United Microelectronics Corporation (UMC) provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. The company operates through Wafer Fabrication and the New Business segment. It serves fabless design companies and integrated device manufacturers. In comparison, GLOBALFOUNDRIES Inc. (GFS) manufactures integrated circuits, which enable various electronic devices that are pervasive. The company manufactures a range of semiconductor devices, including microprocessors, baseband processors, network processors, and microcontrollers.
A semiconductor foundry manufactures chips for companies that design but do not manufacture chips. Semiconductor chips play a vital role in the Internet of Things (IoT) and cloud-enabled technologies that are helping several companies facilitate hybrid working. In addition, the advent of advanced driver-assistance systems, autonomous driving, and decarbonization has escalated the demand for semiconductor chips. While supply constraints impacted the industry, robust demand has allowed companies to raise prices for their chips and generate substantial profits. Furthermore, the growing use of augmented reality (AR) and virtual reality (VR) technologies in various industries are expected to keep driving demand in the semiconductor industry. According to an IMARC Group report, the global semiconductor foundry market is projected to grow at a 7.4% CAGR from 2022 to 2027. Therefore, both UMC and GFS should benefit.
