UMC (NYSE: UMC) 2025 net income falls as cash flow stays strong

Rhea-AI Filing Summary

United Microelectronics Corporation filed its audited consolidated financial statements for 2025, showing stable scale but lower profitability versus 2024. Operating revenues in 2025 were NT$237,553,199 thousand, up slightly from NT$232,302,584 thousand, while operating income declined to NT$43,948,688 thousand from NT$51,612,570 thousand.

Net income attributable to shareholders of the parent was NT$41,716,249 thousand in 2025, down from NT$47,210,930 thousand, with basic earnings per share decreasing from NT$3.80 to NT$3.34. Total assets were NT$578,996,009 thousand and total equity NT$379,855,440 thousand as of December 31, 2025.

The company generated strong cash flows from operations of NT$99,864,187 thousand in 2025, compared with NT$93,872,042 thousand in 2024, and ended 2025 with cash and cash equivalents of NT$110,660,052 thousand. Inventories, a key balance in a fast-moving semiconductor market, stood at NT$37,228,383 thousand at year-end 2025.

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

February 25, 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: February 25, 2026

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EXHIBIT INDEX

Exhibit		Description
99.1		2025ConsolidatedFinancialStatements

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UNITED MICROELECTRONICS CORPORATION

AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

WITH REPORT OF INDEPENDENT AUDITORS

FOR THE YEARS ENDED

DECEMBER 31, 2025 AND 2024

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.

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REPRESENTATION LETTER

The entities included in the consolidated financial statements as of December 31, 2025 and for the year then ended prepared under the International Financial Reporting Standards, No.10 are the same as the entities to be included in the combined financial statements of the Company, pursuant to the Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises (referred to as “Combined Financial Statements”). Also, the footnotes disclosed in the Consolidated Financial Statements have fully covered the required information in such Combined Financial Statements. Accordingly, the Company did not prepare any other set of Combined Financial Statements than the Consolidated Financial Statements.

Very truly yours,

UNITED MICROELECTRONICS CORPORATION

Chairman: Stan Hung

February 25, 2026

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Independent Auditors’ Report

To United Microelectronics Corporation

Opinion

We have audited the accompanying consolidated balance sheets of United Microelectronics Corporation and its subsidiaries (the “Company”) as of December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the years ended December 31, 2025 and 2024, and notes to the consolidated financial statements, including the summary of material accounting policies (together “the consolidated financial statements”).

In our opinion, based on our audits and the reports of other auditors (please refer to the Other Matter – Making Reference to the Audits of Component Auditors section of our report), the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2025 and 2024, and their consolidated financial performance and cash flows for the years ended December 31, 2025 and 2024, in conformity with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards, International Accounting Standards, Interpretations developed by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee as endorsed and became effective by Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China (the “Norm”), and we have fulfilled our other ethical responsibilities in accordance with the Norm. Based on our audits and the reports of other auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of 2025 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Valuation for slow-moving inventories

As of December 31, 2025, the Company’s net inventories amounted to NT$37,228 million. As the semiconductor industry is characterized by rapid changes in technology, management has to evaluate and estimate a reserve for slow-moving inventories that are expected to be written-off or otherwise disposed of at a future date. Auditing the valuation for slow-moving inventories was complex due to the judgmental nature of the Company’s estimation of the appropriate amount of the slow-moving inventories reserve, utilizing key inputs including historical usage, write-off activities and inventory aging. Therefore, we consider this is a key audit matter.

We obtained an understanding, evaluated the design and tested the operating effectiveness of internal controls over the Company’s slow-moving inventories reserve process. For example, we tested the control over management’s review of the reserve method and the key inputs used in the valuation process. To test the slow-moving inventories reserve, our audit procedures included, amongst others, evaluate the appropriateness of management’s methodology to determine inventory aging and inventory reserve percentages, compare slow-moving inventories reserve to historical usage and write-off activities, and test the accuracy and completeness of the underlying data used in such determination. We also recalculated inventory reserve for the application of the reserve percentages to the inventory aging categories.

In addition, we evaluated the adequacy of disclosures of inventories. Please refer to Notes 5 and 6 to the Company’s consolidated financial statements.

Other Matter – Making Reference to the Audits of Component Auditors

We did not audit the financial statements of certain associates and joint ventures accounted for under the equity method. Those financial statements were audited by other auditors, whose reports thereon have been furnished to us, and our opinions expressed herein are based solely on the reports of other auditors. These associates and joint ventures under equity method amounted to NT$27,981 million and NT$27,670 million, representing 4.83% and 4.85% of consolidated total assets as of December 31, 2025 and 2024, respectively. The related shares of profit or loss from the associates and joint ventures under the equity method amounted to NT$1,796 million and NT$(92) million, representing 3.62% and (0.16)% of the consolidated income before tax for the years ended December 31, 2025 and 2024, respectively, and the related shares of other comprehensive income (loss) from the associates and joint ventures under the equity method amounted to NT$145 million and NT$318 million, representing 0.40% and 0.57% of the consolidated total comprehensive income for the years ended December 31, 2025 and 2024, respectively.

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Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards, International Accounting Standards, Interpretations developed by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee as endorsed and became effective by Financial Supervisory Commission of the Republic of China and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the ability to continue as a going concern of the Company, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including audit committee, are responsible for overseeing the financial reporting process of the Company.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

1.Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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2.Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of the Company.

3.Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4.Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability to continue as a going concern of the Company. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

5.Evaluate the overall presentation, structure and content of the consolidated financial statements, including the accompanying notes, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6.Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of 2025 consolidated financial statements and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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Other

We have audited and expressed an unqualified opinion including an Other Matter Paragraph on the parent company only financial statements of the Company as of and for the years ended December 31, 2025 and 2024.

/s/ Yang, Yu-Ni

/s/ Yu, Chien-Ju

Ernst & Young, Taiwan

February 25, 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 audit 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.

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English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)
				As of December 31,
Assets		Notes		2025			2024
Current assets
Cash and cash equivalents		4, 6(1)		$	110,660,052		$	105,000,226
Financial assets at fair value through profit or loss, current		4, 5, 6(2)			568,521			606,018
Financial assets at fair value through other comprehensive income, current		4, 5, 6(3)			4,630,441			5,893,377
Financial assets measured at amortized cost, current		4, 6(4)			12,506,177			3,739,224
Contract assets, current		4, 6(21)			705,398			625,713
Accounts receivable, net		4, 6(5)			30,772,159			32,723,426
Accounts receivable-related parties, net		4, 7			502,149			620,013
Other receivables		4, 7			2,457,085			1,651,494
Current tax assets		4			66,443			83,944
Inventories, net		4, 5, 6(6)			37,228,383			35,782,464
Prepayments					3,496,213			2,337,085
Other current assets		6(21)			1,190,237			614,900
Total current assets					204,783,258			189,677,884
Non-current assets
Financial assets at fair value through profit or loss, noncurrent		4, 5, 6(2)			17,585,395			17,850,914
Financial assets at fair value through other comprehensive income, noncurrent		4, 5, 6(3)			9,144,308			11,315,951
Investments accounted for under the equity method		4, 6(7), 7			48,642,917			43,320,605
Property, plant and equipment		4, 6(8), 8			271,395,296			279,059,037
Right-of-use assets		4, 6(9), 8			7,476,034			8,039,015
Intangible assets		4, 6(10), 7			4,742,876			4,154,315
Deferred tax assets		4, 6(26)			8,522,637			5,210,489
Prepayment for equipment					1,162,218			4,932,505
Refundable deposits		8			1,643,661			1,992,400
Other noncurrent assets-others		6(21)			3,897,409			4,647,562
Total non-current assets					374,212,751			380,522,793
Total assets				$	578,996,009		$	570,200,677
(continued)

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English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)
				As of December 31,
Liabilities and Equity		Notes		2025			2024
Current liabilities
Short-term loans		6(11), 6(28)		$	8,408,772		$	8,515,000
Financial liabilities at fair value through profit or loss, current		4, 6(12)			57,163			901,000
Contract liabilities, current		4, 6(21)			2,580,789			2,200,561
Accounts payable					9,169,828			7,633,427
Other payables		4, 6(20), 6(22), 7			24,447,427			24,103,882
Payables on equipment					11,680,298			10,522,489
Current tax liabilities		4			3,582,275			3,365,012
Lease liabilities, current		4, 6(9), 6(28)			624,825			636,357
Current portion of long-term liabilities		4, 6(13), 6(14), 6(28)			19,188,041			10,994,998
Other current liabilities		4, 6(16), 6(17), 6(18), 6(28)			7,858,719			6,387,463
Total current liabilities					87,598,137			75,260,189
Non-current liabilities
Contract liabilities, noncurrent		4, 6(21)			1,787,375			459,620
Bonds payable		4, 6(13), 6(28)			34,071,144			24,584,979
Long-term loans		6(14), 6(28)			11,300,910			30,948,500
Deferred tax liabilities		4, 6(26)			11,922,365			7,810,834
Lease liabilities, noncurrent		4, 6(9), 6(28)			5,376,021			5,782,659
Net defined benefit liabilities, noncurrent		4, 6(15)			866,219			1,432,249
Guarantee deposits		6(28)			39,805,928			41,953,360
Other noncurrent liabilities-others		4, 6(16), 6(18)			6,412,470			3,783,283
Total non-current liabilities					111,542,432			116,755,484
Total liabilities					199,140,569			192,015,673
Equity attributable to the parent company
Capital		4, 6(19)
Common stock					125,881,563			125,607,164
Additional paid-in capital		4, 6(19), 6(20)
Premiums					5,200,426			4,960,958
Treasury stock transactions					4,531,955			4,531,955
The differences between the fair value of the consideration paid or received from acquiring or             disposing subsidiaries and the carrying amounts of the subsidiaries					3,039,275			3,039,275
Recognition of changes in subsidiaries’ ownership					23,954			23,654
Share of changes in net assets of associates and joint ventures accounted for using equity method					612,905			328,679
Restricted stock for employees					1,977,084			1,877,097
Other					24,001			20,858
Retained earnings		6(19)
Legal reserve					41,466,099			36,727,862
Unappropriated earnings					191,416,874			190,120,643
Other components of equity		4, 6(20)
Exchange differences on translation of foreign operations					(4,726,963	)		696,785
Unrealized gains or losses on financial assets measured at fair value through other comprehensive income					12,443,737			11,985,495
Unearned employee compensation					(2,122,645	)		(1,992,034	)
Total equity attributable to the parent company					379,768,265			377,928,391
Non-controlling interests		6(19)			87,175			256,613
Total equity					379,855,440			378,185,004
Total liabilities and equity				$	578,996,009		$	570,200,677
The accompanying notes are an integral part of the consolidated financial statements.

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English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the years ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars, Except for Earnings per Share)
			For the years ended December 31,
	Notes		2025			2024
Operating revenues	4, 6(21), 7		$	237,553,199		$	232,302,584
Operating costs	4, 6(6), 6(10), 6(15), 6(20), 6(21), 6(22), 7			(168,646,700	)		(156,648,504	)
Gross profit				68,906,499			75,654,080
Operating expenses	4, 6(5), 6(10), 6(15), 6(20), 6(22), 7
Sales and marketing expenses				(2,433,447	)		(2,701,483	)
General and administrative expenses				(6,791,899	)		(7,117,416	)
Research and development expenses				(17,724,752	)		(15,616,039	)
Expected credit impairment gains				2,408			69,519
Subtotal				(26,947,690	)		(25,365,419	)
Net other operating income and expenses	4, 6(16), 6(23)			1,989,879			1,323,909
Operating income				43,948,688			51,612,570
Non-operating income and expenses
Interest income	4			2,278,551			3,670,218
Other income	4			2,457,203			1,253,376
Other gains and losses	4, 6(24)			730,183			(299,794	)
Finance costs	6(24)			(1,602,065	)		(1,756,100	)
Share of profit or loss of associates and joint ventures	4, 6(7)			2,418,230			410,611
Exchange gain, net	4			-			1,328,832
Exchange loss, net	4			(583,084	)		-
Subtotal				5,699,018			4,607,143
Income from continuing operations before income tax				49,647,706			56,219,713
Income tax expense	4, 6(26)			(8,112,958	)		(9,113,457	)
Net income				41,534,748			47,106,256
Other comprehensive income (loss)	6(25)
Items that will not be reclassified subsequently to profit or loss
Remeasurements of defined benefit pension plans	4, 6(15)			145,103			188,451
Unrealized gains or losses from equity instruments investments measured at         fair value through other comprehensive income	4			(3,423,919	)		(539,327	)
Share of other comprehensive income (loss) of associates and joint ventures         which will not be reclassified subsequently to profit or loss				3,800,459			(655,739	)
Income tax related to items that will not be reclassified subsequently	4, 6(26)			42,416			(35,707	)
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations				(5,848,451	)		8,902,745
Share of other comprehensive income (loss) of associates and joint ventures         which may be reclassified subsequently to profit or loss				(17,426	)		323,537
Income tax related to items that may be reclassified subsequently	4, 6(26)			442,107			117,024
Total other comprehensive income (loss)				(4,859,711	)		8,300,984
Total comprehensive income (loss)			$	36,675,037		$	55,407,240
Net income (loss) attributable to:
Shareholders of the parent			$	41,716,249		$	47,210,930
Non-controlling interests				(181,501	)		(104,674	)
			$	41,534,748		$	47,106,256
Comprehensive income (loss) attributable to:
Shareholders of the parent			$	36,856,560		$	55,511,838
Non-controlling interests				(181,523	)		(104,598	)
			$	36,675,037		$	55,407,240
Earnings per share (NTD)	4, 6(27)
Earnings per share-basic			$	3.34		$	3.80
Earnings per share-diluted			$	3.31		$	3.74
The accompanying notes are an integral part of the consolidated financial statements.

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English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the years ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)
				Equity Attributable to the Parent Company
				Capital						Retained Earnings									Other Components of Equity
		Notes		Common Stock			Additional  Paid-in Capital			Legal Reserve			Special Reserve			Unappropriated Earnings			Exchange Differences on Translation of Foreign Operations			Unrealized Gains or Losses on Financial Assets Measured at Fair Value through Other Comprehensive Income			Unearned Employee Compensation			Total			Non- Controlling Interests			Total Equity
Balance as of January 1, 2024		6(19)		$	125,298,222		$	14,324,773		$	30,472,125		$	2,734,058		$	183,847,052		$	(8,646,445	)	$	13,199,259		$	(1,991,331	)	$	359,237,713		$	340,859		$	359,578,572
Appropriation and distribution of 2023 retained earnings		6(19)
Legal reserve					-			-			6,255,737			-			(6,255,737	)		-			-			-			-			-			-
Special reserve reversed					-			-			-			(2,734,058	)		2,734,058			-			-			-			-			-			-
Cash dividends					-			-			-			-			(37,587,102	)		-			-			-			(37,587,102	)		-			(37,587,102	)
Net income (loss) for the year ended December 31, 2024		6(19)			-			-			-			-			47,210,930			-			-			-			47,210,930			(104,674	)		47,106,256
Other comprehensive income (loss) for the year ended December 31, 2024		6(19), 6(25)			-			-			-			-			171,373			9,343,230			(1,213,695	)		-			8,300,908			76			8,300,984
Total comprehensive income (loss)					-			-			-			-			47,382,303			9,343,230			(1,213,695	)		-			55,511,838			(104,598	)		55,407,240
Share-based payment transaction		4, 6(19), 6(20)			308,942			466,981			-			-			-			-			-			(703	)		775,220			1,913			777,133
Share of changes in net assets of associates and joint ventures accounted for         using equity method					-			(30,169	)		-			-			69			-			(69	)		-			(30,169	)		-			(30,169	)
Changes in subsidiaries’ ownership		4, 6(19)			-			19,429			-			-			-			-			-			-			19,429			(7,910	)		11,519
Non-Controlling Interests		6(19)			-			-			-			-			-			-			-			-			-			26,349			26,349
Others					-			1,462			-			-			-			-			-			-			1,462			-			1,462
Balance as of December 31, 2024		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
Appropriation and distribution of 2024 retained earnings		6(19)
Legal reserve					-			-			4,738,237			-			(4,738,237	)		-			-			-			-			-			-
Cash dividends					-			-			-			-			(35,787,598	)		-			-			-			(35,787,598	)		-			(35,787,598	)
Net income (loss) for the year ended December 31, 2025		6(19)			-			-			-			-			41,716,249			-			-			-			41,716,249			(181,501	)		41,534,748
Other comprehensive income (loss) for the year ended December 31, 2025		6(19), 6(25)			-			-			-			-			126,404			(5,423,748	)		437,655			-			(4,859,689	)		(22	)		(4,859,711	)
Total comprehensive income (loss)					-			-			-			-			41,842,653			(5,423,748	)		437,655			-			36,856,560			(181,523	)		36,675,037
Share-based payment transaction		4, 6(19), 6(20)			274,399			339,245			-			-			-			-			-			(130,611	)		483,033			1,428			484,461
Share of changes in net assets of associates and joint ventures accounted for         using equity method					-			284,225			-			-			(20,587	)		-			20,587			-			284,225			-			284,225
Changes in subsidiaries’ ownership		4, 6(19)			-			18,172			-			-			-			-			-			-			18,172			(11,826	)		6,346
Non-Controlling Interests		6(19)			-			-			-			-			-			-			-			-			-			22,483			22,483
Others					-			(14,518	)		-			-			-			-			-			-			(14,518	)		-			(14,518	)
Balance as of December 31, 2025		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
The accompanying notes are an integral part of the consolidated financial statements.

