United Microelectronics (UMC)
NYSE:UMC
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United Micro
(NYSE:UMC)
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Rating:71Outperform
Price Target:
$21.00
â–˛(80.10% Upside)
Action:Reiterated
Date:05/29/26
Score is driven primarily by solid financial stability and profitability supported by a low-leverage balance sheet, plus a reasonable valuation (P/E ~11 and ~2.17% yield). These positives are tempered by uneven free-cash-flow conversion and technically overbought conditions (RSI/Stoch ~91), which raise near-term risk despite the strong uptrend.
Positive Factors
Conservative balance sheet
UMC’s low leverage (debt-to-equity ~0.16) provides durable financial flexibility to fund capital-intensive fabs, withstand downturns, and support shareholder returns. A conservative balance sheet lowers refinancing risk and enables capex or strategic moves without materially stressing solvency over the medium term.
Negative Factors
Volatile free cash flow conversion
FCF volatility and conversion at roughly 50% of net income reduce internal funding capacity for heavy fabs and force more external financing or stretched timelines for projects. Inconsistent cash conversion weakens predictability of dividends/buybacks and raises financing/dilution risk during cyclical downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
UMC’s low leverage (debt-to-equity ~0.16) provides durable financial flexibility to fund capital-intensive fabs, withstand downturns, and support shareholder returns. A conservative balance sheet lowers refinancing risk and enables capex or strategic moves without materially stressing solvency over the medium term.
Read all positive factors
United Micro (UMC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$53.18B
Dividend Yield6.06%
Average Volume (3M)17.73M
Price to Earnings (P/E)35.3
Beta (1Y)1.03
Revenue Growth7.52%
EPS Growth17.94%
CountryUS
Employees20,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)20.10
Shares Outstanding2,515,397,000
10 Day Avg. Volume19,044,679
30 Day Avg. Volume17,733,150
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 Cap33.19
Enterprise Value/Revenue7.33
Enterprise Value/Gross Profit24.76
Enterprise Value/Ebitda14.77
Forecast
1Y Price Target
$10.20Price Target Upside-12.52% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)0.72
Revenue Forecast (FY)$8.64B
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:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call presented a generally constructive operational picture driven by shipment growth (+12.3% YoY), Q4 revenue and improved gross margin (~30.7%), strong 22/28nm momentum (22nm +31% QoQ) and disciplined CapEx guidance (USD 1.5B). Management flagged near-term margin headwinds from higher depreciation and inflationary costs, modest utilization guidance (mid-70s in Q1), some one-time pricing concessions for strategic customers, and multi-year timelines for advanced packaging and silicon photonics ramp. On balance, the positives around volume growth, product-mix improvement and strategic investments slightly outweigh the margin and timing risks noted.Positive Updates
Q4 Revenue and QoQ Growth
Consolidated revenue in Q4 2025 was TWD 61.81 billion, up 4.5% quarter-over-quarter.
Negative Updates
Full-Year EPS Decline
EPS for 2025 declined to TWD 3.34 from TWD 3.80 in 2024, indicating reduced profitability per share year-over-year despite higher shipments and USD revenue growth.
Read all updates
Q4-2025 Updates
Positive
Negative
Q4 Revenue and QoQ Growth
Consolidated revenue in Q4 2025 was TWD 61.81 billion, up 4.5% quarter-over-quarter.
Read all positive updates
Company Guidance
UMC guided that Q1 2026 wafer shipments will be flat with ASPs in U.S. dollars remaining firm, gross margin of roughly the high‑20% range and capacity utilization in the mid‑70% range; for 2026 it pegged cash‑based CapEx at about USD 1.5 billion (vs. USD 1.6B in 2025), expects overall capacity to rise ~1.2% year‑over‑year with Singapore Phase III starting deployment in H2‑2026 and ramping into 2027, anticipates depreciation to increase by the low‑teens annually (peaking this year or next), and reiterated confidence that 2026 will be a growth year in which UMC should outgrow its addressable market (forecasted to grow low single‑digits) while the broader foundry market is expected to grow in the low‑20% range.United Micro Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
83
Very Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 240.73B | 237.55B | 232.30B | 222.53B | 278.71B | 213.01B |
| Gross Profit | 71.28B | 68.91B | 75.65B | 77.74B | 125.76B | 72.05B |
