TAIPEI, Taiwan, Jan. 30 /Xinhua-PRNewswire-FirstCall/ -- United Microelectronics Corporation (NYSE: UMC; TSE: 2303; "UMC" or "the Company"), a leading global semiconductor foundry, today announced its unconsolidated operating results for the fourth quarter of 2007.

Fourth Quarter 2007 Overview (Note 1): -- Revenue decreased 11% sequentially to NT$27.62 billion (US$851 million) -- Net income decreased to NT$1.36 billion (US$42 million) -- Revenue from 90nm technology and below was 26% -- EPS was NT$0.16; EPADS was US$0.025

Note 1: Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with ROC GAAP, which differ in some material respects from generally accepted accounting principles in the United States. They are unaudited, unconsolidated, and represent comparisons among the three-month period ending December 31, 2007, the three-month period ending September 30, 2007, and the equivalent three-month period that ended December 31, 2006. For all 4Q07 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the December 31, 2007 exchange rate of NT$32.45 per U.S. Dollar.

"We experienced normal seasonal demand softness for Q4 2007, which led to a 11% decline in our operating revenues over the previous quarter. With regard to the first quarter, most of our customers' inventories are at normal levels, and for the most part they are cautiously optimistic about future growth with many estimating single digit growth. Of course, we continue to closely monitor end demand due to the ongoing sup-prime mortgage crisis in the United States," said UMC Chairman and CEO,

Dr. Jackson Hu.

"Due to normal seasonality in the first quarter, we see shipments dropping between 14% and 15% from Q4. On the other hand, ASPs are expected to rise by about 0-1% due to an increase in 65nm shipments. Overall capacity utilization is expected to be about 70%, with contribution from 90nm and 65nm products accounting for more than 35% of total revenue. As far as applications are concerned, we are seeing the largest seasonal corrections in the communications segment, followed by consumer products. PC related products are seeing the smallest correction.

"Capital expenditures will be between 500 and 700 million dollars in 2008. The major focus of this year's spending will be to improve product mix for our 8 and 12-inch production lines by increasing the percentage of advanced technologies and improving ASPs. Effective use of our capacity will give us the potential to well support customers' demand upside in 2008.

"As far as technology development is concerned, our 45nm program is moving along smoothly with several customer prototypes ready. We expect to see a small amount of 45nm production in the second half of the year. Our 32nm development program is also on schedule. In addition to joint development programs with our IDM and fabless customers, we continue to cooperate with many of the industry's leading research organizations, including ATDF, IMEC, and IME. Going forward, we do not rule our further technology development alliances, such as our current activities with Elpida.

"With regard to employee bonuses, we will follow the prevailing industry standard in Taiwan, and reserve 15% of profits for employee bonus compensation. Further details of this plan will be finalized in the March Board of Directors Meeting."

Summary of Operating Results Operating Results QoQ % YoY % (Amount: NT$ million) 4Q07 3Q07 change 4Q06 change Revenue 27,621 31,028 (11.0) 26,112 5.8 Gross Profit 5,649 8,223 (31.3) 5,453 3.6 Operating Expenses (4,323) (3,988) 8.4 (4,081) 5.9 Operating Income 1,326 4,235 (68.7) 1,372 (3.4) Non-op. Income (Expenses) 1,097 5,764 (81.0) 5,288 (79.3) Net Income 1,359 9,233 (85.3) 5,689 (76.1) EPS (NT$ per share) 0.16 0.57 -- 0.33 -- (US$ per ADS) 0.025 0.088 -- 0.051 --

Revenue decreased 11% QoQ to NT$27.62 billion, from NT$31.03 billion in 3Q07, and increased 5.8% YoY, from NT$26.11 billion in 4Q06. While the QoQ revenue decrease was attributed to a 9.4% decline in wafer shipment, a weak US$ also contributed to the decrease in revenues in local currency terms. Gross profit was NT$5.65 billion, or 20.5 % of revenue, compared to NT$8.22 billion, or 26.5% of 3Q07 revenue. Operating profit for the quarter was NT$1.33 billion, or 4.8% of revenue, compared to NT$4.24 billion, or 13.6% of 3Q07 revenue. Net income in 4Q07 was NT$1.36 billion, compared to NT$9.23 billion in 3Q07.

