United Microelectronics UMC
TaiwanTechnology · SemiconductorsUSD
13.40 USD (−42.5%)
3 analysts
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United Microelectronics Corporation (UMC) is a Taiwan-based semiconductor foundry that manufactures wafers for fabless design clients, focusing on mature and specialized nodes.
Key points
from its scores- ✓Good share-price trend9.8
- ✓Very solid balance sheet8.0
- ✓Strong growth7.1
- ✕Unfavourable risk and backdrop2.4
- ✕Little or no dividend3.2
AI analysis
bottom line, main risk, context and newsThe company is well-managed and financially solid, but current growth is at its peak and the geopolitical risk of Taiwan warrants caution.
UMC has excellent financial health with net cash (Net Debt/EBITDA of -0.76) and strong revenue growth of 17%, although the spectacular 374.6% profit growth is a clear sign of a cyclical peak in semiconductors that should not be extrapolated. Valuation is reasonable (P/E 21.99, PEG 1.20) and the 21.33% ROE supports business quality, but the geopolitical risk of Taiwan is a factor to watch.
The main risk is the concentration of production in Taiwan, exposed to an escalation of the conflict with China that could disrupt the global semiconductor supply chain.
Context and risks
UMC is a semiconductor manufacturer headquartered in Taiwan, a jurisdiction with structural geopolitical risk due to tensions with China, which concentrates its production capacity on the island. This risk of supply chain disruption is not reflected in financial metrics and justifies a moderate negative adjustment.
Is United Microelectronics stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 25% below the Technology median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 22.0 | 31.3 | −30% |
| EV / EBITDA | 16.2 | 20.4 | −21% |
| Price / book | 5.1 | 6.3 | −19% |
| Price / sales | 7.4 | 5.3 | +41% |
Sector: median of the 283 Technology companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.9 out of 10 (median for Technology: 5.3).
Average analyst target: 13.40 USD, −42.5% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 8.0 (sector 6.9), Growth 7.1 (sector 7.5).
Classic formulas with standard assumptions (0.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Technology medianValuation
- P/E
- 22.0
- Forward P/E
- 26.5
- EV / EBITDA
- 16.2
- Price / book
- 5.1
- Price / sales
- 7.4
- PEG
- 1.20
- Market cap
- 58.5B USD
- Enterprise value
- 1.78T TWD
Profitability
- ROE
- 21.3%
- ROA
- 5.1%
- ROIC (approx.)
- 12.7%
- Gross margin
- 30.6%
- Operating margin
- 21.7%
- Net margin
- 33.3%
- Free cash flow
- 36.9B TWD
- FCF yield
- 2.0%
- Cash conversion
- 34%
Solvency
- Total debt
- 63.4B TWD
- Net debt
- −83.9B TWD
- Cash
- 147.4B TWD
- EBITDA
- 109.8B TWD
- Net debt / EBITDA
- −0.76
- Debt / equity
- 14.29
- Current ratio
- 2.17
- Quick ratio
- 1.77
Growth
- Revenue growth
- +17.0%
- Earnings growth
- +374.6%
- EPS (TTM)
- 1.06 USD
- EPS (forward)
- 0.88 USD
Dividend
- Dividend yield
- 1.7%
- Payout
- 0.0%
Risk and market
- Beta
- 1.71
- Analyst consensus
- underperform (3)
- Target price
- 13.40 USD
- 52-week range
- 6.97 – 28.96
Recent news
All UMC news →Compare it with its sector
All 283 in Technology →Frequently asked questions about United Microelectronics
Is United Microelectronics stock cheap or expensive?
On P/E and EV / EBITDA, it trades 25% below the Technology median on average. Valuation score: 5.9 out of 10 (median for Technology: 5.3). Average analyst target: 13.40 USD, −42.5% versus the price. This is not investment advice.
What score does United Microelectronics get on MeridIAn Screener?
It scores 6.0 out of 10, rank 1,032 of 2,130 (better than 51% of the companies analysed). Its strongest category is Momentum (9.8) and its weakest, Risk & Context (2.4). Analysis of 08/10/2026.
What is United Microelectronics's P/E ratio?
Its P/E is 22.0: the share price equals 22.0 times earnings per share over the last 12 months. The Technology median is 31.3. Based on the earnings analysts expect, the forward P/E is 26.5.
How much is United Microelectronics worth on the stock market?
Its market capitalisation is 58.5B USD and its enterprise value, debt included, is 1.78T USD.
How much debt does United Microelectronics have?
It has more cash than debt: net cash of 83.9B TWD.
Does United Microelectronics pay a dividend?
Yes: its dividend yield is 1.72%.
How has United Microelectronics stock performed over the last year?
It has risen 230.2% over the last year, excluding dividends. Over the last 52 weeks it has traded between 6.97 and 28.96 USD. Past performance does not guarantee future results.
What do analysts think of United Microelectronics?
3 analysts cover it; their average recommendation is “underperform” and their average target is 13.40 USD (−42.5% versus the price). It is an estimate, not market data.