China's National Integrated Circuit Industry Investment Fund reportedly has targeted Globalfoundries for acquisition in order to allow China to secure 14nm FinFET foundry process technology in a fast manner, according to sources from Taiwan's semiconductor industry.

China-based Hua Capital Management, which manages the national semiconductor industry investment fund on behalf of the central government, has approached Globalfoundries for possible cooperation through an investment bank, said the sources.

Meanwhile, Abu Dhabi's Advanced Technology Investment (ATIC), a major shareholder of Globalfoundries, is said to have a willingness to release its holdings in Globalfoundries, a move which may accelerate the planned acquisition deal, the sources noted.

The acquisition of Globalfoundries would enable Semiconductor Manufacturing International Corporation (SMIC), currently the largest wafer foundry house in China, to enter volume production of 14nm FinFET products much earlier than its original schedule, the sources indicated.

SMIC began volume production of 28nm chips in cooperation with Qualcomm recently and has signed an agreement with Qualcomm, IMEC and Huawei to develop 14nm process with volume production slated for 2020.

However, since Globalfoundries' 14nm process is licensed by Samsung Electronics, it is believed that Samsung is unlikely to agree to the acquisition bid from China, commented the sources.