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English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)
		For the years ended December 31,
		2025			2024
Cash flows from operating activities:
Net income before tax		$	49,647,706		$	56,219,713
Adjustments to reconcile net income before tax to net cash provided by operating activities:
Depreciation			56,427,377			45,472,102
Amortization			2,831,540			2,695,564
Expected credit impairment gains			(2,408	)		(69,519	)
Net loss (gain) of financial assets and liabilities at fair value through profit or loss			(707,129	)		320,956
Interest expense			1,529,063			1,678,702
Interest income			(2,278,551	)		(3,670,218	)
Dividend income			(2,412,092	)		(1,202,714	)
Share-based payment			491,280			788,849
Share of profit of associates and joint ventures			(2,418,230	)		(410,611	)
Gain on disposal of property, plant and equipment			(99,178	)		(72,402	)
Gain on disposal of subsidiary			-			(352	)
Gain on disposal of investments accounted for under the equity method			(23,060	)		(817	)
Exchange loss (gain) on financial assets and liabilities			(991,422	)		1,331,907
Gain on lease modification			(5,810	)		(8,599	)
Amortization of deferred government grants			(1,520,370	)		(841,091	)
Income and expense adjustments			50,821,010			46,011,757
Changes in operating assets and liabilities:
Financial assets and liabilities at fair value through profit or loss			(64,981	)		(543,068	)
Contract assets			(77,325	)		110,439
Accounts receivable			1,830,841			(3,269,237	)
Other receivables			(232,703	)		662,553
Inventories			(1,825,652	)		365,305
Prepayments			(427,168	)		223,545
Other current assets			26,701			(31,289	)
Contract fulfillment costs			(600,892	)		303,311
Contract liabilities			1,751,842			(599,528	)
Accounts payable			1,612,124			14,590
Other payables			70,370			(1,173,347	)
Other current liabilities			469,989			1,056,250
Net defined benefit liabilities			(420,927	)		(584,384	)
Other noncurrent liabilities-others			(3,086	)		(4,947	)
Cash generated from operations			102,577,849			98,761,663
Interest received			2,276,904			4,151,879
Dividend received			2,387,240			2,274,607
Interest paid			(1,017,112	)		(1,339,730	)
Income tax paid			(6,360,694	)		(9,976,377	)
Net cash provided by operating activities			99,864,187			93,872,042
(continued)

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English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)
		For the years ended December 31,
		2025			2024
Cash flows from investing activities:
Acquisition of financial assets at fair value through profit or loss		$	(625,538	)	$	(1,894,858	)
Proceeds from disposal of financial assets at fair value through profit or loss			633,226			989,051
Proceeds from capital reduction of financial assets at fair value through other comprehensive        income			160,659			-
Acquisition of financial assets at fair value through other comprehensive income			(150,000	)		(64,694	)
Acquisition of financial assets measured at amortized cost			(14,975,561	)		(4,167,692	)
Proceeds from redemption of financial assets measured at amortized cost			6,712,587			6,702,256
Acquisition of investments accounted for under the equity method			-			(533,973	)
Increase in prepayment for investments			-			(7,135	)
Proceeds from capital reduction of investments accounted for under the equity method			574,997			1,601,874
Acquisition of subsidiary (net of cash acquired)			(19,441	)		-
Disposal of subsidiary			-			(196,009	)
Acquisition of property, plant and equipment			(47,744,896	)		(88,543,595	)
Proceeds from disposal of property, plant and equipment			128,837			120,939
Increase in refundable deposits			(243,393	)		(769,153	)
Decrease in refundable deposits			317,322			1,519,269
Acquisition of intangible assets			(2,988,751	)		(2,799,420	)
Government grants related to assets acquisition			5,097,841			2,131,264
Increase in other noncurrent assets-others			(32,357	)		(29,227	)
Decrease in other noncurrent assets-others			36			-
Net cash used in investing activities			(53,154,432	)		(85,941,103	)
Cash flows from financing activities:
Increase in short-term loans			18,823,523			30,683,900
Decrease in short-term loans			(18,930,054	)		(35,698,900	)
Proceeds from bonds issued			20,000,000			-
Bonds issuance costs			(15,880	)		(465	)
Redemption of bonds			-			(8,500,000	)
Proceeds from long-term loans			25,141,820			36,286,030
Repayments of long-term loans			(46,831,206	)		(23,107,596	)
Increase in guarantee deposits			2,827,304			68,041
Decrease in guarantee deposits			(3,607,656	)		(640,362	)
Cash payments for the principal portion of the lease liability			(849,810	)		(731,138	)
Cash dividends			(35,784,383	)		(37,585,606	)
Change in non-controlling interests			22,483			26,349
Net cash used in financing activities			(39,203,859	)		(39,199,747	)
Effect of exchange rate changes on cash and cash equivalents			(1,846,070	)		3,715,419
Net increase (decrease) in cash and cash equivalents			5,659,826			(27,553,389	)
Cash and cash equivalents at beginning of year			105,000,226			132,553,615
Cash and cash equivalents at end of year		$	110,660,052		$	105,000,226
The accompanying notes are an integral part of the consolidated financial statements.

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UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Years Ended December 31, 2025 and 2024

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

1.HISTORY AND ORGANIZATION

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

The address of its registered office and principal place of business is No. 3, Li-Hsin 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.

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

The consolidated financial statements of the Company were authorized for issue in accordance with a resolution of the Board of Directors’ meeting on February 25, 2026.

3.NEWLY ISSUED OR REVISED STANDARDS AND INTERPRETATIONS

(1)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, 2025. There are no newly adopted or revised standards and interpretations that have material impact on the Company’s financial position and performance.

(2)Standards issued by International Accounting Standards Board (“IASB”) which are endorsed by FSC, but not yet adopted by the Company are listed below:

New, Revised or Amended Standards and Interpretations		Effective Date issued by IASB
IFRS 17 “Insurance Contracts”		January 1, 2023
Amendments to IFRS 9 “Financial Instruments” and IFRS 7 “Financial Instruments: Disclosures” - Amendments to the Classification and Measurement of Financial Instruments		January 1, 2026
Annual Improvements to IFRS Accounting Standards - Volume 11		January 1, 2026
Amendments to IFRS 9 “Financial Instruments” and IFRS 7 “Financial Instruments: Disclosures” - Contracts Referencing Nature-dependent Electricity		January 1, 2026

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a.IFRS 17 “Insurance Contracts” (IFRS 17)

IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects (including recognition, measurement, presentation and disclosure requirements). The core of IFRS 17 is the General (building block) Model, under this model, on initial recognition, an entity shall measure a group of insurance contracts at the total of the fulfilment cash flows and the contractual service margin. The carrying amount of a group of insurance contracts at the end of each reporting period shall be the sum of the liability for remaining coverage and the liability for incurred claims.

Other than the General Model, the standard also provides a specific adaptation for contracts with direct participation features (the Variable Fee Approach) and a simplified approach (Premium Allocation Approach) mainly for short-duration contracts.

IFRS 17 was issued in May 2017 and it was amended in 2020 and 2021. The amendments include deferral of the date of initial application of IFRS 17 by two years to annual beginning on or after January 1, 2023 (from the original effective date of January 1, 2021), provide additional transition reliefs, simplify some requirements to reduce the costs of applying IFRS 17 and revise some requirements to make the results easier to explain. IFRS 17 replaces an interim Standard - IFRS 4 Insurance Contracts - from annual reporting periods beginning on or after January 1, 2023.

b.Amendments to IFRS 9 “Financial Instruments” and IFRS 7 “Financial Instruments: Disclosures” - Amendments to the Classification and Measurement of Financial Instruments

The amendments include:

i.Clarify that a financial liability is derecognised on the settlement date and describe the accounting treatment for settlement of financial liabilities using an electronic payment system before the settlement date.

ii.Clarify how to assess the contractual cash flow characteristics of financial assets that include environmental, social and governance (ESG)-linked features and other similar contingent features.

iii.Clarify the treatment of non-recourse assets and contractually linked instruments.

iv.Require additional disclosures in IFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESG-linked), and equity instruments classified at fair value through other comprehensive income.

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c.Amendments to IFRS 9 “Financial Instruments” and IFRS 7 “Financial Instruments: Disclosures” - Contracts Referencing Nature-dependent Electricity

The amendments include:

i.Clarify the application of the “own-use” requirements.

ii.Permit hedge accounting if these contracts are used as hedging instruments.

iii.Add new disclosure requirements to enable investors to understand the effect of these contracts on a company’s financial performance and cash flows.

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

(3)Standards issued by 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.

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

a.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.

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

b.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:

i.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.

ii.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.

iii.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.

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4.SUMMARY OF MATERIAL ACCOUNTING POLICIES

(1)Statement of Compliance

The Company’s consolidated financial statements were prepared in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers (Regulations), IFRSs, IASs, IFRIC and SIC, which are endorsed by FSC (TIFRSs).

(2)Basis of Preparation

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

(3)General Description of Reporting Entity

a.Principles of consolidation

Subsidiaries are fully consolidated from the date of acquisition (the date on which the Company obtains control), and continue to be consolidated until the date that such control ceases. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intra-group balances, transactions, unrealized gains and losses and dividends resulting from intra-group transactions are eliminated in full.

A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction. Total comprehensive income of subsidiaries is attributed to the shareholders of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

If the Company loses control over a subsidiary, the Company derecognizes the assets and liabilities of the subsidiary, as well as any non-controlling interests previously recorded by the Company. A gain or loss is recognized in profit or loss and is calculated as the difference between: (a) the aggregate of the fair value of consideration received and the fair value of any retained interest at the date when control is lost; and (b) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. Any gain or loss previously recognized in the other comprehensive income would be reclassified to profit or loss or transferred directly to retained earnings if required by other TIFRSs. The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the cost on initial recognition of an investment.

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b.The consolidated entities are as follows:

						Percentage of ownership (%) As of December 31,
Investor		Subsidiary		Business nature		2025			2024
UMC		UMC GROUP (USA)		IC Sales			100.00		100.00
UMC		UNITED MICROELECTRONICS (EUROPE) B.V.		Marketing support activities			100.00		100.00
UMC		UMC CAPITAL CORP.		Investment holding			100.00		100.00
UMC		GREEN EARTH LIMITED (GE)		Investment holding			100.00		100.00
UMC		TLC CAPITAL CO., LTD. (TLC)		Venture capital			100.00		100.00
UMC		UMC INVESTMENT (SAMOA) LIMITED		Investment holding			100.00		100.00
UMC		FORTUNE VENTURE CAPITAL CORP. (FORTUNE)		Consulting and planning for venture capital			100.00		100.00
UMC		UMC KOREA CO., LTD.		Marketing support activities			100.00		100.00
UMC		OMNI GLOBAL LIMITED (OMNI)		Investment holding			100.00		100.00
UMC		SINO PARAGON LIMITED		Investment holding			100.00		100.00
UMC		BEST ELITE INTERNATIONAL LIMITED (BE)		Investment holding			100.00		100.00
UMC		UNITED SEMICONDUCTOR JAPAN CO., LTD.		Sales and manufacturing of integrated circuits			100.00		100.00
UMC and FORTUNE		WAVETEK MICROELECTRONICS CORPORATION (WAVETEK)		Sales and manufacturing of integrated circuits			79.12		79.54
TLC		SOARING CAPITAL CORP.		Investment holding			100.00		100.00
SOARING CAPITAL CORP.		UNITRUTH ADVISOR (SHANGHAI) CO., LTD.		Investment holding and advisory			100.00		100.00
GE		UNITED MICROCHIP CORPORATION		Investment holding			100.00		100.00
FORTUNE		TERA ENERGY DEVELOPMENT CO., LTD. (TERA ENERGY)		Energy technical services			92.64		94.93
TERA ENERGY (Note)		EVERRICH ENERGY INVESTMENT (HK) LIMITED (EVERRICH-HK)		Investment holding			100.00		100.00

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						Percentage of ownership (%) As of December 31,
Investor		Subsidiary		Business nature		2025			2024
EVERRICH-HK		EVERRICH (JINING) NEW ENERGY TECHNOLOGY CO., LTD. (formerly EVERRICH (SHANDONG) ENERGY CO., LTD.)		Solar engineering integrated design services			100.00		100.00
OMNI		UNITED MICROTECHNOLOGY CORPORATION (CALIFORNIA)		Research and development			100.00		100.00
OMNI		ECP VITA PTE. LTD.		Insurance			100.00		100.00
WAVETEK		WAVETEK MICROELECTRONICS CORPORATION (USA)		Marketing service			100.00		100.00
BE		INFOSHINE TECHNOLOGY LIMITED (INFOSHINE)		Investment holding			100.00		100.00
INFOSHINE		OAKWOOD ASSOCIATES LIMITED (OAKWOOD)		Investment holding			100.00		100.00
OAKWOOD		HEJIAN TECHNOLOGY (SUZHOU) CO., LTD. (HEJIAN)		Sales and manufacturing of integrated circuits			100.00		99.9985
UNITED MICROCHIP CORPORATION and HEJIAN		UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.		Sales and manufacturing of integrated circuits			100.00		100.00

Note: In August 2025, the Board of Directors of TERA ENERGY resolved to merge with PURIUMFIL INC., with TERA ENERGY as the surviving company. The effective date of merger is October 3, 2025.

(4)Business Combinations and Goodwill

Business combinations are accounted for using the acquisition method. The consideration transferred, the identifiable assets acquired and liabilities assumed are measured at the acquisition date fair value. For the components of non-controlling interests in the acquiree that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation, the acquirer measures at either fair value or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred and are classified under administrative expenses.

20

When the Company acquires a business, it assesses the assets acquired and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date.

If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s previously held equity interest in the acquiree is remeasured at fair value as at the acquisition date through profit or loss.

Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability, will be recognized in accordance with IFRS 9, either in profit or loss or other comprehensive income. If the contingent consideration is classified as equity, it should not be remeasured until it is finally settled within equity.

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred, the acquisition date fair value of the acquirer’s previously held equity interest in the acquiree and the amount recognized for non-controlling interest over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred and non-controlling interests, the difference is recognized as a gain on bargain purchase.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each cash-generating unit (“CGU”) that is expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. Each unit or groups of units to which the goodwill is so allocated represents the lowest level within the Company at which the goodwill is monitored for internal management purposes and cannot be larger than an operating segment before aggregation.

Where goodwill forms part of a CGU and part of the operation within that unit is disposed, the goodwill associated with the operation disposed is included in the carrying amount of the operation. Goodwill disposed in this circumstance is measured based on the relative values of the operation disposed and the portion of the CGU retained.

(5)Foreign Currency Transactions

The Company’s consolidated financial statements are presented in New Taiwan Dollars (NTD), which is also the parent company’s functional currency. Each entity in the Company determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency.

21

Transactions in foreign currencies are initially recorded by the Company’s entities at their respective functional currency rates prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated into functional currency at the closing rates of exchange at the reporting date. Non-monetary items measured at fair value in foreign currencies are translated using the exchange rates at the date when the fair value is determined. Non-monetary items that are measured at historical cost in foreign currencies are translated using the exchange rates as at the dates of the initial transactions.

All exchange differences arising on the settlement of monetary items or on translating monetary items are taken to profit or loss in the period in which they arise except for the following:

a.Exchange differences arising from foreign currency borrowings for an acquisition of a qualifying asset to the extent that they are regarded as an adjustment to interest costs are included in the borrowing costs that are eligible for capitalization.

b.Foreign currency derivatives within the scope of IFRS 9 are accounted for based on the accounting policy for financial instruments.

c.Exchange differences arising on a monetary item that is part of a reporting entity’s net investment in a foreign operation are recognized initially in other comprehensive income and reclassified from equity to profit or loss upon disposal of such investment.

When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income. When a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

(6)Translation of Foreign Currency Financial Statements

The assets and liabilities of foreign operations are translated into NTD at the closing rate of exchange prevailing at the reporting date and their income and expenses are translated at an average exchange rate for the period. The exchange differences arising on the translation are recognized in other comprehensive income. On disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognized in other comprehensive income and accumulated in the separate component of equity, is reclassified from equity to profit or loss when the gain or loss on disposal is recognized.

22

On partial disposal of a subsidiary that includes a foreign operation that does not result in a loss of control, the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is re-attributed to the non-controlling interests in that foreign operation. On partial disposal of an associate or a joint venture that includes a foreign operation that does not result in a loss of significant influence or joint control, only the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is reclassified to profit or loss.

Any goodwill and any fair value adjustments to the carrying amounts of assets and liabilities arising from the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and expressed in its functional currency.

(7)Current and Non-Current Distinction

An asset is classified as current when:

a.the Company expects to realize the asset, or intends to sell or consume it, in its normal operating cycle;

b.the Company holds the asset primarily for the purpose of trading;

c.the Company expects to realize the asset within twelve months after the reporting period; or

d.the asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when:

a.the Company expects to settle the liability in normal operating cycle;

b.the Company holds the liability primarily for the purpose of trading;

c.the liability is due to be settled within twelve months after the reporting period; or

d.the Company does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

(8)Cash Equivalents

Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and with maturity dates that do not present significant risks of changes in value resulting from changes in interest rates, including time deposits with original maturities of three months or less and repurchase agreements collateralized by government bonds and corporate bonds.

23

(9)Financial Instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.

The Company determines the classification of its financial assets at initial recognition. In accordance with IFRS 9 and the Regulations, financial assets of the Company are classified as financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income, and financial assets measured at amortized cost.

Purchase or sale of financial assets and liabilities are recognized using trade date accounting. All financial assets are recognized initially at fair value plus, in the case of investments not at fair value through profit or loss, directly attributable costs. Financial assets at fair value through profit or loss are initially recognized at fair value, and transaction costs are expensed in the statement of comprehensive income.

Financial Assets

a.Classification and subsequent measurement

i.Financial assets at fair value through profit or loss

Financial assets that are not measured at amortized cost or at fair value through other comprehensive income are measured at fair value, with changes in fair value and dividends recognized in profit or loss.

ii.Financial assets at fair value through other comprehensive income

At initial recognition, the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of an investment in an equity instrument that is not held for trading. When there is a disposal of such equity instrument, accumulated amounts presented in other comprehensive income are not subsequently transferred to profit or loss but are transferred directly to the retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Company’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

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iii.Financial assets measured at amortized cost

The financial assets are measured at amortized cost (including cash and cash equivalent, notes, accounts and other receivables and other financial assets) if both of the following conditions are met.

(i)the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

(ii)the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition for financial assets measured at amortized cost, interest income, measured by the effective interest method amortization process, and impairment losses are recognized during circulation period. Gains and losses are recognized in profit or loss when the financial assets are derecognized.

b.Derecognition of financial assets

A financial asset is derecognized when:

i.the contractual rights to receive cash flows from the asset have expired;

ii.the Company has transferred assets and substantially all the risks and rewards of the asset have been transferred; or

iii.the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the consideration received or to be received including any cumulative gain or loss that had been recognized in other comprehensive income is recognized in profit or loss (for debt instruments) or directly in retained earnings (for equity instruments).

If the transferred asset is part of a larger financial asset and the part transferred qualifies for derecognition in its entirety, the Company allocates the previous carrying amount of the larger financial asset between the part that continues to be recognized and the part that is derecognized, based on the relative fair values of those parts on the date of the transfer. Any cumulative gain or loss that had been recognized in other comprehensive income is allocated between the part that continues to be recognized and the part that is derecognized, based on the relative fair values of those parts. The difference between the carrying amount allocated to the part derecognized and the sum of the consideration received for the part derecognized and any cumulative gain or loss allocated that had been recognized in other comprehensive income, is recognized in profit or loss or directly in retained earnings.

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c.Impairment policy

The Company measures, at each reporting date, an allowance for expected credit losses (ECLs) for debt instrument investments measured at fair value through other comprehensive income and financial assets measured at amortized cost by assessing reasonable and supportable information including forward-looking information. Where the credit risk on a financial asset has not increased significantly since initial recognition, the loss allowance is measured at an amount equal to 12-month ECLs. Where the credit risk on a financial asset has increased significantly since initial recognition, the loss allowance is measured at an amount equal to the lifetime ECLs.

For notes, accounts receivable and contract assets, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. ECLs are measured based on the Company’s historical credit loss experience and customers’ current financial condition, adjusted for forward-looking factors, such as customers’ economic environment.

Financial Liabilities

a.Classification and subsequent measurement

The Company classifies the instrument issued as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability and an equity instrument.

i.Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Excluding changes in own credit risk, gains or losses on the subsequent measurement including interest paid are recognized in profit or loss.

ii.Financial liabilities measured at amortized cost

Financial liabilities measured at amortized cost include interest bearing loans and borrowings that are subsequently measured using the effective interest method after initial recognition. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the effective interest method amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or transaction costs.

