One of the world's largest manufacturers of microchips will take a $424 million loss for its 2004 fiscal year after restating its results to conform with GAAP.

United Microelectronics Corp., the world's second-largest supplier of made-to-order chips, said that the loss was three times more than it originally estimated and pointed to calculation errors relating to non-cash expenses and employee stock bonuses as part of the cause. The company also revised its earnings for 2002 and 2003, though it said that none of the changes would affect the results posted using Taiwan's GAAP during those years.

Questions from the Securities and Exchange Commission had led the company to reexamine its annual report for 2004.

United said that the decision to restate its financial statements was made by the audit committee of the company's board of directors, following a recommendation from management and with the agreement of Ernst & Young, the company's independent auditors.

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