TAIPEI, Taiwan, Oct. 31 /Xinhua-PRNewswire-FirstCall/ -- Third Quarter 2007 Overview (Note 1): -- Revenue from 90nm technology and below increased from 17% to 25% -- Revenue increased 23.6% sequentially to NT$31.03 billion (US$952 million) -- Net income increased to NT$9.23 billion (US$283 million) -- EPS was NT$0.57; EPADS was US$0.088 Note 1: Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with ROC GAAP, which differ in some material respects from generally accepted accounting principles in the United States. They are reviewed, unconsolidated, and represent comparisons among the three-month period ending September 30, 2007, the three-month period ending June 30, 2007, and the equivalent three-month period that ended September 30, 2006. For all 3Q07 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the September 30, 2007 exchange rate of NT$32.57 per U.S. Dollar. United Microelectronics Corporation (NYSE: UMC; TSE: 2303) (''UMC'' or ''the Company''), a leading global semiconductor foundry, today announced its unconsolidated operating results for the third quarter of 2007.

''We had an excellent quarter for Q3, 2007. Our overall performance exceeded our guidance, including revenue, gross margin, operating margin, wafer shipment, loading, and other key indicators,'' said UMC Chairman and CEO, Dr. Jackson Hu.

''Certainly the strong seasonal demand in Q3 was a main contributor. In the meantime, we must also point out that although revenue was impressive, it did not reach historical highs due to pricing pressure in both matured 8" and advanced 12" processes. This is a clear indication that there is too much competition within our industry. On the other hand, UMC continues to reconstruct its balance sheet to improve capital utilization and ROE. In Q3, we completed Taiwan's largest ever capital reduction plan by canceling 30% of UMC's outstanding shares, while returning NT$57.4 billion to shareholders. Our cash position after the capital reduction remains very healthy. ''

''In Q3, we signed a technology cross license and joint development agreement with Elpida. This is a significant development that gives us access to their DRAM technology, which we can offer as part of our SOC solutions for memory intensive applications. Furthermore, we will jointly develop with Elpida an emerging PRAM technology for future SOC designs. As process scaling continues, multiple systems can be integrated. The ability to integrate various system memories will become very important in the future.''

''CAPEX for 2008 will be significantly reduced relative to 2007 for the following reasons: (1) We have found ways of enhancing productivity for certain critical and capital intensive equipment, (2) Our capacity expansion is mainly focused on converting capacity from older generations to more advanced processes. From now on, increasing profitability will be UMC's number one business objective. However, this goal will not happen overnight. A solid beginning will be the implementation of a disciplined CAPEX strategy.''

Summary of Operating Result Operating Results (Amount: NT$ million) QoQ % YoY % 3Q07 2Q07 change 3Q06 change Revenue 31,028 25,097 23.6 27,852 11.4 Gross Profit 8,223 4,958 65.9 6,814 20.7 Operating Expenses (3,988) (3,732) 6.9 (3,777) 5.6 Operating Income 4,235 1,226 245.4 3,037 39.4 Non-op. Income 5,764 4,182 37.8 6,438 (10.5) (Expenses) Net Income 9,233 4,911 88.0 8,592 7.5 EPS (NT$ per share) 0.57 0.28 -- 0.48 -- (US$ per ADS) 0.088 0.043 -- 0.074 --

Revenue in 3Q07 was NT$31.03 billion, representing a 23.6% QoQ increase from NT$25.10 billion in 2Q07, and a 11.4% YoY increase from NT$27.85 billion in 3Q06. Gross profit for the quarter was NT$8.22 billion, or 26.5% of revenue, compared to NT$4.96 billion, or 19.8% of revenue in 2Q07. Operating income in 3Q07 was NT$4.24 billion, or 13.6% of revenue, compared to NT$1.23 billion, or 4.9% of revenue in 2Q07. High capacity utilization and an increase in wafer shipments were the key reasons for the increase in revenue, gross profit and operating income during the third quarter. Net income for 3Q07 was NT$9.23 billion, an increase of 88%, compared with NT$4.91 billion in 2Q07.

