Taipei, Aug. 28, 2008 (CENS)--The Hsinchu District Prosecutor`s Office placed United Microelectronics Corp. Chairman Stan Hung as a defendant yesterday,right after questioning Hung and several of his colleagues over Hu`s suspected embroilments in an insider trading.

The office raided the world`s No.2 silicon foundry`s Hsinchu headquarters and Taipei office yesterday for evidences proving Hung`s involvement. In addition Hung, his predecessor, Jackson Hu, was also questioned.

The prosecutor`s office said that the probes aimed at the suspicion of Hung`s involvement in an insider trading when he in person bought in ProMOS Technologies stocks during March-September period of 2006 and had nothing to do with UMC and He Jian Technologies, UMC`s partner in mainland China.

The office said Hung began buying in ProMOS stocks in March with figureheads when he was still UMC`s chief financial officer and chairman of an UMC-held venture capital firm, four months earlier than UMC`s move to buy ProMOS stocks.

Prosecutors said Financial Supervisory Commission of the Executive Yuan suspected top UMC executives of conducting insider trading in this deal after reviewing the case and passed it to Taipei branch of the Investigation Bureau under the Ministry of Justice for investigations. The office yesterday began directing the station to probe into the case.

UMC began buying in ProMOS stocks in July 2007 for eight times, increasing its stakes in the DRAM chipmaker to 8.69% from 1.32% within two months. UMC has emphasized that the procurements were conducted from pure investment consideration.

ProMOS Chairman L.M. Chen said his company would fully cooperate with justice department if necessary. Until last night, investigators had not approached his company.

In response to the investigation, Robert Tsao, UMC`s former chairman, criticized the justice department was intentionally getting revenge on his company for its failure to get it pushed in the He Jian case, in which the prosecutors alleged UMC illegally transferred technology and capital to the mainland China chipmaker.

(by Ken Liu)