellow 
Club

Energy 
Conservation 
Service Team

Diocese Affiliated Marginal Youth Service Center)

Free performances (Charity event of Southern Taiwan 
Science Park Bureau)

Free repairs (Good Shepherd Social Welfare Foundation, 
Dongshi High School, Kindergarten Nursery, Tainan home 
of philanthropy)

Tennis Club

Movie appreciation event for tennis players

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. In 2022, a total of more than 43 million was invested.

Summary of key implementation outcomes in 2022:

Key Items

Outcome

Industry-
University 

Campus 
Cultivation

Semiconductor 
Processing 
Practicum 
Courses and Nano 
Generation Course

Summer Internship

Equipment Intern

Enterprise 
Visitations

Campus 
Ambassador for 
Disabled Students 

Offered  semiconductor  processing  practicum 
courses and Nano Generation course with four 
key  universities  in  2022.  About  622  students 
enrolled. 

Provide  a  specific  number  of 
internship 
opportunities each summer vacation. In 2022, 
a total of 19 interns were recruited. 

Provide  student  internship  opportunities  at 
UMC.  Cooperate  with  11  key  universities.  In 
2022, a total of 74 interns were accepted. 

Provide  enterprise  visitation  opportunity  for 
schools.  In  order  to  cooperate  with  the  anti-
epidemic  policy  in  2022,  only  key  universities 
and  specific  program  were  provided.  About 
309 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 220 students with physical disabilities 
were  provided  with  work  study  opportunities, 
and in 2022, 45 students were still employed.

Campus 
Relationship 
Development 
(Including Technical 
Career Iectures)

Helped  arrange  a  series  of  brand  image 
cultivation activities, including book discussion, 
career  sharing,  internship  cooperation,  and 
exhibits  for  semiconductor  display.  In  2022, 
15 book discussion sessions were held, with a 
total of more than 791 participants.

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 
11  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 
talent  on  campus  enhances 
prospective 
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, 
5,483  students  have  been  recruited  and  485 
prospects are still in school.

149

Corporate Sustainable Development•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 over NT$7 million to hospitals and fire stations 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.

About Social Charity (Continue)

•Supporting Art and Cultural Activities
UMC supporting Art and Cultural Activities, for example empowerment 
Artistic and donate building art and culture center. Since 2011, UMC 
Science and Culture Foundation has been supporting the What's Young 
Association  to  organize  the  "Fancy  Years  -  National  Youth  Drama 
Festival" , which leads sustainable development to teenagers through 
drama education and artistic creation. This program guides high school 
students to learn what society is with dramas and helps them develop 
creativity, teamwork skills and empathy as well as encourages them to 
learn through different ways of thinking. Since 2021, collaborates with 
TECO Technology Foundation to sponsor Taitung County Changbin 
Junior  High  School  "Changbin  Amis  Traditional  Music  and  Dance 
Team" and Hualien County Gang-kou Primary School's "Magu-Daai 
Amis Ancient Ballad Team" by supporting these schools in learning 
and passing on traditional tribal songs and dances, and assisting tribal 
schools in inheriting indigenous traditional culture, through which the 
indigenous groups can trace back their roots and enhance their self-
identity. UMC Science and Culture Foundation sponsored the "Drama 
Education Program for At-risk Teens" launched by Studio Q Performance 
Art Theatre and PUMUSIC, through which professional education in 
drama creation, dancing and performing arts are brought into corrective 
schools  for  teenagers  to  obtain  more  diverse  life  experiences  and 
broader perspectives.
In order to push of “Go” culture, UMC sponsored the Taiwan Chess 
Academy in 2020 to hold the UMC Cup Professional Go Tournament. 
The holding of this tournament is a rare blessing for professional chess 
players, Go enthusiasts and fans. The playing environment of the Go 
world and the promotion of Go culture are of great benefit, allowing 
chess players to have more space and opportunities to play, promoting 
the Taiwanese chess world to improve, enhancing the thickness and 
strength of Taiwanese chess players, and providing more opportunities 
for entering the world chess world.
Based on the belief of "take from society and give back to society," UMC 
establishes the art and culture field. In early 2019, NTHU (National 
Tsing Hua University) announced a plan to convert the Main Auditorium 
into a world-class concert hall in honor of former president Shen Chun-
Shan,  who  passed  away  in  2018.  For  this  purpose,  UMC  donated 
NT$70 million that UMC owes a debt of gratitude to NTHU, which for 
many years has been a primary source of outstanding personnel for 
Taiwan's semiconductor industry. Upon completion, Chun-Shan UMC 
Concert Hall will be a professional concert hall with a capacity of 1,200 
spectators, which can be used for large-scale symphony orchestras and 
future performances by world-class orchestras and performers.

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United Microelectronics Corporation  |  Annual Report 2022Environmental Protection, Safety and Health Management

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 2022:

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”

Reducing the negative environmental impact of 
products and greenhouse gas (GHG) emissions

Note: *With 2015 as the base year.

1. Zero serious occupational safety incidents

Zero occupational safety incidents throughout the year

2. Fewer than 6 minor (or above) accidents

A total of 4 incidents throughout the year

1. Water consumption per unit product: 12% reduction*

-22.81%

2. Electricity consumption per unit product: 12% reduction* -23.39%

3. Waste generated per unit product: 22% reduction*

-30.6%

4. Build a carbon management platform

Completed the development of carbon management 
platform

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Environmental Protection

GHG 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 (F-GHG). It formulated the “UMC Climate 
Change Policy” in 2010 as the highest guiding principle of the Company 
in response to climate change. 
The  major  reduction  plans  with  respect  to  F-GHG  to  be  promoted 
include:

•  Measuring the utilization rates of process tools using F-GHG and the 
destruction  and  removal  ef ficiency  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 F-GHG in order to understand the GHG 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 F-GHG emissions control technologies, the selection, 
assessment, and investment have been applied for installation of 
high-performance F-GHG abatement systems in order to reduce the 
emission of F-GHG year by year.

