TAIPEI, Taiwan–(BUSINESS WIRE)–United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the second quarter of 2021.
Second quarter consolidated revenue was NT$50.91 billion, increasing 8.1% QoQ from NT$47.10 billion in 1Q21. Compared to a year ago, 2Q21 revenue was up 14.7% YoY from NT$44.39 billion in 2Q20. Consolidated gross margin for 2Q21 was 31.3%. Net income attributable to the shareholders of the parent was NT$11.94 billion, with earnings per ordinary share of NT$0.98.
Jason Wang, co-president of UMC, said, “Strong demand fueled by 5G adoption and digital transformation underpinned our strong performance in the second quarter. Our manufacturing facilities exceeded 100% utilization while overall wafer shipments rose 3.0% QoQ to 2.44 million 8-inch equivalents. Revenue from 28nm technologies continued to grow sequentially, fueled by applications incorporated into 4G/5G smartphones, Solid State Drive, and Digital TV. During the quarter, we continued our product optimization and cost reduction efforts, lifting our gross margin. We expect the strength of structural demand to sustain and support the continuous improvement of blended ASP. As a result, the Company’s gross profit in the first half of 2021 surged 54.5% YoY to NT$28.40 billion.”
Co-president Wang continued, “Looking ahead, we anticipate demand to stay robust in the third quarter driven by megatrends such as 5G and EV. Supply tightness is expected to continue, across 8″ and 12″ facilities. We foresee margin momentum to continue into the third quarter, supported by further product mix optimization, cost reduction efforts and productivity enhancements. In addition, we expect the adoption rate of our 22nm technologies will continue to gain traction, reflected by a pickup in customers’ 22nm product tape outs in connectivity and display applications. We will also focus on further strengthening our leadership position in a number of specialty technologies such as OLED display driver, RFSOI and imaging applications. Moreover, we continue to take important steps to enhance our corporate governance and lead sustainability efforts in our industry. Earlier this month, five independent directors were newly elected to the Company’s Board of Directors, representing more than 50% of the board seats and including two female directors. The Company also announced its pledge to reach net zero carbon emissions by 2050, as well as our commitment to work alongside our partners to reduce carbon intensiveness and raise renewable energy usage in our supply chain. UMC is dedicated to enhance our corporate governance as well as addressing climate change to build a sustainable environment.”
Summary of Operating Results
Operating Results
(Amount: NT$ million)
2Q21
1Q21
QoQ %
change
2Q20
YoY %
change
Operating Revenues
50,908
47,097
8.1
44,386
14.7
Gross Profit
15,908
12,494
27.3
10,257
55.1
Operating Expenses
(6,201)
(5,932)
4.5
(5,677)
9.2
Net Other Operating Income and Expenses
1,606
1,060
51.6
1,266
26.9
Operating Income
11,313
7,622
48.4
5,846
93.5
Net Non-Operating Income and Expenses
1,881
3,361
(44.0)
818
129.9
Net Income Attributable to Shareholders of the Parent
11,943
10,428
14.5
6,681
78.8
EPS (NT$ per share)
0.98
0.85
0.55
(US$ per ADS)
0.176
0.153
0.099
Operating revenues in 2Q21 increased 8.1% to NT$50.91 billion partly reflected by slightly higher wafer shipment and the enhancement in blended product mix. Revenue contribution from 40nm and below technologies was 38%. Gross profit grew 27.3% QoQ to NT$15.91 billion, or 31.3% of revenue. Operating expenses increased 4.5% to NT$6.20 billion. Net other operating income increased to NT$1.61 billion. Net non-operating income was NT$1.88 billion. Net income attributable to shareholders of the parent increased to NT$11.94 billion.
Earnings per ordinary share for the quarter was NT$0.98. Earnings per ADS was US$0.176. The basic weighted average number of outstanding shares in 2Q21 was 12,206,292,756, compared with 12,206,292,756 shares in 1Q21 and 12,193,149,897 shares in 2Q20. The diluted weighted average number of outstanding shares was 12,382,592,798 in 2Q21, compared with 12,381,821,873 shares in 1Q21 and 12,262,774,432 shares in 2Q20. The fully diluted shares counted on June 30, 2021 were approximately 12,398,671,000.
