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Taiwan to review rules on investment by Chinese chip firms

Taiwan to review rules on investment by Chinese chip firms

Taipei, Nov. 2 (CNA) Taiwanese investment and financial regulators said Monday they will review the regulations related to investment by Chinese chip companies, amid reports of a merger between Tsinghua Unigroup (??) of China and Taiwanese chip designer MediaTek Inc. (???). In reviewing the regulations, the Ministry of Economic Affairs (MOEA) will strive to meet the needs of individual companies while protecting Taiwan's interests, Economics Minister John Deng (???) told the press on the sidelines of a hearing of the Legislature's Economics Committee. He however did not indicate whether his ministry would give approval for Chinese investment in the domestic integrated circuit (IC) design sector, saying only that the MOEA would consider industry demand as well as the impact of such a move on employment and technological development in Taiwan. Deng also said he "highly disagrees" with Tsinghua Unigroup's recent statement that the Chinese government should take action to force the removal of Taiwan's regulations on Chinese investment in the IC design sector. The Chinese government is wise enough to make the right move and not hurt the relationship between Taiwan and China, he said. Taiwan permits Chinese investment in several semiconductor businesses, but retains a ban on such investments in the IC design sector. Meanwhile, the Financial Supervisory Commission (FSC) is reviewing its regulations on acquisitions and hostile takeovers, and may modify them, if necessary, FSC Chairman Tseng Ming-chung (???) said Monday. The issue was highlighted earlier in day in the Taiwanese media, which cited Tsinghua Unigroup Chairman Zhao Weiguo (???) as saying that two of the group's chip-making subsidiaries, Spreadtrum Communications Inc. and RDA Microelectronics Inc., would be interested in merging with MediaTek, if Taiwan's regulations permitted. Zhao also said the Chinese government should ban the sale of chips manufactured and branded by Taiwanese companies, as part of the effort to achieve further opening of Taiwan's IC design sector to Chinese investment, according to the reports. On Oct. 30, Taiwan's Powertech Technology Inc. (??) said it had agreed to sell a 25 percent stake to Tsinghua Unigroup, pending approval by the Taiwan government. If the deal is approved, it will be first investment by a Chinese company in Taiwan's chip testing and packaging industry. Tsinghua Unigroup, a business arm of China's prominent Tsinghua University, has been working to build its presence in the global semiconductor industry. (By Huang Chao-wen, Chen Chun-hua, Jackson Chang and Jeffrey Wu)


Updated : 2021-09-29 00:38 GMT+08:00