GlobalFoundries Explores Merger With Taiwan’s UMC

A combination would allow GlobalFoundries to “build more significant scale, while UMC is able to diversify its capacity outside of Taiwan and China.”

Photographer: Cindy Schultz/Bloomberg
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GlobalFoundries Inc. is exploring a potential merger with the Taiwanese chipmaker United Microelectronics Corp. as part of a long-shot deal aimed at creating a more resilient manufacturer of older-generation semiconductors, people familiar with the situation said.

Tim Breen, who was namedBloomberg Terminal as GlobalFoundries’ incoming chief executive officer in February, has been open to considering deal options including a possible tie-up with UMC as he prepares to take the helm in April, the people said, asking not to be named because the discussions are private.