United Microelectronics Corporation (UMC) is reportedly exploring a potential merger with U.S.-based GlobalFoundries, according to a Nikkei report citing an assessment plan. This news has led to a significant increase in UMC's U.S. shares.
A combined entity would establish a company based in the U.S. with production capabilities spanning Asia, the U.S., and Europe. This strategic move aims to secure American access to mature chips amidst geopolitical considerations and competition from China.
The potential merger could position the new company as an alternative to Taiwan Semiconductor Manufacturing and would involve investments in research and development in the U.S. Both companies have reportedly discussed the merger and informed government officials from both countries.
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