TAIPEI (Taiwan News) — United Microelectronics Corp., one of Taiwan's major chipmakers and a leading player in semiconductor manufacturing, is in discussions with US-based GlobalFoundries about a potential merger, Nikkei Asia reported on Monday.
According to sources, US and Taiwanese government officials are aware of the ongoing discussions. If completed, the merger would create a geographically diversified semiconductor manufacturer that could help ensure the US maintains access to mature process chips.
UMC has declined to comment, citing its company policy against discussing market rumors. GlobalFoundries has yet to respond to the matter.
GlobalFoundries is valued at about US$20 billion (NT$664 billion), while UMC’s market value is close to US$17 billion. It is still unclear whether GlobalFoundries will propose a direct acquisition of UMC or who will lead the merged company.
The merger talks come at a time of rising cross-strait tensions and increasing competition from China in the semiconductor industry. The US has been making efforts to strengthen its semiconductor supply chain, and a merger would result in a larger US-based company with a global manufacturing footprint across Asia, the US, and Europe.
Following the news, UMC's US shares rose by 9%. GlobalFoundries' shares remained flat, per CNBC.
The merger, if finalized, would lead to the creation of a new company that plans to invest in research and development in the US. This could position the merged entity as a potential alternative to TSMC, which currently dominates the global semiconductor market.
In Q4 2024, UMC captured 4.7% of the global wafer foundry market, positioning it as the fourth-largest foundry. GlobalFoundries held 4.6%, securing the fifth spot.
Combined, UMC and GlobalFoundries hold a total market share of 9.3%, surpassing Semiconductor Manufacturing International Corp.’s 5.5% and Samsung’s 8.1%. This would place them as the second-largest global foundry, trailing only the industry leader, TSMC.
