Finance
GlobalFoundries and Taiwanese chipmaker UMC mull potential merger, sources say
Published by Global Banking & Finance Review®
Posted on March 31, 2025
1 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 31, 2025
1 min readLast updated: January 24, 2026
GlobalFoundries and UMC are exploring a merger to bolster the US semiconductor supply chain, potentially challenging TSMC amid geopolitical tensions.
By Milana Vinn
(Reuters) - Taiwan's major chipmaker United Microelectronics and U.S.-based GlobalFoundries are looking into the possibility of a merger, two sources familiar with the matter told Reuters on Monday.
A combined company would establish a larger U.S.-based firm with a global manufacturing footprint spanning Asia, the United States and Europe.
The potential deal comes as the U.S. 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 merged company would prioritize research and development investments in the U.S. and could possibly emerge as a viable alternative to Taiwan Semiconductor Manufacturing Co, the world's leading chipmaker.
GlobalFoundries and UMC did not immediately respond to Reuters' requests for comment.
GlobalFoundries has a market capitalisation of $20.41 billion, while UMC is currently valued at $16.90 billion, according to data compiled by LSEG.
Shares of UMC ended 0.2% higher at 44.65 Taiwanese dollars on Monday, while GlobalFoundries closed marginally up.
(Reporting by Rishav Chatterjee in Bengaluru, additional reporting by Juby Babu in Mexico City; Editing by Shilpi Majumdar and Shreya Biswas)
The main topic is the potential merger between GlobalFoundries and UMC to enhance the US semiconductor supply chain.
The merger is significant as it could create a major US-based semiconductor firm with a global footprint, challenging TSMC.
The merger is partly driven by US efforts to secure its semiconductor supply chain amid tensions in the Taiwan Strait.
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