GLOBALFOUNDRIES evaluates possible merger with UMC, leading to major consolidation in the semiconductor industry

According to reports, GlobalFoundries, the world's third largest wafer foundry, is evaluating the possibility of a merger with United Microelectronics (UMC), a semiconductor manufacturer in Taiwan Province of China.

If the deal is completed, it will create a semiconductor manufacturing giant with annual revenue of more than US$10 billion, significantly changing the current wafer foundry market structure dominated by Taiwan Semiconductor Manufacturing Company (TSMC).

Analysts said that if the merger is successful, the new entity will surpass Samsung's foundry business and become the world's second largest pure-play foundry after TSMC.

GF’s advantages in RF-SOI and FD-SOI’s specialty processes synergize with UMC’s production capacity in mature processes (28nm and above).