TAIPEI (Taiwan News) — United Microelectronics Corp., Taiwan’s second-largest contract chipmaker, denied on Tuesday that it is pursuing a merger with US-based GlobalFoundries following media reports about potential talks.
Nikkei Asia previously reported that GlobalFoundries was exploring the possibility of merging with UMC. The move could create a geographically diversified semiconductor manufacturer, which could help secure the US supply of mature process chips, the report said.
However, in a statement on Tuesday, UMC denied the speculation, stating it does not comment on market rumors and reaffirming that no merger discussions are underway. GlobalFoundries has not issued a response regarding the reported discussions, per CNA.
The initial report led to a rise in UMC’s US-listed shares, which jumped 9%, while GlobalFoundries' stock remained largely unchanged. The potential deal, if pursued, would have positioned the combined entity as the world's second-largest contract chipmaker. Its market share of 9.3% would surpass Samsung’s 8.1% and China’s SMIC at 5.5%, but still trail industry leader TSMC's 67.1%.
UMC reported a 2024 revenue of NT$232 billion (US$7 billion), marking a 4.4% annual increase and the second-highest in the company's history, per UDN money.