In 2007 and 2011, UMC led the industry in completing the 2-Phase 
F-GHG  replacement  plan  (replacing  C2F6  with  C3F8  and  replacing 
C3F8  with  C4F8)  for  the  entire  company,  thus  greatly  reducing  GHG 
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 water and power saving, and waste reduction 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 announced its pledge to reach net zero 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  25%  by  2025  and  50%  by  2030.  In  2022,  the 
Science Based Targets initiative (SBTi) has approved UMC’s emissions 
reduction targets, making the Company the first semiconductor foundry 
globally to obtain SBTi validation of climate goals. With 2020 as the base 
year, UMC targets 25% reduction in direct GHG emissions (Scope 1) 
and indirect emissions from electricity consumption (Scope 2) by 2030. 
The Company also aims to lower emissions from its value chain (Scope 3) 

by 12.3% in the same period.
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. The assessment 
result and related countermeasures are submitted to the Corporate 
Sustainability Committee for approval. Since 2021, UMC met the TCFD 
performance assessment at management level of “Pioneer” for second 
consecutive year, which was verified by 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  potential  risks  and  opportunities  of  climate  change,  and  related 
management and responding measures, please refer to the Company’s 
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 GHC 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 GHC reduction.
Water Resources Saving and Management

For more effective utilization of limited water resources, UMC formulated 
its “Water Management Policy and Commitment” in 2015. From the 
perspectives of introduction of water resources risk management system, 
development and application of diversified water resources, supply chain 
cooperation, and strengthening of water resources education, UMC will 
continue to promote various water saving measures, actively enhance 
water efficiency, and introduce new water saving technology in order to 
promote the emphasis and saving of water resources. According to the 
fab construction schedule, the fab water recycling rate and process water 
recycling rate of all fabs are superior to the standard set by Science 
Park Bureau. The water saving measures for general water consumption 
include  the  adoption  of  water-efficient  taps,  rainwater  interception 
for  landscape  watering,  and  water  conservation  of  air  conditioners 
and kitchens. In addition to internal water 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 Water Usage in Recent Two Years

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  equipments  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 management targets for important 
indicators  such  as  GHG  emissions,  water  consumption  and  waste 
generation. At the same time, UMC also disclosed the data of the last 
4 years in the Sustainability Report and through third-party verification 
to confirm the latest information and verify the reduction outcome every 
year.
UMC GHG Emissions in Recent Two Years

Year

2021

Scope 1

712,639

2022

591,781

Scope 2

1,298,439

1,373,914

Scope 1&2

8.25

7.91

GHG Emission 
(tCO2e)

GHG Emission 
Intensity
(tCO2e/wafer-m2)

Note 1: The statistics covers UMC’s fabs in Taiwan and Singapore, among which 

Fab 12A P6 was included in the calculation starting from 2022.

Note 2: The data on GHG emission is based on ISO 14064-1:2018 standards and 

verified by DNV GL Business Assurance Co. Ltd. Taiwan.

Year

2021

2022

Total Water Usage (ton)

16,213,000

17,409,000

Water Intensity (t/wafer-m2)

66.54

70.07

Note: The statistics covers UMC’s fabs in Taiwan and Singapore, among which Fab 

12A P6 was included in the calculation starting from 2022.

UMC Outsourced Waste in Recent Two Years

Year

Hazardous Waste (ton) 

General Waste (ton)

2021

25,091

18,963

Waste Intensity (t/wafer-m2)

0.181

2022

25,146

20,686

0.184

Note: The statistics covers UMC’s fabs in Taiwan and Singapore, among which Fab 

12A P6 was included in the calculation starting from 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 2022, UMC 
was recognized in CDP’s highest “A List” for transparency and action on 
both climate change and water security, and the Company is the only 
semiconductor firm globally to achieve a double “A” score. It shows that 
UMC has been recognized by international investment institutions for its 
environmental 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 

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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 
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 

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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 audit of suppliers to ensure that there will not be any 
safety or health or environmental protection accident that would cause 
abnormal supply.
As for the contractor management, the active and effective management 
approach should be adopted to prevent contractors from accidents. In 
addition to carrying out qualified contractor evaluation and formulating 
“Notices of ESH Contractor” to be signed by the person in charge of the 
contractor, all workers entering the fab should receive UMC’s “Contractor 
ESH Educational Training.” In addition, the “Contractor Work Place 
Hazard Notification and Agreement Meeting” should be completed for 
all contractors entering the fab. A complete online application system 
should be established for effective control of construction application and 
the management before, during, and after the construction. In addition to 
requesting the contractor to assign onsite supervisory personnel, a tool 
box 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 2022, UMC fabs in Taiwan and Singapore 
have offered 2,287 classes, attracting a total of 47,451 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.

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Environmental Protection, Safety and Health Management (Continue)

•  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 BBS within the Company. The safety and 
health  advocacy  posters  will  be  put  on  occupational  safety  bulletin 
boards in all fabs frequently. In addition, communication channels such 
as ESH mailbox and ESH proposal systems have been established on 
the Company’s intranet website for our employees to reflect opinions or 
problems related to safety and health management.

•  Emergency Response Measures

In order to allow employees to be equipped with the knowledge and 
skills of immediate disaster relief upon occurrence of any accident, all 
employees must take basic fire-fighting, safety and emergency response 
courses arranged by the Company every 5 years. These courses cover 
fire safety, disaster response, and actual operation of fire extinguishers, 
and all employees are expected to be equipped with such skills. In 
addition, an emergency response team (ERT) is formed in every fab, and 
the members of this team should receive various emergency response 
trainings and regular rehearsals with respect to various accidents in 
order to strength the disaster response skills of ERT members and to 
achieve the objective of protection and control at the initial stage of 
disaster.
•  Statistical Analysis of Occupational Incidents

As  for  occupational  incidents  that  take  place  at  the  work  place,  in 
addition  to  regular  summaries  and  reports,  every  accident  must  be 
registered in the accident report and investigation system to be tracked. 
In addition to the investigation of accident causes and improvement and 
prevention, accident prevention should be included as the Company’s 
objective and target of safety and health management. Various activities 
must be promoted in order to achieve the accident reduction and safety 
enhancement.
•  Safety  and  Health  Management  Record,  Performance  
  Review, and Rewards

For facilitating management, in addition to written records, UMC has 
established multiple computer systems as an aid for safety and health 

management, such as an automatic inspection system, ISO 14001 and 
ISO 45001 management systems, accident report and investigation 
system, and walkthrough report system. In addition to facilitating data 
inquiry by employees, the tracking of preventive management measures 
should also be strengthened.
For the performance of safety and health management, in addition to 
management review meetings regularly convened in each fab and for 
the entire company to review the objectives and targets, occupational 
competitions will be arranged in each fab, and all active occupational 
management  indicators  should  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  occupational  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 2022 are as shown below:  

