TAIPEI -- Taiwanese authorities have given approval for microchip giant United Microelectronics Corp. (IW 1000/881) to buy a majority stake in China's He Jian Technology, officials said Thursday.
The Investment Commission said it approved the bid by UMC, the world's second largest contract microchip maker after Taiwan Semiconductor Manufacturing, to acquire a further 51.85 percent stake in He Jian for $157 million.
Last year UMC acquired a 35.74% stake in the Chinese firm, which makes chips for integrated chip design houses.
Ties between Taiwan and China, separated in 1949 at the end of a civil war, have become closer since President Ma Ying-jeou of the Beijing-friendly Kuomintang came to power in Taiwan in 2008.
Ma, who calls for stronger trade and tourism links, was re-elected in January for a second and last four-year term.
Copyright Agence France-Presse, 2012