United Microelectronics Corp. (UMC), a Taiwanese chipmaker, denied reports of a potential merger with US-based GlobalFoundries Inc.

The company said it does not comment on market speculation but confirmed no merger talks are happening.

The Nikkei Asia report suggested such a merger could create a larger company with significant production in Asia, the US, and Europe.

Despite the denial, UMC’s shares rose by 2.02% to NT$45.55. This outpaced Taiwan’s Taiex index, which climbed 2.38%. UMC’s American depositary receipts (ADRs) also surged 9.16%.

UMC holds a 4.7% share of the global pure-play wafer foundry market, while GlobalFoundries has 4.6%.

A merger would create a combined market share of 9.3%, surpassing Samsung Electronics and Semiconductor Manufacturing International Corp., but still behind TSMC.

Recent UMC developments