| EBITDA | 119.50B | 109.50B | 97.35B | 105.85B | 153.72B | 107.44B |
| Net Income | 50.11B | 41.72B | 47.21B | 59.69B | 89.48B | 51.25B |
Balance Sheet | ||||||
| Total Assets | 599.93B | 579.00B | 560.17B | 546.58B | 524.65B | 450.96B |
| Cash, Cash Equivalents and Short-Term Investments | 134.26B | 128.37B | 115.24B | 144.88B | 178.60B | 170.90B |
| Total Debt | 56.74B | 59.78B | 70.47B | 64.16B | 45.61B | 46.82B |
| Total Liabilities | 193.20B | 199.14B | 194.46B | 202.86B | 201.83B | 186.58B |
| Stockholders Equity | 406.70B | 379.77B | 365.45B | 343.38B | 322.47B | 264.15B |
Cash Flow | ||||||
| Free Cash Flow | 49.10B | 52.40B | 2.53B | -8.02B | 62.98B | 40.39B |
| Operating Cash Flow | 97.78B | 100.41B | 93.87B | 86.00B | 145.86B | 90.35B |
| Investing Cash Flow | -63.90B | -53.45B | -85.94B | -97.79B | -54.43B | -62.16B |
| Financing Cash Flow | -28.99B | -39.42B | -39.20B | -29.09B | -57.25B | 12.49B |
United Micro Technical Analysis
Positive
11.66
Price Trends
15.71
Positive
12.82
Positive
10.23
Positive
Market Momentum
1.57
Positive
69.86
Neutral
72.31
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 11.66 is below the 20-day moving average (MA) of 20.42, below the 50-day MA of 15.71, and above the 200-day MA of 10.23, indicating a bullish trend. The MACD of 1.57 indicates Positive momentum. The RSI at 69.86 is Neutral, neither overbought nor oversold. The STOCH value of 72.31 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $29.38B | 131.34 | 8.54% | ― | 10.53% | 19.13% | |
72 Outperform | $45.77B | 86.49 | 7.45% | ― | -9.04% | -4.21% | |
71 Outperform | $53.18B | 35.27 | 13.50% | 6.06% | 7.52% | 17.94% | |
69 Neutral | $44.63B | 59.91 | 6.66% | ― | 0.80% | ― | |
62 Neutral | $82.00B | 54.60 | 14.45% | 2.29% | 15.55% | 43.35% | |
62 Neutral | $70.06B | 477.23 | 0.86% | 1.28% | 0.79% | -86.68% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
UMC
United Micro
23.08
15.28
195.86%
ASX
ASE Technology Holding Co
38.50
28.45
282.93%
ON
ON Semiconductor
125.90
72.96
137.82%
STM
STMicroelectronics
78.95
50.46
177.07%
TSEM
Tower
286.86
247.90
636.29%
GFS
GlobalFoundries Inc
83.98
47.38
129.45%
United Micro Corporate Events
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...
United Microelectronics Posts Strong Q1 2026 Results and Launches New Share Buyback
Apr 29, 2026
On April 29, 2026, UMC’s board approved the consolidated financial statements for the first quarter of 2026, reporting revenue of NT$61.0 billion, net profit of NT$16.1 billion, basic EPS of NT$1.29, and total assets of NT$599.9 billion, und...
United Microelectronics Files Reviewed Q1 2026 Consolidated Results
Apr 29, 2026
United Microelectronics Corporation on April 29, 2026 filed a Form 6-K furnishing its consolidated financial statements for the first quarter ended March 31, 2026, together with a review report from Ernst Young Taiwan. The independent auditors is...
United Microelectronics Sets April 29 Board Meeting to Review Q1 2026 Results
Apr 21, 2026
United Microelectronics Corporation announced on April 21, 2026, that its board of directors has scheduled a meeting for April 29, 2026, to review and approve the company’s consolidated financial report for the first quarter of 2026. The not...
United Microelectronics Sets Q1 2026 Investor Call as Executives Trim Shareholdings
Apr 15, 2026
On April 15, 2026, United Microelectronics Corporation announced it will hold its first-quarter 2026 investor conference on April 29, 2026, at 17:00 via an online teleconference to present its financial and operating results. The company also disc...
United Microelectronics Posts Higher March Sales and Details Derivatives Position
Apr 8, 2026
On April 8, 2026, UMC reported its March 2026 operating metrics, showing a solid year-on-year increase in net sales. March net sales reached NT$20.83 billion, up 4.89% from NT$19.86 billion a year earlier, while year-to-date net sales rose 5.49% t...
United Microelectronics Implements New U.S. Insider Disclosure Rules
Mar 26, 2026
On March 26, 2026, United Microelectronics Corporation reported that, under the U.S. “Holding Foreign Insiders Accountable Act” enacted on December 18, 2025, its directors and officers will be subject to new disclosure obligations star...
United Microelectronics Details Subsidiary Resolutions, Capital Reduction and Insider Share Sale
Mar 12, 2026
On March 12, 2026, United Microelectronics Corporation reported that its major subsidiary United Semiconductor (Xiamen) Co., Ltd. held a shareholders’ meeting the same day, approving the 2025 audited financial report and the 2026 annual oper...
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.