GlobalFoundries and UMC are considering a merger

Published: 2025-04-01 04:30:38 ET GFS

By Thomas Barnet

Taiwanese semiconductor manufacturer United Microelectronics (UMC) and US-based GlobalFoundries are exploring the possibility of a merger, according to two well-informed sources quoted by Reuters. Such an operation would create a company based in the US, but which has a global industrial footprint, covering Asia, the US and Europe.

Sovereignty battle in semiconductors

This potential tie-up comes at a time when the United States is seeking to strengthen its semiconductor supply chain in the face of growing geopolitical tensions in the Taiwan Strait and China's rising power in the mature chip sector. The merged company would concentrate its R&D efforts in the US, and could emerge as a credible alternative to Taiwanese giant TSMC.

GlobalFoundries is worth $20.4bn, compared with just under $17bn for UMC. The announcement, which took place during trading in the US, did not provoke any particular enthusiasm about GFS.

Thomas Barnet