Trade Resources Industry Views Globalfoundries and UMC Might Form Partnership Against No.1 Silicon Foundry

Globalfoundries and UMC Might Form Partnership Against No.1 Silicon Foundry

Taipei, Dec. 6, 2012 (CENS)--Industry executives pointed out that GlobalFoundries and United Microelectronics Corp. (UMC) might form partnership against No.1 silicon foundry, Taiwan Semiconductor Manufacturing Co. (TSMC), in the formula of GlobalFoundries acquiring UMC shares initially and the two eventually exchanging their stocks.

In response to the reports, UMC said the company is open to all cooperation possibilities. However, no such a deal has been in talks, the company added.

UMC had been reported to merge with Chartered Semiconductor, GlobalFoundries’s former identity.

Some industry executives pointed out it makes sense for the two foundries to enter into alliance. However, some said the two can hardly compete against TSMC in 20nm and 28nm foundry offer.

UMC emeritus chairman, Robert Tsao, said it would be a good thing for the two companies to work together to compete for foundry contracts from integrated device manufacturers (IDMs).

He noted that the two companies are cooperating in advanced process technologies, suggesting the two companies are exchanging advanced process technologies on an IBM-led technology licensing platform.

In July 2012, UMC singed an agreement to license 20nm and 3D FinFET technologies from IBM.

Industry executives noted that UMC’ share price has dropped to only one eighth of TSMC’s from a half, suggesting the need for the company to ally.

Source: http://www.cens.com/cens/html/en/news/news_inner_42269.html
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GlobalFoundries Said to Form Partnership
Topics: Machinery