UMC Denies Merger Rumors with GlobalFoundries; Economic Minister Analyzes Ineffectiveness of Merger
UMC, the second-largest wafer foundry, officially denied rumors about a merger with GlobalFoundries, causing stock price fluctuations. Economic Minister Guo Zhi-hui analyzed on the radio program 'Noon Currency Exchange' that GlobalFoundries is a debt-laden company, while UMC is profitable, indicating that the merger lacks synergistic effects.
According to reports from WantWant Financial News, senior analyst Chen Rong-hua pointed out that GlobalFoundries and UMC each have their own strengths in technology layout, with GlobalFoundries having advantages in RF and FD-SOI processes. If a merger were to occur, both sides could potentially complement each other's product lines. Even if the acquisition fails to materialize, UMC's yield rate of over 6% remains significantly better than the average 3% to 4% in the Taiwan stock market, making it attractive for investors seeking stable cash flow in a high interest rate environment.
