TSE Code: 2303 | NYSE Symbol: UMC · TSE Code: 2303 | NYSE Symbol: UMC. ... Diwan, Ernst & Young...
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of ANNUAL REPORT 2005 YEARS United Microelectronics Corporation TSE Code: 2303 | NYSE Symbol: UMC
Transcript of TSE Code: 2303 | NYSE Symbol: UMC · TSE Code: 2303 | NYSE Symbol: UMC. ... Diwan, Ernst & Young...
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A N N UA L R E PORT 2 0 0 5
YEARSUnited
MicroelectronicsCorporation
TSE Code: 2303 | NYSE Symbol: UMC
UMC annual report information can be accessed from the following websites:www.umc.comnewmops.tse.com.tw
Printed on March 17, 2006
Corporate Information
SpokespersonChitung LiuChief Financial Officer886 (2) 2700 [email protected]
Deputy SpokespersonSandy YenThe Chairman and CEO OfficeSenior Manager886 (2) 2700 [email protected]
Bowen HuangFinance Division Senior Manager 886 (2) 2700 [email protected]
Headquarters3 Li-Hsin 2nd Rd., Hsinchu Science Park, Hsinchu, Taiwan 300, R.O.C.886 (3) 578 2258
Taipei Office3F, 76, Sec. 2, Tunhwa S. Rd., Taipei, Taiwan 106, R.O.C.886 (2) 2700 6999
Fab 6A10 Innovation 1st Rd., Hsinchu Science Park, Hsinchu, Taiwan 308, R.O.C.886 (3) 578 2258
Fab 8A3 Li-Hsin 2nd Rd., Hsinchu Science Park, Hsinchu, Taiwan 300, R.O.C.886 (3) 578 2258
Fab 8B5 Li-Hsin 2nd Rd., Hsinchu Science Park, Hsinchu, Taiwan 300, R.O.C.886 (3) 578 2258
Fab 8C6 Li-Hsin 3rd Rd., Hsinchu Science Park, Hsinchu, Taiwan 300, R.O.C.886 (3) 578 2258
Fab 8D8 Li-Hsin 3rd Rd., Hsinchu Science Park, Hsinchu, Taiwan 300, R.O.C.886 (3) 578 2258
Fab 8E17 Li-Hsin Rd., Hsinchu Science Park, Hsinchu, Taiwan 300, R.O.C.886 (3) 578 2258
Fab 8F3 Li-Hsin 6th Rd., Hsinchu Science Park, Hsinchu, Taiwan 300, R.O.C.886 (3) 578 2258
Fab 8S16 Creation 1st Rd., Hsinchu Science Park, Hsinchu, Taiwan 308, R.O.C.886 (3) 578 2258
Fab 12A18 Nan-Ke 2nd Rd., Tainan Science Park, Sinshih, Tainan, Taiwan 744, R.O.C.886 (6) 505 4888
Singapore BranchFab 12i3 Pasir Ris Drive 12, Singapore 51952865 6213 0018
Securities Dealing InstituteHorizon Securities Co., Ltd.Stock Registration Department 3rd Fl., 236 Hsin-Yi Rd. Sec. 4, Taipei, Taiwan 106, R.O.C. 886 (2) 7719 8899www.honsec.com.tw
ADR Depositary and RegistrarCitibank, N.A.Depositary Receipt Services388 Greenwich Street, 14th Floor New York, NY 10013, U.S.A.1 (877) 248 4237 (Toll-free)Stockholder Service Representatives are available Monday through Friday, 8:30a.m. to 6:00p.m., Eastern Time.http://wwss.citissb.com/adr/www/ [email protected]
ADR Exchange MarketplaceNew York Stock Exchange, Inc.11 Wall StreetNew York, NY 10005, U.S.A.1 (212) 656 3000www.nyse.comTicker/Search Code: UMC
Exchangeable Bond Exchange MarketplaceLuxembourg Stock Exchange11, av de la Porte-NeuveL-2227 Luxembourg352 (47) 79 36 - 1www.bourse.luTicker: UniMicElexCorpEB Search Code: ISIN XS0147090533ECB Search Code: ISIN XS0231460709
AuditorsDiwan, Ernst & YoungJames Wang, MY Lee9th Fl., 333 Keelung Rd., Sec.1Taipei 110, Taiwan , R.O.C.www.dey.com.tw886 (2) 2720 4000
UMC Websitewww.umc.com
A N N UA L R E PORT 2 0 0 5
25 YEARS of UMC
Incorporated in 1980, UMC has firmly established itself over its 25-year history
as one of today’s global leaders in IC technology and manufacturing.
