The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 80 | 31.6x | 20.8x | Top tier | |
Growth | 56 | 2.2% | 6.1% | Around median | |
Quality | 59 | 11.4% | 6.6% | Around median | |
Safety | 89 | — | 0.7x | Top tier | |
Capital Return | 79 | — | 2.02% | Top tier | |
Momentum | 92 | 208.6% | 4.1% | Top tier | |
Sentiment | 38 | 3 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
United Microelectronics Corporation (UMC) is one of the world's leading semiconductor foundries, operating as a dedicated foundry to manufacture integrated circuits for fabless design companies and integrated device manufacturers (IDMs). The company generates its revenue primarily from manufacturing silicon wafers based on advanced and specialty technologies, including 22nm and 28nm nodes up to mature technologies, serving multiple markets such as communications, automotive, consumer products, AI, and edge computing applications.
In the fourth quarter of 2025, UMC recorded consolidated revenue of NT$61.81 billion, an increase of 4.5% quarter-on-quarter, supported by favorable exchange rate movements and growth in the 22nm and 28nm node businesses. The company achieved a gross margin of 30.7% (equivalent to NT$18.95 billion), while net income attributable to shareholders reached NT$10.06 billion with earnings per share of NT$0.81. The capacity utilization rate stabilized at 78%, while sales of 22nm and 28nm nodes represented approximately 36% of total quarterly revenue, with a record jump in 22nm node revenue of 31% quarter-on-quarter to account for over 13% of total fourth-quarter sales.
For the full fiscal year 2025, revenue reached NT$237.5 billion (up 2.3% year-on-year), with a gross margin of 29% and net income of NT$41.7 billion (net margin of 17.6%), while annual earnings per share reached NT$3.34 compared to NT$3.8 in 2024. On an annual basis for 2024 according to EDGAR annual reports in US dollars, the company achieved revenue of $7.1 billion and net income of $1.5 billion, compared to revenue of $7.3 billion and net income of $2.0 billion in 2023, showing a slight decline before the start of a gradual recovery.
Analyst consensus currently rates UMC stock as Neutral, with an average price target of $10.2 per share (which is the same as the high and low price targets of $10.2). The stock trades within a 52-week range of $6.56 to $28.13, indicating price movement volatility compared to the analyst target and the company's historical valuation multiples as the market awaits the first-quarter results of 2026.
Figures in the text are as of 2026-06-22; the live price is shown at the top of the page.
UMC has set its cash-based capital expenditure budget for 2026 at approximately $1.5 billion, representing a slight decline compared to the $1.6 billion spent in 2025. These investments will be primarily directed to support capacity expansions and specialty technologies across the company's various fabs. The company expects annual depreciation expenses to increase by a low-teens percentage during 2026, reaching their peak during this year or next year.
The collaboration project to develop a 12nm node manufacturing platform between UMC and Intel is progressing smoothly and according to the pre-established schedule. The two companies aim to deliver the Process Design Kit (PDK) and associated IP to customers to enable design during 2026. Product tape-outs are expected to begin in 2027, focusing on digital TV, WiFi connectivity, and high-speed communication interface applications.
UMC's sales showed a strong jump in May 2026, with the company's global revenue growing by 17.8% year-on-year, supported by the gradual recovery of global semiconductor demand. The company's Taiwan operations sales also jumped by 17.78% during the same month due to a rebound in consumer demand. This growth reflects a tangible recovery in chip demand after prolonged periods of inventory correction by customers.
Automated analysis for informational purposes only — not investment advice.
UMC focuses on advanced packaging as an enabler for 2.5D, 3D, memory, and logic stacking technologies, currently collaborating with more than 10 customers and aiming to execute over 20 new tape-outs in 2026. In the field of silicon photonics, the company is developing solutions including PIC, OIO, and OCS in collaboration with INEX to offer a standard 12-inch PDK in 2027. The company expects to start generating tangible revenue contribution from 12-inch pluggable silicon photonics products starting this year.
UMC management expects wafer shipments for the first quarter of 2026 to remain flat quarter-on-quarter, with the average selling price in USD remaining resilient. The company also expects the gross margin to be in the high-20% range, affected by increased depreciation expenses and other inflationary pressures. The capacity utilization rate is expected to be in the mid-70% range, in line with typical industry seasonality.