Feeds

UMC chairman to quit over China investment case

Sooner or later, depending on trial outcome

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

UMC chairman Robert Tsao is to quit his post, the chip foundry revealed this week in a document filed with the Taiwan Stock Exchange.

Tsao is at the centre of allegations that UMC took a stake in China-based foundry Hejian without notifying the Taiwanese government, as the island's law requires.

UMC's filing presents two exit strategies: if Tsao is found guilty of a breach of trust with the Taiwanese government, he will resign immediately. If his name is clear, he will stay on for a little while before quitting in favour of UMC CEO Jackson Hu. The company expects this transition to take place before 2007.

Hejian was founded by a number of ex-UMC executives in 2001. Tsao says he simply advised the founders on business matters. UMC says it has entered into no deal will Hejian, either to provide it with funding or technology.

However, it has been claimed that Hejian staffers not only had access to UMC's intranet, but the company's fab incorporated UMC-patented technology, seemingly without protest from the Taiwanese company. It is alleged that UMC tacitly licensed its technology to Hejian.

Investigators from Taiwan's Ministry of Justice raided UMC's HQ and the homes of executives in February seeking evidence to support these allegations.

UMC has said it would like to invest in Hejian, and in March put in place a scheme to do so, going through the correct channels. It is seeking permission to invest $110m in Hejian. Tsao had already said that UMC would be keen to acquire Hejian at some future time.

The UMC-Hejian case has yet to come to court, though Tsao and 23 other executives, including UMC vice-chairman John Hsuan and Hejian chairman J H Hsu, have been named as defendants when the case is eventually heard by Taiwan's Hsinchu District Court.

UMC called on the Court to speed the start of the trial. Tsao said he had quit his role as a national policy advisor in order to stand trial as an ordinary citizen. ®

Related stories

TSMC, UMC Q1 sales slide
UMC to take stake in Hejian
UMC chiefs to answer China investment claims
UMC chief admits desire to acquire Hejian
Taiwanese agents detain Chinese foundry chief
UMC HQ raided in China investment probe

Boost IT visibility and business value

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
Class war! Wikipedia's workers revolt again
Bourgeois paper-shufflers have 'suspended democracy', sniff unpaid proles
'Aaaah FFS, 'amazeballs' has made it into the OXFORD DICTIONARY'
Plus: 'EE, how shocking, ANOTHER problem I face with your service'
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.