UMC to file appeal against fine for aid to Chinese factory

United Microelectronics Corp (UMC, 聯電), the world's No. 2 made-to-order chipmaker, said yesterday that it will file an appeal after the government fined it for helping a Chinese semiconductor firm establish a factory.

In a statement made to the Taiwan Stock Exchange yesterday, UMC said the company will follow legal procedures to file an appeal after officially receiving the fine from the Ministry of Economic Affairs.

The Ministry of Economic Affairs fined UMC NT$5 million (US$154,564) on Feb. 15 for helping the Chinese chipmaker, He Jian Technology (Suzhou) Co (和艦科技), set up a plant in 2002 without first gaining the government's approval.

Under the "Statute Governing the Relations Between the People of the Taiwan Area and the Mainland Area," Taiwanese nationals, corporations or groups are not allowed to invest in, engage in technological cooperation with, or do any business with their counterparts in China without prior approval from the government.

UMC's former chairman Robert Tsao (曹興誠) and former vice chairman John Hsuan (宣明智) were indicted for breach of trust and violating the Business Accounting Law (商業會計法) last month.

Both Tsao and Hsuan could receive sentences ranging between six months and five years in prison.