UMC under investigation over Hejian links
Taiwanese semiconductor companies are restricted under law from investing in certain technologies in China. This is an attempt by the government to prevent China threatening Taiwan’s dominance in the semiconductor foundry business. UMC has been accused of flouting these laws by helping to set up Hejian Technologies, a chip foundry based in mainland China.
As part of the investigation, Hejian chairman Shyu Jian-hua has been arrested and UMC’s offices in Hsinchu and Taipei have been raided. The homes of Jian-hua and UMC vicechairman John Hsuan have also be searched in an attempt to find evidence that illegal dealings have been undertaken. If found guilty, UMC could be fined up to US$800,000 and certain executive could be imprisoned for up to five years.
In the latest twist in the case, UMC chairman Robert Tsao wrote a letter to the prosecutors in which he admitted that the company had helped establish Hejian but denied that the company had broken the law.
