UMC chairman to resign amid snafus

SAN JOSE, Calif. — In a stunning and revealing letter to shareholders, Robert Tsao on Thursday (Dec. 29) announced that he plans to resign from his positions as chairman and board member of Taiwanese foundry specialist United Microelectronics Corp. (UMC).

Jackson Hu, UMC’s chief executive, will assume the duties as chairman, according to embattled Tsao in the letter. (See letter to shareholders below)

The move follows a series of snafus at UMC (Hsinchu). In particular, Tsao has been the center of attention in UMC’s recent move to restate its results and a controversial investment in a Chinese foundry provider.

Tsao reportedly said Wednesday (Dec. 29) he is considering delisting the contract chipmaker from the Taiwan Stock Exchange after being penalized for delaying disclosures.

According to an Associated Press report, Tsao stated in open letter to shareholders published in major daily newspapers the Financial Supervisory Commission's decision on Dec. 15 to fine the company $1,500 was "unreasonable."

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