United Microelectronics Chairman to Resign

The chairman of United Microelectronics>(UMC - Cramer's Take - Stockpickr), the world's second-largest contract chip manufacturer, announced plans to resign Thursday amid an insider trading investigation surrounding the company.

In a letter to shareholders, Robert Tsao said he would offer to step down as chairman and board member at the company's board meeting in March, in order to avoid political pressure hurting the company and its shareholders. Tsao said he would not sell any shares in the company until at least two years after his resignation.

Shares of UMC, which is based in Taiwan, trade on the Taiwan Stock Exchange and on the New York Stock Exchange as American depositary receipts. On Dec. 13, the company announced that it was restating certain financial results for the years 2002, 2003 and 2004.

According to the statement, UMC discovered the discrepancies while responding to comments from the Securities and Exchange Commission about its annual report.

The company is under investigation by Taiwan's Financial Supervisory Commission for alleged insider trading.

In his resignation letter, Tsao blasted that commission's "reckless behavior," which he hoped would come to an end with his resignation "before it causes excessive damage to the credibility of the government."

"I am shocked and surprised by the manner in which the facts have been distorted," Tsao wrote.

Tsao's resignation comes a day after he reportedly threatened to delist UMC's shares from the Taiwan Stock Exchange.

NYSE-listed shares of UMC were recently down 0.3% to $3.22.

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