| (3) | General Description of Reporting Entity |
| a. | 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 stockholders 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 IFRSs. 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.
| b. | The consolidated entities as of December 31, 2016 and 2017 were as follows: |
|
Percentage of ownership (%) as of December 31, |
||||||||||||
|
Investor |
Subsidiary |
Business nature |
2016 | 2017 | ||||||||
|
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 NEW BUSINESS INVESTMENT CORP. (NBI) |
Investment holding |
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 GROUP JAPAN |
IC Sales |
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 |
91.08 | 96.66 | ||||||||
|
UMC, FORTUNE and TLC |
NEXPOWER TECHNOLOGY CORP. (NEXPOWER) |
Sales and manufacturing of solar power batteries |
— | 87.06 | ||||||||
|
UMC, FORTUNE, UNITRUTH INVESTMENT CORP. (UNITRUTH) and TLC |
NEXPOWER |
Sales and manufacturing of solar power batteries |
67.54 | — | ||||||||
|
UMC and FORTUNE |
WAVETEK MICROELECTRONICS CORPORATION (WAVETEK) |
Sales and manufacturing of integrated circuits |
— | 78.47 | ||||||||
|
UMC, FORTUNE and UNITRUTH |
WAVETEK |
Sales and manufacturing of integrated circuits |
78.47 | — | ||||||||
|
FORTUNE |
UNITRUTH |
Investment holding |
100.00 | — | ||||||||
|
UMC CAPITAL CORP. |
UMC CAPITAL (USA) |
Investment holding |
100.00 | 100.00 | ||||||||
|
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 | ||||||||
|
UMC INVESTMENT (SAMOA) LIMITED |
UMC (BEIJING) LIMITED |
Marketing support activities |
100.00 | 100.00 | ||||||||
|
NBI |
TERA ENERGY DEVELOPMENT CO., LTD. (TERA ENERGY) |
Energy technical services |
100.00 | 100.00 | ||||||||
|
NBI |
UNISTARS CORP. |
High brightness LED packages |
82.76 | 83.69 | ||||||||
|
TERA ENERGY |
EVERRICH ENERGY INVESTMENT (HK) LIMITED (EVERRICH-HK) |
Investment holding |
100.00 | 100.00 | ||||||||
|
EVERRICH-HK |
EVERRICH (SHANDONG) ENERGY CO., LTD. |
Solar engineering integrated design services |
100.00 | 100.00 | ||||||||
|
OMNI |
UNITED MICROTECHNOLOGY CORPORATION (NEW YORK) |
Research and development |
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 | ||||||||
|
OMNI |
UMC TECHNOLOGY JAPAN CO., LTD. |
Semiconductor manufacturing technology development and consulting services |
100.00 | 100.00 | ||||||||
|
WAVETEK |
WAVETEK MICROELECTRONICS INVESTMENT (SAMOA) LIMITED (WAVETEK-SAMOA) |
Investment holding |
100.00 | 100.00 | ||||||||
|
WAVETEK- |
WAVETEK MICROELECTRONICS CORPORATION (USA) |
Sales and marketing service |
100.00 | 100.00 | ||||||||
|
NEXPOWER |
NPT HOLDING LIMITED |
Investment holding |
100.00 | — | ||||||||
|
NEXPOWER |
SOCIALNEX ITALIA 1 S.R.L. |
Photovoltaic power plant |
100.00 | 100.00 | ||||||||
|
NPT HOLDING LIMITED |
NLL HOLDING LIMITED |
Investment holding |
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 | 100.00 | ||||||||
|
HEJIAN |
UNITEDDS SEMICONDUCTOR (SHANDONG) CO., LTD. |
Integrated circuits design services |
100.00 | 100.00 | ||||||||
|
UNITED MICROCHIP CORPORATION and HEJIAN |
UNITED SEMICONDUCTOR (XIAMEN) CO., LTD. (USC) (Note A) |
Sales and manufacturing of integrated circuits |
29.41 | 51.02 | ||||||||
Note A: As described in Note 9(5), the Company acquired control of USC’s Board of Directors in 2015.