Earnings per ordinary share (EPS) for the quarter were NT$0.57. Earnings per ADS (EPADS) were US$0.088. This compares with 2Q07 EPS of NT$0.28 and EPADS of US$0.043. One ADS represents five Taiwan-listed ordinary shares. The basic weighted average number of outstanding shares in 3Q07 was 16,198,320,253, compared with 17,780,114,848 shares in 2Q07 and 17,542,040,175 shares in 3Q06. The diluted weighted average number of outstanding shares was 16,354,611,616 in 3Q07, compared with 18,413,194,360 shares in 2Q07 and 18,150,279,315 shares in 3Q06. The fully diluted share count on September 30, 2007 was 13,825,567 thousand. On September 30, 2007, UMC held 801,741 thousands treasury shares acquired from the 8th, 9th, and 11th share buy-back programs. UMC retired 192.1 million treasury shares acquired from the 7th buy-back program in July and 5.74 billion shares from the capital reduction in August.

Detailed Financials Section

Depreciation and amortization expenses were NT$9.68 billion in 3Q07, compared to NT$9.21 billion in 2Q07. Depreciation within COGS increased 6.9% to NT$8.45 billion. The 17.3% QoQ increase on Other Manufacturing Costs reflected the higher cost associated with the improvement in shipments in 3Q07. Sales & Marketing expenses increased 26% to NT$922 million, mainly due to the increase in IP amortization and maintenance. The R&D expense was 7.5% of revenue in 3Q07. Due to the employee bonus expense that will go into effect on January 1, 2008, we expect to see an increase on CoGS and operating expenses starting from 1Q08' to reflect total employee compensation.

COGS & Expenses (Amount: NT$ million) 3Q07 2Q07 QoQ % 3Q06 YoY % change change Revenue 31,028 25,097 23.6 27,852 11.4 COGS (22,805) (20,139) 13.2 (21,038) 8.4 Depreciation (8,445) (7,899) 6.9 (9,422) (10.4) Other Mfg. Costs (14,360) (12,240) 17.3 (11,616) 23.6 Gross Profit 8,223 4,958 65.9 6,814 20.7 Gross Margin (%) 26.50% 19.80% -- 24.50% -- Total Operating Exp. (3,988) (3,732) 6.9 (3,777) 5.6 G&A (753) (691) 9 (682) 10.4 Sales & Marketing (922) (732) 26 (683) 35 R&D (2,313) (2,309) 0.2 (2,412) (4.1) Operating Income 4,235 1,226 245.4 3,037 39.4 Operating Margin (%) 13.60% 4.90% -- 10.90% --

Net non-operating income was NT$5.76 billion. Gains on the disposal of investments included the sale of MediaTek and Holtek shares for NT$2.78 billion and NT$430 million, respectively. Net investment income included NT$2.03 billion of cash dividend, NT$1.59 billion of investment income accounted for under the equity method and NT$1.95 billion of losses on valuation of financial assets. Losses on valuation of financial assets mainly came from a NT$1.79 billion loss from valuation of ProMos shares.

Non-operating Income (Expenses) (Amount: NT$ billion) 3Q07 2Q07 3Q06 Net Non-operating Income (Exp.) 5,764 4,182 6,438 Net Interest Income (Expense) 249 349 245 Net Investment Income (Loss) 1,676 760 1,653 Gain on Disposal of Investment 3,437 2,634 4,359 Exchange Gain (Loss) 63 (46) 91 Others 339 485 90

Net cash outflow was NT$271 million in 3Q07. The increase in cash from operations in 3Q07 mainly reflected higher wafer sales during the quarter. The NT$14.80 billion of financing cash outflow was mainly due to the NT$12.46 billion from the issuance of the cash dividend. Free cash flow for the first three quarters of 2007 was NT$6.86 billion. Over the next 12 months, we expect to repay NT$10.5 billion in unsecured corporate bonds.

Cash Flow Summary For the 3-Month For the 3-Month Period Ended Sep. Period Ended Jun. (Amount: NT$ million) 30, 2007 30, 2007 Cash Flow from Operations 14,920 7,583 Net Income (Loss) 9,233 4,911 Depreciation & Amortization 9,677 9,212 Changes in working capital (1,017) (2,766) Others (2,973) (3,774) Cash Flow from Investing (367) (9,224) Capital Expenditures (3,877) (8,974) Others 3,510 (250) Cash Flow from Financing (14,801) (2,262) Effect of Exchange Rate (23) (28) Net Cash Flow (271) (3,931)

Cash and cash equivalents decreased slightly by NT$0.27 billion to NT$76.79 billion. The increase in notes and accounts receivable primarily came from the increase of wafer shipments and reflected the upward trend of the business. Days sales outstanding (Note 2) decreased to 46 days, and average inventory turnover decreased to 44 days.