Earnings per ordinary share (EPS) for the quarter were NT$0.16. Earnings per ADS (EPADS) were US$0.025. This compares with 3Q07 EPS of NT$0.57 and EPADS of US$0.088. One ADS represents five Taiwan-listed ordinary shares. The basic weighted average number of outstanding shares in 4Q07 was 12,427,436,516, compared with 16,198,320,253 shares in 3Q07 and 17,730,038,769 shares in 4Q06. The diluted weighted average number of outstanding shares was 12,881,340,388 in 4Q07, compared with 16,354,611,616 shares in 3Q07 and 18,360,116,119 shares in 4Q06. The fully diluted share count on December 31, 2007 was 14,263,327 thousand. During 4Q07, UMC transferred 97,442 thousands treasury shares to employees and issued 1,668 thousand shares for the exercise of employee stock options. On December 31, 2007, UMC held 704,299 thousand treasury shares acquired from the 8th, 9th, and 11th share buy-back programs.

Detailed Financials Section

Depreciation and amortization expenses totaled NT$9.67 billion in 4Q07, compared to NT$9.68 billion in 3Q07. Depreciation within COGS decreased by 5.4% to NT$7.99 billion. G&A expenses increased to NT$906 million, largely because of new contracts for selected employees. R&D expenses increased by 9.6% to NT$2.54 billion, mainly due to greater expenses associated with 65nm technology development. The total R&D expense was 9.2% of revenue in 4Q07. Due to the employee bonus expense that will go into effect on January 1, 2008, UMC expects to see a gradual increase on CoGS and operating expenses starting from 1Q08' to reflect total employee compensation.

COGS & Expenses (Amount: NT$ million) 4Q07 3Q07 QoQ % 4Q06 YoY % change change Revenue 27,621 31,028 (11.0) 26,112 5.8 CoGS (21,972) (22,805) (3.7) (20,659) 6.4 Depreciation (7,985) (8,445) (5.4) (8,569) (6.8) Other Mfg. Costs (13,987) (14,360) (2.6) (12,090) 15.7 Gross Profit 5,649 8,223 (31.3) 5,453 3.6 Gross Margin(%) 20.5% 26.5% -- 20.9% -- Total Operating Exp. (4,323) (3,988) 8.4 (4,081) 5.9 G&A (906) (753) 20.3 (840) 7.9 Sales & Marketing (882) (922) (4.3) (546) 61.5 R&D (2,535) (2,313) 9.6 (2,695) (5.9) Operating Income 1,326 4,235 (68.7) 1,372 (3.4) Operating Margin(%) 4.8% 13.6% -- 5.3% --

Net non-operating income during 4Q07 was NT$1.1 billion. Total gains on the disposal of investments were NT$2.03 billion, including a gain from the sale of MediaTek shares of NT$1.85 billion. Net investment income included NT$213 million of investment losses accounted for under the equity method and NT$752 million of losses on valuation of financial assets. Losses on valuation of financial assets mainly came from a NT$613 million loss from valuation of ProMos shares.

Non-operating Income (Expenses) (Amount: NT$ million) 4Q07 3Q07 4Q06 Net Non-operating Income (Exp.) 1,097 5,764 5,288 Net Interest Income (Expense) 143 249 264 Net Investment Income (Loss) (1,124) 1,676 560 Gain on Disposal of Investment 2,025 3,437 4,772 Exchange Gain (Loss) 108 63 114 Others (55) 339 (422)

Net cash outflow was NT$39.34 billion in 4Q07. The NT$52 billion of financing cash outflow included NT$53.91 billion cash outflow from cash returned for capital reduction, and NT$1.87 billion cash inflow for the treasury shares re-issuance to employees. Free cash flow for entire 2007 was NT$18.67 billion. Over the next 12 months, we expect to repay NT$10.5 billion in unsecured corporate bonds and US$381.4 million from the redemption of Euro Convertible Bond (ECB) at maturity.

