Hu named chairman of UMC, replaces Tsao

Jackson Hu, the CEO of Taiwan’s United Microelectronics Corp., the world’s second-largest contract chip maker, has been named chairman of the company, according to a statement released by UMC.

Hu replaces Bob Tsao, who resigned his position last month citing government meddling and scrutiny of his company’s business affairs as the principal reasons for his departure. Hu will continue to serve as CEO of the company, says Alex Hinnawi, a UMC spokesman in Taipei.

Tsao’s resignation has been accepted by the company’s board of directors, the statement said. Despite his resignation, Tsao will hold the title of chairman emeritus. Vice Chairman John Hsuan has also resigned his position at the company, UMC said, adding that Hsuan will hold the title of vice chairman emeritus.

No reason was given for Hsuan’s resignation.

UMC has been under scrutiny in Taiwan over alleged illegal investments in a Chinese semiconductor company, He Jian Technology (Suzhou) Co. Ltd. In addition, UMC restated some financial statements last month after the U.S. Securities and Exchange Commission requested that it revisit full-year earnings for 2002 through 2004 because they didn’t conform to U.S. accounting regulations.

UMC, which is listed in both the U.S. and Taiwan, did not change its financial statements made under Taiwanese accounting rules.

Although UMC released a statement regarding the planned changes to its U.S. financial statements after U.S. stock markets closed, the company did not notify Taiwanese shareholders in the local language until after the Taiwanese stock exchange opened on the following day. That delay in notification resulted in a NT$500,000 fine levied on UMC by the Taiwan Stock Exchange.

Both Tsao and Hsuan have also been hired as senior advisers to UMC and are entitled to attend meetings of the company’s board of directors, the statement said.