- Pure-play foundry plays like United Microelectronics Corporation are turning out to be beneficiaries of the chips supply crunch which has adversely impacted automakers.
- However, history shows that after being in the sweet spot, there can be pain points.
- In this case, compared to its much larger Taiwanese peer, UMC appears to be in a better position to profit from chips scarcity, and its debt is trending lower too.
- The company is undervalued and is a buy at current prices.
For further details see:
United Microelectronics Should Profit Better Than Taiwan Semiconductor From Supply Crunch