olivLaw · US equity research
United Microelectronics Corporation UMC
Semiconductors & Related Devices · SIC 3674 · Vertical: Semiconductors & Related Devices (SIC 3674)
United Microelectronics Corporation is one of the world's largest independent semiconductor foundries, manufacturing chips to the designs of its customers without its own design lines. It matters now because demand for advanced 28nm and below nodes is rising, and partnerships with Intel and a US 8-inch wafer producer extend its footprint in the US.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 05 Nov 2026, United Microelectronics Corporation (UMC) stock was 13.38 USD (−16.69% on the day), with market capitalisation 168.4 bn USD, P/E 111.5 on diluted EPS of 0.12 USD over the last 12 months, dividend yield 0.43%, beta 1.24, 52-week range 7.02–28.01 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 18.1
- oversold (≤ 30)
- Bollinger (20, 2)
- 14.32 – 23.82
- below the lower band · %B -0.10 · band width 49.8%
- SMA 50 / 200
- 21.35 / 17.16
- mixed trend
- MACD (12, 26, 9)
- -1.84 / -1.33
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −42.3% | −5.9% | −36.4 pp | — |
| 3 months | −30.3% | −4.6% | −25.7 pp | — |
| 6 months | −11.7% | +0.2% | −12.0 pp | — |
| Year to date | +70.2% | +7.4% | +62.8 pp | — |
| 1 year | +72.4% | +8.2% | +64.2 pp | +21.0% |
| 3 years | +76.1% | +68.4% | +7.6 pp | +55.4% |
| 5 years | +24.0% | +56.5% | −32.5 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 75 percentile of its own 8-quarter history (min 28.4, median 78.8, max 134.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 5.0 bn | 4.9 bn | 5.0 bn | 6.3 bn | 7.7 bn | 9.1 bn | 7.3 bn | 7.1 bn |
| Revenue YoY | unavailable | −1.9% | +0.3% | +27.1% | +21.9% | +18.1% | −19.9% | −2.5% |
| Net income | 326.5 m | 250.8 m | 272.7 m | 814.1 m | 1.8 bn | 2.9 bn | 1.9 bn | 1.5 bn |
| Net income YoY | unavailable | −23.2% | +8.7% | +198.6% | +126.9% | +57.6% | −33.1% | −23.7% |
| Diluted EPS | 0.03 | 0.02 | 0.02 | 0.07 | 0.15 | 0.23 | 0.16 | 0.12 |
| Diluted EPS YoY | unavailable | −33.3% | 0.0% | +250.0% | +114.3% | +53.3% | −30.4% | −25.0% |
| net % | 6.5% | 5.1% | 5.5% | 12.9% | 24.1% | 32.1% | 26.8% | 21.0% |
| Free cash flow | 277.9 m | 1.0 bn | 1.3 bn | 1.4 bn | 1.5 bn | 2.1 bn | -178.8 m | 162.5 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2024 · 31 Dec 2024
- Cash
- 3.2 bn USD
- Financial debt
- 259.7 m USD
- Net debt
- -2.9 bn USD
- Equity
- 11.2 bn USD
- Total assets
- 17.1 bn USD
- Debt / equity
- 0.02x
- Current ratio
- 2.45x
- ROE
- 13.3%
- ROA
- 8.5%
- FCF margin
- 2.3%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 5.0 bn | 6.3 bn | 7.7 bn | 9.1 bn | 7.3 bn | 7.1 bn | SEC (XBRL)· 24 Apr 2025verified |
| Cost of revenue | 4.2 bn | 4.9 bn | 5.1 bn | 5.0 bn | 4.7 bn | 4.8 bn | SEC (XBRL)· 24 Apr 2025verified |
| Gross profit | 712.6 m | 1.4 bn | 2.6 bn | 4.1 bn | 2.5 bn | 2.3 bn | SEC (XBRL)· 24 Apr 2025verified |
| Research & development | 396.5 m | 459.2 m | 466.3 m | 421.5 m | 433.8 m | 476.2 m | SEC (XBRL)· 24 Apr 2025verified |
