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United Microelectronics Corp. (2303) AI Stock Analysis

TW:2303

United Microelectronics Corp.

(TWSE:2303)

Select Model
Rating:73Outperform
Price Target:TWD 103.00â–²(1.48% Upside)
Action:initiatedcoverage
Date:11/10/26

The overall score of 73 reflects a company with strong fundamentals and a highly promising growth outlook that is currently facing significant technical headwinds. The financial performance is excellent, anchored by a fortress balance sheet and robust cash flow. The earnings call reveals a powerfully optimistic future, driven by AI demand and improving pricing, which is the most significant positive factor. However, the stock's technical picture is deeply bearish, with the price in a clear downtrend and momentum at extremely low levels, creating a stark contrast between the company's operational strength and its current market trading dynamics.

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)

-50%0%50%100%150%200%250%300%350%TW:2303+133.57%SPY+14.55%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
TWD 1.28T
Dividend Yield
2.57%
Average Volume (3M)
160.84M
Price to Earnings (P/E)
14.9
Beta (1Y)
1.04
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

Financial health is robust, driven by a strong balance sheet (Score: 85) with minimal debt and a 20% ROE, excellent cash flow conversion (Score: 82) with TTM operating cash flow 1.63x net income, and a solid income statement (Score: 78) showing 32% net margins. The primary risk is the inherent cyclicality of the semiconductor industry, but current metrics reflect a high-quality, resilient financial profile.

Income Statement

78Positive

Balance Sheet

85Very Positive

Cash Flow

82Very Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue265.82B237.55B232.30B222.53B278.71B213.01B
Gross Profit83.20B68.91B75.65B77.74B125.76B72.05B
EBITDA161.70B108.91B106.89B105.85B153.99B102.35B
Net Income84.88B41.72B47.21B60.99B89.48B51.25B
Balance Sheet
Total Assets675.79B579.00B560.17B559.19B524.65B450.96B
Cash, Cash Equivalents and Short-Term Investments151.58B128.37B115.24B144.88B178.60B170.90B
Total Debt70.39B59.78B70.47B80.17B53.20B46.82B
Total Liabilities204.91B193.66B194.46B197.78B201.83B186.58B
Stockholders Equity470.92B379.77B365.45B359.24B322.47B264.15B
Cash Flow
Free Cash Flow69.09B52.12B2.53B-8.02B62.98B40.39B
Operating Cash Flow118.66B99.86B93.87B86.00B145.86B90.35B
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-57.25B12.49B

United Microelectronics Corp. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

TW:2303 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TW:3006TW:300677OutperformTWD 64.15B3.44―0.43%272.74%―
TW:2303TW:230373OutperformTWD 1.27T14.90―2.57%12.57%100.52%
TW:2408TW:240865NeutralTWD 1.31T7.2463.83%0.36%585.80%―
TW:3105TW:310557NeutralTWD 218.50B53.89―0.35%31.84%1329.26%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
TW:2344TW:234455NeutralTWD 573.75B7.82―0.40%154.14%―
TW:6770TW:677037UnderperformTWD 264.35B10.81―0.40%42.62%―

* General Sector Average

Performance Comparison

0%100%200%300%400%TW:2303TW:2408TW:2344TW:3006TW:3105TW:6770Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TW:2303 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TW:2303United Microelectronics Corp.101.5058.39135.43%
TW:2408Nanya Technology Corporation377.00211.03127.15%
TW:2344Winbond Electronics Corp.125.0059.1489.81%
TW:3006Elite Semiconductor Microelectronics Technology Inc.233.50142.13155.56%
TW:3105Win Semiconductors Corp.568.00445.51363.73%
TW:6770Powerchip Semiconductor Manufacturing Corp.57.0022.1263.39%
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