GlobalFoundries and Taiwanese chipmaker UMC mull potential merger, Nikkei reports

Taiwan’s major chipmaker United Microelectronics and U.S.-based GlobalFoundries are exploring the possibility of a merger, the Nikkei reported on Monday, citing an assessment plan seen by the newspaper.

A combined entity would establish a larger U.S.-based firm with a global manufacturing footprint spanning Asia, the United States and Europe, according to the report.

The news of a potential deal comes as the US seeks to strengthen its semiconductor supply chain amid rising geopolitical tensions in the Taiwan Strait and increasing competition from…