•  “National Enterprise Environmental Protection Award” by the 
Environmental Protection Administration of Executive Yuan, 
R.O.C. (Fab 8A, Fab 8S)

•  “The Best Participation of Green Procurement for Enterprises” by the 
Environmental Protection Administration of Executive Yuan, R.O.C.
•  “Excellent Occupational Safety and Health Executive Organization” 
by the Hsinchu Science Park, National Science and Technology 
Council (Fab 8F)

•  “Excellent Occupational Safety and Health Executive Organization” 
by  the  Southern  Taiwan  Science  Park,  National  Science  and 
Technology Council (Fab 12A)

•  “Excellent Occupational Safety and Health Organization” by the 

Ministry of Labor (Fab 8E, Fab 12A)

156

United Microelectronics Corporation  |  Annual Report 2022Special Disclosures

Issuance of Private Placement Securities 

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

157

Special Disclosures 
 
 
Summary of Affiliated Enterprises
Affliated Organization Chart

United Microelectronics Corp.

UMC Group(USA)

100.00%

United Microelectronics 
(Europe)B.V.

100.00%

UMC Capital Corp.

100.00%

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.

41.03%

UMC Investment 
(Samoa)Limited

100.00%

Wavetek Microelectronics 
Corporation

80.14%

Wavetek Microelectronics 
Investment (Samoa) 
Limited

100.00%

Wavetek Microelectronics  
Corporation(USA)

100.00%

Best Elite International 
Limited

100.00%

Infoshine Technology 
Limited

100.00%

Oakwood Associates 
Limited

100.00%

HeJian Technology 
(Suzhou) Co., Ltd.

99.9985%

UnitedDS 
Semiconductor 
(Shandong) Co., Ltd.

100.00%

United Semiconductor 
(Xiamen) Co., Ltd.

30.83%

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 79.50% of Wavetek Microelectronics Corporation (Wavetek); Fortune Venture Capital Corp. holds 0.64% of Wavetek, and the comprehensive shareholding ratio 

is 80.14%.

158

United Microelectronics Corporation  |  Annual Report 2022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 114743, R.O.C.

Capital

Major Business /
Production Items

NT$489,771,750

IC Sales

NT$115,468,715

Marketing support activities

NT$2,135,270,063

Investment holding

NT$12,760,000

Marketing support activities

NT$4,339,423,400

Venture capital

Fortune Venture Capital Corp.

1993.09.21

5F, No.17, Lane 120, Neihu Road Section 1, 
Taipei, Taiwan 114743, R.O.C.

NT$6,074,847,480 

Consulting and planning for 
venture capital

Green Earth Limited

2009.09.09

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

UMC Investment(Samoa) 
Limited

2011.03.30

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

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$268,164,000

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$23,836,800

Investment holding and 
advisory

Tera Energy Development Co., Ltd. 2011.07.19

1F., No.1, Jinshan 8th St., Hsinchu,  Taiwan 
300063, 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$22,347,000

Solar engineering 
integrated design services

159

Special Disclosures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, 300092 
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

Capital

Major Business /
Production Items

NT$1,863,087,350

Sales and manufacturing of 
integrated circuits

NT$50,833,500

Investment holding

NT$1,787,760

Marketing service

NT$7,120,518,467

Investment holding

NT$10,547,784,000

Investment holding

NT$10,547,784,000

Investment holding

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

NT$13,908,802,453

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 De Guigne Drive, Sunnyvale, CA 94085, 
USA

NT$132,663,000

Design support of 
integrated circuits

NT$130,160,000

Investment holding

NT$29,796,000

Research & development

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

NT$69,417,214,847

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, Mie, Japan

NT$2,276,000,000

Sales and manufacturing of 
integrated circuits

Note: The data is dated December 31, 2022.

160

United Microelectronics Corporation  |  Annual Report 2022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.

161

Special DisclosuresSummary of Affiliated Enterprises (Continue)

Directors, Supervisors and Presidents of Affiliated Enterprises

Name of Corporation

Title

Name or Representative

Shareholding

UMC Group (USA)

Director

Jason Wang

United Microelectronics  
(Europe)B.V.

Director

Chitung Liu

Director

Stan Hung

Director

Jason Wang

UMC Capital Corp.

Chairman

Stan Hung

Director

SC Chien

Director

Jason Wang

Director

Chitung Liu

Director

Chih Chiang Peng

UMC Korea Co., Ltd.

Director

Carissa Tseng

Shares

-

-

-

-

-

-

-

-

-

-

TLC Capital Co., Ltd.

Chairman

United Microelectronics Corporation

433,942,340

Representative:Stan Hung

-

Director

United Microelectronics Corporation

433,942,340

Representative: SC Chien

-

Director

United Microelectronics Corporation

433,942,340

Representative: Jason Wang

-

Director

United Microelectronics Corporation

433,942,340

Representative: Chitung Liu

-

Director

United Microelectronics Corporation

433,942,340

Representative: Chih Chiang Peng

-

Supervisor

United Microelectronics Corporation

433,942,340

Representative: Jinhong Lin

-

%

-

-

-

-

-

-

-

-

-

-

100.00

-

100.00

-

100.00

-

100.00

-

100.00

-

100.00

-

162

United Microelectronics Corporation  |  Annual Report 2022Summary of Affiliated Enterprises (Continue)

Name of Corporation

Title

Name or Representative

Shareholding

Fortune Venture Capital Corp.

Chairman

United Microelectronics Corporation

Representative: Stan Hung

Shares

607,484,748

-

Director

United Microelectronics Corporation

607,484,748

Representative: SC Chien

-

Director

United Microelectronics Corporation

607,484,748

Representative: Jason Wang

-

Director

United Microelectronics Corporation

607,484,748

Representative: Chitung Liu

-

Director and 
President

United Microelectronics Corporation

607,484,748

Representative: Chih Chiang Peng

-

Supervisor

United Microelectronics Corporation

607,484,748

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

-

-

-

-

-

-

-

-

163

Special Disclosures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

-

-

-

-

-

-

164

United Microelectronics Corporation  |  Annual Report 2022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: Jinhong Lin

-

Director

United Microelectronics Corporation

148,112,434

Representative: James W Wang

-

Director

United Microelectronics Corporation

148,112,434

Representative: Hp Wu

-

Supervisor

Hsun Chieh Investment Co., Ltd.

