UNITED MICROELECTRONICS : AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS WITH REPORT OF INDEPENDENT AUDITORS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2021 AND 2020 (Form 6-K)

UNITED MICROELECTRONICS CORPORATION

AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

WITH REPORT OF INDEPENDENT AUDITORS

FOR THE SIX-MONTH PERIODS ENDED

JUNE 30, 2021 AND 2020

Address:

No. 3 Li-Hsin Road II, Hsinchu Science Park, Hsinchu City, Taiwan, R.O.C.

Telephone: [phone]

The reader is advised that these consolidated financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese language financial statements shall prevail.

1

Review Report of Independent Auditors

To United Microelectronics Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of United Microelectronics Corporation and its subsidiaries (collectively, the 'Company') as of June 30, 2021 and 2020, the related consolidated statements of comprehensive income for the three-month and six-month periods ended June 30, 2021 and 2020 and consolidated statements of changes in equity and cash flows for the six-month periods ended June 30, 2021 and 2020, and notes to the consolidated financial statements, including the summary of significant accounting policies (together 'the consolidated financial statements'). Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34,'Interim Financial Reporting' as endorsed and became effective by Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with Statement of Auditing Standards No. 65, 'Review of Financial Information Performed by the Independent Auditor of the Entity' of the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards generally accepted in the Republic of China and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our reviews and the review reports of other independent auditors (please refer to the Other Matter paragraph of our report), nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Company as of June 30, 2021 and 2020, and its consolidated financial performance for the three-month and six-month periods ended June 30, 2021 and 2020, and its consolidated cash flows for the six-month periods ended June 30, 2021 and 2020, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34,'Interim Financial Reporting' as endorsed and became effective by Financial Supervisory Commission of the Republic of China.

2

Other Matter - Making Reference to the Reviews of Other Independent Auditors

We did not review the financial statement of certain associates and joint ventures accounted for under the equity method. Our review, insofar as it related to the investments accounted for under the equity method balances of NT$32,648 million and NT$20,008 million, which represented 7.74% and 5.44% of the total consolidated assets as of June 30, 2021 and 2020, respectively, the related shares of profit or loss from the associates and joint ventures in the amount of NT$880 million, NT$889 million, NT$2,591 million and NT$63 million, which represented 6.67%, 13.34%, 10.72%, and 0.84% of the consolidated income from continuing operations before income tax for the three-month and six-month periods ended June 30, 2021 and 2020, respectively, and the related shares of other comprehensive income (loss) from the associates and joint ventures in the amount of NT$678 million, NT$529 million, NT$1,530 million and NT$(41) million, which represented 6.83%, 5.73%, 6.55%, and (0.60)% of the consolidated total comprehensive income (loss) for the three-month and six-month periods ended June 30, 2021 and 2020, respectively, are based solely on the reports of other independent auditors.

/s/ Chiu, Wan-Ju

/s/ Hsu, Hsin-Min

Ernst & Young, Taiwan

July 28, 2021

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally accepted and applied in the Republic of China.

Accordingly, the accompanying consolidated financial statements and report of independent auditors are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

3

English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, 2021, December 31, 2020 and June 30, 2020 (June 30, 2021 and 2020 are unaudited)
(Expressed in Thousands of New Taiwan Dollars)
				As of
Assets		Notes		June 30, 2021		December 31, 2020		June 30, 2020
Current assets
Cash and cash equivalents		6(1)		$124,000,482		$ 94,048,036		$ 99,871,617
Financial assets at fair value through profit or loss, current		6(2)		1,021,168		1,216,634		1,013,842
Contract assets, current		6(20)		258,583		257,841		290,671
Accounts receivable, net		6(3)		29,795,387		27,094,355		27,003,518
Accounts receivable-related parties, net		7		318,038		178,918		256,524
Other receivables				1,237,349		1,668,874		838,591
Current tax assets				12,160		37,598		15,390
Inventories, net		6(4)		22,438,972		22,552,486		23,342,040
Prepayments				2,914,638		2,324,838		3,491,317
Non-current assets held for sale				-		-		601,895
Other current assets		6(7), 6(20)		25,836,548		14,926,331		11,229,123
Total current assets				207,833,325		164,305,911		167,954,528
Non-current assets
Financial assets at fair value through profit or loss, noncurrent		6(2), 7		17,452,278		14,826,087		12,883,830
Financial assets at fair value through other comprehensive income, noncurrent		6(5)		14,318,527		10,526,144		7,075,163
Investments accounted for under the equity method		6(6)		34,783,316		31,225,677		21,975,457
Property, plant and equipment		6(8), 8		123,982,562		132,774,663		131,816,688
Right-of-use assets		6(9), 8		7,413,330		7,748,042		8,116,619
Intangible assets		6(10), 7		4,658,255		4,877,913		4,840,392
Deferred tax assets				5,886,359		6,832,711		7,236,346
Prepayment for equipment				2,757,284		586,333		1,283,533
Refundable deposits		8		2,265,239		2,310,961		2,414,271
Other noncurrent assets-others				326,919		1,501,933		1,946,939
Total non-current assets				213,844,069		213,210,464		199,589,238
Total assets				$421,677,394		$377,516,375		$367,543,766
(continued)

4

English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, 2021, December 31, 2020 and June 30, 2020 (June 30, 2021 and 2020 are unaudited)
(Expressed in Thousands of New Taiwan Dollars)
				As of
Liabilities and Equity		Notes		June 30, 2021		December 31, 2020		June 30, 2020
Current liabilities
Short-term loans		6(11), 6(27)		$5,386,301		$11,057,132		$9,611,795
Financial liabilities at fair value through profit or loss, current		6(12)		2,067		2,326		771
Contract liabilities, current		6(20)		2,883,910		2,040,989		1,643,915
Notes and accounts payable				8,420,709		7,862,137		8,556,346
Other payables		7		19,490,596		17,877,736		17,100,639
Payables on equipment				6,669,466		5,448,921		3,215,802
Dividends payable		6(18)		19,875,842		-		9,765,155
Current tax liabilities				2,172,539		1,050,965		890,042
Lease liabilities, current		6(9), 6(27)		553,599		550,147		569,874
Current portion of long-term liabilities		6(13), 6(14), 6(27)		14,263,379		26,985,078		7,711,794
Other current liabilities		6(16), 6(17), 6(27), 7		5,286,095		5,368,095		6,041,963
Total current liabilities				85,004,503		78,243,526		65,108,096
Non-current liabilities
Contract liabilities, noncurrent		6(20)		446,560		456,480		474,880
Bonds payable		6(13), 6(27)		20,081,952		16,690,474		16,689,185
Long-term loans		6(14), 6(27)		30,884,834		8,080,938		36,806,693
Deferred tax liabilities				1,644,805		1,631,459		2,016,205
Lease liabilities, noncurrent		6(9), 6(27)		4,770,712		5,026,717		5,381,737
Net defined benefit liabilities, noncurrent		6(15)		3,716,914		4,162,654		3,998,181
Guarantee deposits		6(27)		7,748,047		235,199		113,715
Other noncurrent liabilities-others		6(16), 6(27), 9(6)		27,186,940		27,215,826		27,752,663
Total non-current liabilities				96,480,764		63,499,747		93,233,259
Total liabilities				181,485,267		141,743,273		158,341,355
Equity attributable to the parent company
Capital		6(18)
Common stock				124,232,695		124,224,015		122,223,715
Additional paid-in capital		6(18), 6(19)
Premiums				36,809,962		36,809,962		36,809,962
Treasury stock transactions				3,340,664		3,340,664		2,746,402
The differences between the fair value of the consideration paid or received from acquiring or disposing subsidiaries and the carrying amounts of the subsidiaries				466,457		466,457		466,457
Recognition of changes in subsidiaries' ownership				6,077		-		1,089
Share of changes in net assets of associates and joint ventures accounted for using equity method				85,738		93,880		84,929
Employee stock options				235,576		88,504		289,641
Restricted stock for employees				2,226,830		2,170,666		-
Other				10,869		241,081		429,477
Retained earnings		6(18)
Legal reserve				15,734,416		12,536,526		12,536,526
Special reserve				8,164,648		11,022,314		11,022,314
Unappropriated earnings				58,464,798		56,617,520		37,347,592
Other components of equity		6(19)
Exchange differences on translation of foreign operations				(15,600,378)		(11,890,876)		(10,991,573)
Unrealized gains or losses on financial assets measured at fair value through other comprehensive income				9,011,103		3,726,229		(2,519,161)
Unearned employee compensation				(2,983,727)		(3,667,395)		-
Treasury stock		6(18), 6(19)		(119,801)		(119,801)		(1,320,413)
Total equity attributable to the parent company				240,085,927		235,659,746		209,126,957
Non-controlling interests		6(18)		106,200		113,356		75,454
Total equity				240,192,127		235,773,102		209,202,411
Total liabilities and equity				$421,677,394		$377,516,375		$367,543,766
The accompanying notes are an integral part of the consolidated financial statements.

5

English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the three-month and six-month periods ended June 30, 2021 and 2020
(Expressed in Thousands of New Taiwan Dollars, Except for Earnings per Share)
			For the three-month periods ended June 30,		For the six-month periods ended June 30,
	Notes		2021		2020		2021		2020
Operating revenues	6(20), 7		$ 50,907,741		$ 44,386,260		$ 98,004,753		$ 86,654,107
Operating costs	6(4), 6(10), 6(15), 6(19), 6(20), 6(21), 7		(34,999,769)		(34,128,791)		(69,602,479)		(68,274,367)
Gross profit			15,907,972		10,257,469		28,402,274		18,379,740
Operating expenses	6(3), 6(10), 6(15), 6(19), 6(21), 7
Sales and marketing expenses			(1,130,719)		(928,531)		(2,220,116)		(1,968,307)
General and administrative expenses			(1,900,665)		(1,538,899)		(3,706,931)		(3,082,464)
Research and development expenses			(3,168,316)		(3,202,675)		(6,217,308)		(6,387,543)
Expected credit impairment gains (losses)			(1,410)		(7,549)		11,042		38,726
Subtotal			(6,201,110)		(5,677,654)		(12,133,313)		(11,399,588)
Net other operating income and expenses	6(16), 6(22)		1,606,236		1,265,901		2,665,884		2,279,585
Operating income			11,313,098		5,845,716		18,934,845		9,259,737
Non-operating income and expenses
Interest income			153,184		215,012		269,627		465,630
Other income			573,188		153,884		587,294		157,986
Other gains and losses	6(23)		836,496		480,765		2,613,493		(737,360)
Finance costs	6(23)		(478,989)		(535,082)		(885,238)		(1,168,981)
Share of profit or loss of associates and joint ventures	6(6)		881,483		914,379		2,648,052		67,373
Exchange gain, net			-		-		9,367		-
Exchange loss, net			(84,089)		(410,657)		-		(558,492)
Subtotal			1,881,273		818,301		5,242,595		(1,773,844)
Income from continuing operations before income tax			13,194,371		6,664,017		24,177,440		7,485,893
Income tax expense	6(25)		(1,327,770)		(612,999)		(2,421,941)		(204,570)
Net income			11,866,601		6,051,018		21,755,499		7,281,323
Other comprehensive income (loss)	6(24)
Items that will not be reclassified subsequently to profit or loss
Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income			(384,002)		4,470,138		3,792,383		1,364,381
Share of other comprehensive income (loss) of associates and joint ventures which will not be reclassified subsequently to profit or loss			723,178		547,790		1,598,917		(41,099)
Income tax related to items that will not be reclassified subsequently	6(25)		(27,393)		14,299		(60,695)		56,899
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations			(2,232,217)		(1,857,385)		(3,688,455)		(1,917,606)
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss			(35,248)		(13,152)		(40,824)		(12,173)
Income tax related to items that may be reclassified subsequently	6(25)		20,778		16,179		19,760		13,200
Total other comprehensive income (loss)			(1,934,904)		3,177,869		1,621,086		(536,398)
Total comprehensive income (loss)			$9,931,697		$9,228,887		$ 23,376,585		$6,744,925
Net income (loss) attributable to:
Shareholders of the parent			$ 11,943,075		$6,680,784		$ 22,370,990		$8,887,714
Non-controlling interests			(76,474)		(629,766)		(615,491)		(1,606,391)
			$ 11,866,601		$6,051,018		$ 21,755,499		$7,281,323
Comprehensive income (loss) attributable to:
Shareholders of the parent			$ 10,008,186		$9,858,669		$ 23,992,093		$8,224,659
Non-controlling interests			(76,489)		(629,782)		(615,508)		(1,479,734)
			$9,931,697		$9,228,887		$ 23,376,585		$6,744,925
Earnings per share (NTD)	6(26)
Earnings per share-basic			$0.98		$0.55		$1.83		$0.74
Earnings per share-diluted			$0.96		$0.54		$1.80		$0.71
The accompanying notes are an integral part of the consolidated financial statements.

6

English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the six-month periods ended June 30, 2021 and 2020
(Expressed in Thousands of New Taiwan Dollars)
				Equity Attributable to the Parent Company
				Capital				Retained Earnings		Other Components of Equity
		Notes		Common Stock		Collected in Advance		Additional Paid-in Capital		Legal Reserve		Special Reserve		Unappropriated Earnings		Exchange Differences on Translation of Foreign Operations		Unrealized Gains or Losses on Financial Assets Measured at Fair Value through Other Comprehensive Income		Unearned Employee Compensation		Treasury Stock		Total		Non- Controlling Interests		Total Equity
Balance as of January 1, 2020		6(18)		$ 117,243,187		$332,611		$ 39,550,394		$ 11,572,579		$ 14,513,940		$ 34,733,761		$ (8,948,337)		$ (2,073,977)		$ -		$ (119,801)		$ 206,804,357		$410,065		$ 207,214,422
Appropriation and distribution of 2019 retained earnings		6(18)
Legal reserve				-		-		-		963,947		-		(963,947)		-		-		-		-		-		-		-
Cash dividends				-		-		-		-		-		(9,765,155)		-		-		-		-		(9,765,155)		-		(9,765,155)
Special reserve reversed				-		-		-		-		(3,491,626)		3,491,626		-		-		-		-		-		-		-
Net income (loss) in the first half of 2020		6(18)		-		-		-		-		-		8,887,714		-		-		-		-		8,887,714		(1,606,391)		7,281,323
Other comprehensive income (loss) in the first half of 2020		6(18), 6(24)		-		-		-		-		-		-		(2,043,236)		1,380,181		-		-		(663,055)		126,657		(536,398)
Total comprehensive income (loss)				-		-		-		-		-		8,887,714		(2,043,236)		1,380,181		-		-		8,224,659		(1,479,734)		6,744,925
Share-based payment transaction		6(19)		-		-		77,198		-		-		-		-		-		-		-		77,198		-		77,198
Conversion of convertible bonds		6(13), 6(18)		4,980,528		(332,611)		1,862,366		-		-		-		-		-		-		-		6,510,283		-		6,510,283
Treasury stock acquired		6(18)		-		-		-		-		-		-		-		-		-		(1,200,612)		(1,200,612)		-		(1,200,612)
Share of changes in net assets of associates and joint ventures accounted for using equity method				-		-		(38,339)		-		-		-		-		-		-		-		(38,339)		-		(38,339)
The differences between the fair value of the consideration paid or received from acquiring or disposing subsidiaries and the carrying amounts of the subsidiaries		6(18)		-		-		(106,879)		-		-		-		-		-		-		-		(106,879)		106,879		-
Changes in subsidiaries' ownership		6(18)		-		-		(129)		-		-		-		-		-		-		-		(129)		(31)		(160)
Disposal of equity instruments investments measured at fair value through other comprehensive income		6(5)		-		-		-		-		-		1,825,365		-		(1,825,365)		-		-		-		-		-
Non-Controlling Interests		6(18)		-		-		-		-		-		-		-		-		-		-		-		(570,188)		(570,188)
Others		6(18)		-		-		(516,654)		-		-		(861,772)		-		-		-		-		(1,378,426)		1,608,463		230,037
Balance as of June 30, 2020		6(18)		$ 122,223,715		$ -		$ 40,827,957		$ 12,536,526		$ 11,022,314		$ 37,347,592		$ (10,991,573)		$ (2,519,161)		$ -		$ (1,320,413)		$ 209,126,957		$ 75,454		$ 209,202,411
Balance as of January 1, 2021		6(18)		$ 124,224,015		$ -		$ 43,211,214		$ 12,536,526		$ 11,022,314		$ 56,617,520		$ (11,890,876)		$3,726,229		$ (3,667,395)		$ (119,801)		$ 235,659,746		$113,356		$ 235,773,102
Appropriation and distribution of 2020 retained earnings		6(18)
Legal reserve				-		-		-		3,197,890		-		(3,197,890)		-		-		-		-		-		-		-
Cash dividends				-		-		-		-		-		(19,875,842)		-		-		-		-		(19,875,842)		-		(19,875,842)
Special reserve reversed				-		-		-		-		(2,857,666)		2,857,666		-		-		-		-		-		-		-
Net income (loss) in the first half of 2021		6(18)		-		-		-		-		-		22,370,990		-		-		-		-		22,370,990		(615,491)		21,755,499
Other comprehensive income (loss) in the first half of 2021		6(18), 6(24)		-		-		-		-		-		-		(3,709,502)		5,330,605		-		-		1,621,103		(17)		1,621,086
Total comprehensive income (loss)				-		-		-		-		-		22,370,990		(3,709,502)		5,330,605		-		-		23,992,093		(615,508)		23,376,585
Share-based payment transaction		6(19)		8,680		-		203,236		-		-		-		-		-		683,668		-		895,584		-		895,584
Share of changes in net assets of associates and joint ventures accounted for using equity method				-		-		(8,142)		-		-		45,731		-		(45,731)		-		-		(8,142)		-		(8,142)
Changes in subsidiaries' ownership		6(18)		-		-		6,077		-		-		-		-		-		-		-		6,077		(6,074)		3
Non-Controlling Interests		6(18)		-		-		-		-		-		-		-		-		-		-		-		10,442		10,442
Others		6(18)		-		-		(230,212)		-		-		(353,377)		-		-		-		-		(583,589)		603,984		20,395
Balance as of June 30, 2021		6(18)		$ 124,232,695		$ -		$ 43,182,173		$ 15,734,416		$8,164,648		$ 58,464,798		$ (15,600,378)		$9,011,103		$ (2,983,727)		$ (119,801)		$ 240,085,927		$106,200		$ 240,192,127
The accompanying notes are an integral part of the consolidated financial statements.

7

English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the six-month periods ended June 30, 2021 and 2020
(Expressed in Thousands of New Taiwan Dollars)
		For the six-month periods ended June 30,
		2021		2020
Cash flows from operating activities:
Net income before tax		$24,177,440		$7,485,893
Adjustments to reconcile net income before tax to net cash provided by operating activities:
Depreciation		22,097,938		23,418,290
Amortization		1,406,214		1,327,192
Expected credit impairment gains		(11,042)		(38,726)
Net loss (gain) of financial assets and liabilities at fair value through profit or loss		(2,581,357)		512,692
Interest expense		851,568		1,140,213
Interest income		(269,627)		(465,630)
Dividend income		(587,294)		(157,986)
Share-based payment		895,619		75,186
Share of profit of associates and joint ventures		(2,648,052)		(67,373)
Gain on disposal of property, plant and equipment		(24,548)		(13,504)
Loss on disposal of investments		10,977		43,429
Exchange loss (gain) on financial assets and liabilities		(209,018)		318,244
Amortization of deferred government grants		(1,998,423)		(2,015,342)
Income and expense adjustments		16,932,955		24,076,685
Changes in operating assets and liabilities:
Financial assets and liabilities at fair value through profit or loss		307,355		134,112
Contract assets		(14,334)		(78,679)
Notes receivable and accounts receivable		(3,329,328)		(1,704,949)
Other receivables		86,526		(57,024)
Inventories		(211,675)		(1,800,830)
Prepayments		592,543		1,382,130
Other current assets		1,550		-
Contract fulfillment costs		(275,432)		(380,771)
Contract liabilities		888,145		673,933
Notes and accounts payable		706,246		(252,048)
Other payables		2,107,775		1,877,882
Other current liabilities		(410,986)		(173,979)
Net defined benefit liabilities		(445,740)		(27,192)
Other noncurrent liabilities-others		97,754		-
Cash generated from operations		41,210,794		31,155,163
Interest received		261,000		419,345
Dividend received		1,118,068		218,152
Interest paid		(835,208)		(1,011,563)
Income tax refunded (paid)		(350,465)		353,710
Net cash provided by operating activities		41,404,189		31,134,807
(continued)

8

English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the six-month periods ended June 30, 2021 and 2020
(Expressed in Thousands of New Taiwan Dollars)
		For the six-month periods ended June 30,
		2021		2020
Cash flows from investing activities:
Acquisition of financial assets at fair value through profit or loss		$(423,347)		$(540,785)
Proceeds from disposal of financial assets at fair value through profit or loss		174,553		206,157
Acquisition of investments accounted for under the equity method		-		(59,900)
Proceeds from disposal of investments accounted for under the equity method		-		30,609
Increase in prepayment for investments		(15,782)		(4,069)
Proceeds from capital reduction and liquidation of investments		394,943		-
Disposal of subsidiary		(10,190)		-
Acquisition of property, plant and equipment		(15,871,541)		(7,900,682)
Proceeds from disposal of property, plant and equipment		65,818		37,559
Increase in refundable deposits		(64,425)		(22,264)
Decrease in refundable deposits		106,488		207,818
Acquisition of intangible assets		(1,453,594)		(900,616)
Government grants related to assets acquisition		2,428,002		72,619
Increase in other financial assets		(13,650,323)		(9,845,292)
Decrease in other financial assets		2,749,748		1,751,969
Increase in other noncurrent assets-others		(32,412)		(21,431)
Net cash used in investing activities		(25,602,062)		(16,988,308)
Cash flows from financing activities:
Increase in short-term loans		5,725,614		7,370,653
Decrease in short-term loans		(11,234,459)		(9,572,833)
Proceeds from bonds issued		9,600,000		-
Bonds issuance costs		(10,915)		-
Redemption of bonds		(2,000,000)		(13,702,875)
Proceeds from long-term loans		13,942,745		12,000,000
Repayments of long-term loans		(7,450,475)		(2,877,809)
Increase in guarantee deposits		7,676,795		240,679
Decrease in guarantee deposits		(90,252)		(118,845)
Cash payments for the principal portion of the lease liability		(350,626)		(366,401)
Treasury stock acquired		-		(1,200,612)
Change in non-controlling interests		10,442		(570,188)
Others		(976)		1,853
Net cash provided by (used in) financing activities		15,817,893		(8,796,378)
Effect of exchange rate changes on cash and cash equivalents		(1,667,574)		(970,981)
Net increase in cash and cash equivalents		29,952,446		4,379,140
Cash and cash equivalents at beginning of period		94,048,036		95,492,477
Cash and cash equivalents at end of period		$124,000,482		$99,871,617
The accompanying notes are an integral part of the consolidated financial statements.

9

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

For the Six-Month Periods Ended June 30, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

1.	HISTORY AND ORGANIZATION

United Microelectronics Corporation (UMC) was incorporated in Republic of China (R.O.C.) in May 1980 and commenced operations in April 1982. UMC is a full service semiconductor wafer foundry, and provides a variety of services to satisfy customer needs. UMC's ordinary shares were publicly listed on the Taiwan Stock Exchange (TWSE) in July 1985 and its American Depositary Shares (ADSs) were listed on the New York Stock Exchange (NYSE) in September 2000.

The address of its registered office and principal place of business is No. 3, Li-Hsin Road II, Hsinchu Science Park, Hsinchu City, Taiwan. The principal operating activities of UMC and its subsidiaries ('the Company') are described in Notes 4(3) and 14.

2.	DATE AND PROCEDURES OF AUTHORIZATION OF FINANCIAL STATEMENTS FOR ISSUE

The consolidated financial statements of the Company were authorized for issue in accordance with a resolution of the Board of Directors' meeting on July 28, 2021.

3.	NEWLY ISSUED OR REVISED STANDARDS AND INTERPRETATIONS

(1)

The Company applied International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended which are endorsed by Financial Supervisory Commission ('FSC') and become effective for annual periods beginning on or after January 1, 2021. There were no newly adopted or revised standards and interpretations that have material impact on the Company's financial position and performance.