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b.Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified (whether or not attributable to the financial difficulty of the debtor), such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

(10)Inventories

Inventories are accounted for on a perpetual basis. Raw materials are stated at actual purchase costs, while the work in process and finished goods are stated at standard costs and subsequently adjusted to weighted-average costs at the end of each month. The cost of work in progress and finished goods comprises raw materials, direct labor, other direct costs and related production overheads. Allocation of fixed production overheads to the costs of conversion is based on the normal capacity of the production facilities. Cost associated with underutilized capacity is expensed as incurred. Inventories are valued at the lower of cost and net realizable value item by item. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

(11)Investments Accounted For Under the Equity Method

The Company’s investments in associates and joint ventures are accounted for using the equity method other than those that meet the criteria to be classified as non-current assets held for sale.

An associate is an entity over which the Company has significant influence and that is neither a subsidiary nor a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of an entity, but is not control or joint control over those policies.

A joint venture is a type of joint arrangement whereby the Company that has joint control of the arrangement has rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement where no single party controls the arrangement on its own, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

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Any difference between the acquisition cost and the Company’s share of the net fair value of the identifiable assets and liabilities of associates and joint ventures is accounted for as follows:

a.Any excess of the acquisition cost over the Company’s share of the net fair value of the identifiable assets and liabilities of an associate or a joint venture at the date of acquisition is recognized as goodwill and is included in the carrying amount of the investment. Amortization of goodwill is not permitted.

b.Any excess of the Company’s share of the net fair value of the identifiable assets and liabilities of an associate or a joint venture over the acquisition cost, after reassessing the fair value, is recognized as a gain in profit or loss on the acquisition date.

Under the equity method, the investments in associates and joint ventures are carried on the balance sheet at cost plus post acquisition changes in the Company’s share of profit or loss and other comprehensive income of associates and joint ventures. The Company’s share of changes in associates’ and joint ventures’ profit or loss and other comprehensive income are recognized directly in profit or loss and other comprehensive income, respectively. Distributions received from an associate or a joint venture reduce the carrying amount of the investment. Any unrealized gains and losses resulting from transactions between the Company and the associate or the joint venture are eliminated to the extent of the Company’s interest in the associate or the joint venture.

Financial statements of associates and joint ventures are prepared for the same reporting period as the Company. Where necessary, adjustments are made to bring the accounting policies in line with those of the Company.

Upon an associate’s issuance of new shares, if the Company takes up more shares than its original proportionate holding while maintaining its significant influence over that associate, such increase would be accounted for as an acquisition of an additional equity interest in the associate. Upon an associate’s issuance of new shares, if the Company does not take up proportionate shares resulting in decrease in its stockholding percentage while maintaining its significant influence over that associate, a proportionate share of the gain or loss previously recognized in other comprehensive income is reclassified to profit and loss or other appropriate account(s). Any remaining difference will be charged to additional paid-in capital. When a change in equity of an associate does not result from its profit or loss or other comprehensive income, and such changes do not affect the Company’s ownership percentage, the Company recognizes its proportionate share of all related changes in equity. Accordingly, upon disposal of the associate, the Company reclassifies the aforementioned additional paid-in capital to profit or loss on a pro rata basis.

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The Company ceases to use the equity method upon loss of significant influence over an associate. Any difference between the carrying amount of the investment in an associate upon loss of significant influence and the fair value of the retained investment plus proceeds from disposal will be recognized in profit or loss. If an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the Company continues to apply the equity method and does not remeasure the retained interest.

The Company determines at each reporting date whether there is any objective evidence that the investments in associates and joint ventures are impaired. An impairment loss, being the difference between the recoverable amount of the associate or joint venture and its carrying amount, is recognized in profit or loss in the statement of comprehensive income and forms part of the carrying amount of the investments.

(12)Property, Plant and Equipment

Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost of an item of property, plant and equipment comprises the acquisition cost, the costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management, and the initial estimate of costs for dismantling, removing the item and restoring the site on which it is located. Significant renewals, improvements and major inspections meeting the recognition criteria are treated as capital expenditures, and the carrying amounts of those replaced parts are derecognized. Maintenance and repairs are recognized in expenses as incurred. Any gain or loss arising from derecognition of the assets is recognized in other operating income and expenses.

Depreciation is calculated on a straight-line basis over the estimated useful lives. A significant part of an item of property, plant and equipment which has a different useful life from the remainder of the item is depreciated separately.

The depreciation methods, useful lives and residual values for the assets are reviewed at each fiscal year end, and the changes from the previous estimation are recorded as changes in accounting estimates.

Except for land, which is not depreciated, the depreciation of the assets is calculated mainly over the following estimated useful lives: buildings - 20 to 56 years; machinery and equipment - 6 years; transportation equipment - 6 years; furniture and fixtures - 6 years; leasehold improvement - the shorter of lease terms or useful lives.

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(13)Lease

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange of consideration, and to obtain substantially all economic benefits from use of the identified asset. The Company accounts for a lease contract as a single lease and separates the lease and non-lease components included in the contract.

The Company as a lessor

The Company recognizes lease payments from operating leases as rental income on a straight-line basis over the term of the lease.

The Company as a lessee

At the commencement date of a lease, a lessee is required to recognize right-of-use assets and lease liabilities, except for short-term leases and low-value asset leases.

a.At the commencement date, lease liabilities should be recognized and measured at the present value of the lease payments that have not been paid at that date, using the Company’s incremental borrowing rate. The payments comprise:

i.fixed payments less any lease incentives receivable;

ii.variable lease payments that depend on an index or rate;

iii.amounts expected to be payable by the Company under residual value guarantees;

iv.the exercise price of a purchase option if the Company is reasonably certain to exercise; and

v.payments for terminating the lease unless it is reasonably certain that early termination will not occur.

Lease liabilities are measured in subsequent periods using the effective interest method, and the interest expenses are recognized over the lease terms. In addition, the carrying amount of lease liabilities is remeasured if there is a modification which is not accounted as a separate lease, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

b.At the commencement date, the right-of-use assets should be measured at cost, which comprise of:

i.the amount of the initial measurement of the lease liabilities;

ii.any lease payments made at or before the commencement date; and

iii.any initial direct costs incurred.

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Subsequent to initial recognition, the right-of-use assets are measured using cost model. Right-of-use assets measured under the cost model are depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use assets or the end of the lease terms. Any remeasurement of the lease liabilities results in a corresponding adjustment of the right-of-use assets.

The Company presents right-of-use assets and lease liabilities on the balance sheets, and depreciation expenses and interest expenses are separately presented in the statements of comprehensive income. The Company recognizes the lease payments associated with short-term leases and low-value asset leases as expenses on a straight-line basis over the lease terms.

(14)Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses, if any. Internally generated intangible assets which fail to meet the recognition criteria are not capitalized and the expenditures are reflected in profit or loss in the period incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite useful lives are amortized over the useful lives and assessed for impairment whenever there is an indication that the intangible assets may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each fiscal year. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and is treated as changes in accounting estimates.

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the CGU level. The assessment of indefinite useful life is reviewed annually to determine whether the indefinite useful life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset are recognized in other operating income and expenses.

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Accounting policies of the Company’s intangible assets are summarized as follows:

a.Goodwill arising from business combinations is not amortized, and is tested for impairment annually or more frequently if events or changes in circumstances suggest that the carrying amount may not be recoverable. If an event occurs or circumstances change which indicates that the goodwill is impaired, an impairment loss is recognized. Goodwill impairment losses cannot be reversed once recognized.

b.Software is amortized over the contract term or estimated useful life (3 years) on a straight-line basis.

c.Patent and technology license fee: Upon signing of contract and obtaining the right to intellectual property, any portion attributable to non-cancellable and mutually agreed future fixed license fees for patent and technology is discounted, and recognized as an intangible asset and related liability. The cost of the intangible asset is not revalued once determined on initial recognition, and is amortized over the shorter of the contract term or estimated useful life (5 - 10 years) on a straight-line basis. Interest expenses from the related liability are recognized and calculated based on the effective interest method. Based on the timing of payments, the liability is classified as current and non-current.

d.Others are mainly the intellectual property license fees, amortized over the shorter of the contract term or estimated useful life (3 years) of the related technology on a straight-line basis.

(15)Impairment of Non-Financial Assets

The Company assesses at each reporting date whether there is an indication that an asset in the scope of IAS 36 “Impairment of Assets” may be impaired. If any indication exists, the Company completes impairment testing for the CGU to which the individual assets belong. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. The recoverable amount of an individual asset or a CGU is the higher of its fair value less costs of disposal and its value in use. If circumstances indicate that previously recognized impairment losses may no longer exist or may have decreased at each reporting date, the Company re-assesses the asset’s or CGU’s recoverable amount. A previously recognized impairment loss is reversed only if there has been an increase in the estimated service potential of an asset which in turn increases the recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation or amortization, had no impairment loss been recognized for the asset in prior years.

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A CGU, or group of CGUs, to which goodwill has been allocated is tested for impairment annually at the same time every year, irrespective of whether there is any indication of impairment. Where the carrying amount of a CGU (including the carrying amount of goodwill) exceeds its recoverable amount, the CGU is considered impaired. If an impairment loss is to be recognized, it is first allocated to reduce the carrying amount of any goodwill allocated to the CGU (group of units), then to the other assets of the unit (group of units) pro rata on the basis of the carrying amount of each asset in the unit (group of units). Impairment losses relating to goodwill cannot be reversed in future periods.

The recognition or reversal of impairment losses is classified as other operating income and expenses.

(16)Bonds

Exchangeable bonds

In accordance with IFRS 9, if the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host, the derivative financial instruments embedded in exchangeable bonds would be separated from the host and accounted for as financial assets or liabilities at fair value through profit or loss.

UMC has issued exchangeable bonds where the bondholders may exchange the bonds into ordinary shares of certain public entities which UMC holds as financial assets (“reference shares”). When exchangeable bondholders exercise their right to exchange their bonds for reference shares, the carrying amount of the bonds and the related assets or liabilities accounts will be derecognized, and the difference will be recognized in profit or loss.

Both the host and embedded derivative financial instrument in exchangeable bonds are classified as current liabilities as the bondholders have the right to demand settlement by exercising the exchange option of the bonds within 12 months.

(17)Post-Employment Benefits

Under defined contribution pension plans, the contribution payable to the plan in exchange for the service rendered by an employee during a period shall be recognized as an expense. The contribution payable, after deducting any amount already paid, is recognized as a liability.

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Under defined benefit pension plans, the net defined benefit liability (asset) shall be recognized as the amount of the present value of the defined benefit obligation, deducting the fair value of any plan assets and adjusting for any effect of the asset ceiling. Service cost and net interest on the net defined benefit liability (asset) are recognized as expenses in the period of service. Remeasurement of the net defined benefit liability (asset), which comprises actuarial gains and losses, the return on plan assets and any change in the effect of the asset ceiling, excluding any amounts included in net interest, is recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and shall not be reclassified to profit or loss in a subsequent period.

(18)Government Grants

In accordance with IAS 20 “Accounting for Government Grants and Disclosure of Government Assistance”, the Company recognizes the government grants when there is reasonable assurance that such grants will be received and the conditions attaching to them will be complied with.

An asset related government grant is recorded as deferred income and recognized in profit or loss on a straight-line basis over the useful lives of the assets. An expense related government grant is recognized in profit or loss on a systematic basis over the periods in which the Company recognizes as expenses the related costs for which the grant is intended to compensate. A government grant that compensates for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related costs is recognized in profit or loss when it becomes receivable.

(19)Provision

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Company expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset when, and only when it is virtually certain that reimbursement will be received. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

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Decommissioning Liabilities

The amount of the decommissioning liability, arising from dismantling, removing the items of property, plant and equipment and restoring the site on which they are located, are provided at the present value of expected costs to settle the obligation using estimated cash flows, while the decommissioning costs are recognized as part of the cost of the particular items. The discount rate shall be a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the decommissioning liability. The periodic unwinding of the discount shall be recognized in profit or loss as a finance cost as it occurs. The estimated future costs of decommissioning are reviewed at the end of each reporting period and adjusted as appropriate. Changes in the estimated future costs or in the discount rate applied are added to or deducted from the cost of the items of property, plant and equipment.

Onerous contracts

An onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The present obligation under the onerous contract shall be recognized and measured as a provision. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfill it. The aforementioned cost of fulfilling a contract comprises the costs that relate directly to the contract, which includes the incremental costs of fulfilling that contract and the allocation of other costs that relate directly to fulfilling contracts.

(20)Treasury Stock

UMC’s own equity instruments repurchased (treasury stocks) are recognized at repurchase cost and deducted from equity. No gain or loss shall be recognized in profit or loss on the purchase, sale, issue or cancellation of UMC’s own equity instruments. Any difference between the carrying amount and the consideration is recognized in equity.

(21)Share-Based Payment Transactions

Equity-settled share-based payment transactions

The compensation cost of equity-settled transactions between the Company and its employees is measured at the fair value of the equity instruments on the grant date, and is recognized as expense, together with a corresponding increase in equity, over the vesting period. When issuing restricted stocks for employees, 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 cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has passed and the Company’s best estimate of the quantity of equity instruments that will ultimately vest. The movement in cumulative cost recognized at the beginning and end of the period is recognized through profit or loss for the period.

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No expense is recognized for awards that do not ultimately vest, except for equity-settled transactions where vesting is conditional upon a market or non-vesting condition. The Company shall recognize the services received in expense irrespective of whether or not the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied.

Where the terms of an equity-settled transaction award are modified, the minimum expense recognized is the expense as if the terms had not been modified, if the original terms of the award are met. An additional expense is recognized for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee as measured at the date of modification.

Where an equity-settled award is cancelled, it is treated as if it fully vests on the date of cancellation, and any expense not yet recognized for the award is recognized immediately. This includes any award where non-vesting conditions within the control of either the entity or the employee are not met. However, if a new award substitutes for the cancelled award and is designated as a replacement award on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award.

Cash-settled share-based payment transactions

The compensation cost of cash-settled share-based payment transactions between the Company and its employees is measured at the fair value of the liability incurred and recognized as expense with corresponding liability over the vesting period. The fair value of the liability is remeasured at the end of each reporting period and at the settlement date with the movement in fair value recognized through profit or loss for the period until the liability is settled.

(22)Revenue from Contracts with Customers

The Company recognizes revenue from contracts with customers by applying the following steps of IFRS 15 “Revenue from Contracts with Customers”:

a.identify the contract with a customer;

b.identify the performance obligations in the contract;

c.determine the transaction price;

d.allocate the transaction price to the performance obligations in the contract; and

e.recognize revenue when (or as) the entity satisfies its performance obligations.

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Revenues on the Company’s contracts with customers for the sales of wafers and joint technology development are recognized as the Company satisfies its performance obligations to customers upon transfer of control of promised goods and services. The Company recognizes revenue at transaction price that are determined using contractual prices reduced by sales returns and allowances which the Company estimates based on historical experience having determined that a significant reversal in the amount of cumulative revenue recognized are not probable to occur. The Company recognizes refund liabilities for estimated sales return and allowances based on the customer complaints, historical experience, and other known factors.

The Company recognizes accounts receivable when the Company transfers control of the goods or services to customers and has a right to an amount of consideration that is unconditional. Such accounts receivable are short term and do not contain a significant financing component. For certain contracts that do not provide the Company unconditional rights to the consideration, and the transfer of control of the goods or services has been satisfied, the Company recognizes contract assets and revenues.

Consideration received from customers prior to the Company having satisfied its performance obligations are accounted for as contract liabilities which are transferred to revenue after the performance obligations are satisfied. The Company recognizes costs to fulfill a contract when the costs relate directly to the contract, generate or enhance resources to be used to satisfy performance obligations in the future, and are expected to be recovered. The costs and revenues are recognized when the Company satisfies its performance obligations to customers upon transfer of control of promised goods and services.

(23)Income Tax

Income tax expense (benefit) is the aggregate amount of current income tax and deferred income tax included in the profit or loss for the period.

Current income tax

Current income tax assets and liabilities for the current period and prior periods are measured using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Current income tax relating to items recognized directly in other comprehensive income or equity is recognized in other comprehensive income or equity rather than profit or loss.

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The additional income tax for undistributed earnings is recognized as income tax expense in the subsequent year when the distribution proposal is approved by the shareholders’ meeting.

Deferred income tax

Deferred income tax is determined using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts in financial statements at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

a.When the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences;

b.In respect of taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, the carryforward of unused tax losses and unused tax credits, to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and the carryforward of unused tax losses and unused tax credits can be utilized, except:

a.Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences;

b.In respect of deductible temporary differences associated with investments in subsidiaries, associates and joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

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Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date. The measurement of deferred tax assets and liabilities reflects the tax consequences that would follow the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax relating to items recognized outside profit or loss is not recognized in profit or loss but rather in other comprehensive income or directly in equity. Deferred tax assets are reassessed and recognized at each reporting date. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax assets to be recovered.

Deferred tax assets and liabilities offset each other, if a legally enforceable right exists to set off current income tax assets against current income tax liabilities, and the deferred taxes relate to the same taxable entity and the same taxation authority.

According to the temporary exception in the International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12 “Income Taxes”), deferred tax assets and liabilities related to Pillar Two income tax will not be recognized nor disclosed.

Tax benefits acquired as part of a business combination, but not satisfying the criteria for separate recognition at the acquisition date, might be realized and recognized subsequently as follows:

a.Acquired deferred tax benefits recognized within the measurement period that result from new information about facts and circumstances that existed at the acquisition date shall be applied to reduce the carrying amount of any goodwill related to that acquisition. If the carrying amount of that goodwill is nil, any remaining deferred tax benefits shall be recognized in profit or loss;

b.All other acquired deferred tax benefits realized shall be recognized in profit or loss, other comprehensive income or equity.

The Company has considered whether it is probable that a taxation authority will accept the uncertain tax treatments used in its income tax filings. If the Company concludes that it is probable that the taxation authority will accept an uncertain tax treatment, the Company determines the taxable profit, tax bases, unused tax losses, unused tax credits or tax rates consistently with the tax treatments used or planned to be used in its income tax filings. If it is not probable that the taxation authority will accept an uncertain tax treatment, the Company makes estimates using either the most likely amount or the expected value of the tax treatment, depending on which method the Company expects to better predict the resolution of the uncertainty. The Company reassesses a judgement or estimate if the facts and circumstance change.

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(24)Earnings per Share

Earnings per share is computed according to IAS 33 “Earnings per Share”. Basic earnings per share is computed by dividing net income by the weighted-average number of ordinary shares outstanding during the current reporting period. Diluted earnings per share is computed by taking basic earnings per share into consideration plus additional ordinary shares that would have been outstanding if the dilutive share equivalents had been issued. Net income is also adjusted for interest and other income or expenses derived from any underlying dilutive share equivalents. The weighted-average number of shares outstanding is adjusted retroactively for stock dividends and employee stock compensation issues.

