United Microelectronics' stock price moved up by 4.34%, with the boost in the semiconductor industry’s prosperity being the main reason

Economic Observer Network UMC (UMC.N) experienced a stock price anomaly on February 11, 2026, rising 4.34% in a single day to close at $10.34. The stock price fluctuation was mainly driven by multiple factors, including improved industry sentiment, the company’s resilient fundamentals, strengthened long-term growth expectations, and capital flow and valuation recovery.

Industry Sector Overview

Since February 2026, a new wave of price increases has emerged across the semiconductor supply chain, with companies in storage, packaging and testing, and design sectors issuing price hike notices. Signals of improved supply and demand dynamics have strengthened. On February 11, the U.S. semiconductor sector rose 2.27%, significantly outperforming the broader market (Nasdaq down 0.05%), boosting UMC’s stock sentiment.

Company Fundamentals

Although UMC’s net profit attributable to shareholders in Q4 2025 faced pressure quarter-over-quarter, revenue reached 61.81 billion New Taiwan Dollars (approximately $1.97 billion), exceeding market expectations, with gross margin rising against the trend to 30.7%. Revenue from the 22nm process surged 31% quarter-over-quarter, accounting for over 13%, becoming the core growth engine. Market attention is focused on how high-margin business volume growth supports profitability.

Future Outlook

Institutional reports suggest UMC may benefit from the transfer of mature process orders from TSMC (UBS estimates a 19% revenue increase). Additionally, the Singapore Fab12i P3 plant is expected to ramp up significantly in the second half of 2026, adding 30,000 high-margin wafers per month. Layouts in silicon photonics and advanced packaging technologies are also viewed as medium- to long-term growth drivers.

Capital and Technical Analysis

As of February 11, UMC has gained 31.49% since the start of the year. Recent turnover rate is 0.23%, with a trading volume of approximately $58.18 million, indicating increased activity. The trailing twelve months P/E ratio is 18.63, and some investors may see valuation and earnings growth expectations (such as over 20% revenue growth for the 22nm process in 2026) as aligned.

Recent Company Status

It should be noted that the company’s guidance indicates that capacity utilization in Q1 2026 may fall back to the mid-70% range, with gross margin possibly declining to the high 20% range. If industry demand recovery falls short of expectations or the transfer of orders from TSMC slows, short-term earnings resilience could be affected.

The above information is compiled from publicly available sources and does not constitute investment advice.