United Microelectronics shares pop more than 10% on report of potential GlobalFoundries deal

Core Viewpoint - U.S. semiconductor manufacturer GlobalFoundries is considering a merger with Taiwan-based United Microelectronics to enhance production capabilities and secure access to mature chips amid geopolitical tensions [1][2] Group 1: Merger Details - The proposed merger would create a company with production capabilities in the U.S., Asia, and Europe [2] - Following the news, shares of United Microelectronics increased by 13%, while GlobalFoundries shares decreased by approximately 1% [1] Group 2: Strategic Implications - The combined entity aims to secure American access to mature chips, addressing potential risks from competition with China and tensions between China and Taiwan [2] - The new company is expected to invest in research and development in the U.S. and could serve as an alternative to Taiwan Semiconductor Manufacturing [3] Group 3: Competitive Landscape - Taiwan Semiconductor Manufacturing announced a $100 billion investment in the U.S. to enhance chip manufacturing, raising its total investment in the U.S. to$165 billion [3]