5.SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Company’s consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities, the accompanying disclosures and the disclosure of contingent liabilities. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

The key assumptions concerning the future and other key sources of estimating uncertainty at the reporting date that would have a significant risk for a material adjustment to the carrying amounts of assets or liabilities within the next fiscal year are discussed below.

The Company bases its assumptions and estimates on information available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements.

(1)The Fair Value of Level 3 Financial Instruments

Where the fair values of the level 3 financial assets recorded on the balance sheet cannot be derived from active markets, they are determined by the application of an appropriate valuation method which was mainly the market approach. The valuation of these financial assets involves significant judgments such as the selection of comparable companies or equity transaction prices and the application of assumptions such as discounts for lack of marketability, valuation multiples, etc. Changes in assumptions about these factors could affect the reported fair value of the financial assets. Please refer to Note 12 for more details.

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(2)Inventories

Inventories are valued at the lower of cost and net realizable value item by item. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Please refer to Note 6(6). Costs of completion include direct labor and overhead, including depreciation and maintenance of production equipment, indirect labor costs, indirect material costs, supplies, utilities and royalties that is expected to be incurred at normal production level. The Company estimates normal production level taking into account loss of capacity resulting from planned maintenance, based on historical experience and current production capacity.

6.CONTENTS OF SIGNIFICANT ACCOUNTS

(1)Cash and Cash Equivalents

		As of December 31,
		2025		2024
Cash on hand and petty cash		$6,655		$6,258
Checking and savings accounts		25,019,390		25,388,395
Time deposits		77,994,948		73,507,742
Repurchase agreements collateralized by government bonds and corporate notes		7,639,059		6,097,831
Total		$110,660,052		$105,000,226

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

		As of December 31,
		2025		2024
Financial assets mandatorily measured at fair value through profit or loss
Common stocks		$8,823,146		$8,759,564
Preferred stocks		3,861,674		3,475,613
Funds		4,956,553		5,792,863
Convertible bonds		438,024		363,430
Forward exchange contracts		1,859		2
Others		72,660		65,460
Total		$18,153,916		$18,456,932
Current		$568,521		$606,018
Non-current		17,585,395		17,850,914
Total		$18,153,916		$18,456,932

41

(3)Financial Assets at Fair Value through Other Comprehensive Income

		As of December 31,
		2025		2024
Equity instruments
Common stocks		$13,571,941		$17,004,448
Preferred stocks		202,808		204,880
Total		$13,774,749		$17,209,328
Current		$4,630,441		$5,893,377
Non-current		9,144,308		11,315,951
Total		$13,774,749		$17,209,328

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

b.Dividend income recognized in profit or loss from equity instruments designated as fair value through other comprehensive income were listed below:

		For the years ended December 31,
		2025		2024
Held at end of period		$2,085,166		$888,826
Derecognized during the period		-		-
Total		$2,085,166		$888,826

c.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.

(4)Financial Assets Measured at Amortized Cost

		As of December 31,
		2025		2024
Time deposits with original maturities over three months		$12,506,177		$3,739,224
Current		$12,506,177		$3,739,224
Non-current		-		-
Total		$12,506,177		$3,739,224

42

(5)Accounts Receivable, Net

		As of December 31,
		2025		2024
Accounts receivable		$30,780,504		$32,734,422
Less: loss allowance		(8,345)		(10,996)
Net		$30,772,159		$32,723,426

Aging analysis of accounts receivable:

		As of December 31,
		2025		2024
Neither past due		$28,105,444		$29,338,097
Past due:
≤ 30 days		2,565,097		3,292,457
31 to 60 days		78,880		77,929
61 to 90 days		3,586		1,249
91 to 120 days		6,860		1,115
≥ 121 days		20,637		23,575
Subtotal		2,675,060		3,396,325
Total		$30,780,504		$32,734,422

Movement of loss allowance for accounts receivable:

		For the years ended December 31,
		2025		2024
Beginning balance		$10,996		$79,062
Net recognition (reversal) for the period		(2,651)		(68,066)
Ending balance		$8,345		$10,996

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 years ended December 31, 2025 and 2024, 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.

43

(6)Inventories, Net

		As of December 31,
		2025		2024
Raw materials		$10,078,373		$10,731,866
Supplies and spare parts		5,996,339		6,238,353
Work in process		18,555,155		16,051,506
Finished goods		2,598,516		2,760,739
Total		$37,228,383		$35,782,464

a.For the years ended December 31, 2025 and 2024, the Company recognized NT$160,486 million and NT$148,575 million, respectively, in operating cost, of which NT$1,391 million and NT$858 million was related to write-down of inventories.

b.None of the aforementioned inventories were pledged.

(7)Investments Accounted for Under the Equity Method

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

		As of December 31,
		2025				2024
Investee companies		Amount		Percentage of ownership or voting rights		Amount		Percentage of ownership or voting rights
Listed companies
SILICON INTEGRATED SYSTEMS CORP. (SIS) (Note A)		$3,562,947		17.99		$2,977,838		19.02
FARADAY TECHNOLOGY CORP. (FARADAY) (Note B)		2,496,550		13.80		2,492,118		13.80
UNIMICRON TECHNOLOGY CORP. (UNIMICRON) (Note C)		14,428,352		13.01		13,853,588		13.01
Unlisted companies
MTIC HOLDINGS PTE. LTD. (Note D)		-		45.44		-		45.44
UNITECH CAPITAL INC.		524,403		42.00		556,610		42.00
TRIKNIGHT CAPITAL CORPORATION (TRIKNIGHT) (Note E)		759,446		40.00		1,298,112		40.00
HSUN CHIEH CAPITAL CORP.		233,438		40.00		266,066		40.00
PURIUMFIL INC. (Note F)		-		-		12,423		40.00

44

		As of December 31,
		2025				2024
Investee companies		Amount		Percentage of ownership or voting rights		Amount		Percentage of ownership or voting rights
HSUN CHIEH INVESTMENT CO., LTD. (HSUN CHIEH) (Note G)		$12,792,773		36.49		$11,654,611		36.49
YANN YUAN INVESTMENT CO., LTD. (YANN YUAN)		13,722,026		26.78		10,067,226		26.78
UNITED LED CORPORATION HONG KONG LIMITED		122,982		25.14		101,468		25.14
VSENSE CO., LTD. (VSENSE) (Note D and H)		-		-		-		23.98
TRANSLINK CAPITAL PARTNERS I, L.P. (Note I)		-		-		40,545		10.38
Total		$48,642,917				$43,320,605

Note A: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. SIS executed a capital reduction and refunded NT$499 million based on UMC’s stockholding percentage in July 2024.

Note B: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. The Company participated in the capital increase of FARADAY in March 2024. Please refer to Note 7 for the relevant information.

Note C: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.

45

Note D: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.

Note E:TRIKNIGHT executed a capital reduction and refunded NT$232 million and NT$760 million based on UMC’s stockholding percentage in 2025 and 2024, respectively.

Note F: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.

Note G:HSUN CHIEH executed a capital reduction and refunded NT$343 million and NT$343 million based on UMC’s stockholding percentage in 2025 and 2024, respectively.

Note H: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.

Note I: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$20,488 million and NT$19,324 million, as of December 31, 2025 and 2024, respectively. The fair value of these investments were NT$54,202 million and NT$43,305 million as of December 31, 2025 and 2024, respectively.

Certain investments accounted for under the equity method were audited by other independent accountants. Shares of profit or loss of these associates and joint ventures amounted to NT$1,796 million and NT$(92) million for the years ended December 31, 2025 and 2024, respectively. Share of other comprehensive income (loss) of these associates and joint ventures amounted to NT$145 million and NT$318 million for the years ended December 31, 2025 and 2024, respectively. The balances of investments accounted for under the equity method were NT$27,981 million and NT$27,670 million as of December 31, 2025 and 2024, respectively.

46

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.

b.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 years ended December 31, 2025 and 2024 were NT$(34) million and NT$55 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 years ended December 31,
		2025		2024
Income (loss) from continuing operations		$2,418,230		$410,611
Other comprehensive income (loss)		3,816,961		(386,217)
Total comprehensive income (loss)		$6,235,191		$24,394

c.Details of UMC’s stock (thousand shares) held by the Company’s associates are as follows:

		As of December 31,
		2025		2024
HSUN CHIEH		441,371		441,371
SIS		266,580		266,580
YANN YUAN		192,963		192,963
UNIMICRON and its Subsidiaries		27		47
Total		900,941		900,961

47

(8)Property, Plant and Equipment

a.2025

Assets Used by the Company:

Cost:

		Land		Buildings		Machinery and equipment		Transportation equipment		Furniture and fixtures		Leasehold improvement		Construction in progress and equipment awaiting inspection		Total
As of January 1, 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		-		210,455		-		-		-		-		45,950,074		46,160,529
Disposals		-		(27,441)		(3,189,633)		(550)		(6,087)		-		-		(3,223,711)
Transfers and reclassifications		-		2,908,510		63,912,986		4,388		1,417,913		2,141		(61,713,893)		6,532,045
Exchange effect		(24,825)		(1,272,200)		(8,002,570)		(702)		7,477		(2,458)		(2,037,219)		(11,332,497)
As of December 31, 2025		$1,385,971		$67,407,336		$1,179,267,510		$81,156		$10,952,535		$68,090		$26,966,564		$1,286,129,162

Accumulated Depreciation and Impairment:

		Land		Buildings		Machinery and equipment		Transportation equipment		Furniture and fixtures		Leasehold improvement		Construction in progress and equipment awaiting inspection		Total
As of January 1, 2025		$-		$25,675,000		$937,309,791		$61,733		$7,534,386		$67,464		$-		$970,648,374
Depreciation		-		2,281,586		52,737,289		4,096		641,419		2,066		-		55,666,456
Disposals		-		(27,441)		(3,182,973)		(550)		(6,083)		-		-		(3,217,047)
Exchange effect		-		(117,329)		(6,536,050)		(384)		(4,873)		(2,394)		-		(6,661,030)
As of December 31, 2025		$-		$27,811,816		$980,328,057		$64,895		$8,164,849		$67,136		$-		$1,016,436,753
Net carrying amount:
As of December 31, 2025		$1,385,971		$39,595,520		$198,939,453		$16,261		$2,787,686		$954		$26,966,564		$269,692,409

48

Assets Subject to Operating Leases:

Cost:

		Land		Buildings		Machinery and equipment		Furniture and fixtures		Total
As of January 1, 2025		$536,721		$2,461,012		$6,345		$1,409,464		$4,413,542
Disposals		-		(1,250)		-		(512)		(1,762)
Transfers and reclassifications		-		22,190		-		27,754		49,944
Exchange effect		(3,787)		(8,906)		-		(917)		(13,610)
As of December 31, 2025		$532,934		$2,473,046		$6,345		$1,435,789		$4,448,114

Accumulated Depreciation and Impairment:

		Land		Buildings		Machinery and equipment		Furniture and fixtures		Total
As of January 1, 2025		$-		$1,347,206		$6,345		$1,345,376		$2,698,927
Depreciation		-		39,458		-		15,754		55,212
Disposals		-		(476)		-		(512)		(988)
Exchange effect		-		(6,540)		-		(1,384)		(7,924)
As of December 31, 2025		$-		$1,379,648		$6,345		$1,359,234		$2,745,227
Net carrying amount
As of December 31, 2025		$532,934		$1,093,398		$-		$76,555		$1,702,887

b.2024

Assets Used by the Company:

Cost:

		Land		Buildings		Machinery and equipment		Transportation equipment		Furniture and fixtures		Leasehold improvement		Construction in progress and equipment awaiting inspection		Total
As of January 1, 2024		$1,430,338		$38,369,863		$1,021,498,821		$71,712		$8,873,468		$65,823		$82,358,651		$1,152,668,676
Additions		-		32,999		-		-		-		-		76,514,788		76,547,787
Disposals		-		(1,019)		(2,198,549)		-		(73,357)		(43)		(708)		(2,273,676)
Disposal of a subsidiary		-		(119,322)		-		-		(40,364)		-		-		(159,686)
Transfers and reclassifications		-		26,772,957		93,484,809		5,087		717,154		-		(117,585,901)		3,394,106
Exchange effect		(19,542)		532,534		13,761,646		1,221		56,331		2,627		3,480,772		17,815,589
As of December 31, 2024		$1,410,796		$65,588,012		$1,126,546,727		$78,020		$9,533,232		$68,407		$44,767,602		$1,247,992,796

49

Accumulated Depreciation and Impairment:

		Land		Buildings		Machinery and equipment		Transportation equipment		Furniture and fixtures		Leasehold improvement		Construction in progress and equipment awaiting inspection		Total
As of January 1, 2024		$-		$24,028,140		$884,088,674		$56,257		$7,056,013		$63,038		$-		$915,292,122
Depreciation		-		1,474,732		42,716,755		4,663		521,994		1,879		-		44,720,023
Disposals		-		(109)		(2,153,787)		-		(72,920)		(43)		-		(2,226,859)
Disposal of a subsidiary		-		(27,083)		-		-		(20,056)		-		-		(47,139)
Exchange effect		-		199,320		12,658,149		813		49,355		2,590		-		12,910,227
As of December 31, 2024		$-		$25,675,000		$937,309,791		$61,733		$7,534,386		$67,464		$-		$970,648,374
Net carrying amount:
As of December 31, 2024		$1,410,796		$39,913,012		$189,236,936		$16,287		$1,998,846		$943		$44,767,602		$277,344,422

Assets Subject to Operating Leases:

Cost:

		Land		Buildings		Machinery and equipment		Furniture and fixtures		Total
As of January 1, 2024		$539,703		$2,440,917		$6,345		$1,385,740		$4,372,705
Transfers and reclassifications		-		2,000		-		15,166		17,166
Exchange effect		(2,982)		18,095		-		8,558		23,671
As of December 31, 2024		$536,721		$2,461,012		$6,345		$1,409,464		$4,413,542

Accumulated Depreciation and Impairment:

		Land		Buildings		Machinery and equipment		Furniture and fixtures		Total
As of January 1, 2024		$-		$1,297,068		$6,345		$1,322,598		$2,626,011
Depreciation		-		39,193		-		14,235		53,428
Exchange effect		-		10,945		-		8,543		19,488
As of December 31, 2024		$536,721		$1,347,206		$6,345		$1,345,376		$2,698,927
Net carrying amount:
As of December 31, 2024		$536,721		$1,113,806		$-		$64,088		$1,714,615

50

c.Details of interest expense capitalized were as follows:

		For the years ended December 31,
		2025		2024
Interest expense capitalized		$6,777		$13,560
Interest rates applied		1.64% - 1.81%		1.52% - 1.96%

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

(9)Leases

The Company leases various properties, such as land (including land use right), buildings, machinery and equipment, transportation equipment and other equipment with lease terms of 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.

a.The Company as a lessee

(a)Right-of-use Assets

		As of December 31,
		2025		2024
Land (including land use right)		$5,416,282		$5,755,484
Buildings		73,432		168,568
Machinery and equipment		1,952,668		2,082,479
Transportation equipment		13,918		12,561
Other equipment		19,734		19,923
Net		$7,476,034		$8,039,015

		For the years ended December 31,
		2025		2024
Depreciation
Land (including land use right)		$375,604		$377,882
Buildings		77,133		87,486
Machinery and equipment		239,391		220,734
Transportation equipment		9,773		10,852
Other equipment		3,808		1,697
Total		$705,709		$698,651

51

i.For the years ended December 31, 2025 and 2024, the Company’s addition to right-of-use assets amounted to NT$344 million and NT$1,683 million, respectively.

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

(b)Lease Liabilities

		As of December 31,
		2025		2024
Current		$624,825		$636,357
Non-current		5,376,021		5,782,659
Total		$6,000,846		$6,419,016

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

b.The Company as a lessor

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

(10)Intangible Assets

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		-		2,450,285		7,684		893,015		3,350,984
Write-off		-		(2,221,557)		(259,094)		(514,173)		(2,994,824)
Acquisition of a subsidiary		19,565		-		-		-		19,565
Exchange effect		-		(73,952)		54,411		(5,491)		(25,032)
As of December 31, 2025		$34,577		$5,631,275		$1,845,480		$3,324,623		$10,835,955

52

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		-		1,736,793		241,726		772,988		2,751,507
Write-off		-		(2,221,557)		(259,094)		(514,173)		(2,994,824)
Exchange effect		-		(28,701)		40,349		(6,199)		5,449
As of December 31, 2025		$7,398		$2,717,650		$1,185,778		$2,182,253		$6,093,079
Net carrying amount:
As of December 31, 2025		$27,179		$2,913,625		$659,702		$1,142,370		$4,742,876

2024

Cost:

		Goodwill		Software		Patents and technology license fees		Others		Total
As of January 1, 2024		$15,012		$5,466,077		$1,773,541		$3,310,641		$10,565,271
Additions		-		1,328,781		95,245		860,615		2,284,641
Write-off		-		(1,290,196)		(214,874)		(1,215,013)		(2,720,083)
Disposal of a subsidiary		-		(3,151)		-		-		(3,151)
Reclassifications		-		7,363		-		-		7,363
Exchange effect		-		(32,375)		388,567		(4,971)		351,221
As of December 31, 2024		$15,012		$5,476,499		$2,042,479		$2,951,272		$10,485,262

Accumulated Amortization and Impairment:

		Goodwill		Software		Patents and technology license fees		Others		Total
As of January 1, 2024		$7,398		$2,890,831		$908,965		$2,385,522		$6,192,716
Amortization		-		1,656,180		216,437		763,921		2,636,538
Write-off		-		(1,290,196)		(214,874)		(1,215,013)		(2,720,083)
Disposal of a subsidiary		-		(2,025)		-		-		(2,025)
Exchange effect		-		(23,675)		252,269		(4,793)		223,801
As of December 31, 2024		$7,398		$3,231,115		$1,162,797		$1,929,637		$6,330,947
Net carrying amount:
As of December 31, 2024		$7,614		$2,245,384		$879,682		$1,021,635		$4,154,315

53

The amortization amounts of intangible assets were as follows:

		For the years ended December 31,
		2025		2024
Operating costs		$1,246,679		$999,321
Operating expenses		$1,504,828		$1,637,217

(11)Short-Term Loans

		As of December 31,
		2025		2024
Unsecured bank loans		$8,408,772		$8,515,000

		As of December 31,
		2025		2024
Interest rates applied		1.78% - 4.75%		1.87% - 2.99%

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

		As of December 31,
		2025		2024
Embedded derivatives in exchangeable bonds		$54,651		$899,961
Forward exchange contracts		2,512		1,039
Total		$57,163		$901,000

(13)Bonds Payable

		As of December 31,
		2025		2024
Unsecured domestic bonds payable		$44,600,000		$24,600,000
Unsecured exchangeable bonds payable		5,757,373		5,757,373
Less: Discounts on bonds payable		(129,068)		(305,805)
Total		50,228,305		30,051,568
Less: Current or exchangeable portion due within one year		(16,157,161)		(5,466,589)
Net		$34,071,144		$24,584,979

54

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

Term		Issuance date		Issued amount		Coupon rate		Repayment
Five-year		In late April 2021		NT$5,500 million		0.57%		Interest will be paid annually and the principal will be repayable in April 2026 upon maturity.
Seven-year		In late April 2021		NT$2,000 million		0.63%		Interest will be paid annually and the principal will be repayable in April 2028 upon maturity.
Ten-year (Green bond)		In late April 2021		NT$2,100 million		0.68%		Interest will be paid annually and the principal will be repayable in April 2031 upon maturity.
Five-year		In mid-December 2021		NT$5,000 million		0.63%		Interest will be paid annually and the principal will be repayable in December 2026 upon maturity.
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 in September 2028 upon maturity.
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 in June 2030 upon maturity.
Five-year		In late June 2025		NT$3,200 million		1.99%		Interest will be paid annually and the principal will be repayable in June 2030 upon maturity.
Three-year		In late August 2025		NT$5,000 million		1.80%		Interest will be paid annually and the principal will be repayable in August 2028 upon maturity.
Three-year		In late October 2025		NT$5,000 million		1.70%		Interest will be paid annually and the principal will be repayable in October 2028 upon maturity.
Three-year		In early December 2025		NT$2,300 million		1.55%		Interest will be paid annually and the principal will be repayable in December 2028 upon maturity.
Five-year		In early December 2025		NT$2,500 million		1.60%		Interest will be paid annually and the principal will be repayable in December 2030 upon maturity.

