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United Micro
(NYSE:UMC)
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Rating:68Neutral
Price Target:
$18.50
▼(-5.03% Downside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by solid fundamentals (especially a conservative balance sheet and healthy TTM margins) and a positive earnings outlook with higher utilization and mid-30% gross margin guidance. These strengths are partially offset by weak near-term technicals (price far below 20D/50D averages), valuation constraints from a higher P/E, and cyclical/quality risks highlighted by volatile free cash flow and reliance on non-operating income.
Positive Factors
Conservative balance sheet
UMC’s low leverage and rising equity provide durable financial flexibility to fund multi-year fab investments, absorb semiconductor cycle downturns, and maintain dividend/buyback programs. A conservatively positioned balance sheet reduces refinancing risk during capex-heavy expansion phases and supports strategic optionality.
Negative Factors
Reliance on non-operating income
Material non-operating gains meaningfully boosted reported net income in the period, obscuring pure manufacturing profitability. Dependence on volatile investment income can make earnings less predictive of core cash generation and increase sensitivity to financial-market swings rather than operational performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
UMC’s low leverage and rising equity provide durable financial flexibility to fund multi-year fab investments, absorb semiconductor cycle downturns, and maintain dividend/buyback programs. A conservatively positioned balance sheet reduces refinancing risk during capex-heavy expansion phases and supports strategic optionality.
Read all positive factors
United Micro (UMC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$47.07B
Dividend Yield2.17%
Average Volume (3M)16.28M
Price to Earnings (P/E)18.1
Beta (1Y)1.03
Revenue Growth9.07%
EPS Growth116.20%
CountryUS
Employees20,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)33.50
Shares Outstanding2,515,397,000
10 Day Avg. Volume15,785,113
30 Day Avg. Volume16,280,127
Financial Highlights & Ratios
PEG Ratio-1.22
Price to Book (P/B)1.62
Price to Sales (P/S)2.59
P/FCF Ratio11.73
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$12.19Price Target Upside-37.42% Downside
Rating ConsensusStrong Sell
Number of Analyst Covering3
EPS Forecast (FY)1.09
Revenue Forecast (FY)$8.70B
United Micro Business Overview & Revenue Model
Company Description
United Microelectronics Corporation (UMC) operates as a specialized semiconductor wafer foundry, extending its services globally with operations across Taiwan, Singapore, China, Hong Kong, Japan, the United States, and Europe. The company offers a...
How the Company Makes Money
UMC primarily makes money by providing contract semiconductor manufacturing (foundry) services to fabless semiconductor companies and integrated device manufacturers that outsource production. Revenue is generated mainly from (1) wafer fabrication...
United Micro Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presented a predominately positive operational and financial picture: accelerating shipments (+10.6% QoQ), higher utilization (85% → guidance >90%), stronger revenue and gross margin expansion, major technology milestones (12-inch silicon photonics mass production) and sizeable Board-approved CapEx to capture AI, silicon photonics and advanced packaging opportunities. Key near-term risks include reliance on non-operating gains that boosted reported net income, significant near-term depreciation and CapEx that may pressure reported gross margins, execution and timing risk for large expansions (benefits expected in 2028–29), and continued softness in consumer end markets. On balance, the positive growth, clear technology milestones and aggressive, but phased, investment program outweigh the near-term margin and timing risks.Positive Updates
Revenue Growth and Profitability
2Q26 consolidated revenue TWD 68.73 billion, up 12.6% QoQ; 1H26 revenue TWD 129.77 billion, up 11.3% YoY. 2Q26 net income attributable to shareholders TWD 42.26 billion (EPS TWD 3.39); 1H26 net income TWD 58.4 billion (EPS TWD 4.68).
Negative Updates
Reliance on Non-Operating Income
2Q26 net income was materially aided by non-operating investment and dividend income (~TWD 30 billion). This reliance on market-driven non-op gains can make reported net income less reflective of core operating performance.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Profitability
2Q26 consolidated revenue TWD 68.73 billion, up 12.6% QoQ; 1H26 revenue TWD 129.77 billion, up 11.3% YoY. 2Q26 net income attributable to shareholders TWD 42.26 billion (EPS TWD 3.39); 1H26 net income TWD 58.4 billion (EPS TWD 4.68).
