News Global Foundry considers acquisition of UMC, Taiwan's second largest chip manufacturer

[marees]

Both GlobalFoundries and United Microelectronics have reportedly discussed the merger and informed government officials from both countries. United Microelectronic had previously looked into buying or building production plants in the U.S. but ditched the possibility due to costs, Nikkei reported.

Read the full report here.

Nikkei reported the news, citing sources familiar with the deal.

The merger would create a company based in the U.S with production capabilities in Asia, the U.S. and Europe, according to the report. The combined entity would aim to secure American access to mature chips amid potential risks from China competition and tensions between China and Taiwan, Nikkei reported.


https://www.msn.com/en-us/money/com...es-deal/ar-AA1C0L92?ocid=finance-verthp-feeds

 

[marees]

Once the two companies merge, their global foundry market share will surge to over 9%, surpassing Samsung and SMIC to become the world's second largest foundry. However, this will still be a huge gap from the more than 60% market share of the leading TSMC

A potential combo would help fend off rising competition from China in mature chips and could help mitigate the risk of a China invasion of Taiwan. China would likely block the deal, just as it blocked a planned Intel acquisition of chip foundry Tower Semi.

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