Cash Flow Summary (Amount: NT$ million) For the 3-Month For the 3-Month Period Ended Period Ended Dec. 31, 2007 Sep. 30, 2007 Cash Flow from Operations 14,549 14,920 Net Income (Loss) 1,359 9,233 Depreciation & Amortization 9,674 9,677 Changes in working capital 4,399 (1,017) Others (883) (2,973) Cash Flow from Investing (1,873) (367) Capital Expenditures (2,740) (3,877) Others 867 3,510 Cash Flow from Financing (52,004) (14,801) Capital Reduction (53,911) -- Others 1,907 (14,801) Effect of Exchange Rate (7) (23) Net Cash Flow (39,335) (271)

Cash and cash equivalents decreased NT$39.34 billion to NT$37.45 billion, which was mainly due to cash returned to shareholders for the capital reduction. The decrease in notes and accounts receivable primarily reflected the downward trend of the business. Average inventory turnover slightly increased to 47 days.

Current Assets (Amount: NT$ billion) 4Q07 3Q07 4Q06 Cash & Cash Equivalents 37.45 76.79 83.40 Notes & Accounts Receivable 13.62 17.20 12.37 Days Sales Outstanding 51 46 47 Inventory 11.33 10.89 10.12 Avg. Inventory Turnover 47 44 47 Total Current Assets 68.25 113.37 118.43

Total liabilities decreased by NT$50.91 billion to NT$54.30 billion in 4Q07. This was primarily due to the decrease of NT$53.91 billion in cash payable for the capital reduction. Therefore, UMC's Debt to Equity ratio decreased to 23% at the end of 4Q07.

Liabilities (Amount: NT$ billion) 4Q07 3Q07 4Q06 Total Current Liabilities 43.15 94.05 30.06 Accounts Payable 4.80 5.32 4.02 Short-term Credit/ Bonds 22.89 22.92 5.36 Others 15.46 65.81 20.68 Long-term Liabilities 7.50 7.50 30.38 Total Liabilities 54.30 105.21 64.06 Debt to Equity 23% 43% 22% Analysis of Revenue (Note 2)

The percentage of revenue from the Asia Pacific region decreased to 37% due to decreasing driver IC demand on consumer and computer segments, and soft wireless communication demand in 4Q07.

Note 2: Revenue in this section represents wafer sales. Revenue Breakdown by Region Region 4Q07 3Q07 2Q07 1Q07 4Q06 North America 51% 49% 47% 47% 53% Asia Pacific 37% 40% 43% 43% 37% Europe 10% 9% 8% 7% 7% Japan 2% 2% 2% 3% 3%

The percentage of revenue from advanced 65nm business increased to 3%, compared to 1% in 3Q07, mainly due to stronger demand for leading communication and computer chips. Revenue from 90nm and 0.13um technology decreased by 1% point, due to weaker demand for wireless communication chips. The percentage of revenue from 0.13um and below remained unchanged at 48% in 4Q07.

Revenue Breakdown by Geometry Geometry 4Q07 3Q07 2Q07 1Q07 4Q06 65nm 3% 1% -- -- -- 90um 23% 24% 17% 21% 21% 90nm< x < =0.13um 22% 23% 25% 16% 20% 0.13um< x < =0.18um 27% 26% 29% 30% 27% 0.18um< x < =0.35um 18% 20% 22% 25% 23% 0.5um and above 7% 6% 7% 8% 9%

The percentage of revenue from Fabless customers increased to 76% in 4Q07 from 73% in 3Q07.

Revenue Breakdown by Customer Type Customer Type 4Q07 3Q07 2Q07 1Q07 4Q06 Fabless 76% 73% 75% 76% 63% IDM 24% 27% 25% 24% 37% System 0% 0% 0% 0% 0%

Revenue from the communication segment decreased to 56% of total revenue in 4Q07 because of weak demand for handset components. The percentage of revenue from the computer segment increased slightly to 19% due to stronger demand for PC graphics.

