Stock

United Microelectronics Corporation

UMC
62
Semiconductors · Technology
Price
$19.82
-1.10 (-5.26%)
Market Cap
$49.44B
Exchange
New York Stock Exchange
Winston Score
62
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Oct 18, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Good
15/30
Growth
Good
10/20
Cash Flow
Exceptional
10/10
Stability
Exceptional
10/10
Valuation
Mixed
4/10
Ownership
Good
10/15
Dividends
Good
3/5

62 of 100 counted points = Winston Score 62.

§Winston Score History

The full picture

United Microelectronics Corporation (UMC) is a semiconductor foundry based in Taiwan. That means it manufactures computer chips for other companies that design chips but do not own their own factories. Its customers include chipmakers across industries like communications, consumer electronics, and automotive, and it produces chips used in everyday products like smartphones, TVs, and cars.

UMC makes money by charging customers to fabricate their chip designs in UMC's factories, called fabs. It operates primarily in Taiwan, with additional facilities in Singapore and China, and generates roughly $8–9 billion in annual revenue. UMC focuses on mature chip technologies — older but still widely needed processes — rather than cutting-edge nodes, which keeps capital costs lower but also means it competes heavily on price against other foundries like TSMC and GlobalFoundries. The key risk is that demand for mature-node chips can swing sharply with broader electronics cycles, leaving UMC exposed to periods of oversupply and falling prices.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+17.0% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+377.5% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

NT$17.7B/ year

↑ Rising (+14% vs prior year)

7.5% of revenue

Below sector average (15%)

R&D investment increasing — building for the future

Insider Activity

13.2%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

NT$294.2B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

United Microelectronics Corporation is a rare growth stock that's already generating positive cash flow while growing at 17%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.2% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 2.49B (2021) → 2.50B (2025)

Score breakdown

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Quality

Profit per sale
Gross Margin
32.5%
Modest — 32.5% gross margin
Profit after running costs
Operating Margin
21.6%
Excellent — 21.6% operating margin
Return on the money invested
ROCE
10.0%
Below par — 10.0% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+5.6%
Slow sales growth (+5.6% YoY)
Profit growth
EPS YoY
+111.4%
Earnings growing fast (+111.4% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
131%
Turns 131% of profit into real cash
Spare cash per sale
FCF Margin
23.6%
Converts sales into free cash efficiently (23.6%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
0.11
Conservative — low debt load (0.11)
Covers its interest
Interest Cover
32.52x
Comfortably covers interest (32.5x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
19.9x
Fair value — P/E 19.9

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
-2.1
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend
Dividend Yield
1.53%
Small dividend — 1.53% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+90.2%
Dividend growing fast (90.2% YoY)
Payout Ratio
43%
no trend
Pays out a modest share of profit and keeps the rest to reinvest. Room to keep paying through a weak year.

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