Investigation into UMC's alleged illegal investments drove down the company's stock value. UMC shares fell almost 3 percent to NT$20.4 yesterday on the benchmark Taiwan Stock Exchange.
Going against the grain, JPMorgan analyst Bhavin Shah cautiously maintained his "underweight" rating for the UMC, despite the a potential industrial upturn.
UMC may not have any significant financial impact should the investigation establish a link between UMC and He Jian, but the probe could be disruptive to the normal running of the company and is certainly likely to affect its reputation, he said.
"This will make it difficult for institutional investors to justify owning [UMC] stock," Shah said.
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