If we compare UMC and GF, UMC is a $10B/year revenue company making 45% gross margins in 2022, whereas GF is a $8B/year revenue company with 29% gross margins (with the sale of E.Fishkill fab10). However, the real issue is if you look at the market cap of GF it is $32B but if you look at UMC it is $18.7B. Basically, relative to UMC, GF stock is ~2X high and should be down in the $30/share range. Either GF is way over-priced or UMC is way underpriced. Either way if you are investing UMC is a much smarter investment!! This could be the reason why so many are shorting GF stock as shown in another post here. Personally, I sold all my GFS stock including ESPP shares and personal purchases and converted them over to UMC, let's see if that was a smart play or not.
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Article pretty much backs this thread up ..... https://finance.yahoo.com/news/umc-gfs-better-value-stock-154003518.html
@aum -
let's imagine that Mubadala dumps their shares, all 80%! What will it do to GloFo stock price😱 !!I rest my case.
@aum "TC has no more IBM Fabs", TC can still sell the fab in vermont. It's a dump and needs to be off loaded.
UMC is way better in every aspect so not sure if this is apple to apple comparison. GF is third tier foundry and may not survive very long in high cost environment unless bought over.
Stock will be moving in tight band as stock manipulators will always find this as stock to play with kick and sell technique to make money.
UMC don't operate in expensive locations such as Dresden and Malta...
to @OP:
TC has no more IBM Fabs or Design teams to sell.
As far UMC stock valuation- just imaging UMC announced to buyback 80% of outstanding shares and then do "apples -to-apples" comparison 😱