Asia Express - East Asian ICT
UMC Seeks to Wholly Own Chinese Foundry HeJian Technology
May 01, 2009
Taiwanese semiconductor foundry UMC (United Microelectronics Corp) announced on April 29 that its board has approved the acquisition of a Chinese eight-inch chip foundry HeJian Technology, Taiwan's Central News Agency reported. Established in Suzhou in 2001, HeJian currently has a monthly manufacturing capacity of 41,000 wafers. UMC already owns a 15% stake, which has been held in trust, in HeJian, and UMC plans to spend up to US$285 million on purchasing the remaining 85% stake, making HeJian a wholly-owned unit of UMC.

The UMC-HeJian deal, however, is expected to encounter difficulties with the Taiwanese government, as so far Taiwan has allowed only three companies - TSMC, Powerchip, and ProMOS - to set up eight-inch semiconductor foundry operations in China, also according to Central News Agency. Taiwan's MOEA (Ministry of Economic Affairs) Minister Yin Chi-ming said that the UMC-HeJian deal will be taken into account when the MOEA decides on policies regulating Chinese enterprises' investments in Taiwan by year-end 2009.