(2)	Standards issued by International Accounting Standards Board ('IASB') but not yet endorsed by FSC (the effective dates are to be determined by FSC) are listed below:

10

New, Revised or Amended Standards and Interpretations		Effective Date issued by IASB
IFRS 10 'Consolidated Financial Statements' and IAS 28 'Investments in Associates and Joint Ventures' - Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures		To be determined by IASB
IFRS 17 'Insurance Contracts'		January 1, 2023
Amendments to IAS 1 'Presentation of Financial Statements' - Classification of Liabilities as Current or Non-current		January 1, 2023
Narrow-scope amendments of IFRS, including Amendments to IFRS 3, Amendments to IAS 16, Amendments to IAS 37		January 1, 2022
Annual Improvements to IFRS Standards 2018 - 2020:		January 1, 2022
Amendments to IFRS 1 'First-time Adoption of International Financial Reporting Standards'
Amendments to IFRS 9 'Financial Instruments'
Amendments to IFRS 16 'Leases'
Amendments to IAS 41 'Agriculture'
Amendments to IAS 1 'Presentation of Financial Statements' - Disclosure Initiative - Accounting Policies		January 1, 2023
Amendments to IAS 8 'Accounting Policies, Changes in Accounting Estimates and Errors' - Definition of Accounting Estimates		January 1, 2023
Amendment to IAS 12 'Income Taxes' - Deferred Tax related to Assets and Liabilities arising from a Single Transaction		January 1, 2023

The potential effects of adopting the standards or interpretations issued by IASB but not yet endorsed by FSC on the Company's financial statements in future periods are summarized as below:

a.	IFRS 10 'Consolidated Financial Statements' ('IFRS 10') and IAS 28 'Investments in Associates and Joint Ventures' - Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures (Amendment) ('IAS 28')

The amendments address the inconsistency between the requirements in IFRS 10 and IAS 28, in dealing with the loss of control of a subsidiary that is contributed to an associate or a joint venture. IAS 28 restricts gains and losses arising from contributions of non-monetary assets to an associate or a joint venture to the extent of the interest attributable to the other equity holders in the associate or joint venture. IFRS 10 requires full profit or loss recognition on the loss of control of a subsidiary. IAS 28 was amended so that the gain or loss resulting from the sale or contribution of assets that constitute a business as defined in IFRS 3 'Business Combinations' (IFRS 3) between an investor and its associate or joint venture is recognized in full.

11

IFRS 10 was also amended so that the gain or loss resulting from the sale or contribution of a subsidiary that does not constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized only to the extent of the unrelated investors' interests in the associate or joint venture.

b.	IAS 1 'Presentation of Financial Statements' ('IAS 1') - Classification of Liabilities as Current or Non-current (Amendment)

These are the amendments to paragraphs 69-76 of IAS 1 presentation of financial statements and the amended paragraphs related to the classification of liabilities as current or non-current.

c.	Narrow-scope amendments of IFRS, including Amendments to IFRS 3, Amendments to IAS 16, Amendments to IAS 37

i.	Updating a Reference to the Conceptual Framework (Amendments to IFRS 3)

The amendments updated IFRS 3 by replacing a reference to an old version of the Conceptual Framework for Financial Reporting with a reference to the latest version, which was issued in March 2018. The amendments also added an exception to the

recognition principle of IFRS 3 to avoid the issue of potential 'day 2' gains or losses arising for liabilities and contingent liabilities. Besides, the amendments clarify existing guidance in IFRS 3 for contingent assets that would not be affected by replacing the reference to the Conceptual Framework.

ii.	Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16)

The amendments prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognise such sales proceeds and related cost in profit or loss.

iii.	Onerous Contracts - Cost of Fulfilling a Contract (Amendments to IAS 37)

The amendments clarify what costs a company should include as the cost of fulfilling a contract when assessing whether a contract is onerous.

d.	Annual Improvements to IFRS Standards 2018 - 2020

i.	Amendment to IFRS 1

The amendment simplifies the application of IFRS 1 by a subsidiary that becomes a first-time adopter after its parent in relation to the measurement of cumulative translation differences.

12

ii.	Amendment to IFRS 9 Financial Instruments

The amendment clarifies the fees a company includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability.

iii.	Amendment to Illustrative Examples Accompanying IFRS 16 Leases

The amendment to Illustrative Example 13 accompanying IFRS 16 modifies the treatment of lease incentives relating to lessee's leasehold improvements.

e.	IAS 1 'Presentation of Financial Statements' ('IAS 1') - Disclosure Initiative - Accounting Policies (Amendment)

The amendments improve accounting policy disclosures that to provide more useful information to investors and other primary users of the financial statements.

f.	IAS 8 'Accounting Policies, Changes in Accounting Estimates and Errors' ('IAS 8') - Definition of Accounting Estimates (Amendment)

The amendments introduce the definition of accounting estimates and included other amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to help companies distinguish changes in accounting estimates from changes in accounting policies.

g.	IAS 12 'Income Taxes' ('IAS 12') - Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendment)

The amendments narrow the scope of the recognition exemption in paragraphs 15 and 24 of IAS 12 so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences.

The Company is currently evaluating the potential impact of the aforementioned standards and interpretations listed (a) ~ (g) to the Company's financial position and performance, and the related impact will be disclosed when the evaluation is completed.

4.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1)	Statement of Compliance

The Company's consolidated financial statements were prepared in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers (Regulations) and IAS 34 'Interim Financial Reporting' which is endorsed and become effective by FSC.

13

(2)	Basis of Preparation

The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments measured at fair value.

(3)	General Description of Reporting Entity

a.	Principles of consolidation

The same principles of consolidation have been applied in the Company's consolidated financial statements as those applied in the Company's consolidated financial statements for the year ended December 31, 2020. For the principles of consolidation, please refer to Note 4(3) of the Company's consolidated financial statements for the year ended December 31, 2020.

b.	The consolidated entities are as follows:

As of June 30, 2021, December 31, 2020 and June 30, 2020

						Percentage of ownership (%) As of
Investor		Subsidiary		Business nature		June 30, 2021		December 31, 2020		June 30, 2020
UMC		UMC GROUP (USA)		IC Sales		100.00		100.00		100.00
UMC		UNITED MICROELECTRONICS (EUROPE) B.V.		Marketing support activities		100.00		100.00		100.00
UMC		UMC CAPITAL CORP.		Investment holding		100.00		100.00		100.00
UMC		GREEN EARTH LIMITED (GE)		Investment holding		100.00		100.00		100.00
UMC		TLC CAPITAL CO., LTD. (TLC)		Venture capital		100.00		100.00		100.00
UMC		UMC INVESTMENT (SAMOA) LIMITED		Investment holding		100.00		100.00		100.00
UMC		FORTUNE VENTURE CAPITAL CORP. (FORTUNE)		Consulting and planning for venture capital		100.00		100.00		100.00
UMC		UMC GROUP JAPAN		IC Sales		-		-		100.00
UMC		UMC KOREA CO., LTD.		Marketing support activities		100.00		100.00		100.00
UMC		OMNI GLOBAL LIMITED (OMNI)		Investment holding		100.00		100.00		100.00
UMC		SINO PARAGON LIMITED		Investment holding		100.00		100.00		100.00

14

UMC		BEST ELITE INTERNATIONAL LIMITED (BE)		Investment holding		100.00		100.00		100.00
UMC		UNITED SEMICONDUCTOR JAPAN CO., LTD.		Sales and manufacturing of integrated circuits		100.00		100.00		100.00
UMC, FORTUNE and TLC		NEXPOWER TECHNOLOGY CORP. (NEXPOWER)		Sales and manufacturing of solar power batteries		-		-		93.36
UMC and FORTUNE		WAVETEK MICROELECTRONICS CORPORATION (WAVETEK)		Sales and manufacturing of integrated circuits		80.94		81.40		82.23
UMC CAPITAL CORP.		UMC CAPITAL (USA)		Investment holding		-		-		100.00
TLC		SOARING CAPITAL CORP.		Investment holding		100.00		100.00		100.00
SOARING CAPITAL CORP.		UNITRUTH ADVISOR (SHANGHAI) CO., LTD.		Investment holding and advisory		100.00		100.00		100.00
GE		UNITED MICROCHIP CORPORATION		Investment holding		100.00		100.00		100.00
FORTUNE		TERA ENERGY DEVELOPMENT CO., LTD. (TERA ENERGY)		Energy technical services		100.00		100.00		100.00
TERA ENERGY		EVERRICH ENERGY INVESTMENT (HK) LIMITED (EVERRICH-HK)		Investment holding		100.00		100.00		100.00
EVERRICH-HK		EVERRICH (SHANDONG) ENERGY CO., LTD.		Solar engineering integrated design services		100.00		100.00		100.00
OMNI		UNITED MICROTECHNOLOGY CORPORATION (NEW YORK)		Research and development		-		-		100.00
OMNI		UNITED MICROTECHNOLOGY CORPORATION (CALIFORNIA)		Research and development		100.00		100.00		100.00
OMNI		ECP VITA PTE. LTD.		Insurance		100.00		100.00		100.00
OMNI		UMC TECHNOLOGY JAPAN CO., LTD.		Semiconductor manufacturing technology development and consulting services		-		100.00		100.00

15

WAVETEK		WAVETEK MICROELECTRONICS INVESTMENT (SAMOA) LIMITED (WAVETEK-SAMOA)		Investment holding		100.00		100.00		100.00
WAVETEK- SAMOA		WAVETEK MICROELECTRONICS CORPORATION (USA)		Marketing service		100.00		100.00		100.00
BE		INFOSHINE TECHNOLOGY LIMITED (INFOSHINE)		Investment holding		100.00		100.00		100.00
INFOSHINE		OAKWOOD ASSOCIATES LIMITED (OAKWOOD)		Investment holding		100.00		100.00		100.00
OAKWOOD		HEJIAN TECHNOLOGY (SUZHOU) CO., LTD. (HEJIAN)		Sales and manufacturing of integrated circuits		99.9985		99.9985		99.9985
HEJIAN		UNITEDDS SEMICONDUCTOR (SHANDONG) CO., LTD.		Integrated circuits design services		100.00		100.00		100.00
UNITED MICROCHIP CORPORATION and HEJIAN		UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.		Sales and manufacturing of integrated circuits		67.76		67.76		65.22

(4)	Other Significant Accounting Policies

The same accounting policies of consolidation have been applied in the Company's consolidated financial statements as those applied in the Company's consolidated financial statements for the year ended December 31, 2020. For the summary of significant accounting policies, please refer to Note 4 of the Company's consolidated financial statements for the year ended December 31, 2020.

5.	SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

The same significant accounting judgments, estimates and assumptions have been applied in the Company's consolidated financial statements for the six-month period ended June 30, 2021 as those applied in the Company's consolidated financial statements for the year ended December 31, 2020. For significant accounting judgments, estimates and assumptions, please refer to Note 5 of the Company's consolidated financial statements for the year ended December 31, 2020.

16

6.	CONTENTS OF SIGNIFICANT ACCOUNTS

(1)	Cash and Cash Equivalents

		As of
		June 30, 2021		December 31, 2020		June 30, 2020
Cash on hand and petty cash		$5,993		$5,765		$5,959
Checking and savings accounts		30,494,446		20,163,007		22,571,570
Time deposits		83,661,342		66,939,601		66,178,461
Repurchase agreements collateralized by government bonds and corporate notes		9,838,701		6,939,663		11,115,627
Total		$124,000,482		$94,048,036		$99,871,617

(2)	Financial Assets at Fair Value through Profit or Loss

		As of
		June 30, 2021		December 31, 2020		June 30, 2020
Financial assets mandatorily measured at fair value through profit or loss
Common stocks		$11,258,924		$9,654,682		$8,078,649
Preferred stocks		2,780,803		3,299,004		3,151,567
Funds		3,895,641		2,674,476		2,325,532
Convertible Bonds		537,168		412,175		339,360
Forward contracts		910		2,384		2,564
Total		$18,473,446		$16,042,721		$13,897,672
Current		$1,021,168		$1,216,634		$1,013,842
Noncurrent		17,452,278		14,826,087		12,883,830
Total		$18,473,446		$16,042,721		$13,897,672

(3)	Accounts Receivable, Net

		As of
		June 30, 2021		December 31, 2020		June 30, 2020
Accounts receivable		$29,986,486		$27,300,439		$27,653,772
Less: loss allowance		(191,099)		(206,084)		(650,254)
Net		$29,795,387		$27,094,355		$27,003,518

17

Aging analysis of accounts receivable:

		As of
		June 30, 2021		December 31, 2020		June 30, 2020
Neither past due		$26,948,089		$23,801,905		$23,591,567
Past due:
≤ 30 days		2,270,947		2,730,865		2,382,544
31 to 60 days		158,246		95,398		206,509
61 to 90 days		11,273		13,258		109,209
91 to 120 days		7,190		23,774		75,941
≥ 121 days		590,741		635,239		1,288,002
Subtotal		3,038,397		3,498,534		4,062,205
Total		$29,986,486		$27,300,439		$27,653,772

Movement of loss allowance for accounts receivable:

		For the six-month periods ended June 30,
		2021		2020
Beginning balance		$206,084		$697,590
Net recognize (reversal) for the period		(14,985)		(47,336)
Ending balance		$191,099		$650,254

The collection periods for third party domestic sales and third party overseas sales were month-end 30~60 days and net 30~60 days, respectively.

An impairment analysis is performed at each reporting date to measure expected credit losses (ECLs) of accounts receivable. For the receivables past due within 60 days, including not past due, the Company estimates an expected credit loss rate to calculate ECLs. For the six-month periods ended June 30, 2021 and 2020, the expected credit loss rates are not greater than 0.2%. The rate is determined based on the Company's historical credit loss experience and customer's current financial condition, adjusted for forward-looking factors such as customer's economic environment. For the receivables past due over 60 days, the Company applies the aforementioned rate and assesses individually whether to recognize additional expected credit losses by considering customer's operating condition and debt-paying ability.

18

(4)	Inventories, Net

		As of
		June 30, 2021		December 31, 2020		June 30, 2020
Raw materials		$4,367,220		$5,507,002		$5,969,112
Supplies and spare parts		4,672,412		4,290,672		4,484,571
Work in process		12,901,840		11,872,971		11,385,606
Finished goods		497,500		881,841		1,502,751
Total		$22,438,972		$22,552,486		$23,342,040

a.

For the three-month periods ended June 30, 2021 and 2020, the Company recognized NT$33,662 million and NT$33,081 million, respectively, in operating cost, of which NT$252 million and NT$26 million were related to reversal of write-down of inventories. For the six-month periods ended June 30, 2021 and 2020, the Company recognized NT$67,294 million and NT$66,143 million, respectively, in operating cost, of which NT$135 and NT$227 million were related to reversal of write-down of inventories.

b.	None of the aforementioned inventories were pledged.

(5)	Financial Assets at Fair Value through Other Comprehensive Income, Non-Current

		As of
		June 30, 2021		December 31, 2020		June 30, 2020
Equity instruments
Common stocks		$14,165,661		$10,355,999		$6,974,053
Preferred stocks		152,866		170,145		101,110
Total		$14,318,527		$10,526,144		$7,075,163

a.	These investments in equity instruments are held for medium to long-term purposes and therefore are accounted for as fair value through other comprehensive income.

b.	Dividend income from equity instruments designated as fair value through other comprehensive income were both nil for the six-month periods ended June 30, 2021 and 2020.

19

c.	In consideration of the Company's investment strategy, the Company disposed and derecognized certain investments designated as fair value through other comprehensive income. Details on derecognition of such investments for the six-month periods ended June 30, 2021 and 2020 are as follow:

		For the six-month periods ended June 30,
		2021		2020
Fair value on the date of disposal		$-		$9,012,450
Cumulative gains (losses) reclassified to retained earnings due to derecognition		$-		$1,825,365

(6)	Investments Accounted for Under the Equity Method

a.	Details of investments accounted for under the equity method are as follows:

		As of
		June 30, 2021		December 31, 2020		June 30, 2020
Investee companies		Amount		Percentage of ownership or voting rights		Amount		Percentage of ownership or voting rights		Amount		Percentage of ownership or voting rights
Listed companies
FARADAY TECHNOLOGY CORP. (FARADAY) (Note A)		$1,661,423		13.78		$1,589,448		13.78		$1,462,377		13.78
UNIMICRON TECHNOLOGY CORP. (UNIMICRON) (Note B)		9,565,280		13.30		9,107,377		13.36		8,934,281		13.37
Unlisted companies
MTIC HOLDINGS PTE. LTD. (Note C)		-		45.44		26,966		45.44		9,677		45.44
PURIUMFIL INC.		6,188		44.45		6,206		44.45		7,103		44.45
UNITECH CAPITAL INC.		850,393		42.00		823,185		42.00		732,955		42.00
TRIKNIGHT CAPITAL CORPORATION		2,905,912		40.00		2,488,169		40.00		2,179,532		40.00

20

HSUN CHIEH CAPITAL CORP.		$242,894		40.00		$195,675		40.00		$179,704		40.00
HSUN CHIEH INVESTMENT CO., LTD.		11,370,011		36.49		10,165,563		36.49		4,453,423		36.49
YANN YUAN INVESTMENT CO., LTD.		7,956,533		28.22		6,551,136		30.87		3,707,707		30.87
UNITED LED CORPORATION HONG KONG LIMITED		96,397		25.14		96,026		25.14		104,302		25.14
VSENSE CO., LTD. (Note C)		-		23.98		941		23.98		6,003		24.39
TRANSLINK CAPITAL PARTNERS I, L.P. (Note D)		128,285		10.38		174,985		10.38		198,393		10.38
WINAICO IMMOBILIEN GMBH (Note E)		-		-		-		-		-		44.78
Total		$34,783,316				$31,225,677				$21,975,457

Note A:

Beginning from June 2015, the Company accounts for its investment in FARADAY as an associate given the fact that the Company obtained the ability to exercise significant influence over FARADAY through representation on its Board of Directors.

Note B:

Beginning from June 2020, the Company accounts for its investment in UNIMICRON as an associate given the fact that the Company obtained the ability to exercise significant influence over UNIMICRON through representation on its Board of Directors. UNIMICRON was previously measured at fair value through other comprehensive income and reclassified as investments accounted for under the equity method. Cumulative fair value changes that was previously recognized in other comprehensive income up to reclassification date was reclassified to retained earnings in the current period.

21

Note C:

When the Company's share of losses of an associate or joint venture equals or exceeds its interest in that associate or joint venture, the Company discontinues recognizing its share of further losses. Additional losses and liabilities are recognized only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of that associate.

Note D:

The Company follows international accounting practices in equity accounting for limited partnerships and uses the equity method to account for these investees.

Note E:

WINAICO IMMOBILIEN GMBH was a joint venture to the Company disposed in December 2020.

The carrying amount of investments accounted for using the equity method for which there are published price quotations amounted to NT$11,227 million, NT$10,697 million and NT$10,397 million, as of June 30, 2021, December 31, 2020 and June 30, 2020, respectively. The fair value of these investments were NT$27,907 million, NT$18,885 million and NT$11,415 million, as of June 30, 2021, December 31, 2020 and June 30, 2020, respectively.

Certain investments accounted for under the equity method were reviewed by other independent accountants. Shares of profit or loss of these associates and joint ventures amounted to NT$880 million, NT$889 million, NT$2,591 million and NT$63 million for the three-month and six-month periods ended June 30, 2021 and 2020, respectively. Share of other comprehensive income (loss) of these associates and joint ventures amounted to NT$678 million, NT$529 million, NT$1,530 million and NT$(41) million for the three-month and six-month periods ended June 30, 2021 and 2020, respectively. The balances of investments accounted for under the equity method were NT$32,648 million, NT$29,507 million and NT$20,008 million as of June 30, 2021, December 31, 2020 and June 30, 2020, respectively.

Although the Company is the largest shareholder of some associates; after comprehensive assessment, the Company does not own the major voting rights as the remaining voting rights holders are able to align and prevent the Company from ruling the relevant operation. Therefore, the Company does not control but owns significant influence over the aforementioned associates.

None of the aforementioned associates and joint ventures were pledged.

22

b.	Financial information of associates and joint ventures:

There is no individually significant associate or joint venture for the Company. When an associate or a joint venture is a foreign operation, and the functional currency of the foreign entity is different from the Company, an exchange difference arising from translation of the foreign entity will be recognized in other comprehensive income (loss). Such exchange differences recognized in other comprehensive income (loss) in the financial statements for the three-month and six-month periods ended June 30, 2021 and 2020 were NT$(24) million, NT$(14) million, NT$(22) million and NT$(12) million, respectively, which were not included in the following table.

i.	The aggregate amount of the Company's share of all its individually immaterial associates that are accounted for using the equity method is as follows:

		For the three-month periods ended June 30,
		2021		2020
Income (loss) from continuing operations		$881,483		$914,379
Other comprehensive income (loss)		712,155		551,828
Total comprehensive income (loss)		$1,593,638		$1,466,207

		For the six-month periods ended June 30,
		2021		2020
Income (loss) from continuing operations		$2,648,052		$67,373
Other comprehensive income (loss)		1,580,864		(38,339)
Total comprehensive income (loss)		$4,228,916		$29,034

ii.	The aggregate amount of the Company's share of all its individually immaterial joint ventures that are accounted for using the equity method were both nil for the three-month and the six-month periods ended June 30, 2021 and 2020.

c.

One of UMC's associates, HSUN CHIEH INVESTMENT CO., LTD., held 441 million shares of UMC's stock as of June 30, 2021, December 31, 2020 and June 30, 2020, respectively. Another associate, YANN YUAN INVESTMENT CO., LTD., held 201 million shares, 201 million and 200 million shares of UMC's stock as of June 30, 2021, December 31, 2020 and June 30, 2020, respectively.

23

(7)	Other current assets

		As of
		June 30, 2021		December 31, 2020		June 30, 2020
Time deposits with original maturities of over three months to a year		$24,951,491		$14,305,779		$10,298,667
Costs to fulfill a contract		815,041		548,986		930,456
Others		70,016		71,566		-
Total		$25,836,548		$14,926,331		$11,229,123

(8)	Property, Plant and Equipment

For the six-month period ended June 30, 2021:

a.	Assets Used by the Company:

Cost:

		Land		Buildings		Machinery and equipment		Transportation equipment		Furniture and fixtures		Leasehold improvement		Construction in progress and equipment awaiting inspection		Total
As of January 1, 2021		$1,690,613		$37,257,510		$871,569,325		$54,898		$6,908,778		$63,774		$16,529,296		$934,074,194
Additions		-		-		-		-		-		-		13,836,489		13,836,489
Disposals		-		(112)		(1,350,898)		(791)		(2,534)		-		(3,380)		(1,357,715)
Transfers and reclassifications		(98,596)		33,310		19,131,822		2,180		143,968		-		(18,186,201)		1,026,483
Exchange effect		(70,039)		(447,268)		(5,375,576)		(335)		(31,008)		(1,931)		(176,961)		(6,103,118)
As of June 30, 2021		$1,521,978		$36,843,440		$883,974,673		$55,952		$7,019,204		$61,843		$11,999,243		$941,476,333

Accumulated Depreciation and Impairment:

		Land		Buildings		Machinery and equipment		Transportation equipment		Furniture and fixtures		Leasehold improvement		Construction in progress and equipment awaiting inspection		Total
As of January 1, 2021		$-		$19,851,288		$777,687,345		$42,732		$5,715,339		$49,963		$-		$803,346,667
Depreciation		-		747,866		20,663,551		2,692		261,379		3,864		-		21,679,352
Disposals		-		(112)		(1,344,102)		(791)		(2,528)		-		-		(1,347,533)
Transfers and reclassifications		-		1,682		32,173		-		-		-		-		33,855
Exchange effect		-		(100,283)		(4,063,287)		(183)		(18,711)		(1,434)		-		(4,183,898)
As of June 30, 2021		$-		$20,500,441		$792,975,680		$44,450		$5,955,479		$52,393		$-		$819,528,443
Net carrying amount:
As of June 30, 2021		$1,521,978		$16,342,999		$90,998,993		$11,502		$1,063,725		$9,450		$11,999,243		$121,947,890

24

b.	Assets Subject to Operating Leases:

Cost:

		Land		Buildings		Machinery and equipment		Furniture and fixtures		Total
As of January 1, 2021		$459,622		$2,451,311		$125,413		$1,315,633		$4,351,979
Transfers and reclassifications		98,596		(20,163)		(32,173)		-		46,260
Exchange effect		(4,534)		(9,606)		-		(3,990)		(18,130)
As of June 30, 2021		$553,684		$2,421,542		$93,240		$1,311,643		$4,380,109

Accumulated Depreciation and Impairment:

		Land		Buildings		Machinery and equipment		Furniture and fixtures		Total
As of January 1, 2021		$-		$1,007,545		$125,413		$1,171,885		$2,304,843
Depreciation		-		47,093		-		34,588		81,681
Transfers and reclassifications		-		(1,682)		(32,173)		-		(33,855)
Exchange effect		-		(4,207)		-		(3,025)		(7,232)
As of June 30, 2021		$-		$1,048,749		$93,240		$1,203,448		$2,345,437
Net carrying amount:
As of June 30, 2021		$553,684		$1,372,793		$-		$108,195		$2,034,672

For the six-month period ended June 30, 2020:

a.	Assets Used by the Company:

Cost:

		Land		Buildings		Machinery and equipment		Transportation equipment		Furniture and fixtures		Leasehold improvement		Construction in progress and equipment awaiting inspection		Total
As of January 1, 2020		$1,692,123		$38,437,588		$865,547,572		$65,909		$6,842,124		$65,883		$5,583,516		$918,234,715
Additions		-		-		-		-		-		-		6,655,334		6,655,334
Disposals		-		-		(592,567)		(10,770)		(10,142)		-		(12,938)		(626,417)
Transfers and reclassifications		-		(1,277,518)		2,951,520		-		47,000		93		(6,142,864)		(4,421,769)
Exchange effect		(5,435)		(242,944)		(4,337,114)		(406)		(28,964)		(744)		(57,690)		(4,673,297)
As of June 30, 2020		$1,686,688		$36,917,126		$863,569,411		$54,733		$6,850,018		$65,232		$6,025,358		$915,168,566

25

Accumulated Depreciation and Impairment:

		Land		Buildings		Machinery and equipment		Transportation equipment		Furniture and fixtures		Leasehold improvement		Construction in progress and equipment awaiting inspection		Total
As of January 1, 2020		$-		$18,950,520		$745,722,965		$47,794		$5,383,434		$46,147		$-		$770,150,860
Depreciation		-		867,540		21,859,780		2,700		253,826		3,883		-		22,987,729
Disposals		-		-		(592,329)		(10,326)		(10,123)		-		-		(612,778)
Transfers and reclassifications		-		(788,342)		(3,326,088)		-		(115,817)		(1,916)		-		(4,232,163)
Exchange effect		-		(14,293)		(2,787,206)		(214)		(15,615)		(660)		-		(2,817,988)
As of June 30, 2020		$-		$19,015,425		$760,877,122		$39,954		$5,495,705		$47,454		$-		$785,475,660
Net carrying amount:
As of June 30, 2020		$1,686,688		$17,901,701		$102,692,289		$14,779		$1,354,313		$17,778		$6,025,358		$129,692,906

b.	Assets Subject to Operating Leases:

Cost:

		Land		Buildings		Machinery and equipment		Furniture and fixtures		Total
As of January 1, 2020		$459,635		$2,637,271		$125,413		$1,315,180		$4,537,499
Transfers and reclassifications		-		(179,132)		-		-		(179,132)
Exchange effect		(45)		(6,824)		-		(5,449)		(12,318)
As of June 30, 2020		$459,590		$ 2,451,315		$125,413		$1,309,731		$4,346,049

Accumulated Depreciation and Impairment:

		Land		Buildings		Machinery and equipment		Furniture and fixtures		Total
As of January 1, 2020		$-		$1,019,036		$125,413		$1,102,809		$2,247,258
Depreciation		-		52,556		-		34,665		87,221
Transfers and reclassifications		-		(107,240)		-		-		(107,240)
Exchange effect		-		(2,103)		-		(2,869)		(4,972)
As of June 30, 2020		$-		$962,249		$125,413		$1,134,605		$2,222,267
Net carrying amount:
As of June 30, 2020		$459,590		$1,489,066		$-		$175,126		$2,123,782

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In order to improve operations, reduce fixed costs and obtain the funds required for the company future operation. In the second quarter of 2020, the subsidiary of new business segment (NEXPOWER) disposed its building and facility equipment located in Taichung City in accordance with a resolution of the Board of Directors' meeting, therefore, it was reclassified as non-current assets held for sale. The company completed the disposal in the third quarter of 2020 and recorded a gain on disposal of NT$1,081 million in the other operating income and expenses.