| Operating income | 163.3 m | 781.0 m | 1.9 bn | 3.4 bn | 1.9 bn | 1.6 bn | SEC (XBRL)· 24 Apr 2025verified |
| Interest expense | 100.2 m | 73.8 m | 70.8 m | 60.7 m | 51.3 m | 53.6 m | SEC (XBRL)· 24 Apr 2025verified |
| Pre-tax income | 160.7 m | 802.8 m | 2.1 bn | 3.6 bn | 2.2 bn | 1.7 bn | SEC (XBRL)· 24 Apr 2025verified |
| Income tax | 7.7 m | 60.2 m | 285.4 m | 628.9 m | 271.4 m | 255.3 m | SEC (XBRL)· 24 Apr 2025verified |
| Net income | 272.7 m | 814.1 m | 1.8 bn | 2.9 bn | 1.9 bn | 1.5 bn | SEC (XBRL)· 24 Apr 2025verified |
| Diluted EPS | 0.02 | 0.07 | 0.15 | 0.23 | 0.16 | 0.12 | SEC (XBRL)· 24 Apr 2025verified |
| Weighted average diluted shares | 13.0 bn | 12.3 bn | 12.2 bn | 12.5 bn | 12.4 bn | 12.4 bn | SEC (XBRL)· 24 Apr 2025verified |
| Dividend per share | 0.02 | 0.03 | 0.06 | — | — | — | SEC (XBRL)· 28 Apr 2022derived |
Balance sheet · USD
| Line | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 3.4 bn | 3.4 bn | 4.3 bn | 5.7 bn | 4.0 bn | 3.2 bn | SEC (XBRL)· 24 Apr 2025verified |
| Inventories | 726.0 m | 803.2 m | 829.5 m | 1.0 bn | 1.2 bn | 1.1 bn | SEC (XBRL)· 24 Apr 2025verified |
| Current assets | 5.1 bn | 5.9 bn | 8.4 bn | 8.2 bn | 7.1 bn | 5.8 bn | SEC (XBRL)· 24 Apr 2025verified |
| Property, plant & equipment, net | 5.0 bn | 4.7 bn | 4.7 bn | 5.6 bn | 7.8 bn | 8.5 bn | SEC (XBRL)· 24 Apr 2025verified |
| Total assets | 12.2 bn | 13.1 bn | 16.3 bn | 17.1 bn | 17.9 bn | 17.1 bn | SEC (XBRL)· 24 Apr 2025verified |
| Short-term debt | 401.7 m | 393.8 m | 69.4 m | 0 | 441.9 m | 259.7 m | SEC (XBRL)· 24 Apr 2025verified |
| Current liabilities | 2.4 bn | 2.8 bn | 3.9 bn | 3.7 bn | 3.3 bn | 2.4 bn | SEC (XBRL)· 24 Apr 2025verified |
| Total liabilities | 5.5 bn | 5.1 bn | 6.7 bn | 6.6 bn | 6.6 bn | 5.9 bn | SEC (XBRL)· 24 Apr 2025verified |
| Equity | 6.8 bn | 7.9 bn | 9.5 bn | 10.5 bn | 11.2 bn | 11.2 bn | SEC (XBRL)· 24 Apr 2025verified |
| Shares outstanding at year end | 11.7 bn | 12.4 bn | 12.5 bn | 12.5 bn | 12.5 bn | 12.6 bn | SEC (XBRL)· 24 Apr 2025verified |
Cash flow · USD
| Line | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 1.8 bn | 2.3 bn | 3.3 bn | 4.7 bn | 2.8 bn | 2.9 bn | SEC (XBRL)· 24 Apr 2025verified |
| Capex | 552.3 m | 938.2 m | 1.7 bn | 2.6 bn | 3.0 bn | 2.7 bn | SEC (XBRL)· 24 Apr 2025verified |
| Free cash flow | 1.3 bn ≈ | 1.4 bn ≈ | 1.5 bn ≈ | 2.1 bn ≈ | -178.8 m ≈ | 162.5 m ≈ | SEC (XBRL)· 24 Apr 2025derived |
| Investing cash flow | -1.1 bn | -1.4 bn | -2.2 bn | -1.8 bn | -3.2 bn | -2.6 bn | SEC (XBRL)· 24 Apr 2025verified |
| Financing cash flow | -329.9 m | -911.7 m | 450.3 m | -1.9 bn | -949.9 m | -1.2 bn | SEC (XBRL)· 24 Apr 2025verified |
| Dividends paid | 231.1 m | 347.8 m | 716.3 m | — | — | — | SEC (XBRL)· 28 Apr 2022verified |
| Share repurchases | 99.4 m | 59.8 m | 0 | 0 | — | — | SEC (XBRL)· 27 Apr 2023verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 17 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 168.4 bn USD
Key indicators
Coverage and freshness
The data is older than the freshness threshold.
