UMC's new plant at mercy of EPA

The Science-based Industrial Park Administration (科學園區管理局, SIPA) yesterday notified chipmaker United Microelectronics Corp (聯電, UMC) that testing operations at a newly built plant in Hsinchu will be ordered halted soon, because it failed two years ago to provide crucial information regarding the possible environmental impact on a nearby river.

SIPA officials said the construction permit for the plant was issued by the administration for building wafer foundry Fab 8F -- also called UMC5 (聯電五廠) -- without assessing possible environmental impact on the nearby Touchien River (頭前溪), a protected water resource area.

Operations at the plant could soon be resumed, however, as the Environmental Protection Administration (EPA) could complete procedures for an environmental impact assessment (EIA) for the plant during a meeting scheduled for Friday.

SIPA officials said yesterday that they had received an official document from its supervisory body, the National Science Council (NSC), demanding the administration withdraw the permit, which it claims was issued improperly given the lack of an EIA.

SIPA spokespersons said many officials there worked overtime during the weekend to clarify responsibility in what they said was a "state of chaos."

"UMC has to stop testing at the plant, according to regulations," said Chou San-yi (周山一), deputy director of the park's administration.

However, UMC officials -- who said the company was a victim of irresponsible governmental administration -- told the Taipei Times yesterday that they could do nothing but cooperate with the various government agencies.

"I believe we will receive final EPA approval eventually, since scientific data we have provided shows that no environmental pollution would be caused by the establishment of the plant," said UMC spokesman Alex Tseng, adding that they were preparing requested documents.

"We hope to pass the EIA as soon as possible in order to reactivate the permit, which will ensure production," said Tseng, adding that the longer the delay in obtaining the EIA approval, the greater the financial losses the company will incur.

UMC produces 2,400,000 wafers annually at its nine currently operating plants in Taiwan. The Fab 8F plant was designed to produce high-yield 8-inch wafers.

Fully loaded, the new plant's monthly capacity is 40,000 wafers.

EPA officials said yesterday that the first stage of the EIA was conditionally approved last week.

Members of the EPA's EIA Committee will review several cases on Friday -- among them the controversial UMC case -- if required documents are made available in time.

EPA officials said that the UMC case could be approved as early as Thursday if the documents, including a comprehensive investigation report from the NSC, were available even earlier.

Last Friday, the EPA demanded the NSC order the park administration to revoke UMC's permit for the foundry's operation for not processing the necessary environmental impact assessment.

EPA officials said yesterday that if it did not get the required documents for the EIA review from the NSC by Thursday at the latest, the UMC case would be rescheduled for next month's agenda.

In October 1995, the EPA announced that chipmakers located within protected water resource areas should conduct environmental impact assessments before requesting construction permits.