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Formosa Sumco Technology Corporation (3532) AI Stock Analysis

TW:3532

Formosa Sumco Technology Corporation

(TWSE:3532)

Select Model
Rating:40Underperform
Price Target:TWD 244.00â–¼(-19.47% Downside)
Action:initiatedcoverage
Date:11/10/26

Weak financial performance, particularly negative free cash flow and declining profitability, is the primary constraint. Technical weakness and an extremely elevated P/E ratio further reduce the score, despite the balance sheet retaining moderate support and technical indicators being oversold.

Positive Factors
Critical semiconductor input positionSilicon wafers are essential inputs to semiconductor fabrication, giving the company exposure to multiple chip categories rather than a single end market. Its role across logic, memory, and other devices supports durable relevance as semiconductor production expands or product demand shifts.
Negative Factors
Rising leverage and falling returnsThe combination of substantially higher leverage and sharply lower returns reduces financial flexibility during a weak earnings cycle. More debt can constrain capital allocation and increase dependence on operating recovery, while the decline in ROE signals that invested capital is currently producing much less profit.

Formosa Sumco Technology Corporation (3532) vs. SPDR S&P 500 ETF (SPY)

-100%0%100%200%300%400%500%TW:3532+235.53%SPY+14.28%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
TWD 113.83B
Dividend Yield
0.33%
Average Volume (3M)
7.51M
Price to Earnings (P/E)
233.6
Beta (1Y)
2.26
Revenue Growth
9.32%
EPS Growth
-23.79%
Country
TW
Employees
1,452
Sector
General
Sector Strength
55
Industry
Semiconductors

Formosa Sumco Technology Corporation Business Overview & Revenue Model

Company Description

Formosa Sumco Technology Corporation focuses on the fabrication and commercialization of silicon wafers for the semiconductor industry, with its main operations situated in Taiwan. The company's offerings include a diverse range of specialized wafers...

Formosa Sumco Technology Corporation Financial Statement Overview

Summary

Strong revenue growth is outweighed by sharply compressed margins, declining net income, low return on equity, negative free cash flow, and weak cash conversion. The balance sheet provides moderate support through stable equity and reduced debt.

Income Statement

42Neutral

Balance Sheet

60Neutral

Cash Flow

25Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue13.28B12.33B12.42B14.88B16.39B12.17B
Gross Profit1.12B1.82B2.66B5.03B6.18B2.55B
EBITDA3.61B3.06B4.09B6.56B8.05B3.75B
Net Income502.47M614.47M1.30B3.46B4.82B1.41B
Balance Sheet
Total Assets51.28B51.30B53.42B49.19B36.01B23.72B
Cash, Cash Equivalents and Short-Term Investments1.98B1.74B4.69B4.32B10.81B9.28B
Total Debt20.52B20.52B21.35B11.52B49.17M17.59M
Total Liabilities26.99B26.59B28.62B23.74B11.18B2.87B
Stockholders Equity24.29B24.71B24.81B25.45B24.83B20.85B
Cash Flow
Free Cash Flow634.82M-1.38B-7.56B-14.71B2.26B2.02B
Operating Cash Flow2.43B1.28B1.96B3.65B12.25B3.77B
Investing Cash Flow-1.81B-2.68B-9.47B-18.80B-10.39B-1.45B
Financing Cash Flow351.36M-1.57B7.89B8.67B-336.59M-896.42M

Formosa Sumco Technology Corporation Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

TW:3532 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TW:5434TW:543474OutperformTWD 97.59B16.52―2.58%21.35%55.48%
TW:1560TW:156061NeutralTWD 113.47B54.15―0.67%23.55%77.73%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
TW:3374TW:337455NeutralTWD 115.19B80.66―0.54%16.99%21.12%
TW:5483TW:548342NeutralTWD 102.92B17.56―2.17%2.81%90.57%
TW:3532TW:353240UnderperformTWD 117.13B233.59―0.33%9.32%-23.79%
TW:6182TW:618239UnderperformTWD 50.46B360.65――9.40%―

* General Sector Average

Performance Comparison

0%200%400%TW:3532TW:1560TW:3374TW:5434TW:5483TW:6182Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
TW:3532 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TW:3532Formosa Sumco Technology Corporation303.00208.00218.96%
TW:1560Kinik Co.737.00431.05140.89%
TW:3374Xintec Inc.466.50328.15237.19%
TW:5434Topco Scientific Co., Ltd.520.00216.0271.06%
TW:5483Sino-American Silicon Products Inc.161.0058.4557.00%
TW:6182Wafer Works Corp.85.5055.95189.29%
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