Jackson Hu, UMC’s chief executive, will assume the duties as chairman, according to embattled Tsao in the letter.

The move follows a series of snafus at UMC (Hsinchu). In particular, Tsao has been the center of attention in UMC’s recent move to restate its results and a controversial investment in a Chinese foundry provider.

Tsao reportedly said Wednesday (Dec. 29) he is considering delisting the contract chipmaker from the Taiwan Stock Exchange after being penalized for delaying disclosures.

According to an Associated Press report, Tsao stated in open letter to shareholders published in major daily newspapers the Financial Supervisory Commission's decision on Dec. 15 to fine the company $1,500 was "unreasonable."

The Taiwan Stock Exchange imposed the fine on UMC because its disclosure on the SEC earnings restatement wasn't posted on the Taiwan Stock Exchange's Web site until Dec. 14, after the local bourse began trading for the session. On Dec. 13, UMC that it would restate its earnings under U.S. Generally Accepted Accounting Principles for 2002, 2003 and 2004.

Then, in June, Tsao said that he would resign in 2007 and recommended Hu take over the position. The move came as Tsao faced increasing pressure from a criminal investigation into allegedly illegal investment by UMC in Chinese foundry He Jian Technology Corp.

Tsao was questioned, but no charges were filed against him. UMC demanded that either charges are brought against its chairman or the entire matter dismissed.

By: DocMemory
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