GlobalFoundries, a US-based contract semiconductor producer, and United Microelectronics Company (UMC), Taiwan’s second-largest chipmaker, had been reportedly in talks relating to the potential of a merger.
In line with the report by NIKKEI Asia on Monday, this potential deal was occurring as America sought to strengthen its semiconductor provide chain amid rising tensions within the Taiwan Strait and growing competitors from China.
Nevertheless, UMC has denied the speculations. In line with United Day by day Information, UMC on Tuesday clarified that the corporate wouldn’t reply to any market experiences, and solely emphasised that “there isn’t a merger occurring at current”.
The merger would have created a bigger US-headquartered firm with manufacturing operations throughout Asia, the US, and Europe, as per earlier experiences. The goal was to make sure America’s entry to mature chips, which account for over 70% of world semiconductor demand.
The newest hypothesis comes after the earlier spherical of talks between the 2 firms two years in the past didn’t materialise. The US authorities has been encouraging Taiwanese firms to spice up chip manufacturing within the nation, however UMC has beforehand dominated out constructing or shopping for services there as a result of excessive prices.
A merged entity might prioritise analysis and growth investments within the US, doubtlessly changing into a substitute for Taiwan Semiconductor Manufacturing Co (TSMC), the world’s main chipmaker.
UMC serves many high chip builders, together with Qualcomm, NVIDIA, MediaTek, NXP and Infineon. GlobalFoundries has not responded to requests for remark.
As of now, Taiwan holds about 44% of the worldwide mature chip market, whereas China controls 31%, and the US holds about 5%.
Business leaders famous that any deal would possible face regulatory scrutiny from Taiwan and China. TSMC’s further $100 billion funding within the US has already induced public concern a couple of potential weakening of Taiwan’s flagship chip trade.
China additionally beforehand blocked Intel’s try to amass Tower Semiconductor, indicating potential hurdles for cross-border semiconductor offers.
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