United Microelectronics Corporation — Cyborg Score 7/10

Strong
Semiconductor Foundry / Wafer Fabrication

Strategic Profile

UMC is viewed as a major beneficiary of an order shift as TSMC focuses more on advanced nodes and AI-related production, potentially creating opportunities for UMC to capture additional mature node business. The firm established a partnership with SST for cutting-edge automotive technology, potentially opening new market opportunities that could increase demand. UBS's price target increase reflects strengthening competitive dynamics in the mature foundry market expected from mid-2025, with forecasts of a 4% blended average selling price increase for UMC in 2026.

Cyborg Score Rationale

Q4 results beat guidance with revenue of TWD 61.81 billion, a 30.7% gross margin and net income attributable to shareholders of TWD 10.06 billion. UMC's revenue is forecast to grow 7% in fiscal year 2026. Q1-2026 guidance signals near-term margin pressure due to expected depreciation increases and limited capacity growth of approximately 1.2% year-over-year.

Top Insights

  • Full-year 2025 revenues reached NT$237.55 billion, reflecting a 2.3% increase year-over-year.
  • UMC offers a 3.27% dividend yield and has maintained dividend payments for 16 consecutive years.
  • UMC expects 2026 to be a growth year, with wafer shipments remaining flat and gross margins projected to be in the high 20% range.
  • The company has a debt-to-equity ratio of 0.15 and a current ratio of 2.34, indicating strong financial stability.

Named Competitors

  • TSMC — Advanced semiconductor foundry focused on cutting-edge nodes and AI chips
  • Intel — U.S.-based semiconductor manufacturer and foundry services
  • Samsung Foundry — Advanced semiconductor foundry and manufacturing

Recent Developments

  • (January 2026) Revenue boost to NT$19.28 billion in December, marking a 1.7% increase compared to the previous year.
  • (January 2026) UBS raised price target on United Microelectronics to NT$100.00 from NT$56.00, maintaining a Buy rating.
  • (January 2026) Established partnership with SST for cutting-edge automotive technology.

Open the full interactive United Microelectronics Corporation report

Strategic research, analyst-debate audio, full Cyborg Score breakdown across 11 dimensions, and saved-company audio playlists.

Open report →