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5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
United Microelectronics's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was 11.63%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for United Microelectronics's 5-Year ROIIC % or its related term are showing as below:
UMC's 5-Year ROIIC % is ranked better than 67.69% of 916
companies
in the Semiconductors industry
Industry Median: 2.7
vs UMC: 11.63
United Microelectronics (NYSE:UMC) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
United Microelectronics 5-Year ROIIC % Related Terms
United Microelectronics 5-Year ROIIC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Semiconductors subindustry, United Microelectronics's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
United Microelectronics 5-Year ROIIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, United Microelectronics's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where United Microelectronics's 5-Year ROIIC % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
United Microelectronics (UMC) has a 5-Year ROIIC % of 11.63 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on United Microelectronics and its competitors. According to the industry distribution chart, United Microelectronics ranks #296 out of 916 companies in the Semiconductors industry, placing it in the top 32.3%.
Is United Microelectronics' 5-Year ROIIC % too high?
United Microelectronics' current 5-Year ROIIC % is 11.63. The Semiconductors industry median 5-Year ROIIC % is 2.70. United Microelectronics' value of 11.63 is 330.7% above this industry median. Based on the distribution chart, United Microelectronics ranks #296 out of 916 companies in the Semiconductors industry, which is above the industry midpoint. Overall, United Microelectronics has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does United Microelectronics' 5-Year ROIIC % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, United Microelectronics ranks #296 out of 916 companies for 5-Year ROIIC %. This puts United Microelectronics in the upper half of its industry. The industry median 5-Year ROIIC % is 2.70. United Microelectronics' value of 11.63 is 330.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for a Semiconductors company?
The median 5-Year ROIIC % among Semiconductors companies is 2.70, based on 916 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. United Microelectronics's current 5-Year ROIIC % of 11.63 is 330.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on United Microelectronics and its competitors. For the Semiconductors industry, the median 5-Year ROIIC % is 2.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Microelectronics's current 5-Year ROIIC % is 11.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Microelectronics stock overvalued right now?
Based on GuruFocus' analysis, United Microelectronics (UMC) is currently considered Significantly Overvalued. The stock's GF Value™ is $8.01, compared to a current price of $20.30 — trading 153.4% above its estimated fair value. The current 5-Year ROIIC % is 11.63 and 330.7% above the Semiconductors industry median of 2.70. United Microelectronics' overall GF Score™ is 81/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For United Microelectronics (UMC), the current 5-Year ROIIC % is 11.63 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is United Microelectronics (UMC) Overvalued in 2026?
Based on GuruFocus' analysis, United Microelectronics stock appears to be overvalued.
The current stock price of $20.30 is trading 153.4% above its estimated GF Value™ of $8.01.
GuruFocus considers United Microelectronics to be Significantly Overvalued.
Key valuation signals for UMC:
5-Year ROIIC %: 11.63
GF Value™: $8.01 vs. price of $20.30 (153.4% above fair value)
Industry Position: 330.7% above the Semiconductors median (#296 of 916)
No single metric tells the full story. See the UMC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1980, United Microelectronics is the world's third-largest dedicated chip foundry, with close to 5% market share in 2025 after TSMC and SMIC. UMC's headquarters are in Hsinchu, Taiwan, and it operates 12 fabs in Taiwan, Mainland China, Japan and Singapore, with additional sales offices in Europe, the US, and South Korea. UMC features a diverse customer base that includes Texas Instruments, MediaTek, Intel, Broadcom, Novatek, and Realtek, supplying a wide range of products applied in communications, display, memory, automotive and more. UMC employs about 19,000 people as of February 2025.
81GF Score
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