UMC Threatens to Delist from Taiwan Stock Exchange

Online staff -- Electronic News, 12/28/2005

The world’s second largest pure play foundry, United Microelectronics (UMC), has threatened to seek delisting from the Taiwan Stock Exchange in retaliation for a fine levied on the company, according to newswire reports.

In a statement the company published in local newspapers, UMC said it had been unfairly treated.

"Our company has been misunderstood and criticized due to the recent accounting incident," United Microelectronics said in the statement. "The stock exchange and the Financial Supervisory Commission have punished and criticized inappropriately."

Earlier this month UMC said it had restated its 2002, 2003 and 2004 earnings under U.S. accounting rules due to an error in calculating goodwill impairment.  The change increased the company’s 2004 net loss by $287 million, according to a Reuters report.

UMC said that after that announcement the Taiwan Stock Exchange had fined it 50,000 Taiwanese dollars for not making an announcement promptly, according to Reuters.

"Has Taiwan become a nation of chaos?” the company said in its statement. “Should we delist from Taiwan and look for another better place to list?”

The statements remain the same under Taiwanese accounting rules, according to the report.

In addition to larger 2004 loss, the restatements cut profits for 2002 and 2003.