Revenue Breakdown by Application (1) Application 4Q07 3Q07 2Q07 1Q07 4Q06 Computer 19% 18% 17% 18% 15% Communication 56% 57% 55% 56% 61% Consumer 23% 23% 26% 24% 22% Memory 1% 1% 1% 1% 1% Others 1% 1% 1% 1% 1% (1) Computer consists of ICs such as HDD controllers, DVD-ROM/CD-ROM drives ICs, LCD drivers, graphic processors, and PDAs. Communication consists of xDSL, DSP, WLAN, LAN controllers, handset components, caller ID devices, etc. Consumer consists of ICs used for DVD players, game consoles, digital cameras, smart cards, toys, etc. Memory consists of DRAM, SRAM, Flash, EPROM, ROM, and EEPROM. Blended Average Selling Price Trend

The blended average selling price (ASP) was flat in US dollar terms during 4Q07.

(To view ASP trend, visit http://www.umc.com/english/investors/4Q07_ASP_trend.asp ) Shipment and Utilization Rate (Note 3)

Wafer shipments dropped 9.4% sequentially to 921 thousand, a decrease from 1,017 thousand 8-inch equivalent wafers in the previous quarter. Overall utilization rate for the quarter was 86%, compared to 93% for the previous quarter.

Note 3: Utilization Rate = Quarterly Wafer Out / Quarterly Capacity Wafer Shipments 4Q07 3Q07 2Q07 1Q07 4Q06 Wafer Shipments ('000 8-inch eq.) 921 1,017 804 732 783 Quarterly Capacity Utilization Rate 4Q07 3Q07 2Q07 1Q07 4Q06 Utilization Rate 86% 93% 76% 74% (1) 76% Total Capacity ('000 8-inch eq.) 1,100 1,095 1,070 1,043 1,020 (1) 1Q07 utilization rate was calculated based on 1Q07 available capacity, which is about 95% of total capacity after factoring in a 5% productivity loss due to annual scheduled maintenance. Capacity (Note 4)

Capacity for 4Q07 was 1,100 thousand 8-inch equivalent wafers. The incremental increase in capacity was due to the expansion at Fab 12i. The estimated installed capacity in 1Q08 remains unchanged at 1,100 thousand 8- inch equivalent wafers. As usual, estimated available capacity in 1Q08 is approximately 5% lower than estimated installed capacity due to scheduled annual maintenance.

Note 4: Estimated capacity numbers are based on calculated maximum output rather than designed capacity. The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp up.

Annual Capacity in thousands of 8-inch wafer equivalents FAB Geometry(um) 2007 2006 2005 2004 Fab 6A 6" 3.5 - 0.45 328 328 344 346 Fab 8AB 8" 0.5 - 0.25 816 816 816 796 Fab 8C 8" 0.35 - 0.15 400 400 401 386 Fab 8D 8" 0.18 - 0.09 260 252 274 256 Fab 8E 8" 0.5 - 0.18 408 406 404 401 Fab 8F 8" 0.25 - 0.15 372 372 378 349 Fab 8S (1) 8" 0.25 - 0.15 276 276 278 131 Fab 12A 12" 0.18 - 0.065 847 754 597 392 Fab 12i(2) 12" 0.13 - 0.065 601 413 363 101 Total (3) 4,308 4,017 3,855 3,158 YoY Growth Rate 7% 4% 22% 19% Quarterly Capacity in thousands of 8-inch wafer equivalents FAB 1Q08E 4Q07 3Q07 2Q07 Fab 6A 82 82 82 82 Fab 8AB 204 204 204 204 Fab 8C 100 100 100 100 Fab 8D 65 65 65 65 Fab 8E 102 102 102 102 Fab 8F 93 93 93 93 Fab 8S 69 69 69 69 Fab 12A 216 216 216 215 Fab 12i 169 169 164 140 Total (3) 1,100 1,100 1,095 1,070 (1) Former fab of SiSMC, which was acquired from Silicon Integrated Systems in July 2004. (2) Former fab of UMCi, a UMC wholly owned subsidiary in December 2004 that was merged into UMC in April 2005 (3) One 6-inch wafer is converted into 0.5625(62/82) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25(122/82) 8-inch equivalent wafers. CAPEX

