United Microelectronics Corp (UMC) is in a rectangle trading range. The stock is expected to either break through its resistance line or fall through its support. Read more to learn how to position yourself to profit from this trading opportunity.United Microelectronics Corp (UMC) is the world's third- largest dedicated chip foundry, with a 7% market share in 2020. The company features a diverse customer base, supplying a wide range of products applied in communications, display, memory, and automotive.
Headquartered in Taiwan, the company operates about a dozen custom fab plants in Asia and holds approximately 14,000 chip IP patents. The firm has been focused on production for the automotive industry as semiconductors for electric and self-driving cars are expected to be a major growth driver for the company.
UMC has a strong balance sheet with $4.4 billion in cash on hand as of the most recent quarter, compared with only $185 million in short-term debt. The company also sports a high current ratio of 2.3. The firm has shown strong earnings growth with EPS growing an average of 45.1% over the past three years.