United Microelectronics Corporation (UMC) has gotten off to a good start in 2020. The most recent quarterly numbers indicate that demand for foundry services is very strong, which supports the bull case for UMC. However, recent events raise the question of whether growth can be sustained at the current pace. Why will be covered next in greater detail.
UMC has delivered thus far in 2020
A lot was expected heading into 2020. Growth in data centers, cloud computing, and 5G are some of the factors seen underpinning foundry demand. These industry tailwinds should