10 Cheap Semiconductor Stocks to Buy Now

8. United Microelectronics Corporation (NYSE:UMC)

Number of Hedge Fund Holders: 18

P/E: 11.89

United Microelectronics Corporation (NYSE:UMC), a leading semiconductor foundry based in Hsinchu, Taiwan, provides IC fabrication services across major electronics sectors. Currently, UMC trades in the middle of its 52-week range and below its 200-day moving average, reflecting tempered price momentum.

For Q1 2025, revenue stood at $1.76 billion, flat year-over-year but down 5.79% sequentially, impacted by a one-time price adjustment and a Chinese New Year earthquake. Gross margin came in at 26.7%, with net income at $241.18 million. Despite near-term headwinds, wafer shipments grew 12% YoY, lifting Q1 revenue by 5.9% compared to last year.

United Microelectronics Corporation (NYSE:UMC) boasts a strong 5-year sales return of over 183% and a 5.68% YTD gain. Recognized for its ESG leadership, UMC secured a “Top 1%” ranking in the S&P Global Sustainability Yearbook 2025.

Strategically, United Microelectronics Corporation (NYSE:UMC)’s partnership with Intel on a collaborative Arizona project shows promising progress, bolstering long-term growth prospects.

Analyst sentiment remains mixed for United Microelectronics Corporation (NYSE:UMC) as 33% maintained a Buy rating and 50% maintained Hold, with a median price target of $5.75, suggesting a 16.42% potential downside from the last close ($6.87). Bernstein recently reiterated a Sell rating, targeting $4.80.