The total capital expenditure for 2007 was US$0.9 billion, 98% of which accounted for capacity expansion and R&D at our 300mm facilities. The capital expenditure budget for 2008 is expected to be in the range of US$500 to 700 million. Compared to the 2007 breakdown, the company will increase the percentage of capex on R&D and 8'' de-bottleneck expansion but lower the percentage for 12'' capacity expansion.

UMC Capital Expenditure by Year -- in US$ billion Year 2007 2006 2005 2004 2003 2002 CAPEX $0.9 $1.0 $0.7 (1) $1.5 $0.4 $0.8 2007 CAPEX 8" fab 12" fab 12" R&D Total UMC 2% 80% 18% US$0.9 billion 2008 CAPEX Plan 8" fab 12" fab 12" R&D Total UMC 10% 64% 26% US$500-700 million (1) 2005 CAPEX contained UMC 2005 full year CAPEX and UMCi CAPEX during 1Q05. Brief Summary of Full Year 2007 Results -- Revenue increased 2.6% YoY to NT$106.77 billion, from NT$104.10 billion in 2006 -- Gross profit margin was 21.1%, compared to 19.9% in 2006 -- Operating profit margin was 6.4%, compared to 5.9% in 2006 -- Net income decreased to NT$16.96 billion, from NT$32.62 billion in 2006 -- EPS was NT$1.09 or EPADS was US$0.168 for 2007. This compared to EPS of NT$1.81 or EPADS of 0.279 for 2006 -- The percentage of revenue from 65nm sales was 2% in 2007; the percentage of revenue from 90nm and below sales increased to 23%, from 18% in 2006 Operating Results (Amount: NT$ million) 2007 2006 YoY % change Revenue 106,771 104,099 2.6 Gross Profit 22,506 20,693 8.8 Operating Expenses (15,701) (14,569) 7.8 Operating Income 6,805 6,124 11.1 Non-op. Income (Expenses) 12,762 29,703 (57.0) Income Tax Expense (2,605) (3,208) (18.8) Net Income 16,962 32,619 (48.0) EPS (NT$ per share) 1.09 1.81 -- (US$ per ADS) 0.168 0.279 -- Annual Sales Breakdown in Revenue Region 2007 2006 North America 48% 53% Asia Pacific 40% 35% Europe 9% 9% Japan 3% 3% Technology 2007 2006 65nm 2% 1% 90nm 21% 17% 90nm< x < =0.13um 22% 22% 0.13um< x < =0.18um 27% 28% 0.18um< x < =0.35um 21% 23% 0.5um and above 7% 9% Application 2007 2006 Computer 18% 16% Communication 56% 56% Consumer 24% 26% Memory 1% 1% Others 1% 1% Customer Type 2007 2006 Fabless 75% 63% IDM 25% 37% System 0% 0% Recent Developments / Announcements Dec. 17, 2007 "Clean & Green Watch 2007" Report Ranks UMC as the Top Semiconductor Company in Taiwan Dec. 11, 2007 UMC Releases 65nm DFM Design Enablement Kit Dec. 10, 2007 UMC's 90nm URAM Used in Mobile TV Applications Dec. 03, 2007 UMC Foundry Design Kit for New Cadence Virtuoso Platform Speeds Production of 65nm Designs Oct. 31, 2007 UMC 3Q 2007 Financial Results Please visit UMC's website http://www.umc.com/english/news/index.asp for further details regarding the above announcements. First Quarter of 2008 Outlook & Guidance Quarter-over-quarter Guidance: -- Wafer shipments: to decrease by approximately 14-15% -- Wafer ASP in US$: to increase by approximately 0-1% -- Capacity utilization rate: approximately 70% -- Profitability: gross profit margin of approximately 12-13% -- Percentage of 90nm & below revenues: more than 35% -- The communication segment is expected to be the weakest, followed by the consumer and computer segment -- 2008 capex budget: US$500-700 million Conference Call/ Webcast Announcement Wednesday, January 30, 2008 Time: 9:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM (London) Dial-in numbers and Access Codes: USA Toll Free: 1866 549 1292 UK Toll Free: 0808 234 6305 Singapore Toll Free: 800 852 3576 Hong Kong and Other Areas: +852 3005 2050 Access Code: UMCCALL