55

b.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:

i.Issue Amount: USD 400 million

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

iii.Redemption:

(i)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.

(ii)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.

(iii)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.

(iv)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.

(v)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.

(vi)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.

56

iv.Terms of Exchange:

(i)Underlying Securities: Common Shares of NOVATEK

(ii)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.

(iii)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 December 31, 2025.

v.Redemption on the Maturity Date:

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

(i)UMC shall have redeemed the bonds at the option of UMC, or the bonds shall have been redeemed at option of the bondholder,

(ii)The bondholders shall have exercised the exchange right before maturity, or

(iii)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 December 31, 2025 and 2024, 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.

57

(14)Long-Term Loans

a.Details of long-term loans as of December 31, 2025 and 2024 were as follows:

		As of
Lenders		December 31, 2025		December 31, 2024		Redemption
NTD secured bank loans		$382,290		$494,920		Repayable from October 19, 2015 to October 15, 2031.
RMB secured bank loans		-		10,025,233		Repayable from March 19, 2021 to March 18, 2031.
NTD unsecured bank loans		8,291,500		5,919,266		Repayable from March 24, 2023 to March 15, 2031.
USD unsecured bank loans		-		1,237,490		Repayable from June 24, 2023 to June 24, 2026.
RMB unsecured bank loans		2,258,000		-		Repayable from May 20, 2026 to May 20, 2027.
NTD unsecured revolving bank loans (Note)		3,400,000		17,500,000		Repayable from March 2, 2023 to November 5, 2030.
USD unsecured revolving bank loans (Note)		-		1,300,000		Settlement due on September 26, 2029.
Subtotal		14,331,790		36,476,909
Less: Current portion		(3,030,880)		(5,528,409)
Total		$11,300,910		$30,948,500

		As of
		December 31, 2025		December 31, 2024
Interest rates applied		1.53% - 2.98%		1.53% - 5.49%

Note: The bank loans are available on a revolving basis during the contract period. As of December 31, 2025 and 2024, the available revolving line of credit amounted to NT$54.8 billion and NT$43.3 billion, respectively. The abovementioned unused line of credit were NT$51.4 billion and NT$24.5 billion, respectively.

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

58

(15)Post-Employment Benefits

a.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$2,059 million and NT$1,978 million were contributed by the Company for the years ended December 31, 2025 and 2024, respectively.

b.Defined benefit plan

i.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. UMC contributes an amount equivalent to 2% of the employees’ total salaries and wages on a monthly basis to the pension fund deposited with the Bank of Taiwan under the name of a pension fund supervisory committee. The pension fund is managed by the government’s designated authorities and therefore is not included in the Company’s consolidated financial statements. For the years ended December 31, 2025 and 2024, total pension expenses of NT$29 million and NT$35 million, respectively, were recognized by UMC.

ii.Movements in present value of defined benefit obligation and fair value of plan assets were as follows:

Movements in present value of defined benefit obligation during the year:

		For the years ended December 31,
		2025		2024
Defined benefit obligation at beginning of year		$(4,392,723)		$(4,665,498)
Items recognized as profit or loss:
Service cost		(5,749)		(8,435)
Interest cost		(69,844)		(55,986)
Subtotal		(75,593)		(64,421)
Remeasurements recognized in other comprehensive income (loss):
Arising from changes in demographic assumptions		-		(142,117)
Arising from changes in financial assumptions		(80,095)		98,669
Experience adjustments		28,043		20,669
Subtotal		(52,052)		(22,779)
Benefits paid		269,846		359,975
Defined benefit obligation at end of year		$(4,250,522)		$(4,392,723)

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Movements in fair value of plan assets during the year:

		For the years ended December 31,
		2025		2024
Beginning balance of fair value of plan assets		$2,960,474		$2,460,413
Items recognized as profit or loss:
Interest income on plan assets		47,071		29,525
Contribution by employer		449,449		619,281
Benefits paid		(269,846)		(359,975)
Remeasurements recognized in other comprehensive income (loss):
Return on plan assets, excluding amounts included in interest income		197,155		211,230
Fair value of plan assets at end of year		$3,384,303		$2,960,474

The actual returns on plan assets of UMC for the years ended December 31, 2025 and 2024 were NT$244 million and NT$241 million, respectively.

iii.The defined benefit plan recognized on the consolidated balance sheets were as follows:

		As of December 31,
		2025		2024
Present value of the defined benefit obligation		$(4,250,522)		$(4,392,723)
Fair value of plan assets		3,384,303		2,960,474
Funded status		(866,219)		(1,432,249)
Net defined benefit liabilities, noncurrent recognized on the consolidated balance sheets		$(866,219)		$(1,432,249)

iv.The major categories of plan assets as a percentage of the fair value of the total plan assets are as follows:

		As of December 31,
		2025		2024
Cash		16%		21%
Equity instruments		51%		47%
Debt instruments		22%		21%
Others		11%		11%

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Employee pension fund is deposited under a trust administered by the Bank of Taiwan. The overall expected rate of return on assets is determined based on historical trend and actuaries’ expectations on the assets’ returns in the market over the obligation period. Furthermore, the utilization of the fund is determined by the labor pension fund supervisory committee, which also guarantees the minimum earnings to be no less than the earnings attainable from interest rates offered by local banks for two-year time deposits.

v.The principal underlying actuarial assumptions are as follows:

		As of December 31,
		2025		2024
Discount rate		1.31%		1.59%
Rate of future salary increase		3.50%		3.50%

vi.Expected future benefit payments are as follows:

Year		As of December 31, 2025
2026		$419,212
2027		400,471
2028		395,448
2029		402,632
2030		375,509
2031 and thereafter		2,666,697
Total		$4,659,969

UMC expects to make pension fund contribution of NT$83 million in 2026. The weighted-average durations of the defined benefit obligation were 7 years and 8 years as of December 31, 2025 and 2024, respectively.

vii.Sensitivity analysis:

		As of December 31, 2025
		Discount rate				Rate of future salary increase
		0.5% increase		0.5% decrease		0.5% increase		0.5% decrease
Decrease (increase) in defined benefit obligation		$141,345		$(149,276)		$(124,357)		$119,311

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		As of December 31, 2024
		Discount rate				Rate of future salary increase
		0.5% increase		0.5% decrease		0.5% increase		0.5% decrease
Decrease (increase) in defined benefit obligation		$154,095		$(163,088)		$(137,421)		$131,562

The sensitivity analyses above have been determined based on a method that extrapolates the impact on the net defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

(16)Deferred Government Grants

		As of December 31,
		2025		2024
Beginning balance		$3,961,028		$2,547,022
Arising during the period		5,097,841		2,131,264
Recorded in profit or loss:
Other operating income		(1,520,370)		(841,091)
Exchange effect		(271,994)		123,833
Ending balance		$7,266,505		$3,961,028
Current (classified under other current liabilities)		$1,781,746		$906,935
Non-current (classified under other noncurrent liabilities-others)		5,484,759		3,054,093
Total		$7,266,505		$3,961,028

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.

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

		As of December 31,
		2025		2024
Refund liabilities		$4,309,253		$3,918,437

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(18)Provisions

		As of December 31,
		2025		2024
Decommissioning Liabilities (classified under other noncurrent liabilities-others)		$898,273		$695,168
Onerous Contracts (classified under other current liabilities)		160,114		281,244
Others (classified under other current liabilities)		69,202		-
Total		$1,127,589		$976,412

		Decommissioning Liabilities		Onerous Contracts		Others
Balance as of January 1, 2025		$695,168		$281,244		$-
Arising during the period		155,245		84,324		68,899
Unused provision reversed		-		(203,266)		-
Discount rate adjustment and unwinding of discount from the passage of time		75,027		-		-
Exchange effect		(27,167)		(2,188)		303
Balance as of December 31, 2025		$898,273		$160,114		$69,202

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.

(19)Equity

a.Capital stock:

i.UMC had 26,000 million common shares authorized to be issued as of December 31, 2025 and 2024, of which 12,588 million shares and 12,561 million shares were issued as of December 31, 2025 and 2024, respectively, each at a par value of NT$10.

ii.UMC had 117 million and 115 million ADSs, which were traded on the NYSE as of December 31, 2025 and 2024, respectively. The total number of common shares of UMC represented by all issued ADSs were 586 million shares and 576 million shares as of December 31, 2025 and 2024, respectively. One ADS represents five common shares.

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iii.On December 5, 2025 and December 5, 2024, UMC issued restricted stocks for its employees in a total of 33 million shares and 33 million shares with a par value of NT$10 each, respectively. The aforementioned issuance of new shares was approved by the competent authority and the registration was completed. Please refer to Note 6(20) for the information of restricted stocks.

iv.For the years ended December 31, 2025 and 2024, UMC has recalled and cancelled 5 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.

b.Retained earnings and dividend policies:

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

i.Payment of taxes.

ii.Making up loss for preceding years.

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

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

v.The remaining, 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.

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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 (in thousand NT dollars)				Cash dividend per share (NT dollars)
		2025		2024		2025		2024
Legal reserve		$4,182,207		$4,738,237
Cash dividends		32,704,164		35,787,598		$2.60		$2.85

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.

c.Non-controlling interests:

		For the years ended December 31,
		2025		2024
Balance as of January 1		$256,613		$340,859
Attributable to non-controlling interests:
Net income (loss)		(181,501)		(104,674)
Other comprehensive income (loss)		(22)		76
Share-based payment transactions		1,428		1,913
Changes in subsidiaries’ ownership		(11,826)		(7,910)
Others		22,483		26,349
Ending balance		$87,175		$256,613

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(20)Share-Based Payment

a.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 (in thousands)

66,000

50,000

233,200

Eligible employees

Qualified employees of the Company

Qualified employees of the Company

Qualified employees 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 (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.

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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 years ended December 31, 2025 and 2024, the compensation costs of NT$483 million and NT$775 million, respectively, were recognized in expenses by the Company.

b.Stock appreciation right plan for employees

In June 2021 and September 2020, the Company executed a compensation plan to grant 1 million units and 26 million units of cash-settled stock appreciation right to qualified employees of the Company without consideration, respectively. One unit of stock appreciation right to employees represents a right to the intrinsic value of one common share of UMC. The life of the plan is four years. Beginning from the end of two years since the date of grant, those employees who fulfill both service period and performance conditions set by the Company are gradually eligible to the vested stock appreciation right at certain percentage and time frame. For those employees who fail to fulfill the vesting conditions, the Company will withdraw their rights without consideration. During the vesting period, the holders of the stock appreciation right are not entitled the same rights as those of common stock holders of UMC. The compensation plans, which were implemented in June 2021 and September 2020, respectively, expired in June 2025 and August 2024.

For the years ended December 31, 2025 and 2024, the compensation costs of NT$1 million and NT$20 million, respectively, were recognized in expenses by the Company. The liabilities for stock appreciation right recognized which were classified under other payables amounted to nil and NT$8 million as of December 31, 2025 and 2024, respectively. The intrinsic value for the liabilities of vested rights was nil.

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(21)Operating Revenues

a.Disaggregation of revenue

i.By Product

		For the years ended December 31,
		2025		2024
Wafer		$227,595,224		$221,820,412
Others		9,957,975		10,482,172
Total		$237,553,199		$232,302,584

ii.By geography

		For the years ended December 31,
		2025		2024
Taiwan		$91,735,839		$83,758,430
China (includes Hong Kong)		37,604,210		37,117,309
Japan		10,370,412		9,107,394
Korea		25,389,728		26,295,063
USA		52,191,603		58,117,650
Europe		20,254,391		17,902,262
Others		7,016		4,476
Total		$237,553,199		$232,302,584

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

iii.By the timing of revenue recognition

		For the years ended December 31,
		2025		2024
At a point in time		$234,505,273		$229,505,369
Over time		3,047,926		2,797,215
Total		$237,553,199		$232,302,584

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b.Contract balances

i.Contract assets, current

		As of December 31,
		2025		2024		2023
Sales of goods and services		$1,107,419		$1,043,680		$1,132,477
Less: Loss allowance		(402,021)		(417,967)		(392,949)
Net		$705,398		$625,713		$739,528

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.

ii.Contract liabilities

		As of December 31,
		2025		2024		2023
Sales of goods and services		$4,368,164		$2,660,181		$3,681,352
Current		$2,580,789		$2,200,561		$3,250,712
Non-current		1,787,375		459,620		430,640
Total		$4,368,164		$2,660,181		$3,681,352

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$1,790 million and NT$3,416 million, respectively, in revenues from the contract liabilities balance at the beginning of the period as performance obligations were satisfied for the years ended December 31, 2025 and 2024.

c.The Company’s transaction price allocated to unsatisfied performance obligations amounted to NT$288 million and NT$355 million as of December 31, 2025 and 2024, 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.

69

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

As of December 31, 2025 and 2024, 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$1,186 million and NT$584 million, respectively. Subsequently, the Company will expense from costs to fulfill a contract to operating costs when the related obligations are satisfied.

(22)Operating Costs and Expenses

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

		For the years ended December 31,
		2025						2024
		Operating costs		Operating expenses		Total		Operating costs		Operating expenses		Total
Employee benefit expenses
Salaries		$25,094,595		$10,696,857		$35,791,452		$25,959,209		$11,485,738		$37,444,947
Labor and health insurance		1,289,440		500,731		1,790,171		1,383,016		527,153		1,910,169
Pension		1,573,958		513,437		2,087,395		1,511,302		501,915		2,013,217
Other employee benefit expenses		393,893		195,790		589,683		401,329		207,925		609,254
Depreciation		53,321,558		2,979,597		56,301,155		43,740,758		1,595,934		45,336,692
Amortization		1,309,907		1,521,633		2,831,540		1,041,562		1,654,002		2,695,564

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.

70

The Company recognized the employees and directors’ compensation in the profit or loss with corresponding other payables during the periods when earned for the years ended December 31, 2025 and 2024. 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 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.

(23)Net Other Operating Income and Expenses

		For the years ended December 31,
		2025		2024
Government grants		$1,890,945		$1,337,458
Rental income from property, plant and equipment		188,167		202,010
Gain on disposal of property, plant and equipment		99,178		72,402
Others		(188,411)		(287,961)
Total		$1,989,879		$1,323,909

71

(24)Non-Operating Income and Expenses

a.Other gains and losses

		For the years ended December 31,
		2025		2024
Gain (loss) on valuation of financial assets and liabilities at fair value through profit or loss		$707,129		$(320,956)
Gain on disposal of investments accounted for under the equity method		23,060		817
Others		(6)		20,345
Total		$730,183		$(299,794)

b.Finance costs

		For the years ended December 31,
		2025		2024
Interest expenses
Bonds payable		$552,736		$500,757
Bank loans		762,064		963,263
Lease liabilities		193,942		196,457
Others		20,321		18,225
Financial expenses		73,002		77,398
Total		$1,602,065		$1,756,100

(25)Components of Other Comprehensive Income (Loss)

		For the year ended December 31, 2025
		Arising during the period		Reclassification adjustments during the period		Other comprehensive income (loss), before tax		Income tax effect		Other comprehensive income (loss), net of tax
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit pension plans		$145,103		$-		$145,103		$(29,021)		$116,082
Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income		(3,423,919)		-		(3,423,919)		71,437		(3,352,482)
Share of other comprehensive income (loss) of associates and joint ventures which will not be reclassified subsequently to profit or loss		3,800,459		-		3,800,459		-		3,800,459

72

		For the year ended December 31, 2025
		Arising during the period		Reclassification adjustments during the period		Other comprehensive income (loss), before tax		Income tax effect		Other comprehensive income (loss), net of tax
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations		$(5,848,451)		$-		$(5,848,451)		$435,320		$(5,413,131)
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss		(17,433)		7		(17,426)		6,787		(10,639)
Total other comprehensive income (loss)		$(5,344,241)		$7		$(5,344,234)		$484,523		$(4,859,711)

		For the year ended December 31, 2024
		Arising during the period		Reclassification adjustments during the period		Other comprehensive income (loss), before tax		Income tax effect		Other comprehensive income (loss), net of tax
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit pension plans		$188,451		$-		$188,451		$(37,690)		$150,761
Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income		(539,327)		-		(539,327)		1,983		(537,344)
Share of other comprehensive income (loss) of associates and joint ventures which will not be reclassified subsequently to profit or loss		(655,739)		-		(655,739)		-		(655,739)

73

		For the year ended December 31, 2024
		Arising during the period		Reclassification adjustments during the period		Other comprehensive income (loss), before tax		Income tax effect		Other comprehensive income (loss), net of tax
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations		$8,902,745		$-		$8,902,745		$127,990		$9,030,735
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss		324,354		(817)		323,537		(10,966)		312,571
Total other comprehensive income (loss)		$8,220,484		$(817)		$8,219,667		$81,317		$8,300,984

(26)Income Tax

a.The major components of income tax for the years ended December 31, 2025 and 2024 were as follows:

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

		For the years ended December 31,
		2025		2024
Current income tax expense (benefit):
Current income tax charge		$6,268,187		$6,848,343
Adjustments in respect of current income tax of prior periods		183,830		(124,430)
Income tax expense affected by the Pillar Two legislation		151,151		-
Deferred income tax expense (benefit):
Deferred income tax related to origination and reversal of temporary differences		4,046,336		2,441,278
Deferred income tax related to recognition and derecognition of tax losses and unused tax credits		(2,484,730)		(34,010)
Deferred income tax related to changes in tax rates		(15,461)		68
Adjustment of prior year’s deferred income tax		(22,269)		(3,227)
Deferred income tax arising from write-down or reversal of write-down of deferred tax assets		(14,086)		(14,565)
Income tax expense recorded in profit or loss		$8,112,958		$9,113,457