Score by group
- Quality24
- Growth4
- Balance sheet97
- Valuation5
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 0.42 – 7.27 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)0.42 – 0.51 (Mid 0.46)WACC 9.3% · starting FCFF 208.2 m USD · terminal value share of EV 72%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/Sales2.43 – 7.27 (Mid 3.08)25 companies used · median multiple 5.0x · quartiles 3.9x – 12.5xAAOI, ADI, ALGM, AMAT, AMD, AVGO, FSLR, ICHR, INTC, MCHP, MRVL, MTSI, MU, NVDA, NXPI, ON, OSIS, PENG, Q, QUIK, SUNE, TOYO, TXN, TYGO, VIAV
- Peers: EV/EBITDAunavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 17/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 32.6% | 0 (on a fixed band) | 12% |
| EBIT margin · Quality | 22.2% | 68 (vs peers) | 10% |
| FCF margin · Quality | 2.3% | 9 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | -2.6% | 0 (on a fixed band) | 19% |
| Revenue growth (YoY) · Growth | -2.5% | 13 (vs peers) | 10% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 2.5x | 97 (on a fixed band) | 7% |
| EV/Sales · Valuation | 23.4x | 7 (vs peers) | 19% |
| FCF yield · Valuation | 0.1% | 2 (on a fixed band) | 14% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial97/100 · 1/2 factors with a value
- Growth4/100 · 2/2 factors with a value
- Quality24/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/1 factors with a value
- Valuation5/100 · 2/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
United Microelectronics Corporation (UMC). Latest full fiscal year: 2024; data up to 2024-12-31.
Figures computed from the financial statements: revenue 7.1 bn USD in 2024; YoY growth -2.5%; net margin 21.0%; ROE 13.3%.
The estimated value range is 1.42–3.89 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 1.77 USD, the price of 13.38 USD leaves a potential of -86.8% (value / price − 1) and a margin of safety of -658.0% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 17/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance, returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Current ratio: 2.5x
What contradicts it
- Gross margin: 32.6%
- FCF margin: 2.3%
- Revenue CAGR 3Y: -2.6%
- Revenue growth (YoY): -2.5%
- EV/Sales: 23.4x
- FCF yield: 0.1%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, Shareholder yield (distributions).
