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Taiwan seen relaxing chip policies toward China

Posted: 28 Oct 2005 ?? ?Print Version ?Bookmark and Share

Keywords:taiwan? china? chip makers? u.s.-taiwan business council? taiwan policies?

Taiwan chip makers will likely gain even greater access to the mainland Chinese market with the expected adoption of new regulations governing cross-Strait trade, according to a business group.

The U.S.-Taiwan Business Council (Arlington, Va.) said Thursday (Oct. 27) that current Taiwan policies on semiconductor investment in China will expire at the end of 2005. It also noted that the Taiwan government has been under pressure to allow top chip makers to gain a greater foothold in the booming Chinese market.

"Pursuing policies that have in effect promoted Chinas chip makers over those in Taiwan, like not allowing the use of at least 0.18-micron process technology, has negatively affected the ability of Taiwan companies to service their customers and maintain their global competitiveness," Council President Rupert Hammond-Chambers said in a statement.

Recent developments are seen as boosting Taiwan manufacturers' prospects in China. They include allowing the use of advanced process technologies, approval of fab projects in China and investment packaging and test operations

"Taiwans cross-Strait investment regulations have failed to keep pace with technology developments in China," added Hammond-Chambers. "Access to China and the ability to compete there will secure Taiwans continued global leadership in semiconductors.

Separately, Hong Kong Chief Executive Donald Tang met here Wednesday (Oct. 26) with U.S. lawmakers and business executives to discuss, among other things, preparations for the World Trade Organization's 6th Ministerial Conference in December.

- George Leopold

EE Times

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