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Equibles

6-K

United Microelectronics Corp (UMC)

6-K 2026-04-29 For: 2026-04-29
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Added on April 29, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

April 29, 2026

(Commission File Number: 001-15128)

United Microelectronics Corporation

(Translation of registrant’s name into English)

No. 3 Li-Hsin 2nd Road,

Hsinchu Science Park,

Hsinchu, Taiwan, R.O.C.

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  Form 40-F 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b) (1): 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b) (7): 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

United Microelectronics Corporation
By: Chitung Liu
Name: Chitung Liu
Title: CFO

Date: April 29, 2026

EXHIBIT INDEX

Exhibit Description
99.1 2026Q1ConsolidatedFinancialStatements

EX-99.1

UNITED MICROELECTRONICS CORPORATION

AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

WITH REPORT OF INDEPENDENT AUDITORS

FOR THE THREE-MONTH PERIODS ENDED

MARCH 31, 2026 AND 2025

Address: No. 3 Li-Hsin 2nd Road, Hsinchu Science Park, Hsinchu, Taiwan, R.O.C.

Telephone: 886-3-578-2258

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.

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 March 31, 2026 and 2025, the related consolidated statements of comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2026 and 2025, and notes to the consolidated financial statements, including the summary of material 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 the Standard on Review Engagements 2410, “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 the Standards on Auditing of 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 March 31, 2026 and 2025, and its consolidated financial performance and cash flows for the three-month periods ended March 31, 2026 and 2025, 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.

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$31,365 million and NT$26,838 million, which represented 5.23% and 4.68% of the total consolidated assets as of March 31, 2026 and 2025, respectively, the related shares of profit or loss from the associates and joint ventures in the amount of NT$2,287 million and NT$(258) million, which represented 13.74% and (2.76)% of the consolidated income from continuing operations before income tax for the three-month periods ended March 31, 2026 and 2025, respectively, and the related shares of other comprehensive income (loss) from the associates and joint ventures in the amount of NT$229 million and NT$71 million, which represented 0.87% and 0.58% of the consolidated total comprehensive income (loss) for the three-month periods ended March 31, 2026 and 2025, respectively, are based solely on the reports of other independent auditors.

/s/ Yang, Yu-Ni

/s/ Yu, Chien-Ju

Ernst & Young, Taiwan

April 29, 2026

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 Standards on Auditing of the Republic of China, and their applications in practice.

English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 2026, December 31, 2025 and March 31, 2025
(Expressed in Thousands of New Taiwan Dollars)
As of
Assets Notes March 31, 2026 December 31, 2025 March 31, 2025
Current assets
Cash and cash equivalents 4, 6(1) $ 109,018,591 $ 110,660,052 $ 106,353,757
Financial assets at fair value through profit or loss, current 4, 5, 6(2) 528,114 568,521 555,297
Financial assets at fair value through other comprehensive income, current 4, 5, 6(3) 4,698,536 4,630,441 6,398,188
Financial assets measured at amortized cost, current 4, 6(4) 20,018,535 12,506,177 3,561,874
Contract assets, current 4, 6(21) 618,175 705,398 343,808
Accounts receivable, net 4, 6(5) 34,703,319 30,772,159 34,388,850
Accounts receivable-related parties, net 4, 7 899,797 502,149 411,775
Other receivables 4, 7 2,787,412 2,457,085 1,842,446
Current tax assets 4 86,778 66,443 85,811
Inventories, net 4, 5, 6(6) 38,645,404 37,228,383 35,424,924
Prepayments 2,973,533 3,496,213 2,071,232
Other current assets 6(21) 1,462,075 1,190,237 885,124
Total current assets 216,440,269 204,783,258 192,323,086
Non-current assets
Financial assets at fair value through profit or loss, noncurrent 4, 5, 6(2) 19,975,357 17,585,395 17,774,318
Financial assets at fair value through other comprehensive income, noncurrent 4, 5, 6(3) 10,767,558 9,144,308 11,233,876
Investments accounted for under the equity method 4, 6(7), 7 56,068,711 48,642,917 42,399,076
Property, plant and equipment 4, 6(8), 8 267,897,928 271,395,296 282,051,327
Right-of-use assets 4, 6(9), 8 7,499,837 7,476,034 7,948,011
Intangible assets 4, 6(10), 7 4,459,819 4,742,876 3,909,747
Deferred tax assets 4 9,697,361 8,522,637 5,389,623
Prepayment for equipment 1,598,502 1,162,218 3,501,145
Refundable deposits 8 1,704,119 1,643,661 2,004,411
Other noncurrent assets-others 6(21) 3,822,447 3,897,409 4,427,663
Total non-current assets 383,491,639 374,212,751 380,639,197
Total assets $ 599,931,908 $ 578,996,009 $ 572,962,283
(continued)
English Translation of Consolidated Financial Statements Originally Issued in Chinese
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UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 2026, December 31, 2025 and March 31, 2025
(Expressed in Thousands of New Taiwan Dollars)
As of
Liabilities and Equity Notes March 31, 2026 December 31, 2025 March 31, 2025
Current liabilities
Short-term loans 6(11), 6(28) $ 3,589,671 $ 8,408,772 $ 6,500,000
Financial liabilities at fair value through profit or loss, current 4, 6(12) 39,699 57,163 1,098,893
Contract liabilities, current 4, 6(21) 3,488,932 2,580,789 2,607,965
Accounts payable 9,072,984 9,169,828 9,273,324
Other payables 4, 6(20), 6(22), 7 22,841,451 24,447,427 22,018,614
Payables on equipment 7,979,876 11,680,298 8,464,775
Current tax liabilities 4 5,166,548 3,582,275 4,261,172
Lease liabilities, current 4, 6(9), 6(28) 628,110 624,825 639,835
Current portion of long-term liabilities 4, 6(13), 6(14), 6(28) 19,298,587 19,188,041 11,131,620
Other current liabilities 4, 6(16), 6(17), 6(18), 6(28) 7,505,517 7,858,719 6,877,168
Total current liabilities 79,611,375 87,598,137 72,873,366
Non-current liabilities
Contract liabilities, noncurrent 4, 6(21) 1,795,430 1,787,375 465,220
Bonds payable 4, 6(13), 6(28) 34,073,429 34,071,144 24,586,311
Long-term loans 6(14), 6(28) 13,091,599 11,300,910 20,041,099
Deferred tax liabilities 4 12,062,038 11,922,365 8,517,492
Lease liabilities, noncurrent 4, 6(9), 6(28) 5,354,349 5,376,021 5,699,701
Net defined benefit liabilities, noncurrent 4 849,970 866,219 1,051,517
Guarantee deposits 6(28) 40,216,208 39,805,928 42,289,772
Other noncurrent liabilities-others 4, 6(16), 6(18) 6,141,352 6,412,470 6,609,174
Total non-current liabilities 113,584,375 111,542,432 109,260,286
Total liabilities 193,195,750 199,140,569 182,133,652
Equity attributable to the parent company
Capital 4, 6(19)
Common stock 125,785,246 125,881,563 125,583,590
Additional paid-in capital 4, 6(19), 6(20)
Premiums 5,200,426 5,200,426 4,960,958
Treasury stock transactions 4,531,955 4,531,955 4,531,955
The differences between the fair value of the consideration paid or received from acquiring or<br>            disposing subsidiaries and the carrying amounts of the subsidiaries 3,039,275 3,039,275 3,039,275
Recognition of changes in subsidiaries’ ownership 32,085 23,954 26,468
Share of changes in net assets of associates and joint ventures accounted for using equity method 927,524 612,905 529,460
Restricted stock for employees 2,057,244 1,977,084 1,886,214
Other 23,652 24,001 20,826
Retained earnings 6(19)
Legal reserve 41,466,099 41,466,099 36,727,862
Unappropriated earnings 207,599,300 191,416,874 197,887,505
Other components of equity 4, 6(20)
Exchange differences on translation of foreign operations 322,108 (4,726,963 ) 5,163,151
Unrealized gains or losses on financial assets measured at fair value through other comprehensive income 17,588,700 12,443,737 12,018,092
Unearned employee compensation (1,873,017 ) (2,122,645 ) (1,770,458 )
Total equity attributable to the parent company 406,700,597 379,768,265 390,604,898
Non-controlling interests 6(19) 35,561 87,175 223,733
Total equity 406,736,158 379,855,440 390,828,631
Total liabilities and equity $ 599,931,908 $ 578,996,009 $ 572,962,283
The accompanying notes are an integral part of the consolidated financial statements.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
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UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the three-month periods ended March 31, 2026 and 2025
(Expressed in Thousands of New Taiwan Dollars, Except for Earnings per Share)
For the three-month periods ended March 31,
Notes 2026 2025
Operating revenues 4, 6(21), 7 $ 61,037,902 $ 57,858,957
Operating costs 4, 6(6), 6(10), 6(15), <br>6(20), 6(21), 6(22), 7 (43,219,412 ) (42,412,312 )
Gross profit 17,818,490 15,446,645
Operating expenses 4, 6(5), 6(10), 6(15), 6(20), 6(22), 7
Sales and marketing expenses (689,250 ) (619,236 )
General and administrative expenses (1,834,135 ) (1,542,431 )
Research and development expenses (4,575,300 ) (3,963,703 )
Expected credit impairment gains 45 2,406
Subtotal (7,098,640 ) (6,122,964 )
Net other operating income and expenses 4, 6(16), 6(23) 556,561 462,220
Operating income 11,276,411 9,785,901
Non-operating income and expenses
Interest income 4 442,235 605,314
Other income 4 57,462 11,514
Other gains and losses 4, 6(24) 2,114,262 (564,722 )
Finance costs 6(24) (364,361 ) (398,973 )
Share of profit or loss of associates and joint ventures 4, 6(7) 2,815,136 (207,888 )
Exchange gain, net 4 302,685 115,425
Subtotal 5,367,419 (439,330 )
Income from continuing operations before income tax 16,643,830 9,346,571
Income tax expense 4, 6(26) (526,846 ) (1,603,332 )
Net income 16,116,984 7,743,239
Other comprehensive income (loss) 6(25)
Items that will not be reclassified subsequently to profit or loss
Unrealized gains or losses from equity instruments investments measured at<br>        fair value through other comprehensive income 4 1,691,345 583,395
Share of other comprehensive income (loss) of associates and joint ventures <br>        which will not be reclassified subsequently to profit or loss 3,603,309 (558,224 )
Income tax related to items that will not be reclassified subsequently 4, 6(26) (138,739 ) (2,453 )
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations 5,246,645 4,696,653
Share of other comprehensive income (loss) of associates and joint ventures<br>        which may be reclassified subsequently to profit or loss 125,361 103,736
Income tax related to items that may be reclassified subsequently 4, 6(26) (322,881 ) (333,994 )
Total other comprehensive income (loss) 10,205,040 4,489,113
Total comprehensive income (loss) $ 26,322,024 $ 12,232,352
Net income (loss) attributable to:
Shareholders of the parent $ 16,171,474 $ 7,776,741
Non-controlling interests (54,490 ) (33,502 )
$ 16,116,984 $ 7,743,239
Comprehensive income (loss) attributable to:
Shareholders of the parent $ 26,376,460 $ 12,265,825
Non-controlling interests (54,436 ) (33,473 )
$ 26,322,024 $ 12,232,352
Earnings per share (NTD) 4, 6(27)
Earnings per share-basic $ 1.29 $ 0.62
Earnings per share-diluted $ 1.29 $ 0.62
The accompanying notes are an integral part of the consolidated financial statements.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
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UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the three-month periods ended March 31, 2026 and 2025
(Expressed in Thousands of New Taiwan Dollars)
Equity Attributable to the Parent Company
Capital Retained Earnings Other Components of Equity
Notes Common Stock Additional<br> Paid-in Capital Legal Reserve Unappropriated <br>Earnings Exchange Differences on Translation of Foreign Operations Unrealized<br>Gains or Losses<br>on Financial<br>Assets Measured<br>at Fair Value<br>through Other<br>Comprehensive<br>Income Unearned Employee Compensation Total Non-<br>Controlling <br>Interests Total Equity
Balance as of January 1, 2025 6(19) $ 125,607,164 $ 14,782,476 $ 36,727,862 $ 190,120,643 $ 696,785 $ 11,985,495 $ (1,992,034 ) $ 377,928,391 $ 256,613 $ 378,185,004
Net income (loss) for the three-month period ended March 31, 2025 6(19) - - - 7,776,741 - - - 7,776,741 (33,502 ) 7,743,239
Other comprehensive income (loss) for the three-month period ended <br>        March 31, 2025 6(19), 6(25) - - - - 4,466,366 22,718 - 4,489,084 29 4,489,113
Total comprehensive income (loss) - - - 7,776,741 4,466,366 22,718 - 12,265,825 (33,473 ) 12,232,352
Share-based payment transaction 4, 6(19), 6(20) (23,574 ) 9,029 - - - - 221,576 207,031 457 207,488
Share of changes in net assets of associates and joint ventures accounted for <br>        using equity method - 200,781 - (9,879 ) - 9,879 - 200,781 - 200,781
Changes in subsidiaries’ ownership 4, 6(19) - 2,902 - - - - - 2,902 (1,032 ) 1,870
Non-Controlling Interests 6(19) - - - - - - - - 1,168 1,168
Others - (32 ) - - - - - (32 ) - (32 )
Balance as of March 31, 2025 6(19) $ 125,583,590 $ 14,995,156 $ 36,727,862 $ 197,887,505 $ 5,163,151 $ 12,018,092 $ (1,770,458 ) $ 390,604,898 $ 223,733 $ 390,828,631
Balance as of January 1, 2026 6(19) $ 125,881,563 $ 15,409,600 $ 41,466,099 $ 191,416,874 $ (4,726,963 ) $ 12,443,737 $ (2,122,645 ) $ 379,768,265 $ 87,175 $ 379,855,440
Net income (loss) for the three-month period ended March 31, 2026 6(19) - - - 16,171,474 - - - 16,171,474 (54,490 ) 16,116,984
Other comprehensive income (loss) for the three-month period ended <br>        March 31, 2026 6(19), 6(25) - - - - 5,049,071 5,155,915 - 10,204,986 54 10,205,040
Total comprehensive income (loss) - - - 16,171,474 5,049,071 5,155,915 - 26,376,460 (54,436 ) 26,322,024
Share-based payment transaction 4, 6(19), 6(20) (96,317 ) 80,029 - - - - 249,628 233,340 332 233,672
Share of changes in net assets of associates and joint ventures accounted for <br>        using equity method - 314,619 - 10,952 - (10,952 ) - 314,619 - 314,619
Changes in subsidiaries’ ownership 4, 6(19) - 8,262 - - - - - 8,262 (6,928 ) 1,334
Non-Controlling Interests 6(19) - - - - - - - - 9,418 9,418
Others - (349 ) - - - - - (349 ) - (349 )
Balance as of March 31, 2026 6(19) $ 125,785,246 $ 15,812,161 $ 41,466,099 $ 207,599,300 $ 322,108 $ 17,588,700 $ (1,873,017 ) $ 406,700,597 $ 35,561 $ 406,736,158
The accompanying notes are an integral part of the consolidated financial statements.
English Translation of Consolidated Financial Statements Originally Issued in Chinese
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UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three-month periods ended March 31, 2026 and 2025
(Expressed in Thousands of New Taiwan Dollars)
For the three-month periods ended March 31,
2026 2025
Cash flows from operating activities:
Net income before tax $ 16,643,830 $ 9,346,571
Adjustments to reconcile net income before tax to net cash provided by operating activities:
Depreciation 15,275,185 13,426,861
Amortization 711,776 701,281
Expected credit impairment gains (45 ) (2,406 )
Net loss (gain) of financial assets and liabilities at fair value through profit or loss (2,126,052 ) 564,708
Interest expense 354,070 386,155
Interest income (442,235 ) (605,314 )
Dividend income (52,591 ) (3,375 )
Share-based payment 235,007 209,832
Share of loss (profit) of associates and joint ventures (2,815,136 ) 207,888
Gain on disposal of property, plant and equipment (10,771 ) (19,629 )
Loss (gain) on disposal of investments accounted for under the equity method (2,992 ) 8
Exchange loss on financial assets and liabilities 360,172 186,414
Amortization of deferred government grants (452,846 ) (345,387 )
Income and expense adjustments 11,033,542 14,707,036
Changes in operating assets and liabilities:
Financial assets and liabilities at fair value through profit or loss 55,997 19,613
Contract assets 93,366 288,227
Accounts receivable (4,070,143 ) (1,049,440 )
Other receivables (346,659 ) 133,076
Inventories (1,116,254 ) 705,658
Prepayments 837,140 471,595
Other current assets (663,272 ) (240 )
Contract fulfillment costs 406,300 (261,576 )
Contract liabilities 852,335 365,511
Accounts payable (169,527 ) 1,538,635
Other payables (1,552,707 ) (2,424,655 )
Other current liabilities 36,052 351,938
Net defined benefit liabilities (16,249 ) (380,732 )
Other noncurrent liabilities-others 2,464 5,258
Cash generated from operations 22,026,215 23,816,475
Interest received 483,169 631,109
Dividend received 61,129 130,289
Interest paid (125,073 ) (167,503 )
Income tax paid (464,105 ) (584,665 )
Net cash provided by operating activities 21,981,335 23,825,705
(continued)
English Translation of Consolidated Financial Statements Originally Issued in Chinese
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UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three-month periods ended March 31, 2026 and 2025
(Expressed in Thousands of New Taiwan Dollars)
For the three-month periods ended March 31,
2026 2025
Cash flows from investing activities:
Acquisition of financial assets at fair value through profit or loss $ (327,855 ) $ (236,992 )
Proceeds from disposal of financial assets at fair value through profit or loss 127,093 49,366
Proceeds from capital reduction of financial assets at fair value through other comprehensive <br>       income - 160,659
Acquisition of financial assets measured at amortized cost (13,401,942 ) (2,004,570 )
Proceeds from redemption of financial assets measured at amortized cost 6,301,328 2,256,050
Acquisition of investments accounted for under the equity method (643,299 ) -
Increase in prepayment for investments (240,450 ) -
Proceeds from capital reduction of investments accounted for under the equity method 78,921 -
Acquisition of property, plant and equipment (12,525,923 ) (14,152,674 )
Proceeds from disposal of property, plant and equipment 10,136 31,667
Increase in refundable deposits (59,815 ) (3,339 )
Decrease in refundable deposits 4,156 703
Acquisition of intangible assets (681,498 ) (328,987 )
Government grants related to assets acquisition 11,378 3,722,471
Increase in other noncurrent assets-others (55 ) (49 )
Decrease in other noncurrent assets-others - 38
Net cash used in investing activities (21,347,825 ) (10,505,657 )
Cash flows from financing activities:
Increase in short-term loans 2,137,287 5,960,000
Decrease in short-term loans (6,958,140 ) (7,975,000 )
Bonds issuance costs (5,310 ) -
Proceeds from long-term loans 4,930,550 1,300,000
Repayments of long-term loans (3,148,748 ) (12,302,686 )
Increase in guarantee deposits 364 653
Decrease in guarantee deposits (444,965 ) (548,651 )
Cash payments for the principal portion of the lease liability (206,420 ) (211,427 )
Change in non-controlling interests 9,418 1,168
Others (267 ) (146 )
Net cash used in financing activities (3,686,231 ) (13,776,089 )
Effect of exchange rate changes on cash and cash equivalents 1,411,260 1,809,572
Net increase (decrease) in cash and cash equivalents (1,641,461 ) 1,353,531
Cash and cash equivalents at beginning of period 110,660,052 105,000,226
Cash and cash equivalents at end of period $ 109,018,591 $ 106,353,757
The accompanying notes are an integral part of the consolidated financial statements.

