EX-99.1

Notice to Readers


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)


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.


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.


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.


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)


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.

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)

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.

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.

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

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.

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

The amendments include:

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.

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

The amendments include:

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:

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.

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.

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:

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.

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

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.

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


			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.

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.

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:

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.

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

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.

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:

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

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

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

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:

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

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

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

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.

(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

Classification and subsequent measurement

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.

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.

Derecognition of financial assets

A financial asset is derecognized when:

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.

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

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.

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.

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.

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:

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.

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.

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.

(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.

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:

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

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.

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

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.

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.

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

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.

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

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.

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.

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.

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.

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.

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”:

identify the contract with a customer;

identify the performance obligations in the contract;

determine the transaction price;

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

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

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.

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:

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;

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:

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;

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.

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:

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;

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.

(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.

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.

(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.

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

(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

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.

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

(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

(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.

(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

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.

None of the aforementioned inventories were pledged.

(7)

Investments Accounted for Under the Equity Method

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


	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.

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.

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.

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

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

(8)

Property, Plant and Equipment

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

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

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

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

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%

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.

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

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.

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

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

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

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.

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:

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.

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.

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.

(14)

Long-Term Loans

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

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.

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

(15)

Post-Employment Benefits

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.

Defined benefit plan

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)

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%

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.

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


	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

(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

Capital stock:

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.

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.

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:

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.

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.

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.

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

(20)

Share-Based Payment

Restricted stock plan for employees

The equity-settled share-based payment of restricted stock plans for employees in each year are as follows:

      
Plan

Plan

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.

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.

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.

(21)

Operating Revenues

Disaggregation of revenue

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

Contract balances

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.

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.

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.

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

(24)

Non-Operating Income and Expenses

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)

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


	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)



	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

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

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

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)	$-

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


	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

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)

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)

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.

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

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

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.

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.

(27)

Earnings Per Share

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

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)

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.

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

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

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.

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
	Transaction underlying	Trading Volume (In thousands of shares)		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.

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.

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

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

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.

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.

(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.

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.

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)


	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

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.

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

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

      
     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.

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.


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.

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

(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.

(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:

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

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

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

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.

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.

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

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.

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.

(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


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.

     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

     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.

    


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

     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

     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

     %

     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

     %

     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

     -


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


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.

     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.

    

December 31,
2025

December 31,
2024

Interest rates applied

1.53% - 2.98%

1.53% - 5.49%