Please refer to Note 8 for property, plant and equipment pledged as collateral.

(9)

Leases

The Company leases various properties, such as land (including land use right), buildings, machinery and equipment, transportation equipment and other equipment with lease terms of 1 to 30 years, except for the land use rights with lease term of 50 years. Most lease contracts of land located in R.O.C state that lease payments will be adjusted based on the announced land value. The Company does not have purchase options of leased land at the end of the lease terms.

a.	The Company as a lessee

(a)	Right-of-use Assets

		As of
		June 30, 2021		December 31, 2020		June 30, 2020
Land (including land use right)		$5,023,688		$5,146,342		$5,378,963
Buildings		299,366		352,119		376,449
Machinery and equipment		2,061,684		2,227,035		2,337,425
Transportation equipment		20,167		12,252		10,869
Other equipment		8,425		10,294		12,913
Net		$7,413,330		$7,748,042		$8,116,619

		For the three-month periods ended June 30,
		2021		2020
Depreciation
Land (including land use right)		$81,258		$87,322
Buildings		30,520		29,793
Machinery and equipment		52,745		55,721
Transportation equipment		2,424		2,090
Other equipment		1,123		1,186
Total		$168,070		$176,112

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		For the six-month periods ended June 30,
Depreciation		2021		2020
Land (including land use right)		$163,101		$164,354
Buildings		60,943		60,295
Machinery and equipment		106,323		112,230
Transportation equipment		4,282		4,170
Other equipment		2,256		2,291
Total		$336,905		$343,340

i.	For the six-month periods ended June 30, 2021 and 2020, the Company's addition to right-of-use assets amounted to NT$155 million and NT$563 million, respectively.

ii.	Please refer to Note 8 for right-of-use assets pledged as collateral.

(b)	Lease Liabilities

		As of
		June 30, 2021		December 31, 2020		June 30, 2020
Current		$553,599		$550,147		$569,874
Noncurrent		4,770,712		5,026,717		5,381,737
Total		$5,324,311		$5,576,864		$5,951,611

Please refer to Note 6(23) for the interest expenses on the lease liabilities.

b.	The Company as a lessor

The Company entered into leases on certain property, plant and equipment which are classified as operating leases as they did not transfer substantially all of the risks and rewards incidental to ownership of the underlying assets. The main contracts are to lease the dormitory to the employees with cancellation clauses. Please refer to Note 6(8) for relevant disclosure of property, plant and equipment for operating leases.

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(10)	Intangible Assets

For the six-month period ended June 30, 2021:

Cost:

		Goodwill		Software		Patents and technology license fees		Others		Total
As of January 1, 2021		$15,012		$4,264,558		$4,530,465		$3,497,252		$12,307,287
Additions		-		1,113,647		56,360		152,581		1,322,588
Write-off		-		(263,728)		-		(348,031)		(611,759)
Reclassifications		-		803		-		-		803
Exchange effect		-		(118,025)		(187,784)		(14,339)		(320,148)
As of June 30, 2021		$15,012		$4,997,255		$4,399,041		$3,287,463		$12,698,771

Accumulated Amortization and Impairment:

		Goodwill		Software		Patents and technology license fees		Others		Total
As of January 1, 2021		$7,398		$2,035,028		$2,852,037		$2,534,911		$7,429,374
Amortization		-		764,789		269,269		358,721		1,392,779
Write-off		-		(263,728)		-		(348,031)		(611,759)
Exchange effect		-		(66,715)		(93,085)		(10,078)		(169,878)
As of June 30, 2021		$7,398		$2,469,374		$3,028,221		$2,535,523		$8,040,516
Net carrying amount:
As of June 30, 2021		$7,614		$2,527,881		$1,370,820		$751,940		$4,658,255

For the six-month period ended June 30, 2020:

Cost:

		Goodwill		Software		Patents and technology license fees		Others		Total
As of January 1, 2020		$15,012		$3,347,148		$4,183,505		$3,548,006		$11,093,671
Additions		-		625,319		124,496		380,313		1,130,128
Write-off		-		(141,449)		(11,023)		(710,120)		(862,592)
Reclassifications		-		7,287		-		-		7,287
Exchange effect		-		15,457		(288,501)		2,242		(270,802)
As of June 30, 2020		$15,012		$3,853,762		$4,008,477		$3,220,441		$11,097,692

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Accumulated Amortization and Impairment:

		Goodwill		Software		Patents and technology license fees		Others		Total
As of January 1, 2020		$7,398		$951,176		$2,299,223		$2,637,627		$5,895,424
Amortization		-		643,209		265,754		397,384		1,306,347
Write-off		-		(141,449)		(11,023)		(710,120)		(862,592)
Exchange effect		-		22,646		(106,924)		2,399		(81,879)
As of June 30, 2020		$7,398		$1,475,582		$2,447,030		$2,327,290		$6,257,300
Net carrying amount: As of June 30, 2020		$7,614		$2,378,180		$1,561,447		$893,151		$4,840,392

The amortization amounts of intangible assets are as follows:

		For the three-month periods ended June 30,
		2021		2020
Operating costs		$202,926		$216,475
Operating expenses		$499,558		$440,132

		For the six-month periods ended June 30,
		2021		2020
Operating costs		$412,452		$436,633
Operating expenses		$980,327		$869,714

(11)	Short-Term Loans

		As of
		June 30, 2021		December 31, 2020		June 30, 2020
Unsecured bank loans		$5,348,125		$11,057,132		$8,348,915
Unsecured other loans		-		-		1,248,040
Secured bank loans		38,176		-		14,840
Total		$5,386,301		$11,057,132		$9,611,795

		For the six-month periods ended June 30,
		2021		2020
Interest rates applied		0.15%~3.60%		0.00%~4.05%

a.	The Company's unused short-term lines of credit amounted to NT$62,449 million, NT$63,177 million and NT$58,711 million as of June 30, 2021, December 31, 2020 and June 30, 2020, respectively.

b.	Please refer to Note 8 for refundable deposits pledged as collateral for short-term loans.

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(12)	Financial Liabilities at Fair Value through Profit or Loss, Current

		As of
		June 30, 2021		December 31, 2020		June 30, 2020
Forward contracts		$2,067		$2,326		$771

(13)	Bonds Payable

		As of
		June 30, 2021		December 31, 2020		June 30, 2020
Unsecured domestic bonds payable		$26,300,000		$18,700,000		$18,700,000
Less: Discounts on bonds payable		(18,787)		(9,616)		(11,013)
Total		26,281,213		18,690,384		18,688,987
Less: Current portion		(6,199,261)		(1,999,910)		(1,999,802)
Net		$20,081,952		$16,690,474		$16,689,185

a.	UMC issued domestic unsecured corporate bonds. The terms and conditions of the bonds are as follows:

Term		Issuance date		Issued amount		Coupon rate		Repayment
Seven-year		In mid-March 2013		NT$2,500 million		1.50%		Interest was paid annually and the principal was fully repaid in March 2020.
Seven-year		In mid-June 2014		NT$2,000 million		1.70%		Interest will be paid annually and the principal was fully repaid in June 2021 .
Ten-year		In mid-June 2014		NT$3,000 million		1.95%		Interest will be paid annually and the principal will be repayable in June 2024 upon maturity.
Five-year		In late March 2017		NT$6,200 million		1.15%		Interest will be paid annually and the principal will be repayable in March 2022 upon maturity.
Seven-year		In late March 2017		NT$2,100 million		1.43%		Interest will be paid annually and the principal will be repayable in March 2024 upon maturity.
Five-year		In early October 2017		NT$2,000 million		0.94%		Interest will be paid annually and the principal will be repayable in October 2022 upon maturity.
Seven-year		In early October 2017		NT$3,400 million		1.13%		Interest will be paid annually and the principal will be repayable in October 2024 upon maturity.
Five-year		In late April 2021		NT$5,500 million		0.57%		Interest will be paid annually and the principal will be repayable in April 2026 upon maturity.
Seven-year		In late April 2021		NT$2,000 million		0.63%		Interest will be paid annually and the principal will be repayable in April 2028 upon maturity.
Ten-year (green bond)		In late April 2021		NT$2,100 million		0.68%		Interest will be paid annually and the principal will be repayable in April 2031 upon maturity.

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b.

On May 18, 2015, UMC issued SGX-ST listed currency linked zero coupon convertible bonds. In accordance with IAS 32 'Financial Instruments Presentation', the value of the conversion right of the convertible bonds was determined at issuance and recognized in additional paid-in capital-stock options amounting to NT$1,894 million, after reduction of issuance costs amounting to NT$9 million. The effective interest rate on the liability component of the convertible bonds was determined to be 2.03%. The terms and conditions of the bonds are as follows:

i.	Issue Amount: US$600 million

ii.	Period: May 18, 2015 ~ May 18, 2020 (Maturity date)

iii.	Redemption:

(i)

UMC may redeem the bonds, in whole or in part, after 3 years of the issuance and prior to the maturity date, at the principal amount of the bonds with an interest calculated at the rate of -0.25% per annum (the Early Redemption Amount) if the closing price of the ordinary shares of UMC on the TWSE, for a period of 20 out of 30 consecutive trading days, the last of which occurs not more than 5 days prior to the date upon which notice of such redemption is published, is at least 125% of the conversion price. The Early Redemption Price will be converted into NTD based on the Fixed Exchange Rate (NTD 30.708=USD 1.00), and this fixed NTD amount will be converted using the prevailing rate at the time of redemption for payment in USD.

(ii)	UMC may redeem the bonds, in whole, but not in part, at the Early Redemption Amount if at least 90% in principal amount of the bonds has already been converted, redeemed or repurchased and cancelled.

(iii)

UMC may redeem all, but not part, of the bonds, at the Early Redemption Amount at any time, in the event of certain changes in the R.O.C.'s tax rules which would require UMC to gross up for payments of principal, or to gross up for payments of interest or premium.

(iv)	All or any portion of the bonds will be redeemable at Early Redemption Amount at the option of bondholders on May 18, 2018 at 99.25% of the principal amount.

(v)	Bondholders have the right to require UMC to redeem all of the bonds at the Early Redemption Amount if UMC's ordinary shares cease to be listed on the Taiwan Stock Exchange.

(vi)	In the event that a change of control as defined in the indenture of the bonds occurs to UMC, the bondholders shall have the right to require UMC to redeem the bonds, in whole but not in part, at the Early Redemption Amount.

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iv.	Terms of Conversion:

(i)	Underlying Securities: Ordinary shares of UMC

(ii)

Conversion Period: The bonds are convertible at any time on or after June 28, 2015 and prior to May 8, 2020, into UMC ordinary shares; provided, however, that if the exercise date falls within 5 business days from the beginning of, and during, any closed period, the right of the converting holder of the bonds to vote with respect to the shares it receives will be subject to certain restrictions.

(iii)

Conversion Price and Adjustment: The conversion price was originally NT$17.50 per share. The conversion price will be subject to adjustments upon the occurrence of certain events set out in the indenture.

v.	Conversion of Bonds:

The last conversion date of the bonds was on March 31, 2020. As of the date, the outstanding principal amount of the convertible bonds totaling US$231 million had been converted into 498 million shares.

Upon the maturity date of May 18, 2020, UMC fully redeemed the remaining unconverted bonds at 98.76% of the principal amount. The principal amount of redemption amounted to US$369 million. UMC reclassified cancelled convertible rights of NT$1,166 million from additional paid in capital-stock options to additional paid in capital-others.

(14)	Long-Term Loans

a.	Details of long-term loans as of June 30, 2021, December 31, 2020 and June 30, 2020 were as follows:

		As of
Lenders		June 30, 2021		December 31, 2020		June 30, 2020		Redemption
Secured Long-Term Loan from Mega International Commercial Bank (1)		$547		$1,640		$2,733		Effective July 3, 2017 to July 5, 2021. Interest-only payment for the first year. Principal is repaid in 17 quarterly payments with monthly interest payments.
Secured Long-Term Loan from Mega International Commercial Bank (2)		17,031		19,464		10,380		Effective October 24, 2019 to October 24, 2024. Interest-only payment for the first year. Principal is repaid in 17 quarterly payments with monthly interest payments.
Secured Long-Term Loan from Taiwan Cooperative Bank (1)		-		-		430		Effective August 10, 2015 to August 10, 2020. Interest-only payment for the first year. Principal is repaid in 17 quarterly payments with monthly interest payments.

33

Secured Long-Term Loan from Taiwan Cooperative Bank (2)		$53,514		$59,459		$65,405		Effective October 19, 2015 to October 19, 2025. Interest-only payment for the first year. Principal is repaid in 37 quarterly payments with monthly interest payments.
Secured Long-Term Loan from Taiwan Cooperative Bank (3)		17,500		21,146		26,250		Repayable monthly from June 30, 2019 to May 31, 2023 with monthly interest payments.
Secured Long-Term Loan from Taiwan Cooperative Bank (4)		50,000		56,000		-		Repayable monthly from September 13, 2020 to August 13, 2025 with monthly interest payments.
Secured Long-Term Loan from Taiwan Cooperative Bank (5)		25,862		28,965		-		Repayable monthly from November 29, 2020 to August 29, 2025 with monthly interest payments.
Secured Long-Term Loan from Taiwan Cooperative Bank (6)		32,000		-		-		Effective April 15, 2021 to April 15, 2026. Interest-only payment for the first year. Principal is repaid in 48 monthly payments with monthly interest payments.
Secured Syndicated Loans from China Development Bank and 6 others (1) (Note A)		19,956,463		22,236,343		24,584,261		Effective October 20, 2016 to October 20, 2024. Interest-only payment for the first and the second year. Principal is repaid in 13 semi-annual payments with semi-annual interest payments.
Secured Syndicated Loans from China Development Bank and 6 others (2)		12,138,000		-		-		Effective March 19, 2021 to March 18, 2031. Interest-only payment for the first and the second year. Principal is repaid in 17 semi-annual payments with semi-annual interest payments.
Unsecured Long-Term Loan from ICBC Bank		1,610,508		1,702,589		1,681,326		Effective September 20, 2019 to September 9, 2021, Interest-only payment for the semi-annually year. Principal is repaid in 4 semi-annual payments with quarterly interest payments.
Unsecured Long-Term Loan from CTBC Bank		-		-		747,900		Settlement beforehand on September 28, 2020 with monthly interest payments.
Unsecured Long-Term Loan from Xiamen Bank		433,066		440,500		-		Effective November 24, 2020 to May 24, 2022. Interest-only payment for the first semi-annually year. The principal will be repaid semi-annually of RMB 0.1 million and the remaining principal will be repaid once at maturity, and the interest will be paid monthly.

34

Unsecured Long-Term Loan from Bank of China		$114,461		$-		$-		Effective June 24, 2023 to June 24, 2026. Principal is repaid in 7 semi-annual payments with quarterly interest payments.
Unsecured Long-Term Loan from Bank of Taiwan		500,000		2,000,000		2,000,000		Effective March 10, 2022 to December 10, 2024. Principal is repaid in 12 quarterly payments with monthly interest payments.
Unsecured Long-Term Loan from Taiwan Cooperative Bank		-		2,000,000		3,000,000		Effective May 5, 2023 to May 5, 2025. Principal is repaid in 9 quarterly payments with monthly interest payments.
Unsecured Revolving Loan from Mega International Commercial Bank (Note B)		500,000		1,500,000		2,000,000		Repayable semi-annually from October 16, 2020 to April 16, 2022 with monthly interest payments.
Unsecured Revolving Loan from Taipei Fubon Bank (Note C)		500,000		700,000		2,000,000		Repayable annually from August 9, 2020 to August 9, 2023 with monthly interest payments.
Unsecured Revolving Loan from Chang Hwa Commercial Bank (Note D)		800,000		1,000,000		2,400,000		Repayable quarterly from January 27, 2021 to October 27, 2022 with monthly interest payments.
Unsecured Revolving Loan from KGI Bank (Note E)		600,000		1,000,000		2,000,000		Repayable annually from December 11, 2021 to December 11, 2023 with monthly interest payments.
Unsecured Revolving Loan from First Commercial Bank (1) (Note F)		-		300,000		2,000,000		Settlement due on May 15, 2025 with monthly interest payments.
Unsecured Revolving Loan from First Commercial Bank (2) (Note G)		300,000		-		-		Settlement due on February 25, 2026 with monthly interest payments.
Unsecured Revolving Loan from First Commercial Bank (3) (Note G)		300,000		-		-		Settlement due on March 15, 2026 with monthly interest payments.
Unsecured Revolving Loan from First Commercial Bank (4) (Note G)		200,000		-		-		Settlement due on June 15, 2026 with monthly interest payments.
Unsecured Revolving Loan from Yuanta Commercial Bank (Note H)		800,000		-		-		Repayable annually from March 2, 2023 to March 2, 2026 with monthly interest payments.
Subtotal		$38,948,952		$33,066,106		$42,518,685
Less: Current portion		(8,064,118)		(24,985,168)		(5,711,992)
Total		$30,884,834		$8,080,938		$36,806,693

		For the six-month periods ended June 30,
		2021		2020
Interest rates applied		0.85%~4.66%		0.89%~4.67%

35

Note A:

USCXM, the subsidiary of UMC failed to comply with the loan covenant to maintain its financial ratio at certain level and therefore the loan is reclassified to current liabilities as of December 31, 2020 . USCXM has notified the bank and executed the exemption application process. The exemption has been obtained as of April 21, 2021.

Note B:

UMC entered into a 5-year loan agreement with Mega International Commercial Bank, effective from October 17, 2016. The agreement offered UMC a revolving line of credit of NT$3 billion. This line of credit will be reduced starting from the end of the two years and six months after the first use and every six months thereafter, with a total of six adjustments. The expiration date of the agreement is April 16, 2022. As of June 30, 2021, December 31, 2020 and June 30, 2020, the unused line of credit were NT$0.5 billion, nil and nil, respectively.

Note C:

UMC entered into a 5-year loan agreement with Taipei Fubon Bank, effective from February 9, 2018. The agreement offered UMC a revolving line of credit of NT$2 billion. This line of credit will be reduced starting from the end of the two years after the first use and every twelve months thereafter, with a total of four adjustments. The expiration date of the agreement is August 9, 2023. As of June 30, 2021, December 31, 2020 and June 30, 2020, the unused line of credit were NT$1 billion, NT$0.8 billion and nil, respectively.

Note D:

UMC entered into a 5-year loan agreement with Chang Hwa Commercial Bank, effective from November 2, 2016. The agreement offered UMC a revolving line of credit of NT$3 billion. This line of credit will be reduced starting from the end of the third year after the first use and every three months thereafter, with a total of nine adjustments. The expiration date of the agreement is October 27, 2022. As of June 30, 2021, December 31, 2020 and June 30, 2020, the unused line of credit were NT$1.2 billion, NT$1.7 billion and NT$0.6 billion, respectively.

Note E:

UMC entered into a 5-year loan agreement with KGI Commercial Bank, effective from September 11, 2018. The agreement offered UMC a revolving line of credit of NT$2.5 billion. This line of credit will be reduced starting from the end of the second year after the first use and every twelve months thereafter, with a total of four adjustments. The expiration date of the agreement is December 11, 2023. As of June 30, 2021, December 31, 2020 and June 30, 2020, the unused line of credit were NT$1.4 billion, NT$1 billion and NT$0.5 billion, respectively.

Note F:

First Commercial Bank approved the 1-year credit loan on December 30, 2019, which offered UMC a revolving line of credit of NT$2 billion starting from the approval date to December 30, 2020. As of December 31, 2020 and June 30, 2020, the unused line of credit were both nil .

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Note G:

First Commercial Bank approved the 1-year credit loan on January 18, 2021, which offered UMC a revolving line of credit of NT$2 billion starting from the approval date to January 17, 2022. As of June 30, 2021, the unused line of credit was NT$1.2 billion.

Note H:

UMC entered into a 5-year loan agreement with Yuanta Commercial Bank, effective from March 3, 2021. The agreement offered UMC a revolving line of credit of NT$4 billion. This line of credit will be reduced starting from the end of the second year after the contract date and every twelve months thereafter, with a total of four adjustments. The expiration date of the agreement is March 2, 2026. As of June 30, 2021, the unused line of credit was NT$3.2 billion.

b.	Please refer to Note 8 for property, plant and equipment and right-of-use assets pledged as collateral for long-term loans.

(15)	Post-Employment Benefits

a.	Defined contribution plan

The employee pension plan under the Labor Pension Act of the R.O.C. is a defined contribution plan. Pursuant to the plan, UMC and its domestic subsidiaries make monthly contributions of 6% based on each individual employee's salary or wage to employees' pension accounts. Pension benefits for employees of the Singapore branch and subsidiaries overseas are provided in accordance with the local regulations. Total pension expenses of NT$401 million, NT$368 million, NT$802 million and NT$718 million are contributed by the Company for the three-month and six-month periods ended June 30, 2021 and 2020, respectively.

b.	Defined benefit plan

The employee pension plan mandated by the Labor Standards Act of the R.O.C. is a defined benefit plan. The pension benefits are disbursed based on the units of service years and average monthly salary prior to retirement according to the Labor Standards Act. Two units per year are awarded for the first 15 years of services while one unit per year is awarded after the completion of the 15th year and the total units will not exceed 45 units. The Company contributes an amount equivalent to 2% of the employees' total salaries and wages on a monthly basis to the pension fund deposited with the Bank of Taiwan under the name of a pension fund supervisory committee. The pension fund is managed by the government's designated authorities and therefore is not included in the Company's consolidated financial statements. For the three-month and six-month periods ended June 30, 2021 and 2020, total pension expenses of NT$6 million, NT$10 million, NT$12 million and NT$20 million, respectively, were recognized by the Company.

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(16)	Deferred Government Grants

		As of
		June 30, 2021		December 31, 2020		June 30, 2020
Beginning balance		$10,207,109		$13,551,553		$13,551,553
Arising during the period		2,428,009		578,844		332,108
Recorded in profit or loss:
Other operating income		(1,998,423)		(3,994,818)		(2,015,342)
Exchange effect		(164,599)		71,530		(373,025)
Ending balance		$10,472,096		$10,207,109		$11,495,294
Current (classified under other current liabilities)		$4,135,177		$3,836,211		$3,719,416
Noncurrent (classified under other noncurrent liabilities-others)		6,336,919		6,370,898		7,775,878
Total		$10,472,096		$10,207,109		$11,495,294

The significant government grants related to equipment acquisitions received by the Company are amortized as income over the useful lives of related equipment and recorded in the net other operating income and expenses.

(17)	Refund Liabilities (classified under other current liabilities)

		As of
		June 30, 2021		December 31, 2020		June 30, 2020
Refund liabilities		$848,989		$1,252,451		$1,748,627

(18)

Equity

a.	Capital stock:

i.

