Report: Powerchip’s Huang in hot water over affiliate’s insider trading

March 21, 2007 – Frank Huang, chairman of Taiwan DRAM firm Powerchip Semiconductor Corp., is under investigation for alleged insider trading in affiliate company Veutron where he is also chairman, according to the Taiwan Economic News.

Veutron offices in the Hsinchu Science Park were raided by Taichung officials of the High Prosecutor’s Office, searching for evidence. The unit claims that Huang sold some 11 million shares of Veutron in early 2002, several days before the maker of DRAM modules and scanners posted a huge loss and shares tumbled, the paper noted. Tan Chung-min, VP and spokesman for both Veutron and Powerchip, also is under investigation. Other local reports note that no other Powerchip group companies are involved.

The case is sending waves through the island’s semiconductor community, according to the paper, which notes that Huang is a “legendary” figure in the field, citing his current service as chairman of the Taiwan Semiconductor Industry Association, and his decision in the 1990s to borrow huge sums of money for 300mm expansions during a global DRAM recession.


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