United Microelectronics shares close up 9% on report of potential GlobalFoundries deal

U.S. semiconductor manufacturer GlobalFoundries is reportedly weighing a merger with Taiwan-based United Microelectronics . U.S. shares of United Microelectronics closed up 9% on the news, while GlobalFoundries shares were flat. Nikkei reported the news, citing sources familiar with the deal. The merger would create a company based in the U.S with production capabilities in Asia, the U.S. and Europe, according to the report. The combined entity would aim to secure American access to mature chips amid potential risks from China competition and tensions between China and Taiwan, Nikkei reported. The new company would eventually invest in research and development in the U.S. and potentially become an alternative to Taiwan Semiconductor Manufacturing , the report said. Taiwan Semiconductor announced a $100 billion investment in the U.S. earlier this month to bolster chip manufacturing. The deal brought the company's total investment in the U.S. to $165 billion. ... Read full article.