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Three-Month Periods Ended March 31, 2026 and 2025

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

  • 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 2nd Road, Hsinchu Science Park, Hsinchu, Taiwan. The principal operating activities of UMC and its subsidiaries (collectively as “the Company”) are described in Notes 4(3) and 14.

  • 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 April 29, 2026.

  • NEWLY ISSUED OR REVISED STANDARDS AND INTERPRETATIONS

  • The Company applied International Financial Reporting Standards (“IFRS”), International Accounting Standards (“IAS”), 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, 2026. There are no newly adopted or revised standards and interpretations that have material impact on the Company’s financial position and performance.

  • 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:

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 Venture To be determined by IASB
IFRS 18 “Presentation and Disclosure in Financial Statements” January 1, 2027 (Note)
IFRS 19 “Disclosure Initiative - Subsidiaries without Public Accountability: Disclosures” January 1, 2027
Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21 and IAS 29) January 1, 2027

Note: The FSC issued a press release on September 25, 2025, announcing the plan for public companies to adopt IFRS 18 starting from the fiscal year 2028. In addition, entities in Taiwan with a need for early adoption may elect to early adopt IFRS 18 upon approval by the FSC.

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:

  • Amendments to IFRS 10 “Consolidated Financial Statements” (IFRS 10) and IAS 28 “Investments in Associates and Joint Ventures” (IAS 28) - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

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 ventures. IFRS 10 requires full profit or loss recognition on the loss of control of the 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.

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.

  • IFRS 18 “Presentation and Disclosure in Financial Statements” (IFRS 18)

IFRS 18 replaces IAS 1 “Presentation of Financial Statements”. The main changes in the new standard are as below:

  • Improved comparability in the statement of profit or loss (income statement)

IFRS 18 requires entities to classify all income and expenses within their statement of profit or loss into one of five categories: operating; investing; financing; income taxes; and discontinued operations. The first three categories are new, to improve the structure of the income statement, and requires all entities to provide new defined subtotals, including operating profit or loss. The improved structure and new subtotals will give investors a consistent starting point for analyzing entities’ performance and make it easier to compare entities.

  • Enhanced transparency of management-defined performance measures

IFRS 18 requires entities to disclose explanations of those entity-specific measures that are related to the income statement, referred to as management-defined performance measures.

  • Useful grouping of information in the financial statements

IFRS 18 sets out enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes. The changes are expected to provide more detailed and useful information. IFRS 18 also requires entities to provide more transparency about operating expenses, helping investors to find and understand the information they need.

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

  • SUMMARY OF MATERIAL ACCOUNTING POLICIES

  • 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.

  • Basis of Preparation

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

  • General Description of Reporting Entity

  • 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, 2025. For the principles of consolidation, please refer to Note 4(3) of the Company’s consolidated financial statements for the year ended December 31, 2025.

  • The consolidated entities are as follows:
Percentage of ownership (%)<br><br>As of
Investor Subsidiary Business nature March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
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 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
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 and FORTUNE WAVETEK MICROELECTRONICS CORPORATION (WAVETEK) Sales and manufacturing of integrated circuits 78.93 79.12 79.50
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 95.37 92.64 95.24
TERA ENERGY EVERRICH ENERGY INVESTMENT (HK) LIMITED (EVERRICH-HK) Investment holding 100.00 100.00 100.00
Percentage of ownership (%)<br><br>As of
--- --- --- --- --- ---
Investor Subsidiary Business nature March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
TERA ENERGY MU-ONE ENERGY CO., LTD. Sales of pollution control equipment 100.00 - -
TERA ENERGY MU-WELL ENERGY CO., LTD. Energy technical services 100.00 - -
TERA ENERGY MU-SUN ENERGY CO., LTD. Energy technical services 100.00 - -
EVERRICH-HK EVERRICH (JINING) NEW ENERGY TECHNOLOGY CO., LTD. (formerly EVERRICH (SHANDONG) ENERGY CO., LTD.) Solar engineering integrated design services 100.00 100.00 100.00
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
WAVETEK 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 100.00 100.00 100.00
UNITED MICROCHIP CORPORATION and HEJIAN UNITED SEMICONDUCTOR (XIAMEN) CO., LTD. Sales and manufacturing of integrated circuits 100.00 100.00 100.00
  • Other Material 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, 2025. For the summary of material accounting policies, please refer to Note 4 of the Company’s consolidated financial statements for the year ended December 31, 2025.

  • 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 three-month period ended March 31, 2026 as those applied in the Company’s consolidated financial statements for the year ended December 31, 2025. 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, 2025.

  • CONTENTS OF SIGNIFICANT ACCOUNTS

  • Cash and Cash Equivalents

As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Cash on hand and petty cash $6,708 $6,655 $6,310
Checking and savings accounts 27,156,673 25,019,390 30,588,183
Time deposits 74,147,231 77,994,948 71,249,177
Repurchase agreements collateralized by government bonds and corporate notes 7,707,979 7,639,059 4,510,087
Total $109,018,591 $110,660,052 $106,353,757
  • Financial Assets at Fair Value through Profit or Loss
As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Financial assets mandatorily measured at fair value through profit or loss
Common stocks $10,121,587 $8,823,146 $8,607,884
Preferred stocks 4,266,328 3,861,674 3,488,445
Funds 5,426,296 4,956,553 5,768,401
Convertible bonds 567,103 438,024 398,625
Forward exchange contracts 181 1,859 -
Others 121,976 72,660 66,260
Total $20,503,471 $18,153,916 $18,329,615
Current $528,114 $568,521 $555,297
Non-current 19,975,357 17,585,395 17,774,318
Total $20,503,471 $18,153,916 $18,329,615
  • Financial Assets at Fair Value through Other Comprehensive Income
As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Equity instruments
Common stocks $15,259,891 $13,571,941 $17,427,448
Preferred stocks 206,203 202,808 204,616
Total $15,466,094 $13,774,749 $17,632,064
Current $4,698,536 $4,630,441 $6,398,188
Non-current 10,767,558 9,144,308 11,233,876
Total $15,466,094 $13,774,749 $17,632,064

  • 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.

  • Dividend income recognized in profit or loss from equity instruments designated as fair value through other comprehensive income were both nil for the three-month periods ended March 31, 2026 and 2025.

  • UMC issued unsecured exchangeable bonds where the bondholders may exchange the bonds at any time on or after October 8, 2021 and prior to June 27, 2026 into NOVATEK common shares which UMC holds and accounts for as equity instruments investments measured at fair value through other comprehensive income. Please refer to Note 6(13) for the Company’s unsecured exchangeable bonds.

  • Fair value gain or loss presented in other comprehensive income from equity instruments designated as fair value through other comprehensive income were listed below:

For the three-month periods ended March 31,
2026 2025
Held at end of period
Common stocks $1,687,950 $17,427,448
Preferred stocks 3,395 204,616
Derecognized during the period
Common stocks - -
Preferred stocks - -
Total $1,691,345 $583,395
  • Financial Assets Measured at Amortized Cost, Current
As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Time deposits with original maturities over three months $20,018,535 $12,506,177 $3,561,874
  • Accounts Receivable, Net
As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Accounts receivable $34,711,781 $30,780,504 $34,397,672
Less: loss allowance (8,462) (8,345) (8,822)
Net $34,703,319 $30,772,159 $34,388,850

Aging analysis of accounts receivable:

As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Neither past due $32,564,372 $28,105,444 $31,986,126
Past due:
≤ 30 days 2,066,875 2,565,097 2,217,147
31 to 60 days 41,432 78,880 170,859
61 to 90 days 11,134 3,586 1,133
91 to 120 days 2,362 6,860 7,019
≥ 121 days 25,606 20,637 15,388
Subtotal 2,147,409 2,675,060 2,411,546
Total $34,711,781 $30,780,504 $34,397,672

Movement of loss allowance for accounts receivable:

For the three-month periods ended March 31,
2026 2025
Beginning balance $8,345 $10,996
Net recognition (reversal) for the period 117 (2,174)
Ending balance $8,462 $8,822

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 three-month periods ended March 31, 2026 and 2025, the expected credit loss rates were 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.

  • Inventories, Net
As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Raw materials $10,794,520 $10,078,373 $11,311,034
Supplies and spare parts 6,163,669 5,996,339 6,091,408
Work in process 19,374,173 18,555,155 16,825,350
Finished goods 2,313,042 2,598,516 1,197,132
Total $38,645,404 $37,228,383 $35,424,924

  • For the three-month periods ended March 31, 2026 and 2025, the Company recognized NT$40,726 million and NT$40,360 million, respectively, in operating cost, of which NT$174 million was related to reversal of write-down of inventories and NT$608 million was related to write-down of inventories.

  • None of the aforementioned inventories were pledged.

  • Investments Accounted for Under the Equity Method

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

As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
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
SILICON INTEGRATED SYSTEMS CORP. (SIS) (Note A) $3,934,121 17.99 $3,562,947 17.99 $3,249,558 17.99
FARADAY TECHNOLOGY CORP. (FARADAY) (Note B) 2,570,902 13.80 2,496,550 13.80 2,518,196 13.80
UNIMICRON TECHNOLOGY CORP. (UNIMICRON)<br><br>(Note C) 16,115,022 12.87 14,428,352 13.01 14,024,274 13.01
Unlisted companies
As of
--- --- --- ---
March 31,2026 December 31,2025 March 31,2025
Investee companies Amount Amount Amount
MTIC HOLDINGS PTE. LTD. (Note D) - - -
UNITECH CAPITAL INC. 457,799 524,403 464,007
TRIKNIGHT CAPITAL CORPORATION (TRIKNIGHT)<br><br>(Note E) 596,361 759,446 1,232,403
HSUN CHIEH CAPITAL CORP. 252,261 233,438 260,994
PURIUMFIL INC. (Note F) - - 12,435
HSUN CHIEH INVESTMENT CO., LTD. (HSUN CHIEH) (Note G) 14,653,866 12,792,773 11,117,804
YANN YUAN INVESTMENT CO., LTD. (YANN YUAN) 17,361,271 13,722,026 9,370,080
UNITED LED CORPORATION HONG KONG LIMITED 127,108 122,982 125,131
VSENSE CO., LTD. (VSENSE) (Note D and H) - - -
TRANSLINK CAPITAL PARTNERS I, L.P. (Note I) - - 24,194
Total 56,068,711 48,642,917 42,399,076

All values are in US Dollars.