1,664,591

Representative: Mark Hsu

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

-

-

-

-

-

-

-

-

%

79.50

-

79.50

-

79.50

-

79.50

-

79.50

-

0.89

-

0.01

-

-

-

-

-

-

-

-

165

Special Disclosures 
Summary of Affiliated Enterprises (Continue)

Name of Corporation

Title

Name or Representative

Shareholding

Shares

-

-

-

-

-

-

-

-

-

-

-

-

-

%

-

-

-

-

-

-

-

-

-

-

-

-

-

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

166

United Microelectronics Corporation  |  Annual Report 2022Summary of Affiliated Enterprises (Continue)

Name of Corporation

Title

Name or Representative

Shareholding

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

Jia Ling Fu

Director

Liang Yi Xia

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 F Tzou

Director

Ming Hsu

Director

Chitung Liu

Director

Yen Huang

Director

Michiari Kawano

Director

Koichi Onomura

Director

Tatsuya Deguchi

Independent 
Director

Supervisor

Masanori Suzuki

Angel Sun

Note: The data is dated December 31, 2022.

Shares

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

%

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

167

Special DisclosuresSummary of Affiliated Enterprises (Continue)

Summarized Operation 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)

489,772 

13,871,122 

11,870,714 

2,000,408 

76,496,013 

95,564 

100,308 

6.10 

United Microelectronics  
(Europe) B.V.

115,469 

171,059 

31,080 

139,979 

62,542 

4,572 

1,268 

140.83 

UMC Capital Corp.

2,135,270 

5,061,941 

420 

5,061,521 

(680,571)

(697,137)

(684,710)

(9.55)

UMC Korea Co., Ltd. 

12,760 

33,798 

11,375 

22,423 

34,750 

3,032 

1,877 

17.06 

TLC Capital Co., Ltd.

4,339,423 

5,125,473 

169,074 

4,956,399 

693,527 

336,678 

290,738 

0.68 

Fortune Venture Capital Corp.

6,074,847 

6,620,720 

78,484 

6,542,236 

475,716 

(662,917)

(701,144)

(1.27)

Green Earth Limited

29,988,444 

12,563,053 

 - 

12,563,053 

UMC Investment (Samoa) Limited

43,519 

42,895 

 - 

42,895 

 - 

 - 

 - 

 - 

1,061,810 

4,030 

1.09 

2.65 

ECP Vita Pte. Ltd.

268,164 

770,649 

98,680 

671,969 

67,012 

51,565 

51,397 

5.71 

Soaring Capital Corp.

27,351 

9,719 

 - 

9,719 

0 

2,408 

2,423 

Unitruth Advisor (Shanghai) Co., Ltd.

23,837 

10,897 

1,184 

9,713 

13,256 

2,541 

2,453 

Tera Energy Development Co., Ltd.

78,000 

177,152 

60,365 

116,787 

180,294 

31,755 

36,293 

Everrich Energy Investment (HK) 
Limited

25,988 

46,345 

44 

46,301 

 - 

(46)

2,669 

Everrich (Shandong) Energy Co., Ltd.

22,347 

55,896 

9,455 

46,441 

7,132 

2,328 

2,695 

2.69 

NA

4.65 

3.56 

NA

168

United Microelectronics Corporation  |  Annual Report 2022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)

1,863,087 

4,214,533 

2,486,496 

1,728,037 

3,440,742 

566,457 

579,486 

50,834 

2,968 

1,788 

2,850 

 - 

 - 

2,968 

 - 

2,850 

193 

 - 

10 

(13)

(17)

3.11 

(0.01)

(0.28)

Best Elite International Limited

7,120,518 

32,092,719 

1,290 

32,091,429 

Infoshine Technology Limited

10,547,784 

32,036,736 

 - 

32,036,736 

Oakwood Associates Limited

10,547,784 

32,036,736 

 - 

32,036,736 

 - 

 - 

 - 

(5,334)

8,372,540 

12.59 

 - 

 - 

8,372,192 

8,372,192 

NA

NA

HeJian Technology (Suzhou) Co., 
Ltd.

UnitedDS Semiconductor 
(Shandong) Co., Ltd.

13,908,802 

36,448,259 

4,902,539 

31,545,720 

17,468,913 

7,849,378 

8,290,178 

2.64 

132,663 

1,209,183 

411,346 

797,837 

1,684,850 

369,639 

371,318 

NA

Omni Global Limited 

130,160 

749,679 

 - 

749,679 

 - 

 - 

54,871 

12.76 

United Microtechnology Corporation 
(California)

United Semiconductor  (Xiamen) 
Co., Ltd.

29,796 

41,191 

1,569 

39,622 

31,039 

1,757 

1,733 

43,326.58 

69,417,215 

56,083,649 

25,687,750 

30,395,899 

25,260,866 

3,222,784 

2,332,148 

United Microchip Corporation

29,874,878 

12,535,675 

 - 

12,535,675 

Sino Paragon Limited

83,204 

127,018 

 - 

127,018 

 - 

 - 

 - 

 - 

1,059,106 

(11,202)

(4.31)

NA

1.09 

United Semiconductor  
Japan Co., Ltd. 

2,276,000 

33,340,743 

8,710,770 

24,629,973 

23,699,984 

9,513,236 

7,159,811 

61.59 

Note: US$:NT$=1:29.796, JPY:NT$=1:0.2276, EUR:NT$=1:31.366, RMB:NT$=1:4.4221, KRW:NT$=1:0.0232

169

Special Disclosures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

Fortune Venture Capital 
Corp.

6,074,847

New shares
for cash

100.00

4,447,521

2023

2022

2021

None

None

None

Note:  (1) Annual report printing date: February 22, 2023. 

(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.

In Thousand NT$, Shares

Profit/
Loss

As of Annual Report
Printing Date

None

None

None

None

Shares Amount

None

None

None

None

Shares: 16,078,737
Amount: 920,443

815,329

None

None

          (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 2022 and as of the Annual Report Printing 
Date

None.

