TAIPEI (AFP) — Taiwan's United Microelectronics Corp., the world's second biggest contract microchip maker, Wednesday named two top executives as part of the company's restructuring efforts.
In a statement, UMC said Stan Hung had been elected chairman, while chief operating officer Shih-Wei Sun had been appointed chief executive officer after a board meeting Wednesday.
The election was held after Jackson Hu resigned as the chairman and CEO.
"The appointment of a youthful, professional management team is aimed at the revitalisation of UMC and the enhancement of its focus on delivering customer-oriented foundry solutions," the firm said.
Analysts said the reshuffle is unlikely to change the chipmaker's strategy of diversifying into non-core investments, when what is needed for it to catch up with its bigger rival, Taiwan Semiconductor Manufacturing Co (TSMC), is investment in chipmaking technology.
"I'm neutral to the appointments...Hung's financial background may help the company more in financing, not in improving its core business any time soon," said an analyst at a foreign securities company who declined to be named.
Hung played an important role in the diversification strategy and operated UMC's investments in the past, he added.
UMC's first-quarter net profit fell 84.8 percent from a year earlier to 206 million Taiwan dollars (6.78 million US), with 71 million Taiwan dollars coming from non-operating income.
In the meantime TSMC's net profit for the period rose 49.4 percent to 28.14 billion Taiwan dollars.
- Dow Jones Newswires contributed to this story -
Copyright © 2009 AFP. All rights reserved. More »
