Key Takeaways
- United Microelectronics stock jumped on a report that the company is considering a merger with U.S. chipmaker GlobalFoundries.
- A combined company would have production capabilities in the U.S., Asia, and Europe, the report said.
- One goal of a deal would be to secure American access to chips amid rising tensions between Taiwan, where United Microelectronics is based, and China, reports said.
Shares of Taiwan-based semiconductor manufacturer United Microelectronics (UMC) surged Monday on reports it would merge with U.S. chipmaker GlobalFoundries (GFS).
Such a deal would create a U.S.-based company with production in Asia and Europe, Nikkei Asia reported Monday, citing an assessment plan of the potential combination. The goal would be to ensure American access to chips amid rising tensions between Taiwan and mainland China, the report said.
U.S.-traded shares of United Microelectronics jumped about 9% Monday, while GlobalFoundries stock was flat. Neither company responded to Investopedia’s request for comment in time for publication.
The combined company would reportedly invest in research in development in the U.S., which could position the company as a competitor to Taiwan Semiconductor Manufacturing Co. (TSM), the world’s largest chip manufacturer.
TMSC recently said it would invest $100 billion in U.S.-based chip manufacturing facilities in an event at the White House. The Trump administration has called ensuring that artificial intelligence chips are designed and manufactured domestically a priority.
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