Detailed Financials Section
COGS & Expenses
(Amount: NT$ million)
2Q21
1Q21
QoQ %
change
2Q20
YoY %
change
Operating Revenues
50,908
47,097
8.1
44,386
14.7
COGS
(35,000)
(34,603)
1.1
(34,129)
2.6
Depreciation
(10,187)
(10,412)
(2.2)
(10,544)
(3.4)
Other Mfg. Costs
(24,813)
(24,191)
2.6
(23,585)
5.2
Gross Profit
15,908
12,494
27.3
10,257
55.1
Gross Margin (%)
31.3%
26.5%
23.1%
Operating Expenses
(6,201)
(5,932)
4.5
(5,677)
9.2
G&A
(1,901)
(1,806)
5.2
(1,537)
23.5
Sales & Marketing
(1,131)
(1,089)
3.8
(929)
21.8
R&D
(3,168)
(3,049)
3.9
(3,203)
(1.1)
Expected Credit Impairment Gain (Loss)
(1)
12
–
(8)
(81.3)
Net Other Operating Income & Expenses
1,606
1,060
51.6
1,266
26.9
Operating Income
11,313
7,622
48.4
5,846
93.5
Operating revenues grew to NT$50.91 billion. COGS remained flattish at NT$35.00 billion, as the 2.2% sequential decline in depreciation was offset the 2.6% increase in other manufacturing costs primarily due to higher wafer shipments in 2Q21. Gross profit increased 27.3% QoQ to NT$15.91 billion, reflecting the uptick in overall average selling price across 8″ and 12″ wafer shipments. Operating expenses increased 4.5% QoQ to NT$6.20 billion, as G&A grew 5.2% sequentially to NT$1.90 billion while R&D increased 3.9% QoQ to NT$3.17 billion, representing 6.2% of revenue. Sales & Marketing was up 3.8% QoQ to NT$1.13 billion. Net other operating income was NT$1.61 billion. In 2Q21, operating income expanded 48.4% QoQ to NT$11.31 billion.
Non-Operating Income and Expenses
(Amount: NT$ million)
2Q21
1Q21
2Q20
Non-Operating Income and Expenses
1,881
3,361
818
Net Interest Income and Expenses
(310)
(272)
(307)
Net Investment Gain and Loss
2,276
3,530
1,643
Exchange Gain and Loss
(84)
93
(411)
Other Gain and Loss
(1)
10
(107)
Net non-operating income in 2Q21 was NT$1.88 billion, mainly resulting from NT$2.28 billion in net investment gain, offset by a NT$310 million in net interest expense and a NT$84 million in exchange loss.
Cash Flow Summary
(Amount: NT$ million)
For the 3-Month Period Ended
Jun. 30, 2021
For the 3-Month Period Ended
Mar. 31, 2021
Cash Flow from Operating Activities
23,123
18,281
Net income before tax
13,194
10,983
Depreciation & Amortization
11,671
11,833
Share of profit of associates and joint ventures
(881)
(1,767)
Income tax paid
(300)
(51)
Changes in working capital & others
(561)
(2,717)
Cash Flow from Investing Activities
(18,482)
(7,120)
Acquisition of PP&E
(8,520)
(7,352)
Acquisition of intangible assets
(835)
(619)
Increase in other financial assets
(10,893)
(8)
Others
1,766
859
Cash Flow from Financing Activities
13,238
2,580
Bank loans
(1,384)
2,368
Bonds Issued
9,600
–
Redemption of bonds
(2,000)
–
Increase in deposits-in
7,205
382
Others
(183)
(170)
Effect of Exchange Rate
(1,164)
(504)
Net Cash Flow
16,715
13,237
Beginning balance
107,285
94,048
Ending balance
124,000
107,285
In 2Q21, cash inflow from operating activities was NT$23.12 billion. Cash outflow from investing activities totaled NT$18.48 billion, which included NT$9.48 billion in capital expenditure, resulting in free cash flow of NT$13.64 billion. Cash inflow from financing activities was NT$13.24 billion, primarily from a NT$9.60 billion from the issuance of bonds and a NT$7.21 billion in deposit which included the capacity deposit from 12A P6 agreement, offset by a NT$2.00 billion in the redemption of bonds and a NT$1.38 billion payment in the bank loans. Net cash inflow in 2Q21 was NT$16.72 billion. Over the next 12 months, the company expects to repay NT$8.06 billion in bank loans.
