United Microelectronics Corporation (UMC) AI Stock Analysis

United Microelectronics Corporation (UMC) operates as a semiconductor wafer foundry across Taiwan, Singapore, China, Hong Kong, Japan, the United States, Europe, and other global regions. Established in 1980 and headquartered in Hsinchu City, Taiwan, UMC provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers across consumer electronics, telecommunications, automotive, and industrial sectors. The company supports clients from initial design collaboration through final production, delivering manufacturing infrastructure and semiconductor fabrication technologies.

Revenue increased at a 5-year CAGR of 6.1% from FY2020 to FY2025. Annual revenue grew 20.5% in FY2021 to $213.01B and 30.8% in FY2022 to $278.71B, before revenue fell 20.2% in FY2023 to $222.53B. Growth resumed in FY2024 with revenue rising 4.4% to $232.30B and 2.3% in FY2025 to $237.55B. Operating margin narrowed from 37.4% in FY2022 to 18.4% in FY2025, while net income fell from $89.48B to $40.36B over the same period. For the latest quarter ended June 30, 2026, quarterly revenue grew 17.0% year-over-year, and quarterly earnings grew 374.6% year-over-year. TTM revenue reached $250.71B with a profit margin of 33.3%.

As of June 30, 2026, UMC reported cash and short-term investments of $147.39B and total debt of $54.29B, resulting in net cash of $93.10B. The company maintained a current ratio of 2.17 and a debt-to-equity ratio of 0.12 against shareholders' equity of $443.92B. Operating cash flow stood at $100.41B in FY2025, funding $48.01B in capital expenditures and generating $52.40B in free cash flow. In FY2025, UMC distributed $35.98B in dividends, while share count increased 2.7% over five years.

At a last close of $19.82, UMC trades at a trailing P/E of 18.7x and a forward P/E of 23.8x, compared to medians of 28.1x and 18.8x, respectively, for its US-listed Technology peers. Its enterprise value of $60.22B corresponds to an EV/EBITDA of 12.4x and an EV/revenue of 7.6x, below the peer group median EV/EBITDA of 16.6x. The stock has a price-to-sales ratio of 0.2x and a PEG of 1.33. Over the past year, UMC gained 171.5%, outperforming the S&P 500 (SPY) return of 16.8%, while its 5-year return of 150.4% also exceeded SPY's 83.0%.

UMC pays an annual dividend with a forward payout of $0.40 per share, representing a dividend yield of 2.02%. The dividend payout ratio is 38.9%, and the company has paid dividends for 17 consecutive years. Over the past five years, dividend growth annualized at 28.8%. Its most recent ex-dividend date occurred on July 8, 2026.

Wall Street coverage includes 1 Strong Buy, 0 Buy, 0 Hold, 3 Sell, and 0 Strong Sell ratings. The mean price target is $19.12, reflecting a 3.5% downside from the last close of $19.82. For FY2026 ending December 31, 2026, analysts estimate EPS of $0.92, representing 72.6% growth, on revenue of $283.76B. For FY2027, EPS is estimated to decline 4.4% to $0.88 despite projected revenue growth of 23.2% to $349.54B across 2 analysts. UMC beat EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for October 28, 2026.

This page is an AI-written research summary of United Microelectronics Corporation (UMC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: UMC income statement, UMC balance sheet, UMC analyst forecast, UMC chart. See the UMC stock overview for the latest quote and news.