  • In August 2023, the board chairman of SIS changed and became the same person as the board chairman of UMC. After considering the comprehensive conditions, including ownership interest held and representation on Board of Directors of SIS, etc., the Company determines that it has significant influence over SIS and accounts for its investment in SIS as an associate.

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

  • Beginning from June 2020, the Company accounts for its investment in UNIMICRON as an associate given the fact that UMC obtained the ability to exercise significant influence over UNIMICRON through representation on its Board of Directors. The Company participated in the capital increase of UNIMICRON in January 2026. Please refer to Note 7 for the relevant information.

  • When the Company’s share of losses of an associate equals or exceeds its interest in that associate, 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.

  • TRIKNIGHT executed a capital reduction and refunded NT$79 million and NT$232 million based on UMC’s stockholding percentage in March 2026 and June 2025, respectively.

  • In August 2025, the Board of Directors of the Company’s subsidiary, TERA ENERGY, resolved to merge with PURIUMFIL INC., with TERA ENERGY as the surviving company. The effective date of merger is October 3, 2025.

  • HSUN CHIEH executed a capital reduction and refunded NT$343 million based on UMC’s stockholding percentage in March 2025. As of March 31, 2025, NT$343 million of the abovementioned refunds have not yet been received and were accounted for as other receivables.

  • VSENSE has ceased operations. The Company’s subsidiary no longer participates in the financial and operating policy decisions of the investee, therefore losing significant influence over it. Accordingly, the investment was discontinued from being accounted for under the equity method and was reclassified as a financial asset at fair value through profit or loss.

  • The Company follows international accounting practices in equity accounting for limited partnerships and uses the equity method to account for these investees. The investee was dissolved in April 2025.

The carrying amount of investments accounted for using the equity method for which there are published price quotations amounted to NT$22,620 million, NT$20,488 million and NT$19,792 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively. The fair value of these investments were NT$100,227 million, NT$54,202 million and NT$30,773 million as of March 31, 2026, December 31, 2025 and March 31, 2025, 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$2,287 million and NT$(258) million for the three-month periods ended March 31, 2026 and 2025, respectively. Share of other comprehensive income (loss) of these associates and joint ventures amounted to NT$229 million and NT$71 million for the three-month periods ended March 31, 2026 and 2025, respectively. The balances of investments accounted for under the equity method were NT$31,365 million, NT$27,981 million and NT$26,838 million as of March 31, 2026, December 31, 2025 and March 31, 2025, 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 has significant influence over the aforementioned associates.

None of the aforementioned associates were pledged.

  • Financial information of associates:

There is no individually significant associate for the Company. When an associate 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 periods ended March 31, 2026 and 2025 were NT$13 million and NT$9 million, respectively, which were not included in the following table.

The aggregate amount of the Company’s share of all its individually immaterial associates that are accounted for using the equity method were as follows:

For the three-month periods ended March 31,
2026 2025
Income (loss) from continuing operations $2,815,136 $(207,888)
Other comprehensive income (loss) 3,718,382 (463,466)
Total comprehensive income (loss) $6,533,518 $(671,354)
  • Details of UMC’s stock (thousand shares) held by the Company’s associates are as follows:
As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
HSUN CHIEH 441,371 441,371 441,371
SIS 266,580 266,580 266,580
YANN YUAN 192,963 192,963 192,963
UNIMICRON 19 27 47
Total 900,933 900,941 900,961

  • Property, Plant and Equipment

  • For the three-month period ended March 31, 2026

Assets Used by the Company:

Cost:

Land Buildings Machinery<br><br>and equipment Transportation equipment Furniture<br><br>and fixtures Leasehold improvement Construction in progress and equipment awaiting inspection Total
As of January 1, 2026 $1,385,971 $67,407,336 $1,179,267,510 $81,156 $10,952,535 $68,090 $26,966,564 $1,286,129,162
Additions - 3,807 - - - - 7,609,895 7,613,702
Disposals - (13,064) (729,085) - (14,531) - (5,353) (762,033)
Transfers and reclassifications - 272,945 9,194,781 2,988 108,800 - (8,813,764) 765,750
Exchange effect (528) 843,838 8,755,696 676 48,394 877 454,946 10,103,899
As of March 31, 2026 $1,385,443 $68,514,862 $1,196,488,902 $84,820 $11,095,198 $68,967 $26,212,288 $1,303,850,480

Accumulated Depreciation and Impairment:

Land Buildings Machinery<br><br>and equipment Transportation equipment Furniture<br><br>and fixtures Leasehold improvement Construction in progress and equipment awaiting inspection Total
As of January 1, 2026 $- $27,811,816 $980,328,057 $64,895 $8,164,849 $67,136 $- $1,016,436,753
Depreciation - 602,178 14,287,717 1,187 189,480 508 - 15,081,070
Disposals - (12,892) (718,222) - (14,529) - - (745,643)
Transfers and reclassifications - - (28) - (575) - - (603)
Exchange effect - 178,507 6,662,956 548 39,315 867 - 6,882,193
As of March 31, 2026 $- $28,579,609 $1,000,560,480 $66,630 $8,378,540 $68,511 $- $1,037,653,770
Net carrying amount:
As of March 31, 2026 $1,385,443 $39,935,253 $195,928,422 $18,190 $2,716,658 $456 $26,212,288 $266,196,710

Assets Subject to Operating Leases:

Cost:

Land Buildings Machinery<br><br>and equipment Furniture<br><br>and fixtures Total
As of January 1, 2026 $532,934 $2,473,046 $6,345 $1,435,789 $4,448,114
Transfers and reclassifications - - - 9,982 9,982
Exchange effect (81) 8,021 - 6,872 14,812
As of March 31, 2026 $532,853 $2,481,067 $6,345 $1,452,643 $4,472,908

Accumulated Depreciation and Impairment:

Land Buildings Machinery<br><br>and equipment Furniture<br><br>and fixtures Total
As of January 1, 2026 $- $1,379,648 $6,345 $1,359,234 $2,745,227
Depreciation - 10,058 - 5,069 15,127
Transfers and reclassifications - - - 603 603
Exchange effect - 4,486 - 6,247 10,733
As of March 31, 2026 $- $1,394,192 $6,345 $1,371,153 $2,771,690
Net carrying amount:
As of March 31, 2026 $532,853 $1,086,875 $- $81,490 $1,701,218
  • For the three-month period ended March 31, 2025

Assets Used by the Company:

Cost:

Land Buildings Machinery<br><br>and equipment Transportation equipment Furniture<br><br>and fixtures Leasehold improvement Construction in progress and equipment awaiting inspection Total
As of January 1, 2025 $1,410,796 $65,588,012 $1,126,546,727 $78,020 $9,533,232 $68,407 $44,767,602 $1,247,992,796
Additions - 129 - - - - 10,568,070 10,568,199
Disposals - - (665,110) (360) (493) - - (665,963)
Transfers and reclassifications - 182,716 16,869,834 828 171,845 2,121 (14,259,213) 2,968,131
Exchange effect 33,275 729,970 6,308,225 545 39,704 1,205 527,474 7,640,398
As of March 31, 2025 $1,444,071 $66,500,827 $1,149,059,676 $79,033 $9,744,288 $71,733 $41,603,933 $1,268,503,561

Accumulated Depreciation and Impairment:

Land Buildings Machinery<br><br>and equipment Transportation equipment Furniture<br><br>and fixtures Leasehold improvement Construction in progress and equipment awaiting inspection Total
As of January 1, 2025 $- $25,675,000 $937,309,791 $61,733 $7,534,386 $67,464 $- $970,648,374
Depreciation - 564,264 12,525,285 1,050 141,934 534 - 13,233,067
Disposals - - (663,943) (360) (493) - - (664,796)
Exchange effect - 159,110 4,761,526 407 30,314 1,146 - 4,952,503
As of March 31, 2025 $- $26,398,374 $953,932,659 $62,830 $7,706,141 $69,144 $- $988,169,148
Net carrying amount:
As of March 31, 2025 $1,444,071 $40,102,453 $195,127,017 $16,203 $2,038,147 $2,589 $41,603,933 $280,334,413

Assets Subject to Operating Leases:

Cost:

Land Buildings Machinery<br><br>and equipment Furniture<br><br>and fixtures Total
As of January 1, 2025 $536,721 $2,461,012 $6,345 $1,409,464 $4,413,542
Disposals - - - (512) (512)
Transfers and reclassifications - 6,544 - 1,430 7,974
Exchange effect 5,077 5,489 - 4,366 14,932
As of March 31, 2025 $541,798 $26,398,374 $6,345 $1,414,748 $4,435,936

Accumulated Depreciation and Impairment:

Land Buildings Machinery<br><br>and equipment Furniture<br><br>and fixtures Total
As of January 1, 2025 $- $1,347,206 $6,345 $1,345,376 $2,698,927
Depreciation - 9,910 - 3,667 13,577
Disposals - - - (512) (512)
Exchange effect - 2,831 - 4,199 7,030
As of March 31, 2025 $- $1,359,947 $6,345 $1,352,730 $2,719,022
Net carrying amount:
As of March 31, 2025 $541,798 $1,113,098 $- $62,018 $1,716,914
  • Details of interest expense capitalized were as follows:
For the three-month periods ended March 31,
2026 2025
Interest expense capitalized $- $3,480
Interest rates applied - 1.72% - 1.81%

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

  • 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 2 to 31 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.

  • The Company as a lessee

  • Right-of-use Assets

As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Land (including land use right) $5,485,213 $5,416,282 $5,672,750
Buildings 57,163 73,432 150,096
Machinery and equipment 1,926,818 1,952,668 2,095,592
Transportation equipment 11,877 13,918 10,073
Other equipment 18,766 19,734 19,500
Net $7,499,837 $7,476,034 $7,948,011
For the three-month periods ended March 31,
--- --- ---
2026 2025
Depreciation
Land (including land use right) $96,562 $94,770
Buildings 16,696 20,747
Machinery and equipment 62,547 61,226
Transportation equipment 2,136 2,594
Other equipment 1,047 880
Total $178,988 $180,217

  • For the three-month periods ended March 31, 2026 and 2025, the Company’s addition to right-of-use assets amounted to NT$79 million and NT$15 million, respectively.

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

  • Lease Liabilities

As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Current $628,110 $624,825 $639,835
Non-current 5,354,349 5,376,021 5,699,701
Total $5,982,459 $6,000,846 $6,339,536

Please refer to Note 6(24) for the interest expenses on the lease liabilities.

  • 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.

  • Intangible Assets

For the three-month period ended March 31, 2026

Cost:

Goodwill Software Patents and technology license fees Others Total
As of January 1, 2026 $34,577 $5,631,275 $1,845,480 $3,324,623 $10,835,955
Additions - 303,053 - 71,256 374,309
Write-off - (87,333) - (14,922) (102,255)
Exchange effect - 679 336,608 141 337,428
As of March 31, 2026 $34,577 $5,847,674 $2,182,088 $3,381,098 $11,445,437

Accumulated Amortization and Impairment:

Goodwill Software Patents and technology license fees Others Total
As of January 1, 2026 $7,398 $2,717,650 $1,185,778 $2,182,253 $6,093,079
Amortization - 437,627 53,266 200,717 691,610
Write-off - (87,333) - (14,922) (102,255)
Exchange effect - 1,520 301,732 (68) 303,184
As of March 31, 2026 $7,398 $3,069,464 $1,540,776 $2,367,980 $6,985,618
Net carrying amount:
As of March 31, 2026 $27,179 $2,778,210 $641,312 $1,013,118 $4,459,819

For the three-month period ended March 31, 2025

Cost:

Goodwill Software Patents and technology license fees Others Total
As of January 1, 2025 $15,012 $5,476,499 $2,042,479 $2,951,272 $10,485,262
Additions - 186,169 7,950 176,976 371,095
Write-off - (464,360) - (202,803) (667,163)
Reclassifications - (6,171) - - (6,171)
Exchange effect - 79,689 243,238 8,511 331,438
As of March 31, 2025 $15,012 $5,271,826 $2,293,667 $2,933,956 $10,514,461

Accumulated Amortization and Impairment:

Goodwill Software Patents and technology license fees Others Total
As of January 1, 2025 $7,398 $3,231,115 $1,162,797 $1,929,637 $6,330,947
Amortization - 420,214 63,397 198,042 681,653
Write-off - (464,360) - (202,803) (667,163)
Exchange effect - 58,106 192,841 8,330 259,277
As of March 31, 2025 $7,398 $3,245,075 $1,419,035 $1,933,206 $6,604,714
Net carrying amount:
As of March 31, 2025 $7,614 $2,026,751 $874,632 $1,000,750 $3,909,747

The amortization amounts of intangible assets were as follows:

For the three-month periods ended March 31,
2026 2025
Operating costs $294,431 $300,565
Operating expenses $397,179 $381,088
  • Short-Term Loans
As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Unsecured bank loans $3,589,671 $8,408,772 $6,500,000
As of
--- --- --- ---
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Interest rates applied 1.79% - 5.30% 1.78% - 4.75% 1.88% - 2.99%
  • Financial Liabilities at Fair Value through Profit or Loss, Current
As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Embedded derivatives in exchangeable bonds $27,326 $54,651 $1,093,616
Forward exchange contracts 12,373 2,512 5,277
Total $39,699 $57,163 $1,098,893
  • Bonds Payable
As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Unsecured domestic bonds payable $44,600,000 $44,600,000 $24,600,000
Unsecured exchangeable bonds payable 5,757,373 5,757,373 5,757,373
Less: Discounts on bonds payable (76,849) (129,068) (256,844)
Total 50,280,524 50,228,305 30,100,529
Less: Current or exchangeable portion due within one year (16,207,095) (16,157,161) (5,514,218)
Net $34,073,429 $34,071,144 $24,586,311
  • UMC issued domestic unsecured corporate bonds. The terms and conditions of the bonds are as follows:
Term Issuance date Issued amount Coupon rate Repayment
Five-year In late April 2021 NT$5,500 million 0.57% Interest will be paid annually and the principal will be repayable upon maturity, which occurs five years after the issuance date.
Seven-year In late April 2021 NT$2,000 million 0.63% Interest will be paid annually and the principal will be repayable upon maturity, which occurs seven years after the issuance date.
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 upon maturity, which occurs ten years after the issuance date.
Five-year In mid-December 2021 NT$5,000 million 0.63% Interest will be paid annually and the principal will be repayable upon maturity, which occurs five years after the issuance date.
Five-year (Green bond) In mid-September 2023 NT$10,000 million 1.62% Interest will be paid annually and the principal will be repayable upon maturity, which occurs five years after the issuance date.
Five-year (Green bond) In late June 2025 NT$2,000 million 1.94% Interest will be paid annually and the principal will be repayable upon maturity, which occurs five years after the issuance date.
Five-year In late June 2025 NT$3,200 million 1.99% Interest will be paid annually and the principal will be repayable upon maturity, which occurs five years after the issuance date.
Three-year In late August 2025 NT$5,000 million 1.80% Interest will be paid annually and the principal will be repayable upon maturity, which occurs three years after the issuance date.
Three-year In late October 2025 NT$5,000 million 1.70% Interest will be paid annually and the principal will be repayable upon maturity, which occurs three years after the issuance date.
Three-year In early December 2025 NT$2,300 million 1.55% Interest will be paid annually and the principal will be repayable upon maturity, which occurs three years after the issuance date.
Five-year In early December 2025 NT$2,500 million 1.60% Interest will be paid annually and the principal will be repayable upon maturity, which occurs five years after the issuance date.