UMC had 26,000 million common shares authorized to be issued as of June 30, 2021, December 31, 2020 and June 30, 2020, of which 12,423 million shares, 12,422 million shares, and 12,222 million shares were issued as of June 30, 2021, December 31, 2020 and June 30, 2020, respectively, each at a par value of NT$10.

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ii.

UMC had 145 million, 127 million and 135 million ADSs, which were traded on the NYSE as of June 30, 2021, December 31, 2020 and June 30, 2020, respectively. The total number of common shares of UMC represented by all issued ADSs were 723 million, 636 million shares and 677 million shares as of June 30, 2021, December 31, 2020 and June 30, 2020, respectively. One ADS represents five common shares.

iii.	Please refer to Note 6(13) for the Company's conversion of unsecured convertible bonds into ordinary shares of UMC for the year ended December 31, 2020.

iv.

On June 9, 2021 and September 1, 2020, UMC issued restricted stocks for its employees in a total of 1 million shares and 200 million shares with a par value of NT$10 each, respectively. The aforementioned issuance of new shares was approved by the competent authority and the registration was completed. Please refer to Note 6(19) for the information of restricted stocks.

v.	As of Jun 30, 2021, UMC has recalled and cancelled 0.4 million shares of restricted stocks issued for employees according to the issuance plan.

b.	Treasury stock:

i.	UMC carried out a treasury stock program and repurchased its shares from the centralized securities exchange market. The purpose for the repurchase and changes in treasury stock during the six-month periods ended June 30, 2021 and 2020 were as follows:

For the six-month period ended June 30, 2021: None.

For the six-month period ended June 30, 2020

(In thousands of shares)

Purpose		As of January 1, 2020		Increase		Decrease		As of June 30, 2020
For transfer to employees		-		76,000		-		76,000

ii.

According to the Securities and Exchange Law of the R.O.C., the total shares of treasury stock shall not exceed 10% of UMC's issued stock, and the total purchase amount shall not exceed the sum of the retained earnings, additional paid-in capital-premiums and realized additional paid-in capital. As such, the number of shares of treasury stock that UMC held as of June 30, 2021, December 31, 2020 and June 30, 2020, did not exceed the limit.

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iii.

In compliance with Securities and Exchange Law of the R.O.C., treasury stock held by the parent company should not be pledged, nor should it be entitled to voting rights or receiving dividends. Stock held by subsidiaries is treated as treasury stock. These subsidiaries have the same rights as other shareholders except for subscription to new stock issuance and voting rights.

iv.

UMC's subsidiary, FORTUNE VENTURE CAPITAL CORP., held shares of UMC's stock through acquiring shares of UNITED SILICON INC. in 1997, and these shares were converted to UMC's stock in 2000 as a result of the Company's 5 in 1 merger. As of June 30, 2021, December 31, 2020 and June 30, 2020, UMC's subsidiary, FORTUNE VENTURE CAPITAL CORP., held 16 million shares of UMC's stock. The closing price on June 30, 2021, December 31, 2020 and June 30, 2020, were NT$53.10, NT$47.15 and NT$15.90, respectively.

c.	Retained earnings and dividend policies:

According to UMC's Articles of Incorporation, current year's earnings, if any, shall be distributed in the following order:

i.	Payment of taxes.

ii.	Making up loss for preceding years.

iii.	Setting aside 10% for legal reserve, except for when accumulated legal reserve has reached UMC's paid-in capital.

iv.	Appropriating or reversing special reserve by government officials or other regulations.

v.

The remaining, if applicable, may be distributed preferentially as preferred shares dividends for the current year, and if there is still a remaining balance, in addition to the previous year's unappropriated earnings, UMC shall distribute it according to the distribution plan proposed by the Board of Directors according to the dividend policy and submitted to the shareholders' meeting for approval.

Because UMC conducts business in a capital intensive industry and continues to operate in its growth phase, the dividend policy of UMC shall be determined pursuant to factors such as the investment environment, its funding requirements, domestic and overseas competitive landscape and its capital expenditure forecast, as well as shareholders' interest, balancing dividends and UMC's long-term financial planning. The Board of Directors shall propose the distribution plan and submit it to the shareholders' meeting every year. The distribution of shareholders' dividend shall be allocated as cash dividend in the range of 20% to 100%, and stock dividend in the range of 0% to 80%.

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According to the regulations of Taiwan FSC, UMC is required to appropriate a special reserve in the amount equal to the sum of debit elements under equity, such as unrealized loss on financial instruments and debit balance of exchange differences on translation of foreign operations, at every year-end. Such special reserve is prohibited from distribution. However, if any of the debit elements is reversed, the special reserve in the amount equal to the reversal may be released for earnings distribution or offsetting accumulated deficits.

The appropriation of earnings for 2020 and 2019 was approved by the shareholders' meeting held on July 7, 2021 and June 10, 2020, respectively. The details of distribution are as follows:

		Appropriation of earnings (in thousand NT dollars)		Cash dividend per share (NT dollars)
		2020		2019		2020		2019
Legal reserve		$3,197,890		$963,947
Special reserve		(2,857,666)		(3,491,626)
Cash dividends		19,875,842		9,765,155		$1.60		$0.75

The aforementioned 2020 and 2019 appropriation approved by shareholders' meeting were consistent with the resolutions of the Board of Directors meeting held on February 24, 2021 and April 27, 2020, respectively.

The appropriation of earnings for 2019 approved by the shareholders' meeting on June 10, 2020 is different from the amounts disclosed in the consolidated and parent company only financial statements for the year ended December 31, 2019 because of the additional legal reserve appropriated for the reversal of special reserve in accordance with the Rule No. 10902005780 subsequently issued by the Ministry of Economic Affairs, R.O.C. on March 3, 2020.

The cash dividend per share for 2020 was adjusted to NT$1.59988820 per share. The adjustment was due to the net increase of outstanding common shares from cancellation and issuance of the restricted stocks.

The cash dividend per share for 2019 was adjusted to NT$0.80395653 per share. The adjustment was made for the net decrease in outstanding common shares due to the share repurchase program and the conversion of convertible bonds into ordinary shares of UMC.

Please refer to Note 6(21) for information on the employees and directors' compensation.

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d.	Non-controlling interests:

		For the six-month periods ended June 30,
		2021		2020
Beginning balance		$113,356		$410,065
Attributable to non-controlling interests:
Net loss		(615,491)		(1,606,391)
Other comprehensive income (loss)		(17)		126,657
The differences between the fair value of the consideration paid or received from acquiring or disposing subsidiaries and the carrying amounts of the subsidiaries		-		106,879
Changes in subsidiaries' ownership		(6,074)		(31)
Non-controlling interests		10,442		(570,188)
Others		603,984		1,608,463
Ending balance		$106,200		$75,454

(19)	Share-Based Payment

a.	Treasury stock plan for employees

In August 2018, the Company executed a compensation plan to offer 200 million shares of treasury stock to qualified employees of UMC. The compensation cost for the shared-based payment was measured at fair value, having recognized in expense the difference between the closing quoted market price of the shares at the grant date and the cash received from employees. The closing quoted market price of the Company's shares on the grant date was NT$16.95 per share. For the stocks vested on the date of grant, the Company recognized the entire compensation cost once granted, whereas for the stocks with requisite service conditions to vest at the end of one or two years from the date of grant, the Company recognizes the compensation cost over the vesting period in which the services conditions are fulfilled, together with a corresponding increase in equity. The compensation plan had expired in September 2020. For the three-month and six-month periods ended June 30, 2020, the compensation costs of NT$38 million and NT$75 million, respectively, were recognized in expenses by the Company.

42

In September 2020, the Company executed a compensation plan to offer 105 million shares of treasury stock to qualified employees of the Company. The compensation cost for the shared-based payment was measured at fair value, having recognized in expense the difference between the closing quoted market price of the shares at the grant date and the cash received from employees. The closing quoted market price of the Company's shares on the grant date was NT$21.45 per share. For the stocks vested on the date of grant, the Company recognized the entire compensation cost once granted, whereas for the stocks with requisite service conditions to vest at the end of one year from the date of grant, the Company recognizes the compensation cost over the period in which the services conditions are fulfilled, together with a corresponding increase in equity. For the three-month and six-month periods ended June 30, 2021, the compensation costs of NT$74 million and NT$147 million, respectively, were recognized in expenses by the Company.

b.	Restricted stock plan for employees

On June 10, 2020, the shareholders approved a compensation plan in their meeting to issue restricted stocks to qualified employees of UMC without consideration. The maximum shares to be issued are 233 million common shares. The Company is authorized to issue restricted stocks in one tranche or in installments, under the custody of trust institution, within one year from the date of receiving the effective registration from the competent authority.

The issuance plan was authorized for effective registration by the Securities and Futures Bureau of the FSC and accordingly, 1 million shares and 200 million shares of restricted stock for employees were issued without consideration on June 9, 2021 and September 1, 2020, respectively. The life of the plan is four years. Beginning from the end of two years since the date of grant, those employees who fulfill both service period and performance conditions set by the Company are gradually eligible to the vested restricted stocks at certain percentage and time frame. For those employees who fail to fulfill the vesting conditions, the Company will recall and cancel their stocks without consideration. During the vesting period, the restricted stock holders are entitled the same rights as those of common stock holders including the right to receive dividends, but are restricted to sell, pledge, set guarantee, transfer, grant, or dispose the restricted stocks in any other ways. Related information can be obtained from the 'Market Observation Post System' on the website of the TWSE.

43

The aforementioned compensation costs for the equity-settled share-based payment were measured at fair value based on the closing quoted market price of the shares on the grant date, NT$53.0 and NT$21.8 per share, respectively. The unvested restricted stocks issued on the grant date for employees are recognized in unearned employee compensation as a transitional contra equity account and such account shall be amortized as compensation expense over the vesting period. For the three-month and six-month periods ended June 30, 2021, the compensation costs of NT$377 million and NT$749 million, respectively, were recognized in expenses by the Company.

c.	Stock appreciation right plan for employees

In June 2021 and September 2020, the Company executed a compensation plan to grant 1 million units and 26 million units of cash-settled stock appreciation right to qualified employees of the Company without consideration, respectively. One unit of stock appreciation right to employees represents a right to the intrinsic value of one common share of UMC. The life of the plan is four years. Beginning from the end of two years since the date of grant, those employees who fulfill both service period and performance conditions set by the Company are gradually eligible to the vested stock appreciation right at certain percentage and time frame. For those employees who fail to fulfill the vesting conditions, the Company will withdraw their rights without consideration. During the vesting period, the holders of the stock appreciation right are not entitled the same rights as those of common stock holders of UMC.

The compensation cost for the cash-settled share-based payment was measured at fair value on the grant date by using Black-Scholes Option Pricing Model and will be remeasured at the end of each reporting period until settlement. As of June 30, 2021, the assumptions used are as below:

		Granted in June 2021		Granted in September 2020
Share price of measurement date (NT$/ per share)		$53.10		$53.10
Expected volatility		36.56%~42.02%		38.48%~50.02%
Expected life		1.94~3.94 years		1.17~3.17 years
Expected dividend yield		4.73%		4.73%
Risk-free interest rate		0.14%~0.26%		0.13%~0.21%

For the three-month and six-month periods ended June 30, 2021, the compensation costs of NT$85 million and NT$147 million, respectively, were recognized in expenses by the Company. As of June 30, 2021, the liabilities for stock appreciation right recognized amounted to NT$226 million. The intrinsic value for the liabilities of vested rights was nil.

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(20)	Operating Revenues

a.	Disaggregation of revenue

i.	By Product

		For the three-month periods ended June 30,
		2021		2020
Wafer		$48,718,541		$42,792,135
Others		2,189,200		1,594,125
Total		$50,907,741		$44,386,260

		For the six-month periods ended June 30,
		2021		2019
Wafer		$94,238,813		$83,492,268
Others		3,765,940		3,161,839
Total		$98,004,753		$86,654,107

ii.	By geography

		For the three-month periods ended June 30,
		2021		2020
Taiwan		$18,602,462		$16,690,857
Singapore		6,949,355		5,779,996
China (includes Hong Kong)		7,529,021		5,294,983
Japan		3,468,493		4,680,048
USA		5,864,947		6,822,056
Europe		1,442,195		1,226,128
Others		7,051,268		3,892,192
Total		$50,907,741		$44,386,260

		For the six-month periods ended June 30,
		2021		2020
Taiwan		$36,487,081		$32,891,668
Singapore		13,813,534		11,844,156
China (includes Hong Kong)		13,907,024		10,010,141
Japan		6,415,504		9,477,055
USA		11,497,168		12,758,816
Europe		2,737,674		2,289,389
Others		13,146,768		7,382,882
Total		$98,004,753		$86,654,107

45

The geographic breakdown of the Company's operating revenues was based on the location of the Company's customers.

iii.	By the timing of revenue recognition

		For the three-month periods ended June 30,
		2021		2020
At a point in time		$50,451,503		$43,840,400
Over time		456,238		545,860
Total		$50,907,741		$44,386,260

		For the six-month periods ended June 30,
		2021		2020
At a point in time		$97,112,100		$85,773,651
Over time		892,653		880,456
Total		$98,004,753		$86,654,107

b.	Contract balances

i.	Contract assets, current

		As of
		June 30, 2021		December 31, 2020		June 30, 2020		December 31, 2019
Sales of goods and services		$618,130		$625,222		$669,833		$599,491
Less: Loss allowance		(359,547)		(367,381)		(379,162)		(385,248)
Net		$258,583		$257,841		$290,671		$214,243

The loss allowance was assessed by the Company primarily at an amount equal to lifetime expected credit losses. The loss allowance was mainly resulted from the suspension of the joint technology development agreement as disclosed in Note 9(7).

46

ii.	Contract liabilities

		As of
		June 30, 2021		December 31, 2020		June 30, 2020		December 31, 2019
Sales of goods and services		$3,330,470		$2,497,469		$2,118,795		$1,470,195
Current		$2,883,910		$2,040,989		$1,643,915		$988,115
Noncurrent		446,560		456,480		474,880		482,080
Total		$3,330,470		$2,497,469		$2,118,795		$1,470,195

The movement of contract liabilities is mainly caused by the timing difference of the satisfaction of a performance of obligation and the consideration received from customers.

The Company recognized NT$881 million and NT$482 million, respectively, in revenues from the contract liabilities balance at the beginning of the period as performance obligations were satisfied for the six-month periods ended June 30, 2021 and 2020.

c.

The Company's transaction price allocated to unsatisfied performance obligations amounted to NT$199 million and NT$2,878 million as of June 30, 2021 and 2020, respectively. The Company will recognize revenue as the Company satisfies its performance obligations over time that aligns with progress toward completion of a contract in the future. As of the report date, the joint technology development agreement was partially suspended as disclosed in Note 9(7) and the contract was due in May 2021. The estimate of the transaction price does not include any estimated amounts of variable consideration that are constrained.

d.	Asset recognized from costs to fulfill a contract with customer

As of June 30, 2021, December 31, 2020 and June 30, 2020, the Company recognized costs to fulfill engineering service contracts eligible for capitalization as other current assets which amounted to NT$815 million, NT$549 million and NT$930 million, respectively. Subsequently, the Company will expense from costs to fulfill a contract to operating costs when the related obligations are satisfied.

47

(21)	Operating Costs and Expenses

The Company's employee benefit, depreciation and amortization expenses are summarized as follows:

		For the three-month periods ended June 30,
		2021		2020
		Operating costs		Operating expenses		Total		Operating costs		Operating expenses		Total
Employee benefit expenses
Salaries		$5,671,395		$2,835,844		$8,507,239		$4,918,014		$2,089,122		$7,007,136
Labor and health insurance		281,886		110,090		391,976		270,691		121,202		391,893
Pension		308,101		98,700		406,801		279,468		98,240		377,708
Other employee benefit expenses		69,353		26,080		95,433		54,514		27,548		82,062
Depreciation		10,421,055		473,857		10,894,912		11,030,970		485,527		11,516,497
Amortization		208,890		499,695		708,585		223,808		441,764		665,572

		For the six-month periods ended June 30,
		2021		2020
		Operating costs		Operating expenses		Total		Operating costs		Operating expenses		Total
Employee benefit expenses
Salaries		$11,024,317		$5,494,196		$16,518,513		$9,830,245		$4,212,210		$14,042,455
Labor and health insurance		574,176		235,779		809,955		536,590		230,015		766,605
Pension		614,330		198,782		813,112		551,677		185,999		737,676
Other employee benefit expenses		130,964		53,445		184,409		118,995		56,556		175,551
Depreciation		21,015,740		947,103		21,962,843		22,287,246		997,268		23,284,514
Amortization		425,168		981,046		1,406,214		454,280		872,912		1,327,192

48

According to UMC's Articles of Incorporation, the employees and directors' compensation shall be distributed in the following order:

UMC shall allocate no less than 5% of profit as employees' compensation and no more than 0.2% of profit as directors' compensation for each profitable fiscal year after offsetting any cumulative losses. The aforementioned employees' compensation will be distributed in shares or cash. The employees of UMC's subsidiaries who fulfill specific requirements stipulated by the Board of Directors may be granted such compensation. Directors may only receive compensation in cash. UMC may, by a resolution adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors, distribute the aforementioned employees and directors' compensation and report to the shareholders' meeting for such distribution.

The Company recognizes the employees and directors' compensation in the profit or loss during the periods when earned for the six-month periods ended June 30, 2021 and 2020. 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 number of stock distributed is calculated based on total employee compensation divided by the closing price of the day before the Board of Directors meeting. If the Board of Directors subsequently modifies the estimates significantly, the Company will recognize the change as an adjustment in the profit or loss in the subsequent period.

The distributions of employees and directors' compensation for 2020 and 2019 were reported to the shareholders' meeting on July 7, 2021 and June 10, 2020, respectively. The details of distribution are as follows:

		2020		2019
Employees' compensation - Cash		$2,581,675		$1,132,952
Directors' compensation		32,369		10,259

The aforementioned 2020 and 2019 employees and directors' compensation reported during the shareholders' meeting were consistent with the resolutions of meeting of Board of Directors held on February 24, 2021 and February 26, 2020.

Information relevant to the aforementioned employees and directors' compensation can be obtained from the 'Market Observation Post System' on the website of the TWSE.

49

(22)	Net Other Operating Income and Expenses

		For the three-month periods ended June 30,
		2021		2020
Government grants		$1,645,305		$1,293,201
Rental income from property		48,183		50,152
Gain on disposal of property, plant and equipment		5,352		3,655
Others		(92,604)		(81,107)
Total		$1,606,236		$1,265,901

		For the six-month periods ended June 30,
		2021		2020
Government grants		$2,718,320		$2,327,289
Rental income from property		97,390		100,320
Gain on disposal of property, plant and equipment		24,548		13,504
Others		(174,374)		(161,528)
Total		$2,665,884		$2,279,585

(23)	Non-Operating Income and Expenses

a.	Other gains and losses

		For the three-month periods ended June 30,
		2021		2020
Gain on valuation of financial assets and liabilities at fair value through profit or loss		$822,210		$623,963
Loss on disposal of investments		(789)		(49,305)
Others		15,075		(93,893)
Total		$836,496		$480,765

		For the six-month periods ended June 30,
		2021		2020
Gain (loss) on valuation of financial assets and liabilities at fair value through profit or loss		$2,581,357		$(512,692)
Loss on disposal of investments		(10,977)		(43,429)
Others		43,113		(181,239)
Total		$2,613,493		$(737,360)

50

b.	Finance costs

		For the three-month periods ended June 30,
		2021		2020
Interest expenses
Bonds payable		$73,741		$92,539
Bank loans		352,468		377,479
Lease liabilities		36,765		40,436
Others		27		11,126
Financial expenses		15,988		13,502
Total		$478,989		$535,082

		For the six-month periods ended June 30,
		2021		2020
Interest expenses
Bonds payable		$137,202		$250,271
Bank loans		639,762		766,917
Lease liabilities		74,518		75,847
Others		86		47,178
Financial expenses		33,670		28,768
Total		$885,238		$1,168,981

(24)	Components of Other Comprehensive Income (Loss)

		For the three-month period ended June 30, 2021
		Arising during the period		Reclassification adjustments during the period		Other comprehensive income (loss), before tax		Income tax effect		Other comprehensive income (loss), net of tax
Items that will not be reclassified subsequently to profit or loss:
Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income		$(384,002)		$-		$(384,002)		$(27,393)		$(411,395)
Share of other comprehensive income (loss) of associates and joint ventures which will not be reclassified subsequently to profit or loss		723,178		-		723,178		-		723,178

51

Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations		$(2,232,217)		$-		$(2,232,217)		$16,009		$(2,216,208)
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss		(34,867)		(381)		(35,248)		4,769		(30,479)
Total other comprehensive income (loss)		$(1,927,908)		$(381)		$(1,928,289)		$(6,615)		$(1,934,904)

		For the three-month period ended June 30, 2020
		Arising during the period		Reclassification adjustments during the period		Other comprehensive income (loss), before tax		Income tax effect		Other comprehensive income (loss), net of tax
Items that will not be reclassified subsequently to profit or loss:
Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income		$4,470,138		$-		$4,470,138		$14,299		$4,484,437
Share of other comprehensive income (loss) of associates and joint ventures which will not be reclassified subsequently to profit or loss		547,790		-		547,790		-		547,790
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations		(1,857,385)		-		(1,857,385)		12,627		(1,844,758)
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss		(24,631)		11,479		(13,152)		3,552		(9,600)
Total other comprehensive income (loss)		$3,135,912		$11,479		$3,147,391		$30,478		$3,177,869

52

		For the six-month period ended June 30, 2021
		Arising during the period		Reclassification adjustments during the period		Other comprehensive income (loss), before tax		Income tax effect		Other comprehensive income (loss), net of tax
Items that will not be reclassified subsequently to profit or loss:
Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income		$3,792,383		$-		$3,792,383		$(60,695)		$3,731,688
Share of other comprehensive income (loss) of associates and joint ventures which will not be reclassified subsequently to profit or loss		1,598,917		-		1,598,917		-		1,598,917
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations		(3,690,738)		2,283		(3,688,455)		15,282		(3,673,173)
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss		(40,443)		(381)		(40,824)		4,478		(36,346)
Total other comprehensive income (loss)		$1,660,119		$1,902		$1,662,021		$(40,935)		$1,621,086

		For the six-month period ended June 30, 2020
		Arising during the period		Reclassification adjustments during the period		Other comprehensive income (loss), before tax		Income tax effect		Other comprehensive income (loss), net of tax
Items that will not be reclassified subsequently to profit or loss:
Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income		$1,364,381		$-		$1,364,381		$56,899		$1,421,280
Share of other comprehensive income (loss) of associates and joint ventures which will not be reclassified subsequently to profit or loss		(41,099)		-		(41,099)		-		(41,099)

53

Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations		$(1,917,606)		$-		$(1,917,606)		$10,099		$(1,907,507)
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss		(23,652)		11,479		(12,173)		3,101		(9,072)
Total other comprehensive income (loss)		$(617,976)		$11,479		$(606,497)		$70,099		$(536,398)

(25)	Income Tax

a.	The major components of income tax expense (benefit) for the three-month and six-month periods ended June 30, 2021 and 2020 were as follows:

i.	Income tax expense (benefit) recorded in profit or loss

		For the three-month periods ended June 30,
		2021		2020
Current income tax expense (benefit):
Current income tax charge		$924,979		$247,556
Adjustments in respect of current income tax of prior periods		116,047		44,798
Deferred income tax expense (benefit):
Deferred income tax related to origination and reversal of temporary differences		171,001		39,720
Deferred income tax related to recognition and derecognition of tax losses and unused tax credits		387,172		426,861
Adjustment of prior year's deferred income tax		(269,443)		(184,446)
Deferred income tax arising from write-down or reversal of write-down of deferred tax assets		(1,986)		38,510
Income tax expense recorded in profit or loss		$1,327,770		$612,999

54

		For the six-month periods ended June 30,
		2021		2020
Current income tax expense (benefit):
Current income tax charge		$1,560,856		$431,597
Adjustments in respect of current income tax of prior periods		85,992		(790,350)
Deferred income tax expense (benefit):
Deferred income tax related to origination and reversal of temporary differences		311,997		289,343
Deferred income tax related to recognition and derecognition of tax losses and unused tax credits		789,357		551,616
Adjustment of prior year's deferred income tax		(308,460)		(294,758)
Deferred income tax arising from write-down or reversal of write-down of deferred tax assets		(17,801)		17,122
Income tax expense recorded in profit or loss		$2,421,941		$204,570

ii.	Income tax related to components of other comprehensive income (loss)

(i)	Items that will not be reclassified subsequently to profit or loss:

		For the three-month periods ended June 30,
		2021		2020
Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income		$(27,393)		$14,299

		For the six-month periods ended June 30,
		2021		2020
Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income		$(60,695)		$56,899

55

(ii)	Items that may be reclassified subsequently to profit or loss:

		For the three-month periods ended June 30,
		2021		2020
Exchange differences on translation of foreign operations		$16,009		$12,627
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss		4,769		3,552
Income tax related to items that may be reclassified subsequently to profit or loss		$20,778		$16,179

		For the six-month periods ended June 30,
		2021		2020
Exchange differences on translation of foreign operations		$15,282		$10,099
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss		4,478		3,101
Income tax related to items that may be reclassified subsequently to profit or loss		$19,760		$13,200

iii.	Deferred income tax charged directly to equity

		For the three-month periods ended June 30,
		2021		2020
Recognition of temporary difference arising from initial recognition of the equity component of the compound financial instrument		$-		$-

		For the six-month periods ended June 30,
		2021		2020
Recognition of temporary difference arising from initial recognition of the equity component of the compound financial instrument		$-		$3,691

56

b.

