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Taiwan to loosen China chip investment restrictions

Posted: 17 Nov 2006 ?? ?Print Version ?Bookmark and Share

Keywords:U.S.-Taiwan Business Council? Taiwan restrictions? Dylan McGrath?

Taiwan is reportedly finalizing by a plan to relax restrictions on Taiwanese company investment in China, enabling firms to use 0.18?m chip manufacturing technology in China.

Currently, Taiwanese firms are restricted from investing in sub-0.25?m capacity in China. According to a statement issued Nov. 14 by a Taiwan business advocacy group, the Investment Commission of Taiwan's Ministry of Economic Affairs will finalize a plan by the end of the year that would allow its chipmakers to use 0.18?m in China. Taiwan is planning to approve applications by Powerchip Semiconductor and ProMOS Technologies to move 8-inch wafer fabs to the Chinese mainland, according to the group.

"Taiwan's willingness to relax its China investment regulations continues an incremental approach to liberalization of Taiwan's cross-strait technology relationship with China," said Rupert Hammond-Chambers, president of the U.S.-Taiwan Business Council.

Taiwan announced in April that it would allow packaging and testing companies to invest in China. However, according to the U.S.-Taiwan Business Council, Taiwan has yes to grant any licenses for such investment and "questions remain today over the process."

In addition to applauding loosening of Taiwanese investment restrictions in China, the U.S.-Taiwan Business Council encouraged Taiwan to explore further "cross-strait technology liberalization" and recommended that 0.18?m policy changes be finalized as soon as possible.

- Dylan McGrath
EE Times

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