02.17.2005 The New York Times, U.S.A.
Taiwan Investigating Chip Giant
By THE ASSOCIATED PRESS
Published: February 16, 2005
, Filed at 2:31 p.m. ET
TAIPEI, Taiwan (AP) -- Taiwan is investigating chip giant United Microelectronics Corp. for allegedly making illegal investments in rival China, prosecutors said Wednesday.
Taipei strictly controls chipmakers' investments in mainland China, with companies required to apply for permission before going ahead with such deals.
Prosecutors said they were investigating links between UMC and a Chinese chipmaker, He Jian Technology (Suzhou). He Jian was founded in 2001 by former UMC employees and began producing semiconductors in June 2003.
So far, only Taiwan Semiconductor Manufacturing Co. has received the government's approval to invest in China's chip industry. TSMC is the world's largest manufacturer of made-to-order chips, and UMC is its smaller rival.
Prosecutor Tsai Tien-yuan said Wednesday that investigators were looking into the relationships between UMC and He Jian in financial, technology and personnel affairs.
``We must understand ... whether some employees work there but are paid here, or work here but are paid there,'' he said.
The investigation focused on about a dozen people, including one important manager, Tsai said, without elaborating.
UMC has said that when its customers need to have chips produced in China, it refers them to He Jian, but that no formal partnership exists between the two companies.
UMC spokesman Liu Chi-tung confirmed agents from the Investigation Bureau visited company offices Tuesday and took away some materials, but he declined to say what was taken. Liu said officials haven't ``found any evidence of inappropriate activity as implied by the media.'' |
