Officials to interview Tsao later

United Microelectronics Corp (UMC, 聯電) chairman Robert Tsao (曹興誠) got a temporary breather after prosecutors and the nation's stock regulator yesterday said they were in no rush to meet with him to discuss UMC's alleged illegal investment in a Chinese chipmaker.

"We'll request that the court summon Tsao for further questioning when the time is ripe," Tsai Tien-yuan (蔡添源), a spokesman for the Hsinchu Prosecutors' Office, which is in charge of the case, told the Taipei Times yesterday.

This may occur two weeks from now, after investigators complete the collection of substantial evidence and talk to UMC engineers, Tsai said.

Cooperate

Tsao returned from an overseas trip late on Sunday and when questioned by TV reporters at the airport upon his arrival, said that he would cooperate with government agencies that have questions over the relationship between UMC and He Jian Technology (Suzhou) Co (和艦).

Prosecutors suspect the world's No.2 contract chipmaker illegally transferred technologies to He Jian at no cost, damaging shareholders' interests, and invested in the chipmaker without first getting approval from the government.

The government places restrictions on investment in China by Taiwanese semiconductor companies.

To placate prosecutors, Tsao said in an open letter published on March 21 that He Jian had proposed offering UMC a 15 percent stake in the company, worth US$110 million, in exchange for past assistance. The past assistance did not include technology transfers, he said at the time.

Tsao left the country on March 22 for a business trip, according to the company, leaving many unanswered questions about the relationship between UMC and He Jian.

Regulators

The Financial Supervisory Commission yesterday also reversed a previous urgent call for Tsao to give a full explanation of the basis for the valuation of the 15 percent He Jian stake.

The stock market regulator yesterday said it would not summon Tsao for an explanation until he has recovered fully from jet lag.