About UNITED MICROELECTRONICS CORP
United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, Singapore, China, Hong Kong, Japan, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services.
It serves fabless design companies and integrated device manufacturers. United Microelectronics Corporation was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.
UMC operates in the Manufacturing | Electronic Equipment | approximately 19,500 employees | led by CEO Shan C. Chien.
$15.3 billion 10.3x P/E 1.5x P/B 4.3x EV/EBITDA 14.1% ROE -2.5% rev. growth 7.5% yield
UNITED MICROELECTRONICS CORP earns a Buy rating from our quantitative model with a composite score of 73/100, ranking #34 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is value at 90/100, which places UMC in the top 10 percent of all stocks on this measure. momentum at 79/100 provides secondary support. No single factor falls below the average threshold, which is a constructive sign.
Within the Manufacturing sector, UMC ranks 17th out of 50 peers, placing it in the 66th percentile. At $15.3 billion, the company is a well-established large cap.
Quality Analysis
UNITED MICROELECTRONICS CORP's quality score of 77/100 reflects solid profitability that ranks above the majority of stocks. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 14.1% exceeds the sector median of -2.0%. Gross margins of 32.6% are competitive for the sector. Operating margins of 22.2% sit above the 3.0% sector average.
Net margins of 20.9% demonstrate that the company efficiently converts revenue into bottom-line profit.
Valuation Assessment
A value score of 90/100 puts UMC in the top 10 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 10.3x, an EV/EBITDA of 4.3x, a price-to-book of 1.5x, a price-to-sales of 2.2x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
A momentum score of 79/100 shows UMC is trending above average, with its stock price outperforming the majority of the market. This is not explosive, meme-stock-style momentum — it is the gradual, fundamental-driven kind that tends to persist.
Revenue growth of -2.5% is declining, which makes the momentum signal more precarious. A beta of 0.80 means UNITED MICROELECTRONICS CORP moves with less volatility than the market, which can be attractive for risk-conscious investors.
Our entry timing model currently signals Neutral, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support UNITED MICROELECTRONICS CORP's rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
UNITED MICROELECTRONICS CORP earns a Buy rating with a composite score of 73/100 and 4 out of 5 stars, ranking #34 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position UMC above the majority of the market.
Explore the full UMC analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