Note 2: Days Sales Outstanding = 365/ ((Operating revenues for the three-month period end *4)/ ((Beginning NR&AR balance, net + Ending NR&AR balance, net)/2)) Average Inventory Turnover = 365/ ((COGS for the three-month period end *4)/ ((Beginning Inventory balance, net + Ending Inventory balance, net)/2)) Current Assets (Amount: NT$ billion) 3Q07 2Q07 3Q06 Cash & Cash Equivalents 76.79 77.06 83 Notes & Accounts Receivable 17.20 14.15 14.47 Days Sales Outstanding 46 49 44 Inventory 10.89 10.91 10.79 Avg. Inventory Turnover 44 48 48 Total Current Assets 113.37 113.73 121.11 Total liabilities increased by NT$39.20 billion to NT$105.21 billion in 3Q07. The increase was primarily due to the NT$53.91 billion of cash payable for the capital reduction. Therefore, UMC's Debt to Equity ratio increased to 43% at the end of 3Q07. Liabilities (Amount: NT$ billion) 3Q07 2Q07 3Q06 Total Current Liabilities 94.05 54.92 34.41 Accounts Payable 5.32 4.96 4.39 Short-term Credit / Bonds 22.92 23.02 10.39 Others 65.81 26.94 19.63 Long-term Liabilities 7.50 7.49 30.57 Total Liabilities 105.21 66.01 68.62 Debt to Equity 43% 23% 25% Analysis of Revenue (Note 3)

The percentage of revenue contributed from North America grew to 49% in 3Q07. The percentage of revenue contributed from Europe grew to 9% due to increasing demand on consumer and wireless communication products in 3Q07.

Note 3: Revenue in this section represents wafer sales. Revenue Breakdown by Region Region 3Q07 2Q07 1Q07 4Q06 3Q06 North 49% 47% 47% 53% 60% America Asia Pacific 40% 43% 43% 37% 27% Europe 9% 8% 7% 7% 10% Japan 2% 2% 3% 3% 3%

The percentage of revenue from advanced 90nm and below business increased to 25%, compared to 17% in 2Q07, mainly due to stronger demand for communication and computing graphic chips. Revenue from 0.13um technology increased by 15%, due to stronger demand for communication chips and PC chipsets. The percentage of revenue from 0.13um and below increased to 48% in 3Q07 from 42% in 2Q07.

Revenue Breakdown by Geometry Geometry 3Q07 2Q07 1Q07 4Q06 3Q06 < = 90nm 25% 17% 21% 21% 21% 0.13um 23% 25% 16% 20% 25% 0.15um 9% 9% 11% 9% 7% 0.15um< x < = 0.18um 17% 20% 19% 18% 19% 0.18um< x < = 0.25um 3% 4% 6% 6% 6% 0.25um< x < = 0.35um 17% 18% 19% 17% 13% 0.5um and above 6% 7% 8% 9% 9%

The percentage of revenue from IDM customers increased to 27% in 3Q07 from 25% in 2Q07 due to stronger demand from North American and European IDM customers during the third quarter.

Revenue Breakdown by Customer Type Customer Type 3Q07 2Q07 1Q07 4Q06 3Q06 Fabless 73% 75% 76% 63% 56% IDM 27% 25% 24% 37% 44% System 0% 0% 0% 0% 0%

Revenue from the communication segment increased to 57% of total revenue in 3Q07 because of strong demand for handset components. Revenue from the computer segment increased to 18% of total revenue in 3Q07, primarily due to strong demand for PC chipsets and graphics.