The Company is subject to taxation in Taiwan and other foreign jurisdictions. As of June 30, 2021, income tax returns of UMC and its subsidiaries in Taiwan have been examined by the tax authorities through 2018, while in other foreign jurisdictions, relevant tax authorities have completed the examination through 2012. There is an uncertain tax position that the outcome of the income tax returns of certain companies within the Company may not be accepted by the tax authorities of the respective countries of operations. For the recognition and measurement of deferred income tax and current income tax which involved significant accounting judgments, estimates and assumptions, please refer to Note 5(5) of the Company's consolidated financial statements for the year ended December 31, 2020.

(26)	Earnings Per Share

a.	Earnings per share-basic

		For the three-month periods ended June 30,
		2021		2020
Net income attributable to the parent company		$11,943,075		$6,680,784
Weighted-average number of ordinary shares for basic earnings per share (thousand shares)		12,206,293		12,193,150
Earnings per share-basic (NTD)		$0.98		$0.55

		For the six-month periods ended June 30,
		2021		2020
Net income attributable to the parent company		$22,370,990		$8,887,714
Weighted-average number of ordinary shares for basic earnings per share (thousand shares)		12,206,293		11,988,043
Earnings per share-basic (NTD)		$1.83		$0.74

57

b.	Earnings per share-diluted

		For the three-month periods ended June 30,
		2021		2020
Net income attributable to the parent company		$11,943,075		$6,680,784
Weighted-average number of common stocks for basic earnings per share (thousand shares)		12,206,293		12,193,150
Effect of dilution
Restricted stocks for employees		141,305		-
Employees' compensation		34,995		69,624
Weighted-average number of common stocks after dilution (thousand shares)		12,382,593		12,262,774
Earnings per share-diluted (NTD)		$0.96		$0.54

		For the six-month periods ended June 30,
		2021		2020
Net income attributable to the parent company		$22,370,990		$8,887,714
Effect of dilution
Unsecured convertible bonds		-		69,019
Income attributable to shareholders of the parent		$22,370,990		$8,956,733
Weighted-average number of common stocks for basic earnings per share (thousand shares)		12,206,293		11,988,043
Effect of dilution
Restricted stocks for employees		140,592		-
Employees' compensation		48,799		91,549
Unsecured convertible bonds		-		610,596
Weighted-average number of common stocks after dilution (thousand shares)		12,395,684		12,690,188
Earnings per share-diluted (NTD)		$1.80		$0.71

58

(27)	Reconciliation of Liabilities Arising from Financing Activities

For the six-month period ended June 30, 2021:

						Non-cash changes
Items		As of January 1, 2021		Cash Flows		Foreign exchange		Others (Note A)		As of June 30, 2021
Short-term loans		$11,057,132		$(5,508,845)		$(161,986)		$-		$5,386,301
Long-term loans (current portion included)		33,066,106		6,492,270		(609,424)		-		38,948,952
Bonds payable (current portion included)		18,690,384		7,589,085		-		1,744		26,281,213
Guarantee deposits (current portion included)		235,992		7,586,543		(4,003)		-		7,818,532
Lease liabilities		5,576,864		(350,626)		(117,824)		215,897		5,324,311
Other financial liabilities-noncurrent		20,746,624		-		(330,305)		190,412		20,606,731

For the six-month period ended June 30, 2020:

						Non-cash changes
Items		As of January 1, 2020		Cash Flows		Foreign exchange		Others (Note A)		As of June 30, 2020
Short-term loans		$12,015,206		$(2,202,180)		$(248,291)		$47,060		$9,611,795
Long-term loans (current portion included)		33,902,074		9,122,191		(505,580)		-		42,518,685
Bonds payable (current portion included)		38,781,416		(13,702,875)		-		(6,389,554) (Note B)		18,688,987
Guarantee deposits (current portion included)		296,694		121,834		(2,609)		-		415,919
Lease liabilities		6,031,025		(366,401)		(98,125)		385,112		5,951,611
Other financial liabilities-noncurrent		20,093,441		-		(589,755)		183,906		19,687,592

Note A: Other non-cash changes mainly consisted of discount amortization measured by the effective interest method.

Note B: Please refer to Note 6(13) for the Company's convertible bonds.

Note C: Please refer to Note 9(6) for more details on other financial liabilities-noncurrent.

59

(28)	Deconsolidation of Subsidiaries

NEXPOWER TECHNOLOGY CORP. (NEXPOWER)

NEXPOWER, the subsidiary of UMC, was resolved for dissolution and liquidation by the shareholder's meeting on November 11, 2020 and the liquidator took control on the same day. According to IFRS 10 and related questions and answers issued, the Company has lost control over NEXPOWER and therefore derecognized its relevant assets and liabilities at the date when the control was lost.

a.	Derecognized assets and liabilities mainly consisted of:

Assets
Cash and cash equivalents		$776,586
Others current assets		18
		776,604
Liabilities
Other payables		(194)
		(194)
Net assets of deconsolidation		$776,410

b.	Consideration received and gain recognized from the deconsolidation:

Receivable from liquidation consideration (Note A)		$724,845
Less: Net assets of the deconsolidation		(776,410)
Add: Non-controlling interests		51,565
Other comprehensive income from equity reclassified to profit or loss due to derecognition		4,061
Gain on deconsolidation (Note B)		$4,061

Note A: NEXPOWER was deconsolidated when the control was lost. As of June 30, 2021, the Company has received NT$370 million from liquidation consideration.

Note B: Gain on deconsolidation for the year ended December 31, 2020 was recognized as other gains and losses in the consolidated statement of comprehensive income.

c.	Analysis of net cash outflow arising from deconsolidation of the subsidiary:

Cash received		$369,576
Net cash of subsidiary derecognized		(776,586)
Net cash outflow from deconsolidation		$(407,010)

60

7.	RELATED PARTY TRANSACTIONS

The following is a summary of transactions between the Company and related parties during the financial reporting periods:

(1)	Name and Relationship of Related Parties

Name of related parties		Relationship with the Company
FARADAY TECHNOLOGY CORP. and its Subsidiaries		Associate
HSUN CHIEH INVESTMENT CO., LTD.		Associate
UNIMICRON TECHNOLOGY CORP.		Associate
SILICON INTEGRATED SYSTEMS CORP.		The Company's director
PHOTRONICS DNP MASK CORPORATION		Other related parties
UNITEDVISION SEMICONDUCTOR CO., LTD.		Other related parties
UPI SEMICONDUCTOR CORP.		Other related parties

(2)	Significant Related Party Transactions

a.	Operating transactions

Operating revenues

		For the three-month periods ended June 30,
		2021		2020
Associates		$583,654		$456,547
Others		10,541		4,409
Total		$594,195		$460,956

		For the six-month periods ended June 30,
		2021		2020
Associates		$1,158,843		$916,335
Others		18,074		8,584
Total		$1,176,917		$924,919

Accounts receivable, net

		As of
		June 30, 2021		December 31, 2020		June 30, 2020
Associates		$309,185		$172,808		$252,487
Others		8,853		6,110		4,037
Total		$318,038		$178,918		$256,524

61

The sales price to the above related parties was determined through mutual agreement in reference to market conditions. The collection period for domestic sales to related parties were month-end 30~60 days, while the collection period for overseas sales was net 30~60 days.

Refund liabilities (classified under other current liabilities)

		As of
		June 30, 2021		December 31, 2020		June 30, 2020
Associates		$1,422		$1,186		$2,385
Others		35		36		18
Total		$1,457		$1,222		$2,403

b.	Significant asset transactions

Acquisition of financial assets at fair value through profit or loss, noncurrent

For the three-month period ended June 30, 2021: None.

						Purchase price
		Trading Volume (In thousands of shares)		Transaction underlying		For the six-month period ended June 30, 2021
Associates		82		Stock of ARTERY TECHNOLOGY CORPORATION (CAYMAN)		$13,929

For the three-month period ended June 30, 2020: None.

						Purchase price
		Trading Volume (In thousands of shares)		Transaction underlying		For the six-month period ended June 30, 2020
Associates		1,000		Stock of WELLYSUN INC.		$25,000

Acquisition of intangible assets

		Purchase price
		For the three-month periods ended June 30,
		2021		2020
Associates		$108,401		$129,758

62

		Purchase price
		For the six -month periods ended June 30,
		2021		2020
Associates		$114,971		$191,561

c.

Others

Mask expenditure

		For the three-month periods ended June 30,
		2021		2020
Others		$554,522		$462,046

		For the six -month periods ended June 30,
		2021		2020
Others		$935,049		$1,006,635

Other payables of mask expenditure

		As of
		June 30, 2021		December 31, 2020		June 30, 2020
Others		$631,434		$532,810		$578,687

d.	Key management personnel compensation

		For the three-month periods ended June 30,
		2021		2020
Short-term employee benefits		$111,880		$78,970
Post-employment benefits		501		614
Share-based payment		333,397		6,630
Others		144		-
Total		$445,922		$86,214

		For the six-month periods ended June 30,
		2021		2020
Short-term employee benefits		$310,804		$194,979
Post-employment benefits		998		1,190
Termination benefits		-		283
Share-based payment		596,444		13,216
Others		290		144
Total		$908,536		$209,812

63

8.	ASSETS PLEDGED AS COLLATERAL

The following table lists assets of the Company pledged as collateral:

As of June 30, 2021, December 31, 2020 and June 30, 2020

		Carrying Amount
		As of
		June 30, 2021		December 31, 2020		June 30, 2020		Party to which asset(s) was pledged		Purpose of pledge
Refundable Deposits (Time deposit)		$811,660		$811,072		$811,072		Customs		Customs duty guarantee
Refundable Deposits (Time deposit)		234,286		234,286		234,286		Science Park Bureau		Collateral for land lease
Refundable Deposits (Time deposit)		20,619		18,215		18,215		Science Park Bureau		Collateral for dormitory lease
Refundable Deposits (Time deposit)		28,135		41,785		41,785		Liquefied Natural Gas Business Division, CPC Corporation, Taiwan		Energy resources guarantee
Refundable Deposits (Time deposit)		1,000,000		1,000,000		1,000,000		Bank of China		Bank performance guarantee
Refundable Deposits (Time deposit)		8,428		-		-		Chang Hwa Commercial Bank		Collateral for short-term loans and letter of credit
Refundable Deposits (Bank deposit)		-		-		2,958		Chang Hwa Commercial Bank		Collateral for short-term loans
Buildings		5,100,487		5,310,769		5,105,087		Taiwan Cooperative Bank and Secured Syndicated Loans from China Development Bank and 6 others		Collateral for long-term loans
Machinery and equipment		30,894,155		21,370,450		15,677,722		Taiwan Cooperative Bank, Mega International Commercial Bank and Secured Syndicated Loans from China Development Bank and 6 others		Collateral for long-term loans
Transportation equipment		2,455		3,174		-		Secured Syndicated Loans from China Development Bank and 6 others		Collateral for long-term loans
Furniture and fixtures		218,707		281,663		-		Secured Syndicated Loans from China Development Bank and 6 others		Collateral for long-term loans
Right-of-use assets		282,199		289,552		280,335		Secured Syndicated Loans from China Development Bank and 6 others		Collateral for long-term loans
Total		$38,601,131		$29,360,966		$23,171,460

64

9.	SIGNIFICANT CONTINGENCIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(1)	As of June 30, 2021, amounts available under unused letters of credit for importing machinery and equipment were NT$0.5 billion.

(2)	As of June 30, 2021, the Company entrusted financial institutes to open performance guarantee, mainly related to the litigations and customs tax guarantee, amounting to NT$ 1.6 billion.

(3)	The Company entered into several patent license agreements and development contracts of intellectual property for a total contract amount of approximately NT$ 3.8 billion. As of June 30, 2021, the portion of royalties and development fees not yet recognized was NT$ 1.0 billion.

(4)	The Company entered into several construction contracts for the expansion of its operations. As of June 30, 2021, these construction contracts amounted to approximately NT$6.6 billion and the portion of the contracts not yet recognized was approximately NT$ 5.7 billion.

(5)	The Company entered into several wafer-processing contracts with its customers. According to the contracts, the Company shall provide agreed production capacity with the customers after they prepay the deposits.

(6)

The Board of Directors of UMC resolved in October 2014 to participate in a 3-way agreement with Xiamen Municipal People's Government and FUJIAN ELECTRONIC & INFORMATION GROUP to form a company which will focus on 12'' wafer foundry services. The Company obtained R.O.C. government authority's approval for the investment and invested RMB 8.3 billion in USCXM in instalments from January 2015 to September 2018, according to the agreement that the Company obtained the ability to exercise control. Furthermore, based on the agreement, UMC recognized a financial liability in other noncurrent liabilities-others for the purchase from the other investors of their investments in USCXM at their original investment cost plus interest totally amounting to RMB 4.9 billion, beginning from the seventh year (2022) following the last instalment payment made by the other investors. Accordingly, the Company recognizes non-controlling interests as required by IFRS 10 during the reporting period. At the end of each reporting period, the Company recognizes a financial liability for its commitment to the other investors in accordance with IFRS 9, at the same time derecognizing the non-controlling interests. Any difference between the financial liability and the non-controlling interests balance is recognized in equity.

65

(7)

On August 31, 2017, the Taichung District Prosecutors Office indicted UMC based on the Trade Secret Act of R.O.C., alleging that employees of UMC misappropriated the trade secrets of MICRON TECHNOLOGY, INC. ('MICRON'). On June 12, 2020, an adverse ruling issued by the District Court of Taichung in a suit alleged that UMC, two of its current employees and a former employee engaged in the misappropriation of trade secrets. The Company does not expect material financial impact resulting from this claim. UMC appealed against the sentence.

On December 5, 2017, MICRON filed a civil action with similar cause against UMC with the United States District Court, Northern District of California. MICRON claimed entitlement to the actual damages, treble damages and relevant fees and requested the court to issue an order that enjoins UMC from using its trade secrets in question. UMC has appointed counsels to prepare answers against these charges. Currently the civil complaint has been stayed by the court.

On January 12, 2018, UMC filed three patent infringement actions with the Fuzhou Intermediate People's Court against, among others, MICRON (XI'AN) CO., LTD. and MICRON (SHANGHAI) TRADING CO., LTD., requesting the court to order the defendants to stop manufacturing, processing, importing, selling, and committing to sell the products deploying the infringing patents in questions, and also to destroy all inventories and related molds and tools. On July 3, 2018, the Fuzhou Intermediate People's Court granted preliminary injunction against the aforementioned two defendants, holding that the two defendants must immediately cease to manufacture, sell, and import products that infringe the patent rights of UMC. The court approved withdrawal of one of the patent infringement actions on our motion while the other two actions are still on trial.

(8)

On March 14, 2019, a putative class action styled Kevin D. Meyer v. United Microelectronics Corporation and several executives, was filed under Securities Exchange Act of 1934 and Rule 10b-5 in the United States District Court for the Southern District of New York. The court approved the settlement reached between the plaintiffs and the defendants on May 3, 2021 EST. According to the court approved settlement, UMC shall pay USD 3 million as the settlement fund to be allocated to the class plaintiffs and reimbursed of the expenses and class counsel fees. The reimbursement, which was recorded in non-operating other losses for the year of 2020, has no material effect on finances and business.

10.	SIGNIFICANT DISASTER LOSS

None.

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11.	SIGNIFICANT SUBSEQUENT EVENTS

None.

12.

OTHERS

(1)	Categories of financial instruments

		As of
Financial Assets		June 30, 2021		December 31, 2020		June 30, 2020
Financial assets at fair value through profit or loss		$18,473,446		$16,042,721		$13,897,672
Financial assets at fair value through other comprehensive income		14,318,527		10,526,144		7,075,163
Financial assets measured at amortized cost
Cash and cash equivalents (excludes cash on hand)		123,994,489		94,042,271		99,865,658
Receivables		31,350,774		28,942,147		28,098,633
Refundable deposits		2,265,239		2,310,961		2,414,271
Other financial assets		25,030,294		14,386,131		10,307,452
Total		$215,432,769		$166,250,375		$161,658,849

		As of
Financial Liabilities		June 30, 2021		December 31, 2020		June 30, 2020
Financial liabilities at fair value through profit or loss		$2,067		$2,326		$771
Financial liabilities measured at amortized cost
Short-term loans		5,386,301		11,057,132		9,611,795
Payables		54,456,613		31,188,794		38,835,522
Guarantee deposits (current portion included)		7,818,532		235,992		415,919
Bonds payable (current portion included)		26,281,213		18,690,384		18,688,987
Long-term loans (current portion included)		38,948,952		33,066,106		42,518,685
Lease liabilities		5,324,311		5,576,864		5,951,611
Other financial liabilities		20,606,731		20,746,624		19,687,592
Total		$158,824,720		$120,564,222		$135,710,882

67

(2)	Financial risk management objectives and policies

The Company's risk management objectives are to manage the market risk, credit risk and liquidity risk related to its operating activities. The Company identifies, measures and manages the aforementioned risks based on policy and risk preference.

The Company has established appropriate policies, procedures and internal controls for financial risk management. Before entering into significant financial activities, approval process by the Board of Directors and Audit Committee must be carried out based on related protocols and internal control procedures. The Company complies with its financial risk management policies at all times.

(3)	Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risks comprise currency risk, interest rate risk and other price risk (such as equity price risk).

Foreign currency risk

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.

The Company applies natural hedges on the foreign currency risk arising from purchases or sales, and utilizes spot or forward exchange contracts to manage foreign currency risk and the net effect of the risks related to monetary financial assets and liabilities is minor. The notional amounts of the foreign currency contracts are the same as the amount of the hedged items. In principle, the Company does not carry out any forward exchange contracts for uncertain commitments. Furthermore, as net investments in foreign subsidiaries are for strategic purposes, they are not hedged by the Company.

The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Company's profit is performed on significant monetary items denominated in foreign currencies as of the end of the reporting period. When NTD strengthens/weakens against USD by 10%, the profit for the six-month periods ended June 30, 2021 and 2020 decreases/increases by NT$797 million and NT$1,324 million, respectively. When RMB strengthens/weakens against USD by 10%, the profit for the six-month periods ended June 30, 2021 and 2020 increases/decreases by NT$1,144 million and NT$1,784 million, respectively. When JPY strengthens/weakens against USD by 10%, the profit for the six-month periods ended June 30, 2021 and 2020 decreases/increases by NT$357 million and NT$602 million, respectively.

68

Interest rate risk

The Company is exposed to interest rate risk arising from borrowing at floating interest rates. All of the Company's bonds have fixed interest rates and are measured at amortized cost. As such, changes in interest rates would not affect the future cash flows. On the other hand, as the interest rates of the Company's short-term and long-term bank loans are floating, changes in interest rates would affect the future cash flows but not the fair value. Please refer to Note 6(11), 6(13) and 6(14) for the range of interest rates of the Company's bonds and bank loans.

At the reporting dates, a change of 10 basis points of interest rate in a reporting period could cause the profit for the six-month periods ended June 30, 2021 and 2020 to decrease/increase by NT$22 million and NT$26 million, respectively.

Equity price risk

The Company's listed and unlisted equity securities are susceptible to market price risk arising from uncertainties about future performance of equity markets. The Company's equity investments are classified as financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income.

The sensitivity analysis for the equity instruments is based on the change in fair value as of the reporting date. A change of 5% in the price of the aforementioned financial assets at fair value through profit or loss of listed companies could increase/decrease the Company's profit for the six-month periods ended June 30, 2021 and 2020 by NT$321 million and NT$247 million, respectively. A change of 5% in the price of the aforementioned financial assets at fair value through other comprehensive income of listed companies could increase/decrease the Company's other comprehensive income for the six-month periods ended June 30, 2021 and 2020 by NT$624 million and NT$295 million, respectively.

(4)	Credit risk management

The Company only trades with approved and creditworthy third parties. Where the Company trades with third parties which have less credit, it will request collateral from them. It is the Company's policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, notes and accounts receivable balances are monitored on an ongoing basis to decrease the Company's exposure to credit risk.

The Company mitigates the credit risks from financial institutions by limiting its counter parties to only reputable domestic or international financial institutions with good credit standing and spreading its holdings among various financial institutions. The Company's exposure to credit risk arising from the default of counter-parties is limited to the carrying amount of these instruments.

69

As of June 30, 2021, December 31, 2020 and June 30, 2020, accounts receivable from the top ten customers represent 60%, 62% and 55% of the total accounts receivable of the Company, respectively. The credit concentration risk of other accounts receivable is insignificant.

(5)	Liquidity risk management

The Company's objectives are to maintain a balance between continuity of funding and flexibility through the use of cash and cash equivalents, bank loans, bonds and lease.

The table below summarizes the maturity profile of the Company's financial liabilities based on the contractual undiscounted payments and contractual maturity:

		As of June 30, 2021
		Less than 1 year		2 to 3 years		4 to 5 years		> 5 years		Total
Non-derivative financial liabilities
Short-term loans		$5,436,681		$-		$-		$-		$5,436,681
Payables		54,336,051		-		-		-		54,336,051
Guarantee deposits		70,485		118,081		669,840		6,960,126		7,818,532
Bonds payable		6,539,314		7,464,895		9,020,263		4,191,448		27,215,920
Long-term loans		9,386,645		14,982,610		12,564,762		7,836,855		44,770,872
Lease liabilities		691,663		1,227,797		1,076,949		3,108,416		6,104,825
Other financial liabilities		-		16,848,357		4,212,315		-		21,060,672
Total		$76,460,839		$40,641,740		$27,544,129		$22,096,845		$166,743,553
Derivative financial liabilities
Forward exchange contracts
Gross settlement
Inflow		$388,462		$-		$-		$-		$388,462
Outflow		(390,529)		-		-		-		(390,529)
Net		$(2,067)		$-		$-		$-		$(2,067)

70

		As of December 31, 2020
		Less than 1 year		2 to 3 years		4 to 5 years		> 5 years		Total
Non-derivative financial liabilities
Short-term loans		$11,240,785		$-		$-		$-		$11,240,785
Payables		31,008,010		-		-		-		31,008,010
Guarantee deposits		793		163,618		-		71,581		235,992
Bonds payable		2,374,587		8,484,393		8,563,021		-		19,422,001
Long-term loans		25,885,932		5,889,382		2,424,965		-		34,200,279
Lease liabilities		695,790		1,280,476		1,102,021		3,354,217		6,432,504
Other financial liabilities		-		17,120,418		4,280,333		-		21,400,751
Total		$71,205,897		$32,938,287		$16,370,340		$3,425,798		$123,940,322
Derivative financial liabilities
Forward exchange contracts
Gross settlement
Inflow		$393,442		$-		$-		$-		$393,442
Outflow		(395,768)		-		-		-		(395,768)
Net		$(2,326)		$-		$-		$-		$(2,326)

		As of June 30, 2020
		Less than 1 year		2 to 3 years		4 to 5 years		> 5 years		Total
Non-derivative financial liabilities
Short-term loans		$9,734,816		$-		$-		$-		$9,734,816
Payables		38,514,925		197,580		-		-		38,712,505
Guarantee deposits		302,204		45,156		-		68,559		415,919
Bonds payable		2,323,281		8,529,443		8,626,496		-		19,479,220
Long-term loans		6,841,334		23,461,908		15,787,842		5,964		46,097,048
Lease liabilities		724,243		1,325,949		1,176,410		3,664,280		6,890,882
Other financial liabilities		-		16,397,513		4,099,597		-		20,497,110
Total		$58,440,803		$49,957,549		$29,690,345		$3,738,803		$141,827,500
Derivative financial liabilities
Forward exchange contracts
Gross settlement
Inflow		$236,417		$-		$-		$-		$236,417
Outflow		(237,188)		-		-		-		(237,188)
Net		$(771)		$-		$-		$-		$(771)

71

(6)	Foreign currency risk management

UMC entered into forward exchange contracts for hedging the exchange rate risk arising from the net monetary assets or liabilities denominated in foreign currency. The details of forward exchange contracts entered into by UMC are summarized as follows:

As of June 30, 2021

Type		Notional Amount		Contract Period
Forward exchange contracts		Sell USD 26 million		June 02, 2021~July 15, 2021

As of December 31, 2020

Type		Notional Amount		Contract Period
Forward exchange contracts		Sell USD 82 million		December 11, 2020~February 05, 2021

As of June 30, 2020

Type		Notional Amount		Contract Period
Forward exchange contracts		Sell USD 26 million		June 16, 2020~July 9, 2020

(7)	Fair value of financial instruments

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

72

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities;

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable;

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

a.	Assets and liabilities measured and recorded at fair value on a recurring basis:

		As of June 30, 2021
		Level 1		Level 2		Level 3		Total
Financial assets:
Financial assets at fair value through profit or loss, current		$797,028		$909		$223,231		$1,021,168
Financial assets at fair value through profit or loss, noncurrent		7,452,628		426,277		9,573,373		17,452,278
Financial assets at fair value through other comprehensive income, noncurrent		12,487,536		-		1,830,991		14,318,527
Financial liabilities:
Financial liabilities at fair value through profit or loss, current		-		2,067		-		2,067

73

		As of December 31, 2020
		Level 1		Level 2		Level 3		Total
Financial assets:
Financial assets at fair value through profit or loss, current		$1,049,334		$2,384		$164,916		$1,216,634
Financial assets at fair value through profit or loss, noncurrent		5,546,320		393,856		8,885,911		14,826,087
Financial assets at fair value through other comprehensive income, noncurrent		9,058,372		-		1,467,772		10,526,144
Financial liabilities:
Financial liabilities at fair value through profit or loss, current		-		2,326		-		2,326

		As of June 30, 2020
		Level 1		Level 2		Level 3		Total
Financial assets:
Financial assets at fair value through profit or loss, current		$887,337		$2,565		$123,940		$1,013,842
Financial assets at fair value through profit or loss, noncurrent		4,706,373		259,460		7,917,997		12,883,830
Financial assets at fair value through other comprehensive income, noncurrent		5,899,908		-		1,175,255		7,075,163
Financial liabilities:
Financial liabilities at fair value through profit or loss, current		-		771		-		771

Fair values of financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income that are categorized into level 1 are based on the quoted market prices in active markets. If there is no active market, the Company estimates the fair value by using the valuation techniques (income approach and market approach) in consideration of cash flow forecast, recent fund raising activities, valuation of similar companies, individual company's development, market conditions and other economic indicators.

