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United Microelectronics (UMC)
NYSE:UMC

United Micro (UMC) AI Stock Analysis

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UMC

United Micro

(NYSE:UMC)

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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
$10.00
â–˛(16.96% Upside)
The score is driven primarily by solid financial stability (low leverage, strong equity base) and healthy profitability/cash generation despite weak revenue growth. Valuation is supportive due to a moderate P/E and strong dividend yield, while technicals are constructive but held back by an elevated RSI. Earnings-call guidance points to steady near-term conditions with margin headwinds, balanced by longer-term 22nm growth expectations.
Positive Factors
Conservative balance sheet
Low leverage and a high equity ratio provide durable financial flexibility for a capital-intensive foundry. This balance-sheet strength supports multi-year R&D and capacity programs, enables debt issuance for strategic needs, and helps absorb cyclicality without forcing asset sales or drastic financing shifts.
Robust margins and cash generation
Sustained gross and net margins with strong free cash flow growth indicate structural ability to convert operations into investable cash. This underpins dividend support, capex funding and R&D spend over the medium term, improving resilience even if topline momentum moderates.
Strengthening tech roadmap (22nm traction)
Demonstrable 22nm adoption and roadmap momentum represent a durable competitive differentiator for specialty/advanced nodes. Continued tape-outs and product wins can raise ASPs, deepen customer relationships, and secure structural share in high-value segments like telecom and automotive over the next several quarters.
Negative Factors
Volatile and weak historical revenue momentum
A dramatic trailing revenue contraction undermines scale economics and predictability in a capacity-driven business. Even with healthy margins, sustained top-line instability risks underutilized fabs, weaker pricing leverage with customers, and makes multi-quarter planning for capacity and R&D more challenging.
Rising depreciation burden
A step-up in depreciation is a lasting margin headwind tied to past and ongoing capex. Higher non-cash charges compress reported gross margins and operating income for multiple years, reducing headline profitability despite operational improvements and complicating comparisons and incentive structures.
Large ongoing capex and capacity commitments
Significant capex programs are structurally necessary but raise liquidity and execution risk in a cyclical industry. Sustained high investments increase future depreciation, pressure free cash flow conversion, and can require persistent funding or higher working-capital discipline over the medium term.

United Micro (UMC) vs. SPDR S&P 500 ETF (SPY)

United Micro Business Overview & Revenue Model

Company DescriptionUnited 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 assembly and testing services. It serves fabless design companies and integrated device manufacturers. United Microelectronics Corporation was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.
How the Company Makes MoneyUMC generates revenue primarily through its foundry services, which involve manufacturing semiconductor wafers for clients based on their designs. The company operates on a contract basis, charging fees for production based on the complexity and volume of the chips produced. Key revenue streams include the production of standard logic, mixed-signal, and radio frequency ICs. UMC's partnerships with major semiconductor design companies and collaborations with technology firms enhance its market presence and contribute to its earnings. Additionally, the company invests in research and development to innovate and improve its manufacturing processes, allowing it to attract a broader customer base and command premium pricing for advanced technologies.

