Unimicron Electronics, the ABF substrate maker listed in Taiwan as 3037, was searched on Aug. 28 at its Zhongli Hejiang plant under an investigation led by the Taoyuan District Prosecutors Office, according to Economic Daily News as cited by ABMedia. Two vice presidents and one accountant were taken in, and investigators seized four laptops.
The company said it would fully cooperate with investigators to clarify the case and stressed that its operations were not affected.
Rumors of false accounting and insider trading remain unconfirmed
Market chatter also pointed to suspected false accounting and insider trading inside the company. Prosecutors, however, said the case is still under investigation and declined to say whether it involves breach of trust, asset stripping, insider trading, or money laundering.
According to the market rumors referenced in the report, some senior executives are suspected of using falsified financial records to dress up earnings statements and then trading on non-public information. In addition to the four laptops taken for digital forensics, investigators also seized mobile phones and accounting documents tied to relevant personnel. None of those claims has been confirmed by prosecutors.
Company disclosure mentioned an offense tied to commerce and industry
Unimicron disclosed in a material filing that the case involves an alleged offense described as “obstructing agriculture, industry and commerce.” The Taoyuan prosecutors office did not confirm a specific charge. The report said the offense falls under criminal law and covers conduct such as hoarding goods, forging or imitating trademarks or trade names, and falsely marking a product’s country of origin or quality with intent to mislead others.
Another market claim linked the case not only to accounting and securities trading issues, but also to so-called origin laundering. The allegation says substrates made in mainland China were rerouted through Taiwan and relabeled “Made in Taiwan” for export to avoid U.S. tariffs. That claim has not been confirmed by either prosecutors or the company. Prosecutors said only that the investigation is ongoing and they cannot comment on whether the case involves breach of trust, asset stripping, insider trading, or money laundering.
Stock hit a record high before sliding 5.93%
Unimicron’s shares swung sharply during the day. The stock touched a record TWD 1,230 in early trading, then fell to TWD 1,110 by the close, a drop of 5.93%.
Before the search became public, the company had been lifted by demand tied to AI servers, high-end ABF substrates, and advanced packaging. The report said the stock had risen from a six-month low of TWD 389. With the search news surfacing just after the stock reached a fresh record, the market is watching whether selling pressure had shown up in advance and whether foreign buying may shift direction.
Because Unimicron has been one of the stronger names this year, several active ETFs currently hold the stock, with many placing it among their top 10 positions. Since the search news broke after the Friday close, how fund managers adjust those holdings on Monday has become another point of focus.