  • On July 7, 2021, UMC issued SGX-ST listed currency linked zero coupon exchangeable bonds. In accordance with IFRS 9, the value of the exchange right, call option and put option (together referred to as Option) of the exchangeable bonds was separated from the host and accounted for as “financial liabilities at fair value through profit or loss, current”. The effective rate of the host bond was 3.49%. The terms and conditions of the bonds are as follows:

  • Issue Amount: USD 400 million

  • Period: July 7, 2021 - July 7, 2026 (Maturity Date)

  • Redemption:

  • UMC may, at its option, redeem in whole or in part at the principal amount of the bonds with an interest calculated at the rate of -0.625% per annum (the Early Redemption Amount) at any time after the third anniversary from the issue date and prior to the Maturity Date, if the closing price of the common shares of NOVATEK MICROELECTRONICS CORPORATION (NOVATEK) on the TWSE, converted into U.S. dollars at the prevailing exchange rate, for 20 out of 30 consecutive trading days prior to the publication of the redemption notice is at least 130% of the quotient of the Early Redemption Amount multiplied by the then exchange price (converted into U.S. dollars at the Fixed Exchange Rate), divided by the principal amount of the bonds. The Early Redemption Amount will be converted into NTD based on the Fixed Exchange Rate (NTD 27.902=USD 1.00), and this fixed NTD amount will then be converted using the prevailing exchange rate at the time of redemption for payment in USD.

  • UMC may redeem the outstanding bonds in whole, but not in part, at the Early Redemption Amount, in the event that over 90% of the bonds have been previously redeemed, repurchased and cancelled or exchanged.

  • In the event of any change in ROC taxation resulting in increase of tax obligation or the necessity to pay additional interest expense or increase of additional costs to UMC, UMC may redeem the outstanding bonds in whole, but not in part, at the Early Redemption Amount. Bondholders may elect not to have their bonds redeemed but with no entitlement to any additional amounts or reimbursement of additional taxes.

  • All or any portion of the bonds will be redeemable at put price at the option of bondholders on July 7, 2024 at 98.14% of the principal amount.

  • In the event that the common shares of NOVATEK cease to be listed or are suspended from trading for a period equal to or exceeding 30 consecutive trading days on the TWSE, each bondholder shall have the right to require UMC to redeem the bonds, in whole but not in part, at the Early Redemption Amount.

  • Upon the occurrence of a change of control (as defined in the indenture) of UMC, each bondholder shall have the right to require UMC to redeem the bonds, in whole but not in part, at the Early Redemption Amount.

  • Terms of Exchange:

  • Underlying Securities: Common Shares of NOVATEK

  • Exchange Period: The bonds are exchangeable at any time on or after October 8, 2021 and prior to June 27, 2026, into NOVATEK common shares.

If for any reason UMC does not have sufficient NOVATEK common shares to deliver upon the exchange of any bond, then, UMC will pay to the exchanging bondholder an amount in U.S. dollars equal to the product of the volume-weighted average closing price per NOVATEK common share on the TWSE for five consecutive trading days starting from and including the applicable exercise date (as defined in the indenture) (or such fewer number of trading days as are available within ten days starting from and including the applicable exercise date) each converted into USD at the prevailing rate on the day preceding the applicable trading day and the number of NOVATEK common shares that UMC is unable to deliver. 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.

  • Exchange Price and Adjustment: The exchange price was originally NT$731.25 per NOVATEK common share. The exchange price will be subject to adjustments upon the occurrence of certain events set out in the indenture. The exchange price was NT$479.8 per NOVATEK common share on March 31, 2026.

  • Redemption on the Maturity Date:

The bonds will be redeemed with 96.92% principal amount on the maturity date unless:

  • UMC shall have redeemed the bonds at the option of UMC, or the bonds shall have been redeemed at option of the bondholder,
  • The bondholders shall have exercised the exchange right before maturity, or
  • The bonds shall have been redeemed or repurchased by UMC and cancelled.

On July 7, 2024, there were no bondholders that required UMC to redeem the outstanding exchangeable bonds.

As of March 31, 2026, December 31, 2025 and March 31, 2025, UMC has cumulatively repurchased and cancelled the outstanding principal amount of exchangeable bonds totaling USD 187.1 million as of each date, with derecognition of the related derivative financial liabilities.

  • Long-Term Loans

  • Details of long-term loans as of March 31, 2026, December 31, 2025 and March 31, 2025 were as follows:

As of
Lenders March 31,<br><br>2026 December 31,<br><br>2025 March 31,2025
NTD secured bank loans $342,158 $382,290 466,161
RMB secured bank loans - - 7,477,936
NTD unsecured bank loans 8,213,433 8,291,500 5,752,600
USD unsecured bank loans - - 1,261,804
RMB unsecured bank loans 2,327,500 2,258,000 -
NTD unsecured revolving bank loans 5,300,000 3,400,000 10,700,000
Subtotal 16,183,091 14,331,790 25,658,501
Less: Current portion (3,091,492) (3,030,880) (5,617,402)
Total $13,091,599 $11,300,910 20,041,099

All values are in US Dollars.

As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Interest rates applied 1.53% - 2.98% 1.53% - 2.98% 1.53% - 5.46%

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

  • Post-Employment Benefits

  • Defined contribution plan

The employee pension plan under the Labor Pension Act of 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$555 million and NT$507 million were contributed by the Company for the three-month periods ended March 31, 2026 and 2025, respectively.

  • Defined benefit plan

The employee pension plan mandated by the Labor Standards Act of 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. Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year. For the three-month periods ended March 31, 2026 and 2025, total pension expenses of NT$4 million and NT$7 million, respectively, were recognized by the Company.

  • Deferred Government Grants
As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Beginning balance $7,266,505 $3,961,028 $3,961,028
Arising during the period 11,378 5,097,841 3,722,471
Recorded in profit or loss:
Other operating income (452,846) (1,520,370) (345,387)
Exchange effect 128,804 (271,994) 146,869
Ending balance $6,953,841 $7,266,505 $7,484,981
Current (classified under other current liabilities) $1,767,464 $1,781,746 $1,623,949
Non-current (classified under other noncurrent liabilities-others) 5,186,377 5,484,759 5,861,032
Total $6,953,841 $7,266,505 $7,484,981

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

  • Refund Liabilities (classified under other current liabilities)
As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Refund liabilities $4,442,729 $4,309,253 $4,351,532
  • Provisions
As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Decommissioning Liabilities (classified under other noncurrent liabilities-others) $924,588 $898,273 $708,533
Onerous Contracts (classified under other current liabilities) 226,475 160,114 212,360
Others (classified under other current liabilities) 80,808 69,202 81,417
Total $1,231,871 $1,127,589 $1,002,310
Decommissioning Liabilities Onerous Contracts Others
--- --- --- ---
Balance as of January 1, 2026 $898,273 $160,114 $69,202
Arising during the period 3,807 126,283 17,012
Unused provision reversed - (62,250) (5,581)
Discount rate adjustment and unwinding of discount from the passage of time 5,278 - -
Exchange effect 17,230 2,328 175
Balance as of March 31, 2026 $924,588 $226,475 $80,808

Under certain applicable agreement, the Company is obligated to dismantling and removing the items of property, plant and equipment and restoring the site on which they are located. Accordingly, the Company recognized the liability pursuant to the present value of the estimated decommissioning and restoration cost.

When the Company expects that the unavoidable costs of fulfilling the contractual obligations exceed the expected economic benefits from the contracts, the present obligation under the onerous contract are recognized and measured as provisions.

  • Equity

  • Capital stock:

  • UMC had 26,000 million common shares authorized to be issued as of March 31, 2026, December 31, 2025 and March 31, 2025, of which 12,579 million shares, 12,588 million shares, and 12,558 million shares were issued as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively, each at a par value of NT$10.

  • UMC had 150 million, 117 million and 87 million ADSs, which were traded on the NYSE as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively. The total number of common shares of UMC represented by all issued ADSs were 749 million shares, 586 million and 433 million shares as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively. One ADS represents five common shares.

  • On December 5, 2025, UMC issued restricted stocks for its employees in a total of 33 million shares with a par value of NT$10 each. The aforementioned issuance of new shares was approved by the competent authority and the registration was completed. Please refer to Note 6(20) for the information of restricted stocks.

  • In February 2026, October 2025, July 2025, April 2025 and February 2025, UMC has recalled and cancelled 10 million shares, 1 million shares, 0.18 million shares, 2 million shares and 2 million shares, respectively of unvested restricted stocks issued for employees according to the issuance plan. The aforementioned reduction of capital was approved by the competent authority and the registration was completed.

  • 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:

  • Payment of taxes.
  • Making up loss for preceding years.
  • Setting aside 10% for legal reserve, except for when accumulated legal reserve has reached UMC’s paid-in capital.
  • Appropriating or reversing special reserve by government officials or other regulations.
  • The remaining, 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%.

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 offsetting accumulated deficits or earnings distribution.

The appropriation of earnings for 2024 was approved by the shareholders’ meeting held on May 28, 2025, while the appropriation of earnings for 2025 was proposed by the Board of Directors’ meeting on February 25, 2026. The details of appropriation were as follows:

Appropriation of earnings<br><br>(in thousand NT dollars)
2025 2024 2024
Legal reserve $4,182,207 4,738,237
Cash dividends 32,704,164 35,787,598 $2.85

All values are in US Dollars.

The aforementioned 2024 appropriation approved by shareholders’ meeting was consistent with the resolutions of the Board of Directors’ meeting held on February 26, 2025.

The cash dividend per share for 2024 was adjusted to NT$2.85016443 per share. The adjustment was due to the decrease of outstanding common shares from cancellation of the restricted stock in April 2025.

The appropriation of 2025 unappropriated retained earnings has not yet been approved by the shareholders’ meeting as of the reporting date. Information relevant to the Board of Directors’ meeting resolutions and shareholders’ meeting approval can be obtained from the “Market Observation Post System” on the website of the TWSE.

Please refer to Note 6(22) for information on the employees and directors’ compensation.

  • Non-controlling interests:
For the three-month periods ended March 31,
2026 2025
Balance as of January 1 $87,175 $256,613
Attributable to non-controlling interests:
Net income (loss) (54,490) (33,502)
Other comprehensive income (loss) 54 29
Share-based payment transactions 332 457
Changes in subsidiaries’ ownership (6,928) (1,032)
Others 9,418 1,168
Ending balance $35,561 $223,733

  • Share-Based Payment

  • Restricted stock plan for employees

The equity-settled share-based payment of restricted stock plans for employees in each year are as follows:

2024 Plan 2022 Plan 2020 Plan
1st tranche 2nd tranche 1st tranche 2nd tranche 1st tranche 2nd tranche
Resolution date of UMC’s shareholders meeting May 30, 2024 May 27, 2022 June 10, 2020
Maximum shares to be issued<br><br>(in thousands) 66,000 50,000 233,200
Eligible employees Qualified employees<br><br>of the Company Qualified employees<br><br>of the Company Qualified employees<br><br>of UMC
Issuance of shares (in thousands) 32,956 32,878 23,060 26,728 200,030 1,268
Issuance date December 5, 2024 December 5, 2025 December 5, 2022 December 5, 2023 September 1, 2020 June 9, 2021
Weighted-average fair value on the grant date<br><br>(NT$/ per share) $39.27 $41.70 $44.40 $48.90 $21.80 $53.00

The aforementioned restricted stock plans for employees are issued gratuitously and have a duration of 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 UMC are gradually eligible to the vested restricted stocks at certain percentage and time frame. For those employees who fail to fulfill the vesting conditions, UMC will recall and cancel their stocks without consideration. Before any employee who has been granted restricted stock award shares fulfills the vesting conditions, the rights of the restricted stocks to attendance, proposal, statement, voting and election at the shareholders’ meeting shall be exercised by an entrusted institution according to a custodial agreement. Other rights of restricted stocks including but not limited to, the right to distribution of cash dividends, stock dividends, legal reserves and capital reserves, and the preemptive right for new shares of capital increase by cash, shall be the same as those of the outstanding common shares of UMC, but are restricted from selling, pledging, setting guarantee, transferring, granting, or disposing of the restricted stocks in any other ways. Related information can be obtained from the “Market Observation Post System” on the website of the TWSE.

The 2024 restricted stock plan for employees includes market conditions. The compensation cost for these market conditions was measured at fair value initially by using Monte Carlo Simulation on the grant date. The assumptions used are as follows:

2024 Plan
1st tranche 2nd tranche
Share price of measurement date (NT$/ per share) $44.60 $47.20
Expected volatility 23.76% - 34.32% 25.11% - 28.65%
Expected life 2 - 4 years 2 - 4 years
Risk-free interest rate 1.40% - 1.46% 1.14% - 1.23%

For the aforementioned plans, 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. The restricted stock plan, which was implemented in 2020, expired in June 2025. For the three-month periods ended March 31, 2026 and 2025, the compensation costs of NT$233 million and NT$207 million, respectively, were recognized in expenses by the Company.

  • Stock appreciation right plan for employees

In June 2021, the Company’s subsidiaries executed a compensation plan to grant 1 million units of cash-settled stock appreciation right to qualified employees of the Company’s subsidiaries without consideration. 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’s subsidiaries 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’s subsidiaries 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 plan, which was implemented in June 2021, expired in June 2025.

For the three-month periods ended March 31 2025, the compensation costs of NT$0.4 million was recognized in expenses by the Company’s subsidiaries. The liabilities for stock appreciation right recognized which were classified under other payables amounted to NT$9 million as of March 31, 2025. The intrinsic value for the liabilities of vested rights was nil.

