Managing Director, Zero One, Zero One

Vincent Fernando, CFA

20 years of experience researching capital markets in Asia and the USA.

Managing Director, Zero One

Taiwan Dual-Listings Monitor: TSMC Premium High & Short Interest Down; ASE Premium Precarious

Taiwan Dual Listings Monitor: ADR Premiums Easing Down With Markets

Taiwan Dual Listings Monitor: TSMC, ASE Technology, and ChipMOS Opportunities

TSMC: 2023 Guidance Reduction Excuse To Take Profit? Guidance Also Affirmed Long-Term Bullishness

Taiwan Tech Weekly: TSMC Packaging Tech Ahead of Samsung; China Rare Earths Restrictions Plays; DRAM

Taiwan Tech Weekly: TSMC Results Today; ASML Beats & Raises; AMD in Taiwan Sparking Rallies

A Bull Investment Case for TSMC (Summary Version)

Equity Bottom-Up

United Microelectronics Corp / Equity Bottom-Up

<ul>
<li>UMC reported 2Q23E results with revenue falling 20% YoY and EPS down 30% YoY. Results were higher than consensus but forward guidance was worrisome in our view.</li>
<li>We are concerned by UMC’s high exposure to more mature technology nodes, limited exposure to AI, and vulnerability to China competition forced to focus on non-leading edge technology nodes.</li>
<li>We rate the stock Underperform with a target price of $36 which implies a 2023E PER of 10x.</li>
</ul>


UMC reported 2Q23E results with revenue falling 20% YoY and EPS down 30% YoY. Results were higher than consensus but forward guidance was worrisome in our view.
We are concerned by UMC’s high exposure to more mature technology nodes, limited exposure to AI, and vulnerability to China competition forced to focus on non-leading edge technology nodes.
We rate the stock Underperform with a target price of $36 which implies a 2023E PER of 10x.


United Microelectronics: Underperform; Exposed to China Competition Avoiding Tech Restrictions