Revenue Breakdown by Application (1) Application 3Q07 2Q07 1Q07 4Q06 3Q06 Computer 18% 17% 18% 15% 15% Communication 57% 55% 56% 61% 55% Consumer 23% 26% 24% 22% 28% 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 down by 0.8% in US dollar terms during 3Q07. (To view ASP trend, visit http://www.umc.com/english/investors/3Q07_ASP_trend.asp )

Shipment and Utilization Rate (Note 4)

Wafer shipments increased by 26.5% sequentially to 1,017 thousand 8-inch equivalent wafers in 3Q07 from 804 thousand wafers in 2Q07. The utilization rate for the quarter was 93%, which was higher than the approximately 90% level that we expected in our previous guidance.

Note 4: Utilization Rate = Quarterly Wafer Out / Quarterly Capacity Wafer Shipments 3Q07 2Q07 1Q07 4Q06 3Q06 Wafer Shipments ('000 8-inch eq.) 1,017 804 732 783 799 Quarterly Capacity Utilization Rate 3Q07 2Q07 1Q07 4Q06 3Q06 Utilization Rate 93% 76% 74%(1) 76% 82% Total Capacity ('000 8-inch eq.) 1,095 1,070 1,043 1,020 1,010 (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 5)

Capacity for 3Q07 was 1,095 thousand 8-inch equivalent wafers. The incremental increase in capacity of 25 thousand 8-inch equivalent wafers during 3Q07 was due to capacity expansion at Fab 12A and Fab 12i. UMC's estimated capacity in 4Q07 will be around at 1,100 thousand 8-inch equivalent wafers.

Note 5: 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 2007E 2006 2005 2004 (um) 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 4Q07E 3Q07 2Q07 1Q07 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 216 216 215 200 Fab 12i 169 164 140 128 Total (3) 1,100 1,095 1,070 1,043 (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

UMC's cash-based 2007 CAPEX plan maintained at US$1 billion. By the end of the third quarter, UMC's year-to-date CAPEX totaled US$779 million.

UMC Capital Expenditure by Year - in US$ billion Year 2006 2005 2004 2003 2002 2001 CAPEX $1.0 $0.7 (1) $1.5 $0.4 $0.8 $1.1 (1) 2005 CAPEX contained UMC 2005 full year CAPEX and UMCi CAPEX during 1Q05. 2007 CAPEX 8" fab 12" fab 12" R&D Total UMC 2% 80% 18% US$1 billion Recent Developments / Announcements Oct. 22, 2007 ELPIDA and UMC Announce Joint Development Program: Copper Low-k DRAM and PRAM Technologies Oct. 11, 2007 UMC Announces 65nm RFCMOS Process Readiness Oct. 09, 2007 Tax Treatment On The Cash Returned From Capital Reduction Of UMC Sep. 20, 2007 Magma and UMC Deliver Robust Physical Verification and DFM Solution for 65nm Aug. 23, 2007 UMC Share Conversion Operations Plan for Capital Reduction Aug. 17, 2007 UMC Announces a Reorganization of Management Structure Aug. 01, 2007 UMC 2Q 2007 Financial Results

Please visit UMC's website http://www.umc.com/english/news/index.asp for further details regarding the above announcements.

Fourth Quarter of 2007 Outlook & Guidance Quarter-over-quarter Guidance: -- Wafer shipments: to decrease by approximately 9% points -- Wafer ASP in US$: to decrease by approximately 1% points -- Capacity utilization rate: approximately 85% -- Profitability: gross profit margin of approximately 20% -- Percentage of 90nm & below revenues: approximately 25% -- The consumer segment is expected to the strongest followed by the communication and computer segments -- 2007 capex budget: US$1 billion Conference Call / Webcast Announcement Wednesday, October 31, 2007 Time: 8:00 PM (Taipei) / 8:00 AM (New York) / 12:00 Noon (London) Dial-in numbers and Access Codes: Asia/Europe: +1-617-614-4925 North America: 800-322-2803 Access Code: UMCCall

