Analyst Ratings January 29, 2026

UBS Lifts UMC Price Target to NT$100, Cites Improving Mature-Node Dynamics

Analyst sees pricing resilience and order-shift opportunities as Taiwan foundry benefits from capacity moves and Chinese pricing pressure

By Priya Menon UMC
UBS Lifts UMC Price Target to NT$100, Cites Improving Mature-Node Dynamics
UMC

UBS raised its price objective on United Microelectronics Corp (UMC) to NT$100 from NT$56 and kept a Buy rating, citing signs of stronger competitive dynamics in the mature foundry segment from mid-2025 that are appearing in 2026. UBS forecasts modest ASP gains in 2026-27, and highlights capacity and demand shifts at peers and in China that could favor UMC. The company recently reported mixed fourth-quarter results with an EPS miss but a revenue beat and steady utilization.

Key Points

  • UBS raised its UMC price target to NT$100 from NT$56 and kept a Buy rating, citing stronger mature-node dynamics emerging from mid-2025 and evident in 2026.
  • UBS projects UMC blended ASPs to rise 4% in 2026 and 6% in 2027; InvestingPro forecasts 7% revenue growth for fiscal 2026 and lists UMC’s market cap at $30.55 billion.
  • Recent quarterly results were mixed - EPS of $0.13 missed the $0.14 estimate while revenue of $1.97 billion beat the $1.94 billion consensus; utilization remained at 78%.

UBS raises price target

UBS increased its price target for United Microelectronics Corp (NYSE: UMC) to NT$100.00 from NT$56.00 and reiterated a Buy rating on the Taiwan-based semiconductor foundry. The bank's move reflects its view that competitive dynamics in the mature foundry market will strengthen from mid-2025 and that these dynamics are already evident in 2026.

Stock performance and market capitalization

UMC has delivered substantial share gains over the past year, with InvestingPro data cited showing the stock has climbed 107.77% year-over-year and currently trades near its 52-week high of $12.68. The company carries a market capitalization of $30.55 billion.

UBS forecast for pricing and revenue

UBS expects blended average selling prices (ASPs) at UMC to increase by 4% in 2026 and by 6% in 2027. This outlook aligns with InvestingPro’s revenue projection, which shows UMC’s revenue forecasted to grow 7% in fiscal 2026. UBS highlights that the mature-node pricing environment is improving, a view underscored by the bank’s observation that China-based foundries operating at utilization rates above 90% are raising prices.

Company guidance and analyst commentary

UMC had guided to flat ASP in the first quarter of 2026. UBS analyst Sunny Lin described that flat guidance as “a lot more resilient than a ~5% decline in early 2024 and early 2025,” signaling that the company is experiencing a firmer pricing backdrop than in recent periods.

Industry capacity and strategic shifts cited by UBS

UBS identified a number of structural elements supporting its bullish stance. The firm notes Taiwan Semiconductor Manufacturing Company’s efforts to optimize mature capacities to serve Cloud AI demand. At the same time, UBS points to slower capacity expansion among peers, including the recent sale by Powerchip Semiconductor Manufacturing Corp (PSMC) of a 12-inch fab shell in Tongluo, Taiwan to Micron. UBS believes these dynamics could position UMC to capture additional mature-node orders as TSMC shifts focus toward advanced nodes and AI-related production.

Financial health, dividends and momentum

InvestingPro analysis included in the referenced data rates UMC’s overall financial health as "GREAT" and highlights robust price momentum. The company also yields 3.27% from dividends and has paid dividends for 16 consecutive years, attributes that may be viewed as supportive by income-focused investors.

Recent quarterly results

In its most recent quarter, United Microelectronics Corporation reported mixed outcomes. Earnings per American Depositary Share (ADS) were $0.13, falling short of the analyst consensus of $0.14. Revenue, however, came in at $1.97 billion, narrowly above the expected $1.94 billion, representing a 4.5% increase from the prior quarter and a 2.4% rise year-over-year. Utilization was reported steady at 78% for the quarter.

Market context and investor considerations

UBS’s upgrade of UMC’s price target reflects a combination of anticipated ASP improvement, a moderate revenue growth outlook for fiscal 2026, and potential order flow benefits as competitors and large peers adjust capacity and node focus. The firm also expects China’s capacity growth to moderate in coming years, which, coupled with high utilization among Chinese foundries, is contributing to an improved pricing environment.


Note - The article reports UBS’s published forecasts and the company’s disclosed quarterly results. Where projections and guidance are described, they reflect the views and statements attributed to UBS, InvestingPro data and United Microelectronics Corporation as presented.

Risks

  • ASP and revenue projections may be sensitive to capacity changes and pricing actions across the foundry sector - this affects semiconductor manufacturing and related supply chains.
  • Shifts in capacity allocation by major industry players, including TSMC’s emphasis on advanced nodes and slower expansion at peers, introduce uncertainty in order flows for mature-node foundries.
  • High utilization and price increases at China-based foundries reflect tighter short-term conditions, but any moderation in demand or capacity growth assumptions could alter the pricing environment.

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