74

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

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

		For the years ended December 31,
		2025		2024
Remeasurements of defined benefit pension plans		$(29,021)		$(37,690)
Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income		71,437		1,983
Income tax related to items that will not be reclassified subsequently to profit or loss		$42,416		$(35,707)

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

		For the years ended December 31,
		2025		2024
Exchange differences on translation of foreign operations		$435,320		$127,990
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss		6,787		(10,966)
Income tax related to items that may be reclassified subsequently to profit or loss		$442,107		$117,024

(iii)Deferred income tax charged directly to equity:

		For the years ended December 31,
		2025		2024
Share of the net assets of the subsidiary		$(17,661)		$-

b.A reconciliation between income tax expense (benefit) and income before tax at UMC’s applicable tax rate were as follows:

		For the years ended December 31,
		2025		2024
Income before tax		$49,647,706		$56,219,713
At UMC’s statutory income tax rate		9,929,541		11,243,943
Adjustments in respect of current income tax of prior periods		183,830		(124,430)
Net changes in loss carry-forward and investment tax credits		(5,737,173)		(2,026,085)
Adjustment of deferred tax assets/liabilities for write-downs/reversals and different jurisdictional tax rates		(3,354,038)		559,386

75

		For the years ended December 31,
		2025		2024
Tax effect of non-taxable income and non-deductible expenses:
Tax exempt income		$(617,013)		$(472,756)
Investment loss		6,628,739		370,227
Dividend income		(224,961)		(231,267)
Others		(32,566)		(610,092)
Basic tax		12,095		13,414
Deferred income tax related to changes in tax rates		(15,461)		68
Effect of different tax rates applicable to UMC and its subsidiaries		896,819		15,673
Taxes withheld in other jurisdictions		105,847		44,489
Others		337,299		330,887
Income tax expense recorded in profit or loss		$8,112,958		$9,113,457

c.Significant components of deferred income tax assets and liabilities were as follows:

		As of December 31,
		2025		2024
Deferred income tax assets
Depreciation		$2,692,711		$2,616,538
Loss carry-forward		2,626,791		34,089
Pension		167,955		281,385
Refund liabilities		647,274		318,156
Allowance for inventory valuation losses		971,023		726,023
Investment loss		361,611		314,227
Unrealized profit on intercompany sales		254,047		471,583
Others		801,225		448,488
Total deferred income tax assets		8,522,637		5,210,489
Deferred income tax liabilities
Depreciation		(981,906)		(4,387,572)
Investment gain		(9,804,821)		(2,785,950)
Amortizable assets		(273,908)		(283,111)
Others		(861,730)		(354,201)
Total deferred income tax liabilities		(11,922,365)		(7,810,834)
Net deferred income tax assets (liabilities)		$(3,399,728)		$(2,600,345)

76

d.Movement of deferred tax

		For the years ended December 31,
		2025		2024
Balance as of January 1		$(2,600,345)		$(143,077)
Amounts recognized in profit or loss during the period		(1,509,790)		(2,389,544)
Amounts recognized in other comprehensive income (loss)		484,523		81,317
Amounts recognized in equity		(17,661)		-
Exchange adjustments		243,545		(149,041)
Balance as of December 31		$(3,399,728)		$(2,600,345)

e.The Company is subject to taxation in Taiwan and other foreign jurisdictions. As of December 31, 2025, 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.

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

g.The information of the unused tax loss carry-forward for which no deferred income tax assets have been recognized were as follows:

UMC

The information on the unused tax loss carry-forwards arising in accordance with the relevant income tax regulations for the Controlled Foreign Company indicates that UMC did not recognize deferred income tax assets for such unused tax losses, which amounted to $11,127 million and $10,355 million as of December 31, 2025 and 2024, respectively, with carry-forward periods ranging from six to ten years.

Subsidiary

		As of December 31,
		2025		2024
Expiry period
1-5 years		$2,237,668		$19,761,573
6-10 years		1,687,059		11,407,986
Total		$3,924,727		$31,169,559

h.As of December 31, 2025 and 2024, deductible temporary differences for which no deferred income tax assets have been recognized amounted to NT$445 million and NT$3,727 million, respectively.

i.As of December 31, 2025 and 2024, the taxable temporary differences of unrecognized deferred tax liabilities associated with investments in subsidiaries amounted to nil and NT$28,072 million, respectively.

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(27)Earnings Per Share

a.Earnings per share-basic

		For the years ended December 31,
		2025		2024
Net income attributable to the parent company		$41,716,249		$47,210,930
Weighted-average number of ordinary shares for basic earnings per share (thousand shares)		12,485,461		12,436,599
Earnings per share-basic (NTD)		$3.34		$3.80

b.Earnings per share-diluted

		For the years ended December 31,
		2025		2024
Net income attributable to the parent company		$41,716,249		$47,210,930
Weighted-average number of ordinary shares for basic earnings per share (thousand shares)		12,485,461		12,436,599
Effect of dilution
Restricted stocks for employees		36,037		69,881
Employees’ compensation		85,792		122,400
Weighted-average number of ordinary shares after dilution (thousand shares)		12,607,290		12,628,880
Earnings per share-diluted (NTD)		$3.31		$3.74

(28)Reconciliation of Liabilities Arising from Financing Activities

For the year ended December 31, 2025:

						Non-cash changes
Items		As of January 1, 2025		Cash flows		Foreign exchange		Others (Note A)		As of December 31, 2025
Short-term loans		$8,515,000		$(106,531)		$303		$-		$8,408,772
Bonds payable (current portion included)		30,051,568		19,984,120		-		192,617		50,228,305
Long-term loans (current portion included)		36,476,909		(21,689,386)		(455,733)		-		14,331,790
Lease liabilities		6,419,016		(849,810)		(8,014)		439,654 (Note B)		6,000,846
Guarantee deposits (current portion included)		42,874,494		(780,352)		(1,226,308)		23		40,867,857 (Note C)

78

For the year ended December 31, 2024:

						Non-cash changes
Items		As of January 1, 2024		Cash Flows		Foreign exchange		Others (Note A)		As of December 31, 2024
Short-term loans		$13,530,000		$(5,015,000)		$-		$-		$8,515,000
Bonds payable (current portion included)		38,359,352		(8,500,465)		-		192,681		30,051,568
Long-term loans (current portion included)		22,883,344		13,178,434		415,131		-		36,476,909
Lease liabilities		5,393,187		(731,138)		92,617		1,664,350 (Note B)		6,419,016
Guarantee deposits (current portion included)		41,599,386		(572,321)		1,847,429		-		42,874,494 (Note C)

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

Note B: Mainly due to the addition to lease properties.

Note C: Guarantee deposits mainly consisted of deposits of capacity reservation.

7.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:

(1)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
PURIUMFIL INC.		Associate (Note)
TRANSLINK CAPITAL PARTNERS I, L.P.		Associate
PHOTRONICS DNP MASK CORPORATION		Other related party

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Note: 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.

(2)Significant Related Party Transactions

a.Operating transactions

Operating revenues

		For the years ended December 31,
		2025		2024
Associates		$4,386,941		$3,611,015

Accounts receivable, net

		As of December 31,
		2025		2024
Associates
FARADAY TECHNOLOGY CORP. and its Subsidiaries
FARADAY TECHNOLOGY CORP.		$336,736		$456,332
ARTERY TECHNOLOGY CORPORATION, LTD.		76,840		148,508
Others		15,943		493
Other associates		72,630		14,680
Total		$502,149		$620,013

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.

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b.Significant asset transactions

Acquisition of investments accounted for under the equity method

For the year ended December 31, 2025: None.

		Transaction underlying		Trading Volume (In thousands of shares)		For the year ended December 31, 2024
								Purchase price
Associates		Stock of FARADAY		1,723		$533,973

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

Acquisition of intangible assets

		Purchase price
		For the years ended December 31,
		2025		2024
FARADAY TECHNOLOGY CORP.		$306,819		$310,460

Disposal of subsidiary ownership

For the year ended December 31, 2025: None.

					For the year ended December 31, 2024
	Transaction underlying		Trading Capital Amount (In thousands of dollars)		Disposal price		Gain on disposal
Associates
Subsidiary of SIS - SIS SEMICONDUCTOR (SHANDONG) CO., LTD.	Ownership of UDS		RMB 30,000		$341,387		$352

On April 2, 2024, the Board of Directors of HEJIAN approved to dispose of its 100% of ownership interest in the subsidiary, UDS. The disposal was completed in August 2024.

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c.Others

Mask expenditure

		For the years ended December 31,
		2025		2024
Other related party		$2,377,931		$2,285,797

Other payables of mask expenditure

		As of December 31,
		2025		2024
Other related party		$780,692		$621,737

Cash dividends from Investee companies

		For the years ended December 31,
		2025		2024
Investments accounted for under the equity method
Associates		$592,309		$1,070,614
Financial Assets at Fair Value through Other Comprehensive Income
Subsidiary of UNIMICRON - Unimicron Holding Limited		1,231,242		-
Total		$1,823,551		$1,070,614

As of December 31, 2025 and 2024, cash dividends of NT$619 million and nil, respectively, had not yet been received and were accounted for as other receivables.

d.Key management personnel compensation

		For the years ended December 31,
		2025		2024
Short-term employee benefits		$920,442		$1,223,667
Post-employment benefits		2,358		2,603
Share-based payment		175,072		298,500
Others		351		417
Total		$1,098,223		$1,525,187

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8.ASSETS PLEDGED AS COLLATERAL

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

		Carrying Amount
		As of December 31,
Items		2025		2024		Party to which asset(s) was pledged		Purpose of pledge
Refundable Deposits (Time deposit)		$1,013,289		$1,009,000		Customs		Customs duty guarantee
Refundable Deposits (Time deposit)		248,061		237,051		Science Park Bureau		Collateral for land lease
Refundable Deposits (Time deposit)		18,647		$18,647		Science Park Bureau		Collateral for dormitory lease
Refundable Deposits (Time deposit)		25,589		64,950		National Property Administration, Ministry of Finance		Guarantee for the application of national non-public use land for development
Refundable Deposits (Time deposit)		-		8,118		Bureau of Land Administration, Tainan City Government		Guarantee for the application of national non-public use land for development
Refundable Deposits (Time deposit)		39,533		38,073		Liquefied Natural Gas Business Division, CPC Corporation, Taiwan		Energy resources guarantee
Refundable Deposits (Time deposit)		219,450		490,950		CTBC Bank Singapore Branch		Collateral for letter of credit
Buildings		69,303		4,377,176		Taiwan Cooperative Bank and Secured Syndicated Loans from China Development Bank and 6 others		Collateral for long-term loans
Machinery and equipment		501,090		4,057,201		Taiwan Cooperative Bank, Mega International Commercial Bank, KGI Bank, First Commercial Bank, Shanghai Commercial Bank, CTBC Bank and Secured Syndicated Loans from China Development Bank and 6 others		Collateral for long-term loans
Right-of-use assets		-		269,152		Secured Syndicated Loans from China Development Bank and 6 others		Collateral for long-term loans
Total		$2,134,962		$10,570,318

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9.SIGNIFICANT CONTINGENCIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(1)As of December 31, 2025, amounts available under unused letters of credit were NT$0.2 billion.

(2)As of December 31, 2025, the Company entrusted financial institutions to open performance guarantee, mainly related to the contract liabilities, customs tax and electricity supply guarantee, amounting to NT$1.5 billion.

(3)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 December 31, 2025, the portion of royalties and development fees not yet recognized was NT$1.4 billion.

(4)The Company entered into several construction contracts for the expansion of its operations. As of December 31, 2025, these construction contracts amounted to approximately NT$24.2 billion and the portion of the contracts not yet recognized was approximately NT$5.5 billion.

(5)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.

(6)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.

10.SIGNIFICANT DISASTER LOSS

None.

11.SIGNIFICANT SUBSEQUENT EVENTS

(1)From January 1 to February 25, 2026, the Company made repayments of the long-term loans in a total amount of NT$1,039 million which were classified as non-current liabilities.

(2)In January 2026, UMC subscribed to the newly issued shares in the capital increase of the Company's associate, UNIMICRON TECHNOLOGY CORP., amounting to NT$643 million.

(3)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. The tax-sparing clause provided as a preferential mechanism under the original agreement will, pursuant to the transition provisions of the renewed agreement, cease to apply after three taxable years from the date the Renewed Agreement becomes applicable. Given the Company’s Singapore branch, the aforementioned renewal in tax regulation is expected to have an impact on the Company's assets or liabilities related to income tax. The Company is currently unable to reasonably estimate the potential impact on its financial position and financial performance.

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12.OTHERS

(1)Categories of financial instruments

		As of December 31,
Financial Assets		2025		2024
Financial assets at fair value through profit or loss		$18,153,916		$18,456,932
Financial assets at fair value through other comprehensive income		13,774,749		17,209,328
Financial assets measured at amortized cost
Cash and cash equivalents (cash on hand excluded)		110,653,397		104,993,968
Receivables		33,731,393		34,994,933
Refundable deposits		1,643,661		1,992,400
Other financial assets		12,506,177		3,739,224
Total		$190,463,293		$181,386,785
Financial Liabilities
Financial liabilities at fair value through profit or loss		$57,163		$901,000
Financial liabilities measured at amortized cost
Short-term loans		8,408,772		8,515,000
Payables		45,297,553		42,259,798
Bonds payable (current portion included)		50,228,305		30,051,568
Long-term loans (current portion included)		14,331,790		36,476,909
Lease liabilities		6,000,846		6,419,016
Guarantee deposits (current portion included)		40,867,857		42,874,494
Total		$165,192,286		$167,497,785

(2)Financial risk management objectives and policies

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

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

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(3)Market risk

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

Foreign currency risk

The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a different currency from the Company’s functional currency) and the Company’s net investments in foreign subsidiaries.

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

The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Company’s profit is performed on significant monetary items denominated in foreign currencies as of the end of the reporting period. When NTD strengthens/weakens against USD by 10%, the profit for the years ended December 31, 2025 and 2024 decreases/increases by NT$534 million and NT$1,095 million, respectively. When RMB strengthens/weakens against USD by 10%, the profit for the years ended December 31, 2025 and 2024 decreases/increases by NT$175 million and NT$615 million, respectively. When JPY strengthens/weakens against USD by 10%, the profit for the years ended December 31, 2025 and 2024 decreases/increases by NT$206 million and NT$237 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.

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At the reporting dates, a change of 10 basis points of interest rate in a reporting period could cause the profit for the years ended December 31, 2025 and 2024 to decrease/increase by NT$23 million and NT$45 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 years ended December 31, 2025 and 2024 by NT$268 million and NT$261 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 years ended December 31, 2025 and 2024 by NT$531 million and NT$689 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.

(4)Credit risk management

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

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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 December 31, 2025 and 2024, accounts receivable from the top ten customers represent 61% and 66% of the total accounts receivable of the Company, respectively. The credit concentration risk of other accounts receivable is insignificant.

(5)Liquidity risk management

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

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

		As of December 31, 2025
		Less than 1 year		2 to 3 years		4 to 5 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 A)		17,033,209		25,278,203		7,958,238		2,104,403		52,374,053
Long-term loans (Note B)		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)

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		As of December 31, 2024
		Less than 1 year		2 to 3 years		4 to 5 years		> 5 years		Total
Non-derivative financial liabilities
Short-term loans		$8,683,215		$-		$-		$-		$8,683,215
Payables		42,136,632		-		-		-		42,136,632
Bonds payable (Note A)		340,976		16,675,030		12,146,745		2,118,683		31,281,434
Long-term loans		6,354,561		11,490,087		21,478,391		93,106		39,416,145
Lease liabilities		830,618		1,509,438		1,437,870		4,442,706		8,220,632
Guarantee deposits		921,134		4,571,633		27,522,150		9,859,577		42,874,494
Total		$59,267,136		$34,246,188		$62,585,156		$16,514,072		$172,612,552
Derivative financial liabilities
Forward exchange contracts
Net settlement -outflow		$(1,039)		$-		$-		$-		$(1,039)

Note A: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$4,630 million and NT$5,893 million as of December 31, 2025 and 2024, respectively. Please refer to Note 6(13) for the terms of redemption.

Note B:For the long-term loans with contractual maturity within 2 to 3 years in 2025, the Company made repayments in the amounts of NT$1,039 million from January 1 to February 25, 2026.

(6)Foreign currency risk management

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

As of December 31, 2025

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

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As of December 31, 2024

Type		Notional Amount		Contract Period
Forward exchange contracts		Sell USD 24 million		December 27, 2024 – January 21, 2025

(7)Fair value of financial instruments

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

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

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

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

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.

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

		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 December 31, 2024
		Level 1		Level 2		Level 3		Total
Financial assets:
Financial assets at fair value through profit or loss, current		$606,016		$2		$-		$606,018
Financial assets at fair value through profit or loss, noncurrent		5,703,325		18,800		12,128,789		17,850,914
Financial assets at fair value through other comprehensive income, current		5,893,377		-		-		5,893,377
Financial assets at fair value through other comprehensive income, noncurrent		7,879,553		-		3,436,398		11,315,951
Financial liabilities:
Financial liabilities at fair value through profit or loss, current		-		1,039		899,961		901,000

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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 years ended December 31, 2025 and 2024, 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 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)		(38,312)		298,725		(565,008)		194		(2,760)		(307,161)		-		-		-
Recognized in other comprehensive income (loss)		-		-		-		-		-		-		(270,121)		(2,072)		(272,193)
Acquisition		264,125		281,776		292,459		147,571		9,903		995,834		150,000		-		150,000
Disposal		(10,142)		(66,319)		(372,135)		(103,104)		-		(551,700)		-		-		-
Return of capital		-		-		(19,777)		-		-		(19,777)		(160,659)		-		(160,659)
Transfer out of Level 3		(194,460)		-		-		-		-		(194,460)		-		-		-
Exchange effect		(29,257)		(77,041)		(119,443)		(775)		57		(226,459)		-		-		-
As of December 31, 2025		$3,000,137		$3,841,074		$4,812,543		$98,652		$72,660		$11,825,066		$2,950,738		$202,808		$3,153,546

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Financial liabilities at fair value through profit or loss

Derivatives

As of January 1, 2025

$899,961

Recognized in loss (profit)

(845,310)

As of December 31, 2025

$54,651

		Financial assets at fair value through profit or loss												Financial assets at fair value through other comprehensive income
		Common stock		Preferred stock		Funds		Convertible bonds		Others		Total		Common stock		Preferred stock		Total
As of January 1, 2024		$3,036,255		$2,786,634		$4,274,896		$-		$153,300		$10,251,085		$3,062,325		$175,063		$3,237,388
Recognized in profit (loss)		(119,584)		187,131		128,617		3,120		4,140		203,424		-		-		-
Recognized in other comprehensive income (loss)		-		-		-		-		-		-		104,499		29,817		134,316
Acquisition		505,538		639,779		1,133,312		51,191		-		2,329,820		64,694		-		64,694
Disposal		(78,234)		(311,066)		(81,371)		-		(96,312)		(566,983)		-		-		-
Return of capital		(83)		-		(12,405)		-		-		(12,488)		-		-		-
Transfer out of Level 3		(377,121)		-		-		-		-		(377,121)		-		-		-
Exchange effect		41,412		101,455		153,398		455		4,332		301,052		-		-		-
As of December 31, 2024		$3,008,183		$3,403,933		$5,596,447		$54,766		$65,460		$12,128,789		$3,231,518		$204,880		$3,436,398

Financial liabilities at fair value through profit or loss

Derivatives

As of January 1, 2024

$1,019,362

Recognized in loss (profit)

(119,401)

As of December 31, 2024

$899,961

The total profit (loss) of NT$(311) million and NT$128 million for the years ended December 31, 2025 and 2024, 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.