170

United Microelectronics Corporation  |  Annual Report 2022 
 
 
Financial Review

172  Condensed Balance Sheets 
174  Condensed Statements of Comprehensive Income 
176   Financial Analysis 
180  Audit Committee’s Review Report 
181  Financial Statements – Consolidated
257  Financial Statements – Parent Company

171

Financial ReviewCondensed Balance Sheets

Condensed Balance Sheets-Consolidated

Item

Current assets

2022

2021

2020

252,371,038

233,273,433

164,305,911

Property, plant and equipment

170,982,066

129,941,703

132,774,663

4,275,200

105,423,788

533,052,092

108,565,165

3,644,933

97,566,702

464,426,771

105,453,729

4,877,913

75,557,888

377,516,375

78,243,526

2019

153,757,141

150,374,096

5,198,247

60,857,881

In Thousand NT$

2018

141,193,432

172,846,595

2,991,804

47,573,075

370,187,365

364,604,906

72,714,322

49,899,337

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

*

142,900,099

98,119,368

82,479,477

56,815,442

89,035,988

77,770,158

197,601,153

183,223,887

63,499,747

141,743,273

90,258,621

162,972,943

108,169,078

158,068,415

*

220,670,257

161,619,115

172,738,098

164,984,520

335,107,260

280,979,703

235,659,746

206,804,357

206,069,723

125,047,490

12,377,833

124,832,476

47,898,093

124,224,015

43,211,214

117,575,798

39,550,394

124,243,187

40,399,363

*

10,451,723

43,211,214

39,550,394

40,399,363

202,247,024

115,375,789

80,176,360

60,820,280

61,588,543

*

115,375,789

60,300,518

51,055,125

54,672,438

(4,565,087)

(7,126,655)

(11,832,042)

(11,022,314)

-

343,679

-

223,181

(119,801)

113,356

(119,801)

410,065

(14,513,940)

(5,647,430)

466,768

335,450,939

281,202,884

235,773,102

207,214,422

206,536,491

*

243,756,514

215,897,260

197,449,267

199,620,386

Note 1: *Subject to change based on resolutions of the 2023 shareholders’ meeting.
Note 2: The company listed on the TWSE or traded on the TPEx shall include in its disclosures the most recent financial data which were audited or reviewed by a certified 

public accountant for the period closest to the publication date of the annual report: None.

172

United Microelectronics Corporation  |  Annual Report 20222022

2021

180,046,419

173,934,887

127,926,250

3,245,419

178,348,910

489,566,998

86,600,204

76,105,085

3,323,995

150,987,914

404,351,881

68,328,684

2020

122,967,977

66,640,272

4,167,373

125,122,444

318,898,066

29,622,014

2019

107,866,299

79,486,445

4,082,826

111,315,394

302,750,964

43,764,772

In Thousand NT$

2018

101,335,770

101,115,727

2,886,159

93,849,564

299,187,220

26,797,263

*

105,775,054

49,497,856

53,529,927

33,713,368

67,859,534

154,459,738

55,043,494

123,372,178

53,616,306

83,238,320

52,181,835

95,946,607

66,320,234

93,117,497

*

160,818,548

103,114,162

105,711,762

100,033,602

125,047,490

12,377,833

124,832,476

47,898,093

124,224,015

43,211,214

117,575,798

39,550,394

124,243,187

40,399,363

*

10,451,723

43,211,214

39,550,394

40,399,363

202,247,024

115,375,789

80,176,360

60,820,280

61,588,543

*

115,375,789

60,300,518

51,055,125

54,672,438

Condensed Balance Sheets-Parent Company

Item

Current assets

Property, plant and equipment

Intangible assets

Other assets

Total assets

Current liabilities

Non-current liabilities

Total liabilities

Capital

Additional paid-in capital

Retained earnings

Before 
distribution

After 
distribution

Before 
distribution

After 
distribution

Before 
distribution

After 
distribution

Before 
distribution

After 
distribution

Treasury stock

Total equity

Before 
distribution

After 
distribution

Other components of equity

(4,565,087)

(7,126,655)

(11,832,042)

-

-

(119,801)

335,107,260

280,979,703

235,659,746

206,804,357

(11,022,314)

(119,801)

(14,513,940)

(5,647,430)

206,069,723

*

243,533,333

215,783,904

197,039,202

199,153,618

Note 1: * Subject to change based on resolutions of the 2023 shareholders’ meeting.
Note 2: The company listed on the TWSE or traded on the TPEx shall include in its disclosures the most recent financial data which were audited or reviewed by a certified 

public accountant for the period closest to the publication date of the annual report: None.

173

Financial Review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 shareholders of 
the parent

Net income attributable to non-controlling 
interests

Comprehensive income attributable to 
shareholders of the parent

Comprehensive income attributable to non-
controlling interests

2022

2021

2020

278,705,264

125,764,377

104,292,225

1,805,012

106,097,237

88,018,251

2,437,539

90,455,790

87,198,291

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

In Thousand NT$

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

819,960

(668,245)

(2,009,077)

(3,578,847)

(4,429,938)

89,635,822

59,911,829

33,748,370

13,131,612

8,126,828

819,968

(668,264)

(1,882,424)

(3,594,060)

(4,533,832)

Earnings per share (NT$)

7.09

4.57

2.42

0.82

0.58

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 disclosures the most recent financial data which were audited or reviewed by a certified 

public accountant for the period closest to the publication date of the annual report: None.

174

United Microelectronics Corporation  |  Annual Report 2022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$)

In Thousand NT$

2019

2018

123,622,436

132,834,602

2022

2021

210,083,555

159,222,834

102,567,440

82,726,305

18,294,167

101,020,472

87,198,291

2,437,531

62,195,577

43,396,863

17,284,085

60,680,948

55,780,255

4,131,574

2020

135,280,403

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

89,635,822

59,911,829

33,748,370

13,131,612

7.09

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

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 disclosures the most recent financial data which were audited or reviewed by a certified 

public accountant for the period closest to the publication date of the annual report: None.

