March 31 (Reuters) - Taiwan's major chipmaker United

Microelectronics ( UMC ) and U.S.-based GlobalFoundries ( GFS )

are looking into the possibility of a merger, two

sources familiar with the matter told Reuters on Monday.

A combined company would establish a larger U.S.-based firm

with a global manufacturing footprint spanning Asia, the United

States and Europe.

The potential deal comes as the U.S. seeks to strengthen its

semiconductor supply chain amid rising geopolitical tensions in

the Taiwan Strait and increasing competition from China in the

mature chip market.

The merged company would prioritize research and development

investments in the U.S. and could possibly emerge as a viable

alternative to Taiwan Semiconductor Manufacturing Co ( TSM ),

the world's leading chipmaker.

GlobalFoundries ( GFS ) and UMC did not immediately respond to

Reuters' requests for comment.

GlobalFoundries ( GFS ) has a market capitalisation of $20.41

billion, while UMC is currently valued at $16.90 billion,

according to data compiled by LSEG.

Shares of UMC ended 0.2% higher at 44.65 Taiwanese dollars

on Monday, while GlobalFoundries ( GFS ) closed marginally up.