Print

Mail

wiki links

UMC makes former CFO new chairman in leadership shuffle

United Microelectronics Corp (UMC, 聯電), the world’s No. 2 contract chipmaker, yesterday named former chief financial officer Stan Hung (洪嘉聰) to succeed Jackson Hu (胡國強) as the new chairman in an effort to revitalize the company and enhance customer services.

“Moving forward, UMC remains committed to serving our customers with the best possible foundry services while enhancing the strength of our financial structure and controlling costs to maximize the benefits for our customers, shareholders and employees,” Hung said in a statement yesterday.

As part of the management reshuffle, the chipmaker also chose chief operating officer Sun Shih-wei (孫世偉) as chief financial executive, replacing Hu. UMC will hire Hu as a senior adviser.

“My top priority as CEO will be to ensure that we deliver solutions that target our customers’ success as they face these times of economic uncertainty,” Sun said.

The shakeup came as the chip industry faces a risk of slower-than-expected revenue growth in the third quarter.

Credit Suisse expected a “more muted third quarter” and forecast revenue growth of 7 percent to 10 percent for contract chipmakers on Tuesday — a sober forecast compared with the 15 percent projected by some analysts.

Some analysts expressed concern about Hung’s appointment, as most semiconductor companies including major rival Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) prefer candidates with a firm grounding in the technology over those with backgrounds in finance.

“I don’t think it is a good arrangement for the chipmaker’s future expansion in terms of business and technology development,” said a semiconductor analyst who declined to be named.

The analyst said it would be challenging for Hung to lead a technology-oriented firm.

However, another semiconductor analyst at a European research firm said “we are neutral about this management change. We believe the adjustment will not lead to any major changes in UMC’s future strategies.”

Sun has played a key role in helping UMC develop advanced technologies and the new position should suit him, the analyst said.

UMC shares jumped 1.01 percent to NT$15.5 yesterday, outperforming TSMC, which rose 0.37 percent to NT$53.8.
This story has been viewed 946 times.