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Applications for China's Tsinghua Unigroup deals not yet filed: MOEA

Applications for China's Tsinghua Unigroup deals not yet filed: MOEA

The Ministry of Economic Affairs (MOEA) has yet to receive applications for deals proposed by China-based Tsinghua Unigroup to buy stakes in three Taiwanese integrated circuit packaging and testing firms, said Vice Economics Minister Shen Jong-chin Wednesday.

Taiwan has opened its doors to Chinese investment in the integrated circuit packaging and testing sector, but applications must be submitted to the ministry to obtain approval, he said.

On the sidelines of a public hearing on a trade-in-goods pact with China, Shen said that the ministry has not received any applications related to Tsinghua Unigroup's proposed acquisition deals.

The three Taiwanese companies are expected to file an application with the ministry after the companies' boards of directors give the nod to the Chinese investment proposals, he said.

After the applications are received, the ministry will form a task force to take a closer look to determine whether Tsinghua Unigroup will take a controlling stake in each of the three Taiwanese IC packaging and testing firms through the proposed acquisitions, Shen said.

He added that the ministry will also look at whether the proposed acquisitions will pose a negative impact on Taiwan's IC industry, including the outflow of talent and influence on local employment.

Last week, Tsinghua Unigroup, a high-tech conglomerate that is backed by the Chinese authorities, announced that it will acquire 25 percent stakes in Siliconware Precision Industries Co. and ChipMos Technologies. Siliconware and ChipMos are the second- and fourth-largest packaging and testing services providers in Taiwan, respectively.

In late October, Tsinghua Unigroup signed an agreement to acquire a 25 percent stake in Powertech Technology Inc., the third- largest IC packaging and testing firm in Taiwan.

Powertech is expected to call a board meeting in the middle of January, while Siliconware is set to call its board meeting in late January, Shen said, adding that ChipMos has not yet decided on a date for a board meeting. (By Chen Chun-hua and Elaine Hou)

Updated : 2021-09-26 11:55 GMT+08:00