Since taking office, President Donald Trump has wielded tariffs as a tool to disrupt global trade. On April 9, Taiwan's Minister of Economic Affairs, J.W. Kuo, addressed these major shifts in international trade during a legislative session in Taiwan's Economic Committee. However, lawmakers focused on rumors of a potential merger between GlobalFoundries and United Microelectronics Corporation (UMC), prompting Kuo to clarify that while he would not comment on market rumors, he firmly believes such a merger is not feasible.
The semiconductor industry, recognized as a strategic sector, has been under significant pressure, particularly as the US has aggressively pushed for Taiwan's TSMC to establish advanced manufacturing facilities on American soil. Meanwhile, rumors about the possible merger of GlobalFoundries and UMC have been circulating, with speculations suggesting that both companies might join forces to create a larger entity through investment in the US.
Reports have speculated that one of the goals of this potential merger could be to ensure a stable supply chain of mature-process chips to the US and to mitigate competition from Chinese manufacturers in this sector. GlobalFoundries COO Tim Breen has reportedly expressed openness to various transactions, including a merger with UMC.
However, neither company has officially confirmed these rumors, and additional reports also mention a preliminary agreement between TSMC and Intel to create a joint venture for a US-based wafer fabrication plant, though these reports remain unverified.
President Trump had previously threatened to impose tariffs of up to 100% on semiconductors exported from foreign countries to the US. Some sources even suggested that if TSMC fails to fulfill its investment commitments in the US, it could face the full 100% tariff on its chips. Minister Kuo, however, stated that he would not respond to market rumors, but emphasized that since TSMC had committed, the company would fulfill it. As for the GlobalFoundries-UMC merger speculation, he was unequivocal in his response, stating there is no possibility.
Article edited by Jack Wu
