The Ministry of Economic Affairs (MOEA) yesterday approved United Microelectronics Corp.’s application to acquire a 51.85% stake in mainland Chinese chipmaker HeJian Technology (Suzhou) Co., Ltd. for US$175 million.
With the approval, UMC’s ownership in the chipmaker will swell to 87.59% as it already holds a 35%-some in it. Upon learning the government permission, UMC Chief Finance Officer C.T. Liu said the company will move toward the goal of wholly owning the company.
Liu said HeJian is the company’s important foothold in mainland China in its global deployment scheme, primarily dealing with manufacturing, import and export of solar cells and 200mm silicon wafers and below, as well as relevant management, consultancy and service.
After acquiring a 35.74% stake last year, UMC in May this year started subscribing for the rest of HeJian shares from its shareholders at US$0.2147 per share.
UMC estimated it would be able to acquire 90% of the remaining 65%. The estimation is roughly in consistency with the outcome that UMC paid US$157 million to take over the 51.85% ownership in HeJian’s holding company, Best Elite International Ltd. of the British Virgin Islands, from HeJian shareholders.
In the fourth quarter of 2011, UMC listed an additional earnings of NT$100 million (US$3.4 million at US$1:NT$29) from HeJian to its balance sheet in accordance with the proportional percentage of its holding in the company.
Industry executives pointed out that controlling HeJian will provide UMC an equal footing in the competition in the mainland with Taiwan Semiconductor Manufacturing Co. (TSMC), which is operating a 200mm silicon wafer factory in Shanghai.