Current Assets
(Amount: NT$ billion)
2Q21
1Q21
2Q20
Cash and Cash Equivalents
124.00
107.29
99.87
Notes & Accounts Receivable
30.11
29.24
27.26
Days Sales Outstanding
53
55
57
Inventories, net
22.44
22.23
23.34
Days of Inventory
58
59
61
Total Current Assets
207.83
179.08
167.96
Cash and cash equivalents increased to NT$124.00 billion. Days of inventory decreased by a day to 58 days.
Liabilities
(Amount: NT$ billion)
2Q21
1Q21
2Q20
Total Current Liabilities
85.00
78.53
65.11
Notes & Accounts Payable
8.42
8.26
8.56
Short-Term Credit / Bonds
19.65
37.28
17.32
Payables on Equipment
6.67
5.29
3.22
Dividends Payable
19.88
–
9.77
Other
30.38
27.70
26.24
Long-Term Credit / Bonds
50.97
27.70
53.50
Long-Term Investment Liabilities
20.61
20.66
19.69
Total Liabilities
181.49
144.59
158.34
Debt to Equity
76%
58%
76%
Current liabilities increased to NT$85.00 billion, which included a NT$19.88 billion in dividends payable. Long-term credit/bonds increased to NT$50.97 billion. Total liabilities increased to NT$181.49 billion, leading to a debt to equity ratio of 76%.
Analysis of Revenue2
Revenue Breakdown by Region
Region
2Q21
1Q21
4Q20
3Q20
2Q20
North America
22%
23%
29%
30%
31%
Asia Pacific
63%
63%
61%
57%
55%
Europe
8%
8%
5%
6%
5%
Japan
7%
6%
5%
7%
9%
Revenue from Asia-Pacific remained unchanged at 63% as business from North America declined to 22% of sales. Business from Europe was 8% while contribution from Japan increased to 7%.
Revenue Breakdown by Geometry
Geometry
2Q21
1Q21
4Q20
3Q20
2Q20
14nm and below
0%
0%
0%
0%
0%
14nm<x<=28nm
20%
20%
18%
14%
13%
28nm<x<=40nm
18%
20%
22%
23%
23%
40nm<x<=65nm
19%
18%
18%
19%
16%
65nm<x<=90nm
9%
8%
8%
10%
13%
90nm<x<=0.13um
11%
11%
11%
11%
11%
0.13um<x<=0.18um
13%
13%
13%
13%
13%
0.18um<x<=0.35um
8%
8%
8%
8%
8%
0.5um and above
2%
2%
2%
2%
3%
Revenue contribution from 22/28nm stayed at 20% of the wafer revenue, while 40nm contribution declined to 18% of sales.
Revenue Breakdown by Customer Type
Customer Type
2Q21
1Q21
4Q20
3Q20
2Q20
Fabless
84%
86%
87%
88%
88%
IDM
16%
14%
13%
12%
12%
Revenue from fabless customers decreased to 84% of revenue.
Revenue Breakdown by Application (1)
Application
2Q21
1Q21
4Q20
3Q20
2Q20
Computer
17%
16%
16%
13%
14%
Communication
47%
46%
49%
54%
51%
Consumer
26%
27%
25%
24%
24%
Others
10%
11%
10%
9%
11%
Revenue from the communication segment increased to 47%, while business from computer applications increased to 17%. Business from consumer applications declined to 26% as other segments accounted for 10% of revenue.
