United Microelectronics Corporation (NEW)

Welcome everyone to UMC's 2021 second quarter earnings conference call. All lines have been placed on mute to prevent background noise. After the presentation, there will be a question and answer session. Please follow the instructions given at that time if you would like to ask the question. For your information, this conference call is now being broadcast live over the internet. Webcast replay will be available within an hour after the conference has finished. please visit our website, www.umc.com, under the Investor Relations, Investors Events section. And now I would like to introduce Mr. Michael Lin, Head of Investor Relations at UMC. And Mr. Lin, please begin.

Thank you and welcome to the UMC's conference call for the second quarter of 2021. I am joined by Mr. Jason Wong, the President of UMC, and Mr. Chi-Tung Liu, the CFO of UNC. In a moment, we will hear our CFO present the second quarter financial results, followed by our President's key message to address UNC's focus and the third quarter 2021 guidance. Once our President and the CFO complete their remarks, there will be a Q&A session. UNC's quarterly financial reports are available at our website, www.unc.com. under the investor's financial section. During this conference, we may make forward-looking statements based on management's current expectations and beliefs. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially including the risks that may be beyond the company's control. For this risk, Please refer to UMC's filing with the SEC in the U.S. and the ROC security authorities. Now, I would like to introduce UMC's CFO, Mr. Chi-Jung Liu, to discuss UMC's second quarter 2021 financial result.

Thank you, Michael. I would like to go through the 2Q21 Investor Conference presentation material, which can be downloaded from our website. Starting on page 3, the second quarter of 2021 Consolidated revenue was over the $50 billion mark to reach $50.91 billion, with the gross margin at 31.3%. The net income attributable to the stock quarter of the parent was $11.94 billion, and the earnings per ordinary shares were $98.20. Our utilization rate in this quarter remained at 100% plus for the second quarter, and the The wafer shipment in Q2 of 2021 was 2.4 million in wafer equivalent. Please turn to page four. Our quarterly revenue in second quarter reached $50.9 billion, up 8.1%, helped both by the higher wafer shipment as well as the increased ASP. Profit margin as a result increased to 31.3% or 15.9 billion NT dollars. And overall net income attributable to the shareholder of the parent is 23.5% or 11.9 billion NT. EPS in Q2 2021 was 0.98 NT dollars. On page five, for the first six months of the year, year-over-year comparison, revenue grew by 13.1%, mainly driven by higher volume as well as better product mix and also higher ASP. However, it was somewhat dampened by the increased $20 exchange rate against U.S. dollars. Gross profit margin reached 29% for the first half of 2021 to $28.4 billion. And overall net income reached $22.3 billion or 22.8% margins. And EPS for the first six months of the year is $1.8320. For our balance sheet, our cash on hand is about $124 billion NT, including about $20 billion will be distributed to shareholders as cash dividends in mid-August. And total equity reached $240 billion. And net asset dollar value per share is around $19.3 billion. On page 8, revenue breakdown by locations, Asia increased, sorry, on page 8. Yeah, page 8. Revenue breakdown, Asia remained at 63%, and Japan increased to about 7%, and the rest two regions, remain somewhat unchanged. I'm sorry, on page seven, therefore I can skip the page earlier, ASE in quarter two increased by close to 5%. So back to page nine, IDM represents 16% of the total revenue, and Fabulous is the rest of 84%. On page 10, Our communication segment is 47%. Consumer is around 26%. So on page 11, our overall revenue below 40 nanometer is around 38%. And 28 nanometer, since it's running at 100% capacity utilization rate, is around 20%, similar to that of last quarter. And capacity, total capacity table show some incremental increase, mainly for 12a as well as 12x. And going forward, for third quarter, there will still be some type of capacity increase for selected . So for page 13, our for 2021, The budget remained unchanged around 2.3 billion US dollars. So the above is a summary of UMC's results for Q2 2021. More details are available in the report, which has been posted on our website. I will now turn the call over to President of UMC, Mr. Jason Wong.