UMCUnited Microelectronics Corporation
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (2.7×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Margin-driven, fat margins on slower asset turns. ROE 11% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is UMC?
United Microelectronics Corporation earns 17% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 8.0 points above what the capital costs: growth creates value
- Operating margin
- 19%
Operating margin · Semiconductors median 7.5% · fiscal year to FY2025
- Cash conversion
- 2.72×
Cash conversion · 2.13× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.15%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 12% |
| FY2021 | 24% |
| FY2022 | 37% |
| FY2023 | 26% |
| FY2024 | 22% |
| FY2025 | 19% |
Details›
- Gross marginfiscal year to FY2025
- 29%
- Operating marginfiscal year to FY2025
- 19%
- Net marginfiscal year to FY2025
- 17%
- Free cash flow margin
- 22%
- R&D as % of revenue
- 7.5%
- Revenue, trailing twelve months
- $237.6B
- Free cash flow, trailing twelve months
- $52.1B
- Net income, trailing twelve months
- $40.4B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 17%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from UMC and who it buys from, as the companies report it.
- Largest customer12%
Share of revenue · FY2025 20-F
- Top ten customers57%
Combined share of revenue · FY2025 20-F
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; UMC’s own figures are from its FY2025 20-F. Smaller customers and suppliers go unreported.
Semiconductors
The closest names by size in the same industry