A live webcast and replay of the 3Q07 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 Sep 30, 2007 Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$) Sep 30, 2007 US$ NT$ % ASSETS Current Assets Cash and Cash Equivalents 2,358 76,787 21.8% Financial assets at fair value through profit or loss, current 177 5,770 1.6% Notes & Accounts Receivable 528 17,202 4.9% Inventories 334 10,889 3.1% Other Current Assets 84 2,725 0.8% Total Current Assets 3,481 113,373 32.2% Non-Current Assets Funds and Long-term Investments 2,887 94,033 26.7% Property, Plant and Equipment 4,096 133,419 37.9% Intangible Assets 115 3,745 1.1% Other Assets 224 7,289 2.1% Total Non-Current Assets 7,322 238,486 67.8% TOTAL ASSETS 10,803 351,859 100.0% LIABILITIES Current Liabilities Financial liabilities at fair value through profit or loss, current 11 379 0.1% Payables 2,148 69,953 19.9% Current Portion of Long-term Liabilities 704 22,924 6.5% Other Current Liabilities 24 790 0.2% Total Current Liabilities 2,887 94,046 26.7% Non-Current Liabilities Bonds Payable 230 7,495 2.1% Other Liabilities 113 3,669 1.1% Total Non-Current Liabilities 343 11,164 3.2% TOTAL LIABILITIES 3,230 105,210 29.9% STOCKHOLDERS' EQUITY Capital Stock 4,057 132,128 37.5% Additional Paid-in Capital 2,028 66,049 18.8% Retained Earnings, Unrealized Gain on Financial Assets and Translation Adjustment 2,006 65,341 18.6% Treasury Stock (518) (16,869) -4.8% TOTAL STOCKHOLDERS' EQUITY 7,573 246,649 70.1% TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 10,803 351,859 100.0% Note: New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2007 exchange rate of NT$32.57 per U.S. Dollar. All figures are in ROC GAAP. UNITED MICROELECTRONICS CORPORATION Unaudited Condensed Unconsolidated Income Statement Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$) Except Per Share and Per ADS Data Year over Year Comparison Three-Month Period Ended Sep 30, 2007 Sep 30, 2006 % US$ NT$ US$ NT$ Chg. Net Sales 952 31,028 855 27,852 11.4% Cost of Goods Sold (700) (22,805) (646) (21,038) 8.4% Net Gross Profit 252 8,223 209 6,814 20.7% 26.5% 26.5% 24.5% 24.5% -- Operating Expenses - Sales & Marketing 28 922 21 683 35.0% - General & Administrative 23 753 21 682 10.4% - Research & Development 71 2,313 74 2,412 -4.1% 122 3,988 116 3,777 5.6% Operating Income (Loss) 130 4,235 93 3,037 39.4% 13.6% 13.6% 10.9% 10.9% -- Net Non-Operating Income (Expenses) 177 5,764 198 6,438 -10.5% Income (Loss) from continuing operations before income tax 307 9,999 291 9,475 5.5% 32.2% 32.2% 34.0% 34.0% -- Income Tax (Expense) Benefit (24) (766) (27) (883) -13.3% Net Income (Loss) 283 9,233 264 8,592 7.5% 29.8% 29.8% 30.8% 30.8% -- Earnings per Share 0.018 0.57 0.015 0.48 -- Earnings per ADS (2) 0.088 2.85 0.074 2.40 -- Weighted Average Number of Shares Outstanding (in millions) 16,198 17,542 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 Sep 30, 2007 June 30, 2007 % US$ NT$ US$ NT$ Chg. Net Sales 952 31,028 770 25,097 23.6% Cost of Goods Sold (700) (22,805) (618) (20,139) 13.2% Net Gross Profit 252 8,223 152 4,958 65.9% 26.5% 26.5% 19.8% 19.8% -- Operating Expenses - Sales & Marketing 28 922 22 732 26.0% - General & Administrative 23 753 21 691 9.0% - Research & Development 71 2,313 71 2,309 0.2% 122 3,988 114 3,732 6.9% Operating Income (Loss) 130 4,235 38 1,226 245.4% 13.6% 13.6% 4.9% 4.9% -- Net Non-Operating Income (Expenses) 177 5,764 128 4,182 37.8% Income (Loss) from continuing operations before income tax 307 9,999 166 5,408 84.9% 32.2% 32.2% 21.6% 21.6% -- Income Tax (Expense) Benefit (24) (766) (15) (497) 54.1% Net Income (Loss) 283 9,233 151 4,911 88.0% 29.8% 29.8% 19.6% 19.6% -- Earnings per Share 0.018 0.57 0.009 0.28 -- Earnings per ADS (2) 0.088 2.85 0.043 1.40 -- Weighted Average Number of Shares Outstanding (in millions) 16,198 17,780 Note: (1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2007 exchange rate of NT$32.57 per U.S. Dollar. All figures