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Chinese chip producer Hejian Technology to 45 percent, officials said Thursday.
UMC plans to spend $87 million on the deal, which will give it 30 percent of the shares in Hejian on top its existing 15 percent holding, the Taiwanese company said in a statement.
The deal is still waiting for approval from the Taiwanese government, which last year cancelled a planned merger between the two companies, saying the way they intended to finance the transaction was not in accordance with the rules.
UMC bought 15 percent of Hejian in a 2005 deal valued at Tw$3.5 billion ($110 million), which analysts believe was mostly paid in kind via a continuous transfer of valuable technologies.