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UMC Q3 Sales Rise

TAIPEI, Taiwan — United Microelectronics Corporation (NYSE:UMC – News) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its unconsolidated operating results for the third quarter of 2010.

Revenue increased 9.8% quarter-over-quarter to NT$32.65 billion, from NT$29.75 billion in 2Q10, and increased 19.1% year-over-year, from NT$27.41 billion in 3Q09. Gross margin was 32.6%, operating margin was 22.0%, net income was NT$8.72 billion, and earnings per ordinary share were NT$0.70.

Dr. Shih-Wei Sun, CEO of UMC, said, “UMC's revenue from the first three quarters of this year has already surpassed 2009's full-year revenue. Total earnings per ordinary share for the three quarters were NT$1.40, with full-year earnings for 2010 expected to grow significantly from last year. Robust growth momentum for Q3 continued from the previous six quarters, with capacity utilization remaining full. Shipment volume reached a record of 1,202K 8-inch equivalent wafers. As a result, third quarter revenue exceeded US$1 billion, with revenue and income from foundry operations both reaching 6-year highs. UMC's accelerated advanced capacity expansion and product mix optimization continue to show positive results. Revenue contribution from 65nm and below products has reached 30%, with 40nm growing to 4.2% of revenue. ROE for the quarter reached 16.6%.”

Dr. Sun continued, “Looking ahead to Q4, advanced process capacity will remain fully utilized. Product mix optimization will push blended ASP even higher. We do expect that seasonality, NT dollar fluctuations, and other uncertainties may slightly affect revenue, but remain cautiously optimistic about the Q4 foundry market. UMC will continue to closely monitor industry conditions in order to adapt to any changes. According to UMC's initial budget projection for fiscal year 2011, next year's semiconductor industry outlook and customer demand remain quite healthy. UMC's US$1.8 billion CAPEX this year shall significantly boost advanced capacity expansion and 28nm and 20nm R&D, enabling the company to greatly enhance its competitiveness. We will also continue our efforts on ROE and plan to deliver favorable dividend yield to UMC shareholders.”

{complink 5826|United Microelectronics Corp. (UMC)}

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