GlobalFoundries Semiconductor Manufacturing Facility, located in Malta, New York, June 18, 2024.
Cindy Schultz | Bloomberg | Getty Images
US semiconductor manufacturers GlobalFoundries There is a reported merger with a Taiwan-based base. United Microelectronics.
United Microelectronics’ US stocks closed 9% on news, while GlobalFoundries’ stock remained flat. Nikkei reported the news and cited sources familiar with the deal.
The merger will create US-based companies with production capacity in Asia, the US and Europe, according to the report. The combined entity aims to ensure US access to mature chips amid the potential risks from China’s competition and tensions between China and Taiwan, Nikkei reported.
The new company will eventually invest in US research and development and will potentially become a substitute Taiwan Semiconductor Manufacturingsaid the report. Taiwan Semiconductors announced a $100 billion investment in the US earlier this month to strengthen chip manufacturing. The transaction brought the company’s total US investment to $165 billion.
Taiwan has become a global chip manufacturing hub, building several chips for large companies such as Nvidia and Apple. Taiwan Semiconductors are far more global suppliers.
Both GlobalFoundries and United Microelectronics reportedly discussed the merger and notified government officials from both countries. United Microelectronic had previously considered purchasing or building a production plant in the United States, but it has abandoned the possibility due to costs, Nikkei reported.
Read the full report here.