Auditors’ Opinions from 2018 to 2022

Year

CPA

Audit Opinion

2018

2019

2020

2021

2022

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

Wan-Ju Chiu, Hsin-Min Hsu

Unqualified Opinion with Emphasis of Matter Paragraphs or Other Matter Paragraphs

175

Financial ReviewFinancial Analysis
Financial Analysis- Consolidated

Item

Capital structure Debt ratio (%)

Long-term funds to property, plant and equipment (%)

Liquidity

Current ratio (%)

Quick ratio (%)

Operating 
performance

Times interest earned (times)

Average receivables turnover (times)

Days sales outstanding

Average inventory turnover (times)

Average payables turnover (times)

Average inventory turnover days

Property, plant and equipment turnover (times)

Total assets turnover (times)

Profitability

Return on assets (%)

Return on stockholders' equity attributable to the 
parent company (%)

Pre-tax income to paid-in capital (%)

Net profit margin (%)

Earnings per share (NT$)

Cash Flow

Cash flow ratio (%)

Cash flow adequacy ratio (%)

Cash flow reinvestment ratio (%)

Leverage

Operating leverage

Financial leverage

2022

37.07

219.51

232.46

200.58

60.37

7.72

47

5.66

17.63

64

1.85

0.56

17.93

28.31

84.19

31.58

7.09

134.35

139.90

8.32

2.17

1.02

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

Analysis of change over 20% from 2021 to 2022:
1. Times interest earned: Due to increase in income before interest and tax.
2. Return on assets, Net profit margin: Due to increase in net income.
3. Return on shareholders' equity attributable to the parent company, Earnings per share: Due to increase in net income attributable to shareholders of 

the parent company.

4. Pre-tax income to paid-in capital: Due to increase in income before tax attributable to shareholders of the parent company.
5. Cash flow ratio, Cash flow reinvestment ratio: Due to increase in net cash provided by operating activities and property, plant and equipment.
6. Operating leverage: Due to increase in operating income.

176

United Microelectronics Corporation  |  Annual Report 2022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 shareholders of the parent – preferred shares dividends) / weighted average number of shares outstanding

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 most recent financial data which were audited or reviewed by a certified public 

accountant for the period closest to the publication date of the annual report: None.

177

Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Analysis (Continue)

Financial Analysis- Parent Company

Item

Capital structure Debt ratio (%)

Long-term funds to property, plant and equipment (%)

Liquidity

Current ratio (%)

Quick ratio (%)

Operating 
performance

Times interest earned (times)

Average receivables turnover (times)

Days sales outstanding

Average inventory turnover (times)

Average payables turnover (times)

Average inventory turnover days

Property, plant and equipment turnover (times)

Total assets turnover (times)

Profitability

Return on assets (%)

Return on equity (%)

Pre-tax income to paid-in capital (%)

Net profit margin (%)

Earnings per share (NT$)

Cash Flow

Cash flow ratio (%)

Cash flow adequacy ratio (%)

Cash flow reinvestment ratio (%)

Leverage

Operating leverage

Financial leverage

2022

31.55

281.67

207.91

179.68

157.16

7.83

47

5.75

18.25

63

2.06

0.47

19.62

28.31

80.79

41.51

7.09

124.99

133.28

6.03

2.08

1.01

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

Analysis of change over 20% from 2021 to 2022:
1. Long-term funds to property, plant and equipment: Due to increase in property, plant and equipment.
2. Quick ratio: Due to increase in payables on equipment.
3. Times interest earned, Return on assets, Return on equity, Pre-tax income to paid-in capital, and Earnings per share: Due to increase in income before 

tax and net income.

4. Cash flow ratio, and Cash flow reinvestment ratio: Due to increase in net cash provided by operating activities.
5. Cash flow adequacy ratio: Due to increase in five-year sum of capital expenditures.
6. Operating leverage: Due to increase in operating income.

178

United Microelectronics Corporation  |  Annual Report 2022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 most recent financial data which were audited or reviewed by a certified public 

accountant for the period closest to the publication date of the annual report: None.

179

Financial ReviewAudit Committee’s Review Report

The  Board  of  Directors  has  prepared  and  submitted  to  us  the  Company’s  2022  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 2023 Annual General Shareholders’ Meeting

Chairman of the Audit Committee: Lih J. Chen 

 February 22, 2023

180

United Microelectronics Corporation  |  Annual Report 2022 
 
 
 
 
           
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United Microelectronics Corporation  |  Annual Report 2022 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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185

Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
English Translation of Consolidated Financial Statements Originally Issued in Chinese

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 

For the years ended December 31, 2022 and 2021

(Expressed in Thousands of  New Taiwan Dollars, Except for Earnings per Share)

For the years ended December 31,
2022
2021

$                

278,705,264

$                

213,011,018

(152,940,887)
125,764,377

(140,961,389)
72,049,629

(4,182,929)
(9,672,613)
(12,953,534)
(2,723)
(26,811,799)
5,339,647
104,292,225

2,022,314
2,163,043
(1,185,093)
(1,866,329)
(1,851,767)
2,522,844
1,805,012
106,097,237
(18,078,986)
88,018,251

(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

296,804
(4,646,064)

(197,477)
5,811,342

(2,983,802)

3,361,023

(342,756)

(104,643)

9,292,308
91,676

(4,741,016)
(24,474)

729,373
2,437,539
90,455,790

$                  

26,800
4,131,555
59,243,565

$                  

$                  

$                  

$                  

$                  

$                  

$                  

$                  

$                  

87,198,291
819,960
88,018,251

89,635,822
819,968
90,455,790

55,780,255
(668,245)
55,112,010

59,911,829
(668,264)
59,243,565

Notes

4, 6(21), 7
4, 6(6), 6(10), 6(15),
6(20), 6(21), 6(22), 7

4, 6(5), 6(10), 6(15),
6(20), 6(22), 7

4, 6(16), 6(23)

4
4
4, 6(24)
6(24)
4, 6(7)
4

4, 6(26)

6(25)

4, 6(15)
4

4, 6(26)

4, 6(26)

4, 6(27)

Operating revenues
Operating costs

Gross profit
Operating expenses

    Sales and marketing expenses
    General and administrative expenses
    Research and development expenses
    Expected credit impairment gains (losses) 
        Subtotal
Net other operating income and expenses
Operating income
Non-operating income and expenses
    Interest income
    Other income
    Other gains and losses
    Finance costs
    Share of profit or loss of associates and joint ventures
    Exchange gain, 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 

186

The accompanying notes are an integral part of the consolidated financial statements.

