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United Micro
(NYSE:UMC)
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Rating:76Outperform
Price Target:
$21.50
â–²(9.69% Upside)
Action:Reiterated
Date:10/06/26
UMC scores well primarily on financial strength (low leverage, strong equity base, and healthy TTM profitability) and a supportive earnings outlook (higher utilization and margin improvement guided). Technicals also indicate a constructive uptrend. The main constraints are cyclical cash-flow variability and a valuation (P/E ~22.8 with a modest ~1.68% yield) that leaves less margin for execution or cycle-related setbacks.
Positive Factors
Conservative balance sheet
UMC’s low leverage and substantially higher equity provide financial flexibility through semiconductor cycles. A strong capital base can support capacity investment, absorb operating volatility, and reduce reliance on stressed financing markets while supporting attractive returns on shareholder capital.
Negative Factors
Cyclical cash generation
UMC’s cash generation can swing sharply with semiconductor demand and capital spending, even when reported earnings remain profitable. This variability may constrain internally funded growth, increase dependence on financing during downturns, and make shareholder returns less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
UMC’s low leverage and substantially higher equity provide financial flexibility through semiconductor cycles. A strong capital base can support capacity investment, absorb operating volatility, and reduce reliance on stressed financing markets while supporting attractive returns on shareholder capital.
Read all positive factors
United Micro (UMC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$48.29B
Dividend Yield2.12%
Average Volume (3M)11.65M
Price to Earnings (P/E)18.8
Beta (1Y)1.06
Revenue Growth9.07%
EPS Growth104.71%
CountryUS
Employees20,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)33.50
Shares Outstanding2,514,018,800
10 Day Avg. Volume10,668,042
30 Day Avg. Volume11,650,132
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 Cap1.36
Enterprise Value/Revenue0.26
Enterprise Value/Gross Profit0.86
Enterprise Value/Ebitda0.42
Forecast
1Y Price Target
$18.97Price Target Upside-3.21% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)1.17
Revenue Forecast (FY)$8.81B
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 selling contract semiconductor manufacturing services (foundry services). Customers design chips and outsource fabrication to UMC, which produces silicon wafers using its process technologies and then delivers finished...
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 | 155.94B | 108.87B | 99.71B | 105.85B | 153.99B | 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
Negative
19.60
Price Trends
21.65
Negative
21.75
Negative
16.69
Positive
Market Momentum
-0.98
Positive
33.10
Neutral
10.41
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UMC, the sentiment is Negative. The current price of 19.6 is below the 20-day moving average (MA) of 22.24, below the 50-day MA of 21.65, and above the 200-day MA of 16.69, indicating a neutral trend. The MACD of -0.98 indicates Positive momentum. The RSI at 33.10 is Neutral, neither overbought nor oversold. The STOCH value of 10.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $48.29B | 18.76 | 20.98% | 2.12% | 9.07% | 104.71% | |
75 Outperform | $1.90T | 24.27 | 41.19% | 0.90% | 35.21% | ― | |
68 Neutral | $19.02B | 65.92 | 9.82% | ― | 14.90% | 45.52% | |
67 Neutral | $24.36B | 34.41 | 6.07% | 0.54% | 1.40% | ― | |
62 Neutral | $88.26B | 47.02 | 17.32% | 1.05% | 18.30% | 82.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $459.68B | -41.21 | -10.76% | 2.63% | 7.47% | 55.56% |
* Technology Sector Average
UMC
United Micro
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152.91%
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25.82%
United Micro Corporate Events
United Microelectronics Announces Xiamen Leadership Change and September Insider Share Trades
Oct 23, 2026
On October 23, 2026, United Microelectronics Corporation disclosed a leadership change at its major subsidiary United Semiconductor (Xiamen) Co., Ltd., with Senior Fab Director Lo Ching-Shu appointed general manager, replacing Tan Wen Yi through a...
United Microelectronics Clarifies Media Report and Sets October 28 Investor Call
Oct 13, 2026
United Microelectronics Corporation filed a Form 6-K with the U.S. Securities and Exchange Commission on October 13, 2026, disclosing two recent announcements related to its financial communications. On October 7, 2026, the company formally distan...
United Microelectronics Boosts Capacity with Major Equipment Purchase as September Sales Climb
Oct 6, 2026
United Microelectronics Corporation reported that between December 23, 2025 and October 1, 2026 it acquired a major batch of machinery and equipment from Applied Materials South East Asia Pte. Ltd. for approximately NT$6.98 billion, to support pro...
United Microelectronics Prices US$1.8 Billion Seventh Overseas Convertible Bonds
Oct 5, 2026
On October 5, 2026, United Microelectronics Corporation announced it had completed pricing for its seventh issuance of unsecured overseas convertible bonds, totaling US$1.8 billion split evenly between Tranche A and Tranche B. The bonds, to be iss...
United Microelectronics Reports No Insider Share Changes for August 2026
Sep 29, 2026
United Microelectronics Corporation filed a Form 6-K with the U.S. Securities and Exchange Commission on September 29, 2026, reporting share-related activities by its directors, executive officers and 10% shareholders for August 2026. The filing, ...
UMC Reports Strong August Sales and Steps Up Investor Outreach
Sep 4, 2026
On September 10, 2026, United Microelectronics Corporation will present at Citi’s 2026 GEMs Conference in New York, followed by an appearance at UBS’s Taiwan Summit 2026 in Taipei on September 14–15. These back-to-back investor c...
United Microelectronics Completes NT$4.79 Billion Domestic Convertible Bond Funding
Sep 2, 2026
On September 2, 2026, United Microelectronics Corporation announced that proceeds from its second domestic unsecured convertible corporate bond issuance had been fully received. The head office reported that the collecting bank had gathered all su...
United Microelectronics Approves Up to US$1.8 Billion in 7th Overseas Convertible Bonds
Aug 26, 2026
On August 26, 2026, United Microelectronics Corporation’s board approved the issuance of its 7th series of unsecured overseas convertible bonds, with a total size of up to US$1.8 billion and a tentative coupon rate of 0%. The bonds, to be pu...
United Microelectronics Tweaks Capital Structure With RSA Cancellation and New Convertible Bond Terms
Aug 14, 2026
On August 10, 2026, United Microelectronics Corporation completed a minor capital reduction tied to the cancellation of restricted stock awards, trimming paid-in capital by roughly NT$68.9 million and reducing outstanding shares by about 6.9 milli...
United Microelectronics Posts Nearly 19% July Revenue Gain as 2026 Sales Momentum Builds
Aug 6, 2026
United Microelectronics Corporation reported that its July 2026 net sales rose to NT$23.84 billion, an 18.98% increase from NT$20.04 billion in July 2025, underscoring strengthening demand for its foundry services. Year-to-date 2026 net sales reac...
United Microelectronics Completes NT$12.12 Billion Convertible Bond Funding
Aug 5, 2026
United Microelectronics Corporation announced on August 5, 2026 that proceeds from its first domestic unsecured convertible corporate bond issuance have been fully received. The collecting bank has gathered subscriptions totaling NT$12.12 billion ...
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...
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.