GlobalFoundries, United Microelectronics cut by Morgan Stanley on competition
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- GlobalFoundries (NASDAQ:GFS) and United Microelectronics (NYSE:UMC) were downgraded by Morgan Stanley amid competition concerns from Taiwan Semiconductor (TSM) and China.
- GlobalFoundries and United Microelectronics shares fell 0.9% in premarket trading.
- GlobalFoundries is benefiting by having a “strategic” position, but that is being offset, given the slowness of the recovery of the broader semiconductor market and a “challenging” competitive backdrop, analyst Charlie Chan said. Chan lowered his rating on both GlobalFoundries and United Microelectronics to Underweight from Equal-Weight.
- And with Chinese fabs continuing to expand, the oversupply issue is still hurting the foundry market, even if pricing pressure has eased up a bit, Chan added.