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United Microelectronics Corp 2303

Morningstar Rating
TWD 51.30 +1.10 (2.19%)
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Company Report

UMC Benefits From Partnership With Intel via New Presence in the U.S.

United Microelectronics, or UMC, is the world’s third-largest dedicated contract chip manufacturer, or foundry. It makes integrated circuits for customers based on their proprietary IC designs. The company has long benefited from U.S. and increasingly Asian semiconductor companies moving to fabless (no factory) business models, bolstering demand for UMC's services. UMC, like all foundries, assumes the costs and capital expenditures of running factories amid a highly cyclical market for its customers. Such cyclicality stems from the fact that foundries tend to add excessive capacity during times of burgeoning demand that can result in underutilization during downturns that hamper profitability.

Price vs Fair Value

2303 is trading at a 372% premium.
Price
TWD 51.30
Fair Value
TWD 34.00
Uncertainty
High
1-Star Price
TWD 261.10
5-Star Price
TWD 39.00
Economic Moat
Jjwps
Capital Allocation
Pclpnymw

Bulls Say, Bears Say

Bulls

The advent of 5G and Internet of Things has created new avenues of growth for nonleading foundries like UMC, where cost, power and reliability are favored over performance.

Bears

UMC’s pause in new process technologies weakens its position against Chinese foundries like SMIC.

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News

Trading Information

Previous Close Price
TWD 50.70
Day Range
TWD 50.5051.30
52-Week Range
TWD 42.4058.00
Bid/Ask
TWD 51.20 / TWD 51.30
Market Cap
TWD 642.72 Bil
Volume/Avg
53.9 Mil / 71.8 Mil

Key Statistics

Price/Earnings (Normalized)
11.40
Price/Sales
2.85
Dividend Yield (Trailing)
5.85%
Dividend Yield (Forward)
5.85%
Total Yield
5.85%

Company Profile

Founded in 1980, United Microelectronics is the world's third-largest dedicated chip foundry, with 7% market share in 2023 after TSMC and GlobalFoundries. UMC’s headquarters are in Hsinchu, Taiwan, and it operates 12 fabs in Taiwan, Mainland China, Japan and Singapore, with additional sales offices in Europe, the U.S. and South Korea. UMC features a diverse customer base including Texas Instruments, MediaTek, Qualcomm, Broadcom, Xilinx and Realtek, supplying a wide range of products applied in communications, display, memory, automotive and more. UMC employs about 20,000 people.
Sector
Technology
Industry
Semiconductors
Stock Style Box
Large Value
Total Number of Employees
19,833

Competitors

Valuation

Metric
2303
TSM
INTC
Price/Earnings (Normalized)
11.4030.9525.16
Price/Book Value
1.717.311.27
Price/Sales
2.8511.592.43
Price/Cash Flow
6.9619.267.78
Price/Earnings
2303
TSM
INTC

Financial Strength

Metric
2303
TSM
INTC
Quick Ratio
1.892.100.91
Current Ratio
2.322.391.57
Interest Coverage
38.0680.730.87
Quick Ratio
2303
TSM
INTC

Profitability

Metric
2303
TSM
INTC
Return on Assets (Normalized)
10.33%16.16%2.83%
Return on Equity (Normalized)
16.37%26.16%5.22%
Return on Invested Capital (Normalized)
13.26%19.14%3.23%
Return on Assets
2303
TSM
INTC
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Semiconductors Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NVIDIA Corp
NVDA
GzkmzmlhmlMvht$2.8 Tril
Taiwan Semiconductor Manufacturing Co Ltd ADR
TSM
LqmsqwrsfHsh$774.4 Bil
Broadcom Inc
AVGO
BjbglscdhfCtb$704.5 Bil
Advanced Micro Devices Inc
AMD
XwjhvmmqxhBfcpkrt$233.8 Bil
Qualcomm Inc
QCOM
HympmtmhRrnkhhp$202.1 Bil
Texas Instruments Inc
TXN
TcltkmdwZrq$181.0 Bil
ARM Holdings PLC ADR
ARM
RvzgndhnMsjb$165.2 Bil
Intel Corp
INTC
TqqzwhvxPnnr$134.9 Bil
Micron Technology Inc
MU
HckqcnbmbPpz$122.3 Bil
Analog Devices Inc
ADI
CzrxhlcpFcgl$111.5 Bil

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