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Powerchip investment in Chinese chipmaker given green light

Powerchip investment in Chinese chipmaker given green light

Taipei, Sept. 25 (CNA) The Ministry of Economic Affairs on Friday approved conditionally an investment plan in a Chinese chipmaker by local firm Powerchip Technology Corp. (????). The ministry's Investment Commission, after a review of three months, approved Powerchip's application to remit 1.43 billion Chinese yuan (US$224.33 million) to acquire shares of Hefei Hejing Electronic Co.(??????). Hefei Hejing Electronics plans to spend 13.53 billion yuan on a new 12-inch fab, which will produce driver ICs for LCD TV panels.
But the commission set conditions that Powerchip must remit 300 million yuan in the initial stage and the remaining 1.13 billion in 2018. It also stipulated that only after paying back the syndicated loans of NT$15 billion the company obtained locally, will it be able to apply for the remittance. Powerchip must also pledge to increase by NT$5 billion its spending on research and development as well as investment in Taiwan every year, according to the conditions. If not, the commission will not give it the green light for remitting the money. (By Huang Chiao-wen and Lilian Wu)


Updated : 2021-09-16 23:21 GMT+08:00