Read all positive updates
Company Guidance
UMC’s Q3 guidance calls for wafer shipments to increase by high single digits, ASPs in U.S. dollars to remain firm, capacity utilization to be greater than 90% (up from 85% in Q2), and gross margin to be in the mid‑30% range. By way of context, Q2 revenue was TWD 68.73 billion with a 32.5% gross margin, net income attributable of TWD 42.26 billion and EPS TWD 3.39, 1.13 million 12‑inch wafer equivalents shipped and 85% utilization; H1 revenue was TWD 129.77 billion, H1 gross margin 30.9% and H1 EPS TWD 4.68. Management raised 2026 CapEx to USD 2.0 billion (from USD 1.5 billion) and the Board has approved nearly USD 5 billion of investment across 2026–27; cash on hand was TWD 124.7 billion and total equity TWD 443.9 billion at quarter end, while depreciation is expected to rise by the low‑teens over the next ~2 years. Additional metrics: blended ASP up low single digits in Q2; revenue mix ~66% Asia / ~22% North America; revenue under 40nm ~52% with 22/28nm ~37% (22nm ≈17.5% of Q2 sales); Singapore Fab12i capacity to reach 192,000 12‑inch wafers; and AI‑related revenue projected ≈USD 300 million in 2026 and to exceed USD 1 billion within three years.United Micro Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
85
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 250.71B | 237.55B | 232.30B | 222.53B | 278.71B | 213.01B |
| Gross Profit | 76.72B | 68.91B | 75.65B | 77.74B | 125.76B | 72.05B |
| EBITDA | 156.27B | 108.87B | 97.35B | 105.85B | 153.72B | 107.44B |
| Net Income | 83.47B | 40.36B | 47.21B | 59.69B | 89.48B | 51.25B |
Balance Sheet | ||||||
| Total Assets | 665.97B | 579.00B | 560.17B | 546.58B | 524.65B | 450.96B |
| Cash, Cash Equivalents and Short-Term Investments | 147.39B | 128.37B | 115.24B | 144.88B | 178.60B | 170.90B |
| Total Debt | 54.29B | 59.78B | 70.47B | 64.16B | 45.61B | 46.82B |
| Total Liabilities | 222.05B | 199.14B | 194.46B | 202.86B | 201.83B | 186.58B |
| Stockholders Equity | 443.92B | 379.77B | 365.45B | 343.38B | 322.47B | 264.15B |
Cash Flow | ||||||
| Free Cash Flow | 59.27B | 52.40B | 2.54B | -8.02B | 62.98B | 40.39B |
| Operating Cash Flow | 109.62B | 100.41B | 93.89B | 86.00B | 145.86B | 90.35B |
| Investing Cash Flow | -61.99B | -53.45B | -85.94B | -97.79B | -54.43B | -62.16B |
| Financing Cash Flow | -41.02B | -39.42B | -39.20B | -29.09B | -57.25B | 12.49B |
United Micro Technical Analysis
Positive
19.48
Price Trends
22.17
Negative
16.94
Positive
12.77
Positive
Market Momentum
-1.06
Positive
48.77
Neutral
60.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UMC, the sentiment is Positive. The current price of 19.48 is below the 20-day moving average (MA) of 21.18, below the 50-day MA of 22.17, and above the 200-day MA of 12.77, indicating a neutral trend. The MACD of -1.06 indicates Positive momentum. The RSI at 48.77 is Neutral, neither overbought nor oversold. The STOCH value of 60.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UMC.
