United Microelectronics Corporation (UMC) will not be allowed to acquire Hejian Technology under the current Taiwan rules, but the government may change them, according to Taiwan's economics minister Chii-ming Yiin.

Current rules only allow Taiwan players to operate a total of three wafer fabs in China, and the quota has already been filled up, Yiin said.

Yiin said the government is considering relaxing its restrictions on China-bound investment, and the wafer fab rules may also be revised. But the minister declined to set a timetable or reveal details.

UMC on Wednesday announced a bid to take full control of Hejian. UMC already owns 15% of Hejian, but the legal basis of the ownership remains an issue.

By: DocMemory
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