are in ROC GAAP. (2) 1 ADS equals 5 common shares. UNITED MICROELECTRONICS CORPORATION Unaudited Condensed Unconsolidated Income Statement Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$) Except Per Share and Per ADS Data For the Three-Month Period Ended For the year Ended Sep 30, 2007 Sep 30, 2007 US$ NT$ % US$ NT$ % Net Sales 952 31,028 100.0% 2,430 79,150 100.0% Cost of Goods Sold (700) (22,805) -73.5% (1,913) (62,293) -78.7% Net Gross Profit 252 8,223 26.5% 517 16,857 21.3% Operating Expenses - Sales & Marketing 28 922 3.0% 71 2,304 2.9% - General & Administrative 23 753 2.4% 65 2,122 2.7% - Research & Development 71 2,313 7.5% 213 6,952 8.8% 122 3,988 12.9% 349 11,378 14.4% Operating Income (Loss) 130 4,235 13.6% 168 5,479 6.9% Net Non-Operating Income (Expenses) 177 5,764 18.6% 358 11,665 14.7% Income (Loss) from continuing operations before income tax 307 9,999 32.2% 526 17,144 21.6% Income Tax (Expense) Benefit (24) (766) -2.4% (47) (1,541) -1.9% Net Income (Loss) 283 9,233 29.8% 479 15,603 19.7% Earnings per Share 0.018 0.57 -- 0.029 0.93 -- Earnings per ADS (2) 0.088 2.85 -- 0.143 4.65 -- Weighted Average Number of Shares Outstanding (in millions) 16,198 16,714 Note: (1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2007 exchange rate of NT$32.57 per U.S. Dollar. All figures are in ROC GAAP. (2) 1 ADS equals 5 common shares. UNITED MICROELECTRONICS CORPORATION Unaudited Condensed Unconsolidated Statement of Cash Flows For The Nine Months Ended Sep. 30, 2007 Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$) USD NTD Cash flows from operating activities: Net Income 479 15,603 Depreciation & Amortization 862 28,081 Loss on decline in market value and obsolescence of inventories 2 62 Cash dividends received under the equity method 18 583 Investment gain accounted for under the equity method (84) (2,721) Loss on valuation of financial assets and liabilities 62 2,018 Impairment loss 8 246 Gain on disposal of investments (236) (7,695) Gain on disposal of property, plant and equipment (2) (61) Exchange gain on financial assets and liabilities (0) (16) Exchange loss on long-term liabilities 5 173 Amortization of bond discounts 1 47 Amortization of deferred income (3) (110) Change in assets and liabilities (122) (3,975) Net cash provided from operating activities 990 32,235 Cash flows from investing activities: Acquisition of available-for- sales financial assets (11) (366) Proceeds from disposal of available-for-sales financial assets 99 3,232 Proceeds from disposal of held- to-maturity financial assets 30 976 Acquisition of financial assets measured at cost (4) (120) Acquisition of long-term investments accounted for the equity method (15) (495) Proceeds from disposal of long- term investments accounted for the equity method 30 966 Prepaid investment (2) (81) Proceeds from liquid of long-term investment 1 46 Acquisition of property, plant and equipment (779) (25,372) Proceeds from disposal of property, plant and equipment 7 239 Increase in deferred charges (27) (886) Decrease in other assets - others 1 35 Net cash used in investing activities (670) (21,826) Cash flows from financing activities: Redemption of bonds (69) (2,260) Cash dividend (383) (12,462) Employee Bonus (71) (2,324) Remuneration to directors and supervisors (1) (15) Exercise of employee stock options 6 187 Decrease in deposits-in (0) (1) Net cash used in financing activities (518) (16,875) Effect of exchange rate changes on cash and cash equivalents (4) (142) Decrease in cash and cash equivalents (202) (6,608) Cash and cash equivalents at beginning of period 2,560 83,395 Cash and cash equivalents at end of period 2,358 76,787 Note: New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2007 exchange rate of NT$ 32.57 per U.S. Dollar. All figures are in ROC GAAP. Contacts: Bowen Huang / Dylan Lee UMC, Investor Relations Tel: +886-2-2700-6999 ext. 6957 Email: bowen_huang@umc.com / dylan_lee@umc.com