United Micro Earnings Call Summary

Earnings Call Date:Oct 29, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Jan 28, 2026
Earnings Call Sentiment Neutral
UMC demonstrated strong revenue growth and capacity utilization, particularly in its 22-nanometer technology, and successfully expanded its North American market share. However, challenges such as increased depreciation costs, a decline in net income, and pressure on gross margins due to unfavorable currency exchange rates tempered these achievements.
Q3-2025 Updates
Positive Updates
Revenue Growth and Improved Gross Margin
UMC reported consolidated revenue of TWD 59.13 billion in Q3 2025, with a slight increase in gross margin to 29.8% due to better capacity utilization. Year-over-year revenue growth for the first three quarters was 2.2%.
Increased Capacity Utilization and Wafer Shipments
Capacity utilization rate climbed to 78% with wafer shipments reaching 1 million 12-inch equivalent wafers, driven by demand growth across market segments.
Strong Performance in 22-nanometer Technology
22-nanometer technology accounted for more than 10% of total sales in 2025, with expectations of over 50 product tape-outs and continued revenue contribution growth into 2026.
Geographic Revenue Growth
North American revenue increased to 25% of total revenue in Q3 2025, up from 20% in the previous quarter.
Strategic Technology Developments
UMC announced the readiness of its 55-nanometer BCD platform, targeting mobile, consumer, automotive, and industrial applications.
Negative Updates
Decline in Net Income
Net income for the first three quarters of 2025 decreased to TWD 2.54 per share compared to TWD 3.12 in the same period of 2024.
Challenges with Depreciation Costs
UMC faced over a 20% increase in annual depreciation expenses, impacting gross margin despite favorable market conditions.
Decline in Revenue from Asia
Revenue from Asia decreased by nearly 4 percentage points to 63% of total revenue in Q3 2025.
Gross Margin Pressure
Despite improvements, gross margin is expected to remain in the high 20% range due to continued high depreciation and unfavorable foreign exchange impacts.
Company Guidance
During UMC's 2025 third-quarter earnings call, the company provided guidance for the fourth quarter of 2025. UMC anticipates wafer shipments to remain flat compared to the third quarter, with an ASP in U.S. dollars expected to stay firm. The gross margin is projected to be in the high 20% range, while the capacity utilization rate is forecasted to be in the mid-70% range. Additionally, UMC's 2025 cash-based CapEx budget is set to remain unchanged at USD 1.8 billion. The company also highlighted that the 22-nanometer technology platform continues to be a differentiator in the market, with significant growth expected in 2026.

United Micro Financial Statement Overview

Summary
United Micro exhibits a stable financial profile with strong profitability margins and a solid balance sheet. Despite challenges in revenue growth, profitability and cash flow generation remain robust. The low leverage and strong equity position provide a cushion against potential risks.
Income Statement
United Micro's income statement shows a mixed performance. The company has experienced a decline in revenue growth, with a negative growth rate of -57.2% in the TTM period. However, it maintains healthy profitability margins, with a gross profit margin of 29.9% and a net profit margin of 17.4%. The EBIT and EBITDA margins are also strong at 20.3% and 43.4%, respectively. Despite the revenue decline, the company demonstrates stability in its profitability.
Balance Sheet
The balance sheet of United Micro reflects a solid financial position. The debt-to-equity ratio is low at 0.20, indicating conservative leverage. The return on equity is moderate at 11.3%, suggesting efficient use of equity. The equity ratio stands at 65.0%, highlighting a strong equity base relative to total assets. Overall, the balance sheet suggests financial stability with manageable debt levels.
Cash Flow
United Micro's cash flow statement indicates positive trends. The free cash flow growth rate is robust at 41.6%, showing improved cash generation. The operating cash flow to net income ratio is healthy at 0.87, indicating strong cash flow relative to earnings. However, the free cash flow to net income ratio is lower at 0.33, suggesting some room for improvement in converting income into free cash flow. Overall, the cash flow position is solid with positive growth.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue236.13B232.30B222.53B278.71B213.01B176.82B
Gross Profit68.29B75.65B77.74B125.76B72.05B39.00B
EBITDA103.70B97.35B105.85B153.72B107.44B73.46B
Net Income40.16B47.21B59.69B89.48B51.25B22.86B
Balance Sheet
Total Assets555.40B560.17B546.58B524.65B450.96B377.52B
Cash, Cash Equivalents and Short-Term Investments119.04B115.24B144.88B178.60B170.90B109.57B
Total Debt75.91B70.47B64.16B45.61B46.82B68.39B
Total Liabilities194.20B194.46B202.86B201.83B186.58B141.74B
Stockholders Equity361.06B365.45B343.38B322.47B264.15B235.66B
Cash Flow
Free Cash Flow46.49B5.33B-8.02B62.98B40.39B37.39B
Operating Cash Flow99.84B93.87B86.00B145.86B90.35B65.75B
Investing Cash Flow-53.06B-85.94B-97.79B-54.43B-62.16B-40.11B
Financing Cash Flow-42.09B-39.20B-29.09B-57.25B12.49B-25.60B