  • Operating Revenues

  • Disaggregation of revenue

  • By product

For the three-month periods ended March 31,
2026 2025
Wafer $58,217,710 $55,594,465
Others 2,820,192 2,264,492
Total $61,037,902 $57,858,957
  • By geography
For the three-month periods ended March 31,
2026 2025
Taiwan $24,107,710 $24,336,944
China (includes Hong Kong) 10,833,950 8,519,967
Japan 2,851,313 2,629,800
Korea 4,832,122 5,342,047
USA 12,984,325 12,854,982
Europe 5,412,681 4,172,542
Others 15,801 2,675
Total $61,037,902 $57,858,957

The geographic breakdown of the Company's operating revenues is based on the location where the Company's customers are headquartered.

  • By the timing of revenue recognition
For the three-month periods ended March 31,
2026 2025
At a point in time $59,989,632 $57,358,302
Over time 1,048,270 500,655
Total $61,037,902 $57,858,957

  • Contract balances

  • Contract assets, current

As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025 December 31,<br><br>2024
Sales of goods and services $1,028,352 $1,107,419 $767,168 $1,043,680
Less: Loss allowance (410,177) (402,021) (423,360) (417,967)
Net $618,175 $705,398 $343,808 $625,713

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 due to litigation.

  • Contract liabilities
As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025 December 31,<br><br>2024
Sales of goods and services $5,284,362 $4,368,164 $3,073,185 $2,660,181
Current $3,488,932 $2,580,789 $2,607,965 $2,200,561
Non-current 1,795,430 1,787,375 465,220 459,620
Total $5,284,362 $4,368,164 $3,073,185 $2,660,181

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$1,463 million and NT$1,212 million, respectively, in revenues from the contract liabilities balance at the beginning of the period as performance obligations were satisfied for the three-month periods ended March 31, 2026 and 2025.

  • The Company’s transaction price allocated to unsatisfied performance obligations amounted to NT$334 million and NT$369 million as of March 31, 2026 and 2025, 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. The estimate of the transaction price does not include any estimated amounts of variable consideration that are constrained.

  • Asset recognized from costs to fulfill a contract with customer

As of March 31, 2026, December 31, 2025 and March 31, 2025, the Company recognized costs to fulfill engineering service contracts eligible for capitalization as other current assets and other noncurrent assets-others which amounted to NT$796 million, NT$1,186 million and NT$853 million, respectively. Subsequently, the Company will expense from costs to fulfill a contract to operating costs when the related obligations are satisfied.

  • Operating Costs and Expenses

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

For the three-month periods ended March 31,
2026 2025
Operating costs Operating expenses Total Operating costs Operating expenses Total
Employee benefit expenses
Salaries $6,465,332 $3,006,600 $9,471,932 $5,838,546 $2,463,915 $8,302,461
Labor and health insurance 330,644 140,553 471,197 331,489 125,016 456,505
Pension 422,461 136,999 559,460 387,528 126,895 514,423
Other employee benefit expenses 90,204 64,277 154,481 74,267 28,134 102,401
Depreciation 14,386,286 857,980 15,244,266 12,739,348 654,760 13,394,108
Amortization 311,060 400,716 711,776 315,979 385,302 701,281

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; no less than 30% of the aforementioned profit as employees’ compensation should be allocated to entry-level employees. 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 recognized the employees and directors’ compensation in the profit or loss with corresponding other payables during the periods when earned for the three-month periods ended March 31, 2026 and 2025. 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 2024 were reported to the shareholders’ meeting on May 28, 2025, while the distributions of employees and directors’ compensation for 2025 were approved through the Board of Directors’ meeting on February 25, 2026. The details of distribution were as follows:

2025 2024
Employees’ compensation – Cash $3,438,287 $4,509,603
Directors’ compensation 45,000 45,000

The aforementioned employees and directors’ compensation for 2025 approved during the Board of Directors’ meeting were consistent with amounts recognized by the Company.

The aforementioned employees and directors’ compensation for 2024 reported during the shareholders’ meeting was consistent with the resolutions of the Board of Directors’ meeting held on February 26, 2025.

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

  • Net Other Operating Income and Expenses
For the three-month periods ended March 31,
2026 2025
Government grants $478,702 $454,541
Rental income from property, plant and equipment 46,497 47,092
Gain on disposal of property, plant and equipment 10,771 19,629
Others 20,591 (59,042)
Total $556,561 $462,220

  • Non-Operating Income and Expenses

  • Other gains and losses

For the three-month periods ended March 31,
2026 2025
Gain (loss) on valuation of financial assets and liabilities at fair value through profit or loss $2,126,052 $(564,708)
Others (11,790) (14)
Total $2,114,262 $(564,722)
  • Finance costs
For the three-month periods ended March 31,
2026 2025
Interest expenses
Bonds payable $203,433 $110,522
Bank loans 97,541 220,194
Lease liabilities 47,744 50,631
Others 5,352 4,808
Financial expenses 10,291 12,818
Total $364,361 $398,973
  • Components of Other Comprehensive Income (Loss)
For the three-month period ended March 31, 2026
Arising during the period Reclassification adjustments during the period Other comprehensive income (loss),<br><br>before tax Income tax effect Other comprehensive income (loss),<br><br>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 $1,691,345 $- $1,691,345 $(138,739) $1,552,606
Share of other comprehensive income (loss) of associates and joint ventures which will not be reclassified subsequently to profit or loss 3,603,309 - 3,603,309 - 3,603,309
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations 5,246,645 - 5,246,645 (320,225) 4,926,420
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss 128,353 (2,992) 125,361 (2,656) 122,705
Total other comprehensive income (loss) $10,669,652 $(2,992) $10,666,660 $(461,620) $10,205,040
For the three-month period ended March 31, 2025
--- --- --- --- --- ---
Arising during the period Reclassification adjustments during the period Other comprehensive income (loss),<br><br>before tax Income tax effect Other comprehensive income (loss),<br><br>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 $583,395 $- $583,395 $(2,453) $580,942
Share of other comprehensive income (loss) of associates and joint ventures which will not be reclassified subsequently to profit or loss (558,224) - (558,224) - (558,224)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations 4,696,653 - 4,696,653 (332,200) 4,364,453
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss 103,728 8 103,736 (1,794) 101,942
Total other comprehensive income (loss) $4,825,552 $8 $4,825,560 $(336,447) $4,489,113

  • Income Tax

  • The major components of income tax for the three-month periods ended March 31, 2026 and 2025 were as follows:

  • Income tax expense (benefit) recorded in profit or loss

For the three-month periods ended March 31,
2026 2025
Current income tax expense (benefit):
Current income tax charge $1,914,995 $1,374,314
Adjustments in respect of current income tax of prior periods 1,899 7,722
Deferred income tax expense (benefit):
Deferred income tax related to origination and reversal of temporary differences 236,914 233,039
Deferred income tax related to recognition and derecognition of tax losses and unused tax credits 338,855 3,510
Deferred income tax related to changes in tax rates (1,946,754) -
Adjustment of prior year’s deferred income tax (5,054) (681)
Deferred income tax arising from write-down or reversal of write-down of deferred tax assets (14,009) (14,572)
Income tax expense recorded in profit or loss $526,846 $1,603,332

  • Deferred income tax related to components of other comprehensive income (loss)

  • Items that will not be reclassified subsequently to profit or loss:

For the three-month periods ended March 31,
2026 2025
Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income $(138,739) $(2,453)
  • Items that may be reclassified subsequently to profit or loss:
For the three-month periods ended March 31,
2026 2025
Exchange differences on translation of foreign operations $(320,225) $(332,200)
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss (2,656) (1,794)
Income tax related to items that may be reclassified subsequently to profit or loss $(322,881) $(333,994)

  • The Company is subject to taxation in Taiwan and other foreign jurisdictions. As of March 31, 2026, income tax returns of UMC and its subsidiaries in Taiwan have been examined by the tax authorities through 2023, while in other foreign jurisdictions, relevant tax authorities have completed the examination through 2014.

  • UMC’s branch in Singapore obtained tax incentives granted by the Singapore government in 2025. The incentive period will end in July 2035.

  • Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions and was gradually coming into effect or implemented. There was no material impact on current income tax expense of the Company for the three-month periods ended March 31, 2026 and 2025.

  • The Ministry of Finance of the Republic of China announced that the renewed “Agreement between the Taipei Representative Office in Singapore and the Singapore Trade Office in Taipei for the Elimination of Double Taxation with Respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance” (the “Renewed Agreement”) entered into force on February 13, 2026 and will become effective on January 1, 2027. Pursuant to the transitional provisions of the Renewed Agreement, the tax-sparing clause provided as a preferential mechanism under the original agreement will cease to apply after three taxable years from the effective date of the Renewed Agreement. Consequently, the phase-out of such preferential tax treatments is expected to increase the Company’s effective income tax rate in future periods. Upon the substantive enactment of the Renewed Agreement in the current period, the Company recognized an increase in deferred tax assets of NT$1,947 million, reflecting higher tax credits expected to be available in future periods as compared to those prior to the enactment of the Renewed Agreement.

  • Earnings Per Share

a. Earnings per share-basic

For the three-month periods ended March 31,
2026 2025
Net income attributable to the parent company $16,171,474 $7,776,741
Weighted-average number of ordinary shares for basic earnings per share (thousand shares) 12,491,206 12,484,781
Earnings per share-basic (NTD) $1.29 $0.62

b. Earnings per share-diluted

For the three-month periods ended March 31,
2026 2025
Net income attributable to the parent company $16,171,474 $7,776,741
Weighted-average number of ordinary shares for basic earnings per share (thousand shares) 12,491,206 12,484,781
Effect of dilution
Restricted stocks for employees 48,028 19,866
Employees’ compensation 44,241 74,560
Weighted-average number of ordinary shares after dilution (thousand shares) 12,583,475 12,579,207
Earnings per share-diluted (NTD) $1.29 $0.62
  • Reconciliation of Liabilities Arising from Financing Activities

For the three-month period ended March 31, 2026:

Non-cash changes
Items As of<br><br>January 1,<br><br>2026 Cash flows Foreign exchange Others<br><br>(Note A) As of<br><br>March 31,<br><br>2026
Short-term loans $8,408,772 $(4,820,853) $1,752 $- $3,589,671
Bonds payable<br><br>(current portion included) 50,228,305 (5,310) - 57,529 50,280,524
Long-term loans (current portion included) 14,331,790 1,781,802 69,499 - 16,183,091
Lease liabilities 6,000,846 (206,420) 61,002 127,031<br><br>(Note B) 5,982,459
Guarantee deposits (current portion included) 40,867,857 (444,601) 424,852 - 40,848,108<br><br>(Note C)

For the three-month period ended March 31, 2025:

Non-cash changes
Items As of<br><br>January 1,<br><br>2025 Cash Flows Foreign exchange Others<br><br>(Note A) As of<br><br>March 31,<br><br>2025
Short-term loans $8,515,000 $(2,015,000) $- $- $6,500,000
Bonds payable<br><br>(current portion included) 30,051,568 - - 48,961 30,100,529
Long-term loans (current portion included) 36,476,909 (11,002,686) 184,278 - 25,658,501
Lease liabilities 6,419,016 (211,427) 121,511 10,436<br><br>(Note B) 6,339,536
Guarantee deposits (current portion included) 42,874,494 (547,998) 255,973 - 42,582,469<br><br>(Note C)

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

  • Mainly due to the addition to lease properties.

  • Guarantee deposits mainly consisted of deposits of capacity reservation.

  • RELATED PARTY TRANSACTIONS

In addition to those disclosed in other notes, the following is a summary of transactions between the Company and related parties during the financial reporting periods:

  • Name and Relationship of Related Parties
Name of related parties Relationship with the Company
FARADAY TECHNOLOGY CORP. and its Subsidiaries Associate
UNIMICRON TECHNOLOGY CORP. and its Subsidiaries Associate
SILICON INTEGRATED SYSTEMS CORP. and its Subsidiaries Associate
YANN YUAN INVESTMENT CO., LTD. Associate
PHOTRONICS DNP MASK CORPORATION Other related party

  • Significant Related Party Transactions

  • Operating transactions

Operating revenues

For the three-month periods ended March 31,
2026 2025
Associates $1,633,639 $674,155

Accounts receivable, net

As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Associates
FARADAY TECHNOLOGY CORP. and its Subsidiaries
FARADAY TECHNOLOGY CORP. $417,202 $336,736 $252,938
ARTERY TECHNOLOGY COMPANY 180,418 - -
ARTERY TECHNOLOGY CORPORATION, LTD. 118,795 76,840 109,369
UNITED CREATIVE SOLUTION CORPORATION 112,507 - -
Others - 15,943 -
SILICON INTEGRATED SYSTEMS CORP. and its Subsidiaries
HYCON TECHNOLOGY CORPORATION - 59 43,508
Others 70,875 72,571 5,960
Total $899,797 $502,149 $411,775

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

  • Significant asset transactions

Acquisition of investments accounted for under the equity method

Transaction<br><br>underlying Trading Volume<br><br>(In thousands<br><br>of shares) For the three-month period<br><br>ended March 31, 2026
Purchase price
Associates Stock of UNIMICRON 5,546 $643,299

Please refer to Note 6(7) for the relevant information.

For the three-month period ended March 31, 2025: None.

Acquisition of intangible assets

Purchase price
For the three-month periods ended March 31,
2026 2025
FARADAY TECHNOLOGY CORP. $29,881 $16,834
  • Others

Mask expenditure

For the three-month periods ended March 31,
2026 2025
Other related party $590,802 $691,398

Other payables of mask expenditure

As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Other related party $688,490 $780,692 $789,006

Cash dividends from investments accounted for under the equity method

Cash dividends from associates for the three-month periods ended March 31, 2026 and 2025 were nil and NT$117 million, respectively.

As of March 31, 2026, December 31, 2025 and March 31, 2025, cash dividends of NT$631 million, NT$619 million and nil, respectively, have not yet been received and were accounted for as other receivables.

  • Key management personnel compensation
For the three-month periods ended March 31,
2026 2025
Short-term employee benefits $557,489 $439,399
Post-employment benefits 10,117 624
Share-based payment 83,164 81,547
Others 92 91
Total $650,862 $521,661
  • ASSETS PLEDGED AS COLLATERAL

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

Carrying Amount
As of
Items March 31,<br><br>2026 December 31,<br><br>2025 March 31,2025 Purpose of pledge
Refundable Deposits<br><br>(Time deposit) $1,016,774 $1,013,289 1,011,903 Customs duty guarantee
Refundable Deposits<br><br>(Time deposit) 248,061 248,061 237,051 Collateral for land lease
Refundable Deposits<br><br>(Time deposit) 18,647 18,647 18,647 Collateral for dormitory lease
Refundable Deposits<br><br>(Time deposit) 25,589 25,589 64,950 Guarantee for the application of national non-public use land for development
Refundable Deposits<br><br>(Time deposit) - - 8,118 Guarantee for the application of national non-public use land for development
Refundable Deposits<br><br>(Time deposit) 39,533 39,533 38,073 Energy resources guarantee
Refundable Deposits<br><br>(Time deposit) 223,650 219,450 496,950 Collateral for letter of credit
Buildings 67,377 69,303 4,401,809 Collateral for long-term loans
Machinery and equipment 462,480 501,090 3,578,813 Collateral for long-term loans
Right-of-use assets - - 273,176 Collateral for long-term loans
Total $2,102,111 $2,134,962 10,129,490

All values are in US Dollars.

