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Key Takeaways
- United Microelectronics shares soared on news that the company may merge with U.S. chipmaker GlobalFoundries.
- The report stated that the combined company would be able to produce in the U.S.A. and Europe.
- Reports stated that one goal of a contract would be to secure American chip access amid rising tensions in Taiwan, where United Microelectronics’ headquarters is located, and China.
Shares of Taiwanese semiconductor manufacturer United Microelectronics soared Monday after reports that it would merge with U.S. chipset maker GlobalFoundries.
Nikkei Asia, citing a potential combination assessment plan, reported Monday that such a deal would result in a U.S. company with production facilities in Asia and Europe. The report stated that the goal was to ensure American access chips in light of rising tensions between Taiwanese and mainland Chinese.
United Microelectronics shares traded in the United States rose about 9%, while GlobalFoundries was flat. Neither company responded to Investopedia's request for comment in time for publication.
The combined company is said to invest in research and development in the U.S. This could position the company as an opponent to Taiwan Semiconductor Manufacturing Co.
TMSC recently announced that it would be investing $100 billion in U.S. based manufacturing facilities. This announcement was made at a White House event. The Trump administration has made it a priority to ensure that artificial intelligence chips designed and manufactured in the United States.
