Taiwan’s Chipmaker UMC Denies Reports of Merger with GlobalFoundries
GlobalFoundries, a US-based contract semiconductor manufacturer, and United Microelectronics Corporation (UMC), Taiwan’s second-largest chipmaker, were reportedly in talks regarding the possibility of a merger. According to the report by NIKKEI Asia on Monday, this potential deal was happening as America sought to strengthen its semiconductor supply chain amid rising tensions in the Taiwan Strait and increasing competition from China. However, UMC has denied the speculations. According to United Daily News, UMC on Tuesday clarified that the company would not respond to any market reports, and only emphasised that “there is no merger going on at present”. The merger would have created a larger US-headquartered company with manufacturing operations across Asia, the US, and Europe, as per previous reports. The aim was to ensure America’s access to mature chips, which account for over 70% of global semiconductor demand. The latest speculation comes after the previous round of talks between the two companies two years ago did not materialise. The US government has been encouraging Taiwanese companies to boost chip production in the country, but UMC has previously ruled out building or buying facilities there due to high costs. A merged entity could prioritise research and development investments in the US, potentially becoming an alternative to Taiwan Semiconductor Manufacturing Co (TSMC), the world’s leading chipmaker. UMC serves many top chip developers, including Qualcomm, NVIDIA, MediaTek, NXP and Infineon. GlobalFoundries has not responded to requests for comment. As of now, Taiwan holds about 44% of the global mature chip market, while China controls 31%, and the US holds about 5%. Industry leaders noted that any deal would likely face regulatory scrutiny from Taiwan and China. TSMC’s additional $100 billion investment in the US has already caused public concern about a potential weakening of Taiwan’s flagship chip industry. China also previously blocked Intel’s attempt to acquire Tower Semiconductor, indicating potential hurdles for cross-border semiconductor deals.
“There is no merger going on at present.”
“There is no merger going on at present.”
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