(1) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec, keyboard controller, monitor scaler, USB, I/O chipset, WLAN. Communication consists of handset components, broadband, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart cards, toys, etc.
Blended ASP Trend
Blended average selling price (ASP) grew in 2Q21.
(To view blended ASP trend, please click here for 2Q21 ASP)
Shipment and Utilization Rate3
Wafer Shipments
2Q21
1Q21
4Q20
3Q20
2Q20
Wafer Shipments
(8″ K equivalents)
2,440
2,372
2,293
2,254
2,218
Quarterly Capacity Utilization Rate
2Q21
1Q21
4Q20
3Q20
2Q20
Utilization Rate
100%+
100%
99%
97%
98%
Total Capacity
(8″ K equivalents)
2,370
2,280
2,311
2,308
2,291
In 2Q21, wafer shipments increased 2.9% QoQ to 2,440K, while quarterly capacity grew to 2,370K. Overall utilization rate in 2Q21 exceeded 100%.
Capacity4
Total capacity in the second quarter expanded by 4% QoQ to 2,370K 8-inch equivalent wafers. Capacity is expected to slightly increase in the third quarter to 2,387K 8-inch equivalent wafers, mainly reflecting the capacity expansion at Fab 8F.
Annual Capacity in
thousands of wafers
Quarterly Capacity in
thousands of wafers
FAB
Geometry
(um)
2020
2019
2018
2017
FAB
3Q21E
2Q21
1Q21
4Q20
WTK
6″
3.5 – 0.45
371
370
396
422
WTK
86
84
84
93
8A
8″
0.5 – 0.25
802
825
825
825
8A
190
190
186
201
8C
8″
0.35 – 0.11
452
436
383
357
8C
115
115
113
113
8D
8″
0.18 – 0.09
371
359
347
341
8D
95
95
94
93
8E
8″
0.5 – 0.15
449
426
418
418
8E
115
115
113
113
8F
8″
0.18 – 0.11
485
434
431
417
8F
137
122
120
122
8S
8″
0.18 – 0.11
373
372
372
347
8S
102
102
101
93
8N
8″
0.5 – 0.11
917
831
771
753
8N
230
230
226
230
12A
12″
0.13 – 0.014
1044
997
997
970
12A
271
271
257
261
12i
12″
0.13 – 0.040
628
595
555
537
12i
160
160
157
160
12X
12″
0.040 – 0.028
217
203
183
97
12X
74
74
59
57
12M
12″
0.090 – 0.040
391
98
–
–
12M
98
98
96
98
Total(1)
9,188
8,148
7,673
7,304
Total
2,387
2,370
2,280
2,311
YoY Growth Rate
13%
6%
5%
5%
(1) One 6-inch wafer is converted into 0.5625 (62/82) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25 (122/82) 8-inch equivalent wafers. Total capacity figures are expressed in 8-inch equivalent wafers.
CAPEX
Capital Expenditure by Year – in US$ billion
Year
2020
2019
2018
2017
2016
CAPEX
$ 1.0
$ 0.6
$ 0.7
$ 1.4
$ 2.8
2021 CAPEX Plan
8″
12″
Total
15%
85%
US$2.3 billion
CAPEX spending in 2Q21 was US$339 million. Full year 2021 CAPEX is budgeted at US$2.3 billion, which includes the company’s collaborative Fab 12A P6 expansion plan with customers.
Third Quarter 2021 Outlook & Guidance
Quarter-over-Quarter Guidance:
Wafer Shipments: To increase by 1-2%
ASP in USD: To increase by approximately 6%
Gross Profit Margin: To be in the mid-30% range
Capacity Utilization: 100%
2021 CAPEX: US$2.3 billion
Recent Developments / Announcements
Please visit UMC’s website for further details regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, July 28, 2021
Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM (London)
Dial-in numbers and Access Codes:
USA Toll Free:
1-866 836-0101
Taiwan Number:
02-2192-8016
Other Areas:
+886-2-2192-8016
Access Code:
UMC
A live webcast and replay of the 2Q21 results announcement will be available at
www.umc.com under the “Investors / Events” section.
