GlobalFoundries explores merger with United Microelectronics, reports say

GlobalData

Tue, Apr 1, 2025, 12:30 PM 2 min read

US-based declaration chipmaker GlobalFoundries is reportedly exploring a imaginable merger with Taiwanese chipmaker United Microelectronics (UMC), Nikkei Asia reported, citing sources.

If realised, the combined entity would found a larger, US-based institution with accumulation capabilities spanning Asia, the US and Europe, the quality work added, citing an appraisal plan.

This strategical determination is said to beryllium motivated by the request to guarantee continued entree to mature chips for the US, peculiarly amid rising tensions betwixt China and Taiwan, arsenic good arsenic China's expanding self-sufficiency successful spot production, the program says.

The merger could besides pave the mode for important investments successful probe and improvement wrong the US, positioning the caller institution arsenic a imaginable rival to chipmaker Taiwan Semiconductor Manufacturing (TSMC).

Tim Breen, who is acceptable to instrumentality implicit arsenic GlobalFoundries’ CEO, has expressed openness to exploring assorted woody options including a imaginable tie-up with UMC, sources said.

However, it remains uncertain whether the woody volition travel to fruition arsenic fiscal and regulatory hurdles could contiguous important challenges.

GlobalFoundries, with a marketplace worth of astir $20bn, would look difficulties successful financing an outright acquisition of UMC, which is valued astatine astir $17bn.

According to manufacture experts, the merger would apt look regulatory scrutiny, particularly from Taiwan and China.

A akin effort by Intel to acquisition Israel's Tower Semiconductor was blocked by China owed to concerns implicit the enlargement of foundry capacity.

In January, tech elephantine IBM and GlobalFoundries announced a settlement, resolving each litigation matters including breach of contract, commercialized secrets and intelligence spot claims.