United Microelectronics Corporation (NYSE:UMC) Q1 2023 Earnings Call Transcript

Bruce Lu: Yes. One last one is for Chi-Tung. The government also is down well like 30% in first quarter. Is that a new level in coming quarters? And when is the subsidy going to end?

Chi-Tung Liu: A majority of the subsidy linked to the depreciation schedule of our 12X in Xiamen, and the depreciation for Xiamen has nearly come to a net. So that also reflects. So basically, we got money first in our pocket. And the recognition will go along with the depreciation schedule. And the depreciation now is coming to an end. So the number will gradually to come down.

Bruce Lu: So we have a model like gradually come down coming to orders?

Chi-Tung Liu: Yes. It’s coming down along with declining depreciation expenses for our 12X. So on one hand, the depreciation expenses will come down. On the other hand, the subsidy we recognize on book will also decline.

Operator: And ladies and gentlemen, we thank you for all your questions. That concludes today’s Q&A session. And I’ll turn it over to UMC Head of IR for closing remarks.

Michael Lin: Thank you for attending this conference today. We appreciate your questions. As always, if you have any additional follow-up questions, please feel free to contact UMC at ir@umc.com. Have a good day.

Operator: Thank you. And ladies and gentlemen, that concludes our conference for first quarter 2023. Thank you for your participation in UMC’s conference. There will be a webcast replay within 2 hours. Please visit www.umc.com under the Investors Events section. You may now disconnect, goodbye.