United Microelectronics Stock Pops on Report of Possible GlobalFoundries Deal
Key Takeaways
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.Ā 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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