United Micro Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.55
Price Trends
50DMA
7.71
Positive
100DMA
7.42
Positive
200DMA
7.27
Positive
Market Momentum
MACD
0.18
Negative
RSI
63.85
Neutral
STOCH
80.37
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 8.55 is above the 20-day moving average (MA) of 8.04, above the 50-day MA of 7.71, and above the 200-day MA of 7.27, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 63.85 is Neutral, neither overbought nor oversold. The STOCH value of 80.37 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$13.11B68.007.19%―8.03%-6.03%
73
Outperform
$24.50B79.463.87%―-16.13%-81.06%
69
Neutral
$21.94B17.0410.97%6.06%5.87%-20.93%
69
Neutral
$37.55B33.9511.17%2.29%8.01%10.41%
63
Neutral
$21.62B-466.55-0.38%―0.25%-106.22%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
60
Neutral
$25.63B50.703.00%1.28%-17.33%-76.71%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UMC
United Micro
8.55
2.63
44.43%
ASX
ASE Technology Holding Co
17.33
7.45
75.40%
ON
ON Semiconductor
60.89
5.02
8.99%
STM
STMicroelectronics
28.04
4.33
18.26%
TSEM
Tower
117.33
66.78
132.11%
GFS
GlobalFoundries Inc
38.91
-1.88
-4.61%

United Micro Corporate Events

United Microelectronics Posts Modest December and Full-Year 2025 Revenue Growth
Jan 7, 2026

On January 7, 2026, United Microelectronics Corporation reported its operating metrics for December 2025, showing net sales of NT$19.28 billion for the month, up 1.66% from December 2024, and full-year 2025 net sales of NT$237.55 billion, a 2.26% increase over 2024, signaling modest growth momentum amid a competitive foundry landscape. The company disclosed that it had no funds lent to other parties, reported no active endorsements or guarantees after the early prepayment and release of its guarantee on USC (Xiamen)’s syndicated bank loan, and outlined limited financial derivative activity primarily in forward contracts with small associated fair value and realized losses and minor gains, underscoring a conservative financial risk profile for stakeholders.

The most recent analyst rating on (UMC) stock is a Sell with a $4.80 price target. To see the full list of analyst forecasts on United Micro stock, see the UMC Stock Forecast page.

United Microelectronics Invests NT$1.26 Billion in New Equipment to Boost Production and R&D
Dec 30, 2025

Between January 7 and December 19, 2025, United Microelectronics Corporation acquired a batch of machinery and equipment from Applied Materials South East Asia Pte. Ltd. for a total consideration of NT$1,259,089,982 in a non-related party transaction. The purchase, finalized and approved internally on December 19, 2025, was determined through price negotiation based on market prices and is intended to support UMC’s production and R&D activities, signaling continued investment in manufacturing capacity and technology capabilities that could enhance its competitiveness and operational efficiency in the semiconductor foundry market.

The most recent analyst rating on (UMC) stock is a Buy with a $8.50 price target. To see the full list of analyst forecasts on United Micro stock, see the UMC Stock Forecast page.

UMC Advances Capacity Expansion and Strategic Investments in December 2025
Dec 17, 2025

On December 17, 2025, UMC announced two significant developments during its board meeting aimed at enhancing its operations and strategic positioning. First, the company approved a capital budget execution worth NT$ 30,096 million to expand its production capacity leveraging its working capital. Second, UMC disclosed its participation in the capital increase of Unimicron Technology Corp., subscribing up to 6,034,482 shares worth NTD 700,000,000, reflecting a strategic investment aligned with the company’s vision. These initiatives signify targeted growth investments and underline UMC’s commitment to both operational expansion and strengthening strategic partnerships.

The most recent analyst rating on (UMC) stock is a Buy with a $8.50 price target. To see the full list of analyst forecasts on United Micro stock, see the UMC Stock Forecast page.