  • SIGNIFICANT CONTINGENCIES AND UNRECOGNIZED CONTRACT COMMITMENTS

  • As of March 31, 2026, amounts available under unused letters of credit were NT$0.2 billion.

  • As of March 31, 2026, the Company entrusted financial institutions to open performance guarantee, mainly related to the contract liabilities, customs tax and electricity supply guarantee, amounting to NT$1.4 billion.

  • The Company entered into several patent license agreements and development contracts of intellectual property for a total contract amount of approximately NT$4.4 billion. As of March 31, 2026, the portion of royalties and development fees not yet recognized was NT$1.4 billion.

  • The Company entered into several construction contracts for the expansion of its operations. As of March 31, 2026, these construction contracts amounted to approximately NT$12.8 billion and the portion of the contracts not yet recognized was approximately NT$4.6 billion.

  • The Company entered into several wafer fabrication contracts with its customers. According to the contracts, the Company shall provide agreed production capacity with the customers.

  • The Company has entered into long-term contracts with multiple suppliers for the purchase of renewable energy. The relative duration, anticipated quantity and pricing of the energy purchase are specified in the contracts.

  • SIGNIFICANT DISASTER LOSS

None.

  • SIGNIFICANT SUBSEQUENT EVENTS

None.

  • OTHERS

  • Categories of financial instruments

As of
Financial Assets March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Financial assets at fair value through profit or loss $20,503,471 $18,153,916 $18,329,615
Financial assets at fair value through other comprehensive income 15,466,094 13,774,749 17,632,064
Financial assets measured at amortized cost
Cash and cash equivalents (cash on hand excluded) 109,011,883 110,653,397 106,347,447
Receivables 38,390,528 33,731,393 36,643,071
Refundable deposits 1,704,119 1,643,661 2,004,411
Other financial assets 20,018,535 12,506,177 3,561,874
Total $205,094,630 $190,463,293 $184,518,482
Financial Liabilities
Financial liabilities at fair value through profit or loss $39,699 $57,163 $1,098,893
Financial liabilities measured at amortized cost
Short-term loans 3,589,671 8,408,772 6,500,000
Payables 39,894,311 45,297,553 39,756,713
Bonds payable (current portion included) 50,280,524 50,228,305 30,100,529
Long-term loans (current portion included) 16,183,091 14,331,790 25,658,501
Lease liabilities 5,982,459 6,000,846 6,339,536
Guarantee deposits (current portion included) 40,848,108 40,867,857 42,582,469
Total $156,817,863 $165,192,286 $152,036,641
  • 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.

  • 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 three-month periods ended March 31, 2026 and 2025 decreases/increases by NT$1,123 million and NT$1,099 million, respectively. When RMB strengthens/weakens against USD by 10%, the profit for the three-month periods ended March 31, 2026 and 2025 decreases/increases by NT$227 million and NT$909 million, respectively. When JPY strengthens/weakens against USD by 10%, the profit for the three-month periods ended March 31, 2026 and 2025 decreases/increases by NT$181 million and NT$177 million, respectively.

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), (13) and (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 three-month periods ended March 31, 2026 and 2025 to decrease/increase by NT$5 million and NT$8 million, respectively.

Equity price risk

The Company’s listed and unlisted equity securities, investments in convertible bonds and exchange right of the exchangeable bonds issued 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 investments in convertible bonds which contain the right of conversion to equity instruments are classified as financial assets at fair value through profit or loss, and the exchange right of the exchangeable bonds issued is classified as financial liabilities at fair value through profit or loss as it does not satisfy the definition of an equity component. Please refer to Note 6(2), (3) and (12) for the relevant information.

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 three-month periods ended March 31, 2026 and 2025 by NT$317 million and NT$241 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 (loss) for the three-month periods ended March 31, 2026 and 2025 by NT$577 million and NT$718 million, respectively.

Please refer to Note 12(7) for sensitivity analysis information of other equity instruments or derivatives that are linked to such equity instruments whose fair value measurement is categorized under Level 3.

  • 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.

As of March 31, 2026, December 31, 2025 and March 31, 2025, accounts receivable from the top ten customers represent 62%, 61% and 65% of the total accounts receivable of the Company, respectively. The credit concentration risk of other accounts receivable is insignificant.

  • 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 March 31, 2026
Less than<br><br>1 year 2 to 3<br><br>years 4 to 5<br><br>years > 5 years Total
Non-derivative financial liabilities
Short-term loans $3,638,443 $- $- $- $3,638,443
Payables 39,528,059 - - - 39,528,059
Bonds payable (Note) 17,168,712 25,181,890 7,922,618 2,100,833 52,374,053
Long-term loans 3,409,388 10,650,912 3,034,478 2,275 17,097,053
Lease liabilities 808,453 1,504,857 1,444,556 3,889,459 7,647,325
Guarantee deposits 631,900 19,209,173 14,191,630 6,815,405 40,848,108
Total $65,184,955 $56,546,832 $26,593,282 $12,807,972 $161,133,041
Derivative financial liabilities
Forward exchange contracts
Gross settlement -inflow $64,146 $- $- $- $64,146
Gross settlement -outflow (64,212) - - - (64,212)
Net settlement -outflow (12,307) - - - (12,307)
Total $(12,373) $- $- $- $(12,373)
As of December 31, 2025
--- --- --- --- --- ---
Less than<br><br>1 year 2 to 3<br><br>years 4 to 5<br><br>years > 5 years Total
Non-derivative financial liabilities
Short-term loans $8,589,773 $- $- $- $8,589,773
Payables 45,055,193 - - - 45,055,193
Bonds payable (Note) 17,033,209 25,278,203 7,958,238 2,104,403 52,374,053
Long-term loans 3,319,372 8,227,746 3,612,205 24,510 15,183,833
Lease liabilities 805,290 1,470,303 1,434,794 3,970,634 7,681,021
Guarantee deposits 1,061,929 19,143,652 13,847,566 6,814,710 40,867,857
Total $75,864,766 $54,119,904 $26,852,803 $12,914,257 $169,751,730
Derivative financial liabilities
Forward exchange contracts
Net settlement -outflow $(2,512) $- $- $- $(2,512)
As of March 31, 2025
--- --- --- --- --- ---
Less than<br><br>1 year 2 to 3<br><br>years 4 to 5<br><br>years > 5 years Total
Non-derivative financial liabilities
Short-term loans $6,626,869 $- $- $- $6,626,869
Payables 39,518,076 - - - 39,518,076
Bonds payable (Note) 403,908 16,659,317 12,103,095 2,115,113 31,281,433
Long-term loans 6,197,100 10,557,694 10,632,783 74,784 27,462,361
Lease liabilities 833,887 1,511,300 1,452,774 4,329,744 8,127,705
Guarantee deposits 292,697 4,641,883 25,905,670 11,742,219 42,582,469
Total $53,872,537 $33,370,194 $50,094,322 $18,261,860 $155,598,913
Derivative financial liabilities
Forward exchange contracts
Net settlement -outflow $(5,277) $- $- $- $(5,277)

Note: UMC issued unsecured exchangeable bonds where the bondholders may exchange the bonds at any time on or after October 8, 2021 and prior to June 27, 2026 into NOVATEK common shares which UMC holds and accounts for as equity instruments investments measured at fair value through other comprehensive income. The balances of equity instruments investments measured at fair value through other comprehensive income were NT$4,699 million, NT$4,630 million and NT$6,398 million as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively. Please refer to Note 6(13) for the terms of redemption.

  • 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 March 31, 2026

Type Notional Amount Contract Period
Forward exchange contracts Sell USD 47 million March 2, 2026 – April 24, 2026

As of December 31, 2025

Type Notional Amount Contract Period
Forward exchange contracts Sell USD 22 million December 8, 2025 – January 23, 2026

As of March 31, 2025

Type Notional Amount Contract Period
Forward exchange contracts Sell USD 24 million March 12, 2025 – April 25, 2025
  • 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.

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.

  • Assets and liabilities measured and recorded at fair value on a recurring basis:
As of March 31, 2026
Level 1 Level 2 Level 3 Total
Financial assets:
Financial assets at fair value through profit or loss, current $426,780 $181 $101,153 $528,114
Financial assets at fair value through profit or loss, noncurrent 7,170,657 21,600 12,783,100 19,975,357
Financial assets at fair value through other comprehensive income, current 4,698,536 - - 4,698,536
Financial assets at fair value through other comprehensive income, noncurrent 6,835,488 - 3,932,070 10,767,558
Financial liabilities:
Financial liabilities at fair value through profit or loss, current - 12,373 27,326 39,699
As of December 31, 2025
--- --- --- --- ---
Level 1 Level 2 Level 3 Total
Financial assets:
Financial assets at fair value through profit or loss, current $468,010 $1,859 $98,652 $568,521
Financial assets at fair value through profit or loss, noncurrent 5,838,381 20,600 11,726,414 17,585,395
Financial assets at fair value through other comprehensive income, current 4,630,441 - - 4,630,441
Financial assets at fair value through other comprehensive income, noncurrent 5,990,762 - 3,153,546 9,144,308
Financial liabilities:
Financial liabilities at fair value through profit or loss, current - 2,512 54,651 57,163
As of March 31, 2025
--- --- --- --- ---
Level 1 Level 2 Level 3 Total
Financial assets:
Financial assets at fair value through profit or loss, current $523,380 $- $31,917 $555,297
Financial assets at fair value through profit or loss, noncurrent 5,435,232 18,900 12,320,186 17,774,318
Financial assets at fair value through other comprehensive income, current 6,398,188 - - 6,398,188
Financial assets at fair value through other comprehensive income, noncurrent 7,967,177 - 3,266,699 11,233,876
Financial liabilities:
Financial liabilities at fair value through profit or loss, current - 5,277 1,093,616 1,098,893

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.

During the three-month periods ended March 31, 2026 and 2025, there were no transfers between Level 1 and Level 2 fair value measurements.

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

Financial assets at fair value through profit or loss Financial assets at fair value through<br><br>other comprehensive income
Common stock Preferred stock Funds Convertible bonds Others Total Common stock Preferred stock Total
As of January 1, 2026 $3,000,137 $3,841,074 $4,812,543 $98,652 $72,660 $11,825,066 $2,950,738 $202,808 $3,153,546
Recognized in profit (loss) 241,721 131,933 354,123 1,301 1,395 730,473 - - -
Recognized in other comprehensive income (loss) - - - - - - 775,129 3,395 778,524
Acquisition 74,588 236,790 112,857 94,878 47,730 566,843 - - -
Disposal (23,050) (146) - - - (23,196) - - -
Return of capital - - (45,632) - - (45,632) - - -
Transfer out of Level 3 (264,410) - - - - (264,410) - - -
Exchange effect 8,845 35,077 48,824 2,172 191 95,109 - - -
As of March 31, 2026 $3,037,831 $4,244,728 $5,282,715 $197,003 $121,976 $12,884,253 $3,725,867 $206,203 $3,932,070
Financial liabilities at fair value<br><br>through profit or loss
--- ---
Derivatives
As of January 1, 2026 $54,651
Recognized in loss (profit) (27,325)
As of March 31, 2026 $27,326
Financial assets at fair value through profit or loss Financial assets at fair value through<br><br>other comprehensive income
--- --- --- --- --- --- --- --- --- ---
Common stock Preferred stock Funds Convertible bonds Others Total Common stock Preferred stock Total
As of January 1, 2025 $3,008,183 $3,403,933 $5,596,447 $54,766 $65,460 $12,128,789 $3,231,518 $204,880 $3,436,398
Recognized in profit (loss) 196,093 (9,089) (192,496) (723) 800 (5,415) - - -
Recognized in other comprehensive income (loss) - - - - - - (8,776) (264) (9,040)
Acquisition 62,250 - 167,509 30,976 - 260,735 - - -
Disposal (1,950) - - (30,976) - (32,926) - - -
Return of capital - - (2,261) - - (2,261) (160,659) - (160,659)
Transfer out of Level 3 (60,000) - - - - (60,000) - - -
Exchange effect 8,294 21,987 32,622 278 - 63,181 - - -
As of March 31, 2025 $3,212,870 $3,416,831 $5,601,821 $54,321 $66,260 $12,352,103 $3,062,083 $204,616 $3,266,699
Financial liabilities at fair value<br><br>through profit or loss
--- ---
Derivatives
As of January 1, 2025 $899,961
Recognized in loss (profit) 193,655
As of March 31, 2025 $1,093,616

The total profit (loss) of NT$732 million and NT$(5) million for the three-month periods ended March 31, 2026 and 2025, 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 total profit (loss) of NT$27 million and NT$(194) million for the three-month periods ended March 31, 2026 and 2025, were included in profit or loss that is attributable to the change in unrealized gains or losses relating to those financial liabilities 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.

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

As of March 31, 2026
Category 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% - 70% 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 three-month period ended March 31, 2026 by NT$368 million and NT$323 million, respectively, and decrease/increase the Company’s other comprehensive income (loss) for the three-month period ended March 31, 2026 by NT$275 million.
Fund Net asset value approach N/A N/A N/A N/A
Embedded derivatives in exchangeable bonds Binomial tree valuation model Volatility 27.80% The higher the volatility, the higher the estimated fair value is determined. A change of 5% in the volatility could decrease/increase the Company’s profit (loss) for the three-month period ended March 31, 2026 by NT$23 million and NT$17 million, respectively.
As of March 31, 2025
--- --- --- --- --- ---
Category 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 three-month period ended March 31, 2025 by NT$325 million and NT$283 million, respectively, and decrease/increase the Company’s other comprehensive income (loss) for the three-month period ended March 31, 2025 by NT$232 million.
Fund Net asset value approach N/A N/A N/A N/A
Convertible bonds Binomial tree valuation model Volatility 56.77% The higher the volatility, the higher the estimated fair value is determined. A change of 5% in the volatility could increase/decrease the Company’s profit (loss) for the three-month period ended March 31, 2025 by NT$0.2 million and NT$0.2 million, respectively.
Embedded derivatives in exchangeable bonds Binomial tree valuation model Volatility 24.91% The higher the volatility, the higher the estimated fair value is determined. A change of 5% in the volatility could decrease/increase the Company’s profit (loss) for the three-month period ended March 31, 2025 by NT$85 million and NT$99 million, respectively.
  • 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, exchange price, volatility, risk-free interest rates and risk discount 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 cash and cash equivalents, receivables, refundable deposits, other financial assets, short-term loans, payables and guarantee deposits approximate their carrying amount.