If there are restrictions on the sale or transfer of a financial asset, which are a characteristic of the asset, the fair value of the asset will be determined based on similar but unrestricted financial assets' quoted market price with appropriate discounts for the restrictions. To measure fair values, if the lowest level input that is significant to the fair value measurement is directly or indirectly observable, then the financial assets are classified as Level 2 of the fair value hierarchy, otherwise as Level 3.

74

During the six-month periods ended June 30, 2021 and 2020, there were no significant transfers between Level 1 and Level 2 fair value measurements.

Reconciliation for fair value measurement in Level 3 fair value hierarchy is as follows:

		Financial assets at fair value through profit or loss		Financial assets at fair value through other comprehensive income
		Common stock		Preferred stock		Funds		Convertible bonds		Total		Common stock		Preferred stock		Total
As of January 1, 2021		$3,241,478		$3,279,003		$2,314,016		$216,330		$9,050,827		$1,297,627		$170,145		$1,467,772
Recognized in profit (loss)		11,254		(540,574)		1,148,837		319		619,836		-		-		-
Recognized in other comprehensive income (loss)		-		-		-		-		-		380,498		(17,279)		363,219
Acquisition		108,221		343,277		132,362		83,430		667,290		-		-		-
Disposal		(3,856)		(286,384)		-		(11,946)		(302,186)		-		-		-
Return of capital		(184)		-		(25,367)		-		(25,551)		-		-		-
Transfer out of Level 3		(121,540)		-		-		-		(121,540)		-		-		-
Exchange effect		(17,579)		(36,269)		(36,727)		(1,497)		(92,072)		-		-		-
As of June 30, 2021		$3,217,794		$2,759,053		$3,533,121		$286,636		$9,796,604		$1,678,125		$152,866		$1,830,991

		Financial assets at fair value through profit or loss		Financial assets at fair value through other comprehensive income
		Common stock		Preferred stock		Funds		Convertible bonds		Total		Common stock		Preferred stock		Total
As of January 1, 2020		$2,880,688		$3,279,294		$2,011,025		$104,708		$8,275,715		$1,130,430		$175,494		$1,305,924
Recognized in profit (loss)		(462,658)		(114,893)		(12,421)		37,923		(552,049)		-		-		-
Recognized in other comprehensive income (loss)		-		-		-		-		-		(56,286)		(74,383)		(130,669)
Acquisition		65,000		165,035		164,820		293,931		688,786		-		-		-
Disposal		-		(172,114)		-		(105,686)		(277,800)		-		-		-
Transfer out of Level 3		(35,000)		-		-		-		(35,000)		-		-		-
Exchange effect		(9,846)		(25,505)		(21,492)		(872)		(57,715)		-		-		-
As of June 30, 2020		$2,438,184		$3,131,817		$2,141,932		$330,004		$8,041,937		$1,074,144		$101,111		$1,175,255

The total profit of NT$464 million and loss of NT$589 million for the six-month periods ended June 30, 2021 and 2020, were included in profit or loss that is attributable to the change in unrealized gains or losses relating to those financial assets without quoted market prices held at the end of the reporting period.

The Company's policy to recognize the transfer into and out of fair value hierarchy levels is based on the event or changes in circumstances that caused the transfer.

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Significant unobservable inputs of fair value measurement in Level 3 fair value hierarchy are as follows:

As of June 30, 2021
Category of equity securities		Valuation technique		Significant unobservable inputs		Quantitative information		Interrelationship between inputs and fair value		Sensitivity analysis of interrelationship between inputs and fair value
Unlisted stock		Market Approach		Discount for lack of marketability		0%~50%		The greater degree of lack of marketability, the lower the estimated fair value is determined.		A change of 5% in the discount for lack of marketability of the aforementioned fair values of unlisted stocks could decrease/increase the Company's profit (loss) for the six-month period ended June 30, 2021 by NT$268 million and NT$221 million, respectively, and decrease/increase the Company's other comprehensive income (loss) for the six-month period ended June 30, 2021 by NT$133 million.

As of June 30, 2020
Category of equity securities		Valuation technique		Significant unobservable inputs		Quantitative information		Interrelationship between inputs and fair value		Sensitivity analysis of interrelationship between inputs and fair value
Unlisted stock		Market Approach		Discount for lack of marketability		0%~50%		The greater degree of lack of marketability, the lower the estimated fair value is determined.		A change of 5% in the discount for lack of marketability of the aforementioned fair values of unlisted stocks could decrease/increase the Company's profit (loss) for the six-month period ended June 30, 2020 by NT$245 million and NT$181 million, respectively, and decrease/increase the Company's other comprehensive income (loss) for the six-month period ended June 30, 2020 by NT$88 million.

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b.	Assets and liabilities not recorded at fair value but for which fair value is disclosed:

The fair value of bonds payable is estimated by the market price or using a valuation model. The model uses market-based observable inputs including share price, volatility, credit spread and risk-free interest rates. The fair value of long-term loans is determined using discounted cash flow model, based on the Company's current incremental borrowing rates of similar loans.

The fair values of the Company's short-term financial instruments including cash and cash equivalents, receivables, refundable deposits, other financial assets, short-term loans, payables and guarantee deposits approximate their carrying amount due to their maturities within one year.

As of June 30, 2021

				Fair value measurements during reporting period using
Items		Fair value		Level 1		Level 2		Level 3		Carrying amount
Bonds payables (current portion included)		$26,486,023		$26,486,023		$-		$-		$26,281,213
Long-term loans (current portion included)		38,948,952		-		38,948,952		-		38,948,952

As of December 31, 2020

				Fair value measurements during reporting period using
Items		Fair value		Level 1		Level 2		Level 3		Carrying amount
Bonds payables (current portion included)		$18,861,597		$18,861,597		$-		$-		$18,690,384
Long-term loans (current portion included)		33,066,106		-		33,066,106		-		33,066,106

As of June 30, 2020

				Fair value measurements during reporting period using
Items		Fair value		Level 1		Level 2		Level 3		Carrying amount
Bonds payables (current portion included)		$18,824,534		$18,824,534		$-		$-		$18,688,987
Long-term loans (current portion included)		42,518,685		-		42,518,685		-		42,518,685

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(8)	Significant financial assets and liabilities denominated in foreign currencies

The following information was summarized by the foreign currencies other than the functional currency of the Company. The exchange rates disclosed were used to translate the foreign currencies into the functional currency. The significant financial assets and liabilities denominated in foreign currencies are as follows:

	As of
	June 30, 2021		December 31, 2020
	Foreign Currency (thousand)		Exchange Rate		NTD (thousand)		Foreign Currency (thousand)		Exchange Rate		NTD (thousand)
Financial Assets
Monetary items
USD:NTD	$770,000		27.81		$21,413,695		$711,855		28.43		$20,238,047
RMB:NTD	1,642		4.285		7,037		1,957		4.355		8,525
SGD:USD	60,003		0.7425		1,239,004		48,101		0.7559		1,033,694
USD:RMB	246,835		6.4601		6,832,761		182,252		6.5249		5,178,866
USD:JPY	155,876		110.61		4,312,096		195,035		103.52		5,544,168
Non-Monetary items
USD:NTD	180,447		27.81		5,018,233		143,991		28.43		4,093,667
Financial Liabilities
Monetary items
USD:NTD	481,466		27.91		13,437,711		241,111		28.53		6,878,910
RMB:NTD (Note C)	4,753,571		4.335		20,606,731		4,710,181		4.405		20,748,348
SGD:USD	98,510		0.7463		2,051,888		87,190		0.7596		1,893,220
USD:RMB	653,448		6.4601		18,299,520		763,407		6.5249		21,941,982
USD:JPY	32,006		110.61		899,926		29,542		103.52		852,317
							As of
							June 30, 2020
							Foreign Currency (thousand)		Exchange Rate		NTD (thousand)
Financial Assets
Monetary items
USD:NTD							$693,238		29.58		$20,505,994
RMB:NTD							1,661		4.169		6,923
SGD:USD							57,580		0.7153		1,218,321
USD:RMB							257,357		7.0795		7,595,743
USD:JPY							227,658		107.74		6,703,459
Non-Monetary items
USD:NTD							126,483		29.58		3,741,376
Financial Liabilities
Monetary items
USD:NTD							245,243		29.68		7,278,810
RMB:NTD (Note C)							4,666,412		4.219		19,687,592
SGD:USD							83,488		0.7190		1,781,638
USD:RMB							847,574		7.0795		25,315,686
USD:JPY							25,867		107.74		773,098

78

Note A:

The foreign currency transactions mentioned above are expressed in terms of the amount before elimination.

Note B:

Please refer to the consolidated statements of comprehensive income for the total of realized and unrealized foreign exchange gain and loss. Since there were varieties of foreign currency transactions and functional currencies within the subsidiaries of the Company, the Company was unable to disclose foreign exchange gain (loss) towards each foreign currency with significant impact.

Note C:

Please refer to Note 9(6) for more details on other financial liabilities-noncurrent.

(9)	Significant intercompany transactions among consolidated entities for the six-month periods ended June 30, 2021 and 2020 are disclosed in Attachment 1.

(10)	Capital management

The primary objective of the Company's capital management is to ensure that it maintains a strong credit rating and healthy capital ratios to support its business and maximize the shareholders' value. The Company also ensures its ability to operate continuously to provide returns to shareholders and the interests of other related parties, while maintaining the optimal capital structure to reduce costs of capital.

To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders, issue new shares or dispose assets to redeem liabilities.

Similar to its peers, the Company monitors its capital based on debt to capital ratio. The ratio is calculated as the Company's net debt divided by its total capital. The net debt is derived by taking the total liabilities on the consolidated balance sheets minus cash and cash equivalents. The total capital consists of total equity (including capital, additional paid-in capital, retained earnings, other components of equity and non-controlling interests) plus net debt.

The Company's strategy, which is unchanged for the reporting periods, is to maintain a reasonable ratio in order to raise capital with reasonable cost. The debt to capital ratios as of June 30, 2021, December 31, 2020 and June 30, 2020 were as follows:

		As of
		June 30, 2021		December 31, 2020		June 30, 2020
Total liabilities		$181,485,267		$141,743,273		$158,341,355
Less: Cash and cash equivalents		(124,000,482)		(94,048,036)		(99,871,617)
Net debt		57,484,785		47,695,237		58,469,738
Total equity		240,192,127		235,773,102		209,202,411
Total capital		$297,676,912		$283,468,339		$267,672,149
Debt to capital ratios		19.31%		16.83%		21.84%

79

13.	ADDITIONAL DISCLOSURES

(1)	The following are additional disclosures for the Company and its affiliates as required by the R.O.C. Securities and Futures Bureau:

a.	Financing provided to others for the six-month period ended June 30, 2021: Please refer to Attachment 2.

b.	Endorsement/Guarantee provided to others for the six-month period ended June 30, 2021: Please refer to Attachment 3.

c.	Securities held as of June 30, 2021 (excluding subsidiaries, associates and joint venture): Please refer to Attachment 4.

d.	Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20 percent of the capital stock for the six-month period ended June 30, 2021: Please refer to Attachment 5.

e.	Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20 percent of the capital stock for the six-month period ended June 30, 2021: Please refer to Attachment 6.

f.	Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20 percent of the capital stock for the six-month period ended June 30, 2021: Please refer to Attachment 7.

g.	Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million or 20 percent of the capital stock for the six-month period ended June 30, 2021: Please refer to Attachment 8.

h.	Receivables from related parties with amounts exceeding the lower of NT$100 million or 20 percent of capital stock as of June 30, 2021: Please refer to Attachment 9.

i.	Names, locations and related information of investees as of June 30, 2021 (excluding investment in Mainland China): Please refer to Attachment 10.

j.	Financial instruments and derivative transactions: Please refer to Note 12.

k.	Information of major shareholders as of June 30, 2021: Please refer to Attachment 12.

80

(2)	Investment in Mainland China

a.

Investee company name, main businesses and products, total amount of capital, method of investment, accumulated inflow and outflow of investments from Taiwan, net income (loss) of investee company, percentage of ownership, investment income (loss), carrying amount of investments, cumulated inward remittance of earnings and limits on investment in Mainland China: Please refer to Attachment 11.

b.

Directly or indirectly significant transactions through third regions with the investees in Mainland China, including price, payment terms, unrealized gain or loss, and other events with significant effects on the operating results and financial condition: Please refer to Attachment 1, 2, 3, 8 and 9.

14.	OPERATING SEGMENT INFORMATION

The Company determined its operating segments based on business activities with discrete financial information regularly reported through the Company's internal reporting protocols to the Company's chief operating decision maker. The Company only has wafer fabrication operating segment as the single reporting segment. The primary operating activity of the wafer fabrication segment is the manufacture of chips to the design specifications of our customers by using our own proprietary processes and techniques. The Company maintains a diversified customer base across industries, including communication, consumer electronics, computer, memory and others, while continuing to focus on manufacturing for high growth, large volume applications, including networking, telecommunications, internet, multimedia, PCs and graphics. There was no material difference between the accounting policies of the operating segment and those described in Note 4. Please refer to the Company's consolidated financial statements for the related segment revenue and operating results.

81

ATTACHMENT 1 (Significant intercompany transactions between consolidated entities)
(Amount in thousand; Currency denomination in NTD or in foreign currencies)
For the six-month period ended June 30, 2021
		Related party		Counterparty		Relationship with the Company (Note 2)		Transactions
No. (Note 1)					Account		Amount		Collection periods (Note 3)		Percentage of consolidated operating revenues or consolidated total assets (Note 4)
0		UNITED MICROELECTRONICS CORPORATION		UMC GROUP (USA)		1		Sales		$22,802,598		Net 60 days		23%
0		UNITED MICROELECTRONICS CORPORATION		UMC GROUP (USA)		1		Accounts receivable		5,765,109		-		1%
0		UNITED MICROELECTRONICS CORPORATION		UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.		1		Sales		626,693		Net 30 days		1%
										(Note 5)
0		UNITED MICROELECTRONICS CORPORATION		UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.		1		Accounts receivable		14,323		-		0%
1		UNITED SEMICONDUCTOR JAPAN CO., LTD.		UMC GROUP (USA)		3		Sales		1,494,129		Net 60 days		2%
1		UNITED SEMICONDUCTOR JAPAN CO., LTD.		UMC GROUP (USA)		3		Accounts receivable		556,210		-		0%
2		UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.		UMC GROUP (USA)		3		Sales		777,063		Net 60 days		1%
2		UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.		UMC GROUP (USA)		3		Accounts receivable		261,924		-		0%
3		WAVETEK MICROELECTRONICS CORPORATION		UMC GROUP (USA)		3		Sales		221,008		Net 60 days		0%
3		WAVETEK MICROELECTRONICS CORPORATION		UMC GROUP (USA)		3		Accounts receivable		74,733		-		0%
4		HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.		UMC GROUP (USA)		3		Sales		183,227		Net 60 days		0%
4		HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.		UMC GROUP (USA)		3		Accounts receivable		68,146		-		0%
For the six-month period ended June 30, 2020
		Related party		Counterparty		Relationship with the Company (Note 2)		Transactions
No. (Note 1)					Account		Amount		Collection periods (Note 3)		Percentage of consolidated operating revenues or consolidated total assets (Note 4)
0		UNITED MICROELECTRONICS CORPORATION		UMC GROUP (USA)		1		Sales		$24,572,410		Net 60 days		28%
0		UNITED MICROELECTRONICS CORPORATION		UMC GROUP (USA)		1		Accounts receivable		6,249,992		-		2%
0		UNITED MICROELECTRONICS CORPORATION		UMC GROUP JAPAN		1		Sales		1,200,824		Net 60 days		1%
0		UNITED MICROELECTRONICS CORPORATION		UMC GROUP JAPAN		1		Accounts receivable		65,721		-		0%
0		UNITED MICROELECTRONICS CORPORATION		UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.		1		Sales		602,572		Net 30 days		1%
										(Note 5)
0		UNITED MICROELECTRONICS CORPORATION		UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.		1		Accounts receivable		21,664		-		0%
1		UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.		UMC GROUP (USA)		3		Sales		372,512		Net 60 days		0%
1		UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.		UMC GROUP (USA)		3		Accounts receivable		133,892		-		0%
2		HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.		UMC GROUP JAPAN		3		Sales		105,676		Net 60 days		0%
2		HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.		UMC GROUP JAPAN		3		Accounts receivable		28,032		-		0%

Note 1:	UMC and its subsidiaries are coded as follows:
1. UMC is coded '0'.
2. The subsidiaries are coded consecutively beginning from '1' in the order presented in the table above.
Note 2:	Transactions are categorized as follows:
1. The holding company to subsidiary.
2. Subsidiary to holding company.
3. Subsidiary to subsidiary.
Note 3:	The sales price to the above related parties was determined through mutual agreement in reference to market conditions.
Note 4:	The percentage with respect to the consolidated asset/liability for transactions of balance sheet items are based on each item's balance at period-end.
For profit or loss items, cumulative balances are used as basis.
Note 5:	UMC authorized technology licenses to its subsidiary, UNITED SEMICONDUCTOR (XIAMEN) CO., LTD., in the amount of USD 0.35 billion which was recognized as deferred revenue.
Since it was a downstream transaction, the deferred revenue would be realized over time.

82

ATTACHMENT 2 (Financing provided to others for the six-month period ended June 30, 2021)

(Amount in thousand; Currency denomination in NTD or in foreign currencies)

UNITED MICROELECTRONICS CORPORATION

Collateral

No. (Note 1)

Lender

Counter-party

Financial statement account

Related Party

Maximum balance for the period

Ending balance

Actual amount provided

Interest rate

Nature of financing

Amount of sales to (purchases from) counter-party

Reason for financing

Loss allowance

Limit of financing amount for individual counter-party (Note2)

Limit of total financing amount (Note2)

Item

Value

0

UNITED MICROELECTRONICS CORPORATION

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

Other receivables - related parties

Yes

$10,289,700

$4,727,700

$-

-

The need for short-term financing

$-

Business turnover

$-

None

$-

$24,008,593

$96,034,371

0

UNITED MICROELECTRONICS CORPORATION

WAVETEK MICROELECTRONICS CORPORATION

Other receivables - related parties

Yes

500,000

500,000

-

-

The need for short-term financing

-

Business turnover

-

None

-

24,008,593

96,034,371

Note 1: The parent company and its subsidiaries are coded as follows:

(i) The parent company is coded '0'.

(ii) The subsidiaries are coded consecutively beginning from '1' in the order presented in the table above.

Note 2: Limit of financing amount for individual counter-party shall not exceed 10% of the lender's net assets value as of the period.

Limit of total financing amount shall not exceed 40% of the Company's net asset value.

83

ATTACHMENT 3 (Endorsement/Guarantee provided to others for the six-month period ended June 30, 2021)

(Amount in thousand; Currency denomination in NTD or in foreign currencies)

UNITED MICROELECTRONICS CORPORATION

No. (Note 1)

Endorsor/Guarantor

Receiving party

Limit of guarantee/endorsement amount for receiving party (Note 3)

Maximum balance for the period

Percentage of accumulated guarantee amount to net assets value from the latest financial statement

Limit of total guarantee/endorsement amount (Note 4)

Company name

Releationship (Note 2)

Ending balance

Actual amount provided

Amount of collateral guarantee/endorsement

0

UNITED MICROELECTRONICS CORPORATION

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

2

$108,038,667

$18,754,675

$18,754,675 (Note 5)

$15,697,786 (Note 5)

$-

7.81%

$108,038,667

HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.

No. (Note 1)

Endorsor/Guarantor

Receiving party

Limit of guarantee/endorsement amount for receiving party (Note 6)

Maximum balance for the period

Percentage of accumulated guarantee amount to net assets value from the latest financial statement

Limit of total guarantee/endorsement amount (Note 6)

Company name

Releationship (Note 2)

Ending balance

Actual amount provided

Amount of collateral guarantee/endorsement

1

HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

6

$10,545,321

$6,759,581

$6,759,581

$5,843,046

$-

28.85%

$10,545,321

Note 1:	The parent company and its subsidiaries are coded as follows:
	1. The parent company is coded '0'.
	2. The subsidiaries are coded consecutively beginning from '1' in the order presented in the table above.
Note 2:	According to the 'Guidelines Governing the Preparation of Financial Reports by Securities Issuers' issued by the R.O.C. Securities and Futures Bureau, receiving parties should be disclosed as one of the following:
	1. A company with which it does business.
	2. A company in which the public company directly and indirectly holds more than 50% of the voting shares.
	3. A company that directly and indirectly holds more than 50 % of the voting shares in the public company.
	4. A company in which the public company holds, directly or indirectly, 90% or more of the voting shares.
	5. A company that fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
	6. A company that all capital contributing shareholders make endorsements/ guarantees for their jointly invested company in proportion to their shareholding percentages.
	7. Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.
Note 3:	The amount of endorsements/guarantees shall not exceed 45% of the net worth of endorsor/guarantor; and the ceilings on the amount of endorsements/guarantees for any single entity are as follows:
	1. The amount of endorsements/guarantees for any single entity shall not exceed 45% of net worth of endorsor/guarantor.
	2. The amount of endorsements/guarantees for a company which endorsor/guarantor does business with, except the ceiling rules abovementioned shall not exceed the needed amounts arising from business dealings which is the higher amount of total sales or purchase transactions between endorsor/guarantor and the receiving party.
	The aggregate amount of endorsements/guarantees that the Company as a whole is permitted to make shall not exceed 45% of the Company's net worth, and the aggregate amount of endorsements/guarantees for any single entity shall not exceed 45% of the Company's net worth.
Note 4:	Limit of total guarantee/endorsement amount shall not exceed 45% of UMC's net assets value as of June 30, 2021.
Note 5:	On Feburary 22, 2017, the board of directors resolved to guarantee UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.'s syndicated loan from banks including China Development Bank in the amount up to USD 310 million.
	On March 7, 2018, the board of directors resolved to increase the endorsement for syndicated loan amounted to USD 152 million, on October 24, 2018, the board of directors resolved to increase the endorsement for syndicated loan amounted to USD 41 million.
	On July 24, 2019, the board of directors resolved to decrease the endorsement for syndicated loan amounted to USD 26 million, on December 18, 2019, the board of directors resolved to decrease the endorsement for syndicated loan amounted to USD 13 million.
	On July 29, 2020, the board of directors resolved to decrease the endorsement for syndicated loan amounted to USD 32 million and to increase the endorsement for short-term loans agreement amounted to CNY 900 million.
	On October 29, 2020, the board of directors resolved to decrease the endorsement for syndicated loan amounted to USD 32 million.
	On December 16, 2020, the board of directors resolved to decrease the endorsement for syndicated loan amounted to USD 29 million, to decrease the endorsement for short-term loans agreement amounted to CNY 900 million and to increase the endorsement for loans agreement amounted to CNY 1.97 billion.
	Total endorsement amount is up to USD 371 million and CNY 1.97 billion. As of June 30, 2021, actual amount provided was NT$15.70 billion.
Note 6:	Limit of total endorsed/guaranteed amount shall not exceed 45% of HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.'s net assets value as of June 30, 2021.
	The amount of endorsements/guarantees for any single entity shall not exceed 45% of net worth ofHEJIAN TECHNOLOGY (SUZHOU) CO., LTD.'s net assets value as of June 30, 2021.
	The aggregate amount of endorsements/guarantees that the Company as a whole is permitted to make shall not exceed 45% of the Company's net worth, and the aggregate amount of endorsements/guarantees for any single entity shall not exceed 45% of the Company's net worth.

