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United Microelectronics (UMC)



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Upturn Advisory Summary
07/01/2025: UMC (1-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $7.17
1 Year Target Price $7.17
1 | Strong Buy |
0 | Buy |
3 | Hold |
2 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -31.68% | Avg. Invested days 35 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 19.21B USD | Price to earnings Ratio 11.77 | 1Y Target Price 7.17 |
Price to earnings Ratio 11.77 | 1Y Target Price 7.17 | ||
Volume (30-day avg) 6 | Beta 1.29 | 52 Weeks Range 5.28 - 8.43 | Updated Date 07/1/2025 |
52 Weeks Range 5.28 - 8.43 | Updated Date 07/1/2025 | ||
Dividends yield (FY) 6.22% | Basic EPS (TTM) 0.65 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 18.91% | Operating Margin (TTM) 16.88% |
Management Effectiveness
Return on Assets (TTM) 5.45% | Return on Equity (TTM) 11.55% |
Valuation
Trailing PE 11.77 | Forward PE 13.44 | Enterprise Value 17695116251 | Price to Sales(TTM) 0.08 |
Enterprise Value 17695116251 | Price to Sales(TTM) 0.08 | ||
Enterprise Value to Revenue 2.2 | Enterprise Value to EBITDA 4.77 | Shares Outstanding 2511300096 | Shares Floating 11679567900 |
Shares Outstanding 2511300096 | Shares Floating 11679567900 | ||
Percent Insiders - | Percent Institutions 6.4 |
Analyst Ratings
Rating 2 | Target Price 7.17 | Buy - | Strong Buy 1 |
Buy - | Strong Buy 1 | ||
Hold 3 | Sell 2 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
United Microelectronics

Company Overview
History and Background
United Microelectronics Corporation (UMC) was founded in 1980 as Taiwan's first semiconductor company. It initially started as a spin-off from the Industrial Technology Research Institute (ITRI). Over the years, UMC transitioned from a design and manufacturing company to a pure-play foundry, focusing solely on manufacturing integrated circuits for fabless design houses.
Core Business Areas
- Semiconductor Foundry: UMC's core business is providing foundry services, manufacturing integrated circuits based on designs provided by its customers. This includes a range of technologies, from mature nodes to more advanced technologies.
Leadership and Structure
UMC is led by a board of directors and a management team. The organizational structure is typical of large semiconductor manufacturing companies, with divisions dedicated to operations, technology development, sales, and marketing.
Top Products and Market Share
Key Offerings
- 28nm Process Technology: UMC's 28nm process technology is a key offering, used in a variety of applications, including smartphones, consumer electronics, and automotive. Market share data varies, but it is a significant portion of UMC's revenue. Competitors include TSMC, Samsung Foundry, and GlobalFoundries.
- 40nm Process Technology: This technology serves multiple applications including display drivers and power management. Competitors include TSMC, SMIC, GlobalFoundries.
- 55/65nm Process Technology: This is mainly used in display driver and other industrial applications. Competitors include TSMC, SMIC.
Market Dynamics
Industry Overview
The semiconductor foundry industry is characterized by high capital expenditure, rapid technological advancements, and intense competition. Demand is driven by the increasing use of semiconductors in various applications.
Positioning
UMC is a leading pure-play foundry, focusing on providing cost-effective manufacturing solutions. While it doesn't compete at the leading edge of process technology (e.g., 3nm), it is a strong player in mature and specialty process nodes. This allows it to serve a broad range of customers and applications.
Total Addressable Market (TAM)
The global semiconductor foundry market is expected to reach hundreds of billions of USD. UMC is positioned to capture a significant portion of this TAM by focusing on specialized processes and applications.
Upturn SWOT Analysis
Strengths
- Strong position in mature and specialty process technologies
- Established customer base
- Cost-effective manufacturing capabilities
- Global presence
Weaknesses
- Not a leader in advanced process technologies (e.g., 3nm)
- Lower profit margins compared to leading-edge foundries
- Dependent on customer designs
Opportunities
- Growing demand for semiconductors in automotive, IoT, and industrial applications
- Expansion into new geographic markets
- Development of new specialty process technologies
- Increased outsourcing of semiconductor manufacturing
Threats
- Intense competition from other foundries
- Geopolitical risks
- Economic downturns
- Technological disruptions
Competitors and Market Share
Key Competitors
- TSM
- GDS
- SMCI
Competitive Landscape
UMC's advantages include its cost-effective manufacturing and strong position in mature process technologies. Its disadvantages include its lack of leadership in advanced process technologies compared to TSMC and Samsung.
Growth Trajectory and Initiatives
Historical Growth: UMC's historical growth has been driven by the increasing demand for foundry services and its expansion into new markets. Growth has been tempered by competition and economic cycles.
Future Projections: Analyst estimates vary, but future growth is expected to be driven by demand for semiconductors in automotive, IoT, and industrial applications. Specific numerical projections require access to analyst reports.
Recent Initiatives: Focusing on capacity expansion in mature nodes, strategic partnerships, and developing specialty process technologies.
Summary
UMC is a relatively strong pure-play foundry that's capitalizing on the sustained demand for semiconductors. It excels in mature and specialty processes. While UMC isn't at the forefront of the tech, it's well-positioned to continue its revenue growth. UMC needs to be wary of intense competition and future economic conditions.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Website
- Industry Reports
- Analyst Reports
Disclaimers:
This analysis is based on publicly available information and is not financial advice. Market share data may vary depending on the source.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About United Microelectronics
Exchange NYSE | Headquaters - | ||
IPO Launch date 2000-09-19 | CEO - | ||
Sector Technology | Industry Semiconductors | Full time employees - | Website https://www.umc.com |
Full time employees - | Website https://www.umc.com |
United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, China, Hong Kong, Japan, Korea, the United States, Europe, and internationally. The company manufactures and sells integrated circuits. It offers backend and design support services for mobile and wireless communications, IoT and wearables, computing and data processing, and automotive markets. The company also provides venture capital and marketing support; consulting and advisory; energy technical; solar engineering integrated design; research and development services; and insurance services. United Microelectronics Corporation was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.
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