Speculation: GlobalFoundries Contemplates Merger with United Microelectronics to Establish Comprehensive Chip Manufacturing Facilities Across Regions

There are reports from Nikkei Asia citing sources that GlobalFoundries is considering merging operations with United Microelectronics (UMC), a chip manufacturing company in Taiwan. The reports suggest that the reason for these two companies considering a deal stems from trade tensions, which could impact both companies as they do not have facilities in certain regions. However, by consolidating operations, the new entity would have manufacturing plants spread across various regions, including the United States, Europe, and throughout Asia, including Taiwan.

UMC had previously considered acquiring businesses or setting up chip manufacturing plants in the United States, while GlobalFoundries had news about restructuring their business, with speculation at the time that the company would acquire Intel’s chip manufacturing facilities.

Source: CNBC

TLDR: GlobalFoundries is looking into combining operations with UMC to expand their manufacturing presence across different regions, amid trade tensions affecting companies without facilities in certain areas.