A live webcast and replay of the 4Q07 results announcement will be available at http://www.umc.com under the "Investor Relations \ Investor Events" section.

About UMC

UMC (NYSE: UMC; TSE: 2303) is a leading global semiconductor foundry that manufactures advanced process ICs for applications spanning every major sector of the semiconductor industry. UMC delivers cutting-edge foundry technologies that enable sophisticated system-on-chip (SoC) designs, including volume production 90nm, industry-leading 65nm, and mixed signal/RFCMOS. UMC's 10 wafer manufacturing facilities include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i are both in volume production for a variety of customer products. The company employs approximately 13,000 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, and the United States. UMC can be found on the web at http://www.umc.com .

Safe Harbor Statements

Except for statements in respect of historical matters, the statements in this release contain "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward- looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors, including, among other things: our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; the risks associated with international global business activities; our dependence upon key personnel; general economic and political conditions, including those related to the semiconductor, communications, consumer electronics and computer industries; possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; reduced end-user purchases relative to expectations and orders; fluctuations in foreign currency exchange rates; and those risks identified in the section entitled "Risk Factors" in UMC's Annual Report on Form 20-F ("20-F") for the year ended December 31, 2006 filed with the U.S. Securities and Exchange Commission on May 9, 2007.

The financial statements included in this release are unaudited and unconsolidated, and prepared and published in accordance with ROC GAAP. Investors are cautioned that there are many differences between ROC GAAP and US GAAP, as described in note 39 to the financial statements on 20-F.

The forward-looking statements in this release reflect the current belief of UMC as of the date of this release and UMC undertakes no obligation to update these forward-looking statements for events or circumstances that occur after such date or to reflect the occurrence of unanticipated events.