United Microelectronics Announces Employee Stock Awards and Shareholder Trading Updates
Dec 10, 2025

On December 5, 2025, United Microelectronics Corporation announced the record date for a capital increase related to the issuance of 32,878,000 restricted stock awards for employees, following approvals from the 2024 Annual Shareholders’ Meeting and the Financial Supervisory Commission. Additionally, the company reported trading activities and changes in share pledges by its directors, executive officers, and significant shareholders for November 2025, reflecting minor adjustments in shareholdings.

The most recent analyst rating on (UMC) stock is a Buy with a $8.50 price target. To see the full list of analyst forecasts on United Micro stock, see the UMC Stock Forecast page.

UMC and Polar Partner for U.S. Semiconductor Manufacturing
Dec 4, 2025

On December 4, 2025, UMC announced a Memorandum of Understanding (MOU) with Polar Semiconductor to explore collaboration on U.S.-based 8-inch wafer production. This partnership aims to enhance supply chain resilience and meet the growing demand for domestic semiconductor manufacturing, particularly in the U.S. The collaboration is expected to strengthen UMC’s market position by supporting multi-sourcing strategies and addressing customer needs for made-in-USA chips. Additionally, UMC reported a 5.91% increase in net sales for November 2025 compared to the previous year, reflecting continued growth in its operations.

The most recent analyst rating on (UMC) stock is a Buy with a $8.50 price target. To see the full list of analyst forecasts on United Micro stock, see the UMC Stock Forecast page.

United Microelectronics Clarifies Market Speculation and Announces Bond Issuance
Nov 28, 2025

On November 24, 2025, United Microelectronics Corporation addressed a report by Commercial Times, which highlighted the booming specialty technology process at UMC, expected to maintain its momentum into the following year. Additionally, UMC announced a supplement to its fourth unsecured straight corporate bond issuance for 2025, with a total issuance amount of NT$4,800 million. The bonds, issued at a fixed rate, are intended to aid in debt repayment, reflecting UMC’s strategic financial management aimed at strengthening its market position.

The most recent analyst rating on (UMC) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on United Micro stock, see the UMC Stock Forecast page.

United Microelectronics to Attend Taiwan Corporate Day on November 24, 2025
Nov 20, 2025

On November 18, 2025, United Microelectronics Corporation announced its participation in the ‘2025 Taiwan Corporate Day’ investor conference, organized by Citi, scheduled for November 24, 2025, at the Mandarin Oriental Taipei. This engagement is part of UMC’s ongoing efforts to maintain transparency and communication with institutional investors, potentially impacting its market positioning and stakeholder relations positively.

The most recent analyst rating on (UMC) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on United Micro stock, see the UMC Stock Forecast page.

United Microelectronics Announces Capital Reduction and Shareholder Activities
Nov 12, 2025

On November 12, 2025, United Microelectronics Corporation announced a capital reduction following the cancellation of the RSA, with the change registered on November 10, 2025. This adjustment slightly decreased the company’s paid-in capital and shares outstanding, while maintaining the book value per share. Additionally, the company reported on the trading and pledging activities of its directors, executive officers, and significant shareholders for October 2025, indicating a focus on transparency and governance.

The most recent analyst rating on (UMC) stock is a Buy with a $8.50 price target. To see the full list of analyst forecasts on United Micro stock, see the UMC Stock Forecast page.

United Microelectronics Reports October 2025 Financial Performance
Nov 6, 2025

On November 6, 2025, United Microelectronics Corporation reported its financial performance for October 2025, highlighting a slight decline in net sales by 0.36% compared to the same period in 2024. Despite this, the year-to-date sales showed a positive growth of 1.94%. The company also announced the release of its endorsement to USC(Xiamen)’s syndicated loan due to early prepayment, indicating a strategic financial maneuver. Additionally, financial derivatives transactions were detailed, showing minimal activity with a small realized profit.

The most recent analyst rating on (UMC) stock is a Buy with a $8.50 price target. To see the full list of analyst forecasts on United Micro stock, see the UMC Stock Forecast page.

