United Micro (UMC) AI Stock Analysis

• Market Cap: $24.54B
• Dividend Yield: 6.06%
• Average Volume (3M): 8.29M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.74
• Revenue Growth: 5.87%
• EPS Growth: -20.93%
• Country: US
• Employees: 20,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.13
• Shares Outstanding: 2,515,704,800
• 10 Day Avg. Volume: 8,722,196
• 30 Day Avg. Volume: 8,288,001
• PEG Ratio: -1.22
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 2.59
• P/FCF Ratio: 11.73
• Enterprise Value/Market Cap: 28.76
• Enterprise Value/Revenue: 2.97
• Enterprise Value/Gross Profit: 10.24
• Enterprise Value/Ebitda: 6.39
• 1Y Price Target: $8.67
• Price Target Upside: -10.99% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.6
• Revenue Forecast (FY): $8.24B

• Rating: 77 Outperform
• Price Target: $10.00 ▲(2.67% Upside)
• Action: Reiterated Date: 01/30/26
• Date: Action: Reiterated 01/30/26

The score is driven primarily by solid financial health and an improving technical setup (price above key moving averages with positive MACD). Earnings call commentary is constructive on 2026 growth but tempered by near-term margin and utilization headwinds, while valuation is mixed (strong yield but a mid-range P/E).

Positive Factors

Balance Sheet Strength

UMC’s conservative leverage and expanding equity base provide durable financial flexibility to fund multi-year technology investments, sustain dividends and weather cyclical downcycles. Low debt levels reduce refinancing risk and enable strategic capex or M&A without materially stressing liquidity over the next 2–6 months and beyond.

Negative Factors

Free Cash Flow Volatility

Historic swings in free cash flow—driven by capex timing and working-capital swings—create uncertainty in available capital for dividends, buybacks or strategic R&D. This reduces predictability of shareholder returns and may force tradeoffs between investing in growth initiatives and maintaining payouts during industry troughs.

United Micro Business Overview & Revenue Model

Company Description

United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, Singapore, China, Hong Kong, Japan, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and ...

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United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, Singapore, China, Hong Kong, Japan, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and ...

How the Company Makes Money

UMC primarily makes money by providing foundry services—manufacturing semiconductor wafers for customers who design the chips but outsource fabrication. Revenue is generated through (1) wafer sales, where customers pay per wafer produced on specif...

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UMC primarily makes money by providing foundry services—manufacturing semiconductor wafers for customers who design the chips but outsource fabrication. Revenue is generated through (1) wafer sales, where customers pay per wafer produced on specif...

United Micro Financial Statement Overview

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	237.55B	232.30B	222.53B	278.71B	213.01B
Gross Profit	68.91B	75.65B	77.74B	125.76B	72.05B
EBITDA	109.50B	97.35B	105.85B	153.72B	107.44B
Net Income	41.72B	47.21B	59.69B	89.48B	51.25B
Balance Sheet
Total Assets	579.00B	560.17B	546.58B	524.65B	450.96B
Cash, Cash Equivalents and Short-Term Investments	128.37B	115.24B	144.88B	178.60B	170.90B
Total Debt	78.34B	70.47B	64.16B	45.61B	46.82B
Total Liabilities	199.14B	194.46B	202.86B	201.83B	186.58B
Stockholders Equity	379.77B	365.45B	343.38B	322.47B	264.15B
Cash Flow
Free Cash Flow	52.40B	5.33B	-8.02B	62.98B	40.39B
Operating Cash Flow	100.41B	93.87B	86.00B	145.86B	90.35B
Investing Cash Flow	-53.45B	-85.94B	-97.79B	-54.43B	-62.16B
Financing Cash Flow	-39.42B	-39.20B	-29.09B	-57.25B	12.49B

United Micro Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 9.74 is above the 20-day moving average (MA) of 9.16, above the 50-day MA of 9.73, and above the 200-day MA of 8.15, indicating a bullish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 57.54 is Neutral, neither overbought nor oversold. The STOCH value of 92.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UMC.

United Micro Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UMC	77 Outperform	$24.54B	14.74	11.36%	6.06%	5.87%	-20.93%
TSEM	77 Outperform	$22.75B	41.94	7.85%	―	8.03%	-6.03%
GFS	69 Neutral	$27.23B	21.96	7.68%	―	0.25%	-106.22%
ON	64 Neutral	$27.05B	183.93	1.53%	―	-16.13%	-81.06%
ASX	63 Neutral	$54.09B	26.78	12.81%	2.29%	8.01%	10.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	56 Neutral	$35.34B	136.11	0.97%	1.28%	-17.33%	-76.71%

United Micro Corporate Events