-- FINANCIAL TABLES TO FOLLOW -- UNITED MICROELECTRONICS CORPORATION Unaudited Condensed Unconsolidated Balance Sheet As of December 31, 2007 Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$) December 31, 2007 US$ NT$ % ASSETS Current Assets Cash and Cash Equivalents 1,154 37,453 12.9% Financial assets at fair value through profit or loss, current 148 4,800 1.6% Notes & Accounts Receivable 420 13,621 4.7% Inventories 349 11,334 3.9% Other Current Assets 32 1,045 0.4% Total Current Assets 2,103 68,253 23.5% Non-Current Assets Funds and Long-term Investments 2,509 81,429 28.0% Property, Plant and Equipment 4,001 129,815 44.6% Intangible Assets 115 3,745 1.3% Other Assets 232 7,521 2.6% Total Non-Current Assets 6,857 222,510 76.5% TOTAL ASSETS 8,960 290,763 100.0% LIABILITIES Current Liabilities Financial liabilities at fair value through profit or loss, current 11 340 0.1% Payables 603 19,556 6.7% Current Portion of Long-term Liabilities 705 22,890 7.9% Other Current Liabilities 11 367 0.1% Total Current Liabilities 1,330 43,153 14.8% Non-Current Liabilities Bonds Payable 231 7,495 2.6% Other Liabilities 112 3,648 1.3% Total Non-Current Liabilities 343 11,143 3.9% TOTAL LIABILITIES 1,673 54,296 18.7% STOCKHOLDERS' EQUITY Capital Stock 4,072 132,145 45.5% Additional Paid-in Capital 2,038 66,127 22.7% Retained Earnings, Unrealized Gain on Financial Assets and Translation Adjustment 1,639 53,198 18.3% Treasury Stock (462) (15,003) -5.2% TOTAL STOCKHOLDERS' EQUITY 7,287 236,467 81.3% TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 8,960 290,763 100.0% Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2007 exchange rate of NT$32.45 per U.S. Dollar. All figures are in ROC GAAP. UNITED MICROELECTRONICS CORPORATION Unaudited Condensed Unconsolidated Income Statement Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$) Except Per Share and Per ADS Data Year over Year Comparison Three-Month Period Ended Dec 31, 2007 Dec 31, 2006 % US$ NT$ US$ NT$ Chg. Net Sales 851 27,621 805 26,112 5.8% Cost of Goods Sold (677) (21,972) (637) (20,659) 6.4% Net Gross Profit 174 5,649 168 5,453 3.6% 20.5% 20.5% 20.9% 20.9% -- Operating Expenses - Sales & Marketing 27 882 17 546 61.5% - General & Administrative 28 906 26 840 7.9% - Research & Development 78 2,535 83 2,695 -5.9% 133 4,323 126 4,081 5.9% Operating Income (Loss) 41 1,326 42 1,372 -3.4% 4.8% 4.8% 5.3% 5.3% -- Net Non-Operating Income (Expenses) 34 1,097 163 5,288 -79.3% Income (Loss) from continuing operations before income tax 75 2,423 205 6,660 -63.6% 8.8% 8.8% 25.5% 25.5% -- Income Tax (Expense) Benefit (33) (1,064) (30) (971) 9.6% Net Income (Loss) 42 1,359 175 5,689 -76.1% 4.9% 4.9% 21.8% 21.8% -- Earnings per Share 0.005 0.16 0.010 0.33 -- Earnings per ADS (2) 0.025 0.80 0.051 1.65 -- Weighted Average Number of Shares Outstanding (in millions) -- 12,427 -- 17,730 -- UNITED MICROELECTRONICS CORPORATION Unaudited Condensed Unconsolidated Income Statement Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$) Except Per Share and Per ADS Data Quarter over Quarter Comparison Three-Month Period Ended Dec 31, 2007 Sep 30, 2007 % US$ NT$ US$ NT$ Chg. Net Sales 851 27,621 956 31,028 -11.0% Cost of Goods Sold (677) (21,972) (703) (22,805) -3.7% Net Gross Profit 174 5,649 253 8,223 -31.3% 20.5% 20.5% 26.5% 26.5% -- Operating Expenses - Sales & Marketing 27 882 29 922 -4.3% - General & Administrative 28 906 23 753 20.3% - Research & Development 78 2,535 71 2,313 9.6% 133 4,323 123 3,988 8.4% Operating Income (Loss) 41 1,326 130 4,235 -68.7% 4.8% 4.8% 13.6% 13.6% -- Net Non-Operating Income (Expenses) 34 1,097 178 5,764 -81.0% Income (Loss) from continuing operations before income tax 75 2,423 308 9,999 -75.8% 8.8% 8.8% 32.2% 32.2% -- Income Tax (Expense) Benefit (33) (1,064) (23) (766) 38.9% Net Income (Loss) 42 1,359 285 9,233 -85.3% 4.9% 4.9% 29.8% 29.8% -- Earnings per Share 0.005 0.16 0.018 0.57 -- Earnings per ADS (2) 0.025 0.80 0.088 2.85 -- Weighted Average Number of Shares Outstanding (in millions) -- 12,427 -- 16,198 -- Note: (1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2007 exchange