GlobalFoundries explores merger with Taiwan's UMC, says Nikkei
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The news: US-based GlobalFoundries and Taiwan’s United Microelectronics Corp (UMC) are exploring the possibility of a merger, Nikkei reported, citing an assessment plan.
A combined entity would establish a larger US-based firm with a global manufacturing footprint spanning Asia, the United States and Europe, according to the report.
The context: The merged company would prioritise research and development investments in the US and could potentially emerge as a viable alternative to Taiwan Semiconductor Manufacturing Co, Nikkei said.
GlobalFoundries has made contact with UMC about a possible deal and some government officials in both the US and Taiwan are aware of the contact, Nikkei reported, citing two people familiar with the matter.
The news comes as the US seeks to strengthen its semiconductor supply chain amid rising geopolitical tensions in the Taiwan Strait and increasing competition from China in the mature chip market.
The numbers: GlobalFoundries has a market capitalisation of USD20.40 billion, while UMC is valued at USD16.90 billion, according to LSEG.
Neither firm has commented on the report.
The source: Nikkei
