• United Microelectronics (UMC) shares surged approximately 9% following reports of a potential merger with U.S.-based GlobalFoundries (GFS). This merger aims to create a combined entity with production capabilities across the U.S., Asia, and Europe, enhancing the companies' ability to secure American access to semiconductor chips amid rising geopolitical tensions between Taiwan and China. The merger could position the new company as a formidable competitor to industry leader Taiwan Semiconductor Manufacturing Co. (TSMC), which has recently announced significant investments in U.S. chip manufacturing.

• The merger discussions come at a time when the semiconductor industry is facing increasing competition and supply chain challenges. Analysts have noted that while the merger could provide scale and resources to compete against Chinese firms, it also presents significant regulatory hurdles, particularly concerning cross-border transactions. Bank of America has flagged these complexities, suggesting that GlobalFoundries' unique value proposition—its limited exposure to China and Taiwan—might be compromised in a merger scenario. Investors are closely monitoring these developments as they could significantly impact the competitive landscape of the semiconductor industry.