84

ATTACHMENT 4 (Securities held as of June 30, 2021) (Excluding subsidiaries, associates and joint ventures)
(Amount in thousand; Currency denomination in NTD or in foreign currencies)
UNITED MICROELECTRONICS CORPORATION
								June 30, 2021
Type of securities		Name of securities		Relationship		Financial statement account		Units (thousand)/ bonds/ shares (thousand)		Carrying amount		Percentage of ownership (%)		Fair value/ Net assets value	Shares as collateral (thousand)
Fund		MILLERFUL NO.1 REAL ESTATE INVESTMENT TRUST		-		Financial assets at fair value through profit or loss, current		18,000			$195,120		1.70			$195,120		None
Stock		PIXART IMAGING, INC.		-		Financial assets at fair value through profit or loss, current		1,600			314,400		1.13			314,400		None
Stock		KING YUAN ELECTRONICS CO., LTD.		-		Financial assets at fair value through profit or loss, current		2,675			120,107		0.22			120,107		None
Fund		RED ARC GLOBAL INVESTMENTS (IRELAND) ICAV TERM LIQUIDITY FUND		-		Financial assets at fair value through profit or loss, current		57			167,401		0.15			167,401		None
Stock		PIXTECH, INC.		-		Financial assets at fair value through profit or loss, noncurrent		9,883			-		17.63			-		None
Stock		UNITED FU SHEN CHEN TECHNOLOGY CORP.		-		Financial assets at fair value through profit or loss, noncurrent		17,511			-		15.75			-		None
Stock		HOLTEK SEMICONDUCTOR INC.		-		Financial assets at fair value through profit or loss, noncurrent		22,144			2,214,426		9.79			2,214,426		None
Stock		OCTTASIA INVESTMENT HOLDING INC.		-		Financial assets at fair value through profit or loss, noncurrent		6,692			595,520		9.29			595,520		None
Stock		UNITED INDUSTRIAL GASES CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		16,680			1,149,981		7.66			1,149,981		None
Stock		AMIC TECHNOLOGY CORP.		-		Financial assets at fair value through profit or loss, noncurrent		5,627			-		4.71			-		None
Stock		SUBTRON TECHNOLOGY CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		12,521			258,553		4.29			258,553		None
Stock		KING YUAN ELECTRONICS CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		20,483			919,673		1.68			919,673		None
Stock		ENNOSTAR INC.		-		Financial assets at fair value through profit or loss, noncurrent		5,357			420,563		0.78			420,563		None
Stock		PROMOS TECHNOLOGIES INC.		-		Financial assets at fair value through profit or loss, noncurrent		324			-		0.72			-		None
Stock-Preferred stock		TONBU, INC.		-		Financial assets at fair value through profit or loss, noncurrent		938			-		-			-		None
Stock-Preferred stock		AETAS TECHNOLOGY INC.		-		Financial assets at fair value through profit or loss, noncurrent		1,166			-		-			-		None
Stock-Preferred stock		TA SHEE GOLF & COUNTRY CLUB		-		Financial assets at fair value through profit or loss, noncurrent		0			21,750		-			21,750		None
Stock		SILICON INTEGRATED SYSTEMS CORP.		The Company's director		Financial assets at fair value through other comprehensive income, noncurrent		119,979			2,585,550		19.02			2,585,550		None
Stock		UNIMICRON HOLDING LIMITED		Associate		Financial assets at fair value through other comprehensive income, noncurrent		20,000			1,042,875		12.67			1,042,875		None
Stock		ITE TECH. INC.		-		Financial assets at fair value through other comprehensive income, noncurrent		13,960			1,696,137		8.67			1,696,137		None
Stock		NOVATEK MICROELECTRONICS CORP.		-		Financial assets at fair value through other comprehensive income, noncurrent		16,445			8,205,849		2.70			8,205,849		None
Stock-Preferred stock		MTIC HOLDINGS PTE. LTD.		Associate		Financial assets at fair value through other comprehensive income, noncurrent		12,000			152,866		-			152,866		None

85

ATTACHMENT 4 (Securities held as of June 30, 2021) (Excluding subsidiaries, associates and joint ventures)
(Amount in thousand; Currency denomination in NTD or in foreign currencies)
FORTUNE VENTURE CAPITAL CORP.
								June 30, 2021
Type of securities		Name of securities		Relationship		Financial statement account		Units (thousand)/ bonds/ shares (thousand)		Carrying amount		Percentage of ownership (%)		Fair value/ Net assets value		Shares as collateral (thousand)
Stock		DARCHUN VENTURE CORP.		-		Financial assets at fair value through profit or loss, noncurrent		1,514			$2,605		19.65			$2,605		None
Stock		SOLARGATE TECHNOLOGY CORP.		-		Financial assets at fair value through profit or loss, noncurrent		957			-		15.94			-		None
Fund		TRENDFORCE CAPITAL FUND SPC-TRENDFORCE CAPITAL FUND I SP		-		Financial assets at fair value through profit or loss, noncurrent		15			78,461		15.06			78,461		None
Stock		TRONC-E CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		1,800			-		14.49			-		None
Stock		CENTERA PHOTONICS INC.		-		Financial assets at fair value through profit or loss, noncurrent		3,750			15,938		11.69			15,938		None
Stock		EVERGLORY RESOURCE TECHNOLOGY CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		2,500			18,475		10.23			18,475		None
Stock		ADVANCE MATERIALS CORP.		-		Financial assets at fair value through profit or loss, noncurrent		10,719			80,927		9.12			80,927		None
Stock		CLIENTRON CORP.		-		Financial assets at fair value through profit or loss, noncurrent		5,771			109,359		9.07			109,359		None
Stock		MONTJADE ENGINEERING CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		1,800			15,048		8.18			15,048		None
Stock		EXCELSIUS MEDICAL CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		1,500			22,635		7.50			22,635		None
Stock		TAIWAN REDEYE BIOMEDIAL INC.		-		Financial assets at fair value through profit or loss, noncurrent		743			18,617		7.43			18,617		None
Stock		NEW SMART TECHNOLOGY CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		900			6,705		7.29			6,705		None
Stock		WIN WIN PRECISION TECHNOLOGY CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		3,150			40,635		6.93			40,635		None
Stock		RISELINK VENTURE CAPITAL CORP.		-		Financial assets at fair value through profit or loss, noncurrent		11			692		6.67			692		None
Stock		LICO TECHNOLOGY CORP.		-		Financial assets at fair value through profit or loss, noncurrent		6,609			-		5.32			-		None
Stock		AMPAK TECHNOLOGY INC.		-		Financial assets at fair value through profit or loss, noncurrent		3,000			274,500		4.98			274,500		None
Stock		EMPASS TECHNOLOGY INC.		-		Financial assets at fair value through profit or loss, noncurrent		300			5,640		4.50			5,640		None
Stock		ACT GENOMICS HOLDINGS CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		4,600			149,162		4.24			149,162		None
Stock		MERIDIGEN BIOTECH CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		3,838			-		4.20			-		None
Stock		TAIWAN AULISA MEDICAL DEVICES TECHNOLOGIES, INC.		-		Financial assets at fair value through profit or loss, noncurrent		1,114			11,220		4.01			11,220		None
Stock		SOLID STATE SYSTEM CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		2,400			96,240		3.71			96,240		None
Stock		EXCELLENCE OPTOELECTRONICS INC.		-		Financial assets at fair value through profit or loss, noncurrent		6,374			180,062		3.49			180,062		None
Stock		SUBTRON TECHNOLOGY CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		10,059			207,714		3.44			207,714		None
Stock		ANIMATION TECHNOLOGIES INC.		-		Financial assets at fair value through profit or loss, noncurrent		265			-		3.16			-		None
Stock		TOPOINT TECHNOLOGY CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		4,416			176,204		3.11			176,204		None
Fund		TRANSLINK CAPITAL PARTNERS IV, L.P.		-		Financial assets at fair value through profit or loss, noncurrent		-			323,563		2.96			323,563		None

86

ATTACHMENT 4 (Securities held as of June 30, 2021) (Excluding subsidiaries, associates and joint ventures)
(Amount in thousand; Currency denomination in NTD or in foreign currencies)
FORTUNE VENTURE CAPITAL CORP.
								June 30, 2021
Type of securities		Name of securities		Relationship		Financial statement account		Units (thousand)/ bonds/ shares (thousand)		Carrying amount		Percentage of ownership (%)		Fair value/ Net assets value	Shares as collateral (thousand)
Stock		BRIGHT SHELAND INTERNATIONAL CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		1,200			$38,760		2.87			$38,760		None
Stock		TAIWAN SEMICONDUCTOR CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		6,741			404,527		2.54			404,527		None
Stock		CHITEC TECHNOLOGY CORP., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		627			19,280		2.15			19,280		None
Stock		FORMOSA PHARMACEUTICALS, INC.		-		Financial assets at fair value through profit or loss, noncurrent		2,100			50,400		2.12			50,400		None
Fund		VERTEX V (C.I.) FUND L.P.		-		Financial assets at fair value through profit or loss, noncurrent		-			109,850		2.07			109,850		None
Fund		VERTEX VI FUND L.P.		-		Financial assets at fair value through profit or loss, noncurrent		-			22,740		2.04			22,740		None
Stock		YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		4,000			303,600		1.63			303,600		None
Stock		M3 TECHNOLOGY INC.		-		Financial assets at fair value through profit or loss, noncurrent		594			85,536		1.62			85,536		None
Stock		ACER E-ENABLING SERVICE BUSINESS INC.		-		Financial assets at fair value through profit or loss, noncurrent		550			111,650		1.51			111,650		None
Stock		TEAM GROUP INC.		-		Financial assets at fair value through profit or loss, noncurrent		902			64,520		1.11			64,520		None
Stock		LINTES TECHNOLOGY CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		615			69,803		1.08			69,803		None
Stock		WALTOP INTERNATIONAL CORP.		-		Financial assets at fair value through profit or loss, noncurrent		65			543		1.07			543		None
Stock		CRYSTALWISE TECHNOLOGY INC.		-		Financial assets at fair value through profit or loss, noncurrent		888			23,979		1.02			23,979		None
Stock		POWERTEC ELECTROCHEMICAL CORP.		-		Financial assets at fair value through profit or loss, noncurrent		9,930			-		0.70			-		None
Stock		TAIWANJ PHARMACEUTICALS CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		514			6,554		0.68			6,554		None
Stock		ROARING SUCCESS LTD.		-		Financial assets at fair value through profit or loss, noncurrent		317			7,681		0.64			7,681		None
Stock		TIGERAIR TAIWAN CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		847			26,426		0.30			26,426		None
Stock		SOLAR APPLIED MATERIALS TECHNOLOGY CORP.		-		Financial assets at fair value through profit or loss, noncurrent		1,173			54,492		0.20			54,492		None
Stock		RAYDIUM SEMICONDUCTOR CORP.		-		Financial assets at fair value through profit or loss, noncurrent		120			46,020		0.18			46,020		None
Stock		CHANG WAH ELECTROMATERIALS INC.		-		Financial assets at fair value through profit or loss, noncurrent		1,055			34,810		0.16			34,810		None
Stock		FORTEMEDIA, INC.		-		Financial assets at fair value through profit or loss, noncurrent		21			35		0.02			35		None
Stock-Preferred Stock		EJOULE INTERNATIONAL LIMITED		-		Financial assets at fair value through profit or loss, noncurrent		23,909			88,272		-			88,272		None
Stock-Preferred Stock		FLOADIA CORP.		-		Financial assets at fair value through profit or loss, noncurrent		2			104,549		-			104,549		None
Stock-Preferred Stock		FORTEMEDIA, INC.		-		Financial assets at fair value through profit or loss, noncurrent		311			2,569		-			2,569		None
Stock-Preferred Stock		ACEPODIA, INC.		-		Financial assets at fair value through profit or loss, noncurrent		2,055			61,758		-			61,758		None
Stock-Preferred Stock		BRAVOTEK CORP.		-		Financial assets at fair value through profit or loss, noncurrent		2,250			58,217		-			58,217		None

87

ATTACHMENT 4 (Securities held as of June 30, 2021) (Excluding subsidiaries, associates and joint ventures)
(Amount in thousand; Currency denomination in NTD or in foreign currencies)
FORTUNE VENTURE CAPITAL CORP.
								June 30, 2021
Type of securities		Name of securities		Relationship		Financial statement account		Units (thousand)/ bonds/ shares (thousand)		Carrying amount		Percentage of ownership (%)		Fair value/ Net assets value	Shares as collateral (thousand)
Stock-Preferred Stock		GEAR RADIO LTD.		-		Financial assets at fair value through profit or loss, noncurrent		3,400			$57,552		-			$57,552		None
Stock-Preferred Stock		SONATUS, INC.		-		Financial assets at fair value through profit or loss, noncurrent		249			27,810		-			27,810		None
Convertible bonds		YEONG GUAN ENERGY TECHNOLOGY GROUP CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		100			10,650		-			10,650		None
Convertible bonds		BRIGHT SHELAND INTERNATIONAL CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		250			25,331		-			25,331		None
Convertible bonds		MERCURIES & ASSOCIATES HOLDING, LTD.		-		Financial assets at fair value through profit or loss, noncurrent		500			57,450		-			57,450		None
Convertible bonds		EPISIL HOLDING INC.		-		Financial assets at fair value through profit or loss, noncurrent		30			3,870		-			3,870		None
Stock		SHIN-ETSU HANDOTAI TAIWAN CO., LTD.		-		Financial assets at fair value through other comprehensive income, noncurrent		10,500			635,250		7.00			635,250		None
Stock		UNITED MICROELECTRONICS CORP.		Parent company		Financial assets at fair value through other comprehensive income, noncurrent		16,079			853,781		0.13			853,781		None
Stock-Preferred Stock		CENTERA PHOTONICS INC.		-		Prepayments for investments		526			15,782		-			N/A		None
TLC CAPITAL CO., LTD.
								June 30, 2021
Type of securities		Name of securities		Relationship		Financial statement account		Units (thousand)/ bonds/ shares (thousand)		Carrying amount		Percentage of ownership (%)		Fair value/ Net assets value	Shares as collateral (thousand)
Convertible bonds		EJOULE INTERNATIONAL LTD.		-		Financial assets at fair value through profit or loss, current		-			$148,422		-			$148,422		None
Convertible bonds		JSAB HOLDING LTD.		-		Financial assets at fair value through profit or loss, current		-			69,525		-			69,525		None
Fund		EVERYI CAPITAL ASIA FUND, L.P.		-		Financial assets at fair value through profit or loss, noncurrent		-			218,171		18.18			218,171		None
Stock		BEAUTY ESSENTIALS INTERNATIONAL LTD.		-		Financial assets at fair value through profit or loss, noncurrent		150,500			73,244		13.99			73,244		None
Fund		OAK HILL OPPORTUNITIES FUND, SEGREGATED PORTFOLIO		-		Financial assets at fair value through profit or loss, noncurrent		13			338,956		13.00			338,956		None
Stock		WINKING ENTERTAINMENT LTD.		-		Financial assets at fair value through profit or loss, noncurrent		5,983			138,645		10.23			138,645		None
Fund		EVERYI CAPITAL ASIA FUND II, L.P.		-		Financial assets at fair value through profit or loss, noncurrent		-			114,253		9.09			114,253		None
Stock		EVERGLORY RESOURCE TECHNOLOGY CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		1,200			8,868		4.91			8,868		None
Stock		ADVANCE MATERIALS CORP.		-		Financial assets at fair value through profit or loss, noncurrent		5,415			40,882		4.61			40,882		None
Fund		TRANSLINK CAPITAL PARTNERS III, L.P.		-		Financial assets at fair value through profit or loss, noncurrent		-			173,176		4.24			173,176		None
Stock		SUNDIA MEDITECH GROUP		-		Financial assets at fair value through profit or loss, noncurrent		117			-		3.20			-		None
Stock		WELLYSUN INC.		-		Financial assets at fair value through profit or loss, noncurrent		1,000			35,000		2.34			35,000		None
Stock		EXCELLENCE OPTOELECTRONICS INC.		-		Financial assets at fair value through profit or loss, noncurrent		3,183			89,923		1.74			89,923		None
Stock		HANDA PHARMACEUTICALS, INC.		-		Financial assets at fair value through profit or loss, noncurrent		1,000			31,900		0.86			31,900		None

88

ATTACHMENT 4 (Securities held as of June 30, 2021) (Excluding subsidiaries, associates and joint ventures)
(Amount in thousand; Currency denomination in NTD or in foreign currencies)
TLC CAPITAL CO., LTD.
								June 30, 2021
Type of securities		Name of securities		Relationship		Financial statement account		Units (thousand)/ bonds/ shares (thousand)		Carrying amount		Percentage of ownership (%)		Fair value/ Net assets value		Shares as collateral (thousand)
Stock		SIMPLO TECHNOLOGY CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		1,422			$510,671		0.77			$510,671		None
Stock		TXC CORP.		-		Financial assets at fair value through profit or loss, noncurrent		1,978			249,227		0.64			249,227		None
Stock		LINTES TECHNOLOGY CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		365			41,428		0.64			41,428		None
Stock		POWTEC ELECTROCHEMICAL CORP.		-		Financial assets at fair value through profit or loss, noncurrent		6,470			-		0.46			-		None
Stock		YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		1,000			75,900		0.41			75,900		None
Stock		EVERGREEN STEEL CORP.		-		Financial assets at fair value through profit or loss, noncurrent		1,000			69,700		0.24			69,700		None
Stock		VALUE VALVES CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		40			3,620		0.10			3,620		None
Stock		CHANG WAH ELECTROMATERIALS INC.		-		Financial assets at fair value through profit or loss, noncurrent		506			16,709		0.07			16,709		None
Stock		ADVANCED ENERGY SOLUTION HOLDING CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		49			44,565		0.06			44,565		None
Convertible bonds		TECHCENTIAL INTERNATIONAL LTD.		-		Financial assets at fair value through profit or loss, noncurrent		99			9,712		-			9,712		None
Convertible bonds		EVERGREEN MARINE CORP. (TAIWAN) LTD.		-		Financial assets at fair value through profit or loss, noncurrent		690			143,520		-			143,520		None
Capital-Preferred stock		GUANGXI CHIPBETTER MICROELECTRONICS INC.		-		Financial assets at fair value through profit or loss, noncurrent		672			58,846		-			58,846		None
Capital-Preferred stock		CANAANTEK CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		190			26,995		-			26,995		None
Stock-Preferred stock		YOUJIA GROUP LTD.		-		Financial assets at fair value through profit or loss, noncurrent		2,685			5,261		-			5,261		None
Stock-Preferred stock		ALO7 LTD.		-		Financial assets at fair value through profit or loss, noncurrent		2,377			175,754		-			175,754		None
Stock-Preferred stock		ADWO MEDIA HOLDINGS LTD.		-		Financial assets at fair value through profit or loss, noncurrent		5,332			-		-			-		None
Stock-Preferred stock		IMO, INC.		-		Financial assets at fair value through profit or loss, noncurrent		8,519			-		-			-		None
Stock-Preferred stock		GAME VIDEO LTD.		-		Financial assets at fair value through profit or loss, noncurrent		279			28,390		-			28,390		None
Stock-Preferred stock		PLAYNITRIDE INC.		-		Financial assets at fair value through profit or loss, noncurrent		717			86,601		-			86,601		None
Stock-Preferred stock		EJOULE INTERNATIONAL LTD.		-		Financial assets at fair value through profit or loss, noncurrent		35,863			132,408		-			132,408		None
Stock-Preferred stock		TURNING POINT LASERS LTD.		-		Financial assets at fair value through profit or loss, noncurrent		2,000			49,301		-			49,301		None
Stock-Preferred stock		ARTERY TECHNOLOGY CORPORATION(CAYMAN)		Associate		Financial assets at fair value through profit or loss, noncurrent		852			117,065		-			117,065		None
Stock-Preferred stock		JSAB HOLDING LTD.		-		Financial assets at fair value through profit or loss, noncurrent		667			21,360		-			21,360		None
Stock-Preferred stock		SILC TECHNOLOGIES, INC.		-		Financial assets at fair value through profit or loss, noncurrent		1,697			76,477		-			76,477		None

89

ATTACHMENT 4 (Securities held as of June 30, 2021) (Excluding subsidiaries, associates and joint ventures)
(Amount in thousand; Currency denomination in NTD or in foreign currencies)
TLC CAPITAL CO., LTD.
								June 30, 2021
Type of securities		Name of securities		Relationship		Financial statement account		Units (thousand)/ bonds/ shares (thousand)		Carrying amount		Percentage of ownership (%)		Fair value/ Net assets value		Shares as collateral (thousand)
Stock-Preferred stock		SINO APPLIED TECHNOLOGY CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		855			$12,514		-			$12,514		None
Stock-Preferred stock		RAMON SPACE LTD.		-		Financial assets at fair value through profit or loss, noncurrent		249			55,620		-			55,620		None
Stock-Preferred stock		XMEMS LABS, INC.		-		Financial assets at fair value through profit or loss, noncurrent		2,990			55,620		-			55,620		None
UMC CAPITAL CORP.
								June 30, 2021
Type of securities	Name of securities	Relationship		Financial statement account		Units (thousand)/ bonds/ shares (thousand)		Carrying amount		Percentage of ownership (%)		Fair value/ Net assets value		Shares as collateral (thousand)
Convertible bonds		CLOUDWORDS, INC.		-		Financial assets at fair value through profit or loss, current		-		USD	190		-		USD	190		None
Capital		TRANSLINK MANAGEMENT III, L.L.C.		-		Financial assets at fair value through profit or loss, noncurrent		-		USD	1,114		14.33		USD	1,114		None
Fund		TRANSLINK CAPITAL PARTNERS III, L.P.		-		Financial assets at fair value through profit or loss, noncurrent		-		USD	16,836		11.47		USD	16,836		None
Stock		OCTTASIA INVESTMENT HOLDING INC.		-		Financial assets at fair value through profit or loss, noncurrent		7,035		USD	22,512		9.76		USD	22,512		None
Fund		TRANSLINK CAPITAL PARTNERS IV, L.P.		-		Financial assets at fair value through profit or loss, noncurrent		-		USD	34,904		8.87		USD	34,904		None
Stock		ALL-STARS SP IV LTD.		-		Financial assets at fair value through profit or loss, noncurrent		7		USD	6,920		5.03		USD	6,920		None
Fund		TRANSLINK CAPITAL PARTNERS II, L.P.		-		Financial assets at fair value through profit or loss, noncurrent		-		USD	1,630		4.53		USD	1,630		None
Fund		GROVE VENTURES II, L.P.		-		Financial assets at fair value through profit or loss, noncurrent		-		USD	1,018		3.25		USD	1,018		None
Fund		SIERRA VENTURES XI, L.P.		-		Financial assets at fair value through profit or loss, noncurrent		-		USD	8,094		1.76		USD	8,094		None
Fund		STORM VENTURES FUND V, L.P.		-		Financial assets at fair value through profit or loss, noncurrent		-		USD	5,340		1.69		USD	5,340		None
Fund		SIERRA VENTURES XII, L.P.		-		Financial assets at fair value through profit or loss, noncurrent		-		USD	1,176		1.38		USD	1,176		None
Stock		APPIER GROUP INC.		-		Financial assets at fair value through profit or loss, noncurrent		640		USD	9,093		0.63		USD	9,093		None
Stock		ACHIEVE MADE INTERNATIONAL LTD.		-		Financial assets at fair value through profit or loss, noncurrent		80		USD	16		0.46		USD	16		None
Stock-Preferred stock		ACHIEVE MADE INTERNATIONAL LTD.		-		Financial assets at fair value through profit or loss, noncurrent		2,644		USD	2,623		-		USD	2,623		None
Stock-Preferred stock		CNEX LABS, INC.		-		Financial assets at fair value through profit or loss, noncurrent		454		USD	6,040		-		USD	6,040		None
Stock-Preferred stock		GLYMPSE, INC.		-		Financial assets at fair value through profit or loss, noncurrent		1,349		USD	3,622		-		USD	3,622		None
Stock-Preferred stock		ATSCALE, INC.		-		Financial assets at fair value through profit or loss, noncurrent		8,520		USD	6,139		-		USD	6,139		None
Stock-Preferred stock		SENSIFREE LTD.		-		Financial assets at fair value through profit or loss, noncurrent		614		USD	1,032		-		USD	1,032		None
Stock-Preferred stock		DCARD HOLDINGS LTD.		-		Financial assets at fair value through profit or loss, noncurrent		30,075		USD	6,325		-		USD	6,325		None

90

ATTACHMENT 4 (Securities held as of June 30, 2021) (Excluding subsidiaries, associates and joint ventures)

(Amount in thousand; Currency denomination in NTD or in foreign currencies)

UMC CAPITAL CORP.

June 30, 2021

Type of securities

Name of securities

Relationship

Financial statement account

Units (thousand)/ bonds/ shares (thousand)

Carrying amount

Percentage of ownership (%)

Fair value/ Net assets value

Shares as collateral (thousand)

Stock-Preferred stock

GCT SEMICONDUCTOR, INC.

-

Financial assets at fair value through profit or loss, noncurrent

175

USD

111

-

USD

111

None

Stock-Preferred stock

FORTEMEDIA, INC.

-

Financial assets at fair value through profit or loss, noncurrent

12,241

USD

7,426

-

USD

7,426

None

Stock-Preferred stock

SIFOTONICS TECHNOLOGIES CO., LTD.

-

Financial assets at fair value through profit or loss, noncurrent

3,500

USD

8,761

-

USD

8,761

None

Stock-Preferred stock

NEVO ENERGY, INC.