$                              
$                              

7.09
6.87

$                              
$                              

4.57
4.48

United Microelectronics Corporation  |  Annual Report 2022                         
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Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
English Translation of Consolidated Financial Statements Originally Issued in Chinese

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the years ended December 31, 2022 and 2021

(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 losses (gains)

        Net loss (gain) of financial assets and liabilities at fair value through profit or loss

        Interest expense

        Interest income

        Dividend income

        Share-based payment

        Share of loss (profit) of associates and joint ventures

        Gain on disposal of property, plant and equipment

        Loss on disposal of investments

        Loss on repurchases of bonds

        Exchange loss (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

            Accounts receivable

            Other receivables

            Inventories

            Prepayments

            Other current assets

            Contract fulfillment costs

            Contract liabilities

            Accounts payable

            Other payables

            Other current liabilities

            Net defined benefit liabilities

            Other noncurrent liabilities-others

        Cash generated from operations

            Interest received

            Dividend received

            Interest paid

            Income tax paid

                Net cash provided by operating activities

188

(continued)

For the years ended December 31,

2022

2021

$         

106,097,237

$           

61,803,404

41,328,374

2,841,334

2,723

1,247,962

1,785,311

(2,022,314)

(2,163,043)

1,351,738

1,851,767

(482,983)

-

203,851

2,436,159

(1,162)

(4,163,746)
-

44,215,971

14,825

(47,842)

(1,115,482)

(914,736)

(7,637,528)

(4,041,038)

-

(97,027)

(252,594)

490,949

9,230,484

791,279

(711,115)

(8,039)

146,015,344

1,852,783

4,132,529

(1,422,337)

(4,717,790)

145,860,529

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

United Microelectronics Corporation  |  Annual Report 2022             
             
               
               
                       
                     
               
              
               
               
              
                 
              
              
               
               
               
              
                 
                 
                              
                     
                  
               
                 
                     
                              
              
              
                 
                  
             
             
                     
                  
                   
                   
              
              
                 
                  
              
                 
              
                 
                              
                     
                   
                   
                 
               
                  
                  
               
               
                  
                 
                 
                 
                     
                     
           
             
               
                  
               
               
              
              
              
              
           
             
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, 2022 and 2021

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from investing activities:

    Acquisition of financial assets at fair value through profit or loss

$            

(1,041,792)

$               

(921,916)

For the years ended December 31,

2022

2021

    Proceeds from disposal of financial assets at fair value through profit or loss

    Acquisition of financial assets measured at amortized cost

    Proceeds from redemption of financial assets measured at amortized cost

    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 noncurrent assets-others

    Decrease in other noncurrent assets-others

        Net cash used in investing activities

Cash flows from financing activities:

    Increase in short-term loans

    Decrease in short-term loans

    Proceeds from bonds issued

    Bonds issuance costs

    Redemption of bonds

    Proceeds from long-term loans

    Repayments of long-term loans

    Increase in guarantee deposits

    Decrease in guarantee deposits

    Cash payments for the principal portion of the lease liability

773,318

(1,682,788)

30,179,933

-

-

-

439,145

(37,141,310)

22,132,639

(5,025)

42,150

714,358

(80,127,628)

(48,034,633)

669,282

(558,491)

186,175

(2,756,155)

173,909

(243,084)

55

216,314

(274,015)

220,750

(1,924,924)

2,498,984

(125,917)

-

(54,427,266)

(62,163,400)

228,980

(2,194,664)

-

-

(13,305,050)

2,319,371

(21,135,630)

15,823,396

(838,455)

(712,854)

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)

    Cash dividends and cash distributed from additional paid-in capital

(37,445,300)

(19,871,129)

    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 in cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

5,456

-

(57,254,750)

7,018,133

41,196,646

132,622,131

23,430

65

12,490,107

(2,104,503)

38,574,095

94,048,036

$         

173,818,777

$         

132,622,131

The accompanying notes are an integral part of the consolidated financial statements.

189

Financial Review                  
                  
              
            
             
             
                              
                     
                              
                    
                              
                  
            
            
                  
                  
                 
                 
                  
                  
              
              
                  
               
                 
                 
                           
                              
            
            
                  
               
              
            
                              
             
                              
                   
            
              
               
             
            
            
             
             
                 
                 
                 
                 
            
            
                      
                    
                              
                           
            
             
               
              
             
             
           
             
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206

United Microelectronics Corporation  |  Annual Report 2022 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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United Microelectronics Corporation  |  Annual Report 2022 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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United Microelectronics Corporation  |  Annual Report 2022 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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.
4
1

234

United Microelectronics Corporation  |  Annual Report 2022 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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United Microelectronics Corporation  |  Annual Report 2022 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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249

Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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United Microelectronics Corporation  |  Annual Report 2022 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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261

Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
English Translation of Parent Company Only Financial Statements Originally Issued in Chinese

UNITED MICROELECTRONICS CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME 

For the years ended December 31, 2022 and 2021

(Expressed in Thousands of  New Taiwan Dollars, Except for Earnings per Share)

Operating revenues
Operating costs

Gross profit
Operating expenses

    Sales and marketing expenses

    General and administrative expenses

    Research and development expenses

    Expected credit impairment gains (losses) 

        Subtotal

Net other operating income and expenses

Operating income

Non-operating income and expenses

    Interest income

    Other income

    Other gains and losses

    Finance costs

    Share of profit or loss of subsidiaries, associates and joint ventures

    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 subsidiaries, associates
      and joint ventures which will not be reclassified subsequently to profit or loss
    Income tax related to items that will not be reclassified subsequently

Items that may be reclassified subsequently to profit or loss

    Exchange differences on translation of foreign operations
    Share of other comprehensive income (loss) of subsidiaries, associates
      and joint ventures which may be reclassified subsequently to profit or loss
    Income tax related to items that may be reclassified subsequently

Total other comprehensive income (loss)

Total comprehensive income (loss)

Earnings per share (NTD)

    Earnings per share-basic 

    Earnings per share-diluted 

For the years ended December 31,

Notes

2022

2021

4, 6(21), 7
4, 6(6), 6(10), 6(15),
6(20), 6(21), 6(22), 7

4, 6(5), 6(10), 6(15),
6(20), 6(22), 7

$      

210,083,555

$

159,222,834

(107,516,115)
102,567,440

(97,027,257)
62,195,577

(2,782,706)