United Micro Risk Analysis
United Micro disclosed 46 risk factors in its most recent earnings report. United Micro reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
United Micro Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $24.55B | 101.72 | 8.54% | ― | 10.53% | 19.13% | |
68 Neutral | $47.07B | 18.09 | 20.98% | 2.12% | 9.07% | 116.20% | |
67 Neutral | $31.76B | 57.88 | 7.45% | ― | -9.04% | -4.21% | |
67 Neutral | $27.43B | 35.45 | 6.66% | 0.22% | 0.80% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $47.01B | 99.45 | 2.66% | 0.70% | 10.06% | -27.68% | |
53 Neutral | $75.50B | 39.90 | 14.45% | 1.13% | 18.30% | 82.12% |
* Technology Sector Average
UMC
United Micro
19.29
12.64
190.08%
ASX
ASE Technology Holding Co
36.78
27.13
281.22%
ON
ON Semiconductor
76.91
29.93
63.71%
STM
STMicroelectronics
52.77
28.18
114.62%
TSEM
Tower
211.14
162.28
332.13%
GFS
GlobalFoundries Inc
49.46
16.14
48.43%
United Micro Corporate Events
United Microelectronics Sets Terms for First Domestic Convertible Bond, Sells Centera Stake
Jul 30, 2026
United Microelectronics Corporation on July 30, 2026 confirmed key terms for its first domestic unsecured convertible corporate bond, marking a notable capital markets move for the Taiwan-based foundry. The issuance became effective following regu...
United Microelectronics Files Reviewed Q2 2026 Financials with U.S. SEC
Jul 29, 2026
United Microelectronics Corporation on July 29, 2026 filed a Form 6-K with the U.S. Securities and Exchange Commission, furnishing its consolidated financial statements for the three- and six-month periods ended June 30, 2026 and 2025. The interim...
UMC Posts Strong Q2 2026 Results and Greenlights Major AI-Focused Fab Expansion
Jul 29, 2026
On July 29, 2026, UMC’s board approved the consolidated financial statements for the first half of 2026, reporting NT$129.77 billion in revenue, NT$58.34 billion in profit and basic earnings per share of NT$4.68, with total assets reaching N...
United Microelectronics Sets Q2 2026 Board Review and Finalizes Banks for Convertible Bonds
Jul 21, 2026
On July 21, 2026, United Microelectronics Corporation announced that its board of directors will meet on July 29, 2026 to review and approve the company’s consolidated financial report for the second quarter of 2026. The scheduled meeting da...
United Microelectronics Schedules Q2 2026 Investor Call and Reports June Insider Share Changes
Jul 14, 2026
On July 14, 2026, United Microelectronics Corporation reported that it will hold its Q2 2026 investor conference on July 29, 2026, at 17:00 via an online teleconference to present its financial and operating results. The company also disclosed Jun...
United Microelectronics Posts Double-Digit June Sales Growth, Highlights Conservative Financial Exposure
Jul 6, 2026
United Microelectronics Corporation reported its June 2026 net sales rose to NT$23.1 billion, a 22.85% increase from June 2025, reflecting stronger demand for its wafer fabrication services. Year-to-date net sales through June 2026 reached NT$129....
United Microelectronics Completes 22nd Share Buyback with Partial Execution
Jun 29, 2026
United Microelectronics Corporation announced on June 29, 2026, that it has completed its 22nd stock buyback plan, which had been authorized with a ceiling of NT$212.95 billion and a target of up to 50 million shares at a price range of NT$52.50 t...
United Microelectronics Adjusts Dividend and Books Gain on Novatek Disposal as Profits Surge
Jun 23, 2026
On June 23, 2026, United Microelectronics Corporation slightly raised its planned cash dividend per share to NT$2.60808262, keeping the total payout unchanged at NT$32.7 billion, after share repurchases and restricted stock cancellations reduced i...
United Microelectronics Clarifies Intel Rumor and Books NT$1.4 Billion Gain from Novatek Share Disposal
Jun 22, 2026
On June 22, 2026, United Microelectronics Corporation filed a report addressing media speculation about a potential collaboration with U.S. chipmaker Intel on 12nm and 3nm process technologies. The company declined to comment on the report from Ec...
United Microelectronics Trims Novatek Stake via NT$1.39 Billion Exchangeable Bond Conversion
Jun 18, 2026
United Microelectronics Corporation disclosed that on June 17–18, 2026, it disposed of part of its holdings in Novatek Microelectronics Corporation through the conversion of zero-coupon exchangeable bonds due 2026 into common shares and subs...