Versus the vertical median
Semiconductors & Related Devices (SIC 3674) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| TSMTaiwan Semiconductor Manufacturing Company Limited | 9,156.8 bn | 259.6 | 29.3% | 40.0% | +25.0% | +21% / +263% |
| NVDANvidia Corp | 4,376.6 bn | 23.0 | 117.2% | 63.7% | +65.5% | +3% / +288% |
| AVGOBroadcom Inc. | 1,391.7 bn | 37.2 | 44.2% | 42.9% | +23.9% | −28% / +215% |
| MUMicron Technology, Inc. | 742.7 bn | 8.8 | 88.3% | 63.8% | +256.3% | +178% / +762% |
| AMDAdvanced Micro Devices, Inc | 663.3 bn | 88.0 | 11.8% | 16.8% | +34.3% | +86% / +234% |
| INTCIntel Corporation | 277.7 bn | — | -10.9% | -20.1% | −0.5% | +29% / +17% |
| TXNTexas Instruments Inc | 254.2 bn | 36.0 | 39.7% | 34.3% | +13.0% | +65% / +82% |
| AMATApplied Materials Inc | 253.4 bn | 27.5 | 41.1% | 30.1% | +4.4% | +27% / +113% |
| ADIAnalog Devices Inc | 174.9 bn | 42.8 | 12.2% | 29.8% | +16.9% | +36% / +97% |
| UMCUnited Microelectronics Corporation | 168.4 bn | 111.5 | 13.3% | 21.0% | −2.5% | +72% / +76% |
| MRVLMarvell Technology, Inc | 117.1 bn | 44.1 | 16.5% | 27.9% | +42.1% | +49% / +140% |
| NXPINXP Semiconductors N.V. | 61.6 bn | 19.2 | 29.2% | 23.4% | −2.7% | +25% / +20% |
| MPWRMonolithic Power Systems, Inc. | 55.2 bn | 62.4 | 25.1% | 23.9% | +26.4% | +22% / +106% |
| MCHPMicrochip Technology Inc | 35.3 bn | 47.2 | 12.6% | 15.0% | +7.1% | +21% / −22% |
| ALABAstera Labs, Inc. | 31.4 bn | 71.6 | 28.2% | 29.6% | +115.1% | +14% / unavailable |
| IMOSChipMOS TECHNOLOGIES INC. | 29.7 bn | 676.0 | 5.6% | 6.3% | −0.8% | +55% / +64% |
| ONOn Semiconductor Corp | 24.5 bn | 36.6 | 8.9% | 10.8% | −15.3% | +25% / −12% |
| QQnity Electronics, Inc. | 23.0 bn | 38.9 | 7.6% | 11.5% | +9.7% | +36% / unavailable |
| CRDOCredo Technology Group Holding Ltd | 21.1 bn | 40.0 | 30.7% | 33.8% | +205.7% | −37% / +527% |
| FSLRFirst Solar, Inc. | 21.0 bn | 11.3 | 18.7% | 37.1% | +24.1% | −28% / +24% |
| MTSIMACOM Technology Solutions Holdings, Inc. | 14.5 bn | 60.9 | 17.2% | 20.7% | +32.6% | +9% / +127% |
| SITMSiTime Corporation | 10.7 bn | 373.7 | 1.2% | 3.9% | +61.2% | +19% / +221% |
| SLABSilicon Laboratories Inc. | 7.4 bn | — | -3.6% | -4.6% | unavailable | +73% / +110% |
| VIAVViavi Solutions Inc. | 6.5 bn | 106.7 | 6.5% | 4.0% | +40.0% | +47% / +225% |
| ALGMAllegro Microsystems, Inc. | 5.0 bn | 179.3 | 3.2% | 3.1% | +22.8% | +0% / −2% |
1- and 3-year price returns: for UMC from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 7.23 Total return -46% · Per year -46% | 12.83 Total return -4% · Per year -4% | 19.39 Total return 45% · Per year 45% |
| 3 years | 6.04 Total return -55% · Per year -23% | 12.16 Total return -9% · Per year -3% | 20.31 Total return 52% · Per year 15% |
| 5 years | 5.05 Total return -62% · Per year -18% | 11.52 Total return -14% · Per year -3% | 21.27 Total return 59% · Per year 10% |
- Exit P/E± 3.04
- Net margin± 2.13
- Annual revenue growth± 1.87
- Annual dilution± 0.18
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Apr 2026; since then the company filed 6-K (05 Nov 2026), 6-K (03 Nov 2026), 6-K (28 Oct 2026), 6-K (23 Oct 2026), 6-K (13 Oct 2026).