About UMC
UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry. The company provides high quality IC production with a focus on both logic and specialty technologies to serve every major sector of the electronics industry. UMC’s comprehensive technology and manufacturing solutions include logic/RF, embedded high voltage, embedded flash, RFSOI/BCD and IATF-16949 automotive manufacturing certification for all its manufacturing facilities. UMC operates 12 fabs that are strategically located throughout Asia with a maximum capacity of approximately 800,000 8-inch equivalent wafers per month. The company employs approximately 19,500 people worldwide, with offices in Taiwan, China, United States, Europe, Japan, Korea and Singapore. For more information, please visit: http://www.umc.com.
Safe Harbor Statements
This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding anticipated financial results for the second quarter of 2021; the expected wafer shipment and ASP; the anticipated annual budget; capex strategies; environmental protection goals and water management strategies; impact of foreign currency exchange rates; expected foundry capacities; the ability to obtain new business opportunities; and information under the heading “Second Quarter of 2021 Outlook and Guidance.”
These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) dependence upon the frequent introduction of new services and technologies based on the latest developments in the industry in which UMC operates; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international business activities; (iv) dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including natural disasters, terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risk factors is included in UMC’s filings with the United States Securities and Exchange Commission, including its Annual Report on Form 20-F. All information provided in this release is as of the date of this release and are based on assumptions that UMC believes to be reasonable as of this date, and UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
The financial statements included in this release are prepared and published in accordance with Taiwan International Financial Reporting Standards, or TIFRSs, recognized by the Financial Supervisory Commission in the ROC, which is different from International Financial Reporting Standards, or IFRSs, issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from generally accepted accounting principles in the ROC and generally accepted accounting principles in the United States.
– FINANCIAL TABLES TO FOLLOW –
Consolidated Condensed Balance Sheet
As of June 30, 2021
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
June 30, 2021
US$
NT$
%
Assets
Current assets
Cash and cash equivalents
4,451
124,000
29.4%
Accounts receivable, net
1,081
30,113
7.2%
Inventories, net
805
22,439
5.3%
Other current assets
1,123
31,281
7.4%
Total current assets
7,460
207,833
49.3%
Non-current assets
Funds and investments
2,389
66,570
15.8%
Property, plant and equipment
4,450
123,983
29.4%
Right-of-use assets
266
7,413
1.8%
Other non-current assets
571
15,878
3.7%
Total non-current assets
7,676
213,844
50.7%
Total assets
15,136
421,677
100.0%
Liabilities
Current liabilities
Short-term loans
193
5,386
1.3%
Payables
1,319
36,753
8.7%
Dividends payable
713
19,876
4.7%
Current portion of long-term liabilities
512
14,263
3.4%
Other current liabilities
314
8,726
2.0%
Total current liabilities
3,051
85,004
20.1%
Non-current liabilities
Bonds payable
721
20,082
4.8%
Long-term loans
1,109
30,885
7.3%
Lease liabilities, noncurrent
171
4,771
1.1%
Other non-current liabilities
1,462
40,743
9.7%
Total non-current liabilities
3,463
96,481
22.9%
Total liabilities
6,514
181,485
43.0%
Equity
Equity attributable to the parent company
Capital
4,459
124,233
29.5%
Additional paid-in capital
1,550
43,182
10.2%
Retained earnings and other components of equity
2,613
72,791
17.3%
Treasury stock
(4)
(120)
(0.0%)
Total equity attributable to the parent company
8,618
240,086
57.0%
Non-controlling interests
4
106
0.0%
Total equity
8,622
240,192
57.0%
Total liabilities and equity
15,136
421,677
100.0%
Note:New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2021 exchange rate of NT $27.86 per U.S. Dollar.
