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Powerchip, ProMOS cleared for PRC move

Powerchip, ProMOS cleared for PRC move

Powerchip Semiconductor Corp., ProMOS Technologies Inc., and Advanced Semiconductor Engineering Inc. received final permission from Taiwan's government to invest a combined US$826 million in China to set up operations closer to their customers.
The Investment Commission in Taipei approved the chip companies' plans on Tuesday, the Ministry of Economic Affairs said on its Web site. Cabinet ministers granted preliminary approvals earlier this month.
Taiwan restricts investments in China on concerns the mainland may grab business and because of disputes over the island's sovereignty. Taiwan Semiconductor Manufacturing Co., the world's biggest supplier of made-to-order chips, had been the only Taiwanese chipmaker to have received permission from its government to produce in China.
The government will allow Powerchip, Taiwan's biggest memory-chip maker, and ProMOS, No. 3, make the semiconductors with spaces between transistors of 0.25 micron or larger in China, the ministry said. Smaller spaces allow manufacturers to improve efficiency by cutting more chips on a wafer.
Powerchip applied to invest US$401 million and ProMOS sought permission to spend US$365 million, while Advanced Semiconductor plans to buy Global Advanced Packaging Technology Ltd. for US$60 million, according to the ministry's statement.
Officials at the commission said the two companies needed to present proof showing that their 12-inch wafer fabs in Taiwan had entered mass production before they could apply for export permits with the Bureau of Foreign Trade to move their 8-inch wafer production facilities to China.
Powerchip and ProMOS are based in Hsinchu, northern Taiwan, while Advanced Semiconductor, the world's biggest chip packager and tester, is in Kaohsiung in the south.


Updated : 2021-06-18 04:24 GMT+08:00