rate of NT$32.45 per U.S. Dollar. All figures are in ROC GAAP. (2) 1 ADS equals 5 common shares. UNITED MICROELECTRONICS CORPORATION Unaudited Condensed Unconsolidated Income Statement Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$) Except Per Share and Per ADS Data For the Three-Month For the year Period Ended Dec 31, 2007 Ended Dec 31, 2007 US$ NT$ % US$ NT$ % Net Sales 851 27,621 100.0% 3,290 106,771 100.0% Cost of Goods Sold (677) (21,972) -79.5% (2,596) (84,265) -78.9% Net Gross Profit 174 5,649 20.5% 694 22,506 21.1% Operating Expenses - Sales & Marketing 27 882 3.2% 98 3,186 3.0% - General & Administrative 28 906 3.3% 93 3,028 2.8% - Research & Development 78 2,535 9.2% 293 9,487 8.9% 133 4,323 15.7% 484 15,701 14.7% Operating Income (Loss) 41 1,326 4.8% 210 6,805 6.4% Net Non-Operating Income (Expenses) 34 1,097 4.0% 393 12,762 11.9% Income (Loss) from continuing operations before income tax 75 2,423 8.8% 603 19,567 18.3% Income Tax (Expense) Benefit (33) (1,064) -3.9% (80) (2,605) -2.4% Net Income (Loss) 42 1,359 4.9% 523 16,962 15.9% Earnings per Share 0.005 0.16 -- 0.034 1.09 -- Earnings per ADS (2) 0.025 0.80 -- 0.168 5.45 -- Weighted Average Number of Shares Outstanding (in millions) -- 12,427 -- -- 15,618 -- Note: (1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2007 exchange rate of NT$32.45 per U.S. Dollar. All figures are in ROC GAAP. (2) 1 ADS equals 5 common shares. UNITED MICROELECTRONICS CORPORATION Unaudited Condensed Unconsolidated Statement of Cash Flows For The Twelve Months Ended Dec. 31, 2007 Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$) USD NTD Cash flows from operating activities: Net Income 523 16,962 Depreciation & Amortization 1,163 37,755 Loss on decline in market value and obsolescence of inventories 9 286 Cash dividends received under the equity method 20 651 Investment gain accounted for under the equity method (77) (2,508) Loss on valuation of financial assets and liabilities 85 2,750 Impairment loss 8 246 Gain on disposal of investments (300) (9,720) Gain on disposal of property, plant and equipment (2) (69) Exchange gain on financial assets and liabilities (1) (31) Exchange loss on long-term liabilities 4 127 Amortization of bond discounts 2 58 Amortization of deferred income (5) (149) Change in assets and liabilities 13 426 Net cash provided from operating activities 1,442 46,784 Cash flows from investing activities: Acquisition of available-for- sales financial assets (17) (567) Proceeds from disposal of available-for-sales financial assets 168 5,443 Proceeds from maturities of financial assets 30 976 Acquisition of financial assets measured at cost (4) (120) Proceeds from disposal of financial assets measured at cost 1 41 Acquisition of long-term investments accounted for the equity method (30) (962) Proceeds from disposal of long- term investments accounted for the equity method 30 971 Prepaid investment (20) (648) Proceeds from liquid of long-term investment 7 220 Acquisition of property, plant and equipment (866) (28,112) Proceeds from disposal of property, plant and equipment 8 245 Increase in deferred charges (38) (1,232) Decrease in other assets - others 1 46 Net cash used in investing activities (730) (23,699) Cash flows from financing activities: Redemption of bonds (70) (2,260) Cash dividend (384) (12,462) Employee Bonus (72) (2,324) Remuneration to directors and supervisors (0) (15) Exercise of employee stock options 6 226 Transfer of treasury stock 58 1,866 Capital reduction (1,661) (53,911) Increase in deposits-in 0 1 Net cash used in financing activities (2,123) (68,879) Effect of exchange rate changes on cash and cash equivalents (5) (148) Decrease in cash and cash equivalents (1,416) (45,942) Cash and cash equivalents at beginning of period 2,570 83,395 Cash and cash equivalents at end of period 1,154 37,453 Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2007 exchange rate of NT$ 32.45 per U.S. Dollar. All figures are in ROC GAAP. Contacts: Bowen Huang / I Cheng Lu UMC, Investor Relations Tel: +886-2-2700-6999 ext. 6957 Email: bowen_huang@umc.com/ i_cheng_lu@umc.com