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The total profit (loss) of NT$845 million and NT$119 million for the years ended December 31, 2025 and 2024, 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 December 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% - 60%		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 year ended December 31, 2025 by NT$337 million and NT$306 million, respectively, and decrease/increase the Company’s other comprehensive income (loss) for the year ended December 31, 2025 by NT$213 million.
Fund		Net asset value approach		N/A		N/A		N/A		N/A
Embedded derivatives in exchangeable bonds		Binomial tree valuation model		Volatility		25.06%		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 year ended December 31, 2025 by NT$41 million and NT$31 million, respectively.

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As of December 31, 2024
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 year ended December 31, 2024 by NT$309 million and NT$244 million, respectively, and decrease/increase the Company’s other comprehensive income (loss) for the year ended December 31, 2024 by NT$239 million.
Fund		Net asset value approach		N/A		N/A		N/A		N/A
Convertible bonds		Binomial tree valuation model		Volatility		54.85%		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 year ended December 31, 2024 by NT$0.3 million and NT$0.4 million, respectively.
Embedded derivatives in exchangeable bonds		Binomial tree valuation model		Volatility		28.06%		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 year ended December 31, 2024 by NT$97 million and NT$113 million, respectively.

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

The fair value of bonds payable is estimated by the market price or using a valuation model. The model uses market-based observable inputs including share price, 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 December 31, 2025

				Fair value measurements during 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 December 31, 2024

				Fair value measurements during reporting period using
Items		Fair value		Level 1		Level 2		Level 3		Carrying amount
Bonds payable (current portion included)		$30,020,005		$24,409,952		$5,610,053		$-		$30,051,568
Long-term loans (current portion included)		36,476,909		-		36,476,909		-		36,476,909

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

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

	As of December 31,
	2025						2024
	Foreign Currency (thousand)		Exchange Rate		NTD (thousand)		Foreign Currency (thousand)		Exchange Rate		NTD (thousand)
Financial Assets
Monetary items
USD:NTD	$1,006,030		31.35		$31,539,035		$1,135,303		32.73		$37,158,473
SGD:USD	208,988		0.7764		5,086,811		169,091		0.7348		4,066,659
JPY:USD	4,852,832		0.0063		958,459		3,508,746		0.0064		734,984
USD:JPY	121,249		156.54		3,769,498		119,794		158.17		3,941,156
USD:RMB	93,934		7.0288		2,948,653		351,316		7.1884		11,245,592
Non-Monetary items
USD:NTD	179,988		31.35		5,642,615		198,151		32.73		6,485,482
Financial Liabilities
Monetary items
USD:NTD	833,119		31.45		26,201,605		798,182		32.83		26,204,313
SGD:USD	168,204		0.7797		4,124,630		162,496		0.7380		3,937,045
JPY:USD	5,809,127		0.0064		1,169,261		4,362,898		0.0065		931,021
USD:JPY	58,281		156.54		1,849,302		49,095		158.17		1,647,048
USD:RMB	36,432		7.0288		1,156,418		159,134		7.1884		5,151,076

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.

(9)Significant intercompany transactions among consolidated entities are disclosed in Attachment 1.

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(10)Capital management

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

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

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

The Company’s strategy, which is unchanged for the reporting periods, is to maintain a reasonable ratio in order to raise capital with reasonable cost. The debt to capital ratios as of December 31, 2025 and 2024 were as follows:

		As of December 31,
		2025		2024
Total liabilities		$199,140,569		$192,015,673
Less: Cash and cash equivalents		(110,660,052)		(105,000,226)
Net debt		88,480,517		87,015,447
Total equity		379,855,440		378,185,004
Total capital		$468,335,957		$465,200,451
Debt to capital ratios		18.89%		18.70%

13.ADDITIONAL DISCLOSURES

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

a.Financing provided to others for the year ended December 31, 2025: Please refer to Attachment 2.

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b.Endorsement/Guarantee provided to others for the year ended December 31, 2025: Please refer to Attachment 3.

c.Significant securities held as of December 31, 2025 (excluding subsidiaries, associates and joint venture): Please refer to Attachment 4.

d.Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million or 20 percent of the capital stock for the year ended December 31, 2025: Please refer to Attachment 5.

e.Receivables from related parties with amounts exceeding the lower of NT$100 million or 20 percent of capital stock as of December 31, 2025: Please refer to Attachment 6.

f.Names, locations and related information of investees as of December 31, 2025 (excluding investment in Mainland China): Please refer to Attachment 7.

(2)Investment in Mainland China

a.Investee company name, main businesses and products, total amount of capital, method of investment, accumulated inflow and outflow of investments from Taiwan, net income (loss) of investee company, percentage of ownership, investment income (loss), carrying amount of investments, cumulated inward remittance of earnings and limits on investment in Mainland China: Please refer to Attachment 8.

b.Directly or indirectly significant transactions through third regions with the investees in Mainland China, including price, payment terms, unrealized gain or loss, and other events with significant effects on the operating results and financial condition: Please refer to Attachment 1, 3 and 5.

14.OPERATING SEGMENT INFORMATION

(1)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.

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(2)Geographic non-current assets information

		As of December 31,
		2025		2024
Taiwan		$121,675,444		$143,009,330
Singapore		124,957,211		107,247,569
China (includes Hong Kong)		31,711,159		38,271,386
Japan		10,281,205		12,235,336
Others		48,814		61,643
Total		$288,673,833		$300,825,264

Non-current assets include property, plant and equipment, right-of-use assets, intangible assets, prepayment for equipment and other noncurrent assets-others.

(3)Major customers

Individual customers accounting for at least 10% of operating revenues for the years ended December 31, 2025 and 2024 were as follows:

		For the years ended December 31,
		2025		2024
Customer A		$28,005,843		$24,180,535

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ATTACHMENT 1 (Significant intercompany transactions between consolidated entities)
(Amount in thousand, Currency denomination in NTD or in foreign currencies)
For the year ended December 31, 2025
								Transactions
No. (Note 1)		Related party		Counterparty		Relationship with the Company (Note 2)		Account		Amount		Collection periods (Note 3)		Percentage of consolidated operating revenues or consolidated total assets (Note 4)
0		UNITED MICROELECTRONICS CORPORATION		UMC GROUP (USA)		1		Sales		$52,901,807		Net 60 days		22%
0		UNITED MICROELECTRONICS CORPORATION		UMC GROUP (USA)		1		Accounts receivable		5,567,464		-		1%
0		UNITED MICROELECTRONICS CORPORATION		UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.		1		Sales		1,157,346 (Note 5)		Net 30 days		0%
0		UNITED MICROELECTRONICS CORPORATION		UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.		1		Accounts receivable		5,016		-		0%
1		UNITED SEMICONDUCTOR JAPAN CO., LTD.		UMC GROUP (USA)		3		Sales		5,263,816		Net 60 days		2%
1		UNITED SEMICONDUCTOR JAPAN CO., LTD.		UMC GROUP (USA)		3		Accounts receivable		959,612		-		0%
2		UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.		UMC GROUP (USA)		3		Sales		423,720		Net 60 days		0%
2		UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.		UMC GROUP (USA)		3		Accounts receivable		68,434		-		0%
3		WAVETEK MICROELECTRONICS CORPORATION		UMC GROUP (USA)		3		Sales		375,894		Net 60 days		0%
3		WAVETEK MICROELECTRONICS CORPORATION		UMC GROUP (USA)		3		Accounts receivable		79,412		-		0%
Note 1: UMC and its subsidiaries are coded as follows:              1. UMC is coded "0".              2. The subsidiaries are coded consecutively beginning from "1" in the order presented in the table above.
Note 2: Transactions are categorized as follows:              1. The holding company to subsidiary.              2. Subsidiary to holding company.              3. Subsidiary to subsidiary.
Note 3: The sales price to the above related parties was determined through mutual agreement in reference to market conditions.
Note 4: The percentage with respect to the consolidated asset/liability for transactions of balance sheet items are based on each item's balance at period-end.              For profit or loss items, cumulative balances are used as basis.
Note 5: UMC authorized technology licenses to its subsidiary, UNITED SEMICONDUCTOR (XIAMEN) CO., LTD., in the amount of USD 0.35 billion which was recognized as deferred revenue.              Since it was a downstream transaction, the deferred revenue would be realized over time.

101

ATTACHMENT 2 (Financing provided to others for the year ended December 31, 2025)

(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

102

ATTACHMENT 3 (Endorsement/Guarantee provided to others for the year ended December 31, 2025)

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

UNITED MICROELECTRONICS CORPORATION

Receiving party

No. (Note 1)

Endorsor/Guarantor

Company name

Relationship (Note 2)

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

Maximum balance for the period

Ending balance

Actual amount 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 (Note 4)

0

UNITED MICROELECTRONICS CORPORATION

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

2

$170,895,719

$8,753,360

$- (Note 5)

$- (Note 5)

$-

-

$170,895,719

HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.

Receiving party

No. (Note 1)

Endorsor/Guarantor

Company name

Relationship (Note 2)

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

Maximum balance for the period

Ending balance

Actual amount 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 (Note 6)

1

HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

6

$20,803,005

$1,482,932

$-

$-

$-

-

$20,803,005

Note 1: The parent company and its subsidiaries are coded as follows:               1. The parent company is coded "0".               2. The subsidiaries are coded consecutively beginning from "1" in the order presented in the table above.

Note 2: According to the "Guidelines Governing the Preparation of Financial Reports by Securities Issuers" issued by the R.O.C. Securities and Futures Bureau, receiving parties should be disclosed as one of the following:               1. A company with which it does business.               2. A company in which the public company directly and indirectly holds more than 50% of the voting shares.               3. A company that directly and indirectly holds more than 50% of the voting shares in the public company.               4. A company in which the public company holds, directly or indirectly, 90% or more of the voting shares.               5. A company that fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.               6. A company that all capital contributing shareholders make endorsements/guarantees for their jointly invested company in proportion to their shareholding percentages.               7. Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

Note 3: The amount of endorsements/guarantees shall not exceed 45% of the net worth of endorsor/guarantor, and the ceilings on the amount of endorsements/guarantees for any single entity are as follows:               1. The amount of endorsements/guarantees for any single entity shall not exceed 45% of net worth of endorsor/guarantor.               2. The amount of endorsements/guarantees for a company which endorsor/guarantor does business with, except the ceiling rules abovementioned shall not exceed the needed amounts arising from                   business dealings which is the higher amount of total sales or purchase transactions between endorsor/guarantor and the receiving party.              The aggregate amount of endorsements/guarantees that the Company as a whole is permitted to make shall not exceed 45% of the Company's net worth, and the aggregate amount of              endorsements/guarantees for any single entity shall not exceed 45% of the Company's net worth.

Note 4: Limit of total guarantee/endorsement amount shall not exceed 45% of UMC's net assets value as of December 31, 2025.

Note 5: The syndicated loan of UNITED SEMICONDUCTOR (XIAMEN) CO., LTD., provided by banks including China Development Bank, was fully repaid in October 2025.

Note 6: Limit of total endorsed/guaranteed amount shall not exceed 45% of HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.'s net assets value as of December 31, 2025.              The amount of endorsements/guarantees for any single entity shall not exceed 45% of net worth of HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.'s net assets value as of December 31, 2025.              The aggregate amount of endorsements/guarantees that the Company as a whole is permitted to make shall not exceed 45% of the Company's net worth, and the aggregate amount of              endorsements/guarantees for any single entity shall not exceed 45% of the Company's net worth.

103

ATTACHMENT 4 (Significant securities held as of December 31, 2025) (Excluding subsidiaries, associates and joint ventures)
(Amount in thousand, Currency denomination in NTD or in foreign currencies)
										December 31, 2025
Investor Company		Type of securities		Name of securities		Relationship		Financial statement account		Units (thousand)/ bonds/ shares (thousand)		Carrying amount			Percentage of ownership (%)		Fair value/ Net assets value			Shares as collateral (thousand)
UNITED MICROELECTRONICS CORPORATION		Stock		PIXART IMAGING, INC.		-		Financial assets at fair value through profit or loss, current		1,600			$324,000		1.07			$324,000		None
		Fund		TGVEST ASIA PARTNERS II(TAIWAN), L.P.		-		Financial assets at fair value through profit or loss, noncurrent		-			744,546		-			744,546		None
		Stock		HOLTEK SEMICONDUCTOR INC.		-		Financial assets at fair value through profit or loss, noncurrent		22,144			822,659		9.61			822,659		None
		Fund		GRANDFULL CONVERGENCE INNOVATION GROWTH FUND, L.P.		-		Financial assets at fair value through profit or loss, noncurrent		-			319,276		-			319,276		None
		Stock		UNITED INDUSTRIAL GASES CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		16,680			1,354,725		7.66			1,354,725		None
		Stock		OCTTASIA INVESTMENT HOLDING INC.		-		Financial assets at fair value through profit or loss, noncurrent		4,530			230,065		6.29			230,065		None
		Stock		NOVATEK MICROELECTRONICS CORP.		-		Financial assets at fair value through other comprehensive income, current		12,381			4,630,441		2.03			4,630,441		None
		Stock		UNIMICRON HOLDING LIMITED		Associate		Financial assets at fair value through other comprehensive income, noncurrent		15,129			1,973,011		10.57			1,973,011		None
		Stock		ITE TECH. INC.		-		Financial assets at fair value through other comprehensive income, noncurrent		13,960			1,605,398		8.41			1,605,398		None
		Stock		KAI-HONG ENERGY CO., LTD.		-		Financial assets at fair value through other comprehensive income, noncurrent		6,469			67,347		3.40			67,347		None
		Stock		CHIPBOND TECHNOLOGY CORPORATION		-		Financial assets at fair value through other comprehensive income, noncurrent		53,164			2,865,530		7.14			2,865,530		None
		Stock		TAIWAN SMART ELECTRICITY & ENERGY CO., LTD.		-		Financial assets at fair value through other comprehensive income, noncurrent		15,000			147,450		9.52			147,450		None
		Stock		NOVATEK MICROELECTRONICS CORP.		-		Financial assets at fair value through other comprehensive income, noncurrent		4,064			1,519,834		0.67			1,519,834		None
		Stock-preferred stock		MTIC HOLDINGS PTE. LTD.		Associate		Financial assets at fair value through other comprehensive income, noncurrent		12,000			202,808		-			202,808		None
FORTUNE VENTURE CAPITAL CORP.		Stock		TOPOINT TECHNOLOGY CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		4,416			839,069		3.11			839,069		None
		Stock		CENTERA PHOTONICS INC.		-		Financial assets at fair value through profit or loss, noncurrent		1,762			241,234		2.71			241,234		None
		Stock		TAIWAN SEMICONDUCTOR CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		6,741			347,836		2.56			347,836		None
		Stock		CHIPBOND TECHNOLOGY CORPORATION		-		Financial assets at fair value through profit or loss, noncurrent		13,489			727,030		1.81			727,030		None
		Stock-preferred stock		EJOULE INTERNATIONAL LTD.		-		Financial assets at fair value through profit or loss, noncurrent		23,909			162,829		-			162,829		None
		Fund		TRANSLINK CAPITAL PARTNERS IV, L.P.		-		Financial assets at fair value through profit or loss, noncurrent		-			180,999		-			180,999		None
		Fund		TRANSLINK CAPITAL PARTNERS V, L.P.		-		Financial assets at fair value through profit or loss, noncurrent		-			142,279		-			142,279		None
		Stock		SHIN-ETSU HANDOTAI TAIWAN CO., LTD.		-		Financial assets at fair value through other comprehensive income, noncurrent		10,500			762,930		7.00			762,930		None
TLC CAPITAL CO., LTD.		Stock		SIMPLO TECHNOLOGY CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		1,422			510,671		0.77			510,671		None
		Fund		TRANSLINK CAPITAL PARTNERS III, L.P.		-		Financial assets at fair value through profit or loss, noncurrent		-			134,291		-			134,291		None
		Stock-preferred stock		EJOULE INTERNATIONAL LTD.		-		Financial assets at fair value through profit or loss, noncurrent		50,767			394,839		-			394,839		None
UMC CAPITAL CORP.		Stock		OCTTASIA INVESTMENT HOLDING INC.		-		Financial assets at fair value through profit or loss, noncurrent		5,594		USD	9,062		7.76		USD	9,062		None
		Stock		ALL-STARS SP IV LTD.		-		Financial assets at fair value through profit or loss, noncurrent		7		USD	6,753		5.03		USD	6,753		None
		Stock-preferred stock		ATSCALE, INC.		-		Financial assets at fair value through profit or loss, noncurrent		14,129		USD	8,185		-		USD	8,185		None
		Stock-preferred stock		SIFOTONICS TECHNOLOGIES CO., LTD.		-		Financial assets at fair value through profit or loss, noncurrent		3,500		USD	7,730		-		USD	7,730		None
		Stock-preferred stock		SILICON BOX PTE. LTD.		-		Financial assets at fair value through profit or loss, noncurrent		156		USD	7,296		-		USD	7,296		None
		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

104

ATTACHMENT 4 (Significant securities held as of December 31, 2025) (Excluding subsidiaries, associates and joint ventures)

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

December 31, 2025

Investor Company

Type of securities

Name of securities

Relationship

Financial statement account

Units (thousand)/ bonds/ shares (thousand)

Carrying amount

Percentage of ownership (%)

Fair value/ Net assets value

Shares as collateral (thousand)

UMC CAPITAL CORP.

Fund

TRANSLINK CAPITAL PARTNERS III, L.P.

-

Financial assets at fair value through profit or loss, noncurrent

-

USD

11,582

-

USD

11,582

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

17,320

-

USD

17,320

None

Fund

TRANSLINK CAPITAL PARTNERS V, L.P.

-

Financial assets at fair value through profit or loss, noncurrent

-

USD

3,026

-

USD

3,026

None

Fund

7V AI CAPITAL LLC

-

Financial assets at fair value through profit or loss, noncurrent

-

USD

9,644

-

USD

9,644

None

105

ATTACHMENT 5 (Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million or 20 percent of capital stock for the year ended December 31, 2025)

(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

Relationship

Purchases (Sales)

Amount

Percentage of total purchases (sales)

Term

Unit price

Term

Balance

Percentage of total receivables (payable)

Note

UMC GROUP (USA)

Subsidiary

Sales

$52,901,807

29

%

Net 60 days

N/A

N/A

$5,567,464

24

%

FARADAY TECHNOLOGY CORPORATION

Associate

Sales

1,667,680

1

%

Month-end 60 days

N/A

N/A

262,828

1

%

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

Subsidiary

Sales

1,157,346

1

%

Net 30 days

N/A

N/A

5,016

0

%

UNITEDDS SEMICONDUCTOR (SHANDONG) CO., LTD.