As of March 31, 2026

Fair value measurements during<br><br>reporting period using
Items Fair value Level 1 Level 2 Level 3 Carrying amount
Bonds payable (current portion included) $50,300,066 $44,565,860 $5,734,206 $- $50,280,524
Long-term loans (current portion included) 16,183,091 - 16,183,091 - 16,183,091

As of December 31, 2025

Fair value measurements during<br><br>reporting period using
Items Fair value Level 1 Level 2 Level 3 Carrying amount
Bonds payable (current portion included) $50,253,543 $44,541,910 $5,711,633 $- $50,228,305
Long-term loans (current portion included) 14,331,790 - 14,331,790 - 14,331,790

As of March 31, 2025

Fair value measurements during<br><br>reporting period using
Items Fair value Level 1 Level 2 Level 3 Carrying amount
Bonds payables (current portion included) $30,072,799 $24,438,390 $5,634,409 $- $30,100,529
Long-term loans (current portion included) 25,658,501 - 25,658,501 - 25,658,501
  • 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 were as follows:

As of
March 31, 2026 December 31, 2025
Foreign Currency (thousand) Exchange Rate NTD (thousand) Foreign Currency (thousand) Exchange Rate NTD (thousand)
Financial Assets
Monetary items
USD:NTD $1,153,237 31.95 $36,845,908 $1,006,030 31.35 $31,539,035
SGD:USD 215,170 0.7737 5,318,998 208,988 0.7764 5,086,811
JPY:USD 2,299,474 0.0062 456,215 4,852,832 0.0063 958,459
USD:JPY 111,916 159.93 3,551,106 121,249 156.54 3,769,498
USD:RMB 98,811 6.9194 3,148,486 93,934 7.0288 2,948,653
Non-Monetary items
USD:NTD 208,884 31.95 6,673,845 179,988 31.35 5,642,615
Financial Liabilities
Monetary items
USD:NTD 799,271 32.05 25,616,636 833,119 31.45 26,201,605
SGD:USD 182,638 0.7769 4,547,682 168,204 0.7797 4,124,630
JPY:USD 2,120,904 0.0063 429,486 5,809,127 0.0064 1,169,261
USD:JPY 55,846 159.93 1,808,634 58,281 156.54 1,849,302
USD:RMB 27,147 6.9194 874,395 36,432 7.0288 1,156,418
As of
--- --- --- ---
March 31, 2025
Foreign Currency (thousand) Exchange Rate NTD (thousand)
Financial Assets
Monetary items
USD:NTD $1,158,797 33.13 $38,390,931
SGD:USD 203,653 0.7452 5,027,886
JPY:USD 5,418,367 0.0067 1,202,720
USD:JPY 101,719 149.53 3,355,330
USD:RMB 438,732 7.1782 14,323,042
Non-Monetary items
USD:NTD 192,568 33.13 6,379,766
Financial Liabilities
Monetary items
USD:NTD 824,485 33.23 27,397,633
SGD:USD 159,899 0.7484 3,976,574
JPY:USD 6,048,897 0.0068 1,366,833
USD:JPY 46,843 149.53 1,573,888
USD:RMB 158,140 7.1782 5,219,448

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

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.

  • Significant intercompany transactions among consolidated entities are disclosed in Attachment 1.

  • 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 March 31, 2026, December 31, 2025 and March 31, 2025 were as follows:

As of
March 31,<br><br>2026 December 31,<br><br>2025 March 31,<br><br>2025
Total liabilities $193,195,750 $199,140,569 $182,133,652
Less: Cash and cash equivalents (109,018,591) (110,660,052) (106,353,757)
Net debt 84,177,159 88,480,517 75,779,895
Total equity 406,736,158 379,855,440 390,828,631
Total capital $490,913,317 $468,335,957 $466,608,526
Debt to capital ratios 17.15% 18.89% 16.24%

  • ADDITIONAL DISCLOSURES

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

  • Financing provided to others for the three-month period ended March 31, 2026: Please refer to Attachment 2.

  • Endorsement/Guarantee provided to others for the three-month period ended March 31, 2026: Please refer to Attachment 3.

  • Significant securities held as of March 31, 2026 (excluding subsidiaries, associates and joint venture): Please refer to Attachment 4.

  • Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million or 20 percent of the capital stock for the three-month period ended March 31, 2026: Please refer to Attachment 5.

  • Receivables from related parties with amounts exceeding the lower of NT$100 million or 20 percent of capital stock as of March 31, 2026: Please refer to Attachment 6.

  • Names, locations and related information of investees as of March 31, 2026 (excluding investment in Mainland China): Please refer to Attachment 7.

  • Investment in Mainland China

  • 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 8.

  • 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 and 5.

  • 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. 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.

ATTACHMENT 1 (Significant intercompany transactions between consolidated entities)
(Amount in thousand, Currency denomination in NTD or in foreign currencies)
For the three-month period ended March 31, 2026
Transactions
No.(Note 1) Counterparty Relationship with <br>the Company<br>(Note 2) Account Amount Collection periods<br>(Note 3) Percentage of consolidated operating <br>revenues or consolidated total assets <br>(Note 4)
0 UMC GROUP (USA) 1 Sales $12,734,523 Net 60 days 21%
0 UMC GROUP (USA) 1 Accounts receivable 4,918,781 - 1%
0 UNITED SEMICONDUCTOR (XIAMEN) CO., LTD. 1 Sales 281,674<br>(Note 5) Net 30 days 0%
0 UNITED SEMICONDUCTOR (XIAMEN) CO., LTD. 1 Accounts receivable 4,832 - 0%
1 UMC GROUP (USA) 3 Sales 1,893,110 Net 60 days 3%
1 UMC GROUP (USA) 3 Accounts receivable 1,277,149 - 0%
2 UMC GROUP (USA) 3 Sales 148,719 Net 60 days 0%
2 UMC GROUP (USA) 3 Accounts receivable 56,646 - 0%
3 UMC GROUP (USA) 3 Sales 104,334 Net 60 days 0%
3 UMC GROUP (USA) 3 Accounts receivable 73,255 - 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 0.35 billion which was recognized as deferred revenue.             Since it was a downstream transaction, the deferred revenue would be realized over time.

All values are in US Dollars.

ATTACHMENT 2 (Financing provided to others for the three-month period ended March 31, 2026)
(Amount in thousand, Currency denomination in NTD or in foreign currencies)
Collateral
No. Lender Counterparty 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) counterparty Reason for financing Loss allowance Item Value Limit of financing amount for individual counterparty Limit of total financing amount
None
ATTACHMENT 3 (Endorsement/Guarantee provided to others for the three-month period ended March 31, 2026)
--- --- --- --- --- --- --- --- --- --- ---
(Amount in thousand, Currency denomination in NTD or in foreign currencies)
Receiving party
No. Endorsor/Guarantor Company name Relationship Limit of guarantee/endorsement amount for receiving party Maximum balance for the period Ending balance Actual amount <br>provided Amount of collateral guarantee/endorsement Percentage of accumulated guarantee amount to net assets value from the latest financial statement Limit of total guarantee/endorsement amount
None
ATTACHMENT 4 (Significant securities held as of March 31, 2026) (Excluding subsidiaries, associates and joint ventures)
--- --- --- --- --- --- --- --- --- --- --- ---
(Amount in thousand, Currency denomination in NTD or in foreign currencies)
March 31, 2026
Investor Company Type of securities Name of securities Relationship Financial statement account Units (thousand)/ bonds/ shares (thousand) Carrying amount Percentage of ownership (%) Fair value/<br>Net assets value Shares as collateral<br>(thousand)
UNITED MICROELECTRONICS CORPORATION Stock PIXART IMAGING, INC. - Financial assets at fair value through profit or loss, current 1,600 $283,200 1.06 $283,200 None
Fund TGVEST ASIA PARTNERS II(TAIWAN), L.P. - Financial assets at fair value through profit or loss, noncurrent - 823,843 - 823,843 None
Stock HOLTEK SEMICONDUCTOR INC. - Financial assets at fair value through profit or loss, noncurrent 22,144 1,035,244 9.61 1,035,244 None
Fund GRANDFULL CONVERGENCE INNOVATION GROWTH FUND, L.P. - Financial assets at fair value through profit or loss, noncurrent - 273,707 - 273,707 None
Stock UNITED INDUSTRIAL GASES CO., LTD. - Financial assets at fair value through profit or loss, noncurrent 16,680 1,630,940 7.66 1,630,940 None
Stock OCTTASIA INVESTMENT HOLDING INC. - Financial assets at fair value through profit or loss, noncurrent 4,530 175,128 6.29 175,128 None
Stock ENNOSTAR INC. - Financial assets at fair value through profit or loss, noncurrent 5,357 244,034 0.73 244,034 None
Stock NOVATEK MICROELECTRONICS CORP. - Financial assets at fair value through other comprehensive income, current 12,381 4,698,536 2.03 4,698,536 None
Stock UNIMICRON HOLDING LIMITED Associate Financial assets at fair value through other comprehensive income, noncurrent 15,129 2,663,307 10.57 2,663,307 None
Stock ITE TECH. INC. - Financial assets at fair value through other comprehensive income, noncurrent 13,960 1,598,417 8.41 1,598,417 None
Stock CHIPBOND TECHNOLOGY CORPORATION - Financial assets at fair value through other comprehensive income, noncurrent 53,164 3,694,886 7.14 3,694,886 None
Stock NOVATEK MICROELECTRONICS CORP. - Financial assets at fair value through other comprehensive income, noncurrent 4,064 1,542,185 0.67 1,542,185 None
Stock-preferred stock MTIC HOLDINGS PTE. LTD. Associate Financial assets at fair value through other comprehensive income, noncurrent 12,000 206,204 - 206,204 None
FORTUNE VENTURE CAPITAL CORP. Stock TOPOINT TECHNOLOGY CO., LTD. - Financial assets at fair value through profit or loss, noncurrent 4,586 1,114,424 3.16 1,114,424 None
Stock CENTERA PHOTONICS INC. - Financial assets at fair value through profit or loss, noncurrent 1,762 243,578 2.71 243,578 None
Stock TAIWAN SEMICONDUCTOR CO., LTD. - Financial assets at fair value through profit or loss, noncurrent 5,941 310,120 2.25 310,120 None
Stock CHIPBOND TECHNOLOGY CORPORATION - Financial assets at fair value through profit or loss, noncurrent 13,489 937,451 1.81 937,451 None
Stock INNOSTAR SERVICE, INC. - Financial assets at fair value through profit or loss, noncurrent 284 361,845 0.77 361,845 None
Stock-preferred stock EJOULE INTERNATIONAL LTD. - Financial assets at fair value through profit or loss, noncurrent 23,909 166,285 - 166,285 None
Fund TRANSLINK CAPITAL PARTNERS IV, L.P. - Financial assets at fair value through profit or loss, noncurrent - 175,773 - 175,773 None
Fund TRENDFORCE CAPITAL FUND SPC-TRENDFORCE CAPITAL FUND I SP - Financial assets at fair value through profit or loss, noncurrent 15 233,732 - 233,732 None
Fund TRANSLINK CAPITAL PARTNERS V, L.P. - Financial assets at fair value through profit or loss, noncurrent - 165,351 - 165,351 None
Stock SHIN-ETSU HANDOTAI TAIWAN CO., LTD. - Financial assets at fair value through other comprehensive income, noncurrent 10,500 847,140 7.00 847,140 None
TLC CAPITAL CO., LTD. Stock ARTERY TECHNOLOGY CORP. Associate Financial assets at fair value through profit or loss, noncurrent 5,112 544,428 8.18 544,428 None
Stock SIMPLO TECHNOLOGY CO., LTD. - Financial assets at fair value through profit or loss, noncurrent 1,422 473,687 0.77 473,687 None
Fund TRANSLINK CAPITAL PARTNERS III, L.P. - Financial assets at fair value through profit or loss, noncurrent - 122,702 - 122,702 None
Stock-preferred stock EJOULE INTERNATIONAL LTD. - Financial assets at fair value through profit or loss, noncurrent 50,767 403,139 - 403,139 None
Stock-preferred stock SILITH TECHNOLOGY LTD. - Financial assets at fair value through profit or loss, noncurrent 6,978 314,271 - 314,271 None
UMC CAPITAL CORP. Stock OCTTASIA INVESTMENT HOLDING INC. - Financial assets at fair value through profit or loss, noncurrent 5,594 USD 6,769 7.76 USD 6,769 None
Stock ALL-STARS SP IV LTD. - Financial assets at fair value through profit or loss, noncurrent 7 USD 6,749 5.03 USD 6,749 None
Stock-preferred stock ATSCALE, INC. - Financial assets at fair value through profit or loss, noncurrent 14,129 USD 8,180 - USD 8,180 None
Stock-preferred stock SIFOTONICS TECHNOLOGIES CO., LTD. - Financial assets at fair value through profit or loss, noncurrent 3,500 USD 9,431 - USD 9,431 None
Stock-preferred stock SILICON BOX PTE. LTD. - Financial assets at fair value through profit or loss, noncurrent 156 USD 9,255 - USD 9,255 None
ATTACHMENT 4 (Significant securities held as of March 31, 2026) (Excluding subsidiaries, associates and joint ventures)
--- --- --- --- --- --- --- --- --- --- --- ---
(Amount in thousand, Currency denomination in NTD or in foreign currencies)
March 31, 2026
Investor Company Type of securities Name of securities Relationship Financial statement account Units (thousand)/ bonds/ shares (thousand) Carrying amount Percentage of ownership (%) Fair value/<br>Net assets value Shares as collateral<br>(thousand)
UMC CAPITAL CORP. Stock-preferred stock DREAMBIG SEMICONDUCTOR INC. - Financial assets at fair value through profit or loss, noncurrent 3,296 USD 6,827 - USD 6,827 None
Fund TRANSLINK CAPITAL PARTNERS III, L.P. - Financial assets at fair value through profit or loss, noncurrent - USD 10,383 - USD 10,383 None
Fund STORM VENTURES FUND V, L.P. - Financial assets at fair value through profit or loss, noncurrent - USD 9,074 - USD 9,074 None
Fund SIERRA VENTURES XI, L.P. - Financial assets at fair value through profit or loss, noncurrent - USD 12,756 - USD 12,756 None
Fund TRANSLINK CAPITAL PARTNERS IV, L.P. - Financial assets at fair value through profit or loss, noncurrent - USD 16,504 - USD 16,504 None
Fund TRANSLINK CAPITAL PARTNERS V, L.P. - Financial assets at fair value through profit or loss, noncurrent - USD 3,450 - USD 3,450 None
Fund 7V AI CAPITAL LLC - Financial assets at fair value through profit or loss, noncurrent - USD 18,389 - USD 18,389 None
ATTACHMENT 5 (Related party transactions for purchases and sales amounts exceeding the lower of NT100 million or 20 percent of capital stock for the three-month period ended March 31, 2026)
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
(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)
Counterparty Purchases (Sales) Amount Percentage of total purchases (sales) Term Unit price Term Balance Note
UMC GROUP (USA) Sales $12,734,523 27 % Net 60 days N/A N/A 4,918,781 19 %
FARADAY TECHNOLOGY CORPORATION Sales 343,724 1 % Month-end 60 days N/A N/A 280,638 1 %
UNITEDDS SEMICONDUCTOR (SHANDONG) CO., LTD. Sales 336,123 1 % Net 30 days N/A N/A 38,960 0 %
UNITED SEMICONDUCTOR (XIAMEN) CO., LTD. Sales 281,674 1 % Net 30 days N/A N/A 4,832 0 %
ARTERY TECHNOLOGY COMPANY Sales 157,774 0 % Month-end 60 days N/A N/A 112,598 0 %
UMC GROUP (USA)
Transactions Details of non-arm's length transaction Notes and accounts receivable (payable)
Counterparty Purchases (Sales) Amount Percentage of total purchases (sales) Term Unit price Term Balance Note
UNITED MICROELECTRONICS CORPORATION Purchases USD 384,382 86 % Net 60 days N/A N/A USD 152,632 77 %
UNITED SEMICONDUCTOR JAPAN CO., LTD. Purchases USD 58,372 13 % Net 60 days N/A N/A USD 38,729 19 %
UNITED SEMICONDUCTOR JAPAN CO., LTD.
Transactions Details of non-arm's length transaction Notes and accounts receivable (payable)
Counterparty Purchases (Sales) Amount Percentage of total purchases (sales) Term Unit price Term Balance Note
UMC GROUP (USA) Sales JPY 9,385,768 42 % Net 60 days N/A N/A JPY 6,437,244 36 %
UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.
Transactions Details of non-arm's length transaction Notes and accounts receivable (payable)
Counterparty Purchases (Sales) Amount Percentage of total purchases (sales) Term Unit price Term Balance Note
UNITEDDS SEMICONDUCTOR (SHANDONG) CO., LTD. Sales RMB 54,738 4 % Month-end 30 days N/A N/A RMB - 0 %
FARADAY TECHNOLOGY CORPORATION Sales RMB 34,952 2 % Month-end 60 days N/A N/A RMB 27,818 4 %
UMC GROUP (USA) Sales RMB 32,558 2 % Net 60 days N/A N/A RMB 12,301 2 %
ARTERY TECHNOLOGY CORPORATION, LTD. Sales RMB 22,857 1 % Month-end 60 days N/A N/A RMB 25,797 3 %
WAVETEK MICROELECTRONICS CORPORATION
Transactions Details of non-arm's length transaction Notes and accounts receivable (payable)
Counterparty Purchases (Sales) Amount Percentage of total purchases (sales) Term Unit price Term Balance Note
UMC GROUP (USA) Sales $104,334 28 % Net 60 days N/A N/A 73,255 35 %

