UMC, Silicon move closer to settlement on patent imbroglio

United Microelectronics Corp (UMC, 聯電), took three of seven seats on the board of rival Silicon Integrated Systems Corp (矽統科技) as the two companies closed in on a patent dispute settlement.

Jackson Hu (胡國強), the president of new business development at UMC, Kuan Chun (關鈞), the director of accounting, and Simon Fang (方頌仁), the director of US and European sales, were elected at a shareholders' meeting.

UMC, which last month bought a 4.5 percent stake in Silicon Integrated, has no plans to buy more shares, said Stan Hung, UMC's director of finance.

Silicon Integrated, originally a chip designer, stopped placing manufacturing orders with UMC after building its own plant. UMC later filed suit for patent violations.

Some of the largest shareholders in Silicon Integrated -- founder Eugene Duh (杜俊元) and Duh's wife -- as well as minority shareholder Ku Hsiao-fen have stepped down from the board.

"UMC could help Silicon Integrated expand production,"Silicon Integrated Chairman Samuel Liu (劉曉明) said.