UNITED MICROELECTRONICS CORP (ifrs-full:DisclosureOfRelatedPartyExplanatory)

7.	SIGNIFICANT RELATED PARTY TRANSACTIONS

Significant intercompany transactions between consolidated entities were as follows:

For the year ended December 31, 2015


	Counterparty	Transactions (Note 1)
Entity	Counterparty	Account	Amount		Terms (Note 3)
			NT$ (In Thousands)
UMC	UMC-USA	Sales	$	62,952,979	Net 60 days

UMC	UMC-USA	Accounts receivable		7,615,622	—

UMC	UMC GROUP JAPAN	Sales		9,716,823	Net 60 days

UMC	UMC GROUP JAPAN	Accounts receivable		2,299,403	—

WAVETEK	UMC	Sales		928,335	Net 30 days

WAVETEK	UMC	Accounts receivable		128,809	—

HEJIAN	UMC-USA	Sales		657,149	Net 60 days

HEJIAN	UMC-USA	Accounts receivable		108,932	—

HEJIAN	UMC GROUP JAPAN	Sales		151,935	Net 60 days

HEJIAN	UMC GROUP JAPAN	Accounts receivable		16,480	—

For the year ended December 31, 2016


	Counterparty	Transactions (Note 2)
Entity	Counterparty	Account	Amount		Terms (Note 3)
			NT$ (In Thousands)
UMC	UMC-USA	Sales	$	69,676,143	Net 60 days

UMC	UMC-USA	Accounts receivable		9,122,728	—

UMC	UMC GROUP JAPAN	Sales		4,056,027	Net 60 days

UMC	UMC GROUP JAPAN	Accounts receivable		681,621	—

UMC	USC	Sales		379,332 (Note 4)	Net 30 days
UMC	USC	Accounts receivable		3,091,249	—

UMC	WAVETEK	Sales		148,266	Month-end 30 days

UMC	WAVETEK	Accounts receivable		337	—

HEJIAN	UMC-USA	Sales		429,216	Net 60 days

HEJIAN	UMC-USA	Accounts receivable		99,626	—

HEJIAN	UMC GROUP JAPAN	Sales		161,809	Net 60 days

HEJIAN	UMC GROUP JAPAN	Accounts receivable		30,294	—

For the year ended December 31, 2017


	Counterparty	Transactions (Note 2)
Entity	Counterparty	Account	Amount			Terms (Note 3)
			NT$ (In Thousands)
UMC	UMC-USA	Sales	$	59,968,172		Net 60 days

UMC	UMC-USA	Accounts receivable		6,737,723		—

UMC	UMC GROUP JAPAN	Sales		4,212,523		Net 60 days

UMC	UMC GROUP JAPAN	Accounts receivable		659,488		—

UMC	USC	Sales		998,899 (Note 5	)	Net 30 days

UMC	USC	Accounts receivable		4,790,930		—

UMC	USC	Loan receivable		3,924,360		—

HEJIAN	UMC-USA	Sales		214,147		Net 60 days
HEJIAN	UMC-USA	Accounts receivable		35,498		—

HEJIAN	UMC GROUP JAPAN	Sales		223,740		Net 60 days

HEJIAN	UMC GROUP JAPAN	Accounts receivable		43,332		—

USC	UMC-USA	Sales		241,220		Net 60 days

USC	UMC-USA	Accounts receivable		141,272		—

Note 1:

The significant intercompany transactions listed above include downstream and upstream transactions.

Note 2:

The significant intercompany transactions listed above include downstream transactions.

Note 3:

The sales price to the above related parties was determined through mutual agreement in reference to market conditions.

Note 4:

UMC authorized technology licenses to its subsidiary, USC, in the amount of US$0.15 billion, which was recognized as deferred revenue and would be realized over time.

Note 5:

UMC authorized technology licenses to its subsidiary, USC, in the amount of US$0.35 billion, which was recognized as deferred revenue and would be realized over time.

Significant transactions between the Company and other related parties were as follows:

(i)

Name and Relationship of Related Parties


Name of related parties		Relationship with the Company
FARADAY TECHNOLOGY CORP. and its subsidiaries		Associate

JINING SUNRICH SOLARENERGY CORPORATION		Joint venture’s subsidiary

SILICON INTEGRATED SYSTEMS CORP.		The Company’s director

SUBTRON TECHNOLOGY CO., LTD.		Subsidiary’s supervisor

PHOTRONICS DNP MASK CORPORATION		Other related parties

(ii)

Operating revenues


	For the years ended December 31,
	2015		2016			2017
	NT$ (In Thousands)		NT$ (In Thousands)			NT$ (In Thousands)
Associates	$	1,132,831	$	1,961,451		$	1,357,720
Joint ventures		14,224		13,122			12,465
Others		7,228		2,305			30,417

Total	$	1,154,283	$	1,976,878		$	1,400,602


(iii) Accounts receivable, net
			As of December 31,
			2016			2017
			NT$ (In Thousands)			NT$ (In Thousands)
Associates			$	138,869		$	84,839
Joint ventures				1,012			1,051
Others				86			7,908

Total				139,967			93,798
Less: Allowance for sales returns and discounts				(3,057	)		(2,733	)

Net			$	136,910		$	91,065

The sales price to the above related parties was determined through mutual agreement in reference to market conditions. The collection period for domestic sales to related parties was month-end 30~60 days, while the collection period for overseas sales was net 30~60 days.

(iv)

Significant asset transactions

Acquisition of intangible assets


	For the years ended December 31,
	Purchase price
	2015		2016		2017
	NT$ (In Thousands)		NT$ (In Thousands)		NT$ (In Thousands)
Associates	$	129,327	$	254,611	$	322,808

Disposal of available-for-sale financial assets, noncurrent

Trading
Volume

(In thousands

Transaction

For the year ended December 31, 2015

of shares)

underlying

Disposal amount

Disposal gain

NT$

(In Thousands)

Associates

336

DRAMEXCHANGE TECH. INC.

5,400

2,346

For the year ended December 31, 2016: None.

Trading
Volume

(In thousands

Transaction

For the year ended December 31, 2017

of shares)

underlying

Disposal amount

Disposal loss

NT$

(In Thousands)

Others

6,489

ASIA PACIFIC MICROSYSTEMS, INC.

50,745

(13,753

)

(v)

Others

Mask expenditure


	For the years ended December 31,
	2015		2016		2017
	NT$		NT$		NT$
	(In Thousands)		(In Thousands)		(In Thousands)
Others	$	—	$	—	$	994,710

Other payables of mask expenditure


	As of December 31,
	2015		2016		2017
	NT$		NT$		NT$
	(In Thousands)		(In Thousands)		(In Thousands)
Others	$	—	$	—	$	580,789

Key management personnel compensation


	For the years ended December 31,
	2015		2016		2017
	NT$		NT$		NT$
	(In Thousands)		(In Thousands)		(In Thousands)
Short-term employee benefits	$	292,282	$	267,501	$	271,554
Post-employment benefits		2,953		2,773		3,478
Termination benefits		1,582		939		6,957
Share-based payment		5,772		10		68
Others		1,039		422		294

Total	$	303,628	$	271,645	$	282,351

UNITED MICROELECTRONICS CORP | CIK:0001033767 |

ifrs-full:DisclosureOfRelatedPartyExplanatory