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United Microelectronics (UMC)



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Upturn Advisory Summary
02/14/2025: UMC (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -33.96% | Avg. Invested days 36 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 16.92B USD | Price to earnings Ratio 11.6 | 1Y Target Price 6.98 |
Price to earnings Ratio 11.6 | 1Y Target Price 6.98 | ||
Volume (30-day avg) 12290987 | Beta 1.19 | 52 Weeks Range 5.61 - 8.95 | Updated Date 03/27/2025 |
52 Weeks Range 5.61 - 8.95 | Updated Date 03/27/2025 | ||
Dividends yield (FY) 6.90% | Basic EPS (TTM) 0.57 |
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 20.32% | Operating Margin (TTM) 19.78% |
Management Effectiveness
Return on Assets (TTM) 5.7% | Return on Equity (TTM) 12.77% |
Valuation
Trailing PE 11.6 | Forward PE 7.7 | Enterprise Value 15577581519 | Price to Sales(TTM) 0.07 |
Enterprise Value 15577581519 | Price to Sales(TTM) 0.07 | ||
Enterprise Value to Revenue 2.22 | Enterprise Value to EBITDA 4.85 | Shares Outstanding 2511670016 | Shares Floating 11332282980 |
Shares Outstanding 2511670016 | Shares Floating 11332282980 | ||
Percent Insiders - | Percent Institutions 6.64 |
Analyst Ratings
Rating 3.6 | Target Price 7.11 | Buy - | Strong Buy 2 |
Buy - | Strong Buy 2 | ||
Hold 2 | Sell 1 | 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. Originally a spin-off from the Industrial Technology Research Institute (ITRI), UMC pioneered the foundry business model, focusing solely on manufacturing chips for other companies. Over the years, UMC has expanded its manufacturing capabilities and global presence, becoming a leading player in the semiconductor foundry industry.
Core Business Areas
- Semiconductor Foundry Services: UMC's core business involves manufacturing integrated circuits (ICs) for fabless semiconductor companies based on their designs. This includes production of a wide range of chips using various process technologies.
Leadership and Structure
UMC is led by its CEO, Jason Wang, and operates under a board of directors. The company's organizational structure is based on functional departments, with separate teams focused on manufacturing, technology development, sales and marketing, and finance.
Top Products and Market Share
Key Offerings
- 28nm Process Technology: UMC's 28nm process technology is a key offering, serving a wide range of applications, including mobile devices, consumer electronics, and networking equipment. Competitors include TSMC, Samsung Foundry, and GlobalFoundries. Market share data is not directly attributable to this specific process node in public information. Revenue attributable to node is not available.
- 40nm Process Technology: UMC's 40nm process technology is another significant offering, used in applications such as display driver ICs and power management chips. Competitors include TSMC, Samsung Foundry, and GlobalFoundries. Market share data is not directly attributable to this specific process node in public information. Revenue attributable to node is not available.
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 complexity of electronic devices and the growing adoption of advanced technologies such as AI, 5G, and IoT.
Positioning
UMC is a leading global semiconductor foundry, offering a range of process technologies. Its competitive advantages include its established manufacturing capabilities, experienced workforce, and strong customer relationships.
Total Addressable Market (TAM)
The global semiconductor foundry market is projected to reach hundreds of billions USD in the coming years. UMC is well-positioned to capture a share of this TAM by leveraging its manufacturing expertise and expanding its customer base.
Upturn SWOT Analysis
Strengths
- Established manufacturing capabilities
- Experienced workforce
- Strong customer relationships
- Diversified technology portfolio
- Global presence
Weaknesses
- Smaller scale compared to TSMC
- Reliance on older process technologies
- Lower R&D spending than competitors
Opportunities
- Growing demand for foundry services
- Expansion into new markets
- Development of advanced process technologies
- Strategic partnerships
- Government incentives
Threats
- Intense competition
- Technological disruptions
- Economic downturns
- Geopolitical risks
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- TSM
- GTS
- SMCI
Competitive Landscape
UMC faces intense competition from larger foundries such as TSMC and Samsung Foundry. UMC's competitive advantages include its lower cost structure and its focus on mature process technologies.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: UMC has experienced steady growth over the years, driven by increasing demand for its foundry services. The company has expanded its manufacturing capacity and invested in new technologies to support its growth.
Future Projections: Analyst estimates suggest that UMC will continue to grow in the coming years, benefiting from the increasing demand for semiconductors and the expansion of its customer base.
Recent Initiatives: Recent strategic initiatives include investments in advanced process technologies, expansion of manufacturing capacity, and strategic partnerships with other companies.
Summary
UMC is a stable semiconductor foundry with a strong position in mature process technologies. While it faces competition from larger players, UMC benefits from growing demand and strategic initiatives. Keeping a focus on technology advancements and capacity expansion is crucial to compete effectively and grow market share. They need to closely monitor supply chain challenges and geopolitical instability to sustain financial health.
Similar Companies
- TSM
- GTS
- SMCI
Sources and Disclaimers
Data Sources:
- Company Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
The information provided is for informational purposes only and should not be construed as investment advice. Market share data is approximate and based on available information.
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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