All values are in US Dollars.

ATTACHMENT 6 (Receivables from related parties with amounts exceeding the lower of NT100 million or 20 percent of capital stock as of March 31, 2026)
(Amount in thousand, Currency denomination in NTD or in foreign currencies)
UNITED MICROELECTRONICS CORPORATION
Ending balance Overdue receivables
Counterparty Notes <br>receivable Turnover rate (times) Amount Collection status Amount received in subsequent period
UMC GROUP (USA) - 4,918,781 20,414 $4,939,195 9.72 $- - 2,470,707 $4,147
UNIMICRON HOLDING LIMITED - - 630,622 630,622 - - - 630,622
FARADAY TECHNOLOGY CORPORATION - 280,638 38 280,676 5.06 - - 28,808 -
ARTERY TECHNOLOGY COMPANY - 112,598 - 112,598 11.21 - - 81,953 -
UNITED SEMICONDUCTOR JAPAN CO., LTD.
Ending balance Overdue receivables
Counterparty Notes <br>receivable Turnover rate (times) Amount Collection status Amount received in subsequent period
UMC GROUP (USA) JPY - 6,437,244 - 6,437,244 6.66 JPY - - JPY 3,060,904 -
UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.
Ending balance Overdue receivables
Counterparty Notes <br>receivable Turnover rate (times) Amount Collection status Amount received in subsequent period
FARADAY TECHNOLOGY CORPORATION RMB - 27,818 - 27,818 6.39 RMB - - RMB - -
ARTERY TECHNOLOGY CORPORATION, LTD. RMB - 25,797 - 25,797 5.31 RMB - - RMB 1,698 -
UNITED CREATIVE SOLUTION CORPORATION RMB - 24,431 - 24,431 7.08 RMB - - RMB 7,679 -

All values are in US Dollars.

ATTACHMENT 7 (Names, locations and related information of investee companies as of March 31, 2026) (Not including investment in Mainland China)
(Amount in thousand, Currency denomination in NTD or in foreign currencies)
Initial Investment Investment as of March 31, 2026
Investor Company Investee company Address Main businesses and products Ending balance Beginning balance Number of shares (thousand) Percentage of ownership<br>(%) Carrying amount
UNITED MICROELECTRONICS CORPORATION UMC GROUP (USA) USA IC Sales USD 16,438 USD 16,438 16,438 100.00 2,708,901 46,971 46,971
UNITED MICROELECTRONICS (EUROPE) B.V. The Netherlands Marketing support activities USD 5,421 USD 5,421 9 100.00 187,082 2,315 2,315
UMC CAPITAL CORP. Cayman Islands Investment holding USD 103,500 USD 103,500 93,663 100.00 5,398,693 208,927 208,927
GREEN EARTH LIMITED Samoa Investment holding USD 1,549,000 USD 1,549,000 1,549,000 100.00 37,389,955 1,222,657 1,222,657
TLC CAPITAL CO., LTD. Taipei City, Taiwan Venture capital 4,610,000 4,610,000 473,530 100.00 5,339,682 415,713 415,713
UMC INVESTMENT (SAMOA) LIMITED Samoa Investment holding USD 1,520 USD 1,520 1,520 100.00 50,015 974 974
FORTUNE VENTURE CAPITAL CORP. Taipei City, Taiwan Consulting and planning for venture capital 3,440,053 3,440,053 585,462 100.00 9,353,834 930,575 930,575
UMC KOREA CO., LTD. Korea Marketing support activities KRW 550,000 KRW 550,000 110 100.00 26,777 409 409
OMNI GLOBAL LIMITED Samoa Investment holding USD 4,300 USD 4,300 4,300 100.00 885,135 (8,590) (8,590)
SINO PARAGON LIMITED Samoa Investment holding USD 2,600 USD 2,600 2,600 100.00 139,618 7,309 7,309
BEST ELITE INTERNATIONAL LIMITED British Virgin Islands Investment holding USD 309,102 USD 309,102 664,966 100.00 49,770,980 1,490,846 1,490,846
UNITED SEMICONDUCTOR JAPAN CO., LTD. Japan Sales and manufacturing of integrated circuits JPY 64,421,068 JPY 64,421,068 116,247 100.00 26,706,306 792,899 792,899
WAVETEK MICROELECTRONICS CORPORATION Hsinchu County, Taiwan Sales and manufacturing of integrated circuits 1,903,741 1,903,741 148,112 78.30 17,558 (261,365) (205,025)
MTIC HOLDINGS PTE. LTD. Singapore Investment holding SGD 12,000 SGD 12,000 12,000 45.44 - (2,216) -
UNITECH CAPITAL INC. British Virgin Islands Investment holding USD 21,000 USD 21,000 21,000 42.00 457,799 (180,274) (75,715)
TRIKNIGHT CAPITAL CORPORATION Taipei City, Taiwan Investment holding 886,559 943,148 123,642 40.00 596,361 (210,411) (84,164)
HSUN CHIEH INVESTMENT CO., LTD. Taipei City, Taiwan Investment holding 307,448 307,448 1,098,863 36.49 14,653,866 4,829,447 1,762,167
YANN YUAN INVESTMENT CO., LTD. Taipei City, Taiwan Investment holding 2,300,000 2,300,000 234,600 26.78 17,361,271 2,114,203 566,085
SILICON INTEGRATED SYSTEMS CORP. Hsinchu City, Taiwan Research, manufacturing and sales of integrated circuits 3,527,742 3,527,742 92,648 17.99 3,934,121 87,795 15,617
FARADAY TECHNOLOGY CORPORATION Hsinchu City, Taiwan Design of application-specific integrated circuit 572,891 572,891 35,963 13.80 2,570,902 104,263 6,862
UNIMICRON TECHNOLOGY CORP. Taoyuan City, Taiwan Manufacturing of PCB 3,419,134 2,775,835 204,424 12.87 16,115,022 5,042,976 609,063

All values are in US Dollars.

ATTACHMENT 7 (Names, locations and related information of investee companies as of March 31, 2026) (Not including investment in Mainland China)
(Amount in thousand, Currency denomination in NTD or in foreign currencies)
Initial Investment Investment as of March 31, 2026
Investor Company Investee company Address Main businesses and products Ending balance Number of shares (thousand) Percentage of ownership<br>(%) Carrying amount
FORTUNE VENTURE CAPITAL CORP. TERA ENERGY DEVELOPMENT CO., LTD. Hsinchu City, Taiwan Energy Technical Services 200,802 $100,752 17,758 95.37 261,426 2,817 2,619
UNITED LED CORPORATION HONG KONG LIMITED Hongkong Investment holding USD 22,500 22,500 22,500 25.14 127,108 2,254 567
WAVETEK MICROELECTRONICS CORPORATION Hsinchu County, Taiwan Sales and manufacturing of integrated circuits 8,856 8,856 1,194 0.63 684 (261,365) (1,652)
TLC CAPITAL CO., LTD. SOARING CAPITAL CORP. Samoa Investment holding USD 900 900 900 100.00 7,933 (4,074) (4,074)
HSUN CHIEH CAPITAL CORP. Samoa Investment holding USD 8,000 8,000 8,000 40.00 252,261 36,636 14,654
TERA ENERGY DEVELOPMENT CO., LTD. EVERRICH ENERGY INVESTMENT (HK) LIMITED Hongkong Investment holding USD 460 460 460 100.00 24,719 1,182 1,182
MU-ONE ENERGY CO., LTD. Hsinchu City, Taiwan Sales of pollution control equipment 10,000 - 1,000 100.00 9,860 (140) (140)
MU-WELL ENERGY CO., LTD. Hsinchu City, Taiwan Energy Technical Services 10,000 - 1,000 100.00 9,993 (7) (7)
MU-SUN ENERGY CO., LTD. Hsinchu City, Taiwan Energy Technical Services 100,000 - 10,000 100.00 100,003 3 3
WAVETEK MICROELECTRONICS CORPORATION WAVETEK MICROELECTRONICS CORPORATION (USA) USA Marketing service USD 60 60 60 100.00 2,774 (1) (1)
BEST ELITE INTERNATIONAL LIMITED INFOSHINE TECHNOLOGY LIMITED British Virgin Islands Investment holding USD 354,000 354,000 - 100.00 50,100,806 1,489,700 1,489,700
INFOSHINE TECHNOLOGY LIMITED OAKWOOD ASSOCIATES LIMITED British Virgin Islands Investment holding USD 354,000 354,000 - 100.00 50,100,806 1,489,700 1,489,700
OMNI GLOBAL LIMITED UNITED MICROTECHNOLOGY CORPORATION (CALIFORNIA) USA Research & Development USD 1,000 1,000 0 100.00 55,145 1,404 1,404
ECP VITA PTE. LTD. Singapore Insurance USD 9,000 9,000 9,000 100.00 683,142 (10,343) (10,343)
GREEN EARTH LIMITED UNITED MICROCHIP CORPORATION Cayman Islands Investment holding USD 1,546,050 1,546,050 1,546,050 100.00 37,943,986 1,221,925 1,221,925

All values are in US Dollars.

ATTACHMENT 8 (Investment in Mainland China as of March 31, 2026)
(Amount in thousand, Currency denomination in NTD or in foreign currencies)
Investee company Total amount ofpaid-in capital Accumulatedoutflow ofinvestment fromTaiwan as of January 1, 2026 Inflow Net income (loss) of investee company Percentage of ownership Investment income (loss) recognized<br>(Note 2) Carrying amount <br>as of <br>March 31, 2026 Accumulated inward remittance of earnings as of <br>March 31, 2026
UNITRUTH ADVISOR (SHANGHAI) CO., LTD. 25,560( 800) 25,560( 800) $- $25,560<br>(USD 800) $(4,075) 100.00% $(4,075)<br>(iii) $7,892 $-
EVERRICH (JINING) NEW ENERGY TECHNOLOGY CO., LTD. (formerly EVERRICH (SHANDONG) ENERGY CO., LTD.) 14,409( 451) 14,697( 460) - 14,697<br>(USD 460) 1,175 100.00% 1,175<br>(iii) 20,779 161,699<br>(USD 5,061)
UNITED LED CORPORATION 2,683,800( 84,000) 646,988( 20,250) - 646,988<br>(USD 20,250) 1,971<br>(RMB 428) 25.14% 493<br>(RMB 107)<br>(iii) 123,511<br>(RMB 26,821) -
HEJIAN TECHNOLOGY (SUZHOU) CO., LTD. 14,483,858(RMB 3,145,246) 9,875,809( 309,102) - 9,875,809<br>(USD 309,102) 1,476,593<br>(RMB 320,650) 100.00%<br>(Note 4) 1,476,593<br>(RMB 320,650)<br>(ii) 49,155,419<br>(RMB 10,674,358) -
UNITED SEMICONDUCTOR (XIAMEN) CO., LTD. 74,590,841(RMB 16,197,794) 49,050,087( 1,535,214)(Note 5) - 49,050,087<br>(USD 1,535,214)<br>(Note 5) 1,944,245<br>(RMB 422,203) 100.00% 1,944,245<br>(RMB 422,203)<br>(ii) 59,825,484<br>(RMB 12,991,419) -
Accumulated investment in Mainland China as of March 31, 2026 Investment amounts authorized by Investment Commission, MOEA Upper limit on investment
59,613,141( 1,865,826) 90,015,674( 2,817,392) 244,020,358
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 statements were 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 383,569 thousand. As of March 31, 2026, 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 2,412,313 thousand. As of March 31, 2026, the amount of investment has been all remitted.

All values are in US Dollars.

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