Playing Second Fiddle to TSMC Gets a Standing Ovation
The chips from Taiwan’s unsung UMC won’t ever be at the leading edge of technology. But investors don’t care.
Electronic chip on a circuit board.
Photographer: Ulrich Baumgarten/Getty
While the tech industry watches Taiwan Semiconductor Manufacturing Co. amid a global chip shortage, one of its neighbors has been a far better bet for investors.
United Microelectronics Corp. is a distant second to TSMC in the market for pure custom-manufacturing of chips in almost every measure: technology, capacity, revenue, margins. But in the metric that counts the most — share returns — the company has taken the crown. Its Taipei-listed shares have jumped more than 300% over the past year, double that of its rival. Both have done even better with their New York-traded depositary receipts.