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Year over Year Comparison
Quarter over Quarter Comparison
Three-Month Period Ended
Three-Month Period Ended
June 30, 2021
June 30, 2020
Chg.
June 30, 2021
March 31, 2021
Chg.
US$
NT$
US$
NT$
%
US$
NT$
US$
NT$
%
Operating revenues
1,827
50,908
1,593
44,386
14.7%
1,827
50,908
1,690
47,097
8.1%
Operating costs
(1,256)
(35,000)
(1,225)
(34,129)
2.6%
(1,256)
(35,000)
(1,242)
(34,603)
1.1%
Gross profit
571
15,908
368
10,257
55.1%
571
15,908
448
12,494
27.3%
31.3%
31.3%
23.1%
23.1%
31.3%
31.3%
26.5%
26.5%
Operating expenses
– Sales and marketing expenses
(41)
(1,131)
(33)
(929)
21.8%
(41)
(1,131)
(39)
(1,089)
3.8%
– General and administrative expenses
(68)
(1,901)
(56)
(1,537)
23.5%
(68)
(1,901)
(64)
(1,806)
5.2%
– Research and development expenses
(114)
(3,168)
(115)
(3,203)
(1.1%)
(114)
(3,168)
(109)
(3,049)
3.9%
– Expected credit impairment gain (loss)
(0)
(1)
(0)
(8)
(81.3%)
(0)
(1)
0
12
–
Subtotal
(223)
(6,201)
(204)
(5,677)
9.2%
(223)
(6,201)
(212)
(5,932)
4.5%
Net other operating income and expenses
58
1,606
46
1,266
26.9%
58
1,606
38
1,060
51.6%
Operating income
406
11,313
210
5,846
93.5%
406
11,313
274
7,622
48.4%
22.2%
22.2%
13.2%
13.2%
22.2%
22.2%
16.2%
16.2%
Net non-operating income and expenses
68
1,881
29
818
129.9%
68
1,881
120
3,361
(44.0%)
Income from continuing operations
before income tax
474
13,194
239
6,664
98.0%
474
13,194
394
10,983
20.1%
25.9%
25.9%
15.0%
15.0%
25.9%
25.9%
23.3%
23.3%
Income tax expenses
(48)
(1,327)
(22)
(613)
116.6%
(48)
(1,327)
(39)
(1,094)
21.3%
Net income
426
11,867
217
6,051
96.1%
426
11,867
355
9,889
20.0%
23.3%
23.3%
13.6%
13.6%
23.3%
23.3%
21.0%
21.0%
Other comprehensive income (loss)
(70)
(1,935)
114
3,178
–
(70)
(1,935)
128
3,556
–
Total comprehensive income (loss)
356
9,932
331
9,229
7.6%
356
9,932
483
13,445
(26.1%)
Net income attributable to:
Shareholders of the parent
429
11,943
240
6,681
78.8%
429
11,943
374
10,428
14.5%
Non-controlling interests
(3)
(76)
(23)
(630)
(87.9%)
(3)
(76)
(19)
(539)
(85.8%)
Comprehensive income (loss) attributable to:
Shareholders of the parent
359
10,008
354
9,859
1.5%
359
10,008
502
13,984
(28.4%)
Non-controlling interests
(3)
(76)
(23)
(630)
(87.9%)
(3)
(76)
(19)
(539)
(85.8%)
Earnings per share-basic
0.035
0.98
0.020
0.55
0.035
0.98
0.031
0.85
Earnings per ADS (2)
0.176
4.90
0.099
2.75
0.176
4.90
0.153
4.25
Weighted average number of shares
outstanding (in millions)
12,206
12,193
12,206
12,206
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2021 exchange rate of NT $27.86 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
For the Three-Month Period Ended
For the Six-Month Period Ended
June 30, 2021
June 30, 2021
US$
NT$
%
US$
NT$
%
Operating revenues
1,827
50,908
100.0%
3,518
98,005
100.0%
Operating costs
(1,256)
(35,000)
(68.7%)
(2,499)
(69,603)
(71.0%)
Gross profit
571
15,908
31.3%
1,019
28,402
29.0%
Operating expenses
– Sales and marketing expenses
(41)
(1,131)
(2.2%)
(80)
(2,220)
(2.3%)
– General and administrative expenses
(68)
(1,901)
(3.8%)
(132)
(3,707)
(3.8%)
– Research and development expenses
(114)
(3,168)
(6.2%)
(223)
(6,217)
(6.3%)
– Expected credit impairment gain (loss)
