Feeds

UMC chief admits desire to acquire Hejian

Confesses to advising the Chinese foundry's founders

  • alert
  • submit to reddit

Securing Web Applications Made Simple and Scalable

UMC chairman Robert Tsao has admitted helping the founders of China-based foundry Hejian Technology devise a business plan for their company.

But while he re-iterated UMC's previous position that neither it nor its executives have a stake - financial or technological - in Hejian, Tsao came clean on UMC's interest in acquiring the Chinese foundry should the Taiwanese government relax its rules governing the ownership of technology businesses on the mainland.

Tsao's comments, made in a statement written in Chinese and issued to Taiwanese reporters today, came after Taiwan's Ministry of Justice (MoJ) launched an investigation into allegations the UMC staff had indeed invested in Hejian and that they had done so without the government's blessing.

Taiwanese law requires any local chip company investing in a venture on the mainland to declare the fact. If they wish to set up over there, they must first seek the government's permission. Tsao maintains that his role as an advisor to Hejian management is not covered by the law. He said that his input was limited to ways Hejian could compete with Chinese foundry SMIC rather than with UMC or other Taiwan-based chip producers. SMIC, he said, was a far greater threat to Taiwan's chip industry than Hejian is.

Indeed, he said that UMC may in the future seek to buy Hejian. The MoJ claims that UMC tacitly licensed almost 200 patents to Hejian. Tsao did not admit such an agreement, but he did say that UMC has held back from pursuing possible patent infringement claims through the courts the better to strengthen its hand in any future bid to take over the Chinese company. Presumably that hands-off approach also applies to any efforts UMC might have made to pursue allegations that Hejian staff downloaded its technology by hacking into its intranet.

The MoJ probe saw not only UMC's HQ but also the homes of senior executives raided this week in a bid to expose evidence to back up the allegation.

Yesterday, it emerged that Hejian chairman J H Hsu had been detained by the MoJ before being released on a TWD10m ($316,910) bail pending the outcome of the investigation. ®

Related stories

Taiwanese agents detain Chinese foundry chief
UMC HQ raided in China investment probe
UMC Q4 income plummets on inventory adjustments
SMIC coughs $175m to settle espionage allegations
Chips are down for Taiwan foundry giants

Build a business case: developing custom apps

More from The Register

next story
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.