moneyheap
UMC · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is United Microelectronics Corp. (UMC) stock moving?
UMC fell from a $19.45 close on Oct 27 to $13.38 on Nov 5, a drop of about 31%. The slide began after Q3 2026 results on Oct 28, which missed estimates on EPS ($0.21 vs $0.23) and sales ($2.320B vs $2.350B), though record wafer shipments were reported. Volume rose to 24.4M shares on Oct 30 and to 38.1M on Nov 5, roughly 2.6 times the average of the prior two weeks, as the stock hit its low. The October revenue report on Nov 5 showed sales of NT$25.20B, up 18.33% year over year, and year-to-date sales up 16.33%. The stock still closed lower that day, so the revenue data did not stop the sell-off. Since then the stock has recovered to $15.04 on Nov 10, up about 12.4% from the low close, on lower volume. The company also said its exposure to budget smartphones is limited, which addresses one identified risk. Other filings show a board-approved loan of up to NT$1B to Wavetek with no amount drawn by Oct 31, and a new director seat filled by Ming Hsu, UMC's President and COO. Neither appears material. Overall, the recent growth figures support the business, but the earnings miss and the size of the sell-off keep the outlook uncertain.
News behind the analysis
- United Microelectronics Corporation Reports October 2026 Revenue GrowthOctober 2026 consolidated net sales were NT$25.19 billion, up 18.33% year over year. Year-to-date sales reached NT$229.21 billion, up 16.33%.
- UMC October Net Sales Rise 18.33% YoY To NT$25.20B From NT$21.29B; January-October Sales Up 16.33% To NT$229.21BBenzinga reported the same October sales figures, confirming the 18.33% year-over-year gain and the 16.33% year-to-date increase.
- Taiwan's United Microelectronics Sees Trouble Brewing in Budget Smartphones, but Says Its Exposure Is LimitedUMC fell after missing Q3 2026 revenue and earnings estimates, while reporting record wafer shipments. The company said its exposure to budget smartphones is limited.
- United Microelectronics Q3 2026 Earnings Call TranscriptThe transcript of UMC's third-quarter 2026 earnings call, reported on Wednesday, Oct 28, is available for review.
- United Microelectronics Q3 EPS $0.21 Misses $0.23 Estimate, Sales $2.320B Miss $2.350B EstimateThird-quarter EPS of $0.21 missed the $0.23 estimate. Sales of $2.320B missed the $2.350B estimate.
About United Microelectronic Corp.
United Microelectronics (UMC) is a Taiwan-based contract chipmaker, or foundry. It makes chips that other companies design and runs factories in Taiwan, Singapore, China and Japan. Unlike TSMC, it focuses on mature and specialty process technologies such as 28nm and 22nm rather than the most advanced nodes, and it is now expanding into advanced packaging and silicon photonics, a technology that uses light to move data, aimed at AI and networking.
How it makes money
UMC earns nearly all its revenue by making silicon wafers to order for chip-design companies. Its customers make chips for communications (such as smartphone and Wi-Fi chips), consumer electronics, computers, cars and industrial uses. Revenue depends on how many wafers it ships, the price per wafer and how fully its factories are used (utilization). Quarterly revenue reached roughly NT$74 billion (about US$2.3 billion) in Q3 2026. It also pays a yearly dividend.
What usually moves UMC
- Wafer demand and fab utilization in mature-node chips
- Wafer pricing competition, especially from Chinese foundries
- AI-related demand for specialty, packaging and photonics work
- Capital spending and capacity expansion (Singapore, Tainan)
- Taiwan geopolitics and the NT dollar exchange rate