- The bull case for UMC still has merits, especially with earnings per share more than quadrupling in the latest quarterly report.
- People have been scratching their heads as to why UMC has been so conservative when it comes to expanding, even though UMC may be wise in doing so.
- There are lessons to be learned now that UMC has committed to a big expansion, but only on terms that ensure the company is protected when the market turns.
- UMC is basically saying it’s prudent to prepare for the day when there’s more capacity than demand, even if it isn't here yet.
For further details see:
What It Means When United Microelectronics Is Shifting Gears