United Microelectronics Corp. (2303) AI Stock Analysis

United Microelectronics Corp.

(TWSE:2303)

Select Model

Rating:68Neutral

Price Target:TWD 100.00▼(-3.85% Downside)

Action:initiatedcoverage

Date:11/09/26

UMC earns a moderately above-average score. The core strengths are a fortress balance sheet (debt-to-equity of 0.15), strong cash generation with free cash flow recovering to NT$69.1bn, and an upbeat earnings call featuring record wafer shipments, 92% utilization, and a guided ~10% blended ASP increase for 2027 plus growing AI, silicon photonics and advanced packaging exposure. Valuation is supportive at a 13.6x P/E with a 2.83% dividend yield. The main drag is technicals: the shares trade sharply below all key moving averages with strongly negative MACD and deeply depressed RSI and Stochastic readings, reflecting intense selling pressure. Fundamental watch points include multi-year gross margin erosion, near-term capacity constraints that cap 2027 growth, rising depreciation and raw material costs, and reported profits flattered by non-operating items.

Positive Factors

Improving profitability and growthStrong year-to-date revenue and earnings growth indicates that demand, pricing, product mix, or utilization has improved materially. If this operating backdrop persists, higher profitability can strengthen internal funding capacity and support continued investment in differentiated foundry services.

Negative Factors

Capacity constrains growthHigh utilization and delayed capacity additions could prevent UMC from fully converting robust customer demand into shipments and revenue over the next several quarters. This constraint may also limit customer growth opportunities until expansion projects become operational at scale.

United Microelectronics Corp. (2303) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 1.29T
Dividend Yield: 2.51%
Average Volume (3M): 162.59M
Price to Earnings (P/E): 15.3
Beta (1Y): 1.05
Revenue Growth: 12.57%
EPS Growth: 100.52%
Country: TW
Employees: 20,000
Sector: General
Sector Strength: 55
Industry: Semiconductors

United Microelectronics Corp. Business Overview & Revenue Model

Company Description

United Microelectronics Corporation (UMC) functions as a leading semiconductor wafer foundry with an extensive international footprint, operating across Taiwan, Singapore, China, Hong Kong, Japan, the United States, and Europe, among other global reg...

United Microelectronics Corp. Financial Statement Overview

Summary

Blending the Income Statement (68), Balance Sheet (85) and Cash Flow (78) scores, UMC screens as financially sound. TTM revenue of NT$265.8bn is up ~6% year-over-year, EBITDA margin exceeds 60%, operating cash flow of NT$118.7bn covers net income ~1.6x, and free cash flow has rebounded to NT$69.1bn after two weak years. The balance sheet is the standout strength, with debt-to-equity of just 0.15 and equity funding roughly 70% of assets. Offsetting this are multi-year gross margin compression (31% TTM vs 45% in 2022), high cyclicality of mature-node demand, heavy capex (~NT$50bn annually), and reported net income that appears inflated by non-operating items, which overstates the underlying net margin and ROE.

Income Statement

68Positive

Balance Sheet

85Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	265.82B	237.55B	232.30B	222.53B	278.71B	213.01B
Gross Profit	83.20B	68.91B	75.65B	77.74B	125.76B	72.05B
EBITDA	161.70B	108.91B	106.89B	105.85B	153.99B	102.35B
Net Income	84.88B	41.72B	47.21B	60.99B	89.48B	51.25B
Balance Sheet
Total Assets	675.79B	579.00B	560.17B	559.19B	524.65B	450.96B
Cash, Cash Equivalents and Short-Term Investments	151.58B	128.37B	115.24B	144.88B	178.60B	170.90B
Total Debt	70.39B	59.78B	70.47B	80.17B	53.20B	46.82B
Total Liabilities	204.91B	193.66B	194.46B	197.78B	201.83B	186.58B
Stockholders Equity	470.92B	379.77B	365.45B	359.24B	322.47B	264.15B
Cash Flow
Free Cash Flow	69.09B	52.12B	2.53B	-8.02B	62.98B	40.39B
Operating Cash Flow	118.66B	99.86B	93.87B	86.00B	145.86B	90.35B
Investing Cash Flow	-44.83B	-53.15B	-85.94B	-97.79B	-54.43B	-62.16B
Financing Cash Flow	-40.38B	-39.20B	-39.20B	-29.09B	-57.25B	12.49B

United Microelectronics Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2303 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:3006	77Outperform	TWD 64.15B	3.45	―	0.43%	272.74%	―
TW:2303	68Neutral	TWD 1.26T	15.27	―	2.51%	12.57%	100.52%
TW:2408	65Neutral	TWD 1.32T	7.57	63.83%	0.34%	585.80%	―
TW:3105	57Neutral	TWD 204.76B	65.22	―	0.38%	31.84%	1329.89%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:2344	55Neutral	TWD 607.50B	8.49	―	0.37%	154.14%	―
TW:6770	37Underperform	TWD 278.96B	11.23	―	0.39%	42.62%	―

* General Sector Average

Performance Comparison

TW:2303 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2303	United Microelectronics Corp.	104.00	60.30	137.98%
TW:2408	Nanya Technology Corporation	394.00	231.02	141.75%
TW:2344	Winbond Electronics Corp.	136.50	72.63	113.73%
TW:3006	Elite Semiconductor Microelectronics Technology Inc.	235.00	140.15	147.75%
TW:3105	Win Semiconductors Corp.	521.00	392.04	304.01%
TW:6770	Powerchip Semiconductor Manufacturing Corp.	58.50	22.97	64.64%

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: Nov 09, 2026

United Microelectronics Corp. AI Stock Analysis