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By Milana Vinn
(Reuters) - Taiwan's major chipmaker United Microelectronics and U.S.-based GlobalFoundries are looking into the possibility of a merger, two sources familiar with the matter told Reuters on Monday.
A combined company would establish a larger U.S.-based firm with a global manufacturing footprint spanning Asia, the United States and Europe.
The potential deal comes as the U.S. seeks to strengthen its semiconductor supply chain amid rising geopolitical tensions in the Taiwan Strait and increasing competition from China in the mature chip market.
The merged company would prioritize research and development investments in the U.S. and could possibly emerge as a viable alternative to Taiwan Semiconductor Manufacturing Co, the world's leading chipmaker.
GlobalFoundries and UMC did not immediately respond to Reuters' requests for comment.
GlobalFoundries has a market capitalisation of $20.41 billion, while UMC is currently valued at $16.90 billion, according to data compiled by LSEG.
Shares of UMC ended 0.2% higher at 44.65 Taiwanese dollars on Monday, while GlobalFoundries closed marginally up.
(Reporting by Rishav Chatterjee in Bengaluru, additional reporting by Juby Babu in Mexico City; Editing by Shilpi Majumdar and Shreya Biswas)