Associate

Sales

743,238

0

%

Net 30 days

N/A

N/A

21,732

0

%

ARTERY TECHNOLOGY CORPORATION, LTD.

Associate

Sales

582,172

0

%

Month-end 60 days

N/A

N/A

38,268

0

%

UMC GROUP (USA)

Transactions

Details of non-arm's length transaction

Notes and accounts receivable (payable)

Counterparty

Relationship

Purchases (Sales)

Amount

Percentage of total purchases (sales)

Term

Unit price

Term

Balance

Percentage of total receivables (payable)

Note

UNITED MICROELECTRONICS CORPORATION

Parent company

Purchases

USD

1,651,960

90

%

Net 60 days

N/A

N/A

USD

175,426

82

%

UNITED SEMICONDUCTOR JAPAN CO., LTD.

Associate

Purchases

USD

163,665

9

%

Net 60 days

N/A

N/A

USD

29,831

14

%

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

Associate

Purchases

USD

12,965

1

%

Net 60 days

N/A

N/A

USD

2,180

1

%

WAVETEK MICROELECTRONICS CORPORATION

Associate

Purchases

USD

9,890

0

%

Net 60 days

N/A

N/A

USD

1,885

1

%

UNITED SEMICONDUCTOR JAPAN CO., LTD.

Transactions

Details of non-arm's length transaction

Notes and accounts receivable (payable)

Counterparty

Relationship

Purchases (Sales)

Amount

Percentage of total purchases (sales)

Term

Unit price

Term

Balance

Percentage of total receivables (payable)

Note

UMC GROUP (USA)

Associate

Sales

JPY

25,234,017

34

%

Net 60 days

N/A

N/A

JPY

4,831,881

32

%

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

Transactions

Details of non-arm's length transaction

Notes and accounts receivable (payable)

Counterparty

Relationship

Purchases (Sales)

Amount

Percentage of total purchases (sales)

Term

Unit price

Term

Balance

Percentage of total receivables (payable)

Note

UMC GROUP (USA)

Associate

Sales

RMB

97,782

2

%

Net 60 days

N/A

N/A

RMB

15,323

3

%

FARADAY TECHNOLOGY CORPORATION

Associate

Sales

RMB

96,579

2

%

Month-end 60 days

N/A

N/A

RMB

15,926

3

%

UNITEDDS SEMICONDUCTOR (SHANDONG) CO., LTD.

Associate

Sales

RMB

87,961

1

%

Month-end 30 days

N/A

N/A

RMB

914

0

%

WAVETEK MICROELECTRONICS CORPORATION

Transactions

Details of non-arm's length transaction

Notes and accounts receivable (payable)

Counterparty

Relationship

Purchases (Sales)

Amount

Percentage of total purchases (sales)

Term

Unit price

Term

Balance

Percentage of total receivables (payable)

Note

UMC GROUP (USA)

Associate

Sales

$375,894

21

%

Net 60 days

N/A

N/A

$79,412

41

%

106

ATTACHMENT 5 (Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million or 20 percent of capital stock for the year ended December 31, 2025)

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

HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.

Transactions

Details of non-arm's length transaction

Notes and accounts receivable (payable)

Counterparty

Relationship

Purchases (Sales)

Amount

Percentage of total purchases (sales)

Term

Unit price

Term

Balance

Percentage of total receivables (payable)

Note

UNITEDDS SEMICONDUCTOR (SHANDONG) CO., LTD.

Associate

Sales

RMB

30,162

1

%

Month-end 30 days

N/A

N/A

RMB

2,155

1

%

107

ATTACHMENT 6 (Receivables from related parties with amounts exceeding the lower of NT$100 million or 20 percent of capital stock as of December 31, 2025)

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

UNITED MICROELECTRONICS CORPORATION

Ending balance

Overdue receivables

Counterparty

Relationship

Notes receivable

Accounts receivable

Other receivables

Total

Turnover rate (times)

Amount

Collection status

Amount received in subsequent period

Loss allowance

UMC GROUP (USA)

Subsidiary

$-

$5,567,464

$5,690

$5,573,154

8.44

$332

-

$5,577,234

$4,080

FARADAY TECHNOLOGY CORPORATION

Associate

-

262,828

7

262,835

7.90

-

-

156,702

1

UNITED SEMICONDUCTOR JAPAN CO., LTD.

Ending balance

Overdue receivables

Counterparty

Relationship

Notes receivable

Accounts receivable

Other receivables

Total

Turnover rate (times)

Amount

Collection status

Amount received in subsequent period

Loss allowance

UMC GROUP (USA)

Associate

JPY

-

JPY

4,831,881

JPY

-

JPY

4,831,881

6.11

JPY

-

-

JPY

4,831,881

JPY

-

108

ATTACHMENT 7 (Names, locations and related information of investee companies as of December 31, 2025) (Not including investment in Mainland China)
(Amount in thousand, Currency denomination in NTD or in foreign currencies)
								Initial Investment						Investment as of December 31, 2025
Investor Company		Investee company		Address		Main businesses and products		Ending balance			Beginning balance			Number of shares (thousand)		Percentage of ownership (%)		Carrying amount			Net income (loss) of investee company			Investment income (loss) recognized			Note
UNITED MICROELECTRONICS CORPORATION		UMC GROUP (USA)		USA		IC Sales		USD	16,438		USD	16,438		16,438		100.00			$2,600,805			$173,775			$173,775
		UNITED MICROELECTRONICS (EUROPE) B.V.		The Netherlands		Marketing support activities		USD	5,421		USD	5,421		9		100.00			181,119			6,930			6,930
		UMC CAPITAL CORP.		Cayman Islands		Investment holding		USD	103,500		USD	103,500		93,663		100.00			5,090,204			(641,402)			(641,402)
		GREEN EARTH LIMITED		Samoa		Investment holding		USD	1,549,000		USD	1,549,000		1,549,000		100.00			34,877,730			7,328,545			7,328,545
		TLC CAPITAL CO., LTD.		Taipei City, Taiwan		Venture capital			4,610,000			4,610,000		473,530		100.00			4,920,298			(171,369)			(171,369)
		UMC INVESTMENT (SAMOA) LIMITED		Samoa		Investment holding		USD	1,520		USD	1,520		1,520		100.00			49,041			(395)			(395)
		FORTUNE VENTURE CAPITAL CORP.		Taipei City, Taiwan		Consulting and planning for venture capital			3,440,053			3,440,053		585,462		100.00			8,334,650			1,007,104			1,007,104
		UMC KOREA CO., LTD.		Korea		Marketing support activities		KRW	550,000		KRW	550,000		110		100.00			29,430			1,659			1,659
		OMNI GLOBAL LIMITED		Samoa		Investment holding		USD	4,300		USD	4,300		4,300		100.00			877,396			(95,973)			28,711
		SINO PARAGON LIMITED		Samoa		Investment holding		USD	2,600		USD	2,600		2,600		100.00			132,309			(36,205)			(36,205)
		BEST ELITE INTERNATIONAL LIMITED		British Virgin Islands		Investment holding		USD	309,102		USD	309,102		664,966		100.00			46,709,292			7,500,621			7,500,621
		UNITED SEMICONDUCTOR JAPAN CO., LTD.		Japan		Sales and manufacturing of integrated circuits		JPY	64,421,068		JPY	64,421,068		116,247		100.00			25,968,556			1,234,925			1,234,925
		WAVETEK MICROELECTRONICS CORPORATION		Hsinchu County, Taiwan		Sales and manufacturing of integrated circuits			1,903,741			1,903,741		148,112		78.49			211,270			(893,761)			(703,707)
		MTIC HOLDINGS PTE. LTD.		Singapore		Investment holding		SGD	12,000		SGD	12,000		12,000		45.44			-			(41,146)			-
		UNITECH CAPITAL INC.		British Virgin Islands		Investment holding		USD	21,000		USD	21,000		21,000		42.00			524,403			(20,543)			(8,628)
		TRIKNIGHT CAPITAL CORPORATION		Taipei City, Taiwan		Investment holding			943,148			1,109,500		131,534		40.00			759,446			(766,664)			(306,666)
		HSUN CHIEH INVESTMENT CO., LTD.		Taipei City, Taiwan		Investment holding			307,448			317,045		1,098,863		36.49			12,792,773			3,775,377			1,377,559
		YANN YUAN INVESTMENT CO., LTD.		Taipei City, Taiwan		Investment holding			2,300,000			2,300,000		234,600		26.78			13,722,026			1,527,250			408,926
		SILICON INTEGRATED SYSTEMS CORP.		Hsinchu City, Taiwan		Research, manufacturing and sales of integrated circuits			3,527,742			3,527,742		92,648		17.99			3,562,947			788,226			134,428
		FARADAY TECHNOLOGY CORPORATION		Hsinchu City, Taiwan		Design of application-specific integrated circuit			572,891			572,891		35,963		13.80			2,496,550			731,331			107,147
		UNIMICRON TECHNOLOGY CORP.		Taoyuan City, Taiwan		Manufacturing of PCB			2,775,835			2,775,835		198,878		13.01			14,428,352			6,673,144			724,884

109

ATTACHMENT 7 (Names, locations and related information of investee companies as of December 31, 2025) (Not including investment in Mainland China)
(Amount in thousand, Currency denomination in NTD or in foreign currencies)
								Initial Investment						Investment as of December 31, 2025
Investor Company		Investee company		Address		Main businesses and products		Ending balance			Beginning balance			Number of shares (thousand)		Percentage of ownership (%)		Carrying amount			Net income (loss) of investee company			Investment income (loss) recognized			Note
FORTUNE VENTURE CAPITAL CORP.		TERA ENERGY DEVELOPMENT CO., LTD.		Hsinchu City, Taiwan		Energy Technical Services			$100,752			$100,752		10,858		92.64			$157,992			$38,592			$35,709
		PURIUMFIL INC.		Hsinchu City, Taiwan		Chemicals and filtration products & Microcontamination control service			-			10,000		-		-			-			(4,068)			(1,627)		Note 1
		UNITED LED CORPORATION HONG KONG LIMITED		Hongkong		Investment holding		USD	22,500		USD	22,500		22,500		25.14			122,982			80,869			20,330
		WAVETEK MICROELECTRONICS CORPORATION		Hsinchu County, Taiwan		Sales and manufacturing of integrated circuits			8,856			8,856		1,194		0.63			2,261			(893,761)			(5,671)
TLC CAPITAL CO., LTD.		SOARING CAPITAL CORP.		Samoa		Investment holding		USD	900		USD	900		900		100.00			11,671			(1,524)			(1,524)
		HSUN CHIEH CAPITAL CORP.		Samoa		Investment holding		USD	8,000		USD	8,000		8,000		40.00			233,438			(55,679)			(22,272)
		VSENSE CO., LTD.		Taipei City, Taiwan		Medical devices, measuring equipment, reagents and consumables			-			95,916		-		-			-			(6,927)			-		Note 2
UMC CAPITAL CORP.		TRANSLINK CAPITAL PARTNERS I, L.P.		Cayman Islands		Investment holding		USD	-		USD	3,473		-		-		USD	-		USD	(6,122)		USD	(509)		Note 3
TERA ENERGY DEVELOPMENT CO., LTD.		EVERRICH ENERGY INVESTMENT (HK) LIMITED		Hongkong		Investment holding		USD	460		USD	460		460		100.00			22,823			3,719			3,719		Note 1
WAVETEK MICROELECTRONICS CORPORATION		WAVETEK MICROELECTRONICS CORPORATION (USA)		USA		Marketing service		USD	60		USD	60		60		100.00			2,723			(232)			(232)
BEST ELITE INTERNATIONAL LIMITED		INFOSHINE TECHNOLOGY LIMITED		British Virgin Islands		Investment holding		USD	354,000		USD	354,000		-		100.00			47,144,698			7,501,908			7,501,908
INFOSHINE TECHNOLOGY LIMITED		OAKWOOD ASSOCIATES LIMITED		British Virgin Islands		Investment holding		USD	354,000		USD	354,000		-		100.00			47,144,698			7,501,908			7,501,908
OMNI GLOBAL LIMITED		UNITED MICROTECHNOLOGY CORPORATION (CALIFORNIA)		USA		Research & Development		USD	1,000		USD	1,000		0		100.00			52,718			5,044			5,044
		ECP VITA PTE. LTD.		Singapore		Insurance		USD	9,000		USD	9,000		9,000		100.00			680,580			(100,164)			(100,164)
GREEN EARTH LIMITED		UNITED MICROCHIP CORPORATION		Cayman Islands		Investment holding		USD	1,546,050		USD	1,546,050		1,546,050		100.00			35,602,225			7,329,252			7,329,252
Note 1: In August 2025, the Board of Directors of TERA ENERGY resolved to merge with PURIUMFIL INC., with TERA ENERGY as the surviving company. The effective date of merger is October 3, 2025.
Note 2: VSENSE has ceased operations. TLC CAPITAL CO., LTD. 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.
Note 3: TRANSLINK CAPITAL PARTNERS I, L.P. was dissolved in April 2025.

110

ATTACHMENT 8 (Investment in Mainland China as of December 31, 2025)

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

Investment flows

Investee company

Main businesses and products

Total amount of paid-in capital

Method of investment (Note 1)

Accumulated outflow of investment from Taiwan as of January 1, 2025

Outflow

Inflow

Accumulated outflow of investment from Taiwan as of December 31, 2025

Net income (loss) of investee company

Percentage of ownership

Investment income (loss) recognized (Note 2)

Carrying amount as of December 31, 2025

Accumulated inward remittance of earnings as of December 31, 2025

UNITRUTH ADVISOR (SHANGHAI) CO., LTD.

Investment Holding and advisory

$25,080 (USD 800)

(ii)SOARING CAPITAL CORP.

$25,080 (USD 800)

$-

$-

$25,080 (USD 800)

$(1,523)

100%

$(1,523) (iii)

$11,630

$-

EVERRICH (JINING) NEW ENERGY TECHNOLOGY CO., LTD. (formerly EVERRICH (SHANDONG) ENERGY CO., LTD.)

Solar engineering integrated design services

14,139 (USD 451)

(ii)EVERRICH ENERGY INVESTMENT (HK) LIMITED

14,421 (USD 460)

-

-

14,421 (USD 460)

3,861

100%

3,861 (iii)

22,580

158,662 (USD 5,061)

UNITED LED CORPORATION

Research, manufacturing and sales in LED epitaxial wafers

2,633,400 (USD 84,000)

(ii)UNITED LED CORPORATION HONG KONG LIMITED

634,838 (USD 20,250)

-

-

634,838 (USD 20,250)

83,657 (RMB 18,732)

25.14%

21,030 (RMB 4,709) (iii)

119,300 (RMB 26,713)

-

HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.

Sales and manufacturing of integrated circuits

14,046,669 (RMB 3,145,246)

(ii)OAKWOOD ASSOCIATES LIMITED

9,690,347 (USD 309,102)

-

-

9,690,347 (USD 309,102)

7,744,397 (RMB 1,734,079)

100.00% (Note 4)

7,744,397 (RMB 1,734,079) (ii)

46,228,901 (RMB 10,351,299)

-

UNITED SEMICONDUCTOR (XIAMEN) CO., LTD.

Sales and manufacturing of integrated circuits

72,339,348 (RMB 16,197,794)

(ii)UNITED MICROCHIP CORPORATION and (iii)HEJIAN TECHNOLOGY (SUZHOU) CO., LTD.

48,128,959 (USD 1,535,214) (Note 5)

-

-

48,128,959 (USD 1,535,214) (Note 5)

12,027,996 (RMB 2,693,237)

100%

12,027,996 (RMB 2,693,237) (ii)

56,126,643 (RMB 12,567,542)

-

Accumulated investment in Mainland China as of December 31, 2025

Investment amounts authorized by Investment Commission, MOEA

Upper limit on investment

$58,493,645 (USD 1,865,826)

$88,325,239 (USD 2,817,392)

$227,860,959

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 audited by an international certified public accounting firm in cooperation with an R.O.C. accounting firm.

(ii) The financial statements were audited by the auditors of the parent company.

(iii) Others.

Note 3 : Initial investment amounts denominated in foreign currencies are translated into New Taiwan Dollars using the spot rates at the financial report date.

Note 4 : The Company indirectly invested in HEJIAN TECHNOLOGY (SUZHOU) CO., LTD. via investment in BEST ELITE INTERNATIONAL LIMITED, an equity investee. The investment has been approved by the Investment Commission, MOEA

in the total amount of USD 383,569 thousand. As of December 31, 2025, the amount of investment has been all remitted.

Note 5 : The investment to UNITED SEMICONDUCTOR (XIAMEN) CO., LTD. (USCXM) from HEJIAN TECHNOLOGY (SUZHOU) CO., LTD. and indirectly invested in USCXM via investment in GREEN EARTH LIMITED.

The consent to invest in USCXM's investment has been approved by the Investment Commission, MOEA in the total amount of USD 2,412,313 thousand. As of December 31, 2025, the amount of investment has been all remitted.

111

FAQ

How did UMC (UMC) revenue perform in 2025 compared with 2024?

UMC’s 2025 revenue grew modestly versus 2024. Operating revenues reached NT$237,553,199 thousand in 2025, compared with NT$232,302,584 thousand in 2024, reflecting slight top-line expansion while the company operated in a competitive semiconductor foundry environment.

What was UMC (UMC) net income and EPS for 2025?

UMC reported lower net income and EPS in 2025. Net income attributable to shareholders was NT$41,716,249 thousand and basic earnings per share were NT$3.34, down from NT$47,210,930 thousand and NT$3.80 respectively in 2024.

How strong were UMC (UMC) operating cash flows in 2025?

UMC generated robust operating cash flow in 2025. Net cash provided by operating activities was NT$99,864,187 thousand, up from NT$93,872,042 thousand in 2024, showing significant cash generation from core semiconductor operations despite softer profitability.

What were UMC (UMC) total assets and equity at the end of 2025?

UMC ended 2025 with a large asset and equity base. Total assets were NT$578,996,009 thousand, while total equity reached NT$379,855,440 thousand as of December 31, 2025, indicating a substantial capital structure supporting its global foundry operations.

How did UMC (UMC) investing and financing cash flows look in 2025?

UMC had significant investing outflows and net financing outflows. Net cash used in investing activities was NT$53,154,432 thousand, mainly from capital spending and financial assets, while financing activities used NT$39,203,859 thousand, including debt movements and cash dividends.

What was UMC (UMC) cash position and inventory level at year-end 2025?

UMC maintained a strong cash balance and sizable inventories. Cash and cash equivalents totaled NT$110,660,052 thousand at December 31, 2025, and inventories, net, were NT$37,228,383 thousand, important for meeting semiconductor customer demand.

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