TAIPEI (TVBS News) — Taiwan's semiconductor industry faced fresh speculation Wednesday (April 9) as Minister of Economic Affairs J.W. Kuo (郭智輝) firmly rejected circulating rumors regarding a potential merger between GlobalFoundries (格羅方德), the American semiconductor manufacturer, and Taiwan's United Microelectronics Corporation (UMC, 聯電), the world's fourth-largest foundry. During an official briefing, Kuo categorically dismissed the possibility, stating that his ministry has received no information about such a transaction and characterizing the rumored consolidation as "impossible" under current circumstances.
The minister's comments came during a scheduled reporting session at the Legislative Yuan (Taiwan's parliament), where Legislator Chang Chi-kai (張啓楷) of the Taiwan People's Party (TPP, 民眾黨), a centrist political party, raised concerns about the merger speculation recently published by influential business publication Nikkei Asia. Addressing the legislator's questions, Kuo outlined the regulatory framework governing such transactions, explaining that any Taiwanese semiconductor company pursuing overseas investments or significant corporate restructuring must first submit formal applications for ministerial review and approval. The minister emphasized that his department has received no such documentation from UMC regarding the rumored GlobalFoundries deal.
The questioning intensified when Legislator Hsu Chiao-hsin (徐巧芯) from the Kuomintang (KMT, 國民黨), Taiwan's main opposition party, pressed the minister on whether his department would theoretically support such a merger if formally proposed. Maintaining his measured stance, Kuo declined to engage with the hypothetical scenario, reiterating that the ministry possesses no concrete information about any merger discussions between the two semiconductor manufacturers and therefore would not speculate about potential regulatory positions on a transaction that may not exist.
The minister's dismissal aligns with UMC's own public position on the matter. Last week, the Taiwanese chipmaker issued a statement declining to address what it characterized as market rumors, explicitly stating that no merger plans were currently under consideration. The speculation originated from a Nikkei Asia report claiming that GlobalFoundries had initiated preliminary discussions with UMC regarding a potential consolidation that would create a more geographically diversified semiconductor manufacturing entity. According to the publication, this strategic rationale was driven partly by growing concerns about geopolitical instability and rising military tensions in the Taiwan Strait, the narrow body of water separating Taiwan from mainland China (the People's Republic of China).
