GloFo tipped to team up with UMC

Taiwanese foundry UMC is looking to raise more capital and the rumour mill has gone into overdrive, suggesting that GloFo (GlobalFoundries) could enter into a strategic relationship with the firm.

According to Digitimes, other potential partners for UMC could be Texas Instruments and equipment maker ASML.

UMC is the second largest Taiwanese foundry but is way behind the largest, TSMC, in market share. GloFo has been making waves in the foundry business since it merged with Chartered Semiconductor, and executives have indicated that TSMC is a major target in the foundry business.

Intel is an ally of TSMC. AMD still has a tenuous connection with GloFo, which took over its fabrication facilities when Abu Dhabi company Advanced Technology Investment Company (ATIC) stepped in as a white knight.

Digitimes said that UMC senior executive Chi Tung Liu said that it wants to issue over a billion new shares through a private placement and is open to approaches from “strategic partners”.