United Microelectronics Trims Novatek Stake via Bond Conversion in June 2026
Jun 16, 2026
Between June 5 and June 16, 2026, United Microelectronics Corporation disposed of 1,174,694 common shares of Novatek Microelectronics Corporation via conversion of its zero coupon exchangeable bonds due 2026, at an average price of NT$479.8 per sh...
United Microelectronics Posts Double-Digit May Revenue Growth in 2026
Jun 5, 2026
United Microelectronics Corporation reported that its net sales for May 2026 rose to NT$22.94 billion, up 17.78% from NT$19.48 billion in May 2025. Year-to-date net sales reached NT$106.65 billion, representing a 9.05% increase over NT$97.79 billi...
United Microelectronics to Raise NT$16 Billion via Dual Convertible Bond Issues
Jun 3, 2026
On June 3, 2026, United Microelectronics Corporation’s board approved the issuance of two zero-coupon unsecured convertible bond offerings, signaling a sizable capital raise to support capacity expansion. The first issue was set at up to NT$...
United Microelectronics Boosts Production Capacity with Major Facility Purchases and AGM Approvals
May 27, 2026
United Microelectronics Corporation has moved to expand its production capacity with two sizable non-related-party facility acquisitions approved between May 25 and May 26, 2026. The company agreed to purchase one batch of facilities from LK Engin...
UMC Plans Investor Conferences and NT$1 Billion Tool Purchase to Boost Production
May 22, 2026
On May 22, 2026, UMC said it will participate in two upcoming institutional investor events in Taipei, underscoring its efforts to engage with global capital markets and highlight its role in AI and technology supply chains. The company will prese...
United Microelectronics’ Share Buybacks Surpass NT$1.08 Billion Threshold
May 20, 2026
On May 20, 2026, United Microelectronics Corporation reported that its ongoing share repurchase program had surpassed a key regulatory threshold, with cumulative buybacks exceeding NT$300 million in value. The company disclosed that it had repurch...
United Microelectronics Crosses NT$300 Million Threshold in Share Buyback
May 15, 2026
On May 15, 2026, United Microelectronics Corporation reported that the cumulative value of its ongoing share repurchase program had surpassed NT$300 million, triggering a disclosure threshold under local rules. The announcement highlighted that th...
United Microelectronics Trims Capital, Expands Share Buyback Program in May 2026
May 13, 2026
United Microelectronics Corporation reported that Taiwan regulators approved a minor capital reduction on May 12, 2026, linked to the cancellation of restricted stock awards, slightly trimming paid-in capital and shares outstanding while marginall...
United Microelectronics Crosses NT$300 Million Threshold in Share Buyback
May 12, 2026
On May 12, 2026, United Microelectronics Corporation reported that the cumulative value of its ongoing share repurchase program had exceeded NT$300 million, triggering a disclosure threshold. As of that date, UMC had bought back 1,919,000 common s...
United Microelectronics Crosses NT$300 Million Threshold in Share Buyback
May 11, 2026
On May 11, 2026, United Microelectronics Corporation disclosed that its ongoing share repurchase program had surpassed NT$300 million in cumulative value, reaching NT$391.86 million with 4,166,000 common shares recently bought back at an average p...
United Microelectronics Reports Double-Digit April Revenue Growth in 2026
May 8, 2026
United Microelectronics Corporation reported that its net sales for April 2026 rose 10.8% year-on-year to NT$22.66 billion, reflecting stronger demand compared with April 2025. Year-to-date net sales for 2026 reached NT$83.70 billion, up 6.88% fro...
United Microelectronics Crosses NT$300 Million Threshold in Share Buyback
May 7, 2026
On May 7, 2026, United Microelectronics Corporation disclosed that its ongoing share repurchase program had surpassed NT$300 million in cumulative value, indicating active capital management. The company reported buying back 4,166,000 common share...
United Microelectronics Details 2025 Earnings Gaps Between Taiwan and IASB IFRS Reporting
Apr 30, 2026
On April 30, 2026, United Microelectronics Corporation detailed differences in its 2025 fourth-quarter consolidated financial statements arising from using Taiwan-endorsed IFRS (TIFRSs) domestically and IASB-issued IFRS for overseas reporting. Und...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.