-

Financial assets at fair value through profit or loss, noncurrent

4,980

-

-

-

None

Stock-Preferred stock

NEXENTA SYSTEMS, INC.

-

Financial assets at fair value through profit or loss, noncurrent

6,555

-

-

-

None

Stock-Preferred stock

CLOUDWORDS, INC.

-

Financial assets at fair value through profit or loss, noncurrent

9,461

USD

5,077

-

USD

5,077

None

Stock-Preferred stock

EAST VISION TECHNOLOGY LTD.

-

Financial assets at fair value through profit or loss, noncurrent

2,770

-

-

-

None

Stock-Preferred stock

RENIAC, INC.

-

Financial assets at fair value through profit or loss, noncurrent

1,287

USD

647

-

USD

647

None

Stock-Preferred stock

BLUESPACE.AI, INC.

-

Financial assets at fair value through profit or loss, noncurrent

174

USD

137

-

USD

137

None

Stock-Preferred stock

REED SEMICONDUCTOR CORP.

-

Financial assets at fair value through profit or loss, noncurrent

3,352

USD

1,006

-

USD

1,006

None

Stock-Preferred stock

A.A.A TARANIS VISUAL LTD.

-

Financial assets at fair value through profit or loss, noncurrent

4

USD

3,413

-

USD

3,413

None

Convertible bonds

GLYMPSE, INC.

-

Financial assets at fair value through profit or loss, noncurrent

-

USD

1,830

-

USD

1,830

None

Convertible bonds

RENIAC, INC.

-

Financial assets at fair value through profit or loss, noncurrent

-

USD

450

-

USD

450

None

TERA ENERGY DEVELOPMENT CO., LTD.

June 30, 2021

Type of securities

Name of securities

Relationship

Financial statement account

Units (thousand)/ bonds/ shares (thousand)

Carrying amount

Percentage of ownership (%)

Fair value/ Net assets value

Shares as collateral (thousand)

Stock

TIAN TAI PHOTOELECTRICITY CO., LTD.

-

Financial assets at fair value through profit or loss, noncurrent

357

$5,146

1.18

$5,146

None

SINO PARAGON LIMITED

June 30, 2021

Type of securities

Name of securities

Relationship

Financial statement account

Units (thousand)/ bonds/ shares (thousand)

Carrying amount

Percentage of ownership (%)

Fair value/ Net assets value

Shares as collateral (thousand)

Fund

SPARKLABS GLOBAL VENTURES FUND I, L.P.

-

Financial assets at fair value through profit or loss, noncurrent

-

$96,206

11.13

$96,206

None

Fund

SPARKLABS KOREA FUND II, L.P.

-

Financial assets at fair value through profit or loss, noncurrent

-

37,797

5.00

37,797

None

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

June 30, 2021

Type of securities

Name of securities

Relationship

Financial statement account

Units (thousand)/ bonds/ shares (thousand)

Carrying amount

Percentage of ownership (%)

Fair value/ Net assets value

Shares as collateral (thousand)

Fund

LANHOR FUND

-

Financial assets at fair value through profit or loss, noncurrent

-

RMB

26,401

9.71

RMB

26,401

None

91

ATTACHMENT 5 (Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20 percent of the capital stock for the six-month period ended June 30, 2021)

(Amount in thousand; Currency denomination in NTD or in foreign currencies)

Type of securities

Name of the securities

Financial statement account

Counter-party

Relationship

Beginning balance

Addition

Disposal

Ending balance

Units (thousand)/ bonds/shares (thousand)

Amount

Units (thousand)/ bonds/shares (thousand)

Amount

Units (thousand)/ bonds/shares (thousand)

Amount

Cost

Gain (Loss) from disposal

Units (thousand)/ bonds/shares (thousand)

Amount

None

92

ATTACHMENT 6 (Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20 percent of the capital stock for the six-month period ended June 30, 2021)

(Amount in thousand; Currency denomination in NTD or in foreign currencies)

Where counter-party is a related party, details of prior transactions

Name of properties

Transaction date

Transaction amount

Payment status

Counter-party

Relationship

Former holder of property

Relationship between former holder and acquirer of property

Date of transaction

Transaction amount

Price reference

Date of acquisition and status of utilization

Other commitments

None

93

ATTACHMENT 7 (Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20 percent of the capital stock for the six-month period ended June 30, 2021)

(Amount in thousand; Currency denomination in NTD or in foreign currencies)

Names of properties

Transaction date

Date of original acquisition

Carrying amount

Transaction amount

Status of proceeds collection

Gain (Loss) from disposal

Counter-party

Relationship

Reason of disposal

Price reference

Other commitments

None

94

ATTACHMENT 8 ( Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million or 20 percent of capital stock for the six-month period ended June 30, 2021)

(Amount in thousand; Currency denomination in NTD or in foreign currencies)

UNITED MICROELECTRONICS CORPORATION

Transactions

Details of non-arm's length transaction

Notes and accounts receivable (payable)

Note

Counter-party

Relationship

Purchases (Sales)

Amount

Percentage of total purchases (sales)

Term

Unit price

Term

Balance

Percentage of total receivables (payable)

UMC GROUP (USA)

Subsidiary

Sales

$22,802,598

31

%

Net 60 days

N/A

N/A

$5,765,109

26

%

FARADAY TECHNOLOGY CORPORATION

Associate

Sales

939,653

1

%

Month-end 60 days

N/A

N/A

257,157

1

%

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

Subsidiary

Sales

626,693

1

%

Net 30 days

N/A

N/A

14,323

0

%

UMC GROUP (USA)

Transactions

Details of non-arm's length transaction

Notes and accounts receivable (payable)

Note

Counter-party

Relationship

Purchases (Sales)

Amount

Percentage of total purchases (sales)

Term

Unit price

Term

Balance

Percentage of total receivables (payable)

UNITED MICROELECTRONICS CORPORATION

Parent company

Purchases

USD

784,905

89

%

Net 60 days

N/A

N/A

USD

207,915

86

%

UNITED SEMICONDUCTOR JAPAN CO., LTD.

Associate

Purchases

USD

50,373

6

%

Net 60 days

N/A

N/A

USD

20,106

8

%

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

Associate

Purchases

USD

27,429

3

%

Net 60 days

N/A

N/A

USD

9,473

4

%

WAVETEK MICROELECTRONICS CORPORATION

Associate

Purchases

USD

7,701

1

%

Net 60 days

N/A

N/A

USD

2,687

1

%

HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.

Associate

Purchases

USD

6,478

1

%

Net 60 days

N/A

N/A

USD

2,462

1

%

UNITED SEMICONDUCTOR JAPAN CO., LTD.

Transactions

Details of non-arm's length transaction

Notes and accounts receivable (payable)

Note

Counter-party

Relationship

Purchases (Sales)

Amount

Percentage of total purchases (sales)

Term

Unit price

Term

Balance

Percentage of total receivables (payable)

UMC GROUP (USA)

Associate

Sales

JPY

5,735,621

18

%

Net 60 days

N/A

N/A

JPY

2,223,949

15

%

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

Transactions

Details of non-arm's length transaction

Notes and accounts receivable (payable)

Note

Counter-party

Relationship

Purchases (Sales)

Amount

Percentage of total purchases (sales)

Term

Unit price

Term

Balance

Percentage of total receivables (payable)

UMC GROUP (USA)

Associate

Sales

RMB

178,381

9

%

Net 60 days

N/A

N/A

RMB

61,126

11

%

FARADAY TECHNOLOGY CORPORATION

Associate

Sales

RMB

31,696

2

%

Net 60 days

N/A

N/A

RMB

5,238

1

%

WAVETEK MICROELECTRONICS CORPORATION

Transactions

Details of non-arm's length transaction

Notes and accounts receivable (payable)

Note

Counter-party

Relationship

Purchases (Sales)

Amount

Percentage of total purchases (sales)

Term

Unit price

Term

Balance

Percentage of total receivables (payable)

UMC GROUP (USA)

Associate

Sales

$221,008

21

%

Net 60 days

N/A

N/A

$74,733

23

%

HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.

Transactions

Details of non-arm's length transaction

Notes and accounts receivable (payable)

Note

Counter-party

Relationship

Purchases (Sales)

Amount

Percentage of total purchases (sales)

Term

Unit price

Term

Balance

Percentage of total receivables (payable)

UMC GROUP (USA)

Associate

Sales

RMB

42,061

3

%

Net 60 days

N/A

N/A

RMB

15,903

4

%

95

ATTACHMENT 9 (Receivables from related parties with amounts exceeding the lower of NT$100 million or 20 percent of capital stock as of June 30, 2021)

(Amount in thousand; Currency denomination in NTD or in foreign currencies)

UNITED MICROELECTRONICS CORPORATION

Ending balance

Turnover rate (times)

Overdue receivables

Amount received in subsequent period

Loss allowance

Counter-party

Relationship

Notes receivable

Accounts receivable

Other receivables

Total

Amount

Collection status

UMC GROUP (USA)

Subsidiary

$-

$5,765,109

$5,471

$5,770,580

8.18

$6,276

Collection in subsequent period

$2,691,614

$11,567

FARADAY TECHNOLOGY CORP.

Associate

-

257,157

23

257,180

10.06

9,594

Collection in subsequent period

-

222

UNITED SEMICONDUCTOR JAPAN CO., LTD.

Ending balance

Turnover rate (times)

Overdue receivables

Amount received in subsequent period

Loss allowance

Counter-party

Relationship

Notes receivable

Accounts receivable

Other receivables

Total

Amount

Collection status

UMC GROUP (USA)

Associate

JPY -

JPY

2,223,949

JPY -

JPY

2,223,949

5.90

JPY -

-

JPY

950,036

JPY

-

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

Ending balance

Turnover rate (times)

Overdue receivables

Amount received in subsequent period

Loss allowance

Counter-party

Relationship

Notes receivable

Accounts receivable

Other receivables

Total

Amount

Collection status

UMC GROUP (USA)

Associate

RMB -

RMB

61,126

RMB -

RMB

61,126

6.02

RMB -

-

RMB

-

RMB

69

96

ATTACHMENT 10 (Names, locations and related information of investee companies as of June 30, 2021) (Not including investment in Mainland China)
(Amount in thousand; Currency denomination in NTD or in foreign currencies)
UNITED MICROELECTRONICS CORPORATION
Investee company		Address		Main businesses and products		Initial Investment		Investment as of June 30, 2021		Net income (loss) of investee company		Investment income (loss) recognized		Note
	Ending balance		Beginning balance	Number of shares (thousand)		Percentage of ownership (%)		Carrying amount
UMC GROUP (USA)		USA		IC Sales		USD	16,438		USD	16,438		16,438		100.00			$1,669,364			$(12,308)			$(12,308)
UNITED MICROELECTRONICS (EUROPE) B.V.		The Netherlands		Marketing support activities		USD	5,421		USD	5,421		9		100.00			134,713			1,911			1,911
UMC CAPITAL CORP.		Cayman Islands		Investment holding		USD	81,500		USD	81,500		71,663		100.00			5,211,622			1,229,506			1,229,506
GREEN EARTH LIMITED		Samoa		Investment holding		USD	977,000		USD	977,000		977,000		100.00			9,106,500			(887,277)			(887,277)
TLC CAPITAL CO., LTD.		Taipei City, Taiwan		Venture capital			4,610,000			4,610,000		421,983		100.00			4,868,924			352,708			352,708
UMC INVESTMENT (SAMOA) LIMITED		Samoa		Investment holding		USD	1,520		USD	1,520		1,520		100.00			39,112			(849)			(849)
FORTUNE VENTURE CAPITAL CORP.		Taipei City, Taiwan		Consulting and planning for venture capital			3,440,053			3,440,053		444,752		100.00			5,911,757			583,291			583,291
UMC KOREA CO., LTD.		Korea		Marketing support activities		KRW	550,000		KRW	550,000		110		100.00			21,053			499			499
OMNI GLOBAL LIMITED		Samoa		Investment holding		USD	4,300		USD	4,300		4,300		100.00			588,767			14,868			14,868
SINO PARAGON LIMITED		Samoa		Investment holding		USD	2,600		USD	2,600		2,600		100.00			136,614			(5,739)			(5,739)
BEST ELITE INTERNATIONAL LIMITED		British Virgin Islands		Investment holding		USD	309,102		USD	309,102		664,966		100.00			24,055,854			1,535,921			1,535,921
UNITED SEMICONDUCTOR JAPAN CO., LTD.		Japan		Sales and manufacturing of integrated circuits		JPY	64,421,068		JPY	64,421,068		116,247		100.00			17,159,154			1,122,117			1,122,117
WAVETEK MICROELECTRONICS CORPORATION		Hsinchu County, Taiwan		Sales and manufacturing of integrated circuits			1,903,741			1,903,741		148,112		80.29			341,718			(62,709)			(50,770)
MTIC HOLDINGS PTE. LTD.		Singapore		Investment holding		SGD	12,000		SGD	12,000		12,000		45.44			-			(213,992)			(26,295)
UNITECH CAPITAL INC.		British Virgin Islands		Investment holding		USD	21,000		USD	21,000		21,000		42.00			850,393			390,740			164,111
TRIKNIGHT CAPITAL CORPORATION		Taipei City, Taiwan		Investment holding			2,342,800			2,342,800		234,280		40.00			2,905,912			1,358,292			543,317
HSUN CHIEH INVESTMENT CO., LTD.		Taipei City, Taiwan		Investment holding			336,241			336,241		858,851		36.49			11,370,011			4,025,509			1,468,827
YANN YUAN INVESTMENT CO., LTD.		Taipei City, Taiwan		Investment holding			2,300,000			2,300,000		46,000		28.22			7,956,533			17,573			5,425
FARADAY TECHNOLOGY CORPORATION		Hsinchu City, Taiwan		Design of application-specific integrated circuit			38,918			38,918		34,240		13.78			1,661,423			267,913			36,908
UNIMICRON TECHNOLOGY CORP.		Taoyuan City, Taiwan		Manufacturing of PCB			2,438,565			2,438,565		196,136		13.30			9,565,280			3,063,547			409,437

97

ATTACHMENT 10 (Names, locations and related information of investee companies as of June 30, 2021) (Not including investment in Mainland China)

(Amount in thousand; Currency denomination in NTD or in foreign currencies)

FORTUNE VENTURE CAPITAL CORP.

Investee company

Address

Main businesses and products

Initial Investment

Investment as of June 30, 2021

Net income (loss) of investee company

Investment income (loss) recognized

Note

Ending balance

Beginning balance

Number of shares (thousand)

Percentage of ownership (%)

Carrying amount

TERA ENERGY DEVELOPMENT CO., LTD.

Hsinchu City, Taiwan

Energy Technical Services

$100,752

$100,752

18,655

100.00

$81,048

$19,066

$19,066

PURIUMFIL INC.

Hsinchu City, Taiwan

Chemicals and filtration products & Microcontamination control service

10,000

10,000

1,000

44.45

6,188

(41)

(18)

UNITED LED CORPORATION HONG KONG LIMITED

Hongkong

Investment holding

USD

22,500

USD

22,500

22,500

25.14

96,397

7,324

1,841

WAVETEK MICROELECTRONICS CORPORATION

Hsinchu County, Taiwan

Sales and manufacturing of integrated circuits

8,856

8,856

1,194

0.65

3,593

(62,709)

(409)

TLC CAPITAL CO., LTD.

Investee company

Address

Main businesses and products

Initial Investment

Investment as of June 30, 2021

Net income (loss) of investee company

Investment income (loss) recognized

Note

Ending balance

Beginning balance

Number of shares (thousand)

Percentage of ownership (%)

Carrying amount

SOARING CAPITAL CORP.

Samoa

Investment holding

USD

900

USD

900

900

100.00

$8,173

$172

$172

HSUN CHIEH CAPITAL CORP.

Samoa

Investment holding

USD

8,000

USD

8,000

8,000

40.00

242,894

129,127

51,651

VSENSE CO., LTD.

Taipei City, Taiwan

Medical devices, measuring equipment, reagents and consumables

95,916

95,916

4,251

23.98

-

(8,181)

(942)

UMC CAPITAL CORP.

Investee company

Address

Main businesses and products

Initial Investment

Investment as of June 30, 2021

Net income (loss) of investee company

Investment income (loss) recognized

Note

Ending balance

Beginning balance

Number of shares (thousand)

Percentage of ownership (%)

Carrying amount

TRANSLINK CAPITAL PARTNERS I, L.P.

Cayman Islands

Investment holding

USD

3,962

USD

4,036

-

10.38

USD

4,613

USD

(6,042)

USD

(220)

TERA ENERGY DEVELOPMENT CO., LTD.

Investee company

Address

Main businesses and products

Initial Investment

Investment as of June 30, 2021

Net income (loss) of investee company

Investment income (loss) recognized

Note

Ending balance

Beginning balance

Number of shares (thousand)

Percentage of ownership (%)

Carrying amount

EVERRICH ENERGY INVESTMENT (HK) LIMITED

Hongkong

Investment holding

USD

750

USD

750

750

100.00

$41,551

$901

$901

WAVETEK MICROELECTRONICS CORPORATION

Investee company

Address

Main businesses and products

Initial Investment

Investment as of June 30, 2021

Net income (loss) of investee company

Investment income (loss) recognized

Note

Ending balance

Beginning balance

Number of shares (thousand)

Percentage of ownership (%)

Carrying amount

WAVETEK MICROELECTRONICS INVESTMENT (SAMOA) LIMITED

Samoa

Investment holding

USD

1,650

USD

1,650

1,650

100.00

$2,864

$(102)

$(102)

98

ATTACHMENT 10 (Names, locations and related information of investee companies as of June 30, 2021) (Not including investment in Mainland China)

(Amount in thousand; Currency denomination in NTD or in foreign currencies)

WAVETEK MICROELECTRONICS INVESTMENT (SAMOA) LIMITED

Investee company

Address

Main businesses and products

Initial Investment

Investment as of June 30, 2021

Net income (loss) of investee company

Investment income (loss) recognized

Note

Ending balance

Beginning balance

Number of shares (thousand)

Percentage of ownership (%)

Carrying amount

WAVETEK MICROELECTRONICS CORPORATION (USA)

USA

Marketing service

USD

60

USD

60

60

100.00

$2,665

$(54)

$(54)

BEST ELITE INTERNATIONAL LIMITED

Investee company

Address

Main businesses and products

Initial Investment

Investment as of June 30, 2021

Net income (loss) of investee company

Investment income (loss) recognized

Note

Ending balance

Beginning balance

Number of shares (thousand)

Percentage of ownership (%)

Carrying amount

INFOSHINE TECHNOLOGY LIMITED

British Virgin Islands

Investment holding

USD

354,000

USD

354,000

-

100.00

$24,120,409

$1,539,285

$1,539,285

INFOSHINE TECHNOLOGY LIMITED

Investee company

Address

Main businesses and products

Initial Investment

Investment as of June 30, 2021

Net income (loss) of investee company

Investment income (loss) recognized

Note

Ending balance

Beginning balance

Number of shares (thousand)

Percentage of ownership (%)

Carrying amount

OAKWOOD ASSOCIATES LIMITED

British Virgin Islands

Investment holding

USD

354,000

USD

354,000

-

100.00

$24,120,409

$1,539,285

$1,539,285

OMNI GLOBAL LIMITED

Investee company

Address

Main businesses and products

Initial Investment

Investment as of June 30, 2021

Net income (loss) of investee company

Investment income (loss) recognized

Note

Ending balance

Beginning balance

Number of shares (thousand)

Percentage of ownership (%)

Carrying amount

UNITED MICROTECHNOLOGY CORPORATION (CALIFORNIA)

USA

Research & Development

USD

1,000

USD

1,000

0

100.00

$34,616

$726

$726

ECP VITA PTE. LTD.

Singapore

Insurance

USD

9,000

USD

9,000

9,000

100.00

553,331

24,532

24,532

UMC TECHNOLOGY JAPAN CO., LTD.

Japan

Semiconductor manufacturing technology development and consulting services

-

JPY

35,000

-

-

-

(182)

(182)

Note

Note: UMC TECHNOLOGY JAPAN CO., LTD. was dissolved and liquidated on March 29, 2021.

GREEN EARTH LIMITED

Investee company

Address

Main businesses and products

Initial Investment

Investment as of June 30, 2021

Net income (loss) of investee company

Investment income (loss) recognized

Note

Ending balance

Beginning balance

Number of shares (thousand)

Percentage of ownership (%)

Carrying amount

UNITED MICROCHIP CORPORATION

Cayman

Investment holding

USD

974,050

USD

974,050

974,050

100.00

$9,081,677

$(886,714)

$(886,714)

99

ATTACHMENT 11 (Investment in Mainland China as of June 30, 2021)
(Amount in thousand; Currency denomination in NTD or in foreign currencies)
Investee company		Main businesses and products		Total amount of paid-in capital		Method of investment (Note 1)		Accumulated outflow of investment from Taiwan as of January 1, 2021		Investment flows		Accumulated outflow of investment from Taiwan as of June 30, 2021					Percentage of ownership		Investment income (loss) recognized (Note 2)		Carrying amount as of June 30, 2021		Accumulated inward remittance of earnings as of June 30, 2021
		Outflow		Inflow			Net income (loss) of investee company
UNITRUTH ADVISOR (SHANGHAI) CO., LTD.		Investment Holding and advisory		(USD	$22,248 800)		(ii)SOARING CAPITAL CORP.		(USD	$22,248 800)			$-			$-		(USD	$22,248 800)			$176		100.00%			$176 (iii)			$8,006			$-
EVERRICH (SHANDONG) ENERGY CO., LTD.		Solar engineering integrated design services		(USD	20,858 750)		(ii)EVERRICH ENERGY INVESTMENT (HK) LIMITED		(USD	20,858 750)			-			-		(USD	20,858 750)			908		100.00%			908 (iii)			41,119		(USD	122,142 4,392)
UNITED LED CORPORATION		Research, manufacturing and sales in LED epitaxial wafers		(USD	2,336,040 84,000)		(ii)UNITED LED CORPORATION HONG KONG LIMITED		(USD	563,153 20,250)			-			-		(USD	563,153 20,250)		(RMB	7,426 1,733)		25.14%		(RMB	1,868 436) (ii)		(RMB	93,366 21,789)			-
HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.		Sales and manufacturing of integrated circuits		(RMB	13,477,585 3,145,294)		(ii)OAKWOOD ASSOCIATES LIMITED		(USD	8,596,127 309,102)			-			-		(USD	8,596,127 309,102)		(RMB	1,530,118 357,087)		99.9985% (Note 4)		(RMB	1,530,096 357,082) (ii)		(RMB	23,433,692 5,468,773)			-
UNITEDDS SEMICONDUCTOR (SHANDONG) CO., LTD.		Design support of integrated circuits		(RMB	128,550 30,000)		(iii)HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.			-			-			-			-		(RMB	49,226 11,488)		99.9985%		(RMB	49,226 11,488) (iii)		(RMB	337,131 78,677)			-
UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.		Sales and manufacturing of integrated circuits		(RMB	58,695,047 13,697,794)		(ii)UNITED MICROCHIP CORPORATION and (iii)HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.		(USD	26,835,704 964,966) (Note5)			-			-		(USD	26,835,704 964,966) (Note5)		(RMB	(1,842,593) (430,010))		67.76%		(RMB	(1,248,473) (291,359)) (ii)		(RMB	13,107,395 3,058,902)			-
Accumulated investment in Mainland China as of June 30, 2021		Investment amounts authorized by Investment Commission, MOEA		Upper limit on investment
$36,038,089 (USD 1,295,868)			$59,171,838 (USD 2,127,718)			$144,051,556

Note 1 :	The methods for engaging in investment in Mainland China include the following:
		(i) Direct investment in Mainland China.
		(ii) Indirectly investment in Mainland China through companies registered in a third region (Please specify the name of the company in third region).
		(iii) Other methods.
Note 2 :	The investment income (loss) recognized in current period, the investment income (loss) were determined based on the following basis:
		(i) The financial report was reviewed by an international certified public accounting firm in cooperation with an R.O.C. accounting firm.
		(ii) The financial statements were reviewed by the auditors of the parent company.
		(iii) Others.
Note 3 :	Initial investment amounts denominated in foreign currencies are translated into New Taiwan Dollars using the spot rates at the financial report date.
Note 4 :	The Company indirectly invested in HEJIAN TECHNOLOGY (SUZHOU) CO., LTD. via investment in BEST ELITE INTERNATIONAL LIMITED, an equity investee. The investment has been approved by the Investment Commission, MOEA
		in the total amount of USD 383,569 thousand. As of June 30, 2021, the amount of investment has been all remitted.
Note 5 :	The investment to UNITED SEMICONDUCTOR (XIAMEN) CO., LTD. (USCXM) from HEJIAN TECHNOLOGY (SUZHOU) CO., LTD. and indirectly invested in USCXM via investment in GREEN EARTH LIMITED.
		The consent to invest in USCXM's investment has been approved by the Investment Commission, MOEA in the total amount of USD 1,722,349 thousand. As of June 30, 2021, the amount of investment USD 357,138 thousand has not yet been remitted.

100

ATTACHMENT 12 (Information of major shareholders as of June 30, 2021)
UNITED MICROELECTRONICS CORPORATION
Name		Number of shares		Percentage of ownership (%)
JPMorgan Chase Bank, N.A. acting in its capacity as depositary and representative to the holders of ADRs		722,904,280		5.81