United Microelectronics Corporation | Annual Report 2005
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Review of Financial Position, 66Operating Results, Risk Management and Evaluation, Corporate Governance Practices and Auditing Notes
67 Analysis of Financial Position
68 Analysis of Operating Results
69 Liquidity Analysis
69 Major Capital Expenditures and Sources of Funding
70 Analysis for Investment
71 Risk Management and Evaluation
75 Corporate Governance Practices 77 Auditing Notes
Affiliated Enterprises Overview 7879 Summary of Affiliated Enterprises
Special Disclosures 8485 Status of Internal Control
86 Acquisition or Disposal of UMC Shares by Subsidiaries
87 Major Resolutions of the Shareholders’ Meeting and the Board of Directors’ Meeting
Table of ContentsIntroduction 14 25 Years of UMC
6 Letter to Shareholders
Corporate Overview 1213 Corporate Profile
14 Corporate Organization
32 Capital and Shares
38 Corporate Bonds
43 Preferred Stock
44 American Depositary Receipts
46 Employee Stock Option Certificates
50 Mergers and Acquisitions
Operations Overview 5253 Business Scope
53 Industry Scope
54 Research & Development Achievements and Plans
56 Market and Sales Conditions
60 Employee Analysis
61 Environmental Protection Information
61 Labor Relations
62 Major Agreements
64 Financing Plans and Execution Status
United Microelectronics Corporation | Annual Report 2005
Letter to Shareholders
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Financial Review Consolidated 188189 Representation Letter
191 Report of Independent Auditors
192 Consolidated Balance Sheets
193 Consolidated Statements of Income
194 Consolidated Statements of Changes in Stockholders’ Equity
195 Consolidated Statements of Cash Flows
197 Notes to Consolidated Financial Statements
258 Attachments to Notes
Disclosure According to US 90Security Authorities Regulation
91 Disclosure Committee 91 Audit Committee
91 Corporate Governance Difference
91 Code of Ethics
91 Employee Code of Conduct
91 US GAAP Financial Information
92 Consolidated Balance Sheets
94 Consolidated Statements of Income Financial Review Unconsolidated 9697 Condensed Balance Sheets
98 Condensed Statements of Income
99 Financial Analysis
100 Supervisors’ Report
102 Report of Independent Auditors
103 Balance Sheets
104 Statements of Income
105 Statements of Changes in Stockholders’ Equity
106 Statements of Cash Flows
108 Notes to Financial Statements
159 Attachments to Notes
25 Years of UMC
United Microelectronics Corporation | Annual Report 2005
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Our first 25 yearsUMC was established in 1980 as Taiwan’s first semiconductor company. In 1995, UMC began operating as a pure-play IC foundry. Since then, UMC has grown to become a global IC technology and manufacturing leader. Today, UMC delivers comprehensive SoC solutions that complement its leading-edge 90-nanometer and 65-nanometer production technologies.
United Microelectronics Corporation | Annual Report 2005
Letter to Shareholders
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Milestones
1980 MAY UMC established.
1985 JUL. Becomes the first IC company to list on the Taiwan Stock Exchange.
1995 JUL. Begins transformation into a pure-play foundry.
JUL. – SEP. Three joint venture foundry companies established.
SEP. 200mm fab begins production.
1996 JAN. 0.35-micron mass production.
1997 OCT. 0.25-micron mass production.
1998 APR. Acquires Holtek Semiconductor.
DEC. Acquires Nippon Steel Semiconductor Corp. (renamed UMCJ in 2001)
1999 MAR. 0.18-micron mass production.
NOV. Begins construction of 300mm fab in Taiwan’s Tainan Science Park, Fab 12A.
2000 JAN. Completes consolidation of five companies: UMC, USC, UTEK, USI and UICC.
MAR. Ships first foundry chips using copper process.
MAY Produces foundry industry’s first 0.13-micron integrated circuits.
SEP. Makes its debut on the New York Stock Exchange.
DEC. Announces plan to establish advanced 300mm foundry in Singapore (UMCi).
2003 JAN. Announces equipment move-in at UMCi.
MAR. Delivers foundry’s first customer ICs built on 90-nanometer.
2004 MAR. UMCi moves to full-scale 300mm production.
MAY 90-nanometer full qualification and mass production.
JUL. Completes acquisition of SiS Microelectronics Corp.
DEC. Fully acquires its subsidiary UMCi.
2005 AUG. Achieves record milestone of over 100,000 90-nanometer wafer shipments.
25 Years of UMC