(0)
(1)
(0.0%)
0
11
0.0%
Subtotal
(223)
(6,201)
(12.2%)
(435)
(12,133)
(12.4%)
Net other operating income and expenses
58
1,606
3.1%
96
2,666
2.7%
Operating income
406
11,313
22.2%
680
18,935
19.3%
Net non-operating income and expenses
68
1,881
3.7%
188
5,242
5.4%
Income from continuing operations
before income tax
474
13,194
25.9%
868
24,177
24.7%
Income tax expense
(48)
(1,327)
(2.6%)
(87)
(2,422)
(2.5%)
Net income
426
11,867
23.3%
781
21,755
22.2%
Other comprehensive income (loss)
(70)
(1,935)
(3.8%)
58
1,622
1.7%
Total comprehensive income (loss)
356
9,932
19.5%
839
23,377
23.9%
Net income attributable to:
Shareholders of the parent
429
11,943
23.5%
803
22,371
22.8%
Non-controlling interests
(3)
(76)
(0.2%)
(22)
(616)
(0.6%)
Comprehensive income (loss) attributable to:
Shareholders of the parent
359
10,008
19.7%
861
23,992
24.5%
Non-controlling interests
(3)
(76)
(0.2%)
(22)
(615)
(0.6%)
Earnings per share-basic
0.035
0.98
0.066
1.83
Earnings per ADS (2)
0.176
4.90
0.328
9.15
Weighted average number of shares
outstanding (in millions)
12,206
12,206
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2021 exchange rate of NT $27.86 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.
Consolidated Condensed Statement of Cash Flows
For The Six-Month Period Ended June 30, 2021
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
US$
NT$
Cash flows from operating activities :
Net income before tax
868
24,177
Depreciation & Amortization
844
23,504
Share of profit of associates and joint ventures
(95)
(2,648)
Changes in working capital & others
(131)
(3,629)
Net cash provided by operating activities
1,486
41,404
Cash flows from investing activities :
Acquisition of property, plant and equipment
(570)
(15,872)
Acquisition of intangible assets
(52)
(1,454)
Increase in other financial assets
(391)
(10,901)
Others
94
2,625
Net cash used in investing activities
(919)
(25,602)
Cash flows from financing activities :
Decrease in short-term loans
(198)
(5,509)
Proceeds from bonds issued
345
9,600
Redemption of bonds
(72)
(2,000)
Proceeds from long-term loans
500
13,943
Repayments of long-term loans
(267)
(7,450)
Increase in guarantee deposits
272
7,587
Others
(12)
(353)
Net cash provided by financing activities
568
15,818
Effect of exchange rate changes on cash and cash equivalents
(60)
(1,668)
Net increase in cash and cash equivalents
1,075
29,952
Cash and cash equivalents at beginning of period
3,376
94,048
Cash and cash equivalents at end of period
4,451
124,000
Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2021 exchange rate of NT $27.86 per U.S. Dollar.
1Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending June 30, 2021, the three-month period ending March 31, 2021, and the equivalent three-month period that ended June 30, 2020. For all 2Q21 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the June 30, 2021 exchange rate of NT$ 27.86 per U.S. Dollar.
2 Revenue in this section represents wafer sales
3 Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
4 Estimated capacity numbers are based on calculated maximum output rather than designed capacity. The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp-up.