State-owned Advanced Technology Investment Company (ATIC) of Abu Dhabi, which acquired majority stake in Singapore's Chartered Semiconductor last year, is said to be in discussions with Taiwan's second largest contract IC maker- United Microelectronics Corp. (UMC) for its possible acquisition.

The move is aimed to strengthen and expand its global market shares as reported by the Chinese-language Economic Daily News (EDN) in its recently published report quoting a group of overseas investors.

However, there is no official word by UMC over the media reports but its stock surged to the daily limit of 7% in mid-session yesterday. Its trading volume rose to 140,000,000 shares on the bourses while market value touched $260 billion yesterday.

ATIC had earlier also made a number of attempts to acquire UMC but the deal could not materialize because of some financial and strategic issues. However, ATIC struck a deal for acquiring 62% stake in Chartered Semiconductor for US$1.8 billion earlier the year.

The possible acquisition of Chartered Semiconductor by UMC would give a stiff completion to the rival Taiwan Semiconductor Manufacturing Co. (TSMC), according to industry players.