United Microelectronics Corp

2303: XTAI (TWN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	TWD 82.00	Hdmx	Gjhwpmjy

UMC Earnings: Profitability Topped Expectations; Automotive and Industrial Softness Soon to End

Phelix Lee

Aug 1, 2024

Our fair value estimate for United Microelectronics stays at TWD 70 per share after lifting 2024 gross margin assumptions in line with guidance. Our outer-year estimates are little changed. UMC’s shares are attractive, as short-term headwinds in automotive are easing. We are impressed with UMC’s ability to manage downcycles, which remains underappreciated.

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