UMC Reports Q3 2025 Financial Results and Strategic Developments
Oct 29, 2025

On October 29, 2025, United Microelectronics Corporation announced several key developments following its board meeting. The board approved the third quarter consolidated financial statements, revealing a revenue of NT$59.13 billion, a slight increase from the previous quarter, but a 2.2% decrease year-over-year. The company also reported a net income of NT$14.98 billion, with a gross margin of 29.8%. UMC’s 22nm technology continues to show strong market traction, contributing significantly to the company’s sales. Additionally, the board approved a capital budget execution of NT$1,551 million for capacity deployment and the cancellation of restricted shares due to non-fulfillment of vesting conditions. UMC’s strategic focus on specialty technologies and its commitment to climate action, including a pledge for net zero greenhouse gas emissions by 2050, positions it well for future growth and industry leadership.

The most recent analyst rating on (UMC) stock is a Buy with a $8.50 price target. To see the full list of analyst forecasts on United Micro stock, see the UMC Stock Forecast page.

United Microelectronics Reports Stable Financial Performance for Q3 2025
Oct 29, 2025

On October 29, 2025, United Microelectronics Corporation released its consolidated financial statements for the nine-month periods ending September 30, 2025, and 2024. The report, reviewed by independent auditors, indicates that the company’s financial position and performance remain stable, with no significant issues identified. This financial stability reinforces UMC’s position in the semiconductor industry, providing confidence to stakeholders about the company’s operational health and future prospects.

The most recent analyst rating on (UMC) stock is a Buy with a $8.50 price target. To see the full list of analyst forecasts on United Micro stock, see the UMC Stock Forecast page.

United Microelectronics Announces Key Resolutions from Shareholders’ Meeting
Oct 28, 2025

On October 28, 2025, United Microelectronics Corporation’s major subsidiary, United Semiconductor (Xiamen) Co., Ltd., held an Extraordinary Shareholders’ Meeting where important resolutions were passed. The key resolution approved amendments to the company’s ‘Asset Acquisition and Disposal Procedures,’ indicating a strategic move to potentially enhance operational efficiency and asset management, which could impact stakeholders by aligning the company’s asset strategies with its growth objectives.

The most recent analyst rating on (UMC) stock is a Buy with a $8.50 price target. To see the full list of analyst forecasts on United Micro stock, see the UMC Stock Forecast page.

United Microelectronics Subsidiary Calls Extraordinary Shareholders’ Meeting
Oct 27, 2025

On October 27, 2025, United Microelectronics Corporation announced that its major subsidiary, United Semiconductor (Xiamen) Co., Ltd., resolved to convene an extraordinary shareholders’ meeting on October 28, 2025. The primary agenda for this meeting is to discuss amendments to the company’s ‘Asset Acquisition and Disposal Procedures,’ which could potentially impact the company’s operational strategies and stakeholder interests.

The most recent analyst rating on (UMC) stock is a Buy with a $8.50 price target. To see the full list of analyst forecasts on United Micro stock, see the UMC Stock Forecast page.

United Microelectronics Announces Q3 Board Meeting and New Bond Issuance
Oct 21, 2025

On October 21, 2025, United Microelectronics Corporation announced the date for its Q3 2025 Board Meeting, scheduled for October 29, where the consolidated financial report will be reviewed. Additionally, the company supplemented its April 2025 resolution with details on a NT$5,000 million unsecured straight corporate bond issuance, set at a fixed rate of 1.70% for three years, aimed at debt repayment. This financial maneuver is expected to strengthen UMC’s fiscal stability and enhance its market position.

The most recent analyst rating on (UMC) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on United Micro stock, see the UMC Stock Forecast page.

United Microelectronics Schedules Q3 2025 Investor Conference
Oct 15, 2025

On October 15, 2025, United Microelectronics Corporation announced that it will hold its Q3 2025 Investor Conference on October 29, 2025, via an online teleconference to discuss its financial and operating results. Additionally, the company reported changes in the trading and pledging of its common shares by directors, executive officers, and major shareholders for September 2025, indicating a decrease in shares held by some executives.

The most recent analyst rating on (UMC) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on United Micro stock, see the UMC Stock Forecast page.

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.Date of analysis: Jan 08, 2026