UMC Announces Disposal of Novatek Microelectronics Corp. Securities

Disclosure Date: 1150619 Statement Date: 1150618 Statement Time: 144321 Company Code: 2303 Company Name: UMC Subject: Announcement of Disposal of Securities in Novatek Microelectronics Corp. Applicable Clause: Item 20 Factual Date: 1150618

1. Name and Nature of the Asset (For preferred shares, specify issuance terms such as dividend rate): Ordinary shares of Novatek Microelectronics Corp.

2. Factual Date: 115/6/17 ~ 115/6/18

3. Board Approval Date: Not applicable

4. Other Approval Dates: Approval Level: Not applicable Date: June 18, 115

5. Transaction Quantity, Unit Price, and Total Amount: Number of Units: 2,896,036 shares; Unit Price: NT$479.8; Total Amount: NT$1,389,518,072.

6. Counterparty and Relationship with the Company (If the counterparty is an individual and not a related party, name disclosure may be omitted): Conversion request by convertible bondholders.

7. If the counterparty is a related party, disclose the reason for selection, previous transferor, relationships among the previous transferor, the company, and the counterparty, transfer date, and amount: Not applicable

8. If the asset owner was a related party within the past five years, disclose the related party's acquisition and disposal date, price, and relationship with the company at the time: Not applicable

9. Matters related to the disposal of receivables (including types of collateral, and if receivables are from related parties, disclose names and book amounts): Not applicable

10. Gain (or loss) from disposal (not applicable for acquisition of securities) (if previously deferred, explain recognition): Impact on retained earnings: NT$1,007,168,830. (No impact on profit or loss)

11. Delivery or Payment Terms (including payment periods and amounts), Contractual Restrictions, and Other Important Agreements: Convertible bondholders converted into Novatek ordinary shares. Contractual Restrictions: None. Other Important Agreements: None.

12. Transaction Decision Method, Pricing Reference Basis, and Decision-Making Unit: Transaction Method: As per the prospectus. Pricing Reference: Conversion based on exchange price.

13. Net Asset Value per Share of the Target Company: NT$118.20

14. Cumulative Holdings (including this transaction) to Date: Quantity, Amount, Ownership Percentage, and Rights Restrictions (e.g., pledge status): Quantity: 12,373,857 shares; Amount: NT$5,980,931,747; Ownership Percentage: 2.03%. Rights Restrictions: None.

15. Proportion of securities investments (including this transaction) under Article 3 of the 'Asset Acquisition and Disposal Guidelines for Publicly Issued Companies' to total assets and equity attributable to owners of the parent in the latest financial statements, and operating capital amount in the latest financial report (Note 2): Total Asset Ratio: 41.91%; Equity Ratio: 57.37%. Latest Financial Report Operating Capital: NT$44,980,640 thousand.

16. Broker and Brokerage Fees: Broker: None; Brokerage Fees: None.

17. Specific Purpose or Use of Acquisition or Disposal: Convertible bond conversion.

18. Dissenting Director Opinions on This Transaction: Not applicable

19. This Transaction is a Related-Party Transaction: No

20. Date of Supervisor Approval or Audit Committee Consent: Not applicable

21. Accountant Issued Non-Reasonable Opinion on This Transaction: Not applicable

22. Accounting Firm Name: Not applicable

23. Accountant Name: Not applicable

24. Accountant License Number: Not applicable

25. Does This Involve a Change in Business Model: No

26. Business Model Change Explanation: Not applicable

27. Transaction History with Counterparty in the Past Year and Expected in the Next Year: Not applicable

28. Source of Funds: Not applicable

29. Previous Material Information Disclosure Date for the Same Event: Not applicable

30. Other Disclosures: None