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MOEAIC orders UMC to pay $145M

Posted: 21 Feb 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Ministry of Economic Affairs Investment Commission? MOEAIC? United Microelectronics? UMC?

Taiwan's Ministry of Economic Affairs Investment Commission (MOEAIC) revealed last week that it will be penalizing United Microelectronics Corp. (UMC) a total of $145 million for breaking local government laws on business ownership.

MOEAIC officials said that the agency charged UMC for being involved in the establishment of Hejian Technology (Suzhou) Co. Ltd, a semiconductor foundry in mainland China.

Commission reports also say that UMC worked with Hejian Technology in facility construction, equipment schedules, technology assistance, capacity allocation, financial management and share listing. UMC was charged with illegal investment in mainland China since the company held a 15 percent stake in Hejian Technology.

The announcement was made the same day that UMC announced repurchasing 5.05 percent of issued treasury shares to write-off capital. MOEAIC gave UMC 6 months to pay the charges. The Commission may continue to impose penalties on the company unless it withdraws its investment in Hejian Technology.

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