Oak Technology to sell its stake in UMC

Oak Technology to sell its stake in UMC
Tom Foremski
California based Oak Technology is pulling out of a Taiwan fab joint venture and is selling its entire stake to United Microelectronics Corporation (UMC).
Oak held 9.3 per cent of the United Integrated Circuits Corporation (UICC) Taiwan based fab. UMC agreed to buy out Oak for about $51.2m. Oak said it will not make any profit on the transaction.
UMC bought out ESS Technology from the UICC venture last year for $22.5m. UMC is hoping to profit from an upturn in the foundry business with some industry observers predicting that there could be a shortage of foundry services by the end of this year.

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