In brief
United Microelectronics Corporation is one of the world's largest independent semiconductor foundries, manufacturing chips to the designs of its customers without its own design lines. It matters now because demand for advanced 28nm and below nodes is rising, and partnerships with Intel and a US 8-inch wafer producer extend its footprint in the US 1.
SWOT
Strengths
- The company has a diversified customer base, volume manufacturing technology and a network of fabs in several locations, allowing it to deliver large volumes for communication, consumer and computer applications 1.
- Its partnership model and IP and design support can shorten time to volume production and raise first-pass silicon success for SoC designs 1.
- Access to partner technologies and process licenses, including for silicon photonics, supports a competitive position in advanced technologies 1.
Weaknesses
- Manufacturing costs are largely fixed, so profitability depends strongly on capacity utilization, which remained below prior peak levels 1.
- Top customers account for a significant share of revenue, exposing the company to the purchasing decisions and cycles of a few large firms 1.
- Average selling prices continued to decline, pressuring margins when new technologies do not offset price erosion 1.
Opportunities
- A rising share of advanced nodes and expanded US production could attract customers seeking more geographically diversified sources 1.
- The new Singapore fab, expected to start production in the second half of 2026, could support capacity growth for 28nm and 22nm nodes 1.
- Development of silicon photonics and advanced packaging could open new markets tied to next-generation connectivity 1.
Risks
- Industry cyclicalityhigh
Industry demand can fall sharply, and inventory corrections at customers can reduce orders, with a direct effect on revenue and profit 1.
- Overcapacityhigh
Planned capacity increases by competitors could lead to lower prices and operation below full capacity 1.
- Customer concentrationmedium
A significant share of revenue comes from a small group of customers, and losing a key customer or postponed orders could affect results 1.
- Geopolitical and trade riskshigh
Operations in China, Taiwan and the Asia Pacific region are exposed to trade tensions, tariffs and armed conflicts that could disrupt production and sales 1.
- Dependence on technology partnersmedium
If joint development or licensing agreements with partners become less favorable, the company could lose access to leading-edge technologies 1.
Investment thesis
What would need to be true (bull case)
- If demand for advanced nodes keeps growing, the revenue share from these technologies could support margins over the medium term 1.
- US expansion through partnerships may allow the company to win customers that want more geographically diversified sources 1.
- If utilization returns to higher levels, fixed costs could be spread over larger volumes, improving profitability 1.
What would break the thesis
- If overcapacity in the industry materializes, prices could keep falling and pressure margins 1.
- Customer concentration and dependence on a few large companies could amplify the effect of a drop in orders from key customers 1.
- Geopolitical and trade tensions could disrupt operations and demand, especially for fabs in the Asia Pacific region 1.
What to watch
- Capacity utilization level and the trend in average selling pricesQ1 2027
- Progress of the 12nm collaboration with Intel and US production2027
- Start of production at the first phase of the Singapore fab2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Apr 2026; since then the company filed 6-K (05 Nov 2026), 6-K (03 Nov 2026), 6-K (28 Oct 2026), 6-K (23 Oct 2026), 6-K (13 Oct 2026).
The business
UMC's primary business is the fabrication of semiconductors, sometimes called chips or integrated circuits, for other companies, based on their designs, using its own proprietary processes 1. Its customers include integrated device manufacturers such as Texas Instruments and Intel, and fabless design companies such as MediaTek, Realtek and Novatek. In 2025, its top ten customers accounted for 57.0% of operating revenues 1. The company operates fabs in several locations, including USCXM in Xiamen, China, which began mass production in 2016 1.