(7,282,887)

(3,495,499)

(5,692,011)

(10,244,940)

(10,016,596)

(3,690)

6,617

(20,314,223)

(19,197,489)

473,088

398,775

82,726,305

43,396,863

1,401,110

1,816,261

(224,288)

(707,491)

14,526,472

1,482,103

-

18,294,167

101,020,472

(13,822,181)

87,198,291

228,165

726,395

(806,676)

(618,951)

17,876,394

-

(121,242)

17,284,085

60,680,948

(4,900,693)

55,780,255

296,804
(4,335,894)

(197,477)
5,496,342

(3,293,972)

3,676,023

(342,756)

(104,643)

8,757,087
622,598

733,664

2,437,531

(1,827,851)
(2,936,529)

25,709

4,131,574

$        

89,635,822

$

59,911,829

$                   

7.09

$                   

6.87

$

$

4.57

4.48

4, 6(16), 6(23), 7

4
4

4, 6(24)

6(24)

4, 6(7)

4

4

4, 6(26)

6(25)

4, 6(15)
4

4, 6(26)

4, 6(26)

4, 6(27)

The accompanying notes are an integral part of the parent company only financial statements.

262

United Microelectronics Corporation  |  Annual Report 2022                           
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263

Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
English Translation of Parent Company Only Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION
PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS
For the years ended December 31, 2022 and 2021
(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 losses (gains)

        Net loss (gain) of financial assets and liabilities at fair value through profit or loss

        Interest expense

        Interest income

        Dividend income

        Share-based payment

        Share of profit of subsidiaries, associates and joint ventures

        Gain on disposal of property, plant and equipment

        Loss on disposal of investments

        Loss on repurchases of bonds

        Exchange loss (gain) on financial assets and liabilities

        Gain on lease modification

        Amortization of deferred income

        Others

            Income and expense adjustments

        Changes in operating assets and liabilities:

            Financial assets and liabilities at fair value through profit or loss

            Contract assets

            Accounts receivable

            Other receivables

            Inventories

            Prepayments

            Other current assets

            Contract fulfillment costs

            Contract liabilities

            Accounts payable

            Other payables

            Other current liabilities

            Net defined benefit liabilities

            Other noncurrent liabilities-others

        Cash generated from operations

            Interest received

            Dividend received

            Interest paid

            Income tax paid

                Net cash provided by operating activities

264

(continued)

For the years ended December 31,

2022

2021

$             

101,020,472

$               

60,680,948

21,755,962

2,394,951

3,690

233,271

645,227

(1,401,110)

(1,816,261)

1,341,412

(14,526,472)

(450,097)

-

203,851

1,264,412

(9)

(1,134,314)

-

8,514,513

(62,303)

(26,481)

(818,498)

(768,455)

(5,421,396)

(4,117,531)

-

(57,844)

73,988

462,256

7,791,162

423,572

(711,115)

9,207

106,311,547

1,257,700

3,781,544

(339,829)

(2,773,181)

108,237,781

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

United Microelectronics Corporation  |  Annual Report 2022                 
                 
                   
                   
                         
                        
                      
                 
                      
                      
                 
                    
                 
                    
                   
                   
               
               
                    
                    
                                 
                            
                      
                                 
                   
                    
                               
                                 
                 
                 
                                 
                      
                   
                   
                      
                      
                      
                      
                    
                 
                    
                        
                 
                      
                 
                    
                                 
                        
                      
                      
                        
                      
                      
                      
                   
                   
                      
                    
                    
                    
                         
                        
               
                 
                   
                      
                   
                   
                    
                    
                 
                 
               
                 
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, 2022 and 2021
(Expressed in Thousands of New Taiwan Dollars)

Cash flows from investing activities:

    Acquisition of financial assets at fair value through profit or loss

$                  

(368,664)

$                                
-

For the years ended December 31,

2022

2021

    Acquisition of financial assets measured at amortized cost

    Proceeds from redemption of financial assets measured at amortized cost

    Proceeds from liquidation of investments

    Acquisition of property, plant and equipment

    Proceeds from disposal of property, plant and equipment

    Increase in refundable deposits

    Decrease in refundable deposits

    Increase in other receivables

    Decrease in other receivables

    Acquisition of intangible assets

    Government grants related to assets acquisition

    Increase in other 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

-

26,632,637

-

(72,318,450)

557,983

(110,794)

28,780

-

-

(1,747,816)

60,547

(243,036)

(47,508,813)

-

(287,700)

-

-

(13,305,050)

1,550,000

(3,250,000)

15,701,075

(794,146)

(342,621)

(34,760,279)

21,265,088

369,576

(37,629,809)

311,084

(33,497)

174,094

(500,000)

500,000

(1,700,951)

45,651

(125,799)

(52,084,842)

3,779,450

(4,757,950)

25,760,800

(57,108)

(2,000,000)

2,250,000

(6,250,000)

12,862,911

(547,259)

(317,301)

    Cash dividends and cash distributed from additional paid-in capital

(37,445,300)

(19,871,129)

    Others

        Net cash provided by (used in) financing activities

Effect of exchange rate changes on cash and cash equivalents

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

-

(38,173,742)

6,286,914

28,842,140

93,648,701

65

10,852,479

(1,095,892)

24,598,805

69,049,896

$             

122,490,841

$               

93,648,701

The accompanying notes are an integral part of the parent company only financial statements.

265

Financial Review                                  
               
                 
                 
                                  
               
               
                      
                      
                    
                      
                        
                      
                                  
                    
                                  
                      
                 
                 
                        
                        
                    
                    
               
               
                                  
                   
                    
                 
                                  
                 
                                  
                      
               
                 
                   
                   
                 
                 
                 
                 
                    
                    
                    
                    
               
               
                                  
                               
               
                 
                   
                 
                 
                 
                 
                 
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United Microelectronics Corporation  |  Annual Report 2022 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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United Microelectronics Corporation  |  Annual Report 2022 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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United Microelectronics Corporation  |  Annual Report 2022 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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327

Financial Review 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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U

United Microelectronics Corporation  |  Annual Report 2022 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UMC and its Affiliated Enterprises have Not Faced Financial 
Difficulties during Recent Years up to the Annual Report 
Printing Date

329

Financial ReviewUnited Microelectronics Corporation

Representative: Stan Hung