Leading semiconductor chipmaker United Microelectronics’ (UMC) plans to add capacity at its existing facility over the next three years amid a global chip shortage should help alleviate global supply constraints and position the company uniquely to capitalize on the growing demand for semiconductors. Also, because UMC is the first semiconductor foundry to commit net zero emissions, we think it is well positioned to build a sustainable supply chain and strengthen its position in the industry. Let’s discuss.Headquartered in Hsinchu City, Taiwan, United Microelectronics Corporation (UMC) is a semiconductor wafer foundry operator in the United States, Japan, Europe and internationally. As a global semiconductor chip shortage continues to adversely affect the electronics and automotive industries, among others, UMC has been working with its customers to reduce the capacity shortfall across the supply chain and increase its shipments significantly.
A strong demand for wafers from the consumer electronics industry has led to increased shipments of UMC’s 28nm wafers, which saw 18% sequential revenue growth in the last reported quarter.
The stock gained 271.3% in price over the past year and 11.3% over the past three months. The company’s commitment to achieve net zero carbon emissions by 2050 and build a sustainable supply chain may further strengthen its position in the market. In addition, UMC’s recent investment plans to expand its production capacity at Taiwan's Tainan Science Park should position the company to capture new market opportunities in the coming months.