News
As TSMC and Intel push sub-2nm advances, GlobalFoundries and UMC are rumored to be joining forces in mature nodes to counter rising Chinese rivals. UMC had stated that there is currently no merger in progress, but according to Economic Daily News, insiders say GlobalFoundries has already sought approval from Taiwan’s Ministry of Economic Affairs, hoping to get the green light.
The Economic Daily News report suggests that the two companies have been in merger talks for years, and the proposal has been brought back onto the table lately, with plans to leverage their strengths in the U.S. and Europe to counter China’s growing dominance in mature nodes.
No.2 Foundry in the Making?
If the merger happens, it could reshape the global foundry landscape. TrendForce reports that in Q4 2024, UMC and GlobalFoundries ranked fourth and fifth in revenue, holding 4.7% and 4.6% market share, respectively. If combined, their market share would soar to 9.3%, securing the No. 2 spot in the global foundry industry.
After TSMC’s dominant 67.1% share, Samsung (8.1%) and SMIC (5.5%) are ranked second and third in Q4 2024, according to TrendForce.
While the world focuses on cutting-edge chips, mature-node semiconductors remain crucial for consumer goods and even military applications. Thus, Commercial Times indicates that this deal would give the U.S. a strong grip on mature process manufacturing, key technologies, and end-market demand.
Complementary Portfolios and Customers
According to Commercial Times, UMC and GlobalFoundries bring unique strengths to the table, with little overlap in their product portfolio and customer bases. Notably, UMC focuses on 22/28nm, and it has been pushed toward more specialized, high-voltage CMOS processes to stay resilient despite market oversupply, the report says.
Meanwhile, the report notes that GlobalFoundries centers on 12/14nm, catering to 5G and IoT markets with major U.S. clients like Qualcomm, Broadcom, and AMD.
On the other hand, the Economic Daily News report sees this as a U.S.-backed strategy, which would expand America’s foundry influence while keeping Chinese players like SMIC and Hua Hong in check.
According to the report, UMC has fabs in China and Singapore, while GlobalFoundries operates in the U.S., Singapore, and Germany. If combined, the new entity would link key hubs across Taiwan, China, Singapore, the U.S., and Germany—bolstering America’s grip on the global foundry game, the report adds.
Read more
(Photo credit: GlobalFoundries)