The business model is partnership-driven rather than a traditional buy-and-sell foundry relationship. UMC collaborates with customers across the value chain, including equipment, electronic design automation and IP vendors, to deliver SoC solutions and shorten time to volume production 1.
In recent years the company has expanded its geographic diversification through an agreement with Intel for a 12nm process with US production expected to begin in 2027, a memorandum with Polar Semiconductor for US-based 8-inch wafers, and a licensing agreement with imec for silicon photonics 1.
Segments
Consumer electronics
Consumer electronics rose from 24.0% of wafer sales in 2023 to 30.6% in 2025, becoming the largest segment on this measure 1.
Computer and others
The computer segment represented 11.6% in 2025, and the others category 16.4%, both exposed to cycles in the PC industry and other end markets 1.
Market context
The company describes the semiconductor industry as highly cyclical, with periods of overcapacity and inventory corrections at customers. The average capacity utilization rate was 75.2% in 2025, up from 68.7% in 2024, indicating a partial but not full recovery to peak levels of prior up-cycles 1.
Average selling prices decreased by 5.4% between 2024 and 2025, and fixed or semi-fixed costs make up most manufacturing costs, so utilization strongly influences margins 1.
Trends
- Migration to advanced nodestailwind
The share of 28nm and below nodes rose from 30.7% in 2023 to 36.8% in 2025, and continued demand for these technologies could support pricing and margins if the trend persists 1.
- US footprint expansiontailwind
The Intel 12nm collaboration and the Polar Semiconductor memorandum aim at more geographically diversified production, which could reduce supply chain risks for customers preferring US sources 1.
- Cyclicality and overcapacityheadwind
Some of the largest competitors have announced plans to increase capacity significantly, which could lead to overcapacity and price pressure if demand does not grow sufficiently 1.
- Trade and geopolitical tensionsmixed
Tariffs, regional trade tensions and armed conflicts can affect demand and supply chains, and operations in China and Taiwan are exposed to these factors 1.
Competitive position
UMC competes as an independent semiconductor foundry with other major manufacturing service providers, and the source notes that its largest competitors have announced capacity increases 1. The company states that its pricing is comparable to that of other leading foundries at each geometry 1.
Declared competitive advantages include volume manufacturing technology, cycle time flexibility and IP and design support, but these depend on maintaining customer relationships and access to partner technologies 1.
- Taiwan Semiconductor Manufacturing CompanyTSM
Major rival in contract chip manufacturing, referred to in the source only as one of the largest competitors that announced capacity increases.
- IntelINTC
Partner in the 12nm collaboration, and also an integrated device manufacturer that may compete in some segments; the relationship is collaborative.
- GlobalfoundriesGFS
Independent semiconductor foundry and a natural competitor in mature nodes, though the source does not name it explicitly.
- Samsung Foundry
Foundry division of a major South Korean chipmaker and a potential competitor in advanced nodes, though the source does not name it explicitly.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- United Microelectronics Sales Jump 30% in August. UMC Stock Has More Room to Run.Yahoo Finance — News · 09 Sept 2026 · EN
- If You Have Some ‘Silly’ Money, United Microelectronics (UMC) Stock Is Worth a LookYahoo Finance — News · 02 Sept 2026 · EN
The latest news item in our archive is from 09 Sept 2026; the newest SEC filing is from 05 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report (foreign issuer)05 Nov 2026
- Current report (foreign issuer)03 Nov 2026
- Current report (foreign issuer)28 Oct 2026
- Current report (foreign issuer)28 Oct 2026
- Current report (foreign issuer)23 Oct 2026
- Current report (foreign issuer)13 Oct 2026
- Current report (foreign issuer)06 Oct 2026
- Current report (foreign issuer)05 Oct 2026
- Current report (foreign issuer)29 Sept 2026
- Current report (foreign issuer)04 Sept 2026
Sources
- [1] Form 20-F, fiscal year ended 2025-12-31 · SEC / United Microelectronics Corporation · 30 Apr 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.