Can UMC's Latest Renewable Energy Deal Push the Stock Higher?

Group 1: Corporate Sustainability Initiatives - United Microelectronics (UMC) has signed a Corporate Power Purchase Agreement with Fengmiao I Offshore Wind Farm to purchase over 30 billion kilowatt-hours of power over the next 30 years, marking the largest renewable energy transaction in the company's history [1] - UMC aims to achieve 50% renewable energy usage by 2030 and net zero emissions with 100% renewable energy by 2050, having already achieved a 26% reduction in scope 1 and scope 2 greenhouse gas emissions from 2020 levels [2] - The company recognized 16 suppliers for their efforts in reducing greenhouse gas emissions, totaling a reduction of 2.64 million tons since the launch of its Supply Chain Greenhouse Gas Inventory Initiative in 2022 [4] Group 2: Partnerships and Collaborations - UMC's collaboration with Intel focuses on developing a 12-nanometer semiconductor process platform, enhancing supply chain resilience and addressing high-growth markets [5] - The partnership with Infineon aims to expand automotive microcontroller production at UMC's Singapore fab, ensuring the company meets the rising demand for automotive semiconductors [6] Group 3: Financial Performance and Market Position - For Q4 2024, UMC's revenue is estimated at $1.88 billion, reflecting a year-over-year increase of 44.77%, while earnings per share are projected at 17 cents, down 23% in the past 30 days [7] - UMC has experienced a year-to-date share price decline of 22.3%, underperforming the Zacks Electronics - Semiconductors industry and the broader Zacks Computer & Technology sector [9] - The company has also underperformed peers like Taiwan Semiconductor, which has returned 88% year-to-date, attributed to intense competition and rising supply-chain constraints [10]